The Nova-project Lene Weldum lwe@bankdata.dk
Topics About me The Danish banking-sector and the supporting IT-landscape Bankdata in brief The Nova-project 1 slide 3 slides 4 slides The rest 2
My background General Manager in Bankdata since 2002 Development manager, Bankdata 1992-2002 Department manager, Bankdata 1990-1992 Different positions in IT-operations, Scandia (now: Bombardier) from 1982 to 1990 Operator Operation planner System programmer IT Operation manager 3
4 The Danish bankingsector and the supporting IT-landscape
Danish banks anno 2013 As per today: 89 Danish banks 137 in 2007 Fewer branches month by month And reduced services and/or opening hours in many of the rest 5
The IT-landscape in Danish Banks 2009 IT development IT operations Danske Bank In house IBM Nordea In house IBM Bankdata Jyske Bank In house JN Data Sydbank, Alm. Brand bank, Arbejdernes Landsbank, Handelsbanken, Spar Nord, Kronjylland, Bankdata BEC SDC JN Data In house JN Data In house (CSC) JN IBM Data 6
The IT-landscape in Danish Banks 2013 IT development IT operations Danske Bank In house IBM Nordea In house IBM Jyske Bank, Sydbank, Alm. Brand bank, Arbejdernes Landsbank, Handelsbanken, Spar Nord, Kronjylland, Bankdata BEC SDC JN Data JN Data JN Data 7
8 Bankdata in brief
Bankdata the fundamentals Bankdata is located in Fredericia (HQ) and as of november 2012 - Silkeborg, Denmark. Bankdata was founded on June 16 th, 1966. Bankdata is owned 100% by the members - our costumers are our owners 9
Bankdata and the Danish banking landscape By size of banking-balances Bankdata BEC Danske Bank SDC Nordea 10
Bankdata members ownership Sydbank Other banks 41,0% 30,0% Jyske Bank 29,0% 11
Staffing structure in Bankdata 2013 650 employees 1% 2% 4% Mangement, HR, Admininstration Development and development support Security and Audit 92% Customerservice 12
13 The Nova project
Focus Why Jyske Bank gave up their in house developmentstrategy The agreement Establishing K-day Why did we decide on a big bang? Numbers what was Nova all about Planning and management of the project The setup around K-day Bonus: Some fun media-observations Nova from an IT-operational point of view Success? Why? And what not? The sunny money side of Nova The real secret of Nova 14
Jyske Bank strategy change Comprehensive IT-system Highly skilled ITdepartment Competitiveness! Bankdata BEC SDC Jyske Bank Nordea Danske Bank 15
The Nova project the beginning Dialogue started June 23 rd 2010 Bankdata s board of directors and the managing board of Jyske Bank The partnership published September 1 st 2010 1. Jyske Bank becomes a member in Bankdata 2. Bankdata outsources the in house IToperations to JN Data 16
The Nova project the agreement No lawyers, no consultants 12 pages And what s known as a Jysk håndslag (Jutland Handshake) 17
The Nova project the task at hand 1. Migrate Jyske Bank from their current IT-platform to Bankdata 2. Fill in the gaps and missing links In many areas Bankdata s systems were clearly better than Jyske Banks But in many areas the opposite was the case 3. Migrate as soon as possible a LOT of money to save at the end 18
The Nova project the analysis September October 2010 Plus extended analysis regarding Advanced Basel-legislation (November 2010) Markets-systems (January 2011) Gaps identified At lot of those were al ready targeted in the pre-nova -development plan in Bankdata Another large portion resulted in new development projects 19
The Nova project why a 48 hour mission was decided The wish: Migrate Jyske Bank in the Easterdays of 2012 Deemed impossible at an early stage The alternative: Next prolonged usable weekend was Easter 2013 Deemed undesirable at an early stage The compromise: A normal 2 day weekend in autumn of 2012 20
The Nova project K-day On October 11 th 2010 the migration-date (dubbed K-day ) was set to October 15 th 2012 21
The Nova project the infamous island In November 2010 we became convinced that we wouldn t be able to fill the gap regarding Advanced Basel in time An Island was born In January 2011 further system-parts (in the area of foreign exchange) were also exiled to the island 22
The Nova project why a big bang!? So much money involved (stay tuned for figures later) A successive migration was less risky per. migration-package, but collectively a bigger risk Normality on hold Jyske Bank were to a great extend put on IT-hold in the migration period So was Bankdata s old member-banks We were convinced it could be done! 23
24 Nova in numbers
The Nova numbers 143 projects from 6 man-months to 20-30 man-years Data to be migrated 1.400.000 customers 2.500.000 accounts 1.400.000 fund trades 3.000.000.000 money transactions 300.000.000 payments 45.000.000 Payment Service Notifications 480.000.000 Payment Service Notification lines 160.000.000 documents New IT delivered to 3.800 employees 500.000 customers 25
26 Planning of the project
Management structure Steering comittee Bankdata, Jyske Bank, Sydbank Business Decision board Jyske Bank Project Management Team Bankdata, Jyske Bank Project 1 Project Project 143 27
Project management All projects had their own setup (steering committee, project management, statusreporting etc.) Nova Project Management gathered all reports and did supplementary follow up actions Momentum measurements The much feared coffee meetings 28
Momentum control 1 of?? UO1 UO2 UO3 UO4 UO5 UO6 JBIT IMPL KONV PRO
30 NOVA projectportfolio
Project dependencies Leveranceinfo Bankdata JB-IT Intranet (Sharepoint) Pilot kravspec kunde Teknisk Opsætning Produktsnedkeriet etablering bank systemer, org, 51 autorisationer Teknisk Data til etablering uddannelses udd.miljø miljø NOVA Drift VAF geb og TOPAZ Totalkonto strakskurs Øvrige fonds EDI BET og Netbank FONDS Software JB Migrering JB ATM Visakort ATM ATM FBI Kundepåv. privat/pb Mobilbank Arbejds og forretningsgang FE-JM Analyse interne proces Hjemstedet Kundepåv. erhverv institutionelle JB dokumenter Opsætning dokumenter Arbejdsgange Hjemsted Arbejds og forretningsgang FE-Indland Supernavigator opgavestyring JB Advent Dokumenter fl. sprog 4-6 adresselinjer earkiv Pilot implementering Lærings metoder Communicator Projekt JB-IT NYT KMD NYT Læring JM og hjemsted Læring indland NOVA MASTERPLAN APRIL 2011 PROJEKTSAMMENHÆNG Basis uddannelse Forretnings analyse Betalinger Forretnings analyse Regnskab Forretnings analyse Kunde Forretnings analyse Kredit Forretnings analyse e-banking Forretnings analyse Konto Forretnings analyse Likviditet Læring datterselskaber Valuta derivater og pengemarked Foranalyse nye konverterings områder Lederens rolle Justere konverterings apparat Købesystem LMS til styring læringstilbud Drejebøger til K-dag Konverterings programmel Motivation af medarbejdere Prøve konverteringer Endelig konvertering Support til K dag LEVERANCE INFO Datterselskab og udland igangværende analyser JGAM Private Banking Berbens Frankring Hamborg Gibraltar og Schweitz Silkeborg Data Jyske Finans Jyske Invest KONV + ANALY SE TEKN. INFRA Projekter uden kritiske sammenhænge til andre projekter (excl. data og grænseflader) Performance og load Kapital forvaltning InkassoPro Øvrige integrations opgaver UO3 Kort Clearing Årsudskrift fonds QI/Facta Handel / afvikling/ FUTOP Remburs ORG Farvekode forklaring JB IT UDV BSY Kredit indstillinger BSY Kunde indstillinger BSY Konto indstillinger BD UDV BD Ø UDV JB ej i lotus notes JB-IT sys liste teknik og selvbetjening Gibraltar og Schweitz Credit Agricole JB-IT tværgående JB-IT SYS liste Front off. & udland CoAc Danske Pension (U2P) HOB Betalinger Swift sammenlægn. Investerings kreditter RST IMP POP BI analyse og sammenlægn. Erhvervs kreditter Sikkerheds registrering BSY Skyldige renter STY Rating JB-IT Prisstøtte NYT Kapital intern ekstern Afd. regnskab og kunderentabilitet Hold til udløb Historiske data modeller og marter BI Dataudtræk (JB-IT) JB-IT BI salgshåndtering Forudsætninger Sammenhæng mellem udviklingsprojekter og POP/IMP JB-IT leverer leveranceinfo til Jens Sørensen på projekter som påvirker POP og Implementering. Bankdatas projekter (inkl. øen) benytter Bankdatas leveranceinfo som aftalt mellem Kurt Espersen og Jens Sørensen Jens Sørensen er ansvarlig for at videreformidle leveranceinfo til relevante POP og Implementeringsprojekter. Kreditprojektet BD/KLP 31 KAL 3 Belånings værdiberegning Projekt samling og nutidsværdi cashflow NYT Cash Flow indlånsrente Front Arena BSY NYT forberedelse Projekt rentemodul NYT Regnskab og nedskrivning Øen drift og integration FD-TM Front Arena Aktieintegration RNA U2P regnskab Fondsregnskab MFI 3 Rammer Modpartsstyring BSY NYT Likviditet og positionsstyring FX Derivater og FD integration pengemarked UO3 NYT Investeringsrådgivning JB-IT gældsvejviser JB-IT Investering JB_IT Øvrige rådgivnings værktøjer JB-IT Ibank CoAc Udl CAS 10 Corporate Action Sammenhæng mellem POP og Implementering Ændringer/opdateringer i POP arbejds- og forretningsgange frem mod K-dag videreformidles til Implementering. Grænsefladeopgaver og databehov De fleste udviklingsprojekter formodes at have grænsefladeopgaver til f.eks. DWH/Dataservice eller basissystemerne. Det fremgår ikke af masterplanen. Testmiljøer Udviklere skal have mulighed for at teste udviklede moduler og systemer på testmiljøer i henholdsvis Bankdatas hovedplatform og Bankdatas Ø-platform efter behov. Dataintegration mellem systemer på hovedplatformen og Ø- platformen skal ligeledes kunne testes. Uddannelsesmiljø Sideløbende med opsætningen af Bank 51, foretages teknisk etablering af uddannelsesmiljø. Opsætningen af Bank 51 kopieres herefter til uddannelsesmiljøet. Jyske Bank leverer dataudtræk til uddannelsesmiljøet.
Project management Nova Project Management was first escalation point when a project had an unresolvable issue Nova Business decision support which were the complete management board of Jyske Bank were second point of escalation A lot of business requirements were met And a lot was rejected/postponed 32
33 K-weekend and K-day!
The Nova project K-day setup A comprehensive management and communication structure was in place from 10 th until 24 th of October Focal point: The War room by invitation only 34
The Nova project War room setup War Room material Organization Timetables Milestones Communication plans Need/nice to know Decision structure 190 milestone meetings Decision structure Business It Both Task force 35
The Nova project K-day setup The K-day period was divided into three phases: Red Yellow Green Sophisticated steering tools used 36
The Nova project K-day Red Phase Red phase: Data migration Friday kl. 21.00 Self-service systems shutdown. Data extraction. Saturday kl. 05.00 Saturday kl. 15.00 Data extracted. Data load in Bankdata Batch flow Saturday kl. 17.45 Data migration test started (42 teams) (kl. 19.00) Saturday kl. 23.53 Data migration accepted (kl. 01.30) 37
The Nova project K-day Yellow Phase Yellow phase: Testing of 503 critical processes Sunday kl. 01.55 Nets Stand-in for Visa Debit stopped at Sunday kl. 02.30 Sunday kl. 04.00 Helpdesk & Service Desk opens ATM s opened Sunday kl. 07.30 ebank opened (kl. 15.00) Sunday kl. 12.15 Sunday kl. 18.00 Monday kl. 08.03 Monday kl. 10.00 Wed.day kl. 15.00 The island opened Weekend batch-flow and clearing done Power Failure in Jyske Bank HQ Branches and service centers opens Phase change from Yellow to Green (stabilization) 38
Finanswatch: Critical issues occurred during Jyske Banks IT-mission It nearly went very wrong The bank couldn t exchange money with other banks yesterday But it wasn t relevant since the banks were closed yesterday (Sunday, red.) 39
Computerworld: Denmark s largest data-migration struck by power failure Denmark s largest data-migration struck by power failure Yeah? Well, it was the screens in Jyske Bank, that blinked Monday morning before the UPS took over 40
41 NOVA from an IToperations perspective
The Nova project the scale-up Jyske Bank on average expected to add 70 % to Bankdata s transaction load This average covered large systemindividual differences which were to a large extend unknown/unpredictable All platforms scaled to +70 % Mainframe AIX Intel 42
The Nova project performance and stability A performance tuning project was initialized early in the Nova-time. Goal: No (negative) impact on stability and performance 1. Identify and solve possible gridlocks/bottlenecks before K-day 2. General tuning of the system-complex 43
The Nova project performance and stability cont. A lot of potential gridlocks were identified and eliminated A lot of general performance-improving actions were taken Resulting in overall BETTER performance for all member-banks before K-day And it stayed this way after K-day 44
0,6 0,5 The Nova project Tuning of the Internetbank Avg. growth: 65 % 7.000.000 6.000.000 0,4 0,3 0,2 5.000.000 4.000.000 3.000.000 2.000.000 0,1 1.000.000 0 0 No. of pageshows Avg. responsetime 45
The Nova project Operations 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 Dashboard - Employers workplace Avg. growth: 90 % 2.000.000 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 - No. of pageshows Avg. responsetime 46
Mobile payments 180 160 140 120 100 80 60 Jyske Bank Øvrige banker 40 20 0 47
ATM-transactions 160 140 120 100 80 60 Jyske Bank Øvrige banker 40 20 0 48
Large customer transactions 500 450 400 350 300 250 200 Jyske Bank Øvrige banker 150 100 50 0 49
50 Transactions from special large customers
51 Was Nova a success?
Was Nova a success? Was Nova a Success? YES! Were Jyske Bank running as efficiently after K-day as before? NO! (they still aren t) Are we back to normal in Jyske Bank and Bankdata NO! (but we are getting there) 52
53 Why we succeeded
SUGAR The key to success 54
The key reasons for success A clear mission with 100 % sponsorship and support from the highest levels in Jyske Bank, Bankdata and all the other Bankdata member-banks A compelling business case (you still have to wait for the figures) A very clear common goal: 15.10.2012 55
The key reasons for success A very strong, clear and never failing personal ownership from every single employee 56
The key reasons for success and a lot of overtime 57
58 Lessons learned
What would we change Bankdata: Get Projects of ground quicker Better at communicating goodies for the old member banks Mentally prepared for longer support normalization phase Jyske Bank: Under-sell to the customers Up scaled hotline even more Identified 3-5 more gaps before K-day 59
60 The economy of it all
The Nova project economy in the project The total project cost 33 mill. Euros Or It didn t cost anything!!? All costs related to Nova were paid with money saved on other IT-expenses Projects/investments stopped in Jyske Bank Projects stopped or reprioritized in Bankdata Actually Compared to forecasted normal IT-expenses in Bankdata and Jyske Bank 13 mill. Euros were saved in the Nova-period. 61
The Nova project economy after K-day Total saving in all Bankdata s member-banks 4+ million Euros per month! 62
The secret of Nova: Collaboration does the trick Featuring: Erling Jensen CEO JN Data Peer Roer CIO Jyske Bank Ove Vestergaard CEO Bankdata
64
The Nova project the end Thank you for your attention LWE@bankdata.dk 65