Finacle - Enterprise Business Technology Transformation
Post on 29-Oct-2014
Embed Size (px)
DESCRIPTIONInfosys Finacle thought paper on Banking Business Transformation Framework & Technology Capabilities & Capacity.
<ul><li> 1. Transformation: The bridge to anenterprises futureThought Paperwww.infosys.com/finacleUniversal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing</li></ul><p> 2. Transformation: The bridge to an enterprises future Definitions of business transformation can As previously stated, business transformation differ from company to company; however, is a term used to refer to strategic, enterprise- transformation generally refers to strategic,wide change programs that have a profound enterprise-wide change programs that have aimpact on the organizations end-to-end significant impact on an organization/company. capabilities, technology, environment, processes Transformation programs tend to focus on:and performance. If correctly planned and addressing market change; reducing cost dueimplemented, business transformation has to new economies of scale at a domestic or significant impact across the entire organization international level; achieving growth by seizing with implications and benefits that deliver (speed to market) each and every opportunity results to the bottom line. The most common offered by the existing and changing markets.drivers for business transformation initiatives are: Whether the intention is to expand capabilities, Corporate transactions - mergers, acquisitions boost efficiency or to improve profitability, and/or divestitures; Global and/or domestic business transformation has become a way of competition - changing market conditions; corporate life. There is no doubt the forces of Changes in the global business environment; globalization will continue to drive high levels of business transformational activity for the next Strategic people, process and/or technology several years.efficiency changes - changing business model, outsourcing/ off shoring, cost reduction, There are two major forms of transformation: consolidation, etc.; Fundamental change that generates a strong Emerging trends and new technologies digital,impact on business results, such as mergers pervasive computing, new commerce;and acquisitions, outsourcing, or strategicinitiatives. These programs usually involve Support for new and emerging markets;external players and generate major Enterprise-wide technology changes;transformation across significant portions ofthe organization Enterprise-wide restructuring/reorganizations; Transformation Programs that generate Value-chain improvement initiatives (supply incremental improvement, such as cross- chain programs); and functional performance improvement or technology re-platform but require new orRegulatory changes and/orgovernment updated skills, technology and/or organizational policy change. approached to implement and sustain.Continual change is driven by the above In summary, transformation as defined in mentioned factors, and serves as a constant the organizational context is a profound and reminder that there is no such thing as a radical change that drives new direction in an static business environment. There is continual organization and takes it to an entirely different and significant pressure exerted on and from level of effectiveness (from all aspects cost, boardrooms, forcing executives to rethink, processes, revenue, etc.). Transformation impliesreinvent and change the operating model and / a makeover that when complete will have little or structure of the business. In todays business or no resemblance with the past configurationclimate, change and transformation are almost or structure (technology, people and process). as common as business as usual.02 Thought Paper 3. Any change is difficult, and it is well understood Business Case and value realization isthat business transformation programs areunderstood and supported;inherently complex. The fear of change can Robust Governance Model with clearlyhave a paralyzing effect across the enterprise identified stakeholders and a directfrom executives delaying critical decisions to relationship between the transformationmistrust and denial from those affected by and the impact to each stakeholdersthe transformation. organization. The Governance Model fullyThough business transformation has becomealigns accountability, responsibility andthe norm for how companies run their authority, ensuring the benefits of successrespective business, executing change is not a or consequences of failure of the endeavornatural capability for the individuals who are bear an impact to the stakeholdertasked with driving the programs that are part or executive;of a transformation initiative. Workable Approach and Execution ModelIn any business transformation there must be key that has seasoned team with similartenets embedded in the organization to makeexperience so that the methodology,the successful transformation journey which are: processes, discipline,expertise, and governance defined in the execution modelAccepting business transformation andwill be easily understood. The has clear andchange as a central and common way of distinct roles relative to business delivery,working for an enterprise;transformation management, governance Realizing that there is a direct causalityand technology solution delivery; between business value generated and Technology Capabilities and Capacity to improvement in business process;perform all the technology solution delivery tasks required by the transformation, Setting objectives is not enough there must including but not limited to skills, tools, be a clear vision and a target operating model processes, and management capability; underpinning it, that has enterprise-wide buy-in and the full supported of the executives; Enterprise Business Capabilities and Capacity to design, support, implement Strong executive commitment and involvement and operate the transformation elements throughout the transformation; and their related business aspects for Continuous business transformation readinessthe transformation assessment to evaluate and measure theThe remainder of this paper focuses on the enterprises readiness to undergo change.transformation readiness and delivery model Critical readiness areas to assess are:for the transformation program. The emphasis Vision (target end-state operating model) is on the program structure, execution modelis clearly defined and related to the changeand methodology are required to successfullythat is to be achieved; drive a transformation program.The bridge to an enterprises future: The JourneyOverview The Journey regulatory) factors that spark the requirementto embark on the transformation journey.The journey starts with a vision of an enterprise-wide change program, driven by internal Refining the vision and the commencement(e.g. cross functional changes, or a merger) or of constructing the business case is where theexternal (e.g. changing market conditions, or journey begins to take shape, and also become Thought Paper 03 4. complex. Yes, visions and ideas do create Business case euphoria and excitement! That said; navigating Unfortunately, many business transformation to the end-state (implementation/outcome) of programs either dont make it out of the starting the transformation is complex and full of gate or are grossly underfunded... Success, challenges. Bringing order and shape to a therefore, depends heavily on getting the transformation program, requires a framework. numbers are right which in turn demands that The framework must embrace the key building the business case be constructed to connect block of the transformation: vision; business the dots from vision to target operating model case; governance model; workable approach to meaningful business measurements. and execution model; technology capabilities and capacity; along with both the businessThe end goal for a business case is not simply capability and capacity. The framework is getting Executive or Board approval. While that essential. Organizations shouldnt fall into theis the essential first step, the business case also trap of just conforming to the frameworkestablishes the case for change and influences (i.e. assume the framework is the answer), in the odds of a successful transformation. contrast the framework should be embraced This broader view of the business case embraces and in turn influence, guide as well as direct robust processes for developing, managing them down the transformation journey. and continuously measuring the business case adapting as appropriate - throughout the TRANSFORMATION GOVERNANCEMODEL initiative. The following are some key tenets for BUSINESS CASE constructing a business case:VISIONWORKABLE APPROACH AND Understand the Current StateEXECUTION MODEL Understanding the key drivers in thecurrent business environment that influence BUSINESS CAPABILITY AND CAPACITYperformance is foundational to the businessTECHNICAL CAPABILITY AND CAPACITYcase. By focusing on known metrics,improvements and. and performance indicators Exhibit Framework for execution of Businessare mapped to processes and organizational Transformation Program effectiveness correlating the transformationactivities to tangible, measurable, realworld results. Vision Get the basics right - set the foundation, The vision is driven by the executive and seniorimplement and measure management team, supported by various levels and key stakeholders across the organization. A business case for transformation must The vision should tightly align with theinclude measureable benefits, costs and a corporate vision; in some cases transformationclear line of accountability and ownership will rewrite the corporate vision while being of both the benefits and costs. A business synergistic with corporate values.case must have data and accurate numbers backed by a compelling story that can The initial level of the vision should cascade be understood and agreed to by the into increasing detail, directly mapping the key business executives. process metrics between the vision and the subsequent levels. The most detailed level To ensure the business case delivers, it should clearly align with the key businessis essential to build the metrics (both processes that will drive measurable improvement. qualitative and quantitative) into the Each of those processes should be mapped to transformation delivery plan. The business the business cases linking business value toexecutives can then actively monitor business meaningful, well-defined metrics. benefits throughout the transformation04 Thought Paper 5. program. As the program evolves change isexecution. At the nucleus of the executioninevitable. Changes to scope, plan or time model is the methodology which at its bestmust be continuously factored into the seamlessly integrates the business changebusiness case, with decision matrices that with the technical delivery. The hallmarks ofreflect the impact on the key drivers and metrics. an effective methodology are being modular and customizable to the type of transformation. Defining the Future State Modularity supports the decomposition of Odd as it sounds, the future comes first. Setthe desired outcome into more logical andgoals that foster change through innovationmanageable threadswhile recognizingand paradigm shifts while aligning to theand managing the interconnections. Thevision. Define good as it relates to the threads represent the major focus areas ofbusiness. What are the key process and the transformation.metrics? How does the process and metricssupport the business case? Do the processesKey areas of the methodology are: processalign with the strategy and drive organizational optimization; application analysis and optimization;effectiveness (operating model)? Are the change (adoption and accountability); globalenablers aligned to the processes, and in turn delivery framework (align and orchestratealigned to the metrics? What is the impact capabilities); infrastructure and operationson technology requirements and organization? analysis and design; partner delivery and decisionWhat roles, technology and processes are framework; delivery management (managemost impacted?Does the delivery andand deliver transformation); and value modelimplementation align with delivering the (linking business benefits to delivery (outcomes).benefits in a prioritized fashion? The methodology drives and maintains the integrated view of business and delivery that Leverage your people results in real value. Involving business people early on ensuresthe roll-out is about delivering businessWorkable Approach and Execution Model isbenefits, rather than doing things to thebest implemented by an experienced teambusiness. Stakeholder support - business bringing different perspectives but a commonand technology - at each step of creatingunderstanding of the roles and responsibilitiesthe business case will both shape and fullyassociated with the methodology, processes,reflect the perception of current performancedisciplines, expertise, and governance areof the business, as well as the business required for success in high impact, high riskpriorities and expectations. initiatives. The model should have clear and distinct roles relative to: business delivery,As you progress with your business case, engage transformation management, governance as wellvarious levels of the enterprise in designing as technology solution delivery. The Executionthe future operating model enabling them to Model provides a single, consistent approach forclearly understand the changes at an individual managing multi-program/project, multi-vendorrole level. The transformation leader cannot (consultant and software), and multi-organizationmandate behavioral changes within the business, transformational program.so having some key people at various levelswithin the business builds the support and To execute any transformation, there areextended leadership to successfully drive thealways dire needs for high end architects (e.g.changes required by the transformation.data, infrastructure, and integration), testing management requirements management andWorkable approach and executionbusiness change across the delivery of themodelbusiness outcome. These aforementioned whenAt the heart of every transformation are a grouped together form the Solution Delivery.workable approach (i.e. minimal overhead,The business delivery (outcome) is across thedefined ways of working), and a delivery focused Solution Delivery.Thought Paper 05 6. The end to end and integration managementwith the business outcomes, thereby maintaining integrates the individual business outcomesa focus on the desired business results as and solution delivery across the transformation. opposed to the day-to-day program tasks. One To summarize the Execution Model integrateskey aspect of the model is to create a controlled the solution, delivery and integration across thebaseline from which to measure success and transformation, while providing both horizontalmake changes in response to emerging business...</p>
View more >
IT Transformation - Make IT the Engine of Innovation for Enterprise Transformation - Conrad Langhammer - Software AG