Cloud O365. Just a tool swap? The KBC Experience pioneering public cloud computing in the European financial market. Kurt Mees IT Programme Manager

Transcription

1 Cloud O365 Just a tool swap? The KBC Experience pioneering public cloud computing in the European financial market Kurt Mees IT Programme Manager

2 Agenda Business Challenges & Use Cases for KBC KBC s Public Cloud Journey O365 Transition & Migration Approach 2

3 3 1 Business Challenges & Use Cases for KBC

4 Current environment End User requirements at KBC 4 Collaboration needs based on company strategy ( Bamboo, NWOW) Mobility working, E-Learning Users expectations on office computing platforms (BYOD) Business initiatives requires IT support (new branches set-up) IT Challenges at KBC High cost for basic office support Effort to follow platform upgrades limits the introduction new functionalities Implementation of AnyTime, AnyWhere, Anyhow strategy Complexity of multiple tools with little integration. Challenging support of mobile devices and computing platforms

5 Driving KBC to Reduce ICT costs at infrastructure & support level Enable scaling and simplify license and maintenance management Continuously increase efficiency and possibilities by frequent introduction of new functionalities to the end user Faster time to market & value for the end customers of the business resulting in a stronger market positioning 5

6 The Cloud Journey 6

7 Messaging & Collaboration: Our Environment till 2011 KBC Belgium Office Tools (word, excel,powerpoint) Communication Chat, Web conference (2011) Phone Video Conference Content Sharing Social Collaboration (2011) Intranet Microsoft Office Lotus Notes SameTime Avaya Polycom Network Drives Quickr (2011) Connections Multiple 7

8 The way forward Microsoft Office 365 offers an integrated messaging & collaboration platform with improved productivity for the end user and a future social platform 8

9 Use Cases for Business Bamboo Teleworking New Learning CRM 9

10 Bamboo Checks advisor status- Lync on touch-enabled tablet verkopen via tablet Financial Experience Enabled by Touch Touch to video conference loan calculation to customer 10

11 Teleworking Multiparty HD Video Conferencing Improved Coauthoring Shared note taking with OneNote OneNote automatically populated with meeting data including attendee 11 2 juni 2014

12 New Learning mobile learning CFP Certification Requirements Create YouTube-like video experiences through Search Investments- Tax Updates 2013 CFP Training CFP Insurance Plans Investments- Tax Graphical refiners let you modify your query Employee Benefits Tax Planning Asset Protection Required for CFP. Training on the new tax updates for 2013 related to investments. Covers changes in the taxing financial investments for individuals Access lecture, research files from anywhere by saving to cloud Retirement Planning Estate Planning Improved view during lecture; use stylus to annotate and as laser pointer Financial Planning Add document, media file links directly in your lecture notes View video thumbnails without leaving your search page Access content on most devices; enable BYOD 12 Roaming Office, SkyDrive Pro Presenter View in PowerPoint Embed files in OneNote Participate from any device

13 CRM coming in oct 2013 CRM is at the heart of doing business within KBC Corporate Banking migration to Outlook will leverage the current benefits of CB CRM 13 ficticious screen CRM integration with outlook

14 14 2 KBC s Public Cloud Journey

15 Why changing the environment to Cloud? Cost High Cost / user Fixed cost in downsizing market condition User experience Existing Tools made by engineers for engineers Multiple outages during 2011 Little integration Support Existing tools are loosing global market share drastically Support is scarce in market, therefore expensive The New way of Working Steer on Results Leading based on trust More freedom on time & location Supporting facilities 15

16 Initial Risk assessment Concerns of Cloudcomputing: Will my data be save, no steeling, hacking Can I live with standardized service & unpredicted change management Will the selected provider as a service partner survive on long term Can I step out migrating back to the on premise situation if poor service Opportunities of Cloud- Computing: Offers many compelling advantages, including security advantages, due to higher specialization, better technology and economies of scale KBC's current infrastructure is not perfect: risks also exist today Limited scope of data (no customer databases or financial transactions) Assurance received from reputable third party auditors & standards Commercial incentives for service providers to take into account KBC's concerns, even when not explicitly set forth in contract 16

17 Main issues to be addressed upfront Risk assessment agreed with CRO Group: Shift of control, focus on standardisation and lack of transparency represent risks impacting outsourcing, bank secrecy & privacy rules Extensive risk assessment: evaluation from a compliance, legal & security perspective Positive advice of Group Value & Risk management Validation by National Bank of Belgium (NBB) No known examples of EU banks who have moved to the public cloud with prior regulatory approval NBB Circular on Outsourcing applies (letter 2012 all cloud computing qualifies as outsourcing A number of topics to be clarified and negotiated (KBC - NBB - MS) mainly addressing: auditing, data protection and security Rules for foreign regulators are very simular cloud computing is now possible in the financial sector, but an in-depth risk assessment and strict controls are mandatory 17

18 Legal rules for the financial sector Operational requirements - outsourcing policy - in-depth due diligence & risk analysis during selection - monitoring service provider s performance - maintain in-house knowledge and expertise - solvency & concentration risks of service provider 18 Contractual requirements - limited duration & easy exit (transition of cloud data to new provider) - audit possibilities - difficult to reconcile with cloud (number of customers) - control over subcontracting - written service levels - government access requests - Belgian law, compliance with future legislation? 18

19 Legal rules for the financial sector Service provider requirements - notification of security breaches - disclosure of data leakage - business continuity measures - use of sufficiently common and well-known technologies - maintain sufficient documentation - define responsibility matrix (alignment of operational processes) Lessons learned: involve legal, compliance, risk and audit from the very beginning

20 20 3 O365 Transition & Migration Approach

21 Critical success factors Limit duration of the migration because of limited coexistence possibilities 13 Months of prep no impact to end-users - On-Premisse infrastructure setup (Authentication, DDOS mitigation,..) vs. cloud infrastructure setup 5 Months of actual migration (8 waves + 1 pilot for mailboxes shared mailboxes) impact to end-users Limit size of data to be migrated Focus on core functionality first Emphasis on change management moving to the cloud is mostly a business change, not a technical change adapt to standard services mindset, instead of customization take care of internal compliance & security changes Do not forget legacy applications and end user computing solutions! 21

22 Legacy applications: Clean your attic before you move Microsoft Best Practices Light Assessment Detailed Assessment 100+ Original Notes Databases: Scope of detailed analysis: 400+ unique Lotus Notes application Final number of target apps: 100+ KBC 4652 Initial application assessment inventory 384 Applications to be considered for survey 111 Migration estimation basis Total databases scanned across 8 servers Reduction through analysis of application portfolio data Applications to be considered for Detail Assessment or Application Migration 22

23 Timeline Analysis Idea RFI Vendor Select Migration Prep Technical Setup Pre-Pilot (20) Pilot (650) Migration / /2014 Prep Phase User Experience (200) Risk Assessment / NBB Validation Business Case Contract T&Cs Migration Prep Change Program Detailed joined planning Training Ambassador Program User Forum FAQ Migration (20.000) Operational Readiness 23

24 Timeline Analysis Idea RFI Vendor Select Migration Prep Technical Setup Pre-Pilot (20) Pilot (650) Migration NBB regulator Validation track on critical path / /2014 Prep Phase User Experience (200) Risk Assessment / NBB Validation Business Case Contract T&Cs Migration Prep Change Program Detailed joined planning Training Ambassador Program User Forum FAQ Migration (20.000) Operational Readiness 24

25 Why investing in Managment of Change? Objectives Increase Adoption Rates - Provides User Satisfaction - Secures Business Case and ROI Reduces Adoption Time - Reduce Time to Productivity with new solutions 25 Implement New Way of Work (NWoW) - Introduce more effective ways of doing things - Introduce new capabilities - Influence and change work patterns - Support new work styles: work@home, mobility, flexibility

26 Additional cost savings not considered in the Business Case Quantification Knowledge worker productivity gains Based on results Forrester research Methodological assumptions for application to KBC Conservative assumptions 50% of total population is impacted half of them identified as most impacted Information workers Sample calculation for year 1 based on current roll-out plan Assumed efficiencies Average efficiency increase of Information worker Average efficiency increase of Mobile worker Decreased travel cost/time loss due to online collaboration, conferencing 26

27 Benefits in reach: 15 mio /year based on results Forrester research potential KPI s to define: efficiency increase of Information worker efficiency increase of Mobile worker decreased travel cost/time loss due to online collaboration, conferencing 27

28 Office KBC Started with Office 2010 in 2013, preparing Office rollout Nov 2014 (-> pace to upgrade increases)

29 KBC 29

30 Lync availibility: KBC BE entitities (incl. foreign branches) Group entities CE (CZ, SK & HU) Lync audio calls /week Lync AV conferences /week 30

31 Outlook 31

32 Migration progress user mailboxes status March 2014 Status overview: Success rate migrations > 99.50% ~1500 to 3000 boxes/wave < 200 calls helpdesk on monday 66% didn t read prep material < 1% issues per migration wave: ~20 mailboxes have intervention (picked up next wave or corrected on Monday) 32

33 Sharepoint / OneDrive My Drive in the cloud 33

34 O365 playing field Using the example of the existing collaboration workplace for a HQ employee in BE My Personal part I m part of an organisation Ma il Personal drive Calend ar Tasks drive dienst CCS net drive DIR Connection s Project drive Quickr Project Confluence Bnet Quick r ADlog HR4U ICT net Kennisbank Voice & Video Physical meeting Phone I m working on projects I m involved in structural processes Presence awareness Chat Conference call I m expected to know procedures I m involved org. communities I m involved social communities I m working international Pearl community Mijn community LN community Pitch Linkedin Youtube Faceboo k Ma il Sametime/l ync Ma il Video call Lync call Softphone GSM Video Conference I m working with external partners 360 Video Conference 34

35 O365 KBC consistency layer Expectations Business: What is your ambition towards O365? My Personal part My projects I m part of an organisation My processes My procedures My KBC communities But having one tool is not a guarantee that the workplace is well designed. It is the other way around: if you do not explicitly think about the total picture, you will end up with chaos. My social communities My International contacts My Externals contacts One Network (not to build on top) ambition Search everywhere Reduce current solutions and evolve to a single environment. Seamless integration increasing efficiency. Reduced complexity to maintain and use by using a single environment. 35 Good end-user experience, efficient search,..

36 SERVICE PROVIDER FOR