L10 pm for global banking projects

© Y.B. Yeung – all rights reserved by the author

IS5540- Project Management andIS5540- Project Management and Quality Assurance Quality Assurance

Project Management for global banking Project Management for global banking projectsprojects

Prof. Y.B. YeungProf. Y.B. Yeung

2/4/13 November 20092/4/13 November 2009

IS5540L11: PM for global banking projects 2© Y.B. Yeung – all rights reserved by the author

Learning objectivesLearning objectives

Review examples of global IT projects of a Review examples of global IT projects of a major international bankmajor international bank

Understand the challenges and experience Understand the challenges and experience gained from these IT project examplesgained from these IT project examples

Understand the critical success factors of Understand the critical success factors of managing global IT projectsmanaging global IT projects


Global banking IT projectsGlobal banking IT projects

DefinitionDefinition IT projects that have users in multiple countries

around the world(user focus) IT projects that are developed in multiple software

centres in multiple countries(development focus)

Many international companies have projects Many international companies have projects that fit both the above categoriesthat fit both the above categories

Requires advanced project management skillsRequires advanced project management skills


Global banking environmentGlobal banking environment

International bank group operating in many International bank group operating in many countriescountries

Customers need to access their bank Customers need to access their bank anywhere they travelanywhere they travel

Common brand and products worldwideCommon brand and products worldwide Support services sourced from different Support services sourced from different

countries(IT, call centres, data entry)countries(IT, call centres, data entry) Need to face different regulators and Need to face different regulators and

governmentgovernment


Study of a major global bankStudy of a major global bank Fact sheetsFact sheets Two global IT projectsTwo global IT projects Experience gainedExperience gained Critical success factors Critical success factors

for managing global IT for managing global IT projectsprojects


Organisation of a global commercial bankOrganisation of a global commercial bank


HSBC HSBC fact sheet (1)fact sheet (1)

One of the largest banking and financial One of the largest banking and financial service organisation in the worldservice organisation in the world

Asset = USD2,421 billion as of end June, 2009Asset = USD2,421 billion as of end June, 2009 Profit = USD3.7b for first half 2009Profit = USD3.7b for first half 2009 Number of offices worldwide = 8500Number of offices worldwide = 8500 Total staff = 295,610Total staff = 295,610 Number of customers = >100m(25m on Number of customers = >100m(25m on

Internet banking)Internet banking)


HSBC HSBC Fact sheet (2)Fact sheet (2)

Established in 1865 in Hong KongEstablished in 1865 in Hong Kong Head office in LondonHead office in London Operations in Europe, Asia Pacific, Americas, Operations in Europe, Asia Pacific, Americas,

Middle East & AfricaMiddle East & Africa


Asia Pacific region operationsAsia Pacific region operations

HSBC Asia PacificHSBC Asia Pacific Head office in Hong KongHead office in Hong Kong Branches in 20 countriesBranches in 20 countries

HK, China, India, Indonesia, Taiwan Philippines, Thailand, Malaysia, Singapore Brunei, Australia, New Zealand, Macau Pakistan, Bangladesh, Sri Lanka, Japan Vietnam, Korea, Kazakhstan


System connectivitySystem connectivity

branches branches

Global Data network

Global Data network

Software coe

Software support

Regional data centresGlobal servicing centres


Example of global IT projectsExample of global IT projects

HUB(universal banking system)HUB(universal banking system) Central core team, regional customisation, used in

multiple countries

Internet bankingInternet banking Multiple development teams, used in multiple

countries

Group project strategyGroup project strategy Develop once, use in as many places as possible


EXAMPLE 2EXAMPLE 2

HUB PROJECTHUB PROJECT


HUB projectHUB project

HHSBC SBC UUniversal niversal BBanking project (anking project (HUBHUB)) Software that supports branch banking in Software that supports branch banking in

various countriesvarious countries Initial design is for small and medium size Initial design is for small and medium size

countries (eg. Thailand)countries (eg. Thailand) Functionally rich (deposits, loans, time Functionally rich (deposits, loans, time

deposits, payments, trade finance, securities, deposits, payments, trade finance, securities, credit cards)credit cards)

Now enhanced to handle large countries (eg. Now enhanced to handle large countries (eg. Canada, India)Canada, India)


Technology used by HUBTechnology used by HUB

IBM mid range computer – iSeries(formerly IBM mid range computer – iSeries(formerly called AS400)called AS400)

Software in-house developedSoftware in-house developed Use RPG (report program generator) languageUse RPG (report program generator) language Front end – intelligent terminal software Front end – intelligent terminal software

developed in-house using Unisys technologydeveloped in-house using Unisys technology Development started in 1984 and took four Development started in 1984 and took four

years to completeyears to complete First global project for the bankFirst global project for the bank


Challenges faced by the project teamChallenges faced by the project team

Technology is new and evolving(S/34 to S/36 Technology is new and evolving(S/34 to S/36 to S/38 to AS400)to S/38 to AS400)

Technology not as robust as mainframeTechnology not as robust as mainframe Needs rich functionality to cater for all aspects Needs rich functionality to cater for all aspects

of branch bankingof branch banking First Group project – develop once and use First Group project – develop once and use

many; implies building one software that cater many; implies building one software that cater for the needs of multiple countries for the needs of multiple countries

Difficult to gather requirementsDifficult to gather requirements


Where is HUB todayWhere is HUB today

Probably one of the best branch banking Probably one of the best branch banking software in the world (in-house or package)software in the world (in-house or package)

Implemented in many countries (all of Asia, Implemented in many countries (all of Asia, Canada, Europe). Large sites (HK, UK, USA) Canada, Europe). Large sites (HK, UK, USA) use selected modules from HUBuse selected modules from HUB

Vancouver development centre is HUB COEVancouver development centre is HUB COE Local support provided by regional teamLocal support provided by regional team A major rewrite project has started to A major rewrite project has started to

modernise HUBmodernise HUB


Experience gainedExperience gained

Set up a Group HUB user coordination Set up a Group HUB user coordination department to control scope and user liaisondepartment to control scope and user liaison Staffed by bankers and not IT staff

Have clearly defined rolesHave clearly defined roles Core software developed in Hong Kong Sites allowed to make local changes Have to retrofit periodically back to core


Experience gained(2)Experience gained(2)

PPCR procedure(program problem change PPCR procedure(program problem change request)request) Change control request vetted by HUB

coordinators before passed to IT for evaluation

Close partnership with IBM to improve the Close partnership with IBM to improve the robustness of AS400(logical partitions, multiple robustness of AS400(logical partitions, multiple processors, speed improvements)processors, speed improvements)

Strong project manager crucial to success of Strong project manager crucial to success of projectproject


EXAMPLE 2EXAMPLE 2

INTERNET BANKING PROJECTINTERNET BANKING PROJECT


Internet banking projectInternet banking project

PIB(personal internet banking) PIB(personal internet banking) BIB(business internal banking)BIB(business internal banking) Software historySoftware history

Base software purchased from IBM(from Integrion project)

basic functionality• Mainframe based engine for message routing to

underlining applications• Server(RS6000) software for message handling,

encryption/decryption


Internet banking project(2)Internet banking project(2)

Components developed in-houseComponents developed in-house All the customer facing screens – each

country/bank group member is different Chinese support Hong Kong will not go live without Securities

Trading Later addition – All corporate banking functions,

including imports and exports


Internet banking connectivityInternet banking connectivity

Internet Internet

FIREWALL FIREWALL

MainframeTDM

SAV CUA TD CARD LOANSEC

WEB SERVERSINTERNETBANKINGSERVERS

APPLICATIONS


Characteristics of projectCharacteristics of project

Core engine controlled by New York teamCore engine controlled by New York team Each country has variations onEach country has variations on

Web page (language, local content) Functionality (products, local interfaces)

Regional team has to develop local functionsRegional team has to develop local functions Parallel development & implementation Parallel development & implementation

requiredrequired Global and regional project management officeGlobal and regional project management office


Hong Kong site – English and ChineseHong Kong site – English and Chinese


Korean site – Korean and EnglishKorean site – Korean and English


India – Unique NRI(non resident service)India – Unique NRI(non resident service)


Internet banking project todayInternet banking project today

Rollout worldwideRollout worldwide Hong Kong has over 1 million registered Hong Kong has over 1 million registered

customers using internet bankingcustomers using internet banking Fast growing and popular channelFast growing and popular channel High customer satisfactionHigh customer satisfaction The Hong Kong system has won many The Hong Kong system has won many

rewards from trade magazinesrewards from trade magazines


Experience gainedExperience gained

Constant feedback required for Customer Constant feedback required for Customer ExperienceExperience

Non IT support structure(eg. Call centre) also Non IT support structure(eg. Call centre) also crucial to successcrucial to success

Difficult to balance Difficult to balance Ease of useEase of use vs. vs. RiskRisk IT security is a constant threat but no security IT security is a constant threat but no security

incidents caused by weak IT defense since incidents caused by weak IT defense since launchlaunch

Regulators/media watch like a hawkRegulators/media watch like a hawk


How to manage global projects effectivelyHow to manage global projects effectively

Stick to project management principlesStick to project management principles Secure support from senior management Secure support from senior management Have clear roles and responsibilitiesHave clear roles and responsibilities Good project planningGood project planning Setup multi-site monitoring proceduresSetup multi-site monitoring procedures Avoid scope creepAvoid scope creep Have common goals for all staff to overcome Have common goals for all staff to overcome

geographical and culture barriersgeographical and culture barriers Communicate, communicate, communicateCommunicate, communicate, communicate


Stick to project management principlesStick to project management principles

The basics do not changeThe basics do not change Variations for global projects are in:Variations for global projects are in:

Cost Geography Multiple teams of IT and users Politics and turf war Complexity of managing change How many balls can you keep in the air?


Support from senior managementSupport from senior management

Essential for:Essential for: Funding – global projects are expensive. IT strategy support – core engine plus regional

customisation; mainframe hardware at regional data centres plus servers(AIX and unix)

User commitment – IT cannot do it alone and users pay for the project at the end


Clear roles and responsibilitiesClear roles and responsibilities

New York team – hsbc.comNew York team – hsbc.com Custody of core software; interface with IBM

Regional teamsRegional teams User department – content; presentation; user

acceptance test User coordinator department – control the rollout

schedule and user liaison with all countries IT department – all technical development, testing

and implementation


Clear roles and responsibilities(2)Clear roles and responsibilities(2)

Business departments have to allocate Business departments have to allocate resourcesresources

Work with graphic design companies on web Work with graphic design companies on web page design and navigationpage design and navigation

Work with IT on how to construct the web Work with IT on how to construct the web pagespages

Prototype test with selected real life customersPrototype test with selected real life customers User acceptance testUser acceptance test


Good project planningGood project planning

Plans have to be prepared at various levelsPlans have to be prepared at various levels Group; region; country

Seek input from all stakeholdersSeek input from all stakeholders Marketing department will also provide input as Marketing department will also provide input as

to market segmentation in rolling out the to market segmentation in rolling out the productproduct

IT department has to input on hardware IT department has to input on hardware procurement, testing time slots, etc.procurement, testing time slots, etc.


Setup multi-site monitoring proceduresSetup multi-site monitoring procedures

Steering Committee at group & regional levelSteering Committee at group & regional level All stakeholders participate(IT and business,

computer audit) High level progress reporting, issues

Project manager has to work at the detailed Project manager has to work at the detailed level by communicating with local and remote level by communicating with local and remote teamsteams

Periodic progress reportsPeriodic progress reports Action quickly; escalate if necessaryAction quickly; escalate if necessary


Avoid scope creepAvoid scope creep

Absolutely essential especially for multi-site Absolutely essential especially for multi-site projectsprojects

Have a tight change control process on the Have a tight change control process on the scopescope

One small change may have significant impact One small change may have significant impact to the core infrastructure and other sitesto the core infrastructure and other sites

Project manager needs strong control on Project manager needs strong control on scopescope

Work with the sponsor and usersWork with the sponsor and users


Have common goalsHave common goals

Differences in culture, geographies and Differences in culture, geographies and processes must be overcomeprocesses must be overcome

Solution:Solution: Built into award system Communicate often through intranet, working

group meetings Form virtual teams Have escalation process in case of impasse


Communicate, communicate, communicateCommunicate, communicate, communicate

Share all information using intranet, Share all information using intranet, newsletters, team meetingsnewsletters, team meetings

Encourage synergy with other group members Encourage synergy with other group members in other countriesin other countries

Have escalation procedure in case of a Have escalation procedure in case of a communication block or tough issuescommunication block or tough issues


SummarySummary

The basic principles of project management do The basic principles of project management do not change for global projectsnot change for global projects

Complexity on scale, countries, people and Complexity on scale, countries, people and politicspolitics

The project manager plays a key role in the The project manager plays a key role in the success of the projectsuccess of the project


ReferenceReference

Hsbc.com websiteHsbc.com website All HSBC information courtesy of HSBC Group All HSBC information courtesy of HSBC Group

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L10 pm for global banking projects