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ISFS614: Suncorp case — Session 8 readings (Part 2) - Coggle Diagram
ISFS614: Suncorp case — Session 8 readings (Part 2)
Timeline
2009: Began transformation efforts with its
'building blocks'
strategic IT overhaul
2011–12: Completed project—Remove duplicate CRM, HR, finance, claims and pricing systems
2012: $275 million
'simplification'
project—Modernise IT and cut the costs of running legacy infrastructure
2015: Extend 'simplification' project, with an additional $75 million
'optimisation'
effort
The optimisation project is run alongside
'Project Ignite'
core banking overhaul from its existing Hogan system to Oracle Flexcube technology
Started in: 2014
Target completion: Mid 2016
Expected cost: $270 million
Rationale
To reduce number of products offered by 50%
To decommission 12 legacy systems (17 to 5)
Re-engineer 580 processes to remove duplication
Reduce time to market for new products and offerings
Cost-saving
2016: Delay—Suncorp in the midst of shifting deposits and transaction banking to Oracle
2017: Suncorp decided to put the migration of the final pieces of its core banking overhaul on hold till Oracle can improve its tech
Reason given
Oracle is "not a global product" and it hasn't been designed specifically for Australian conditions
The next version of Oracle will come out 18 months later
Suncorp has also committed $100 million to develop its
'marketplace'
Suncorp also completed the migration of its
'super simplification'
project, which has seen 43 legacy superannuation and pension products reduced to 10
So far, around 170,000 customers and $6.3 billion of assets have been migrated onto the new platform
2018: Continued delay
Reason given
"One of the risks we have in putting all of the transactional business onto Oracle is the stability and reliability of the current version"
As Suncorp waits for the new Oracle version, it will run its Hogan system in parallel
Feb 2020: Suncorp unlikely to extend core banking replacement to deposits and transactions—limit to writing mortgages
"I don't think there is any benefit in us being the first mover in deploying a deposit module onto a new core banking system"
March 2020: Suncorp's CIO, Sarah Harland, and Tech Chief, Sharmilia Tsourdalakis, to leave
Senior management have technology challenges in finding ways to overcome Suncorp's multi-brand structure
The 'marketplace' strategy has also been put on hold once former CEO Michael Camera left
May 2020: Hogan core banking will remain as Suncorp's core main transactional engine
Suncorp has already switched off legacy collections, personal lending origination and collateral systems
Migrated personal and home loan origination to the new platform
Total cost thus far: $330 million
How to avoid the three common execution pitfalls that derail automation programs
Understand the complexity
Automation solutions are complex because they tend to affect multiple processes with significant interdependencies across technologies, departments, and strategies
Underlying issues
Poor quality of input data
Accommodating too many client variations
“Off script” procedures that cannot be quickly understood in high-level process demonstrations or requirements documents
Other more thoughtful approaches need to be considered in parallel with automation solutions
Process reengineering
Organization re-design
Policy reform
Technology-infrastructure upgrades / replacements
Successful companies employ
enterprise architecture management
—taking an end-to-end view of processes enables companies to shape and prioritize automation initiatives
Start by understanding their technological maturity, tracking customer and employee touch-points, mapping information flows, and setting expectations for exception handling, metrics and reporting
Couple automation with application techniques
Enterprises that do best at automation take the time to consider how they could redesign their processes, their organization, and their underlying technologies to pave the way for automation
4 key techniques
Design thinking
: taking a people-centered and journey-based view to process optimization that accounts for human empathy as well as analytical criteria
Process clean-sheeting
: designing an optimal process from scratch rather than making incremental changes to an existing process
Role-level assessment
: analyzing type and hierarchy of roles within the organization or function when evaluating the potential for automation
Minimum viable product
: developing a new
process that addresses the most basic criteria via agile sprints and rollout in releases every three to four months to test and adapt in the marketplace
To maximize value capture, leading businesses draw on a range of automation
technologies and application techniques
Invest in change management
Design for the operator, agent, or customer experience
Think realistically about technical and executional maturity
Adopt agile implementation.
Set clear and considered expectations
Engage with their employees