L10 pm for global banking projects
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This document discusses the challenges of managing global IT projects through two case studies of HSBC banking projects. It outlines the critical success factors, such as having clear roles and responsibilities, multi-site monitoring procedures, effective communication, and avoiding scope creep. The project manager plays a key role in overseeing the complexities of coordinating teams across countries and ensuring common goals while allowing for regional customization.
L10 pm for global banking projects
- 1. IS5540- Project Management and Quality Assurance Project Management for global banking projects Prof. Y.B. Yeung 2/4/13 November 2009
- 2. Learning objectives Review examples of global IT projects of a major international bank Understand the challenges and experience gained from these IT project examples Understand the critical success factors of managing global IT projects
- 3. Global banking IT projects Definition 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 that fit both the above categories Requires advanced project management skills
- 4. Global banking environment International bank group operating in many countries Customers need to access their bank anywhere they travel Common brand and products worldwide Support services sourced from different countries(IT, call centres, data entry) Need to face different regulators and government
- 5. Study of a major global bank Fact sheets Two global IT projects Experience gained Critical success factors for managing global IT projects
- 6. Organisation of a global commercial bank
- 7. HSBC fact sheet (1) One of the largest banking and financial service organisation in the world Asset = USD2,421 billion as of end June, 2009 Profit = USD3.7b for first half 2009 Number of offices worldwide = 8500 Total staff = 295,610 Number of customers = >100m(25m on Internet banking)
- 8. HSBC Fact sheet (2) Established in 1865 in Hong Kong Head office in London Operations in Europe, Asia Pacific, Americas, Middle East & Africa
- 9. Asia Pacific region operations HSBC Asia Pacific Head office in Hong Kong Branches 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
- 10. System connectivity branches branches Global Data network Software coe Software support Regional data centres Global servicing centres
- 11. Example of global IT projects HUB(universal banking system) Central core team, regional customisation, used in multiple countries Internet banking Multiple development teams, used in multiple countries Group project strategy Develop once, use in as many places as possible
- 12. EXAMPLE 2 HUB PROJECT
- 13. HUB project H SBC U niversal B anking project ( HUB ) Software that supports branch banking in various countries Initial design is for small and medium size countries (eg. Thailand) Functionally rich (deposits, loans, time deposits, payments, trade finance, securities, credit cards) Now enhanced to handle large countries (eg. Canada, India)
- 14. Technology used by HUB IBM mid range computer – iSeries(formerly called AS400) Software in-house developed Use RPG (report program generator) language Front end – intelligent terminal software developed in-house using Unisys technology Development started in 1984 and took four years to complete First global project for the bank
- 15. Challenges faced by the project team Technology is new and evolving(S/34 to S/36 to S/38 to AS400) Technology not as robust as mainframe Needs rich functionality to cater for all aspects of branch banking First Group project – develop once and use many; implies building one software that cater for the needs of multiple countries Difficult to gather requirements
- 16. Where is HUB today Probably one of the best branch banking software in the world (in-house or package) Implemented in many countries (all of Asia, Canada, Europe). Large sites (HK, UK, USA) use selected modules from HUB Vancouver development centre is HUB COE Local support provided by regional team A major rewrite project has started to modernise HUB
- 17. Experience gained Set up a Group HUB user coordination department to control scope and user liaison Staffed by bankers and not IT staff Have clearly defined roles Core software developed in Hong Kong Sites allowed to make local changes Have to retrofit periodically back to core
- 18. Experience gained(2) PPCR procedure(program problem change request) Change control request vetted by HUB coordinators before passed to IT for evaluation Close partnership with IBM to improve the robustness of AS400(logical partitions, multiple processors, speed improvements) Strong project manager crucial to success of project
- 19. EXAMPLE 2 INTERNET BANKING PROJECT
- 20. Internet banking project PIB(personal internet banking) BIB(business internal banking) Software 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
- 21. Internet banking project(2) Components 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
- 22. Internet banking connectivity Internet FIREWALL FIREWALL Mainframe TDM SAV CUA TD CARD LOAN SEC WEB SERVERS INTERNET BANKING SERVERS APPLICATIONS
- 23. Characteristics of project Core engine controlled by New York team Each country has variations on Web page (language, local content) Functionality (products, local interfaces) Regional team has to develop local functions Parallel development & implementation required Global and regional project management office
- 24. Hong Kong site – English and Chinese
- 25. Korean site – Korean and English
- 26. India – Unique NRI(non resident service)
- 27. Internet banking project today Rollout worldwide Hong Kong has over 1 million registered customers using internet banking Fast growing and popular channel High customer satisfaction The Hong Kong system has won many rewards from trade magazines
- 28. Experience gained Constant feedback required for Customer Experience Non IT support structure(eg. Call centre) also crucial to success Difficult to balance Ease of use vs. Risk IT security is a constant threat but no security incidents caused by weak IT defense since launch Regulators/media watch like a hawk
- 29. How to manage global projects effectively Stick to project management principles Secure support from senior management Have clear roles and responsibilities Good project planning Setup multi-site monitoring procedures Avoid scope creep Have common goals for all staff to overcome geographical and culture barriers Communicate, communicate, communicate
- 30. Stick to project management principles The basics do not change 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?
- 31. Support from senior management 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
- 32. Clear roles and responsibilities New York team – hsbc.com Custody of core software; interface with IBM Regional 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
- 33. Clear roles and responsibilities(2) Business departments have to allocate resources Work with graphic design companies on web page design and navigation Work with IT on how to construct the web pages Prototype test with selected real life customers User acceptance test
- 34. Good project planning Plans have to be prepared at various levels Group; region; country Seek input from all stakeholders Marketing department will also provide input as to market segmentation in rolling out the product IT department has to input on hardware procurement, testing time slots, etc.
- 35. Setup multi-site monitoring procedures Steering 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 level by communicating with local and remote teams Periodic progress reports Action quickly; escalate if necessary
- 36. Avoid scope creep Absolutely essential especially for multi-site projects Have a tight change control process on the scope One small change may have significant impact to the core infrastructure and other sites Project manager needs strong control on scope Work with the sponsor and users
- 37. Have common goals Differences in culture, geographies and processes must be overcome Solution: Built into award system Communicate often through intranet, working group meetings Form virtual teams Have escalation process in case of impasse
- 38. Communicate, communicate, communicate Share all information using intranet, newsletters, team meetings Encourage synergy with other group members in other countries Have escalation procedure in case of a communication block or tough issues
- 39. Summary The basic principles of project management do not change for global projects Complexity on scale, countries, people and politics The project manager plays a key role in the success of the project
- 40. Reference Hsbc.com website All HSBC information courtesy of HSBC Group