IT Investment at North American Financial
* CEO: Bill Harris
* CIO: Caroline Weese
* CFO: Matt Harper
* Senior IT Infrastructure: Brenda Liu.
* VP of Business Banking Product Management: Cathy Benson * Director of Financial Strategy: Michael Cranston
* Director of Risk and Compliance: Ian Ha
* Head of Retail Banking: Sam Patel
1) Inconsistent alignment in IT budgeting and Enterprise strategies: * Business Strategies & IT goals change rapidly,
* IT strategies do not link to budgets
* IT resources is allocated according to size of business dept
*** Business Impact:
* Rigid budget process => IT struggling to keep up with the resources (refer to Budgeting and IT strategies) * extremely difficult to allocate resources strategically
2) IT budgeting and implementation based on business functional silos * Lack of involvement of executive in implementation of business strategies in lower business dept. * Project approvals and implementation were made by business unit w/o cross-unit synergies * Create system duplication (exp: 18 diff project for anti-money laundering) * New system = new interface, data, dependencies
* Didn’t explain the benefits of reducing duplication & simplification.
*** Business Impact
* Most of IT spending 60% is on maintaining existing systems, 20% is for government legislation
3) Lack of project high level controlling & tracking processes * Focused on on-time, on-budget delivery. No ongoing tracking on project’s benefit, feasibility * Business case formats are inconsistent, data lack rigor * Monitor business unit after project is out of scope for IT dept
* *** Business Impact
* IT lack transparency, credibility => damage relationship & internal credibility. * NAF’s executive don’t see the value from IT investment Recommendation:
1. Create IT Investment Office:...