Managing IT in HSBC

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Managing IT in HSBC
Raymond Cheng, CTSO HK
Date March 2009
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Agenda

• About HSBC IT
• New Operating Environment
• Management Framework
• Our Focus
• QA

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About HSBC IT

• Global
• Operate in over 50 major countries, 5 regions
• 2008 budget is USD 6.5billions
• Over 25,000 staff
• Over 10 major data centres
• 5 offshore development centres
• 20/30/50 operating model
• IT budget is around 15 of total Operating Cost
  and 7.8 of revenue

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HSBC IT - Local
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HSBC IT - Local

• Asia regional headquarter Hong Kong
• 2008 budget is USD 1billion
• About 2,800 staff in Hong Kong
• About 2,200 staff in GuangZhou
• Regional data centre in Hong Kong, supporting 23
  countries
• 40 of software development is global

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HSBC IT - Local
Process 22mil activities daily
Over 20,000 PCs
Over 1,300 ATMs
Peak 660 activities per second
Over 300Tb storage in data center
Over 2,000 servers
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New Operating Environment

• Global, multi-locations, multi-culture,
  multi-language gt travel, overnight calls and
  international communications
• Matrix organizations gt who is my boss? Where
  are my team members? gt collaboration
• Focus on high value job functions gt how much do
  I worth?
• Different (even new) lifestyle and workstyle

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Banking Industry?
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New Life Style - secondlife.com
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Bank vs Search Engine Company
Search Engine Company
Search Engine Company?
Bank
Bank?
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Bank An Marketing and IT Company
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Bank Diversified Business Opportunites
Insurance
Consumer Finance
Environment
Micro Finance
Search Engine
BANK
Lifestyle/ Gaming
Rural Bank
Charity
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New Technology Trend
Less Choices
Complex
Integration
Infrastructure
Best Practices
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Business vs IT
IT
Business
Business
IT
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Understand the Business

• Customer Focused
• Sales and Marketing
• Metrics / Information
• Deliver Business Value

• Operations Focused
• Procedure Automation
• Speed and Accuracy
• Project Delivery

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Management Framework
Strategy
Quality Execution People
Architecture
Training
Organization
Process
People
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Strategy

• Align with business strategy
• A 5-year strategic plan
• Shape the future organization, eg
• Steering committee
• Common system methodology
• Organization structure matrix organization
• Business interface team
• Portfolio management

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Architecture a practical view

• Enterprise architecture blueprint
• Brand R2
• Common basic tools EAI, J2EE, UXA, etc
• Roadmap and measurement
• Governance

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Organization

• Matrix driving value via other teams
• Flat vs hierarchical
• Specialist vs management
• Loosely coupled systems with tightly coupled
  organization
• Software House (internal)?

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People

• Reward multi-cultural, multi-discipline and
  multi-technical skill and experiences
• Respect and leverage diversities
• Commercial orientation
• Consulting
• Invest in people
• Develop talent

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Process

• Shared Service Organization (SSO)?
• Service quality focused
• Offshore process
• Benchmarking, internal and external
• Metrics and dashboards
• Risk based project management

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Training

• Leadership capability development
• Relationship management
• Communications via all channels
• Attain value from our products
• Virtual classrooms

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Our Focus

• One HSBC programme
• Merge IT and Operations Organization gt
  Technology and Services Organization
• Strategic cost management 'positive jaw'
• Leverage on our experience, knowhow and
  foundation (tele-communications hub) to develop
  the business in the region
• Position ourselves on higher-value jobs

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Our Focus

• Improve productivity of lower cost locations
• Focus on driving volume (STP)?
• Innovation and creativity new products, new
  services, new propositions

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In summary

• My top 3 priorities have always been
• Quality
• Execution
• People

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Thank You!
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Next Gen Innovation and Creativity

• Determine the future of the organization
• Lots of blockages legacy, silo organization,
  complacent, culture, management style,
  incentives,
• Allocate time and resources into it
• Got to be relentless. Failure is a sign of
  future success

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My Personal Goals

• Apply Information Technology to operate our
  business and gain competitive advantage so that
  we become the leading financial institution both
  locally and globally.
• Grow IT talent in HK and Asia region so that it
  continues to be one of the major region for HSBC
  IT globally.
• Promote the IT industry in the Greater China
  region.