implementing_flexcube.ppt
DESCRIPTION
Flexcube case study for successful implementationTRANSCRIPT
FLEXCUBE Implementation Case StudyApril 15 – 16, 2008
Agenda
Overview of Bank
Reasons Allianz changed their core system
Problems Allianz faced previously
Preliminary Business Requirements
Scope of Implementation
Project Details
Transition Approach
Implementation
Business Model, Business Strategy
Infrastructure Management
Post Production Support
Banking community
Implementation Take-Away
Benefits of FLEXCUBE introduction
Higher ROI, lower TCO
Program Organization Structure
Milestones and Phases
Summary
Overview of Bank
Allianz bank is the tenth largest bank in Bulgaria, by assets, and sixth by number of locations. It has a large coverage nationwide and has attracted some of the largest corporate clients (Allianz Holding – the largest financial institution in Bulgaria) as well as over 150000 retail clients.
Size of bank• Asset Size – over 900 Mil Euro• Number of branches – 126 locations, 95 branches
defined in FlexCube• Number of customers - 170 000 (of which 20 000
corporate & 150000 retail)• Number of accounts 200 000
Overview of Bank Products offered by the bank
• The full range of products for retail, corporate, treasury, private investors, etc.• A set of different channels for offering bank’s services & products in “real
time” – Cards, VISA, MASTER, internet banking – retail & corporate, SMS/e-mail notifications, Mobile phone banking, Scoring, etc.
Reasons for the implementation• Migration from existing platform due to old legacy system being unable to
support the banks rapid expansion (doubled, in asset size, in one year)• Existing platform did not support integration with new channels – internet
banking, on-line card authorization, mobile phone payments, etc.• Need for a more robust platform and availability of resources for its
support and further development.• Need for quicker time for market – fierce competition in a rapidly
expanding financial services market.• The bank’s desire to change the bank’s business and operational model
from de-centralized to centralized. Historical Note
The old bank system was OSBI, local Bulgarian system developed in the early 90s by a Bulgarian vendor. Allianz was the last bank to retire it.
Reasons Allianz changed their core system
The bank desired to modernize their business model and processes to provide efficient, less time and resource consuming, products and services.
The bank needed a standardized IT platform and infrastructure in line with Allianz Germany IT policies, procedures and requirements Old legacy system, unable to integrate in real time with satellite systems, Cards, Internet banking, SMS, Mobile phoneNon-scalable solution, unable to handle the increase in usage Lack of functionality desired, e.g. automatic provisioning, auto loans liquidation, etc Very slow time to market – new products from 3 to 6 months minimum vs. 3 to 8 weeks currently. No available resources for system upgrades (the only bank on that system)
Problems Allianz faced previously
Numerous problems, such as:
Inability to integrate with new electronic channels, scoring systems, etc. Inability to introduce new competitive products to market, such as flexible mortgage, consumer loans, and various depositsInability to process in “Real time” card and internet banking transactionsInability to produce in short time sophisticated reporting and analysis both for internal and external usage
Preliminary Business Requirements
Allianz bank started in early 2006. Looking for:
Easy integration/interfacesDepth and breadth of functionality Quick time to marketInternationally recognized vendor/solution with local presence in BG
Historical NoteStarted Oct. 2006 by introducing Online authorization module (developed by Sirma/i-flex, using FlexCube as a master authorization system)
Scope of Implementation
Lines of business Retail
• Current Accounts
• Savings Accounts
• Term Deposits
• Retail Loans
• Structured Deposits
• Cheques
• National & International payments, SEPA compliance
Corporate• Trade Finance – LC, LG, Bills, Collections
• Corporate Loans
• Treasury – FX, MM
Project Details
Core Solution Stack implemented
Our Role• SI involved – Sirma Business Consulting• Partners involved (from i-flex side) – Sirma Business
ConsultingRelationship between i-flex, SI, partners and bank – back to
back or independent contract • bilateral contracts between Allianz bank and I-Flex, Sirma
and I-Flex, and the bank with SirmaRoles and Responsibilities of different parties
• Sirma – system integrator and implementer• I-Flex – technical support and consultancy
Transition Approach
Implementation approach • Big Bang approach with extensive stress testing and three
full mock conversions. • The bank was already running on one system and splitting
into branches was difficult, splitting of national settlement, central bank reporting, reconciliation and consolidation would have been very difficult and resource hungry.
• The same would have prolonged the time for implementation and contradict the bank’s desire for full conversion and re-organization within 12 months.
Implementation• High level time lines for different phases
• PWT – 5 weeks – done by Sirma• GAP analysis – 6 weeks – done by Sirma• System initial set-up and parameterization – 14 weeks – done by Sirma• HW sizing and procurement (in parallel) – 13 weeks – done by Sirma and
IBM• IT infrastructure and comm. lines upgrade and set-up (in parallel) – 22 weeks
– done by Allianz bank• System’s parameter and products testing – 12 weeks – done by Sirma and
Allianz bank• Additional set-up and parameterization – 2 weeks – done by Sirma & i-flex• Systems Integration testing (incl. parameters and products) – 6 weeks – done
by Sirma, i-flex and Allianz bank• Train the trainers (in parallel) – 4 weeks – done by Sirma• Mock migrations and stress testing – 6 weeks – done by Sirma, i-flex and
Allianz bank• End user training (in parallel) – 7 weeks – done by Allianz bank• Post Go-live support – 8 weeks – done by Sirma & i-flex
Implementation
• For each phase• Deliverables of the phase – Documents and sign offs for each of the
above phases• Resources (from i-flex as well as bank) involved – numbers, types
(technical, functional, PM, testers, SME etc)• i-flex technical – 10 man months• Sirma technical – 60 man months• Sirma functional – 80 man months• Sirma PM – 12 man months• Allianz bank PM – 12 man months• Allianz bank full time project team – 36 man months• Allianz bank part time project team – 90 man months
• Oversight management strategies used• Project sponsors (bank’s CEO and COO) introduced• Project Steering Committee meeting fortnightly • PRINCE II methodology followed
• Any bank specific step• Compliance with Allianz AG, Germany standards• Allianz AG, Germany QA and supervision
ImplementationData Migration
High level steps involved – strategy, data mapping, utility preparation, extraction from legacy to flat file, file to FLEXCUBE, mock runs, testing, etc.
• Data migration strategy developed by Sirma & i-flex, approved by Allianz bank
• Data mapping conducted by Sirma and approved by Allianz bank• Data upload to FlexCube utilities developed by i-flex and Sirma• Extraction from legacy system executed by legacy system vendor,
requirements prepared by Sirma• Data uploads to FlexCube conducted by i-flex and Sirma, verified and
approved by Allianz bank History data – migrated or not?
• No migration of history data Challenges faced – data enrichment, data cleansing etc
• Extensive and constant data cleansing, verification and reconciliation conducted together with Sirma and Allianz bank
• Large proportion of additional client, loan, collateral data was missing in the core system and had to be gathered for upload to FlexCube
Business Model, Business strategy
• Program Organization was set up in the bank with 30 sub-projects defined with project teams and responsible parties.
• Before implementation bank was totally decentralized- each branch was like a subsidiary bank- admin functions, IT, all separate.
• Defined a new business model and branch model, restructuring and centralizing important functions. Restructuring of all functions were going in parallel for 10-11 months.
Infrastructure Management
High level production hardware layout Type of machines used
• IBM P70 series AIX OS, Oracle 10G for database – 6CPU (12 cores) for production,
• IBM blade center for application, Windows Server 2003 OS, Flex Host – 2 blades 2CPU 4GB RAM each, Flex Branch – 3 blades 2CPU, 4GB RAM each
Location of different machines• All HW located in Allianz bank Production data center
Network details• An MPLS layer 3 network for all 126 locations connected to main
data center with bandwidth ranging from 256Kbps to 1Mbps depending on number of users in each location
• MS Active Directory present and MS Exchange throughout the whole bank
Infrastructure Management
Responsibilities for infrastructure
Hardware • Sizing – Sirma and IBM• Procurement – Allianz bank and Stone Computers (an IBM
authorized reseller)• Setup – IBM and Sirma• Maintenance - IBM • Support – IBM and Allianz bank
Third party software is maintained and supported by the respective software vendor in accordance with the Allianz bank internal rules and procedures
i-flex software (all in compliance with Allianz bank internal IT policy, rules and procedures)• Setup – Sirma• Maintenance - Sirma• Support - Sirma
Post Production Support
Type of Support• Local
Tools used • Help desk system is being used for issue tracking and
resolutionStandard support methodology usedSupport infrastructure
• Temporary access to the Production Environment is granted only for applying patches and new functionalities
• Permanent access to Test & Dev. Environments incl. at site and remote
• Access to data – only access to Test & Dev environment data • Data patches – Sirma & i-flex were responsible; with
temporary access being granted on a “need to have” basis
Post Production Support
Methodology used for moving a fix to production – apply to pre-production, test and move
• A fix or new functionality is first applied in Dev. Environment and tested by us
• The fix or functionality is then applied in Test Environment by us and tested by the bank
• After bank’s approval a temporary access to production environment is granted to us for applying the fix/functionality
Banking community
Show cases and visits
• Since “Go-live” there has been two site visits by Banc de Brazil, from Brazil and Bank Republic from Azerbaijan
• Allianz bank and its management are quite happy with hosting such visits
Implementation Take-Away
What did we do right?• Close tracking• Preventing scope creep• Regular visibility to all stake holders• Daily discussion of issues• A wider consultancy on operational issues and processes and ways to
optimize them• A wider support and consultancy for issues outside the project scope but
relevant for the overall implementation – IT infrastructure, network set-up, IT processes and procedures
What could we have done differently?• Did not insist on the creation of full time dedicated bank implementation team
from the start of the project. The subsequent hand-over of responsibility from us to the bank was longer than desired.
• Following from the above, it also took longer for the bank personnel to get accustomed to the new processes and applications
• A weak or non-existent marketing and awareness building of Allianz’s success, throughout the wider banking community locally and within the region
Benefits of FLEXCUBE introduction
SEPA complianceDomestic and International Payments enabled staff
reductions and faster and more reliable services to customers
An on-line and timely reporting enabled all levels of management for easy analysis and fast response to market trends and customer’s needs
A range of new products have been introduced and new customer growth rate increased, from 15% to 35%, on a yearly basis
A range of new services introduced such as on-line card authorization, internet banking, and reporting
Customer scoring system interfaced to FlexCube reduced the average time for decision making from 2.5 days to 6 Hours
Higher Return On Investment, Lower Total Cost of Ownership
The bank’s IT department head count was reduced by 42%The bank’s back office operations department was completely
centralized and head count reduced by over 50%The bank’s front office personnel was relieved from back office
duties and entirely focused on sales and customer servicesCustomer’s information gathered, stored and analyzed has
increased by over 70% for retail customers and over 50% for corporate ones
Director ITSirma PM
Program Organization Structure
Investment Control
Project Streams/Project Teams
IT and OperationsBusiness Strategy Risk Management Other Functions / Governance
Project Management Office Program SponsorProgram Director
COO Project Director
Board of Directors
CEO, ED
Chief System Integrator
Sirma Business Consulting
Director Retail Director Corporate
ERP Project
Steering Committee
Steering Committee
• Approving and changing the scope of the Program according to the master plan and budget.• Reviewing the regular Program status reports and proposing solutions regarding tasks implementation
required by the Director. • Tracking task implementation at the regular Steering Committee meeting where the Director presents the
Program progress and the necessary solutions. (incl. proposing solutions)• Making final decision regarding the Program
• Preparing implementation plan (with the Project managers if necessary)• Distributing tasks to the responsible persons• Tracking task implementation during the meetings of the Program• Coordinating different tasks with counterparties, consultants and other external resources• Coordinating obligations and responsibilities with Project Managers• Preparing the Program regular status reports for Steering Committee• Presenting Program status and informing Steering Committee for necessary solutions• Collecting budget status report from line management
Role Responsibilities
Project Managers
• Preparing implementation plan (with Project team if necessary)• Distributing tasks to the responsible persons• Tracking Project task implementation • Presenting Project status report at the regular Program meetings• Responsible for the approval of all Project products• Presenting all requirements for project changes to the Program Office• Reporting all issues which could not be resolved within the Project• Informing Program Director about all delays of the initial plan deadlines
Program Director
Roles and Responsibilities
Roles and Responsibilities
Project Management Office
Project Members
• Information Center for all questions regarding the Program• Archiving and renewing Program master plan• Managing processes for task solution, change requests, approval for Project products• Archiving and renewing central registers and documentation regarding issues, change requests, approvals
of Project products• Preparing and renewing Project participation list• Reviewing project status reports and preparing Program status report• Organizing and taking minutes at Program and Steering Committee meeting • Providing on time accurate information for forthcoming changes for all employees of the Bank, organizing
meetings and preparing newsletters
• Proposing ideas and expert opinions• Working on tasks defined by Project Manager• Preparing the necessary documents and analysis connected with the Project products
Role Responsibilities
Investment Control
• Supporting Program Management with new ideas and proposals for issue solutions and problems• Controlling quality and professional preparation of all Program products• Reviewing the results and products of the Program and proposing approvals
Milestones and PhasesIntroduction of FlexCube
Milestones Deliverable Start End
Planning of deliverables connected with introduction of bank- information platform of TB “Allianz Bulgaria”. Developing detail plans of the project plans for tests, migration, training and adoption.
A plan for PWT ***A plan for key users’ training*
09.10.2006 10.11.2006
(PWT) The bank’s team is introduced to the basic functionalities and the architecture of FlexCube
A protocol for completion approved by the leader of the team
13.11.2006 12.01.2007
Analysis of the existing bank products and defining their place in the functionality of the bank- information platform (product fitment).
A product catalog of the present products in Allianz**A product catalog of the future products in FlexCube*
15.01.2007 02.03.2007
Parameterization and Product set-up of FlexCube A protocol for completed parameterization of the products from the Product catalog
05.03.2007 30.04.2007
Preparing data base for System Integration and User Acceptance tests
A protocol for completed installation of the data base and FlexCube application
01.05.2007 01.06.2007
User Acceptance test - plan, preparation and accomplishment
Making up test scripts***A protocol for correctness of the test scripts results
04.06.2007 03.08.2007
Milestones and Phases Introduction of FlexCube
Preparing the formats for data migration Making up tables for data migration*
16.03.2007 01.06.2007
Data migration from the existing systems in FlexCube.
A protocol for correctness/ faithfulness of the migrated data
01.06.2007 03.08.2007
System Integration test plan, preparation and accomplishment
A plan for System Integration test*A protocol for correctly completed System Integration test
03.08.2007 31.08.2007
Trial conversion and stress testing A protocol for trial conversion 16.07.2007 27.08.2007
Train the trainers A protocol for completed training the important/key users
02.07.2007 31.07.2007
Go-live – big bang A protocol for successful putting into operation for every single branch
06.09.2007 10.09.2007
Support and optimization (tuning). 26.09.2007 30.11.2007
Milestones Deliverable Start End
Milestones and Phases Development of interfaces to the basic bank system
Milestones Deliverable Start End
Analysis of the requirements to the interfaces Interface Requirement Specification Document**
23.10.2006 28.02.2007
Design, functional specification of the design and architecture
Interface Functional Specification Document*
27.11.2006 28.02.2007
Development and introduction A protocol for introducing the interfaces
11.12.2006 29.06.2007
System Integration test plan, preparation and implementation/ fulfillment
A system integration test plan*A protocol for correctly completed system integration test
02.07.2007 05.08.2007
Documentation Technical, System and Architecture interface documentation*
28.02.2007 05.08.2007
Milestones and PhasesExploitation of Centralized report system
Analysis of the requirements to the Centralized report system
Application Requirement Specification Document**
02.12.2006 30.03.2007
Design, functional specification of the design and architecture
Application Functional Specification Document*
05.03.2007 30.03.2007
Development and introduction A protocol for introducing the application/system/product
05.03.2007 01.06.2007
System Integration test plan, preparation and fulfillment/ accomplishment
System integration test plan*A protocol for correctly completed system integration test
02.07.2007 05.08.2007
Documentation Technical, System and Architecture interface documentation of the application/system/product*
28.02.2007 05.08.2007
Support and tuning ---------------- 03.09.2007 30.10.2007
Milestones Deliverable Start End
Notes : * Sirma responsibility** Allianz responsibility*** Joint responsibility of for both sides under the agreement
In Summary
This was the first project of its kind, considering its scope and functionality covered. The implementation was almost entirely led and done by SBC, an I-Flex partner, and successfully completed within twelve months.
Contacts
Velko Todorov
E-mail: [email protected]
Tsvetomir Doskov
E-mail: [email protected]
Web: www.sirmabc.com