Case Study Analysis - North America Financial
Mini Case
IT Investment at North American Financial
Introduction:
Stakeholders:
* CEO: Bill Harris * CIO: Caroline Weese * CFO: Matt Harper * Senior IT Infrastructure: Brenda Liu. * VP of Business Banking Product Management: Cathy Benson * Director of Financial Strategy: Michael Cranston * Director of Risk and Compliance: Ian Ha * Head of Retail Banking: Sam Patel
Issues:
1) Inconsistent alignment in IT budgeting and Enterprise strategies: * Business Strategies & IT goals change rapidly, * IT strategies do not link to budgets * IT resources is allocated according to size of business dept *** Business Impact: * Rigid budget process => IT struggling to keep up with the resources (refer to Budgeting and IT strategies) * extremely difficult to allocate resources strategically
2) IT budgeting and implementation based on business functional silos * Lack of involvement of executive in implementation of business strategies in lower business dept. * Project approvals and implementation were made by business unit w/o cross-unit synergies * Create system duplication (exp: 18 diff project for anti-money laundering) * New system = new interface, data, dependencies * Didn’t explain the benefits of reducing duplication & simplification. *** Business Impact * Most of IT spending 60% is on maintaining existing systems, 20% is for government legislation
3) Lack of project high level controlling & tracking processes * Focused on on-time, on-budget delivery. No ongoing tracking on project’s benefit, feasibility * Business case formats are inconsistent, data lack rigor * Monitor business unit after project is out of scope for IT dept
* *** Business Impact * IT lack transparency, credibility => damage relationship & internal credibility. * NAF’s executive don’t see the value from IT investment
Recommendation:
1. Create IT
IT Investment at North American Financial
Introduction:
Stakeholders:
* CEO: Bill Harris * CIO: Caroline Weese * CFO: Matt Harper * Senior IT Infrastructure: Brenda Liu. * VP of Business Banking Product Management: Cathy Benson * Director of Financial Strategy: Michael Cranston * Director of Risk and Compliance: Ian Ha * Head of Retail Banking: Sam Patel
Issues:
1) Inconsistent alignment in IT budgeting and Enterprise strategies: * Business Strategies & IT goals change rapidly, * IT strategies do not link to budgets * IT resources is allocated according to size of business dept *** Business Impact: * Rigid budget process => IT struggling to keep up with the resources (refer to Budgeting and IT strategies) * extremely difficult to allocate resources strategically
2) IT budgeting and implementation based on business functional silos * Lack of involvement of executive in implementation of business strategies in lower business dept. * Project approvals and implementation were made by business unit w/o cross-unit synergies * Create system duplication (exp: 18 diff project for anti-money laundering) * New system = new interface, data, dependencies * Didn’t explain the benefits of reducing duplication & simplification. *** Business Impact * Most of IT spending 60% is on maintaining existing systems, 20% is for government legislation
3) Lack of project high level controlling & tracking processes * Focused on on-time, on-budget delivery. No ongoing tracking on project’s benefit, feasibility * Business case formats are inconsistent, data lack rigor * Monitor business unit after project is out of scope for IT dept
* *** Business Impact * IT lack transparency, credibility => damage relationship & internal credibility. * NAF’s executive don’t see the value from IT investment
Recommendation:
1. Create IT