Plan :A brief summary The bank presentation History The Problematic The solutions The results and The lessons learn

The bank presentation

Shinsei, which literally meant "new birth" is , a Japanese commercial bank, is the successor of a trust bank, the Long-Term Credit Bank of Japan, which had a government monopoly on the issuance of many long-term debt securities.

History : The main historical events :

1- LTCB ( long term credit bank) 1952 1980 19912- Acquisition by Ropplywood: In march 2000, LTCB was sold to an international

group led by US-based Ripplewood Holdings . And in june 2000, LTCB was relaunched as "Shinsei Bank" .

3- The new birth:

The Problematic

The system was overloaded with no spare capacity.

The traditional methods of retail banking were not performing enough.

Mainframe infrastructure; overloaded and no space capacity.

Separate networks that were tied closely to the old business model, inadequate capacity and expensive maintenance costs because of locked-in contract with vendors.

High maintenance costs due to existing contracts with vendors operational processes strongly paper-bound causing unnecessary redundancies

The mainframes held the tal data which imposed great risks on to businesses.

CEO Yashiro know that innovation in services will attract customers. This transformation should be effective, speed ,flexibility and cost control were paramount. So a complete overhaul of the IT system was required to enable this. Which need a robust operational and technological infrastructure.

The solutions : Building a New System

Dvivedi started by :

Forming a skilled team . Identifying clearly the problem Broke it down into pieces for making sure to

solve them one by one quickly and with more efficiency.

Diviedi set up five basic guidelines that were to govern all work going forward to make processes more efficient:

Speed - How fast can the work be done? Cost - How low can we keep costs? ? Capability - What new capabilities will IT

enable? Flexibility - How easily can the system be

changed to respond to business needs? Safety - How secure is our system?

Shinsei spent a substantial amount of time creating principles to guide the implementation process :

IMPLEMENTATION PROCESS

Inclusiveness

TRANSPARENCY

PAPERLESS

PARITY

The results

The system was implemented faster than it was planned. Almost 90% of the costs were saved which means it costs only 10% of the budget.

Management controls were also significantly improved through the new system offering advantages such as :

low-cost basis, they offer free Internet transfers and high-quality products and services .

Use ATMs any time free of charge. This make Shinsei different from the other Japanese banks.

Branches open on weekends and holidays in order to offer services such as same-day account openings, targeting customers who might be too busy to visit the bank during the week. Other financial institutions followed suit and began staying open on Saturday and Sunday, but services were limited to mortgages and asset management consulting.

The lessons learnt:

Dividing a big problems into parts mean a smaller pieces of the project allow quick and efficiency to solve the big problem .

  Have a plan based on guidelines for making the work more

efficient.  A good management of IS will allow to any organization :   Significant cost benefits, time savings, productivity gains

and process re-engineering opportunities are associated with the use of data warehouse for information processing.

Confidence and security