The Approach to Transformation

Transformation involves ENTERPRISE CHANGE

Transform business process along with technology architecture One enables the other; either alone is not sufficient Directed requirements with a Vendor Partner No paving the cow path Think and do differently Resources may need to change Mainframe programmers vs. configurators Business and IT become strategic partners Interface approach is highly important ESB or Point-to-Point Play nice in the sandbox for ease of today and future

The Need to Focus on Change Management

Initiatives often fail because firms typically ignore, misjudge the importance of, and underfund these areas: Business Process Redesign
Align business processes with application workflows Build consensus around future state requirements and approach to bridging gaps between current and future states Implement post-launch support processes

User Adoption Management

Involve members of key stakeholder groups developing the solution Convey key information to all stakeholders throughout project lifecycle Provide appropriate and customized training to all user groups Track adoption rates against plan and address plan deviations

Application Usability
Understand application requirements of each user group Ensuring application ease-of-use (simplified navigation, clean interfaces etc.) leads to:
Increased user efficiency Reduced user error rates Fewer help desk calls resulting in lower support costs Lower rates of application abandonment

Implementation Path
Strategy Review & Planning Analysis and Design Design Elaboration Development & Integration Deploy / Migrate& Sunset
Conduct Training (UAT) Institute Change Management Hardware Deployment

Run Platform
User Feedback And Improvement Assessment

Design Architectural Validate Alignment Of Finalize Functional Blueprint & Determine Customize Any Tech Vision To Requirements Technology Package Solutions Business Strategy Components

Current State Finalize Technology Technology Review Requirements Develop Future State Conduct RFI Process Strawman Establish Roadmap Evaluate RFI's & For Change Select Vendor(s) Finalize Vendor/3rd Establish PMO Party Contracts Develop Business Business Case Requirements Transformation Documents
Identify Use Cases & Feedback Gathering Use Case Model Development of Use Cases & Use Case Library Develop Risk Management Plan Develop Implementation Plan

Define Integration Strategy Data Readiness Analysis Develop Design Specifications

Develop Non functional Requirements

Operational Support (e.g. Help Desk, etc.) Ongoing User Training Application Integrate Components Software Deployment Management Decommissioning Of Infrastructure Iterative Testing Legacy Applications Management Adoption Program
QA Testing - Full System And Integration Testing

Build New Application Code Application/Systems Development

Solution Roll-Out/GoNetwork Management Live

Program Management, Communications Management, Organizational Redesign and Change Management

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Transformation: Go-Forward vs. Conversion

Modern, Go-Forward Strategic System

Conversion of Old Data & Decommission of Legacy Systems

Transformation: Go-Forward vs. Conversion Separating the decision into their unique problem sets
Conversion of Old Data & Decommission of Legacy Systems

Modern, Go-Forward Strategic System

New New New New

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product distribution risk profile regulations

BPO Run-off Sell Blocks Portfolio rationalization

Transformation Process
Steps
1. Increase urgency 2. Build the Guiding Team

Transformation Suggestions
Examine market and competitive realities Identify and discuss crisis, potential crisis, or major opportunities Provide evidence from outside the organization that change is necessary Assemble a group with enough power to lead the change effort Attract key change leaders by showing enthusiasm and commitment Encourage the group to work together as a team Create a vision to help direct the change effort Develop strategies for achieving that vision Use every vehicle possible to communicate the new vision and strategies Keep communication simple and heartfelt Teach new behaviors by the example of the guiding coalition Get rid of obstacles to the change Change systems or structures that seriously undermine the vision Encourage risk-taking and non-traditional ideas, activities, and actions Plan for visible performance improvements Create those improvements Recognize and reward personnel involved in the improvements Plan for visible performance improvements Create those improvements Recognize and reward personnel involved in the improvements Articulate the connections between the new behaviors and corporate success Develop the means to ensure leadership development and succession

3. Get the Vision Right

4. Communicate for Buy-in 5. Empowering Action 6. Create short term wins 7. Do Not Let Up 8. Make Change Stick

Adapted from Transformation Process by John Kotter

CONFIDENTIAL

Risk Mitigation Strategy

Risks
MARKET RISK Economic downturn and stock market losses INNOVATION A new product or service will catch fire making traditional SMA market less relevant TECHNOLOGY Decision on technology stack & architecture approach H M

Prob.

Impact

Mitigation Strategy
Solid institution with a sound financial base and long-term vision. Keeping an eye on costs and making sure IT investment decisions either provide a revenue boost or reduce costs is essential We are already aware of the growth and evolution of the market and we are getting prepared with a third party platform strategy. It is unlikely that a new product will make core business less relevant.

SOA has evolved over the years and has proven to be a reliable approach to improving enterprise agility. Both Dot Net and J2EE are stable and sound platforms. Keeping abreast of latest technology trends and adopting a cautious approach to mission critical technologies will help minimize the risk
Objective vendor evaluation criteria and sticking to well capitalized vendors with a blue chip client list will help mitigate this risk

APPLICATION VENDOR A vendor product may not find favor in the market place MANAGEMENT BUY IN
Management support may wane if there are hurdles along the way BUDGETING Time and cost overruns PROGRAM/PROJECT MGMT. Complexity of managing multiple projects IT SERVICES PARTNER IT services partner(s) may not meet PIM's requirements and may fall short in delivery OUTSOURCING PROVIDER Outsourcing provider (a la State Street) may not meet PIM needs /requirements RESOURCES PIM associates may not possess all the skills & competencies required for a major transformation project 8

Business and management are an integral part of the re-architecture strategy and planning process and continuing to involve business in key decisions will pretty much eliminate the risk
Good estimates that are realistic and adherence to strict process controls will help alleviate some of this risk A clear mandate, well defined charter and effective governance will help a great deal

Thorough evaluation of partner capabilities and a partnering approach (instead of staff augmentation approach) will help mitigate the risk Clearly defining processes, setting clear expectations, and ensuring smooth transition will reduce the oversight burden

Selective staff augmentation, leveraging partner and consulting resources will help in having an effective variable staffing model without increasing the headcount

CONFIDENTIAL