ADBs Digital Transformation Journey 27 June 2019 Asian
ADB’s Digital Transformation Journey 27 June 2019
Asian Development Bank (ADB) at a glance • Founded in 1966 - 31 founding members: 19 regional members, 12 non-regional members - 68 current members: 49 regional members, 19 non-regional members • Headquartered in Manila, Philippines • Bonds issued first in Germany (1969), followed by in Austria (1970), Japan (1970), and the U. S. (1971) • Main Roles: help developing member countries in Asia and Pacific through: (i) combining finance and knowledge; (ii) promoting good policies; and (iii) catalyzing regional corporation and friendship. • 3, 374 Staff (including international staff 1, 242) 2
Annual Commitments of Loans and Grants Ordinary Capital Resources (OCR) and Asian Development Fund Operations (ADF) ($ billion) To date, ADB’s cumulative assistance to the Philippines has reached $19. 3 billion in public sector loans, grants, and technical assistance. Commitment is the financing approved by ADB’s Board of Directors or Management and legal agreement has been signed by the borrower, recipient, or the investee company and ADB. It is the amount indicated in the investment agreement that may or may not be equal to the approved amount, depending on the exchange rate at the time of signing. 3
Our Digital Transformation Journey 4
ADB’s IT Special Capital Investment IT Strategy 1993 -1996 Technology Foundation $ 6. 44 M 5 ISTS I 1998 -2002 Integra (ERP) Backend automation $ 29. 84 M ISTS II 2004 -2009 ISTS III 2013 -2018 Operations automation IT Reforms Modernization program $ 55. 47 M $ 64. 97 M Digital Agenda 2030 Stage 1: 2019 -2023 $ 118. 3 M
We’ve Come a Long Way IT Craftsmanship We are here IT Industrialization Digitalization Outputs and Outcomes Sporadic automation and innovation, frequent issues Services and solutions, efficiency and effectiveness Business and operating model transformation Engagement Isolated, disengaged internally and externally Treat colleagues as customers, unengaged with external customers Secure consumer centricity Capabilities Programming, system management IT management, service management Resourced product management Technology Processes Business-enabling technology Focus Reference: 2019 CIO Agenda Southeast Asia Perspective Gartner
Role of the Chief Information Officer (CIO) Closely work with Management and other executives to create a digital vision for the organization. Leads the development of the digital strategy and roadmap, and ensures its integration with the organization strategy. Defines and reports on digital KPIs and metrics that represent progress against digital goals. Ensures that the enterprise is developing the digital assets and capabilities that will be needed to survive and thrive in the midterm and long term. Builds and maintains external relationships in academia, as well as with industry bodies, vendors and technology analysts to learn and influence. Source: Gartner, Gartner for IT Leaders Tool, 2018 January 7 Acts as a champion in leading the organizational changes required to create and sustain organizational digital capabilities.
Role of the CIO Top Priorities Source: Gartner, Defining the Office of the CIO, 2018 Gartner OCIO Survey 8
ADB IT Structure and Functions Shirin Principal Director Jean OIOD Ozzeir OIRS • IT Strategy & Innovation • Enterprise Architecture 9 • Governance & Reporting • Demand Management • People Management Peter OIOD-SR Brian OIPM • Portfolio Management • Program Management Naoto OISD • Solutions Delivery Governance • Operations, Finance & Banking Services • Corporate Services • Information Mgt. Services • App Architecture • • • Information Security Strategy & Policies Incident Response Information Risk Management IT Assurance Business Continuity / Organizational Resilience Pierre OIID • Technology Ops Governance • Innovation & Engineering • Security Monitoring • App Production Support • Infrastructure Operations • Disaster Recovery Alain OIOD-AC • Resource Management • Financial, Budget, Procurement & Contract Management • Customer Support Services • Communications
ADB’s IT Reforms Modernization Effort Real-Time ADB (2016 – 2019) Real-Time Single Source of Truth Resilient Management decisions driven by real-time data Organizational resiliency allowing staff to work anywhere, anytime Today: Information not accessible on any devices Real-time visual reports, dashboards and analytics Today: Inadequate business intelligence tools Single source of truth Today: unreconciled data spread across 1000 s of spreadsheets Consolidated, simplified, modern systems Financial | HR & Admin | SOV & NSOV | KM Today: Multiple, unintegrated, and difficult-to-use IT solutions 10 Agile
Real-Time ADB 14 Projects Endorsed by IT and Data Committee, 6 Projects Completed and Many Milestones Achieved *1. Nonsovereign Operations (NSO) CRM Credit. Lens Loan IQ Procurement & HR Financials Operations *2. Disbursement Financial System 3. Treasury System Improvement Mainframe Post Trade Processing (MUST) Summit TA Claims Portal NSO Data Mart Pricing 4. Partner Fund Mgt. System Phase 1 Inventory & Sourcing RM Rollout Invoicing, Accruals & Budget Integration *6. Talent Management HR 4 U Talent Mgt Foundation Performance and Goals Mgt Wave 3: Share. Point On. Prem/ Hybrid Adoption and Change Wave 4: Unified Communication Improve Briefing Notes Process Tacit knowledge harvesting Security Classification Community Building Team Collaboration With Share. Point Discoverability of TA reports, TORs Rationalize and Migrate Content to Share. Point Infrastructure Foundation 9. IT Mobility Mobile Phone Mgt Roaming Control Windows 10 and Macbook Baseline Config i. Phone and i. Pad distribution Cloud Services Macbook and Hybrid Notebook distribution Globe SIM Mobile Apps 10. OR Active Data Center 11. Foundation Services** Security Configuration Mgt Payment Systems Security Review e. Learning Identity Mgt (My. Access) Privileged Access Mgt Unified IT Service Desk Chatbot Pilot Endpoint Detection and Response and Application Control Network Threat Behavior Analysis Data Masking Penetration Test Overall Security Review New IT Service Desk Tool ITSM Standards and Best Practices Legend: Completed projects In Progress 12. Enhanced DR infrastructure OR Phase 2 B 14. IT Services* 13. IT Security 11 Introduced new systems for better work productivity • Improved organizational resiliency and IT Security • Streamlined business processes • Provided the tools for work anytime, anywhere • Introduced innovative solutions • Established Hybrid Integration Platform, “War room” Project Monitoring and re-organized IT Structure 8. Content and Collaboration 7. Microsoft Office 365 Implementation Wave 2: Mail Migration • Workforce Compensation Business Foundation Wave 1: O 365 installation Key Accomplishments 5. Institutional e. Procurement Procure to Order *Originally not in ISTS III ** Business case split into 2 Proximity Center Pilot Specialized IT Service Desk Work spaces 11
Updated Policy: Principle-Based Procurement ADB revised its procurement policy from rule-based to principle-based procurement “Various sourcing strategies may be adopted provided that it can be demonstrated that the strategy proposed is consistent with the principles described herein … would improve the procurement outcome for ADB … These strategies may include inter-alia: agile sourcing …” - Appendix 1 Paragraph 2. 7 12
Updated Policy: Principle-Based Procurement $ $ 13 • Adopted elements of agile sourcing on the IT Reforms project. Typical Phases of an Agile Approach includes: • Discovery • Request for Information • Refinement/Shortlisting • Negotiation of scope • Negotiation of legal and commercial issues • The Contract • Implementation Note, “typical” not all are present in all transactions • To effectively track and monitor progress, we have developed project procurement plans, timelines, and online Dashboard
ADB’s Strategy 2030 and Digital Agenda 2030 14
Strategy 2030 Responds to the Region’s Changing Needs Vision Achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining efforts to eradicate extreme poverty Value Addition • Finance • Knowledge • Partnerships Guiding Principles • Using country-focused approach • Promoting the use of innovating technology • Delivering integrated solutions 15
Strategy 2030: Stronger, Better, and Faster ADB • Ensure ADB’s robust financial resource base ü Rationalizing internal administrative and operational costs and exploring various options to generate organic capital • Improving ADB products and instruments ü Responding to diverse client needs by more effective use of tools including PBL (Policy-Based Loan), RBL (Results-Based Lending), credit enhancement products, and local currency financing • Enhance ADB’s human resources ü Ensuring staff mobility, gender and diversity, respectful workplace, performance management system • Maintain a strong country presence ü Advancing “one ADB” approach: further collaboration between private sector/sovereign operations, knowledge work and public relations ü Strengthening field presence in FCAS (Fragile and Conflict Affected States) and SIDS (Small Islands Developing States) • Modernizing business processes and improving operational efficiency ü Enhancing data management, promoting digital transformation 16
Strategy 2030: Stronger, Better, and Faster ADB 101 Enhancing human resources. ADB will expand its talent pool, hire experts in new priority areas, and streamline recruitment processes with the triple objectives of speed, quality, and transparency. It will invest in the training and development of its staff (including operations, leadership, digital technologies, and change management). Training programs will support understanding and collaboration between staff working on public and private sector operations. ADB’s performance management system will be further strengthened to motivate staff and enable a high-performing culture. Staff mobility, including short-term assignments and rotations, across departments and between resident missions and headquarters will be enhanced to broaden staff skills, facilitate knowledge sharing, and promote innovations. ADB is committed to diversity in the workforce, including promoting gender balance and a respectful work environment for all. 105. Promoting digital transformation. To complement business process modernization, ADB will make optimal use of secure, modern information technology systems and digital processes to enhance its effectiveness, efficiency, and resilience. ADB’s digital transformation will facilitate real-time access to data on all aspects of its operations and administration. It will create digital platforms that facilitate the production of a wide range of knowledge products and services and make them readily accessible to partners and stakeholders. It will also support innovative financial products and facilitate a culture of innovation and responsiveness to changing client needs. 17
Digital Agenda 2030 Journey Develop Digital Agenda 2030 Long term vision & roadmap 18 Appointed Core Drafting Team Organized IT Executive Briefing Mission 19 representatives in the core drafting team from 6 VP groups Defined ADB’s ICT capabilities through workshops 26 departments participated More than 120 staff across different levels Consultations on the IT Blueprint 2. 0 Approved Digital Agenda 2030 (31 Oct 2018) Development of IT Blueprint 2. 0 Executive Business Cases (EBCs) More than 160 workshops and meetings with Management, key stakeholders, and technology partners. International Financial Institutions (IFI) and Gartner consultations 100 priorities 16 Executive Business Cases prioritized, developed and approved Preparation of the Digital Agenda 2030 3 updates to President 2 Informal Board Seminar 1 dedicated Budget Review Committee 6 consultation sessions with all board suites were conducted prior to Board approval.
Transforming ADB… Established IT Core Values and Principles and update as needed 2016 Core Values IT Principles • Work as ONE team • Deliver innovative solutions • Create real impact • • • Single version of truth Buy before build Configure before customize Agile, simple and secure Automated end to end process Sustainable Towards 2030 • • Openness and growth mindset Commitment to clients High performing and agile teams Organize for success • • • Dramatically simplify processes Design for modern systems Enable integrated, secure, resilient and scalable environment Encourage real-time, transparent and open data Drive IT Service excellence • • 19
Transforming ADB… • Explored the “Art of Possibilities” through IT Executive Briefings in Singapore. • Conducted Design Thinking Workshops to better understand the business needs – people and culture, process, data and technology. • Conducted regularly ”Be in the Know Sessions” and IT Training and Certifications. • Mobilized a network of over 200 departmental champions that advocates and coach on new ways of working in their respective departments. • Gamification of promotional events with activities encouraging the use of mobile devices to apply the learnings and enhance the change in mindset 20
Digital Agenda 2030 Long Term Vision 21
Digital Agenda 2030 Long Term Roadmap: Run – Grow – Transform Stage 1: 2019 - 2023 Priority 1 “Run” – Establish Core Modern Systems 22 Priority 2 “Grow” – Optimize Core Systems Priority 3 “Transform” – Infuse Innovative technologies Future State
Digital Agenda: 6 Programs, 16 Projects III. Admin & Corp. Services (#11) II. Financial Services I. Operations 1. Sovereign Operations 6. CLASS Upgrade 2. Nonsovereign Operations 7. Disbursement System Modernization 3. Board Information System 8. Cash Operation Optimization 4. Partner Fund Mgt System Phase 2 9. Derivative Valuation Adjustments 5. Corporate Report Automation 10. Risk Management System 11. 1 ERP Modernization Road Map 11. 2 Travel 11. 3 e. Learning 11. 4 Budget & Time Mgt IV. Digital Workplace and Connected Data (#12) 12. 1 Improving ADB’s Data Assets Legend: Business Case Approval 2019 – Approved 2019 12. 2 Digital Workplace, Search and Content Migration 2020 V. Enabling the Digital Backbone 13. IT Infrastructure Services 13. 1 FO Data Center Modernization 13. 2 Robotics Process Automation 13. 3 Videoconference Room Modernization 13. 4 IT Resilience • • • 13. 5 Infrastructure Services Delivery Optimization IT Automation Real-time Monitoring & Anomaly Detection Data Infrastructure Services 14. Cybersecurity 14. 1 Better visibility, detection and response 14. 2 Improved cybersecurity practices and controls 14. 3 Compliance with international standard and practice 14. 4 Regular verification of security controls and tools 15. IT Service Delivery Optimization 15. 1 Program & Project Assurance 15. 4 IT Service Mgt Phase 2 15. 2 Adoption & Change Mgt 15. 5 Vendor & Service Level Mgt 15. 3 FO Engagement & Support 15. 6 Advanced IT Learning Environment VI. Laying the Foundation for the Future State (#16) 2323 16. 1 Digital Innovation Sandbox 16. 2 Digital Fitness 23
Digital Agenda 2030 Long Term Roadmap 24
Critical Success Factors • Leadership and strong support from Management. • Strong business sponsorship, and active engagement from users. • Commitment to simplification and automation of business processes. • Delivery of Proof(s) of Concept from prospective vendors before choosing preferred approach and solution(s). • Collaboration between ADB and selected strategic partner(s). • Effective adoption and change management program • Openness to an innovative and adaptive culture (e. g. Agile, design thinking, opportunity to optimize structure, managed services and outsourcing) 25
How do we make all these real? We need to change the way we work. ? Our Culture 26 Our Processes Technology Our Future
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