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Enterprise arkitektur – Innovation fra teori til praksis
Nytænkningsprocessen Case 1: Udvikling af forretnings arkitektur i en
service organisation Case 2: Top-down: Udvikling af applikations
arkitektur med udgangspunkt i forretnings strategien
Case 3: Bottom-up: Process optimering på tværs af en stor kompleks organisation
2
Nytænkningsprocessen
Nytænkning – tre forskellige tilgange: Top-down: Design med udgangspunkt i strategiske
analyser, fx. Porters generiske strategier / Five forces.
Bottom-up: Inkrementelle forbedringer med udgangspunkt i evaluering af eksisterende processer, fx. Via lean / Forbedrede handoffs
Outside-in: Inspiration til kreative løsninger fra lignende organisationer
Background GSS was a division in the “Group Operations” organisation with about
300 employees in the following units:• PPM – Premises and Property (physical workspace, desks, chairs,
building maintenance, etc)• ISaS – Internal services and support (canteen, cleaning, meeting
rooms, switchboard, travel, etc)• Sourcing – supporting outsourcing and procurement throughout
the organisation• COS – Office tools (mail, communicator, MS-office, etc)
GSS services were fragmented and didn’t have a “customer” perspective
GSS Target Picture 2013 was initiated in 2010 to set direction for the development of the services provided
Focus was on efficiency and effectiveness of the users, more than efficiency of GSS
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Target Picture - Definition
GSS Target Picture 2013: A description of a target state for 2013 expressing the GSS vision
as a set of service concepts - including objectives, KPI’s and measures - enabling creation of an implementation roadmap for reaching the defined target state
5
A service concept is a shared understanding of the service provided and received, which encapsulates information about the customer experience and the service outcome. A service concept summary is a high level description (3-10 lines) of a service concept, indicating customer experience and outcome.
5
An example service concept – filled templateService concept name:
GSS - Meeting facilities and hospitalityService concept area: Service to support the daily work
Service Concept driver:
User motivation: User need to have a meeting
GSS motivation and KPIs:Limited Amount of user complaints (less than x%)Utilisation rate never higher than x%End user survey satisfaction index > x%
Summary Service description:We ensure that Nordea employees and their external partners are able to meet in well equipped meeting facilities with appropriate services delivered
Service experience – Nordea employee: Conference centre:Professional reception and lobby area to
meet the visitors High quality conference centre to meet
colleagues and external visitors Access to support to technical equipment if
needed Refreshments and food available
Meeting room:Access to different kind of meeting rooms
supporting the way of workingVideo, round table, lap tops etc available
when needed Access to support to technical equipment if
needed Refreshments available
Service experience – Nordea management:N/A
Service outcome - Benefits:Different meeting places for different needs Access to all meeting room
and to book the services in one place (time)Standardised meeting rooms Access to support for all
Service outcome - Emotions:Functional Comfortable Reliable Easy to use
Service outcome - Values: You know what you get (standard) Less time consumingEasy access to rooms and servicesRefreshments available every where if
wanted
Tasks included in service concept:
Initiatives needed to implement Service Concept: Identity need for meeting facilities (number, size, equipment, etc.)Clarification of roles and responsibilities
–Development–Operation
Get mandate outside GSS to take chargeEstablish dialogue forum (e.g. Users, HR, IT, etc)
6 6
Input to target service concept definition
Approach to ensure innovation: Top-down from GSS unit guiding
service principles and vision Bottom-up from AS-IS services Taking input from users and
internal partners Taking input from best practices
and benchmarks
7
The Top-down approach
Overall vision: “Great European bank, acknowledged for its people, creating superior value for customers and shareholders”
Group Operations vision: “Becoming customer centric through innovation and productivity improvement”
GSS vision: “We make it possible for our partners to concentrate on their core business”
GSS Guiding principles:• One GSS – no silos• Demand driven• Competent and service minded• Time to market
GSS Vision & Principles
Nordea and BP&GO Visions,
Target picturesand initiatives
Unit Interpretation Target
Picture2013
GSSEM
Given
To-Be Service concepts and KPIs
Core deliveriesand team targets
Units / L3 & L4
Managers
All GSS employees
Nordea
BP&GO
GSS Vision & PrinciplesGSS Vision & Principles
Nordea and BP&GO Visions,
Target picturesand initiatives
Unit Interpretation Target
Picture2013
GSSEM
Given
To-Be Service concepts and KPIs
Core deliveriesand team targets
Units / L3 & L4
Managers
All GSS employees
Nordea
BP&GO
8
The Bottom-up approach
All GSS employees participated via team-meetings to:
• Describe As-Is situation
• Set team targets
• Suggest improvement Templates and facilitation was provided from project team
9
Input from Users/internal partners
Team leaders and managers were encouraged to collect input from their “customers”
This was not coordinated/supported further by the project team
10
Benchmarks/best practices
Team leaders and managers were encouraged to investigate benchmarks and best practices from the industry
Project team provided inspiration, e.g. value disciplines:
• Operational excellence• Streamlined processes• Cheapest price for specific quality• Example: Ikea
• Product leadership• Product development• Bleeding edge products, little price
sensitivity• Example: Apple computer, Pixar
• Customer intimacy• Customer interaction• Tailor made solutions• Example: Consultancy
11
The Result
About 20 service concepts About 50 projects organised in 10 initiatives Example service concept and resulting project:
Employee Lifecycle Management: • Previously, a manager needed to contact 20+ units to
get a new employee started (access cards, mobile, desk, PC, welcome flowers, …)Service concept goal: one interface
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The IT-strategy pitfall
Each unit may have thought through their IT requirements. But an apparently well-aligned Business- and IT-strategy may in reality be a collection of individual functional strategies with no coordinated prioritisation
Source: CSC Perspectives – Business and I/T fusion14
GSS business strategies and priorities
Thus, from the business side the GSS IT strategy takes input from:
GSS vision and Guiding Principles
GSS Target Picture 2013 Service Concepts
GSS Target Picture Initiatives (business development projects)
The GSS IT strategy is driven by the GSS business strategy as defined by the GSS Target Picture 2013 and its derived business development initiatives
15
IT-Strategy tools - Fusion Tree (strategic view partly filled in)
One GSS – no silos
Service concepts
Required Business
Capabilities
We help our
partners concentrate on their
core business
Travel
Required ITCapabilities Technology/
Architecture
Applications
Organisation
Strategic ViewLeft-to-Right
As-Is IT ViewRight-to-Left
Application Quality
Missing
Good
Fair
Poor
Demand driven
Competent & service
mnd
Time to market
Guiding service
principles
Archive
Physical deliveries
Switchboard
Catering
Buy and payment
Meeting facill &
hospitality
GSS SPOC
…
Vison
16
IT-Strategy tools - Application portfolio assessment matrix
4R Model
LOW
LOW
Tech
nic
al C
on
dit
ion
Business Value
Reassess
Can we increase business value?
Renew
How to maintain this condition?
Retire
Don’t Bother
Redevelop
What is the most cost-effective approach ?Low
Low High
High
Source: CSC Perspectives – Business and I/T fusion17
Value discipline
Type IT impact
Operational excellence
Best total cost
Standardized, efficient, cost-effective systems
Product leadership
Best product Creative use of technology to accelerate and support product development efforts, while other functions are treated as secondary processes requiring limited IT investment
Customer intimacy
Best total solution
Flexible but simple, standardised IT applications that can be reconfigured to meet individual customer needs
Alignment of the IT operating model with the enterprise’s value discipline is key to effectively exploiting the power of information technology
IT-Strategy tools- Value disciplines impact on IT
18
New Normal Cost Reduction (NNCR) 2013 initiative - Objectives
• Identify significant Group-wide cost reductions with full impact in 2013, by end of March 2012.
• Cost reductions must be on top of reductions included in Q4.2011 RFF, and each Business Area & Group Function (BA/GF) includes the additional cost reductions in their RFF as part of the Q1.2012 RFF process.
20
A non-compensation cost baseline constituted a fact-based guide for discussions
B1
B2
B3
B4
Utilities
Rent
Repair & Maintenance
Other3
Total 2010Other expenses1
PremisesB
1,906EURm
X
X
X
X
D1
D2
D3
D4
D6
D5
IT consultants
Production,NP (IBM)
Production, Other
Software
Other4
Communication
ITD
763EURm308EURm
A1
A2
A3
A4
A7
A6
A5 Security
Postal services
Office material & expenses
Cleaning
Newspapers & Literature
Waste handling2
Catering
Facility services
A
193EURm
E1
E2
E3
E4
E5
E7
E6
E8
Information systems
Advertising & Marketing
Meetings & Events
Membership fees
Sponsorship
Market research
Other6
Gifts & Donations
Marketing & Information
E
233EURm
Other admin, Hypotek Sweden
F1
F2
F3
F4
F5
F7
F6
F8
F9
Temporary employees
Business & Project cons.
Collection & Collateral
Insurance
Auditing & accounting
Financialsupervision7
Transportation of cash
Other admin8
Legal advice
Professional services
F
F10
278EURm
C1
C2
C3
Training & Conferences
Travel
Leased cars
Personnel services & ben.
C
C4 Other5
131EURm
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
21
Scope and structure of NNCR discussions
All non-FTE costs are in scope:
• BA costs that are managed by GO
• Direct BA costs
GO managed costs
Direct BA costs
IT
1 2
Premises
Facility Services
1
2
Marketing & Information
Professional Services
Discussion structured around a number of
defined cost categories
Personnel Services & Benefits
A
B
C
D
E
F
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Parameter Description Low Medium High
Savings potential
Preliminary estimate of savings potential for 2013 run-rate, understanding cost base,
flexibility and savings potential Below 1 EURm 1-10 EURm Above 10 EURm
Level of investment required
Level of financial investments or resources required to implement the change
Large investments (>5 EURm) and/or man-hour
resources (>1000)
Medium investments(<5 EURm) and/or man-hour
resources (<1000)
Small investments(<500 EURk) and/or man-hour
resources (<100)
1
Skills and competencies
required
Required competencies and skill set present in the organisation to execute the change
No internal competences to execute the project available
Some internal competences to execute project available
All internal competences to execute project available
Time to impactExpected time frame from decision to pursue
initiative till savings is realized and recognized in P&L 12+ months 6-12 months 1-6 months
Stakeholder complexity
The amount of people involved from different departments
Many stakeholders involved from different organisational
units
Some stakeholders involved from few different parts of
the organisation
Few stakeholders involved within same organisational
unit
Transparency on cost and driver
The extend to which the costs and cost drivers can be easily understood by the
'receiving business area', i.e. actual transparency in cost category
Limited visibility into the costs and drivers of those
Some visibility into the costs and drivers of those
High visibility into the costs and drivers of those
Transparency on consequence and
complexity
The extend to which the consequence and complexity of implementing potential
solutions within a cost category is well understood
Limited transparency to the consequences and
complexity
Some transparency to the consequences and
complexity
High transparency to the consequences and
complexity
Assessment framework based on 7 parameters
Attractiveness score for each parameterAttractiveness score for each parameter
If possible, actual savings potential range – if not then;
If possible, actual time at which project is complete
If possible,, investments required – if not then;
1. Savings potential defined as 2013 actual earning impact
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• Collect user requirements and suggestions (interviews)
• Develop gross list of potential savings scenarios
• Assess saving scenarios on• Impact• Investment• Timing
Detailed idea-to-business-case process for each ideaOverview of key objectives, activities and deliverables
January 17(Latest)
End of February(Latest)
March 10
• Ensure team alignment on idea scope, ambition and key activities
• To establish a detailed overview of spend and cost drivers
• Substantiate preliminary savings estimates
• To analyze possible solutions and estimate savings potential of those solutions
• To ensure buy-in fromall relevant stakeholdersand formal approval from sponsors
• Prioritize list of opportunities/scenarios
• Draft High level Business Case
• To identify and prioritize ideas for which to completea high level business plan
• Set team for chosen projects
• Consolidate all approved initiatives and prepare GEM presentation
Ob
ject
ives
• Confirm required resources have been allocated to team
• Prepare and conductkick-off workshop with project team
• Detailed planning of key activities for solution development phase
• Establish data requirements to create transparency and send data request
• Analyze relevant cost categories to identify• Cost receivers/users• Primary cost drivers
• Meeting to understand base line and relevant drivers
When relevant• Conduct supply market
analysis• Collect and review
contracts• Conduct internal
benchmarks
• Further substantiate the quantification of savings potential by BA
• Conduct prioritisation workshop and decide on most feasible solution
• Determine RFF implications for relevant BAs
• Write High-Level Business Case
• Conduct approval meeting with all decision making stakeholders
• Implement final iterations to business case
• Outlining cost structure through spend cube
• Idea generation workshops to identify potential ideas
• Preliminary deep dives in relevant cost categories
• Evaluate Nordea performance via external BCG benchmarks
• Workshop with key stakeholders to evaluate gross list of ideas
Act
ivit
ies
• Final High-level Business Case
• Activity plan for solution development phase
• Detailed fact base incl. types, receivers, and drivers of costs.
Validated idea assessment including target cost savings split per impacted BA
• Gross list of savings scenarios assessed on impact, investment and timing
• Idea assessment • Team structure and
governance• Description• Idea attractiveness
• GEM presentation of recommended savings initiatives
6
Key
Del
iver
able
s
Key deliverable(see next page)
x
• Task Force to consolidate portfolio of business cases into final proposal for GEM
• Task Force to drive preparation of GEM update materials• Alignment
process with BAs and within Task Force
• Receive sign-off of GEM update materials by Torsten H. Jorgensen
1 2 3 4
Consoli-dationTransparency and
fact base (as-is)Substantiate and
prioritise
Mobilise
Solution development
Teaming and Planning
Decide and Approve
Proposal generation
2 weeks 3 weeks 1 weekEach idea
A B C
• Draft High Level Business Case
5
Dea
dli
ne January 17
(Latest)
January 24(Latest)
January 31(Latest)
February 8(Latest)
February 15(Latest)
February29(Latest)
Deliverable to be sent to Task Force mailbox (costideas@nordea.com) at noon on delivery date – Signed off by Sponsor
A1
A2
A3
A4
A5
A6
B1
B2
B3
B4
B5
B6
B7
C1
C2
24
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