The CIO’s Journey... Rudi Peeters CIO KBC Group [email protected] All resemblance to your world will not be a coincidence. Remember: “IT” is too important to leave it only @ “IT”
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The CIO’s Journey...
Rudi PeetersCIO KBC [email protected]
All resemblance to your world will not be a coincidence.Remember: “IT” is too important to leave it only @ “IT”
2
Home Markets
HEADQUARTERS
BELGIË
Others: Local branches
New York, Hongkong,
Singapore, Frankrijk etc.
België Tsjechië:
ČSOB
Slowakije:
ČSOB
IerlandBulgarije:
CIBANK/DZI
Hongarije:
K&H
3
Stable reference shareholders
KBC Ancora
Cera
MRBB
Other core shareholders
Free float
Share holder structure KBC 9m Customers
3 core segments
Retail & Private Banking
SME
Mid Caps
Employees
total: ca. 37 000
België: ca. 13 000
ICT: ca. 3 000
4
5
Why does “IT” need to be a co-entrepreneur?
Is there a problem?
Why do companies need to become more agile?
6
Financial crisis and afterwards
Economy is changing
A shrinking group
Revenues under pressure, more regulations
Investments under pressure
Our challenge: create more value with less costs
7
Technology is changing fast
8
• India 98%
• China 94%
• Brazil 73%
• Italy 69%
• Germany 67%
• Swiss 66%
• UK 38%
• Netherlands 27%
• Norway 23%
• Denmark 11%
• Sweden 7%
Culture is changing
Should the boss have all the answers?
Belgium
9
THE CHALLENGERSTHE USUAL SUSPECTS
THE NEW ENTRANTS THE DISTRIBUTION DISRUPTORS
Competition is changing fast
10
Beware of DIGITAL DISRUPTION
There's a well-known story that you
can't cook a frog by tossing him
into a pot of boiling water; he'll
simply jump out.
But you can cook a frog if you
place him into a pot of cool water
and gradually up the heat.
The frog's body temperature will
change with the water temp,
unnoticed by the frog, and dinner
will soon be served.
11
What can we do agains disruption?
Challenges for bank or insurance ?
12
GM, MERCEDES,…. Versus Google self-driving carTESLA
What can we LEARN out off disruption?
13
Where can “IT” be of help?
BECOMING A CO-ENTREPRENEUR
ICT Cost Ratios,
being part of
investment
decisions
IT positioned as
strategic partner
and not as utility
provider
Flexible
organization and
sourcing
Fast
Time-To-Market
Technology as
enabler of new
business value
14
12/02/2015
What kind of IT do you want us to be?
15
It is not about
the biggest R&D
budget
It is not about
thebest/cheapest
operations
It is all about
Flexibility, Agility,
Readiness to change
It is not about the
best technology
16
Need for a flexible organisation
GOVERNANCE
ORGANIZATION
A more continuous IT governance process
based on zero-based budgeting principles
When priorities change, the organization
(staffing) needs to be able to adjust
quickly
A fluid network organization able to react
swiftly to new opportunities and
generating efficiency gains compared to
the current siloed organization
17
Moving from a siloed multi-year planning towards a cross-domain continuous governance process
FROM: siloed multi-year planning
• Budget managed per silo.
• Suboptimal priority setting of investments
on company level
• Mainly focus on cost, not on value.
• Budgets fixed 1 year upfront
change
run
change
run
change
run
change
run
BU1 BU2 BU3 BU-X
0%
20%
40%
60%
80%
100%
2QY1 3QY1 4QY1 1QY2 2QY2 3QY2
Free
Allocated
Budget allocation Y2
• Budget managed across domains
• Challenge business cases across domains based on
strategic drivers
• Evaluate business cases on value/risk & close the loop
after delivery of project
• Gradual allocation of budget during the year (taking
“air” out of the budgets)
1 change budget
runrun
runrun
BU1 BU2 BU3 BU-X
TO: cross-domain continuous planning
0%
20%
40%
60%
80%
100%
2QY1 3QY1 4QY1 1QY2 2QY2 3QY2
Free
Allocated
Budget allocation Y2
18
From planning, budgeting to organisation.
But if you change or add a budget
YOU NEED TO
Change, add resources to avoid ability to execute
19
Moving from a frozen hierarchical organization towards a more fluid organization
FROM: hierarchical organization
• Business–IT: 2 separate teams
• Hierarchical organization
• Rigid structures with FTE norms
• Plan work based on available people
• Waterfall methodology for default
functions
• Non-transparent, entity based labour
market
TO: fluid network organization
• Business-IT together, 1 multidisciplinary team*
• Demand/Delivery process
• Fluid, multidisciplinary network nodes
• Bring right people to the work
• Agile methodology for default roles
• Transparent, cross domain labour market with 1
virtual pool
* Only IT-related business roles in scope
(application mgrs, EUC, project leaders, …)
20
Create a fluid network organization
AS IS
“frozen”
TO BE
“fluid”
Zero budgeting, zero invoicing bring people to work instead of work to people
21
22
ANNEX
23
Moving budget without moving resources (people)is like buying a car without an engine!
• Governance defines priorities create
workload we have to bring people to work
• 1 project leader / team leader
• Agile is default
• Virtual 1 “flexible” pool cross domain
(development, infrastructure and business)
• Delivery managers
• Demand management
• Transparent internal labor market
• We did not changed organogram or the
organization but we organize our self
different (ignore organograms)
24
Competence centers
continuity
flexibility
innovation
Skills competences
THANK YOU
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