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V Chandrasekhar IT Advisor Issues and Challenges in IT Enabled Business Transformation Programs.

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Presentation on theme: "V Chandrasekhar IT Advisor Issues and Challenges in IT Enabled Business Transformation Programs."— Presentation transcript:

1 V Chandrasekhar IT Advisor Issues and Challenges in IT Enabled Business Transformation Programs

2 V Chandrasekhar, IT Advisor Origins of Business Transformation

3 V Chandrasekhar, IT Advisor Pre 2000- Technology in Banking Business High Margins No Competition Vanilla Products Low Technology Levels Very low levels of computer literacy Low Levels of Computerisation Resistance to Change Replication of Manual Process Regulator Driven Computerisation only for Accounting Automation All other Sectors took to IT in a big way while Banking remained untouched by sweeping changes in Business Environment

4 V Chandrasekhar, IT Advisor Pre-2000 Technology Scenario YearSystem Pre 1980sAscota URE M/c 1980sALPM Late 1980s / Early 1990s Unix Systems / Mainframes for back office / MIS 1990sTBM 1995Swadhan ATMs Late 1990sMICR

5 V Chandrasekhar, IT Advisor Evolution of Automation and Its Business Impact Pre-1960s Manual Brs, Sellers Mkt 1960s Manual, URE, Electromechanical LPM 1970-80 Manual, LPM, ALPM 1990 Manual, ALPM, TBM 2000 Manual, ALPM, CBS Power Shift from Sellers to Buyers 2002- 2004 End of EDP Era, CBS, TBM, Manual Self Service Channels RTGS and Payment Systems Post 2005 Foundations for Global Banking EDP Accounting / Back Office Focus Disabling Env Branch Automation Networking, ATM Fee Income, Marketing Enabling Env IT as Business Enabler Disruptive Changes Consolidation

6 V Chandrasekhar, IT Advisor 7 Layers of Technology Evolution in PSBs 1. Technology Hostile 2. Technology Averse 3. Technology Tolerant 4. Technology Friendly 5. Technology Enabled 6. Technology Savvy 7. Technology Driven We are here

7 V Chandrasekhar, IT Advisor Drivers of Change Deregulation Globalisation Increased competition Demanding customer Convergence Complexity – Banking, Insurance, Broking, Commodities Trading Complexity of Instruments / Products Delivery Complexity - Multichannel Compliance Complexity - Basel – II, SOX, SEC Economic Complexity – WTO, M&A, Ownership Transformation During Disruptive Changes

8 V Chandrasekhar, IT Advisor New Challenges Dwindling Employee / Customer Loyalty Plastic Money Electronic Payments Net Banking New Identity Management Issues Security Issues Credit Boom Emergence of Rural Market Growing SME / Retail Credit Cut Throat Competition Increased Risk appetite of the customer

9 V Chandrasekhar, IT Advisor Business Challenges - Competition Customer Attrition Talent Attrition Business Attrition

10 V Chandrasekhar, IT Advisor IT Challenges – Fragmented IT Complexity Machine Proliferation Loss of Control Architecture Management Talent Management

11 V Chandrasekhar, IT Advisor Challenges- Case of Four Blind Men and the Bank IT – not understanding Business Requirements Business – not understanding IT requirements and specifying their requirements IT terms, Ownership Issues, IT blamed for Business Failures Consultant – not understanding ground realities Customer – As a consequence, he turns blind eye to business and business collapses

12 V Chandrasekhar, IT Advisor Business Failure Lack of Technology Lack of Knowledge to exploit Technology Lack of Enabling Processes / Systems Lack of Strategy Book of Instructions or Book of Impediments

13 V Chandrasekhar, IT Advisor The New Wave

14 V Chandrasekhar, IT Advisor Why it is called Transformation End to End Deployment of IT It affects all aspects of Business Strategy Technology Process People Brand Premises Business Enhancement Business Consolidation Time to Change is short Change was always there, it is only the rate of change that is making us study it as a science

15 V Chandrasekhar, IT Advisor Transformation Drivers Business Strategy & Architecture Technology Strategy & Architecture Behavioral Strategy & Architecture ( HR)

16 V Chandrasekhar, IT Advisor Change & Transformation ChangeTransformation New OrgnLegacy Orgn IncrementalComplete LocalGlobal PointEnterprise wide SpecificCultural Pain not feltExtremely painful Quick ResultsSlow Short PeriodVery Long Period

17 V Chandrasekhar, IT Advisor Business Transformation – Final State - Global Bank Corporate Centre Structure as per Global Best Practices Customer Centric Organisation – LOBs Service Delivery Technology Market / Brand Positioning Global Culture

18 V Chandrasekhar, IT Advisor Agenda for Transformation Strategy – Global / National / Niche Organisation Structure Enterprise Business Architecture Enterprise IT Architecture Transformation Program Performance Measurement What can be measured - gets done

19 V Chandrasekhar, IT Advisor Transformation Pre-requisites Top Management Ownership Sponsor Project Mode Business Driven Communication with key stake holders internal and external – Unions, Associations, Media, Analysts

20 V Chandrasekhar, IT Advisor Business Issues – Take a Global View Separate strategy from Business and IT Focus on Building Agile and Adaptive Enterprise View of an Integrated Connected Enterprise Enabling BPR & Change Mgt Environment

21 V Chandrasekhar, IT Advisor Reasons for Poor IT Absorption – Avoid IT / Business Disconnect IT not participating in Business Strategy formulation Business implementing IT without involving IT IT by itself cannot provide value Only business derives value from IT IT is concerned only about performance of IT systems Business Strategies, Goals, Policies must result in IT projects IT Representation at Board Level

22 V Chandrasekhar, IT Advisor Business Issues – Customer centricity Customer, rather than account, focused business New Lines of Business (Customer Segmentation) Channel Management Customer Relationship Management Re-Brand Marketing Focus

23 V Chandrasekhar, IT Advisor Business Transformation – Technology CBS Internet Banking Lending Automation Cash Management Global Treasury GL Risk Manager ALM HRIS Multi-Channel Delivery Networking Security Infrastructure

24 V Chandrasekhar, IT Advisor Business Transformation – Operations Operational effectiveness and efficiency thru Technology BPR Shared Services E-Strategy - Multi-Channel Delivery Lending Process Automation Performance Measurement Telecommuting / Working

25 V Chandrasekhar, IT Advisor Technology Challenges

26 V Chandrasekhar, IT Advisor IT Issues Customer Data - MCIF Data Migration Historical Data Storage / Retrieval Record Management Universal Teller BCP at Branch / Bank Level STP Integrate HRIS DWH / BI / CRM Basel – II Testing and Acceptance Security Policy Project Management Tools

27 V Chandrasekhar, IT Advisor IT Issues Cost of IT Perishable nature of IT Technology Refresh Need to get ROI Faster Business needs to Leverage IT investments Quickly for Survival

28 V Chandrasekhar, IT Advisor Business Issues - Ownership of IT Projects Business Owners LOB Heads Technology Owners IT Head IT Enabled Business Transformation

29 V Chandrasekhar, IT Advisor IT Governance IT Business Alignment Old, Transition, Final Models Security Policy BCP

30 V Chandrasekhar, IT Advisor Sourcing Models Assets Owned and Managed by Bank Assets owned but FM outsourced Assets and FM both outsourced Onshore / Offshore Donot Outsource Strategy, Architecture, Design, Security

31 V Chandrasekhar, IT Advisor IT Deployment Management Data Center & Rollout Mgt Disaster Recovery Center Business Continuity Plans DRS Governance DRS Drills Transfer & Recovery at DRC Return of Control to DC

32 V Chandrasekhar, IT Advisor IT Management Challenges Security Management Record Management Channel Management Shared Services Management Risk Management Compliance Reporting

33 V Chandrasekhar, IT Advisor HR Challenges

34 V Chandrasekhar, IT Advisor IT impacting HR Universal Teller Extended Hours Banking Sunday / Holiday Banking Mobile Banking Mobile ATM Global Treasury BCP

35 V Chandrasekhar, IT Advisor HR Issues Skill / Talent Identification Competency Mapping Career Planning Succession Planning Performance Measurement Rewarding Performance / Excellence

36 V Chandrasekhar, IT Advisor HR Issues Constant transfers Lack of specialisation Moving to / from Rural to Urban Areas Transfers when LOBs are formed HR policy on transfers

37 V Chandrasekhar, IT Advisor HR Issues - Managing Digital Divide Management / Employee Training Including top management training on use of digital dash boards, DSS Customer Behavior Monitoring thru Multiple delivery channels Product Design Customer Training New Generation Customers can handle complex products They can handle self service channels Older Generation needs simple products and human touch

38 V Chandrasekhar, IT Advisor New Skills

39 V Chandrasekhar, IT Advisor New skills - Business Strategy Best Practices / BPR Risk Management Financial Engineering Performance Management Reporting Treasury HR Marketing Branding

40 V Chandrasekhar, IT Advisor New skills - Technology Strategy IT Architecture Vendor Management SLA Management Security Management

41 V Chandrasekhar, IT Advisor New Skills MCIF CRM HRIS Datawarehousing Business Intelligence

42 V Chandrasekhar, IT Advisor New Designations - CXOs CEO – Chief Executive Officer COO – Chief Operating Officer CFO – Chief Financial Officer CTO – Chief Technology Officer CSO – Chief Security Officer CCO – Chief Compliance Officer CRO – Chief Risk Officer CMO – Chief Marketing Officer

43 V Chandrasekhar, IT Advisor IT brings fundamental changes in the style of doing business. Willingness and Ability of business to adapt to these paradigm changes is critical for any technology driven transformation program

44 V Chandrasekhar, IT Advisor Success of an enterprise depends on building internal skills and competencies on an enabling (IT) agile infrastructure and govern it wisely for business results

45 V Chandrasekhar, IT Advisor In aligning the organization, communicating the strategy is not enough - effective communication is backed up by enabling processes and structures - that essentially translate strategy into day-to-day activities. In short, effective strategy has to be embedded in work.

46 V Chandrasekhar, IT Advisor Delivery is all about Leadership, Communication, Culture and People There must be someone in the organisation to put it out of comfort zone – on a continuous basis

47 V Chandrasekhar, IT Advisor Summary Ensure Sponsorship Identify Change Agents Increase number of believers Create an entrepreneurial environment Encourage innovation Forgive genuine failures Nothing like an overall Feel Good Environment – Positive Strokes

48 V Chandrasekhar IT Advisor THANK YOU

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