1. Manage ICT as a business Constantin Mareş, ICT Director 12 th April 2005

2. 2 Agenda ING… What is process management? Why process management? Lessons learned

3. 3 ING Romania is part of ING Group Financial institution of Dutch origin Offering banking, insurance and asset management services 60 countries and about 112,000 employees.

4. 4 ING Romania covers 63 cities through its bank branches and insurance agencies Employs 800 full-time staff, also benefiting from a network of 2,000 insurance consultants. In 2004, ING celebrated 10 years of presence on the Romanian market, being the first international bank to open a branch after 1989.

5. 5 IT services 800 employees 2000 tied agents 3 business units From Information planning to building and maintenance of systems From Account management to exploitation Full lifecycle development

6. 6 What is a process? Processes were originally created as tasks for people to perform. People managed the process flow, the rules and the services Later, automated processes replaced human ones — knowledge was encoded into the systems doing the work

7. 7 What is Process management? Where does work start and finish? What tasks/decisions need to be monitored and managed? What business events advance the flow of work? How does business want to measure process improvement? At which tasks/decision points is change most likely to happen? How often?

8. 8 Integrating Processes to Achieve Operational Excellence Time is money Reduce latency/ Streamline the process Straight-through processing Time to market Reduce complexity/ Lower the learning curve Call center operations Sourcing options Balance resources to workload Workforce utilization Cost control Reduce error rates Six Sigma program Lost or redundant work Close gaps at handoffs Process integration Process Improvement Objective Business Alignment Value Metric

9. 9 Why Adapt? Markets are changing more rapidly and in less predictable ways With rapid change, the predilection of human beings is to “go tactical” Tactical solutions to strategic change is a characteristic of endangered or extinct species! Operational: Paddle the board Tactical: Catch the wave Strategic: Don’t surf with sharks

10. 10 Why to adapt (2) Business decisions impacted by:  CEO — “Growth and revenue”  CFO — “Continue to cut costs” Business decisions impacted by:  Shorter economic cycles  Increased competition  Globalization, M&A  Push for information transparency and security Desire to become “real time,” “adaptive,” “on demand” enterprise Regulatory requirements IT organizations under enormous pressure! Seen as an Achilles’ heel or a white knight?

11. 11 Why to adapt (3)? “80% of IT organizations are experiencing IT operational issues as a result of poor or nonexistent process formalization (e.g., resource allocation issues, poor process integration, difficulty in effectively prioritizing work efforts, organizational structuring issues, insufficient metrics to show process effectiveness/ governance).” META Practice Copyright © 2004 META Group, Inc. All rights reserved. 1 October 2004

12. 12 Bottom Line We develop great systems for our customers; yet, if we look at our tools to manage our processes, we’re not wearing any shoes Spend more time on establishing goals for business adaptability (where, how much?) than on technology selection Given the immaturity of the BPMS technology market, think strategically yet buy tactically Focus on good SOA design, extensible XML, multilayered models, process analytics, performance incentives, and exposing rules Recognize this is not the last tool you will buy for process design, development, deployment, and enhancement Pick a project that crosses at least 3 boundaries — an application boundary, a people boundary, and an information boundary

13. 13 Success factors Sense of urgency Management commitment: T, €, E Mission, vision, strategy and goals are clearly stated Clear focus on priorities Integrated & balanced approach of transforming (processes, people, culture) Facilitate and stimulate search for synergy and co-operation(though organisation, funding and reward) Change is completing many small steps successfully

14. 14 Specific Pitfalls & Lessons Process Improvement is not a ‘sprint’ but a ‘marathon’ Process Improvement is only a matter for the ‘staff’ Quick wins increase the acceptance Line-management in the driver-seat Focus on both practical and behavioural issues Don’t forget the Cultural change

15. 15 Results 90% of the projects on time and within budget (10% margin) Cost reduction Facilitation of in and outsourcing No projects cancelled during the runtime Major contribution to the overall result: In 5 years an 80% increase in number of transactions with half the number of employees and a 50% reduction of price.

16. 16 Thank you for you attention !

17. 17 Q & A