1. finance
2. bank
3. bank account

The Nova-project
Lene Weldum
lwe@bankdata.dk
Topics
About me
1 slide
The Danish banking-sector and
the supporting IT-landscape
3 slides
Bankdata in brief
4 slides
The Nova-project
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
Jyske Bank
In house
Bankdata
JN Data
Sydbank, Alm. Brand
bank, …
Bankdata
In
JNhouse
Data
Arbejdernes Landsbank,
Handelsbanken, …
BEC
In house
(CSC)
JN Data
Spar Nord, Kronjylland,
…
SDC
JNIBM
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, …
Bankdata
JN Data
Arbejdernes Landsbank,
Handelsbanken, …
BEC
JN Data
Spar Nord, Kronjylland,
…
SDC
JN Data
7
Bankdata in brief
8
Bankdata – the fundamentals
Bankdata is located in
Fredericia (HQ) and –
as of november 2012 Silkeborg, Denmark.
Bankdata was founded
on June 16th, 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
Danske
Bank
BEC
SDC
Nordea
10
Bankdata members ownership
Sydbank
Other banks
41,0%
30,0%
29,0%
11
Jyske Bank
Staffing structure in Bankdata 2013
650 employees
1% 2%
4%
Mangement, HR,
Admininstration
Development and
development support
Security and Audit
92%
12
Customerservice
The Nova project
13
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
Jyske Bank
Comprehensive
IT-system
Highly skilled ITdepartment
Bankdata
Danske
Bank
BEC
SDC
Competitiveness!
Nordea
15
The Nova project
… the beginning
Dialogue started June 23rd 2010
Bankdata’s board of directors and
the managing board of Jyske Bank
The partnership published
September 1st 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.
18
Migrate as soon as possible
a LOT of money to save at the end
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 11th 2010
the migration-date (dubbed “K-day”)
was set to October 15th 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
Nova in numbers
24
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
Planning of the project
26
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
JBIT
UO5
UO6
KONV
PRO
IMPL
NOVA projectportfolio
30
Project dependencies
Leveranceinfo
Bankdata
JB-IT
Dokumenter fl.
sprog
Opsætning
dokumenter
Pilot kravspec
kunde
Teknisk
etablering bank
51
Pilot
implementering
Forretnings
analyse
Betalinger
Kundepåv.
erhverv
institutionelle
Øvrige fonds
ATM Visakort
Lærings
metoder
Arbejds og
forretningsgang
FE-Indland
Totalkonto
EDI BET og
FONDS
Supernavigator
opgavestyring
Mobilbank
Valuta
derivater og
pengemarked
Forretnings
analyse
Regnskab
Communicator
Projekt JB-IT
”NYT”
Forretnings
analyse
Kunde
Forretnings
analyse
Kredit
Netbank
Software JB
ATM
Foranalyse nye
konverterings
områder
Justere
konverterings
apparat
Konverterings
programmel
Endelig
konvertering
Forretnings
analyse
e-Banking
Migrering JB
ATM
FBI
BSY
”Skyldige
renter”
BI analyse og
sammenlægn.
JGAM
Kapital
forvaltning
Gibraltar og
Schweitz
Credit Agricole
Private
Banking
InkassoPro
JB-IT
tværgående
Berbens
Øvrige
integrations
opgaver UO3
JB-IT SYS liste
Front off. &
udland
Frankring
Kort Clearing
CoAc
Danske
Hamborg
Årsudskrift
fonds
Pension (U2P)
Gibraltar og
Schweitz
QI/Facta
HOB
Silkeborg Data
Handel /
afvikling/
FUTOP
Betalinger
Jyske Finans
Remburs
Swift
sammenlægn.
Jyske Invest
ORG
Investerings
kreditter RST
Afd. regnskab
og kunderentabilitet
BI Dataudtræk
(JB-IT)
Hold til udløb
MFI 3
Belånings
værdiberegning
JB-IT
gældsvejviser
Modpartsstyring
Rammer
BSY
”NYT”
Likviditet og
positionsstyring
FD-TM
Front Arena
forberedelse
Front Arena
Aktieintegration
RNA
U2P regnskab
IMP
POP
Sammenhæng mellem POP og Implementering
Ændringer/opdateringer i POP arbejds- og forretningsgange frem mod K-dag
videreformidles til Implementering.
Fondsregnskab
Cash Flow
indlånsrente
BSY ”NYT”
JB
BD BD
IT
Ø
UDV UDV UDV
Jens Sørensen er ansvarlig for at videreformidle leveranceinfo til relevante
POP og Implementeringsprojekter.
JB-IT BI
salgshåndtering
Regnskab og
nedskrivning
Øen drift og
integration
TEKN.
INFRA
Bankdatas projekter (inkl. øen) benytter Bankdatas leveranceinfo som aftalt
mellem Kurt Espersen og Jens Sørensen
KAL 3
Projekt samling
og nutidsværdi
cashflow ”NYT”
KONV
+
ANALY
SE
Sammenhæng mellem udviklingsprojekter og POP/IMP
JB-IT leverer leveranceinfo til Jens Sørensen på projekter som påvirker POP
og Implementering.
Historiske data
modeller og
marter
Kapital intern
ekstern
STY Rating
LEVERANCE
INFO
Forudsætninger
JB-IT
Prisstøtte
”NYT”
Erhvervs
kreditter
Sikkerheds
registrering
Projekt
rentemodul
”NYT”
Performance og
load
Farvekode forklaring
Prøve
konverteringer
JB Advent
31
JB ej i lotus
notes
JB-IT sys liste
teknik og
selvbetjening
Forretnings
analyse
Konto
Forretnings
analyse
Likviditet
Kreditprojektet
BD/KLP
BSY
Konto
indstillinger
Drejebøger til
K-dag
Kundepåv.
privat/PB
TOPAZ
Datterselskab
og udland
igangværende
analyser
Support til K
dag
Læring indland
Data til
uddannelses
miljø
NOVA Drift
Motivation af
medarbejdere
Basis
uddannelse
Produktsnedkeriet
Teknisk
etablering
udd.miljø
VAF geb og
strakskurs
eArkiv
Købesystem
LMS til styring
læringstilbud
Lederens rolle
Læring JM
og hjemsted
Analyse
interne proces
Hjemstedet
Opsætning
systemer, org,
autorisationer
”NYT”
Læring
datterselskaber
Arbejdsgange
Hjemsted
Arbejds og
forretningsgang
FE-JM
BSY
Kunde
indstillinger
KMD
4-6
adresselinjer
Intranet
(Sharepoint)
Projekter uden kritiske
sammenhænge til andre projekter
(excl. data og grænseflader)
BSY
Kredit
indstillinger
NOVA MASTERPLAN APRIL 2011
PROJEKTSAMMENHÆNG
JB dokumenter
FD integration
UO3
”NYT”
FX Derivater og
pengemarked
Investeringsrådgivning
JB-IT
Investering
JB_IT Øvrige
rådgivnings
værktøjer
JB-IT
Ibank
CoAc
Udl
CAS 10
Corporate Action
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 Øplatformen 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
K-weekend and K-day!
33
The Nova project
… K-day setup
A comprehensive management and
communication structure was in place from
10th until 24th 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

35
Need/nice to know
Decision structure
190 milestone meetings
Decision structure



Business
It
Both
Task force
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
37
Friday kl. 21.00
Self-service systems shutdown. Data extraction.
Saturday kl. 05.00
Data extracted. Data load in Bankdata
Saturday kl. 15.00
Batch flow
Saturday kl. 17.45
Data migration test started (42 teams)
Saturday kl. 23.53
Data migration accepted
(kl. 01.30)
(kl. 19.00)
The Nova project
… K-day Yellow Phase
Yellow phase: Testing of 503 critical processes
38
Sunday kl. 01.55
Nets Stand-in for Visa Debit stopped at
Sunday kl. 02.30
Helpdesk & Service Desk opens
Sunday kl. 04.00
ATM’s opened
Sunday kl. 07.30
ebank opened (kl. 15.00)
Sunday kl. 12.15
“The island” opened
Sunday kl. 18.00
Weekend batch-flow and clearing done
Monday kl. 08.03
 Power Failure in Jyske Bank HQ
Monday kl. 10.00
Branches and service centers opens
Wed.day kl. 15.00
Phase change from Yellow to Green (stabilization)
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
NOVA from an IToperations perspective
41
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
43
1.
Identify and solve possible
gridlocks/bottlenecks before K-day
2.
General tuning of the system-complex
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
The Nova project
… Tuning of the Internetbank
Avg. growth:
65 %
0,6
7.000.000
6.000.000
0,5
5.000.000
0,4
4.000.000
0,3
3.000.000
0,2
2.000.000
0,1
1.000.000
0
0
No. of pageshows
45
Avg. responsetime
The Nova project
… Operations
Dashboard - Employers workplace
0,8
0,7
2.000.000
Avg. growth:
90 %
1.800.000
1.600.000
0,6
1.400.000
0,5
1.200.000
0,4
1.000.000
800.000
0,3
600.000
0,2
400.000
0,1
200.000
0
-
No. of pageshows
46
Avg. responsetime
Mobile payments
180
160
140
120
100
80
60
40
20
0
47
Jyske Bank
Øvrige banker
ATM-transactions
160
140
120
100
80
60
40
20
0
48
Jyske Bank
Øvrige banker
“Large customer”
transactions
500
450
400
350
300
250
200
150
100
50
0
49
Jyske Bank
Øvrige banker
Transactions from
“special large customers”
50
Was Nova a success?
51
Was Nova a success?
Was Nova a Success?
YES!
Were Jyske Bank running as
efficiently after K-day as before?
Are we “back to normal”
in Jyske Bank and Bankdata
52
NO!
(they still aren’t)
NO!
(but we are
getting there)
Why we succeeded
53
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
Lessons learned
58
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
The economy of it all
60
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