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7/30/2019 RBC Royal Bank
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RBC Royal Bank: Service
Platform Implementation
BITC B
Group 6
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Contents
Introduction1
Current Information System2
The Service Platform Project3
Project Initiation4
Project Progress5
Implementation6
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Introduction
RBC Royal Bank or RBC Financial Group is the largest
financial institution in Canada, as measured by deposits,revenues, and market capitalization
1864
MerchantsBank ofHalifax
1901Renamedas RoyalBank ofCanada
1999
Announced plans tocut $400million &lay off6000employees
2002
Became the largest CanadianBank
(assets - $328 bn, market
capitalization - $36.2bn)
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Current System
1961 RBC became the 1st Canadian bank to install itsown computers
1967 RBC was the 1st mover in the Canadian bankingindustry to provide computer-processed customertransactions
1972 RBC installed 14 ABM in Toronto
1980 Installed at least 1 ABM in each branch acrossCanada
1985 Each ABM processed 10000 transactions on an avgevery month
1994 Started telephone banking services
1995 Clients had multiple channels to do business withRBC
Challenge Lack of Integration
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CSR Workbench
The CSR Workbench was developed in1980s.
Features:
Ran on DOS platform
Had separate applications for: Client Financial Transactions
Foreign Exchange
Maintenance Transactions
Client demographics and account inquiries
Since DOS was not a Multitasking Operating
system, it is impossible to run multiple
applications simultaneously
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Example of multiple transaction
Customer came to the branch but forgot his account number
Step 1
CSR has to close the current application and openthe application for searching names
Step 2Once the account number is identified its written
on a piece of a paper and the application is closed
Step 3
The CSR would then reopen original application inorder to post the transaction
Even for simple transactions the CSR had to go throughmultiple applications, like 80% of customers wanted to
check their balance before proceeding with the transaction
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Changing Role of CSR
By 2003, the CSR role had become a blend of
service and sales activities, they had a targets tomeet now
The CSRs were supported by the CRM systemwhich had its own limitations like:
Had only 39 character field to highlight offers &
opportunities
Provided minimal information
Did not have the capability to update after the offer has been
discussed and new offer can be displayed
Executingtransactional
banking
Now expected to promotevarious banking products and
refer clients to personalbankers for other products
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The Service Platform Project
Goal Replace hardware & software used by CSR with a
state-of-the-art paperless transaction system
It was one of the numerous projects in RBC to create acomprehensive e-business architecture
It all started in 2000 when attempts were being made toreduce RBCs proof processing costs to that of itscompetitors BMO financial group & TD bank financialgroup
Investigations revealed that RBC incurred higher cost they
did not follow the same proof process as TD and BMO This resulted in increased work effort by Symcor, the
outsourced proof processing partner
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Manual Process Flow
Step 1
Prepare a manual withdrawal slip & request theclient to sign it as records of funds withdrawn
Step2
CSR(using CSR financial) posts the withdrawal toclients account, draws a line on the slip to confirm
Step 3
The withdrawal slip is placed in the bundle of workdestined for reconciliation centre
Step 4
The next day the centre verifies accurate posting ofthe transaction
Withdrawal Process
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The previous failed attempt
In 1996 RBC made an attempt to replace its DOS based
system with IBM OS/2 In the new system clients were given new swipe bank
cards with PIN instead of old signature cards
The system had issues:
The concept of Swipe and Pin did not go down well with the
consumers
IBM OS/2 was slower than DOS
The slower speed was an issue with both CSR and customers
The project was scrapped because Its development process had taken longer time than
expected The system required the customers to change their
banking behavior too dramatically
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Project Initiation
November, 2001 Business case wasapproved
Promised Benefits:
Improvedefficiency of
proofprocessing
Simplifyingbranch
transactions
Ensuringerrorless
transaction
Enhancingsales andservicesupport
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Cost Associated
Cost incurred due to :
1) new hardware and software
2) time of bank personnel on theproject team
Total estimated cost - $50 million
Annual savings (favorable scenario) :$12 - $15 million
Duration of payback on investment -4 years
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Selecting a System
PackagedSolution
InternalDevelopm
ent
Proposalfrom IBM
Portingfrom DOS
toWindows
NT
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Packaged Solution
Features:
Vendor U.S. based, niche player ,specialists in teller solutions software ,thousands of implementation done
System development in guaranteed timeProduct fit well with needs of CSRs
Issues:
Architecture server based , RBC trying tomove away from this
U.S. clearing system very different fromCanada
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Internal Development
Features:
Traditional mode for RBC Allow customization to the specific needs and experiences
Tailor made system for RBC
Issues:
High risk in terms of meeting timelines for deliverables
Porting from DOS to Windows NT
Features :
Using offshore resources
Relatively inexpensive alternative
Issues:
No additional functionality provided
Strongly Recommended System :
IBM Solution
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Hardware Selection
8000 wickets in 1100 branches
Each wicket monitor , keyboard andprinter
Pre-installation branch visits to each site
were conducted by a vendorNumerous counter configurations
throughout the branch network required
Decided to purchase hardware that was ofindustry standard size
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Project Leadership
Project Team
designing and executing implementation plan
Core Members:
1) Ron Brandow
Senior Manager , Business & information solutions
2) Jan Bremner
Program Manager Service Platform ,RBC Banking bis Group
software lead , managing the design and implementation planning
3) Liagen Stangenberg
Program Manager Service Platform ,RBC Banking bis Group
hardware lead , providing hardware specifications, overseeing pre-
installation visits and inventory database , implementation planning 4) Jannie Hayworth
Program Manager , RBC Banking bis group
overall program manager , developed and managed fully integrated projectplan
facilitated weekly status meetings , issues tracking and escalation
ProjectLeadership
Project Team
SteeringCommittee
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Steering Committee
Members both from RBC and IBM
Monthly review of project status anddeal with critical decisions
Financial reviews rigorous toensure costs and scope remained in
line with the approved business case
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Project Progress
17 system developers from India brought by IBM
to expedite the development Total cost for human resource hired economical
and timely than acquiring local expertise
Biggest Issue:
Major mismatch between project costs(50%)between signing the document of understanding(DOU) and reaching Commitment to deliver(CTD) milestones
Reason:Initial estimates for interfacing the developedsystems to all the required systems was nottaken into account
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Solution
Reassessment of the business case in
light of what has been learnt so far
Aggressive price negotiation onhardware costs reduced the initial
estimation - capitalization period onhardware could be extended to 6years from 4 years
Project was rebaselined taking into
account the above changes
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Another Challenges
1) Managing the scope of project
Debate on whether to include paperlesse-bill in the initial development
It was put on the back burner and
planned for development in 20052) Problems in usability
Company called Interpix evaluated the
system from usability perspectiveInteracted with the system and resulted
in designing a simpler version of theinterface
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Proposal from IBM
Features :
System to be developed in companyswebSphere platform
Actual development responsibility IBM
Requirement Analysis(using RAC) shared
between IBM and RBC
Primary responsibility for business requirements bis group
Integration of the system with other RBC systemand testing RBC IT Team
Projected completion time September , 2003
Implementation and training - responsibility ofbis team
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Implementation Plan
Decisions to be made:
Timing of the hardware and software
implementations
Geographic roll out of the system
Overall scope of the project
Figuring out actual implementation
Decisions on software
Change management
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Hardware & Software Implementation
Two methods:
Implement both simultaneously
Benefits:
Single period of disruption for the branches
Less disruption for clients
Savings will be realized quickly Two stage approach
Benefits:
Limit on the amount of change taking place at any one time
Create momentum for the project
Challenges:
Hardware should be compatible to both old and new way of
conducting transactions
Would require another level of testing in the field
No benefits would be realized till software is installed
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Geographic Roll Out
Historically, new programs were
introduced at the same time acrossdifferent regions
This could be implemented by
beginning with the largest branchesin the busiest regions
Benefits:
Obtaining business benefit would depend on the
volume of transactions processed by the new system
Financial targets of the system could be met sooner
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Overall Scope of the Project
Four requests to be considered
regarding the overall scope of theproject:
A change to the CITs to accommodate the
future design of Visa cards Bandwidth upgrades to various branches
Network operating system conversions
Replacement of cash dispensing units
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Actual Implementation
Approaches available:
Hire implementation officers
People brought in from various areas within the
bank
Stay for 24-36 month period Trained and used during roll out
Outsourcing
How much internal expertise required?
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Software Related Decisions
Training 10000 CSRs
Gathering CSRs and giving classroomtraining without interrupting dailyoperations
Make use of RBC intranet, RBCnet byuploading learning materials
How to design learning material?
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Change Management
How well this new system would be
accepted?
Manage change for CSRs as well asClients
When to inform clients?
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