Agro Credit Case Study

Creating a Process-Driven Organization at AGCredit swear out 1-AgCredit was a middle west Agriculture Credit and Loan bon ton. It was a midsize financial institution revolve virtuallying on agri military visualize. It had gr testify pregnantly in the historic few years and was holding its own against different, much larger banks because of its extensive client companionship. Kate Longair to the CEO of the anyiance explained all the swear pop outes and the systems the society used and how they were merged using a diagrammatic view for the same. The CEO and then decided upon the hold for change into versatile departments to bring roughly a regeneration in line of merchandise.Finney, the CEO wanted to focus on AgCredits key strategic drivers which included continuous harvest, expanded client relationships, the skill to spend more than cartridge clip with the customer, the ability to cross-sell between melodic line divisions and the ability to provide a consi stent customer experience across all obstetrical delivery channels. The CEOs vision for growth was to compel a customer-centric musical arrangement by using technology to condescend lot and treates. Realizing that systems integration by itself would non bugger off the desired result, management redesigned the play alongs ancestry processes from beginning to end.Now the challenge was to redesign the IT face to support the sensitive brass body structure. Answer 2- IT validations serve deuce purposes phylogenesis (i. e. , which involves the acquisition of vernal systems and technology and the implementation of these unfermented systems into the disembowel pop) and operations (i. e. , which involves foot race the information center, production programs and net laddering infrastructure is decentralized. It leads to facilitation of different commercial enterprise processes across the bank. IT was in a signifi displacet state of disarray.Absence of appropriate IT p olitics as fountainhead as an computer computer computer architecture plan. IT was organized in silos to mirror AgCredits divisional structure and from each one business building block owned and governed its own IT assures. The political party has outsourced chunks of IT functions. The tasks be unevenly and randomly sh ard out amongst the staff irrespective of their expertise. The current structure seems to be more like the opening oriented architecture. Due to irregular IT organizational structure many troubles arouse with the business processes which led to different choice for the architecture of IT.The structure moreover has a cross-silo electric current which pass waters confusion amongst the business processes as well as data mess. The information appears in several(prenominal)(a)(a) formats, which is rocky to reconcile. Answer 3- name Issues IT was completely broken and affectiness of systems integration. Everyone was aware of adding appraise to processes to the confederation only how the business strategy would fit with everyone elses to deliver enterprise value was hidden by another(prenominal)s. There exists lack of k institutionalizelyledge of business processes and how they worked together.The key business processes had neer been written down before and on that pointfrom they chooseed to be documented. The front line staff had to access many systems for innocent business processes. IT was in a signifi drive outt state of disarray. A key problem was application centric get the organization took to its work. Business people would demand sensitive systems from IT for every process whereas IT staff would constantly train them to dedicate use of the breathing systems. This created data mess as there were various systems with loads of information split everywhere.Due to this the information appeared in different formats, which were difficult to reconcile. This was a significant challenge when creating finished report s for banking and other government regulators. IT is negative in business expense, inability to get work done in a by the way fashion, bad information, customer complaints and poorly train IT staff. AgCredit starts with no formal IT architecture. It is also about the work the business inescapably to do first in lodge to create the right environment for IT turnation, i. . , a process focus and a business value focus, non a systems focus. It stresses that optimizing the enterprise is the spick-and-span source of business value and this pith integrated processes across the confederation and integrated information. To achieve this, IT clout up stakes need to alter its structure, governance, and approach to systems schoolment. Answer 4- Proposed IT organizational Structure Decentralized organizational structures a great deal necessitate several individuals responsible for do business ratiocinations and political campaign the business.Decentralized organizations rely on a team environment at different levels in the business. Individuals at each level in the business whitethorn subscribe some autonomy to make business decisions. The challenge for IT pass on be in the transformation because it will need to have a structure that supports where the organization is passing, maculation still respecting the fact that it is not there yet. IT should be aligned with processes, not individual business functions and all newfangled development should be under taken with the process owners and with the favourable reception of the Enterprise Integration Program.It indicates that all business-facing IT functions should be aligned with the major business processes that have been identified. Internally, therefore IT will need groups employ to each of the major systems that currently support the business. These groups will be responsible for all maintenance and any new development needed to keep the organization running smoothly while new service-oriented fu nctionality and normal data are put in place. These groups will be needed to make the requirement adjustments to existent systems as this new functionality is put in place.Pros- Redesigning a partnership towards a process-based organization implies that all activities, which logical systemal systemally belong together in order to create value for the customer, are group together. Customer-processes are defined and taken as the basis for an organizational unit. study- and planning and control- processes that are necessary for reaching the core objective of the unit are implied. This implies that the organizational structure of a business or a company is based on organizational units which are organized around the core processes.Structuring a business or a company process-wise implies that coordination across process units is kept at a minimum. The following paragraphs illustrate how companies or business units can be organise around processes. Answer 5- Project Selection Proces s to ensure colligation with the enterprise business Vision- Effective coaction between business and IT is essential to the achiever of twain SOA and BPM. A Business principle Engine can act both as a technology and coaction enabler the below points will explain how the organization can improve business processes and go forward toward SOA by focusing on these strategies. . streamline business processes by separating business logic from flow logic 2. Create processes that are more agile by devising it easy to update business logic 3. Align the business goal of more dynamic decision-making with SOA technology 4. Enable efficacious IT-Business collaboration by giving IT the control it needs and Business Users the tools they need to defend business logic Some throw aways will be foundational in nature, i. e. , be prerequisites to other drifts others may be needed to mount the IT infrastructure.It will therefore be beta that the IT Steering Committee use up a variety of di mensions of project value, in do-gooder to ROI, in determining which projects they would like to undertake. Projects which are functional in nature would therefore not score as highly as those which contri exclusivelye towards the overall company strategy. All business leaders should consider all IT projects and make a decision as to which ones to undertake according to their enterprise value. The CIO should also ensure that foundational work is considered and stratified appropriately to enable IT to carry out the business visionAnswer 6- Manley Make the persona for Service-oriented architecture (SOA) helps organizations more easily transform their business processes for high performance by simplifying the underlying information systems. Old architectural approaches that once expanded business opportunities now limit growthbut existing systems cannot be simply be replaced. Service-oriented architecture gives existing systems the flexibility and agility to resolve to a business e nvironment which is changing rapidly.Service-oriented architectures allow businesses and governments to capitalize on luck by-Becoming more agile, driving make up reductions, Boosting ROI Manley has to prove that SOA will work and that IT can deliver on what it promises. He doesnt needs have to deliver a project that will have an ROI, but he has to work with the EIP to identify a small sub-process that will demonstrate that SOA can deliver functionality in a new way that will be potent for the organization. If he can automate a small process and show how it integrates with various data and systems in a new way, the business will get it.Answer 7- Internal IT Capabilities should include the following to create an IT department that helps build business architecture- * A full-time staff of programmers, developers, and other IT professionals * The ability to rapidly develop and position large, complex data collection and direct marketing solutions in-house using internal resources * professional consulting services in the areas of marketing, business process improvement, supply chain management, and process optimisation for customer satisfaction.IT will need business analysts who can play an intermediary component part between business and technology. These analysts will need to deeply understand a bad-tempered business process and have the skills to develop collaborative relationships with the business leaders of the various functions involved in the process and to work with them to document their process requirements. Solutions architects will need to deeply understand the services approach to assembling systems and to be able to pull together the appropriate services, data and experience to deliver the required functionality.Data analysts will be needed to deeply understand the companys data and to work with the business to create single sources of key business information and to establish data standards. Finally, the company will need excellent IT ar chitects who will build a technology roadmap for data and services and who will manage the processes. Answer 8- Aspects of IT politics important for backing the transformation It is important that everyone in IT understands where IT is going and what their responsibilities and accountabilities are.It is also important that IT staff sequestrate the business from the technical compromises that will of necessity result from the actual transition, which could take several years. Therefore, the business-facing IT governance moldiness be process-centric, while internal IT governance will necessarily be a mix. Business moldiness also clearly understand its responsibilities and accountabilities and these must be enforced. * Define goals and strategies * Define standards, policies, procedures, around financial, Portfolio, Project, service, etc. * Define metrics * honk Governance mechanism in place * Analyze and Improve existing processes rectify and go to the next level Key IT Governan ce Strategy and aspects for transformation- * IT Principles * IT architecture * IT Infrastructure * Business application needs * IT Investment and prioritization * People (human capital) development * IT Governance policies, processes, mechanisms, tools and metrics- decisions on composition and roles of steering groups, advisory councils, technical and architecture working committees, project teams key performance indicators(KPIs), chargeback alternatives, performance reporting, purposeful audit process and the need to have business owner for each project and investment.