Manage ICT as a businessConstantin Mareş, ICT Director

12th April 2005

2

Agenda• ING…• What is process management?• Why process management?• Lessons learned

3

• ING Romania is part of ING Group• Financial institution of Dutch origin• Offering banking, insurance and asset

management services • 60 countries and about 112,000 employees.

4

• ING Romania covers 63 cities through its bank branches and insurance agencies

• Employs 800 full-time staff, also benefiting from a network of 2,000 insurance consultants.

• In 2004, ING celebrated 10 years of presence on the Romanian market, being the first international bank to open a branch after 1989.

5

IT services• 800 employees• 2000 tied agents• 3 business units• From Information planning to building and maintenance of systems

• From Account management to exploitation• Full lifecycle development

6

What is a process?• Processes were originally created as tasks for people to

perform. • People managed the process flow, the rules and the

services

• Later, automated processes replaced human ones —knowledge was encoded into the systems doing the work

7

What is Process management?• Where does work start and finish?• What tasks/decisions need to be monitored and

managed?• What business events advance the flow of work?• How does business want to measure process

improvement?• At which tasks/decision points is change most

likely to happen? How often?

8

Integrating Processes to Achieve OperationalExcellence

Time is

money

Reduce latency/

Streamline the process

Straight-through

processing

Time to marketReduce complexity/

Lower the learning curve

Call center

operations

Sourcing

options

Balance resources

to workload

Workforce

utilization

Cost controlReduce error rates

Six Sigma

program

Lost or redundant

workClose gaps at handoffs

Process

integration

Process Improvement

Objective Business Alignment Value Metric

9

Why Adapt?• Markets are changing more rapidly and in less

predictable ways• With rapid change, the predilection of human beings

is to “go tactical”• Tactical solutions to strategic change is a

characteristic of endangered or extinct species!

Operational:

Paddle the board

Tactical:

Catch the wave

Strategic:

Don’t surf with sharks

10

Why to adapt (2)• Business decisions impacted by:

CEO — “Growth and revenue” CFO — “Continue to cut costs”

• Business decisions impacted by: Shorter economic cycles Increased competition Globalization, M&A Push for information transparency and security

• Desire to become “real time,” “adaptive,” “on demand” enterprise• Regulatory requirements

IT organizations under enormous pressure! Seen as an Achilles’ heel or a white knight?

11

Why to adapt (3)?“80% of IT organizations are experiencing IT

operational issues as a result of poor or nonexistent process formalization (e.g., resource allocation issues, poor process integration, difficulty in effectively prioritizing work efforts, organizational structuring issues, insufficient metrics to show process effectiveness/ governance).”

META PracticeCopyright © 2004 META Group, Inc. All rights reserved.1 October 2004

12

Bottom Line• We develop great systems for our customers; yet, if we

look at our tools to manage our processes, we’re not wearing any shoes

• Spend more time on establishing goals for business adaptability (where, how much?) than on technology selection

• Given the immaturity of the BPMS technology market, think strategically yet buy tactically• Focus on good SOA design, extensible XML, multilayered models, process

analytics, performance incentives, and exposing rules• Recognize this is not the last tool you will buy for process design, development,

deployment, and enhancement• Pick a project that crosses at least 3 boundaries — an application boundary, a

people boundary, and an information boundary

13

Success factors

• Sense of urgency• Management commitment: T, €, E• Mission, vision, strategy and goals are clearly

stated• Clear focus on priorities • Integrated & balanced approach of transforming

(processes, people, culture)• Facilitate and stimulate search for synergy and

co-operation(though organisation, funding and reward)

• Change is completing many small steps successfully

14

Specific Pitfalls & Lessons

• Process Improvement is not a ‘sprint’ but a ‘marathon’

• Process Improvement is only a matter for the ‘staff’

• Quick wins increase the acceptance

• Line-management in the driver-seat

• Focus on both practical and behavioural issues

• Don’t forget the Cultural change

15

Results

• 90% of the projects on time and within budget (10% margin)

• Cost reduction • Facilitation of in and outsourcing• No projects cancelled during the runtime

Major contribution to the overall result:

In 5 years an 80% increase in number of transactions with half the number of employees and a 50% reduction of price.

16

Thank you for you attention !

17

Q & A