IT as an Engine of Global Expansion for African

Organisations

Digital Jewels: Information Value Chain Breakfast Forum

8 July, 2009

Tunde Coker, Group CIO, Access Bank PLC

13/07/20092

Our Philosophy

To go beyond the ordinary,

to deliver the perceived impossible,

in the Quest for Excellence

To transform our bank

into a world-class financial

services provider.

The Quest For Excellence

M I SS I O NV I S I O N

BRAND DRIVER

2

13/07/20093

Our Values

3

Contents

Introduction ……. about Access Bank

IT and business alignment

Critical success factors

Creating the right global model

Challenges

13/07/20094

Access Bank - Our Evolution…

The Beginning

1989-2001

• Established Feb. 1989

Commenced operations May

1989

• As at 03/2001, shareholders

fund was N919mm with

25branches across the

country.

• Opportunity created for

injection of capital by new

investors

2002-2004

Transform &

Reposition

• Appointment of new

management

• Embarked on

transformation agenda

that moved the Bank from

65th to 15th position

• Return to profitability

(N1.01bn PBT) from

N17.9mm loss

Recapitalise and

Acquire

2004-2005

• IPO in October 2004 raising

N13.5bn with 133%

oversubscription

• Acquired Capital Bank

International and Marina

International Bank via merger by

absorption

• Achieved integration in a record

time of 60 days

• Received USD$15m equity

investment from FMO, 3rd largest

shareholder

• Met CBN N25bn recapitalisation

requirement

2006-2007

Consolidate and

Grow

2007-2012

Expansion

Phase

• Retail strategy assisted by ING

Bank

• Most Improved Bank in Nig. Award

from Thisday Newspapers in Feb.

2006

• Commenced Pan African

expansion in Gambia and S/Leone

• Selected to manage foreign reserve

in partnership with ABN AMRO by

CBN

• Ranked 8th Bank in Nig. by balance

sheet size

• Received $30 m convertible loan

from various foreign Fin. Inst.- IFC,

BIO, FIN fund 5 Y

ea

r S

tra

teg

ic O

bje

cti

ve

s

Defining Factors for Success

GovernanceRisk

Management

Skills and

competenciesCapital

Our Awards

Best Annual Report

Award 2006

(Fortune Magazine Award)

Best Telecom

Financing Bank of the

Year Award (Nigeria Telecoms Award)

Innovative Trade

Structures Award Int’l Finance Corp (IFC)

Most Innovative Bank Award

2007(African Banker Magazine)

Customer Service Excellence Award (KPMG Nigerian Banking Industry Customer

Satisfaction Survey Award)

Most Effective Website | Most Captivating Site in Customer Experience | Most Attractive

Site (Aesthetics) (Philips Consulting 2007 Web Jurist Competition)

United Kingdom

OECD

GDP

$39,680bn

• Controlled expansion in Africa driven by

► Existing customers expansion outside Nigeria

► Increasing regional trade finance

► Underbanked markets with attractive opportunities

► Synergies and cost efficiencies– leverage off existing

business in Nigeria

► Risk diversification and enhanced risk profile

• Choice of countries driven by:

► Size and profitability of market

► Macro-economic fundamentals

► Availability of human capital

Evolving international strategy

The importance of aligning IT to business goals

Creating a country view when the organisation is going global constrains the organisation

Critical factors for success

Ensure IT strategy reflects international goals and scale of ambition

Create a scalable enterprise architecture as an engine for growth

Create the right organisation that reflects the business

Build an effective global infrastructure with practical innovation

Create a strategy for common infrastructure with flexibility and governance for local

idiosyncrasies

Align with global business units and then country units

Creating a single view of the enterprise for clients

13/07/20099

The global perspective

Reg

ion

s

Co

un

trie

s

Growth Strategy

Globe

Continents

Creating the global growth strategy

Global Infrastructure Components

Data Centre Infrastructure

Global Connectivity

Global Mail

Unified Communications

Global / Local Customer Markets and Relationships

Global Application Frameworks

Customer Relationship Management

Enterprise Data Warehouse & Master Data

Collaboration and Knowledge Management

Global Applications

Peo

ple

an

d P

rocesses

Bu

sin

ess S

trate

gy &

En

terp

rise A

rch

itectu

re

Country

Focus

Country

Focus

Country

focus

Role of IT ……

13/07/200912

Role in Business Strategy

Role: Custodian Role: Agent

Role: Provider Role: Partner

Support

Factory Strategic

Turnaround

• Operational / back room

• Low expectations

• Key to business change

• Project delivery essential

• Integrated with business

• Essential, high impact

• Zero defect IT

• Essential to business day to

day operations

Opera

tio

nal Im

pact

Source: Gartner

Various models exist for structuring IT as engine for growth

Infr.

Services

Apps

CIO

Infr.

Services

Apps

CIO

Infr.

Services

Apps

CIO

Gro

up

/ G

lob

al

CIO

MD MD MD

Gro

up

MD

1. De-Central

Services

Apps

CIO

Services

Apps

CIO

Services

Apps

CIO

Gro

up

/ G

lob

al

CIO

MD MD MD

Gro

up

MD

Infrastructure

2. Part De-Central

CIO CIO CIO

Gro

up

/ G

lob

al

CIO

MD MD MDG

rou

p M

D

Infrastructure

Services

Applications

3. Shared Services / Capability

Corporate Examples

1. Virgin Group

2. BP

3. Access Bank

Challenges to creating the strong engine for expansion

Setting the right global context

Creating the global enterprise architecture

Moving from local to region to continent to global

People, processes and infrastructure

Culture: keeping your core culture, accommodating local cultures

Risk management and regulatory differences

Growing your people from local country perspective to global

Grappling with the various organisation and technology models

Managing the need and cost or travelling

Conclusion

IT can be an engine for global expansion

It can also be a constraint to global expansion

IT strategy must be aligned to the enterprise global strategy

Pace of growth and change must be aligned to business appetite and markets

Appropriate delivery models should be adopted

IT must innovate to overcome infrastructure constraints in Africa and elsewhere

The CIO plays a central role in the success and effectiveness of IT

as an engine for global growth

Thank You