1. B ANKING I NFORMATION S YSTEMS L ECTURE 9

2. Make or BuySelectionImplementationOperation Phase 3: Implementation

3. Methodology RAPID - Redesign through Application Package Iterative Development MIR - Multi-site Implementation and Roll out

4. RAPID This method is intended to be used on projects where a significant degree of redesign around core/strategic processes is desired, with a package serving as a primary enabler of that effort. At this point, the package has already been selected. The method includes comprehensive guidance to deal with the organization design and change management issues inherent in a package-based engagement.

5. RAPID Advantages 1. RAPID is a comprehensive and covering all aspects of a large package implementation, where the package is seen as an ‘enabler’ of business change. 2. The main characteristic is its business-oriented approach towards large-scale IT projects. 3. RAPID integrates people, processes, and technology aspects within its main phases. 4. RAPID ensures process innovation and improvement and reduces delivery time and risk.

6. MIR The MIR framework is used when a package or a specific solution needs to be implemented at a number of sites (international or otherwise) within an organization. MIR is specially developed for a roll out of a solution at multiple locations (branches, countries, regions)

7. MIR Framework Objectives 1. Provide a flexible delivery structure which can be easily tailored to suit any specific client situation 2. Help in delivering integrated services 3. Lower risk of failure 4. Provide a platform for operating units to share and leverage best practices to support the framework

8. Make or BuySelectionImplementationOperation Phase 4: Operation

9. After the implementation, the actual operation starts. At the beginning, employees and management have very high expectations of the newly chosen solution. But these can easily be damaged. Production problems will occur and requirements will change over time.

10. Phase 4: Operation It relies on a well-thought-out maintenance phase and support by both supplier and internal experts. Various options for maintenance are available. You can decide independently on both the way in which the maintenance entity is organized and the location of this entity.

11. Organization In-house Outsourcing

12. In-House IT infrastructure, release management, testing and customer support are managed within the company. This requires the availability of employees with first- line technical and functional expertise in the package. The supplier can provide second-line support. This option is preferred if the application incorporates many tailor-made solutions and interfaces.

13. Outsourcing In this option, the bank delegates the activities to a third-party entity that specializes in that operation. The activities can range from pure hardware operations to complete business processes.

14. Application Outsourcing Software as a Service (SaaS) The service provider manages and distributes software- based services and solutions to customers over a network. Process Outsourcing Shared Services Center (SSC) Transaction Bank Business Process Outsourcing (BPO) Specialized Forms of Outsourcing

15. Process Outsourcing A shared service center is a professional organization, executing specific business functions for clients. The same functions are executed as in the first option, but now they are shared with one or more other departments. Shared service centers are accountable for the services supplied. The main objectives are cost efficiency and improving quality. The main disadvantage is the dependency on the other parties. Shared Services Center (SSC)

16. A specialized company for processing specific operations (for example payments or securities processing) from a bank. The Transaction Bank is often a joint venture between an IT company and a number of participating banks. Transaction Bank Process Outsourcing Business Process Outsourcing (BPO) BPO is the contracting out of a specific business task to a true third-party service provider.

17. Location moves operations or jobs from internal production to an external entity in a nearby region of the world. Near shore moves operations or jobs from internal production to an external entity within the same country. Onshore moves operations or jobs from internal production to an external entity in another region of the world. Offshore (Far shore) leaves part of the service within the client facilities. On-site

18. Reference -van Dorsten,G., Spruit, A., & Barendsen, A.(2008). Core Banking Systems Survey: Survey results 2008.https://www.no.capgemini.com/resource-file- access/resource/pdf/Core_Banking_System_Survey_2008.pdf