Employing ECM and BPM in the Financial Sector Amidst Organizational Change: The Good, the Bad and the Ugly TCP-2294

Employing ECM and BPM in the Financial Sector Amidst Organizational Change: The Good, the Bad and the Ugly TCP-2294 Patrick Clarke, IBM Warren Mante, Standard Bank of South Africa

Agenda • Standard Bank of South Africa Overview • History • Market Context • Major Initiatives in Standard Bank • Volumes – Problem Definition • Current ROI & Projected ROI • ECM Program History • Delivering Change • Enterprise Workflow • ECM Landscape • Roadmap • Evaluation Process and Partnership • Component Landscape • Value in Partnership : Win - Win

Standard Bank History • On the 15th October 1862 the bank was incorporated and registered as a limited liability company. Its capital was fixed at ₤1,000,000 with 10,000 shares of ₤100 each. • Standard Bank Group is a global bank with African roots. It is South Africa's largest bank, distinguished by its extensive operations in 17 African countries. Outside the African continent, Standard Bank Group operations span to 16 countries, with an emerging market focus. • Standard Bank Group is listed on the JSE Limited, share code SBK, and the Namibian Stock Exchange, share code SNB. The group had total assets of over R1 345 billion (approximately $182 billion) at 31 December 2009 and employed more than 50 000 (including Liberty) people worldwide. Standard Bank's market capitalisation at 31 December 2009 was R159 billion (approximately $22 billion).

Group and Subsidiaries Major subsidiaries • The Standard Bank of South Africa • Standard Bank - Africa and Stanbic Africa Holdings (in some countries) • Standard International Holdings • Standard Bank Offshore Group • Liberty Holdings

Market Context Customer Centric Core Banking Platform Replacement

Major Initiatives in SBSA • Single View of Customer • Once and Done Processing • Standardisation • Legal Compliance and Records Management • Supporting Efficient Process

Volumes – Problem Definition • Documents – average of 500,000 pages per month. Documents photocopied and couriered to central scanning area; expensive and slow (72 hour turnaround) • Applications - The bank receives an average of 6351 new applications on a daily basis from all the segments • Process duplication – each product house has duplicated process steps: capturing images, originating customer, credit scoring, etc… • No full view of customer information – where is it and what is it being used for? • In excess of 20 million statements created per month with multiple formats and no audit trail of posted correspondence

Current & Projected ROI • Per 150,000 pages scanned @ source, annual saving of 715K USD (copying costs, courier costs, staff cost, storage cost), increased efficiencies by reducing turnaround time to as little as 5 minutes from 72 hours. Projected +/- 28.5 mil USD annual total savings (6 million pages) • Per 5% customer base uptake of digital statements over paper, 3 mil USD saving year on year • Records Management – approximately 1 mil USD saved annually on paper storage costs, and will reduce the approximately 30 mil USD lost per annum on recoveries not completed due to lost contracts and documents

ECM Program History • 2007 – SBSA Personal & Business Bank (PBB) publish a new Target Operating Model (TOM) • 2007 – PBB creates a Business Architecture unit to map business capabilities to the TOM • 2007 – PBB restructures IT Architecture unit to map business capabilities to technology capabilities • 2007 – ECM identified as a major program to support the TOM, ECM programme established • 2008 – First ECM Architecture published, 3 year Roadmap planned • 2009 – Initial deployments begin

ECM History • ECM Failures - Home loans attempted to deploy an imaging and workflow capability in 2001, without success. Contributors included no organizational view, no clear architecture, no clear leadership, multiple changes to project team • ECM Success – Vehicle Asset Finance successfully deployed an imaging and workflow solution in the same year which reduced turn-around times from 7 days to 7 minutes and garnered an AIIM award • The difference between the two? Physically separated by 1 floor in the same building, but worlds apart in strategic planning, clarity of vision and delivery focus

Delivering Change Context – Target Operating Model Business Architecture – As Is Business Architecture – To Be Information Architecture – As Is Information Architecture – To Be Technology Architecture – As Is Technology Architecture – To Be Change Horizons Roadmap Delegation of capability delivery Abdication of project control Context – Running Projects

2 3 1 5 4 Version 1 Components (Core) Content Management Patterns Deployment Architectures Tactical vs. Strategic Considerations SOA Enablement Reference Architecture

Version 2 Components (Extensions) Image @ Source Output Management Taxonomy Enterprise Workflow Initial Building Blocks Secondary Building Blocks Email Archiving Service Model

Enterprise Workflow

ECM Landscape Common digital statement engine allows for any product house to create and send digital statements, via the central messaging engine – common architecture and infrastructure allows re-use and faster deployments. The federation into the central catalogue also allows users to view statements from the common viewer Common viewer application which can be deployed anywhere within the managed environment. Can be used to view all content within the Content Library as well as any federated stores Common capture application which can be deployed anywhere within the managed environment. Can be used for Customer content and internal content

ECM Landscape Integration with SharePoint allows sensitive documents (payslips, financial documents) to reside in the enterprise repository and all non sensitive documents (project documents, production documents) to reside in pervasive SharePoint Enterprise content taxonomy allows for standardised classification of content, which in turn aids management of content via Records Manager, and searchability Integration with workflow allows the content to trigger a workflow process or rendezvous content with an existing workflow process

Roadmap

Evaluation Process and Partnership

Component landscape

Employing ECM and BPM in the Financial Sector Amidst Organizational Change: The Good, the Bad and the Ugly TCP-2294