Why EDB went GlobalIKT Norge seminar

May 6, 2010

Tom Scharning

Why EDB went global

How to establish a global delivery model

How we do it

Risk and security

Status & Achievements

Agenda

Why globalise ourdelivery?

EDB challenges

EDB customer delivery

commitments can not be met

with Scandinavian resources

alone

EDB and EDBs customers need

access to highly skilled

professionals without

compromising security or quality

EDBs needs to increase

competitiveness and scalability

to ensure future deliveries

Transformation and continued innovation

2005 20072006

Established

critical

mass in IT

operations

Focusing

on core

business

areas

Building

application

servicesBuilding

solutions

portfolio

Expanding

global

sourcing

Expanding

global

delivery

capacity

2003 2004 2008 2010

Agility and

improved

innovation

Telenor IBM

Capgemini

TAG

BANQITSPRING

Avenirtre60

Datarutin

Guide STI

CEKAB

Infopulse

Team R3

Miratech

SPAN IS Partner

EDB in brief

Key figures 2009– Revenue NOK 7.5 billion

– EBITA NOK 603 million

– Total order backlog NOK 12.6 bn

– Number of employees 6,000

Business areas– EDB Consulting Group

– EDB Solutions

– EDB Outsourcing

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EDB 2010

Norway

Sweden

India

Singapore

USAUkrainaContinentalEurope

Denmark

UK

How we do itMethodology

EDB's 3 models for Global Sourcing

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EDB 2010

Embedded

Global Sourcing

Scandinavian

Global Sourcing

EDB Pavilion

Integrated into EDB's

production of services:

IT operation, Solutions,

Application services

A combination of

Scandinavian PM:

Using resources

from India or Ukraine

A dedicated

customer team

All customers

Customers with

AD or AM needs

preferring to buy

services from EDB

IT departments with

AD or AM needs where

the customer retains

a high degree of control

Suitable forDescription

Embedded Global Sourcing

Methodology approach

Stabilisation

Controlled after care

period

Establish internal

contract for service

delivery and follow

up

Hand over meeting

Migration

Intensive work

shadowing period

onshore or on-the-

job training local

Provide run-books

Migrate processes

global

Go – No/Go

meetings

Documentation

Describe and

analyse processes

AS-IS

Define processes

TO-BE designed for

global deliveries

Global processes established

ITIL - Problem management:

Redefined process workflows to a

local/global design

Basis for training during migration

and documentation in QA system

All new processes and workflow

based on a global delivery model

Step-by-step change to

geographic independent workflows

Enabling global deliveries in IT operations

Establish global hubs as a seamless

integrated part of all IT Operations

delivery platforms

Ensures IT Operations customers

access to highly skilled professionals

Improving EDBs competitiveness and

scalability

A combination of local and global

resources will ensure control and flexibility

Enable profitable growth for the customer

and EDB

IT operations delivery locations

Tampa

Oslo

Kiev

Stockholm

Bangalore

Singapore

Ukraine:

Desktop remote support

Open and DB

Application Packaging

Monitoring centre

HelpdeskIndia:

Mainframe

SAP

Scandinavia:

DataCentre, Storage

Network (Infrastructure)

Implementation capacity

Continuity capacity

Singapore:

Monitoring

Industrial IT operations

US:

Monitoring

Industrial IT operations

Bank/ Finance:Centres of excellence

Leading

supplier of

solutions for

the Bank &

Finance sector

in the Nordic

Oslo: 950 FTE– Core bank solutions and multi-channel solutions– Statutory reporting, card and adm.solutions

Bergen: 200 FTE– Security and anti money laundering– Payment systems

Trondheim: 220 FTE– Multi-channel (mobile banking, internet banking, portal)– ATM and Point of Sale (POS)

Mo i Rana: 150 FTE– Card personalisation– Fraud detection and card services

Stockholm: 120 FTE– EDB Card solutions for payment cards (POS and ATM)– Implementation and projects

Kiev: 80 FTE– Working on different areas together with Nordic Centers– Mobile applications, technology conversion etc.

FTE = Full time equivalent

India: 15 FTE– Security testing, – Performance testing

SAS has an HCM platform based on

SAP, including payroll for the

Nordics.

SAS wanted to upgrade the platform

and outsource the AM of the whole

platform including interfaces to 3rd

party systems.

Challenge

Application Management for SAS

Reduced AM delivery cost through

Scandinavian specialist capabilities

backed up by near-shore resources

Specialist resources from one partner

covering the whole platform

Framework for support and imple-

mentation of HCM business process

Dynamic availability of IT-specialists

and peak resources

Solution

Nordic capability

Specialist competencies in all Nordic

countries

Customer knew EDB from start –

Professional partner

Combination between Near sourcing

from Bulgaria and the Nordics =>

Price

Respons

Annually reduced cost for the delivery

of AM

From EDB side the upgrade will be

productive according to plans

Nordic SAP HCM Setup

Achievement

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EDB Consulting 2010

On site AO/BO delivery costly for

customer

System documentation not satisfactory

Existing team more than 10 years on

system

Cost not competitive

Challenge

Oracle AO using Offshore resources

Reduced cost, improved customer

interaction and improved governance

Implementation of Oracle best

practices i.e. AIM standards

Preparation of run books, other

documents from scratch

Offshore Contingency plan

documented

Governance model redesign

Status reporting stabilized

ROI reporting to customer

Solution

EDB-SPAN moved AO/BO from

existing vendor gradually to offshore

E-business Suite 11.5.10.2 on HP-UX

- Three Oracle instances

Artemis, MGWP (queuing) , FDW

(Financial Data warehouse)

Over 2000 Jobs run daily, Using

Control M scheduler

Respons

Proactive Incident monitoring and

reporting

Improved customer interaction

Improved processes

Faster Closure of AO Application

incidents

Initiated review of project governance

Building business specific knowledge

repository

Realized cost reduction

Achievement

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EDB Consulting 2010

Fast ramp up of resources

High Attrition rate at HPC/Amex

Needed quick time to market to

serve orders and clients

Implementation, Reengineering,

Production fixes and Support.

Knowledge Retention/Lack of

Domain knowledge

Night support

Challenge

Electronic billing and payment services

Faster time to market, higher

quality of services, dedication to

customer satisfaction 24/7

Defined process for smoother

transition

Middle level management

sponsorship at onsite.

Maintaining a healthy onsite

/offshore resource ratio

Start with small to medium team

and ramp up for smooth

engagement

Solution

Dedicated Pavilion Team, Low

attrition at SPAN.

Knowledge Base development &

SME Creation.

Cross training in niche technology

Offshore cost and time

advantages

Respons

30 mill USD savings on Manpower

Faster time to market for

HPC/Amex solutions

Increased clients and sales

Improved documentation of core

system

Value engineering in business

process

Achievement

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EDB Consulting 2010

Risk & SecurityRisk & Security

Risk approach

Today a known production in known

environments

Establishing and transformation of

production teams demands precautions

A global delivery model demands

transparency in the complete work

process

Legal and international regulations must

be considered

National risk level at all production sites

must be evaluated

Securing well functional continuity

solutions on a global basis

Risk

level

EDB

Nordic

Resources

Risk

level

EDB

Global

Resources

Risk

mitigations

to close gap

Evaluate areas open to migration to new location

Reconcile security and criticality regarding possible area

Define tasks and value chain parts possible to migrate.

Qualify processes and solutions for the global delivery model and

migration

Train employees and adjust the new work chain in order to secure

future delivery

Update all processes, procedures and solutions

Migrate the operation into the global delivery model

Qualify continuity solutions

Audit all work processes and solutions on regular basis

Regular updates of all processes

Security in the migration process

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EDB 2010

Evaluate and

Select

Prepare

Migrate

Follow up

Status and Achievements

Increased security – role based access Improved control on removing root causes (PM) Improved logging, reporting and analyze More proactive work Stable Operations – No critical incidents in 2009

New and good skilled colleagues Positive cooperation onshore/offshore Proactive view of internal processes

More flexibility local Faster upscaling by new needs Increased productivity

Improved internal interfaces – Updated generic procedures Run books on operation tasks Documentation in English Better control on End of Support Taskforce work with global participants

Over all achievements for EDB

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EDB 2010

Improved

Quality

New

Knowledge

Scalability

Increased

transparency

More value from EDB

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EDB Consulting 2010

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EDB 2010