IT Strategy to meet corporate

objectives

Sanjay Mohapatra
 Agenda
• Evolution of IT strategy
• IT strategy part of corporate strategy
• Factors affecting IT strategy
• Implementation of IT strategy
• Case Studies
• J & B Software
• Polaris Software Lab
• JPMorganChase
 Business Focus

Operational

1980s
Re-engineering

1990s
Today’s IT Strategy

After 2000
Evolution of IT Strategy
IT Strategy as part of corporate strategy

Vision

Goals and
Objectives
Operational
Strategy
Strategy to Organization
achieve goals structure
and objectives
Control &
Information
Monitoring
System
mechanism
 Threat of Brand equity Vendor Competitive Stakeholders
competitors (barrier to entry for management edge
competitors)

Market Capitalization
IT STRATEGY
Innovative differentiation

Marketing differentiation IT Support for strategy Revenue performance

Domain competency

Operational Competency

Low cost production IT support for core competency Profitability

Technological competencies
 Factors affecting IT strategy
• Corporate objectives
• External and Internal drivers (Ch.11, Brien and Marakas, Management
Information Systems –TMH)
• Real time project data availability
• Daily work done electronically with schedule of authorization
• Work Flow based approval system
• One point data entry
• Metrics availability
– Utilization and productivity
– Cost of Quality
– Cost of operation
– Stakeholders satisfaction indices
• Support functions performance
• Data integrity
• Transparency
• Extent of sharing of best practices across organization
• Degree of compliance to statutory and legal requirement
Factors affecting IT strategy - 2
• Level of integration between production and
finance
• Degree of process automation
• Level of Encryption needed
• The need for Business continuity and disaster
recovery features
• Reliability of the system
– Availability
– Down time
 Factors affecting IT strategy - 3
• Ease of use
• Architecture – Central or Distributed (cost of upgrade
and maintenance)
• Total cost of ownership
• License cost
• AMC
• Special skill resource cost
• Energy and resource cost
• Hardware cost
• Cost of upgrade
 Implementation of IT strategy
• Goals
– Allocation of budget
– Maintenance of existing technology and upgrading to new technology
– Specialized skill requirements
• Define Roadmap
• Risks
– Delay in implementation schedule
– Availability of skilled resources
– End user acceptance
– Parallel use of old and new system
• Risk Mitigation
– IT organization structure
– Implementation plan with milestone defined
– Involvement of end users during IT strategy formulation and deployment
– Training for end users
• Define Stakeholders
• Project Organization Structure
• Roles and Recognition
• CSFs
• Milestones for review
• Communication Protocol
• Rewards
– Recognition scheme for core team members
Case Study no.1 – J & B
Software
 Vision

To be one of the top three image

processing organization by 2010
 Business background
• 30% of retail banking checks of US are
processed
• Passport office in US
• Niche area
• Premium pricing
• Client list includes 63 Fortune 500 organizations
– Mission critical application
– Supports more than Billion $ per day
• Expanding to other geographies
 Opportunities

• Image processing in Health Care

• Revenue from Product licensing
• Retail boom in developing countries
– High volumes
– Electronic clearing system in other
geographies
 Goals & Objectives
• Five-year goals
– To be Billion $ company
– To achieve 70% market share in US and 80%
in developing countries
– 40% net profit
Factors Considered for formulating IT Strategy
•Real time data availability
•Compliance to statutory requirements
•Profitability of each and every project
•Utilization of resources
•Single data entry
•Data integrity
•Support functions and Project Management to be integrated – process automation for integrated processes
•Milestone based automated billing system
•Transparency and metrics roll up at different levels

Senior Management Project Dashboard

Organization wide project reports

Account wise Reports

Project Status Report
Delivery Heads Project Summary
Project Tracking
Resource Availability/Utilization

Project Status Report

Tasks Schedule
Tasks Tracking
Project Managers Resources Utilization
Resource cost
Project profitability

Finance Customized Reports for Billing

Implementation
Issues
•Total Cost of ownership should not be more than Rs. 50 lacs
•Scarcity of ABAP specialists in market

Risks
•Resistance to use old and new system in parallel – means double data entry
•Sceptical about new system

Risk Mitigation

•Involving end users in the implementation phase

•Conducting workshops and providing training to end users well in advance
•Defining roles and responsibilities for all stake holders
•Communication strategy
•Reward scheme for first successful implementation
 Structure for implementation

Steering Committee

Program Manager

Functional Functional Functional QA Members

Consultants Consultants Consultants

End Users
Defined Roles and Responsibilities for implementation

Sets goals, milestones

Steering Committee Owns technology decision
Strategic direction to implementation
Track goals

Overall responsibility for implementation

Assigning proper resources at right time
Coordination with all stakeholders
Reporting progress at defined milestones
Program Management Escalating to steering committee in case of delay im
implementation
Supervising development of training materials and
imparting training to end users
Set quality standards
Define success criteria for completion

Analyze 'As Is' process

Functional Consultants
Defining 'To Be' process
Design data structure and process flow based on ETVXM
Compliance to set quality standards
 Enterprise Management

Performance goals and objectives

Customer and employee Satisfaction

Operations

Marketing Sales Finance Project Management

Operations Support

Recruitment Deployment Development Payroll

processing

Financial Control
Training and Reporting
 Case study no. 2 for Polaris Software Lab Ltd. –
Presented to Mr. Arun Jain
on 23/01/2004
Objectives:
1. To achieve stakeholders satisfaction
2. To improve productivity by 7% in 2 years
3. To stop revenue leakage
4. To expand client base
5. To increase repeat business to 90%

Factors
1. Project Level goal setting and tracking
2. Peoplesoft to track goals at project level (not at cost center level)
3. Exception report on billing, bench report, gross margin to be generated
4. Appraisal, SEC HR and Nalanda training to be integrated
5. Single point data entry, data integrity and transparency
 Peoplesoft

HR Finance
Exception Report

Entry in Empower

P
M Time sheet
Knowledge Billing
T
Management Project Level: Gross
O
margin, Net margin
O
L
Metrics
Project Library
CASE STUDY No. 3 – JPMorganChase
 JpMorganChase Book of Work Summary
Key Message: Significant progress made in 2006 yet remaining book of work is complex with numerous cross dependencies.
2006 Summary
– Industry leader with Receivables Edge browser
– Significant new business wins due to
Receivables Edge and competitive pricing
– RemitOne – Current Statistics
• Retired OWL (hBankOne platform)
• 2,414 clients, 8,181 boxes/conversions
(all platforms)
• 805 new clients, 1,333 boxes/conversions
• 5 million checks/month (71% NWL
volume)
• 2,513 clients (75%) migrated to
Receivables Edge
– Offshore site opened June 2006 (Mumbai)
– Implemented 3 Releases
– Completed SI and BNY –Phase I conversion
Remaining Book of Work
– Total client migrations: 2,519 clients, 5,109 boxes
– Bank of New York – Phase II: 223 clients, 335
boxes
– 2 RemitOne Releases (ER107 & ER207); 3 Edge
Releases
– NDS- Tri-State Conversion –
 Establish WDC file feeds for VICOR sites
• Support early MICR conversion – GLAS to
SAP
– Finance Target – GLAS to SAP
• Revise strategy to feed lockbox platforms
to SAP
– Offshoring – 3 phase ramp up
• 44.5MM keystrokes, 87 FTE in 3 phases
– Fax/E-mail to EDGE – Targeted 353 clients
– Truncation – Reduce paper and re-association
process by truncating targeted clients - Scope
TBD
 System Capacity & Demand Forecast

•Model forecasts daily ”peak” processing Key Initiative Summary

Project # Imp Date Description Capacity Lift Recognized
capacity based on the R1 highest volume
day to date (10/11/06) 1 1/23/2007 Performance Hot Fix (stored proc. optimize for database lock relief) 0%
2 2/10/2007 Infrastructure Enhancement - DOP Modification 5% February-07
•New Prod Server Implementation in May 3 2/23/2007 Release 8.0 - Edge/TFC/RemitAdmin for UPS 0%
and Citrix Farm upgrade in July are critical 4 3/6/2007 Performance Hot Fix (5 key table splits for lock relief) 0%
5 4/13/2007 Implement 2 Additional Citrix Servers 3% April-07
to support migration volumes 6 5/6/2007 New Production DB Server and SQL 2005 Upgrade 55% May-07
•April batch, keystroke and citrix user 7 6/22/2007 Release 9.0 and ER207 - RemitOne/Edge/TFC/RemitAdmin 0%
8 6/28/2007 Performance Hot Fix (T-SQL Conversion) 5% July-07
capacity is amber as cushion between 9 7/2/2007 Citrix Farm Re-Design and 4 Additional Server Adds 15% July-07
demand and capacity lessens 10 11/9/2007 Release 10.0 - RemitOne/Edge/TFC/RemitAdmin for PVB/RedLight 0%
Arch. Design Recommendation Implementation #1
•Peak Transmissions is amber Oct-Dec, 11
12
Q3
Q4 Arch. Design Recommendation Implementation #2
TBD
TBD
Q3
Q4
does not include current plan to move
** Projects 1 & 3 actual capacity impact will be captured if improvement noted and forecast adjusted as necessary.
fax/e-mail transmissions to Edge in Q1
2007
Jan Feb March April May June July Aug Sept Oct Nov Dec

Project # and Capacity Lift 2 (5%) 5 (3%) 6 (55%) 8 & 9 (20%)

Batches
Batches/ Month Demand 447,942 450,908 474,813 499,830 534,789 563,767 597,361 620,978 651,425 682,804 711,936 714,903
Max Batches/Day Target 39,900 40,164 42,294 44,522 47,636 50,217 53,209 55,313 58,025 60,820 63,415 63,679
Capacity RAG

Keystrokes
Keystrokes/Month Demand 119,467,398 120,845,111 124,722,824 139,615,948 150,796,123 161,783,526 175,629,026 178,347,763 183,762,266 192,576,985 201,800,550 203,178,263
Max Keystrokes/Day Target 10,428,000 10,548,257 10,886,733 12,186,715 13,162,603 14,121,665 15,330,203 15,567,515 16,040,133 16,809,547 17,614,648 17,734,905
Capacity RAG

Checks
Checks/Month Demand 5,177,072 5,211,357 5,487,643 5,776,768 6,180,809 6,515,728 6,903,983 7,176,932 7,528,830 7,891,493 8,228,181 8,262,466
Max Checks/Day Target 446,960 449,920 473,773 498,734 533,617 562,532 596,052 619,617 649,998 681,308 710,376 713,336
Capacity RAG

Images
Images/Month Demand 13,975,224 14,136,388 14,997,552 15,737,146 16,810,926 17,565,878 18,398,600 18,597,548 18,989,119 19,513,894 20,370,569 20,531,733
Max Images/Day Target 1,159,000 1,172,366 1,243,784 1,305,121 1,394,172 1,456,782 1,525,842 1,542,341 1,574,815 1,618,336 1,689,382 1,702,748
Capacity RAG

Transmissions
Max Transmissions/Day Demand 2300 2300 2300 2400 2500 2600 2700 2800 2900 3000 3100 3100
Current Capacity RAG

Peak Transmissions
Max. Trans at 1400 Cutoff Demand 523 523 523 576 629 682 735 788 841 894 947 1000
Current Capacity RAG

Citrix Users
Peak Citrix Users/Day Demand 263 263 283 313 343 370 400 440 460 480 500 510
Current Capacity RAG
 Recommendation

Key Message: Prioritize remaining migration activities by corporate requirements and financial opportunities. Establish
migration waves based on critical capacity measures to ensure quality and effective change management.
Guiding Principles:
• Establish migration schedule leveraging key lessons learned in 2006
• Create migration waves within parameters (volume, complexity) that promote quality, timeliness and limit client impacts
• Define migration waves that do not conflict with corporate initiatives, system freeze periods or month-end/quarter end
• Meet key milestones throughout migration life cycle (e.g. client notifications 75-90 days prior to migration; 120 days for
complex clients)

2007 Client Migration Recommendation

• BNY Phase II migration wave scheduled on March 23rd in conjunction with enterprise conversion event
• Auto Wholesale – TSLink backdoor related accounts will be completed in 3 waves (April & May)
• Remaining hJPMC book of work will commence migrating in June
– Migration waves will alternate – simple & full
» Simple waves: No transmissions or complex workflow
» Full waves: Combination of simple, standard and complex clients
• 11 client migration waves scheduled from June through November 2007 (6 Full & 5 Simple)
– Complete VICOR & Imagescan migrations by November 2007 (except PVB/Redlight & FMS-Dallas)
– Full relationship migration drives AW and Custom Core population to R1 during the year (40% boxes, 30%
clients)
– Complete majority of migration activities for remaining AW & CC clients by end of 2007
• New business migrations will continue weekly throughout the year

Remaining Book of Work

• Timeline does not accommodate the following work to be migrated to RemitOne in 2007
– Remaining Auto Wholesale & Custom Core
– Cicero – Regional Lockbox
– PVB & Redlight – due to development requirements in ER207
– NYC Retail - Regulus
• This effort would require 5-7 additional migration waves which can not be supported in June-November 2007 timeframe
(approx. 800 clients & 1,400 boxes)
 JPMorganChase Improvement Efforts

Key Message: Cross-functional teams are actively engaged in process improvement efforts based on lessons learned from
2006 migrations. The improvement efforts will not introduce radical changes, but instill the appropriate discipline and
inspection required for success.

Complex Client
Client Engagement
Management
• Project management
• Define and identify
discipline
complex clients
• Strengthen Market
• Strengthen client
Readiness approach
engagement
• Holistic client engagement
• Mitigate client impacts

Migration Approach / HPC / Engagement

Timeline • Improve and increase
• T-Minus planning Training/Education
• Acceleration process • Improve recognition
• Command Center • Review tools and leverage
• Issue management best practices
JB Software solutions
- Improvement
Workstreams
Testing
• Comprehensive end-to-end
testing
• Address gaps from 2006
process

Capacity / Demand Release Cross-Impact

Management
• Identify 2007 demand
• Create a capacity plan
• Establish forum and steps
for ongoing management
• Identify optimization
opportunities
• Create forum for
information/best practice
sharing
 Calendar
Key Message: The availability of migration waves is limited due to the 1st quarter delay and on-going stabilization efforts.
 Prioritized Platform Recommendation

Key Message: Platform migrations prioritized by corporate requirements and financial impacts.

Prioritized List Assumptions

– Associated volumes are dependent on the

sequence of migrations
– Client migrations are designed to migrate
entire client relationships, not just single
platform
– Multiple platforms/sites are impacted by
each migration
• For example, if we migrate a client
from VICOR in Chicago, the may have
boxes on Auto Wholesale in Brooklyn
– The prioritization accomplishes obtaining the
closure of three sites in 2007 – Chicago
South, Dallas, and Los Angeles
– Wave guidelines
• 350 Boxes: 100 Complex, 125
Standard, 125 Simple
• 4mm keystrokes
• Notifications: 70
• Checks: 175k
• Images 600k
 Infosys IT strategy evolution
1997 2000 2003
PsWeb SAP R3 IPM

Single HR data entry,

milestone based billing and
Billing Oracle Financial invoice automated

Telephone Directory Outlook exchange

Cc Mail IPM ver1.0 + QSD

MSP Knowledge Shop Knowledge management

BoK PCB technology based PCB technology based

Project Level goal

(Business and quality
QSD Billing at Project Level productivity related)

PCB project type based Balance Score Card Bench Utilization

Billing at Cost Center Level

 IT Strategy for Motorola Tenjing
Changes in demographic profile

Ability to make changes in process, technology

Internal quality Product or

Inbound and operations Outbound services

Demand Time to
fulfilment Meeting quality standards
market

Speed, Improve Productivity Predictability

flexibility operational and and risk
efficiency profitability mitigation

IT STRATEGY
Thank You