Migration Programmes Using examples from Irish Migration and Sampo Migration and other personal experiences 13 th of March 2013 Underdirektør Erik Andreasen

2 2 What will be covered Danske Bank Group and IT Organisation and plan The change Implementation - M(migration)-day Round up – figures and some lessons learned Time for extra questions

3 3 We are a universal bank in our Nordic home market Strategic Business Units Danica Danske Capital Nordania Strategic Business Units Danica Danske Capital Nordania We are also present: Poland Luxembourg Hamburg London New York St. Petersborg Moskow We are also present: Poland Luxembourg Hamburg London New York St. Petersborg Moskow

4 One Group – One Platform A Strategy of doing things the same way everywhere Channel Branches Contact Centre Internet Homepages Finance Centres ATMs Product Forex Securities Treasury Cash Management Cards Currency Fees Payments Customer output Interests Group Finance Core Organisation Accounts Customer Data Warehouse Brand Teller Cheque CRM Bookkeeping Corporate e-Banking Retail e-Banking Loan Markets Online Telephone Banking Trade Finance Workflow Asset Management Customer Packages Business procedures IT Group Security Customer Advisory Tools Customer Portal Asset Finance Intranet Portal Custody Business Controlling e.g. Credit, Risk, GMI & ERP/Axapta Insurance & Pension

5 One Platform - a journey since 1990 Östgöta Enskilda in 2000 & 2002 Danske Bank Polska in 2003 Fokus Bank in 2001 Hamburg Branch in 1999 Danske Bank Intl. Lux. in 2003 BG Bank in 2001 London Branch in 1998 Northern Bank/National Irish Bank in 2006 Sampo Bank in 2008

6 Danske Integration Model – Portal Best Practice / Lessons Learned 3 primary tracks incl documents from 125 areas. Align with Danske Banking Concept Reference is for all areas mandatory

Migration Organisation and plan

8 Migration – Program Office Overall project management for The Migration Project Responsible for the overall coordination of the migration projects Ensure the coordination to all parts of The Integration Project in relation to the migration, including new group members and external parties (both IT and business projects) Chair the Migration Steering committee and participate in the other steering committees and relevant working groups

9 Programme Management, Programme Offices and workstreams Programme Management Programme office New Functionality Organisational Implementation TestTechnical Infrastructure Risk and Concept Products and Processes TransitionCustomer Output Data Conversion Economy and Administration Programme office

10 Migration Projects – generic reference Local Project responsible Local Project responsible Project manager

11 Success for projects When: Keeping the deadlines within the overall plan Delivering high quality and customer satisfaction Keeping the costs within the budget

12 Programme planning and status reporting Planning with time boxing Follow-up on overall level Use project indicators to identify critical areas Status every second week Open and honest status available for all Only one status on programme and project level

13 Overall strategy for the conversion “Big bang”- implementation, Analyse the possibilities to migrate some areas during transition Manuel conversions where applicable

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Migration M-day

Danske Guides were recruited to support Sampo Bank branches 2 weeks after M-day 23 Guides 12 Guides 48 Guides 45 Guides 182 Guides Danske Guides plays an important role : Skills in the Group systems and processes on-site Representing the fragmentation and the similarities of the group Their support to the Finnish colleagues is critical for the success of the integration They will add new experiences to their own “luggage”

17 Command Centre setup for Sampo Migration Communication-lines Overall status Project.. Project C Project B Project A Command Centre, Ejby Controls/Administration/Ad hoc tasks CC - Primasoft CC - Sampo Bank CC- IBM - DK

18 Figures from Migration Programme 750,000 development hours 500 e-learning modules 5,000 conversion controls 2,500 employees involved 4,500 conversion programs 80 projects under Programme Office 60,000 test cases 200 branches 3,000 new employees operational 3,000 new PCs Change and upgrade of network “Normal” telephones replaced by IP telephones

19 Some lessons learned Using a proved concept helps a lot It is very important that all projects are following the overall plan Budgeting of a migration program is a complex task It is very difficult to manage the many 3. part activities The state of readiness the acquiring organisation is an important factor Process descriptions is important from the very beginning Lack of data quality in old systems shall be addressed properly To ensure total quality a centralised test coordination is important Command-center set-up is necessary with big bang implementations E-learning is effective Focus on the organisational implementation is vital Historical data can be more complex than actual data Follow up on the implementation have to be carried out to ensure the benefit

20 Some lessons learned – programme steering One leader (Programme Manager) with power to take necessary decisions Make simple and easy understandable objectives Make clear interfaces between projects Coordination of plans and sub deliveries at a steering level Let the project leaders run their projects Give all messages of the changes from the start, so all frustrations will be overcome at once. Ensure a structure with narrow steering of demands for changes