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‘Technology Banking : Does it Deliver Value?’ Umesh Jain President & CIO Yes Bank, India ‘Technology Banking : Does it Deliver Value?’ Umesh Jain President.

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Presentation on theme: "‘Technology Banking : Does it Deliver Value?’ Umesh Jain President & CIO Yes Bank, India ‘Technology Banking : Does it Deliver Value?’ Umesh Jain President."— Presentation transcript:

1 ‘Technology Banking : Does it Deliver Value?’ Umesh Jain President & CIO Yes Bank, India ‘Technology Banking : Does it Deliver Value?’ Umesh Jain President & CIO Yes Bank, India

2 Different views Business View I pay so much but get nothing in return Technology has ‘NO’ or ‘limited’ understanding of business Obsession with ‘Technology’ Technology speaks Greek It is always about costs and time But programmers should use the common sense… don’t they have any ? Technology is easy on spending ‘hard earned money’ Tech View Technology is not included in decision making Everything is ‘top priority’ Second class citizens when it comes to RnR There is very little or no investment in technology management tools Very little appreciation for what goes behind the scenes in keeping the BAU running

3 More than Value of IT Value question originates out of inherent conflict Need to attack root and not symptoms Both business and IT need to collaborate and CHANGE Some perceptions and some realities IT delivers value but there is scope for Improvement Businesses believe they are getting LESS for the money they spend, though not fully true

4 General Context –Run the Bank (REDUCE) Service/Projects– Improve Service Levels, Uptime, Availability, TATs, standardize, offshore, outsource Financials – Decrease costs –Grow the Bank (MAINTAIN) Service/Projects – Improve Service levels, Incremental functionalities – products/services, Increased volumes/geographies Financials – Grow yet maintain the costs or bring down unit costs –Transform the Bank Catch up with industry innovations And/Or Establish blue oceans using disruptive innovations Financials – Based on returns and risks

5 Root Causes Business Technology Alignment Understanding, Appreciation and Respect for each others functions Management Viewpoint and Expectations Soft Skills of IT Communication of Financials Easy to FIX using Processes

6 Business Technology Alignment Strategic Alignment –Seat for IT on Management and Strategy teams –Apex IT Council for reviewing IT strategy and providing strategic guidance –Relationship Managers for each business area, with dotted reporting to Business Head as also a seat on his management team

7 Business Technology Alignment Tactical Alignment –Customer – Supplier Methodologies/principles –Service Catalogues –Periodic Planning, Prioritization and expectation setting(3-6 months) –Formal operating reviews (monthly) –Status reports using agreed metrices –Customer Satisfaction Surveys

8 Education and Appreciation Educating IT about Business –Business Conferences, Seminars, Trainings –Part of Business management team/Strategy team –Having some domain specialists in IT team Educating Business about IT –Processes and their benefits Business Justification & Approvals Problem / Incident / Project Financial allocations / chargebacks –Technology trends (applied to their businesses) How business can leverage IT better –Management Principles

9 Management Viewpoint IT as a differentiator or IT as necessity IT as an investment, measured like Portfolios or IT as cost centre IT as driver or IT as partner or IT as support Different Organization structures and IT management and governance Principles apply Competency Frameworks are useful in communicating at that level Often useful to engage external consultants

10 Competency Framework at Yes Bank Competency (Sub Processes) RACI Job Description Org Structure

11 Training and Development Soft Skills Leadership Influencing Communications – Verbal and Written Marketing and Sales Conflict Management Business Domains Accounting and Cost Accounting

12 Financial Communication –Training on cost accounting and accounting How the CFO counts his beans! Using the right yardsticks / Making the sales pitch –Budgeting as per organizational strategy and weightages to RTB/GTB/TTB –Measurements in terms of Unit costs for RTB/GTB operations and targets more in terms of unit cost reductions – IT should drive this –Measurement in terms of ROI for TTB and businesses held equally accountable. To be jointly delivered by IT and Business

13 Recommendations Improve Business Alignment at both Strategic and Tactical levels Establish customer supplier relationship with formal paperwork and measure performance around that Have clearly articulated financial chargeback mechanisms – reasonably accurate and yet not very complex to implement. Run IT like a business Improve soft skills of IT staff – no more binary world! Establish governance forums to both bounce off/review your strategy as also ‘communicate’ your achievements IT will deliver EVEN MORE value, and customer will also appreciate it MUCH MORE.

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