Thoughtful outcomes through experience

Breaking the chains of IT legacy

In retail banking, as in any sector, legacy IT can eat up budgets; limit the CIO’s flexibility to innovate; and reduce the talent pool for technical development.  But there are solutions to help break the legacy chains.

Peru’s survey of Retail Banking IT leaders ‘Turn to Face the Change’ highlighted their concern that legacy IT was one of the biggest barriers to modernising customer facing processes. In fact, almost one quarter (21%) of the technology leaders questioned thought their organisations’ legacy systems were too difficult to change.

The future's bright

However, the world of retail banking IT doesn’t need to be this way. Peru Consulting has regularly helped organisations build a step by step strategy to the future.

While realistic investment is essential, the rewards are are indisputable and it all starts with building a business case.

Reduce cost and risk

A positive first step is rationalisation of the technology base, which can highlight legacy technology and identify unused systems. Technology consolidation comes next, identifying both infrastructure and application inefficiencies and using Virtualisation and Cloud migration to deliver significant infrastructure cost savings.

Finally, a standardisation process which requires the negotiation, or re-negotiation, of strategic vendor deals and focused IT estate governance.

As systems age, patches are less available with vulnerabilities arising as systems go 'out of support' or End of Life. Without investment in modernisation, risk of system failure or security breaches increases - a particular nightmare for retail banks.

Business continuity is also at risk, leading to long-term damage of business reputation. Risk reduction is best managed by a regular refresh of applications and technology.

Breaking the chains

With a compelling business case in place, retail banking IT teams should be asking “what does the standardisation plan look like”?   A Total Cost of Ownership Review can help to answer the questions, along with a number of key components for building a solid platform for standardised technology infrastructure:

  • A clear view of IT assets
  • Sound IT estate governance
  • Implementation of key processes
    • Standards lifecycle management
    • Asset & Configuration Management
    • Patch management
    • Exception management
    • Release & Change management
  • Communicate across the organisation
  • Rationalise, consolidate and standardise IT

 

Read the Full Article here

 Geoff Mellor is a Principal Consultant at Peru Consulting and specialises in IT Strategy and Architecture.  He has worked with organisations including ABB, Syngenta and AstraZeneca.

You can download the Peru Retail IT Banking Report here.

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THE PERU REPORT ON RETAIL BANKING IT

Turn to Face the Change is a survey of 100 senior banking IT leaders and 1,000 UK consumers, highlighting the pressures facing the traditional retail banking sector from customer expectations and agile competition.

For your downloadable version of this 'must read' research, CLICK HERE...