risk and challenges - it project management in banking industry

RISK & CHALLENGES: IT Project Management in Banking Industry by Crysanthus Raharjo, PMP

Vice President - Head of PMO and Senior IT Project Manager at PT. Anabatic Technologies, Tbk

8 years in IT Project Management especially in

Software Development and Implementation in Express and Banking industries

PMP Certified since 2013

Project Manager of International Symposium & Exhibition (SymEx) PMI Indonesia Chapter – 2016

3 years as member of Board Education at PMI Indonesia Chapter


Introduction to IT in Banking Industry

IT Risks & Challenges

IT Project Management


01 Introduction to

IT in Banking Industry


Top banks in Indonesia have

planned a big IT budget for

2016 in order to give good

customer experiences or

provide new features to their customer including

replacements for the old

technology equipment.

$150 Mio BCA

$150 Mio

CIMB Niaga

$110 Mio BNI

$100 Mio

Mandiri

Source: “Bank siapkan belanja teknologi informasi”. Kontan, December 01, 2015.


Operational Risks Risks that occur because insufficient system implementation methods, testing methods,

inadequate systems or equipment maintenance or security system methods, lack of

system monitoring and auditing, including the use of 3rd party vendor in IT

Compliance Risks Risks may arise if the Bank’s system can’t ensure the compliance with the Bank regulatory

such as customer data confidentiality.

Reputational Risks These risks will take place once the bank receives negative public opinion as the result of

the Bank’ system that can’t support bank’s product and services or incapable of giving

customer’s full support when the systems are down.

Strategic Risks The risk that arises because the incompatibility of existing IT Bank systems with the bank

strategic objectives and plan.


Source: “Banks to Spend More on Tech in 2016-Especially Security”. American Banker, Oct 15,2015.


Big Data & Data Analytics


Master Data Management


IT Risks &

Challenges


Based on Project Management Body of Knowledge (PMBOK)

Guide 5th Edition:

“an uncertain event or condition that, if it occurs, has a

positive or negative effect on a project's objectives”


•Unclear requirements & user expectations

•Scope dependencies are inaccurate

•Scope creep

•Gold plating

Scope

•Incorrect of time activity estimates resulting in inaccurate schedule

Time

•Cost forecast are inaccurate as the result of poor time management

Cost


•Team misunderstood the requirements

•Unclear communication channels

Communication

•Lack of hard skills and soft skills from IT resources especially with newer technologies

•Resources shortfalls & turnover

Resource

•New Technology training is inadequate

•Technology are not inline with the requirements

Technology


• Changes Prioritization

• Lack of executives support

• Executives conflict of interest

• Authority is unclear

Support

• Application fails to integrate with new or legacy systems.

Integration


CHANGE MANAGEMENT

Uncontrolled changes

TIME

Unrealistic schedule or deadlines

RESOURCES

Resources deprivation resulting low team motivation

COMMUNICATION

Little or no end user involvements

Poor communication with stakeholders especially IT & business users

TECHNOLOGY

Legacy Systems and Infrastructure Issues


In order to maintain the business continuity especially bank core

applications where the application is written by 3rd party, it’s highly

suggested by Bank Indonesia that bank need to make written

escrow agreement.


IT PM in Banking Industry


INITIATING

• Identifying business needs

• Creating a Project Charter

• Formal authorization to start project

• Articulate the high-level project scope, deliverables, duration, cost, assumption and constrain etc.

• Identify stakeholder and create register

PLANNING

• Business Requirement Gathering

• Break down work and create WBS

• Select and define project team roles

• Develop project Schedule

• Determine Budget and Quality Standards

• Identify risks and create risk response plan

EXECUTING

• Complete work packages

• Perform QA

• Acquire and develop project team

• Organize team building activities

• Vendor solicitation and selection

• Implement approved changes and defect repair.

• Project meetings and creating status reports

MONITORING & CONTROLLING

• Measure against performance baseline

• Recommend preventive/corrective actions

• Ensuring Quality Control

• Implementing change control

• Controlling key parameters like cost, schedule and scope

• Identify root cause

• Conflict Resolution

CLOSING

• Obtain acceptance by the customer or sponsor to formally closing the project.

• Complete contract closure

• Update lesson learned database

• Archiving project records in the PMIS

• Perform team member’s assessments and release project resources


INITIATING

• Proof of Technology (POT)

• Proof of Concept (POC)

• Request For Proposal (RFP)

• Request For Quotation (RFQ)

• Project Kick Off Meeting

ANALYSIS & DESIGN

• Business Requirement Gathering

DEVELOPMENT

• Executing the project based on the document

• Unit Testing

TESTING

• System Integration Test

• User Acceptance Test (UAT)

• Security Test

• Performance Test

• Operation Readiness Test (ORT)

DEPLOYMENT

• Training

• Production Environment preparation

• Go Live

• Production Verification Test (PVT)

• Post Implementation Review (PIR)


INITIATING

•RFP Answer Sheet

•Purchase Order or SPK

•Project Charter

ANALYSIS & DESIGN

•Functional Specification Document (FSD)

•Technical Specification Document (TSD)

•Gap Analysis Document

•Requirement Traceability Matrix

•Change Request Documents

TESTING

•Unit Testing Plan & Script

•SIT Plan & Script

•UAT Plan & Script

•Performance Test Script

•ORT Plan & Script

DEPLOYMENT

•TTT Documents

•User Training Documents

•Implementation/ Deployment Plan

•Security Access Matrix

•PVT Documents

•PIR Documents

•Lesson Learned


There are many implementation models in implementing IT

projects:

Predictive Life Cycle such as Waterfall model or V-model

Iterative and Incremental Life Cycle such as Iterative model

Adaptive Life Cycle such as Agile model


Requirements Analysis

Design & Architecture

Development & Coding

Testing & QA

Implementation

Maintenance & Support


Deployment Iteration N Iteration 2 Iteration 1 Initiate Project

Requirements

Design

Development

Testing

Implementation

Requirements

Design

Development

Testing

Implementation

Requirements

Design

Development

Testing

Implementation


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risk and challenges - it project management in banking industry

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