Best Practice Business Architecture For The Bank - KPMG
Best Practice Business Architecture For The Bank - KPMG
Best Practice Business Architecture For The Bank - KPMG
R U
I O
D
o
Distribution channel
management
Operations
S
Human Resources
u
p
p Information Technology
o
Finance
r
t
Strategy
M
a
n
Risk Management
a
g
Management Information e
Governance
Marketing
Transformation
From
Account focus
Operational emphasis is on daily processing
Price insensitivity
Credit risk applied to individual loan applications
Limited risk management
Information used to track geographic performance
Organisational focus is based on geography
People allocated as a resource
Objectives are loan volume and cost driven
Business planning is resource allocation focused
Business controls developed ad hoc
Understanding of capital as a constraint
Use of technology is geographically diverse
Transformation
To
Customer, product and distribution channel focused
Operational emphasis is cost effectiveness given defined
service levels
Price sensitive decisions
Credit risk applied to the individual, group and portfolio
Comprehensive financial, operations and credit risk
management
Information used to provide a multidimensional business
view
Organisational focus is based on function
People developed as an asset
Objectives are profit driven
Business planning considers external factors
Business controls developed as part of overall framework
Use of capital as a decision making tool
Sub title
Deposits per
member of
staff
past focused
financial
internally oriented
not used as an active management tool
undervalued as a management tool
geographically based
inflexible in its structure
Information technology
Applications Portfolio
Information Automation
I/T Resources
Where
Personnel & Technology
CCB is
now Practice
I/T Management
applications
integrating
within
functions
task automation
complete, begin
second
generation of
applications
rebuilding
applications for
cross-functional
support
linkage to
external
suppliers and
customers
mainframe/batch
online
IT specialist
user oriented
IT specialist
information
manager
intelligent
workstations
Decentralised
Decentralised
Decentralised
utility organisation
for technologies
Centralised
new
Outplacing
technologies
defusing through
organisation
IT staff in business units
Knowledge of
technologies
mix of central/decentral
Centralised
finance decides
IT Org. decides
with Mgmt
steering
committee
decides
steering
committee
decides
information
planning
data ownership
tailored planning
& control
user
participation
in systems
projects
users have
budget
responsibility
users manage
development
users manage
development
little planning
User Sophistication
limited,
independent,
focused on cost
reduction (start
in finance)
little planning
squeaky wheel
system devpmt
methodologies
user
involvement
minimal
enthusiastic
user
involvement
Stage I
Initiation
Stage II
Contagion
Stage III
Control
Stage IV
Integration
Where
CCB
wants to
top management top mgmt facilitates,
BU decides
committee
be
strategic planning
decides
user orgn
responsible for
acquiring & using IT
Stage V
Architecture
Stage VI
Industry
Infrastructure
Capabilities Required at
China Construction Bank
Capabilities needed
Capabilities in
managing the
business
complexity
Capabilities
that enable the
rest of the
business
Capabilities in
supporting the
business
Customer
relationship
management
Product
development
management
Distribution
channel
management
Operational
management
Actively
managing risks
Financial
management
Using
technology
effectively
Setting and
implementing
strategy
Managing
scarce capital
Using
information for
decision
making
Using Human
Resources
optimally
Adapting the
organisation
Annual plan
- Business level, actions, deliverables and budgets
Customer segmentation
- Recruitment
- Competency framework
HR Infrastructure management
- Information technology
- Processes
Employee contribution
-
Performance management
Reward management
Training
Health and safety
Transformational change
-
Succession management
Organisational design
Communication
Career development
Change management
Centralised operations
-
Automate processes
-
Efficiency gains
Reduction in error rates
Improved reporting
organisation
product
customer
Business vision
Objectives
Objectives
Do wells
Management
information
Control
informatio
n