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InformationActionPlanSummaryReport1)InformationActionPlanOverview2)TheFuture:TheCaseforChange3)StrategicApplicationProjects4)TechnologyInfrastructure&EDPOrganization5)Programmecost,resources,andmanpower6)Programme&ChangeManagement7)NextSteps1.InformationActionPlanOverviewInformationActionPlanOverviewStage2OrganizationPlanTechnologyPlanBusiness&CompetitionAssessmentITPossibilityAnalysisStage1TheInformationSystemPlanning(ISP)projectiscomplete.Wehaveidentifieda5yearapplicationstrategy(shownonnextpage)alignedwithBankX’sbusinessstrategy.Wehavealsoidentifiedthedataandtechnologyinfrastructures,projects,andscheduletocarryoutthesestrategies.

-ISPPlanningProjectWorkplan-InformationActionPlanOverviewData&ApplicationPlanInformationActionPlanProjectsandSchedulesScopeDefinition&ClassificationsCurrentSituationAssessmentITStrategyApplication,Data,andTechnicalStrategiesProductFactoryOperationsProcessingClosing&SettlementProductAdministrationCentralProcessingNavigatorDriver-Daily-MonthlyClosingLoans-B/S-P/LAccountingProductManagementCreditCardDomesticExchangeExternalDataProcessingForeignExchangeDeposits-LOGAnalysisDeferredSystemExpensesSuspense'sPayable/Receivable*Treasury*InvestmentRelationshipManagementSales&Marketing-Cust.Seg.&Selection-D.M-ConsultingSalesSupport-Customer-Products-MarketNeedsAnalysis-PlanDevelopment-SalesPromotionPlanCampaignPlanning-GISBranchOpeningCreditControl-Scoring-CreditRef.-LimitSetting&MonitoringCreditManagement-Debtorlist-LegalNotice-RecoveryTrackingDebtCollection-Account&CardusagePattern-IdentifyMerchantFraudFraudDetectionCustomerMgmt.-Attribute-Exposure/Limits-RelationshipServiceCustomerManagement-Customer-RelationshipCustomerProfitability-KBF,BOK-CheckingrealnameThirdPartyReportingofCust.Details-AutomaticAccountsTR-CreditcardPayment-ClearingCenterCut-InterestCAL-FeesCAL-Checkday-DividendCAL..etcCommonProgramInformationDeliveryRetailCustomer-Listofcreditcardusage-BalanceStatementReportingGovt./Regulatory-B/S,P/L-StatusofEDPBusinessBOKReporting-TAA-KBFTax/LoansReportingAssociatedInstitution-KFTC-CGFProvisionsExternalOrg.-FileTransferFirmBanking-Usageapproval-CheckaccidentsVisacardApproval-Exchangesofjointcardsinformation-Badtran.Corp.DataExchangeAC:AccountsAT:AccountTransferBOK:BankofKoreaCAL:CalculatingCGF:CreditGuaranteeFederalDM:DirectMarketingDP:Deposits&PaymentDW:Deposits&WithdrawlEX:ExchangeFI:FinanceIQ:InquiryKBF:KoreaBankFederalMeas:MeasurementNA:NewAccountPB:PassbookRecon:ReconciliationRL:RelationshipRM:RemittanceSeg:SegmentSum:SummarizationTAA:TaxAdministrationAgencyTR:TransferTX:TransactionUP:UpdatingPassbookWD:WithdrawlServiceDeliveryCustomer-DW-UP-ACTransferATM/CD-CashServiceCreditCard-TRService-AccountIQ.etcPhoneBanking-TRService-AccountIQ-Internet-VirtualBankHome/Firm-Open(AC,Cust)-DP(TRmoneyotherbanks)-ForeignEX/RM-OthersIQFemaleProcessingTeller/Male-Loan,Mortgage-Card,Borrowing-TradeFI-OthersIQMaleProcessingExternalProcessing-Clearsfromotherbanks-GIROTransactionProcessing-Borrowing-NationalTreasuryBOKWire-EFT/POS-SWIFTInformationFeeds-Authority-Ratios-ReportingSchedulesRegulatoryinfor.Maintenance-Geographic-Demographic-BranchattributeGIS-Limits-Dividendprice-MaturityProductsInformation-Details-Relation-ship-CredithistoryCustomerMaintenance-ExternalcreditCreditBureauHistoryDistributor-CustomerStatement-ReportConsolidationMessageWarehousingInterchangeManagement-Route-Send-Manage&RecordDistributionManagementIntegratorRisk/ReturnMaintenanceExternalInfor.ManagementJournalEntrySum&ReconFixedAssetSummarizationTransferPricingActivityMeas.Sum.CreditPerformanceSumSalesSumCustomerProductUsageSum.MarketResearchSamplingTreasuryMaintenancePerformanceTargetMaint.Int'lInvestmentMaintenance-LOGAnalysisDeferredSystem-Employees'PBMgmt.-OperatorMgmt.-On-lineAuthorizationHandling-Financial-Non-financialTransactionManagementWorkflowManagement-Logallentries-AuditTrailerJournalProcessing-Pending-RejectedTransactionHandling-ProcedureTiming-ProductProcess-ActivityWorkMeasurement-Cashin/out-TellerBal.-BranchBal.-Safety/NightdepositIntra-dayBalanceMgmt.Operation-Costsassignment-StandardCostingProfitabilityAssignmentProductivityReporting-CustomerImage-Error&Complaints-ProcessingSpeedServiceQualityManagementSales-Develop-ment-Analysis.Cost.PricingProductProfitability-Segment-Relation-ship-MarketSectorCustomerSeg.Profitability-Product-BusinessUnit-CustomerSeg.SalesPerformanceReportingCompetitive-Demogra-phic-ProductMarketResearch&AnalysisAdministrative-Recruit-Training-CareerPlanning-PaymentHumanResourcesMgmt.-Asset-InsuranceValue-Deprecia-tionInventory/FixedAssetMgmt.EISManagement&ControlInvestment-BankA/C-TrustA/CTreasuryManagement-SyndicatedLoan-Securities-MoneyMarketInt'lInvestmentManagementEletronicOfficeFinancial-TransferRate-ExchangeRate-B/S,P/L-BudgetFinancial&Mgmt.Accounting-Costs-Revenues-Profitabi-lityFinancialBudgeting&Forecasting-Analysis.Liquidity.InterestRate.FXRate.DurationALM-Credit-InterestRate-FxRate-LiquidityRisk/ReturnManagement-Branch/costcenterBusinessUnitProfitability-Ratio.BIS.CD-Risk&ExposureRegulatory&CompliancePhase1Phase2Phase3InformationActionPlanOverviewTheISPprojectismakingfivemajorrecommendationsthatwillsignificantlychangeBankX.Thegoaloftoday’smeetingistoconfirmwithyoutherecommendationsshownbelowandtorequestyoursupportaswemoveforward.Recommendation1:Focussystemsdevelopmentonnewcustomerrelationship,profitabilitymanagement,andriskmanagementapplications.Recommendation2:Divideapplicationsintothreephases:customerrelationshipfirst,management&controlsecond,lowprioritythird.Recommendation3:SelectanadvancedUNIXtechnicalinfrastructurefornewapplications;surroundoperationalsystems.Recommendation4:ChangetheBankXEDPandbusinessorganizationstoencouragesharedplanning,design,andrelationshipbuilding.Recommendation5:Investaggressivelyoninformationsystems,technicalhardware,andtraining;limitspendingonoperationalsystems;revisitservicedelivery.InformationActionPlanOverview2.TheFuture:thecaseforchangeWhilethepastfiveyearshavebeensuccessful,BankX’sfuturelookstobeevenmorechallenging.BankXmustfindwaystogrowwithoutimpactingitshighproductivity.TheFuture:thecaseforchangeLargeSizeHighPerformanceTargetSource:InstitutionalInvestor,8/95BankXcurrentapplicationsrepresentonly38%*oftheapplicationsitwillneedtoleadinthefuture.YetatthecurrentpaceofapplicationbuildingandITexpenditure,itmaytake8-12yearstocompleteidentifiedapplications.TheFuture:thecaseforchange*BasedonapplicationsidentifiedinISPprojectFromatechnologyperspective,BankXhasnochoicebuttomoveforwardorfallbehind.Newtechnologiessuchasparallelprocessing,datawarehouse,decisionsupport,andelectronicbankingarechangingthecompetitivelandscape.TheFuture:thecaseforchangeTraditionalComputing(1960)PC(1982)ParallelComputing/DataWarehouse(1994)Client/Server(1985)RemoteComputing(1991)VirtualBanking(1998)

“Expandingthevolumeofdepositsandcustomers”“Restructuringtheinformationsystems”“Pursuingprofitorientedbusinessstrategy”“Buildingupthecustomermanagementsystem”“Establishingtheefficientloanbusinesssupportingsystems”-BusinessActivityReport1/96Butevenifthefuturelookschallenging,BankXmustmaintainitsfocusongrowth,profitability,andriskmanagement.Indeedwiththisfocus,BankXmaydomorethansurvive,itcouldflourish.TheFuture:thecaseforchange“Thetimehascomewhenyouwillhavetocompetewiththeworld’sleadingbankinginstitutions...taketheleadtosharpeninternationalcompetitiveness”-KimYoungSam,2/9/96“1)Knowourcustomerneeds2)Useinformationstrategically3)Newspecializedorganizationalstructures4)Offernewproducts5)Strengthenprofit&riskmanagement”-President3.StrategicApplicationProjectsTosupportBankX’sgrowthobjectives,werecommendfocusingITresourcesoncustomerrelationship,profitabilitymanagementandriskmanagementapplications.InformationActionPlanOverviewBusinessStrategySystemStrategyRelationshipManagementProjectsCustomermanagementSalesandmarketingCreditcontrolServiceDeliveryProjectNewchannelstrategyManagementandControlProjectsALM&riskmanagementFinancialmanagementSales&marketingmanagementProfitabilitymanagementTreasurymanagementInternationalinvestmentmanagementOthers(EDPorganizationandelectronicoffice)Recommendation1:Focussystemsdevelopmentonnewcustomerrelationship,profitabilitymanagement,andriskmanagementapplications.100%150%200%250%300%350%400%1994199619982000DepositsCustomersBranchFocusonmid-sizedcorporationsFocusonmiddle-to-upperclassindividualsSatisfybuyervalues,particularlycompetitivepriceProvidenewproductsfasterthancompetitorsDeliverspecializedproductsbycustomersegment&combinedproductsExpandbranches,ingoodpositionsinmajorKoreancitiesDiversifydeliverychannelsincludinghomebanking,firmbanking,telephonebankingEstablishinfrastructureforinternationalizationfocusedonAsiaOperationsCustomersProductsChannelsDevelopspecialists,especiallyinCommercialandInternationalbankingEstablishefficientrisk/returnmanagementprocessApplysystemssupportandprocessimprovementstoimproveproductivityWeidentifiedanumberofkeystrategicresponsestotheexternalenvironmentofthebank,coveringCustomers,Products,ChannelsandOperations.Wehavedesignedthestrategicapplicationprojectstosupporttheseresponses.StrategicApplicationProjectsTheCustomerManagementandSales&Marketingprojectswillprovidethekeysystemstobuildrelationshipswiththetargetmid-corporatecustomersandmiddle-to-upperclassindividuals,improvesalesperformanceandproductivity,andunderstandcustomerprofitabilitybetter.RelationshipManagementProjectsMajorBusinessApplicationswillprovide:CustomermanagementCustomerservicemanagementCustomerprofitabilityanalysisCustomerinformationmanagementSalesandMarketingSalessupportNeedsanalysisCampaignplanningBranchOpeningIndividualcustomerprofitabilityinformation,enablingBankXtotakesoundcreditriskandpricingdecisionsComputerizedandintegratedcustomerinformationavailablethroughoutthebank,resolvingcurrentdataintegrityproblemsPowerfulcustomerneedsanalysistool,enablingBankXtoidentifyrequirements|forcustomersinnewsegmentssuchasmid-sizedcorporateEffectivesalestoolswhichwillenableBankXtomaintainsaleslevelsevenasasnumberofbranchesexpandsSalestoolsthatcanquicklyandeasilybeexpandedtosupportnewproductsas

theyareintroducedfollowingde-regulationAnenvironmenttostructureandplancampaignseffectivelyMoreeffectiveplacingofbranchesthroughuseofageographicinformationsystemtoplanlocationsExamplecase:BarclaysBank,UK(1992)DescriptionCombinedcustomerinformationsystemprovidescustomerinformationmanagementandsalesandmarketingsupportforallproductsThecostofthe100,000mandayprojectwasrecoveredwithin2yearsofoperationBenefitsIncreaseinsalestoindividualsthroughthebranches:exceededtargetsby400%Salesthroughdirectmarketingcampaigns(directmailandtelephone)increasedbyover50%ImprovedmoraleandsatisfactionofemployeesandbettercustomerserviceTheCreditControlprojectswillenableBankXtoexpandthenumberofcreditapplicationsprocessed,andimprovecustomerservice,whilemaintainingcontrolovercreditrisk.CreditControlCreditmanagementDebtCollectionFraudDetectionAnefficient,largelyautomated,creditcheckingfacility,whichenablesBankXto

processmorecreditapplications,fasterFastercustomerserviceandlowercoststhroughimprovementofthelending

processanduseofWorkflowtechnologyAbilitytoprovidelowerpricestoselectedcustomersbasedonimprovedprofitabilityinformationandcreditinformationEfficientdebtcollectionsupport,whichenablesBankXtomaintainthecurrent

lowbadloanratioStoredandsharedcreditinformation,reducingdocumentretrievaltimeMajorBusinessApplicationswillprovide:Examplecase-BarclaysBank,UK-AutomatedCreditApplicationScoring(1995)Customer’’spersonalcreditdetailsareentereddirectlyintothecomputerinthebranchThedetailsarefirstcheckedforcreditratingandthenscoredbymatchingthecustomer’’spersonalandfinancialbehaviorprofileagainstotherborrowersDescriptionBenefits90%ofapplicationsforunsecuredcreditarescoredandapprovedin5minutes.AccountisthensetupandfundstransferredovernightBarclaysclaimthesystemprovidesbettercreditassessmentthanbranchstaffontheirown(loandefaultsreduced)RelationshipManagementProjectsTheNewChannelStrategyprojectwilldevelopthestrategicdirectionforuseofnewdistribution

channelsatBankX.NewChannelStrategyCustomerpreferencesurveyAnalysisofcompetitoractivityAnalysisoftechnologytrendsEconomicanalysisofcurrentchannelsRecommendedstrategicdirectionforuseofnewdistributionchannelsStrategyprojectwillprovide:ServiceDeliveryProjectsExamplecase-UKRetailBankDescriptionDevelopedananalysisofpotentialdistributionchannelsSelectedmultimediaself-servicekiosksastheareatopilotDevelopedaprototypesystemfordiscussionwithexecutives,branchstaffandcustomersBenefitsMultimediaprototypeprovedthepotentialofthenewchannelWorkingsystemdevelopedandimplementedin7brancheslastyear,toprovideselfsalesserviceforloans,depositsandinsuranceExtensivepresscoverage-freeadvertising-positionedbankasatechnologyleaderPilotsystemnowbeingrolledouttootherbranchesTheALM&RiskManagementprojectwillprovidethesystemsforBankXtomeasureandcontrolrisk.ALMandRiskManagementALMRisk/ReturnManagementPreciseinterestrateriskinformation,whichwillhelpBankXtocopewithfinancialliberalizationAdvancedriskperformanceinformation,toenableBankXtooptimizerisk/returnbalanceMajorBusinessApplicationswillprovide:ManagementandControlProjectsExampleCase-MajorUSInvestmentBankBank-wideriskmanagementreportsonadailyandintra-dailybasisCoveredcurrency,interestrate,equityvalueriskDescriptionBenefitsCutriskevaluationtimefrom1weekto15minutesEnableduseofsophisticatedriskmodelstoidentifyhedgingopportunitiesandlargestrisks,andevaluateriskadjustedreturnsEnabledbetterallocationoflimitedcapitalresourcesTheFinancialManagementprojectwillimprovethetimeliness,consistencyandaccuracyoffinancialreports,whilsttheSales&MarketingManagementprojectwillprovideimprovedexternalinformationonthemarketandcustomersviewsofBankX.FinancialManagementFinancial&ManagementAccountsFinancialBudgetingandForecastingRegulatoryandComplianceConsistent,accuratemanagementreportsandfinancialaccounts,reducingtimespentproducing,adjustingandagreeingreportsMajorBusinessApplicationswillprovide:ManagementandControlProjectsExampleCase-MajorUKBankDesignedandinstalledanintegratedsuiteoffinancialmanagementsystems,coveringfinancialandmanagementaccounts,andregulatoryandcompliancereportingDescriptionBenefitsReducedtimeforproductionofmonth-endreportsfrom10daysto2daysReducedmanpowerrequiredtoproducereportsbyapproximately60%RemovedthelargenumberofinconsistencieswhichpreviouslyexistedbetweenthemanagementreportsandthefinancialaccountsImprovedtheaccuracyoffinalreportssubstantiallySales&MarketingManagementSalesperformancereportingMarketresearchandanalysisServicequalitymanagementReportingofsalesperformancebymarketsector,enablingBankXmanagementtomonitorthesalesperformancebybusinessstructureWiderangeofmarketresearchinformation,toenableBankXtoselectthemostappropriatemarketingstrategyUnderstandingofcustomersviewofthebank,errorsandcomplaints,andprocessingspeed,enablingBankXtospotproblemareasandtakeactionCustomersegmentprofitabilitymodelCalculatescustomer’scurrentandpotentialvaluetothebankbasedonfinancialbehaviourandsimilaritytoprofilesofprofitablecustomersCustomersgroupedintovalue-basedsegmentsTheProfitabilityManagementprojectwillprovidedetailed,accurateprofitabilityanalysistosupportmanagementdecisionmaking.ProfitabilityManagementMajorBusinessApplicationswillprovide:ManagementandControlProjectsProductivityreportingCustomersegmentprofitabilityreportingProductprofitabilityFast,accurateprofitabilityfiguresbyproduct,makingproductdevelopmentquickerandmarketingmoreeffectiveCustomersegmentprofitabilityreporting,tosupportBankX’spenetrationofmid-sizedcorporatesBusinessunitproductivitybythenewbusinessunitsimplementedinNovember,enablingBankXtoidentifylowproductivityareasandtakecorrectiveactionExampleCase-MajorAustralianRetailBank(1993)DescriptionBenefitsMarketing:valuedataisusedformoreeffectivemonetaryvaluebasedsegmentationforparticularinitiatives(e.g.directmarketing)Valuedataisusedtosetpricingstrategiessuchasfeeexemptionsforvaluablecustomersandsegments,ordifferentlendingratesInthebranch,valuedataisusedfornon-pricingdecisionssuchastimespentdealingwithproblems,oroptionsandfeaturesprovidedOverall,thesystemhashelpedtore-focustheorganisationonitsmostvaluablecustomersInformationActionPlanOverviewAmajorchallengesforBankXisallocatinglimitedresources.BankXdoesnothavethecapitalorresourcestobuildallapplicationssimultaneously.WerecommendathreephaseimplementationwithmostoftheapplicationprojectsinPhases1and2.Recommendation2:Divideprojecteffortsintothreephases:customerrelationshipfirst,management&controlsecond,lowprioritythird.Phase3Phase2Phase1QuickHitProjectsTechnologyInfrastructureBuildingProjectsHighPriorityApplProjects(RelationshipMgmt)EnhancementofExistingSystemLowPriorityApplProjectsOrganizationalChange/BPRrelatedProjectsNewOrg./BusinessProcessBasedProjectsHighPriorityApplProjects(Mgmt.&Control)ServiceDeliveryImprovementsServiceDeliveryStrategySkillDevelopmentProjectsAkeyfactorinprojectphasingisthegoalofphasinghighvalue,lowerriskprojectsinthefirstphase.Thesequencingforthemasterschedulewasdeterminedusingtheprinciplesdescribedabove,andrevisedtosmoothresourcerequirementsoverthethreephases.4.TechnologyInfrastructureandEDPOrg.CurrentSystems,Infrastructure,EDPOrg.Whilemostofthenewapplicationscouldbebuiltontheexistingmainframesystems,thenewenvironmentwillbemoreeffective.Itwill,however,requirecommitmenttoEDPtrainingandinfrastructurespending.TechnologyInfrastructureOperationalInformationSurroundwithadvancedtechnology

InformationServiceDeliveryJuHyoKim12345643231MaintainexistingarchitectureOperationalInformationOperationalRecommendation3:SelectanadvancedUNIXtechnicalinfrastructurefornewapplications;surroundoperationalsystems.Thefuturetechnologyenvironmentisshownbelow.EDPCenterI/S&On-lineHost(HDSGX6115-MVS)G/LE-Mail.LogisticsAcctingTaxInfoG/LBudgetIntradayNightly/IntradayAutoTradeServer(RS6000-UNIX)EDIOn-LineHost(IBMES9121MVS)DailyCloseCenterCutExtlInterfAutoXferDom.Exch.For.Exch.TreasuryElec.BkgCreditCardDepositsTrustLoansBorrowDetailLedgersCustomerProductOn-Line(Reporting)BranchBranchServer(Sparc1000-UNIX)FOCUSJournalingSNALoanWrkFloSalesMgtPC(486-Windows)M/FInterfaceBranchMgt.FOCUSTellerPC(486-Windows)M/FInterfaceOn-LineDataServers(Sparc1000-UNIX)PersonnelCreditCardSWIFTServer(Sparc1000-UNIX)SWIFTHQStd.PC(Windows)O/AToolsExecutivePC(Windows)EISO/AToolsH/RPC(Windows)PersonnelO/AToolsHQMFGatewayServer(Sparc1000-UNIX)SNAGatewayBankXSystems(AfterPhase3)Rel.MgmtServer(Sparc-UNIX)CustomerSalesMgmtCreditUNIXSystems(EDP)UNIXGatewayServer(Sparc1000-UNIX)TCP/IPGatewayTPMonitorFundMgmt.PC(Windows)FundMgmt.O/AToolsGroupwareServer(Sparc-UNIX)WorkflowE-MialEnterpriseDataServer(SMP-UNIX)ProductsTransactionAssetsTransactionElectronicBanking(UNIX)WEBServiceHome/FirmProductMgmt(UNIX)TreasuryInternationalFundsTradingProductProfCust,InfoLoansSalesInfoBranchWorkloadOtherMgmt&ControlServer(UNIX)ALMRiskMgmtProfitabilityFinancialProductivityInvestmentKey:Phase1Phase2Phase3SurroundMainframeSurroundTransaction/ShiftIStoUNIXEnterpriseDataServerCentralizeddataservertosupportmanyapplicationsGroupwareServerSpecializedservertosupportcreditmanagementBranchAccesstocentralizedcustomerinformation.Maintainlowcosttellerterminals.HQImprovedendusertoolssuchasdecisionsupport,adhocquery,anddatamining.KeyPoints:TechnologyInfrastructureBankXshouldminimizenewdevelopmentoncurrentmainframesystemswhichareprimarilyforbankingoperations(deposits,savings,loans,accounts).Usinganoperationalinfrastructuretosupportinformationneeds,hasledtoincreasingfrustrationforbusinessandEDPpersonnel.TechnologyInfrastructure“Can’tevaluaterisk,profit,budget”-Corporateplanning“Systemsarehardtouse.WeoftencallEDPforhelp”-Tellers“Wecan’tgetthereportsweneed”-Branchandbusiness“Informationisoftenincorrect”-ExecutivesControllingCostImprovingQuality“We’realwaysansweringthephones”“Usersaskfortoomanyandtoocomplicatedreports”“Wearetoobusyandunderstaffed”“Thedatabasesarehardtouse.Wecan’tgetdatamoved”EDPBusinessRecommendationsMinimizedevelopmentonexistingsystemstominorenhancements(newproduct&services)MeasureEDPproductivity,PrioritizereportingrequestsShiftprocessingbetweensystemstoslowdownrisingh/wcostsImprovesecurity,operations,anddisasterrecoverytoreduceunexpectedcosts.MovereportingdatatonewUNIXplatformStabilizeandsimplifyexistingsystemsEnhancesystemdocumentationandputon-lineSelectdevelopmenttoolsandbuildenvironmentEnhanceprojectmanagementandqualityassuranceDescriptionWorkflowandroutingofcreditdocuments/informationacrosstheentirebankusingLinkworksapplication.ReferencelibraryandbulletinboardsforadhocdiscussionstoenablesharingofinformationBenefitsLinkageof44differentinformationsourcesDramaticreductionintimespentcompletingapplicationsNewandconstructivewaystoworktogethertobettermeettheneedsofourcustomersThefuturetechnicalinfrastructurefocusesonsupportingthenewinformationfacilitatingdistributionandaccesstoinformation.Thefirstdemonstratedisgroupware&workflow.ThistechnologyisplannedforPhaseI.Examplecase:BankofMontreal,Canada(1994)TechnologyInfrastructureGroupware:WorkflowSpokeHQHubCreditApplicationO.K.CreditApprovalSource:SeyboldAssociatesDataWarehousing&ParallelProcessingSpokeHQHub

EnterpriseDataServerProfitability&RiskCustomerInformationRegionalSalesLeadsTechnologyInfrastructureDatawarehousingandparallelprocessingarerevolutionizingbankinformationsystemsstoringlargeamountsofcustomer/productdataandprovidinginquiry.ThiswillbecomethecriticalinformationsourceforBankX.ThistechnologyisplannedforphaseII.DescriptionCustomermarketinganalysesinaparallelcomputingenvironmentSupportforportfoliomanagement,balancesheet,riskanalysis,andmultimediadirectbankingBenefitsBalancesheet:30days&30peopleonthemainframe;nowweekly/biweeklycalculationsComplexcustomeranalysis:twodaysonthemainframe;now<30minutesExamplecase:EuropeanBank,Holland,(1993)ManyofthecoreITproblemsareorganizationalratherthantechnical.EDPandbusinessmustworktogethertodesignandbuildthenewrelationshipmanagementandmanagementandcontrolapplications.EDPOrganizationEDPBusinessEDPChangesIncreasedTrainingHelpDeskRegularVisitstoHQHQSatelliteOfficeIT-BusinessLiaisonBusinessChangeExecutiveSponsorsEndUserTrainingJointApplicationPayforProjectCostsPatienceRecommendation4:ChangetheBankXEDPandbusinessorganizationstoencouragesharedplanning,design,andrelationshipbuilding.[Koreanonly][Koreanonly][Koreanonly][koreanonly][KoreanOnly]5.Programmecost,resources,manpowerProgrammecost,resources,manpowerWeestimatethatthenewapplicationsandtechnologywillcost54billionWon.Spreadoverthefiveyearsthisrepresentsa88%increaseincurrentITbudget.InformationActionPlanOverviewRecommendation5:Investaggressivelyoninformationsystems,technicalhardware,andtraining;limitspendingonoperationalsystems;revisitservicedelivery.Cost,resourceandmanpowerestimatesarebasedonastandardmethodology,comparedandrevisedbasedonAndersenConsultingandBankXBankexperience.Atthisstage,estimatesshouldbetreatedastentativeandwillrequirefurtheranalysisbeforeeachprojectisstarted.ProgrammeCost,ResourcesandManpowerEstimatingApproachDetailidentificationofthefactorsinfluencingsystemsizeSystemsizeestimationbasedonasientificFunctionPointMethodDetailmandaysestimationbasedonMethod/1CostestimationbyaddingupeachcostunitaccuratelyConfirmationbycamparingtheotherbanksactualresultsMajorAssumptionsHumanResouceCostBankXManagerclass:329BankXStaffclass:215Externalsupport:280ImplementaionApproach.AssumptedmainlyCustommadeapproachtentatively(000Won/manday)BestpossibleaccuracyFurtherrefinementformoreaccuracybasedonactualdesigenUnvisibleFutureBut...NewSystemsBankXBankwillneedtouseasubstantialamountofoutsideresourcestosupporttheprogramme.ProgrammeCost,ResourcesandManpowerProgrammeCost,ResourcesandManpowerProjectTypeNewProjectHumanResourceApplicationExistingSystemTechnicalAppPackageSubTotalHardware&SoftwareTrainingExpenditureTotalHardware&SoftwareExpenditureTotalTotal1996199719981999200020011,311(209)3,416(1,007)2,617(585)2,398(709)1,083(349)31(17)870(250)400(68)400(121)432(106)220(63)0(0)220000002,401(459)3,816(1,075)3,017(706)2,830