information technology strategy for global microfinance...
TRANSCRIPT
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Information Technology Strategy for Global Microfinance Company Alexei Chirokikh
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Agenda
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• Vision
• Principles
• Architecture
• People, Processes, Technology
• Key initiatives and projects
• Next steps
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FINCA’s fundamentals of digital transformation:
Embracing speed and agility
Key questions to be addressed:
What drives FINCA to undergo digital
transformation
How to innovate faster with low-code and no-
coding technologies
How technologies and future organization
evolution can fuel digital transformation
initiatives
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Customer experience at the heart of dynamic
business processes
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Global CIOs spend 18% of their budgets in support of
digitalization and analysts expect budgets for digital
transformation to increase to 28% in the next two years
of those responsible for digital transformation cite
“evolving customer behaviors and preferences” as their
primary catalyst
of businesses assess the impact of digital in relation to
customer experience
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Digital transformation has become one of the most
viable strategies to accelerate business activities,
processes, business growth
Customer experience, business agility and operational efficiency are the primary goals that drive organizations to undergo digital transformation
According to the Economist Intelligence Unit (EIU), 77 % of businesses state that digital transformation is their first strategic priority.
Digital transformation requires modern organizations to be both bold and agile in order to keep up with the pace of the evolving landscape.
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Gaining agility to adapt to shift in business
environment
To focus on FINCA’s capabilities to quickly respond, change direction, be flexible and achieve a competitive advantage as opportunities develop, customer needs evolve and market dynamics change
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71 % 50 % 44 %
of businesses saw a
faster response to
changing market
conditions as the main
benefit of organizational
agility.
of the surveyed
businesses reported
significant improvements
in the customer
satisfaction.
of the surveyed
businesses became
more profitable after
shifting to agile
processes.
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Digital Trust as the future of FINCA banking
services
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Core components of future FINCA ICT digital
delivery platform
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Global Project
Management
Common Cloud
Services
Global Corporate
Technologies
Unified Architecture
Platform
Regional Core Banking
Services
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Core Banking Strategy 2017 - 2018
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EURASIA:
- Kyrgyzstan is in process of replacing Flexcube with Online Bank, local CBS; planning to go live with new system in
September 4, 2017.
- Vendor selection process is in its final phase in Russia; A-Data – the local Microfinance System was nominated by
selection team.
- Kosovo – planning to start CBS selection process.
- Azerbaijan and Tajikistan will remain on Flexcube. Decision on starting new CBS selection is expected in 2018.
- Armenia and Georgia have no plans to replace their current CBSs.
MESA:
- Replacement of CBS systems is planned in all MESA Subsidiaries.
- FNCA Pakistan - is in final phase of vendor selection process; AutoBanker (by Autosoft Dynamics) – the local CBS
was nominated by selection team.
- FINCA Jordan and FINCA Afghanistan – in the middle of vendor evaluation activity. The decision is expected by Q4
of 2017.
AFRICA:
- Orbit-R remains a regionally selected CBS platform. Subsidiaries on earlier version (Uganda, DRC) have already
upgraded to the latest version.
- Orbit-R will replace FlexCube in Zambia (Q4 2017) and Nigeria (Q2 2018)
LAC:
- Replacement of existing CBSs in regional subsidiaries (SIEM and Cobis) is not considered a priority for years 2017
and 2018. The decision on starting the software selection process will be made considering the actual demand and
budget restrictions in the region.
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IT infrastructure and future data center strategy
2017-2018
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Data centers:
o Ashburn, VA – USA
o Flexcube for Zambia, Nigeria DR, EDW, Costpoint, LMS, Service Desk, Active Directory and more
o Mexico Flexcube in process of being decommissioned
o Frankfurt – Germany
o Flexcube for Russia, Azerbaijan, Tajikistan, Kyrgyzstan
o Closure of Frankfurt delayed due to location restrictions by Russian law.
o Only Flexcube workloads remain in Frankfurt. Once migrated to new core banking system, we can shutdown.
Cloud:
o Amazon Web Services in Frankfurt and VA
o Validata Social Performance Metrics, test deployment of Zambia’s new core banking system, offsite backups.
Transformation objective:
o Focus on our core competencies
o Shutdown both data centers and migrated non-Flexcube workloads to Cloud by Q4 2018.
o Technology efficiencies to be gained
o Dependency: timely exit of Flexcube
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Global IT management framework will focus on
quality and delivery efficiency of ICT solutions
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• Steering IT Committee reviews and approves overall strategy, budget, and implementation timeline/priorities
• Global IT leadership team responds with IT strategy, budget and implementation plans down to the country level under coordination of Office of CTO/Global Project management team
• Office of Global CTO oversees and monitors implementation, budget performance, analyzes variances and adjusts timelines as needed
• MT sets global and regional business strategy
• Subsidiary boards tailor global business strategy to subsidiary Global IT
Strategy
FI
Business
Strategy
IT delivery
channels Steering IT
Committee
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Future state of FINCA ICT network
Heavy focus on providing best customer experience
Focus on core competencies
Standardization
Business alignment
Operational excellence and simplification while delivering more value
Cost effective and efficient / LEAN
Corporate innovation
Proper talent / proper work life balance / employee retention
High performing culture
Competitive advantage Increase revenue through acquisition of
new customers as well as offering more services to existing customers
Customer retention Highly proactive IT department IT is strategic business partner / enabler
for ALL departments - not just support Continuous improvement culture Proper security / compliance / backups /
DR / business continuity Business Intelligence / near real time
metrics Make work visible / develop agile
culture / make iterative progress while staying inline with vision and goals
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A few key principles
Make incremental progress one major initiative at a time.
Lock down current initiatives unless it relates to keeping lights on, or if there is no choice to delay.
Form proper team and drive progress based on dependencies.
Parallel execution only if there is no dependency between them.
Get things done before moving forward.
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Migration applications from data centers to cloud
provider will be a priority for 2H2017–1H2018
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Ashburn, VA USA (Zayo) Frankfurt, Germany (Interxion)
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Snapshot of Ashburn DC
allocation
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Enterprise
Data Warehouse
POS Terminal
Management
System
(Africa)
• Zambia
• Nigeria (DR)
Servers for FINCA GE (non-flexcube)
Including ADFS and CA services
Servers for Security Team
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Snapshot of Frankfurt DC allocation
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• Azerbaijan
• Kyrgyzstan
• Russia
• Tajikistan
• Flexcube team support environments
Kosovo non-FC application
Servers for Security Team
TEST Servers
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Current process of Ashburn to AWS
migration
Key assumption is Flexcube will have full exit from Ashburn by June 2018.
o Remaining systems (non-Flexcube) to be migrated to AWS:
• * EDW – Enterprise Data Warehouse
• AML – Anti-money Laundering
• TMS – Terminal Management System (AFRICA)
• * Deltek Costpoint (HQ)
• Servers for Security
• Active Directory and ADFS servers
• * Service Desk
• * Moodle Learning Management System
• Servers for FINCA Georgia: these are temporary until March 2018
• Servers for Kosovo
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* = Candidates for SaaS alternative
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Poor trust or even worse, a breach of trust can quickly lead to
customer churn, low adoption and brand erosion, which can
permanently harm FINCA business
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FINCA employees
FINCA partners
FINCA products
FINCA products ‘83% of banks see providing a customer
experience tailored to the individual as key to
gaining a competitive advantage.’
THE AGILITY TRAP RESEARCH REPORT, 2016
Do we not need to
include more on
information security?
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Complex architecture causes difficulty in explanation
and justification for future IT evolution and development
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Systems Management View
Security View
Operational View
Integration
View
User /
Information
View
Content Management View
Data View
Business View
How do we integrate with
external systems and
databases?
What types of content, how is
it maintained, published, and
distributed?
How do you manage
and administer the
infrastructure and the
application?
What information needs to be
made available, to whom,
and how?
What infrastructure do we
need to provide the required
Service levels?
What are the security and
privacy requirements for the
infrastructure and
applications?
What processes,
information, roles and
locations must be
addressed?
Functional
View
What are the data elements,
where stored, and how are
they accessed?
One architectural principle of right architecture is to build a “loosely coupled” architecture
How do applications
support the required
functionality?
Right architecture allows to make changes to the architecture without creating a “ripple effect”
through the enterprise.
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Component business model for financial
organization
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Decomposition of FI functional model as a part of IT
strategy
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A Working definition of Cloud Computing
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.
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5 Essential Cloud Characteristics
On-demand self-service
Broad network access
Resource pooling
• Location independence
Rapid elasticity
Measured service
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3 Cloud Service Models
Cloud Software as a Service (SaaS) • Use provider’s applications over a network
Cloud Platform as a Service (PaaS) • Deploy customer-created applications to a cloud
Cloud Infrastructure as a Service (IaaS) • Rent processing, storage, network capacity, and other
fundamental computing resources
To be considered “cloud” they must be deployed on top of cloud infrastructure that has the key characteristics
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The real value of cloud architecture comes in the form of agility,
decreased time to market, accelerated innovation, richer user
experiences, and inherently cloud-centric business models
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The adoption of cloud systems has significantly improved
collaboration, business agility/flexibility and created better
internal user end customer experiences, and innovate
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IT governance is a formal framework that provides
a structure for organizations to ensure that IT
investments support business objectives
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Compliance with regulations
Competitive advantage
Support of enterprise goals
Growth and innovation
Increase in intangible assets
Reduction of risk
Set Objectives
v IT is aligned with the business
v IT enables the business and
maximizes benefits
v IT resources are used responsibly
v IT-related risks managed
appropriately
Provide
Direction
Compare
Measure
Performance
IT Activities
v Increase automation (make the
business effective)
v Decrease cost (make enterprise
efficient)
v Manage risks (security reliability
and compliance)
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Current state of IT in modern
organization
o Improve business processes
o Increase of IT performance in company
o Deliver new products and services
o Increase of client service level and loyalty
o Grow client base
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Future state of FINCA ICT network
Heavy focus on providing best customer experience
Focus on core competencies
Standardization
Business alignment
Operational excellence and simplification while delivering more value
Cost effective and efficient / LEAN
Corporate innovation
Proper talent / proper work life balance / employee retention
High performing culture
Competitive advantage Increase revenue through acquisition of
new customers as well as offering more services to existing customers
Customer retention Highly proactive IT department IT is strategic business partner / enabler
for ALL departments - not just support Continuous improvement culture Proper security / compliance / backups /
DR / business continuity Business Intelligence / near real time
metrics Make work visible / develop agile
culture / make iterative progress while staying inline with vision and goals
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Future directions in FINCA global ICT
strategy
Mobilization
Digitization
Paper-less organization
Adoption of cloud architecture and platforms
Big data and advanced analytics/data visualization
Collaborative agile development and streamlined software development life cycle (SDLC) for regional core banking system (CBS)
FINCA Global Enterprise Architecture development and future perspective technologies for FINCA and its clients – blockchain, fintech collaboration, innovation hub
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A few key principles
Make incremental progress one major initiative at a time.
Lock down current initiatives unless it relates to keeping lights on, or if there is no choice to delay.
Form proper team and drive progress based on dependencies.
Parallel execution only if there is no dependency between them.
Get things done before moving forward.
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What are the key gaps
we currently have in
staffing? What projects
do we stop now, which
ones do we prioritize?
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Thank you
Strategy is important but execution is the king!!!
Larry Bossidy
“Execution: The Discipline of Getting Things Done “
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