Msc Presentation

INFORMATION TECHNOLOGY DEPARTMENT

AN ANALYSIS OF ESKAN BANK’S DATA MIGRATION PROCESS AN ANALYSIS OF ESKAN BANK’S DATA MIGRATION PROCESS WITHIN ITS CORE BANKING MIGRATIONWITHIN ITS CORE BANKING MIGRATION

ByBy

Abdulla I. AlBurshaidAbdulla I. AlBurshaid

A presentation on the dissertation submitted in full fulfillment of A presentation on the dissertation submitted in full fulfillment of the requirements for the degree ofthe requirements for the degree of

MSC Information Technology ManagementMSC Information Technology Management

University of SunderlandUniversity of Sunderland2007/20082007/2008


Dissertation Aims

– The dissertation aims to achieve the following objectives:• A report that studies the theories, successes and failures of data migration to

educate EB’s IT department on DM within a system change project.

• An overview of the data migration phase within EB core banking migration project.

• An analytic comparison and contrasts description between the theories and case studies including a counsel from an auditing company.

• An analysis based on results of a questionnaire/survey answered by the sponsoring organisation on the data migration phase. To consequently formulate an enhanced DM model for EB utilising IT department documentation on the Core Banking System Change project and feedback from both interviews and questionnaire/survey answered by EB IT personnel and consultants both exposed and impacted by DM.

• Finally, a critical evaluation of the aims of the DM phase within the migration of the core banking system.


Introduction

• This project examines the background of DM process within a system change project, by going into the details of its methodologies and strategies.

• A major international auditing corporation accepted to provide some case studies for comparison and contrasting existing practices with Eskan Bank’s migration project.

• This paper also looks into Eskan Bank’s system change and focus on the DM process itself, compared and contrasted with explored literature, including its impact and how it reconciles with well known standards and approaches via project documentation and a survey conducted with the project manager and consultants.

• The project attempts to formulate an ideal tailor-made approach towards

achieving a smoother DM process for Eskan Bank by utilising the results of a questionnaire or survey answered by Eskan Bank’s IT personnel and consultants.


Data Migration Background

• Data Migration is a needle in a hay stack.

• The phrase ‘Data Migration’ on its own is associated with many fields, or actions that apply to that process one way or another

• Today more and more systems are being updated, migrated, extracted,

and cloned for many reasons: – Organizational business process change – Organizational Merger– Organizational Split– System Improvement– System Backup

• Thus Data Migration is a very critical annoyance to IT personnel that has to be approached with both qualitative and quantitative means


Data Migration Project Issues

DM Projects Issues

(A) Budget(B)

Personnel(C)

Technical(D) Duration

(E) Environment

(F) Approach


Budget Issues

Budget

Budget Overrun

Budget Allocation

Acquiring Budget


Exceeding Budget

45%

1%

25%

4%

25%

100%

50%

0%

25%

75%

Bloor Research, 2007


Reason for Budget Overrun

14%

62%14%

5%5%

Other

Lack of Methodology

Unrealistic Scoping

Inexperienced Team

1st Time Project



Personnel Issues

Personnel

Lack of Expertise PM(s) Capacity


Data Migration Project Coordination Rating

Rate on a scale of 1 – 5, how difficult coordination & collaboration was between various aspects of the DM part of the project

25%

13%

29%

13%

20%1

2

3

4

5



Staff time utilised in DM

8%

6%

24%

9%

53%

100%

50%

0%

25%

75%



Technical Issues

Technical

Hardware Software Infrastructure


Application Downtime

40%

4%

14%

3%

39%100%

50%

0%

25%

75%



Data Migration Tools

Which PM tools were used on the DM portion of the project? (Multiple responses allowed).

13%

2%11%

61%

13%

Other

Enterprise Tools

Ad-Hoc

Desk-Top Tools

Microsoft Project



Data Migration Tools Allocation

7%

19%

19%

15%

7%5% 2%

14%

12%

Other

Data Profiling understanding

PM of the DM

BP Process/methodology

Scoping / est

None

DM Proj Collab

DM & proj Collab

Don’t Know



Duration Issues

Schedule

Duration Allocation Duration Overrun Scheduling


Extent of Time Overrun

0%

5%

10%

15%

20%

25%

30%

Total 4% 12% 30% 4% 15% 11% 15% 7% 4%

Don’t Know

5-10% 10-20% 20-30% 30-40% 40-50% 50-60% 100% 200%



Cause of Time Overrun

8%

25%

3%

33%

6%6%

11%

8%

Inexperienced Team

1st Time Project

Software ToolProblemsPoor Data Quality

Lack of Methodology

Unrealistic Scoping

Don’t Know

Other



Environment Issues

Environment

Staff Resistance Legal Business Process Stakeholders


Who was responsible for the management of the DM phase of the project?



Who owned responsibility for delivery of the DM project?



Approach

DM Methodology

Training Plan


Who decided on the methodology and approach to the DM phase of the project?



Did you use a formal documented approach (methodology) for performing DM activities?

2%

72%

26%

YES

NO

Don’t Know



Staff Time Utilised in Training

8%

6%

24%

9%

53%

100%

50%

0%

25%

75%



Auditor Recommendation

Risk & Controls:

-Sustained Compliance

-Operational Effectiveness

- Quality of information

-Transparency

Technology:

-Scalability

-Enablement

-Cost

-Data Integrity

Organization & People:

-Strategy & Structure

-Accountability

-Knowledge & Skills

-Change Management

Process Optimization:

-Speed

-Efficiency

-Timeliness

-Resource Allocation

DM PROJECT


Dimensions Stages

DEPLOY TEST BUILD DESIGN

Technology

Organisation & People

Process Optimisation

Risk & Controls


Design Key Questions

What are the key risks and controls for each business process and how are they configured in the ERP system?

What gaps exist between current key controls and the newly identified key controls?

What control procedures are required to ensure complete and accurate conversion?

What is the security control strategy?

Are controls being identified and linked to process definition documents?

How does the organization ensure that its project documentation will satisfy regulatory compliance and monitoring needs?


Build Key Questions

Who are all the users of the new system?

What access and security rights should each user have?

What data “cleanup” is required/desired before conversion?

What are the IT change management procedures?

How are the key controls configured or customized, and who will be responsible for monitoring them?

How do controls interact with processes?


Test Key Questions

Are controls linked to the testing scenarios and are end-to-end business processes being tested with key control points?

Are business roles being evaluated relative to segregation-of-duty conflicts?

Have interfaces been tested to ensure consistent and accurate information across multiple databases?

Are trial conversions being executed and balanced/reconciled?

What are the user acceptance test criteria and sign-off procedures?


Deploy Key Questions

What is the plan to assess control and security performance?

What is the post-implementation plan to review key risk areas and monitor compliance?

What is the method to update and control documentation?

What is the plan to transition documented changes to the compliance program?

What is the plan to address control accountability during both transition and post-implementation?

Are users appropriately trained?”


Eskan Bank Data Migration Experience

1. Lack of Functionality to Support Business & Support Units

2. Minimal streamlined and automated processes

3. Lack of Workflow enforcement

4. Business processes are not changing to be in line with best practises

5. Quality of Data; multiple capture of the same data, and data inconsistencies

6. Lack of a flexible reporting mechanism

7. Access to Information is Difficult and Time Consuming

8. Lack of Proper Levels of Controls

9. Legacy AS400 system is the cause of many problems

10. Lack of System Documentation (High Risk)

11. Limited Integration

12. Future Needs can not be Addressed

Reasons for Considering a New Core Banking System:


Eskan Bank Background

Eskan Bank was established and incorporated as a joint stock company and separate entity to the Government of the

Kingdom of Bahrain in 1979 by Decree Law No.4/1979 as published in the Official Gazette Issue No. 1322 15 March

1979 and as amended by the Decree Law 75/2006. Its prime responsibility covers the development of the construction

industry in Bahrain to support major housing programmes administered by the MOWH. Over the last 25 years, Eskan has provided more than one (1) billion US dollars in different types of loans to Bahrainis. Since its establishment, Eskan has

consistently retained its position as the leading player in Bahrain’s finance / mortgage market. Eskan has to date been

able to help over 14,000 families in Bahrain to build/ purchase new homes or to renovate their existing properties.


Eskan Bank I.T. Department

Eskan Banks I.T. department have been undergoing migrations of several systems. This project will focus on one

of the many, ‘The Migration of Core Banking. Thus, data migration is inevitable. The data migration phase of this

project is seen as a crucial step towards achieving a successful, modernised, and capable core banking system.

Consequently, the overall banks capability and efficiency in there modernisation vision of business processes lay upon the

success of the crucial data migration phase in there core banking migration project.



Builds the Bank’s reputation

Creates new customer opportunities

Fosters company vision and mission

Improves market position relative to competitors

Improves the ability to serve customers

Increases competitiveness and ability to charge a premium

Organizational Benefits:



Decreases employee work loads for undesirable work

Eliminates non-value added activities

Improves employee morale / team spirit

Improves internal communication between departments and groups

Improves use of workspace

Increases employee and process productivity

Reduces cycle time

Operational Benefits:



Decreases maintenance/support costs

Improves application/system performance

Improves application/system utilization rate

Increases efficiency of support activities

Increases productivity through automation

Maintains intellectual property investment

Preserves value of technology

Information Technology Benefits:


Eskan Bank System Change Risks

A red square = Unacceptable. Major disruption is likely. Different approach is required. Priority management decision required.

A yellow square = Moderate. Some disruption, approach may be required. Additional management decision required.

A green square = Minimum impact. Minimum oversight needed to ensure risk remains low.


Eskan Bank Data Migration Project Risks

Probability Risk Level (Risk Exposure)

E Resistance

D

Configuration Control / Archiving / Education & Training Reports

PersonnelResources /

Hardware Resources

C Data Fields Control Data Migration Leap

B

A

1 2 3 4 5

Impact

Project Manager:


Eskan Bank Data Migration Project Risks

Probability Risk Level (Risk Exposure)

E

D Personnel

Resources

C Resistance Migration

Leap

B Archiving

Configuration Control / Control Data / Education & Training

A

Data Fields / Reports / Hardware Resource

1 2 3 4 5

Impact

Consultant:


• Eskan Bank installed a new banking application “Equation” developed by Misys.

• The application actually went live on 29th November 2006.

• Parallel run is carried out and data entered into both old and new applications all the way to all three phases.

• During the parallel run, several differences were noted between the data in the existing application and the newly implemented Equation.

• Eskan Bank needs to reconcile the data between the two systems using an efficient process that would assist in reducing the time required to go live with the new system. Presently financial control staffs are working on identifying, analyzing and eliminating the differences. Parallel run was supposed to stop in Feb. 2007 (phase 2). However, differences were continued to be noted in the parallel run and the old application is continued. These results in duplication of efforts and the resources of financial control team are not effectively utilized.

• A slight staff resistance formed due to working on entering data twice in both old and new systems.

Eskan Bank System Change Actual Scenario


Eskan Bank System Change Proposed Action

Some proposed actions were put into performance due to several hiccups stated:

i) Discontinuance of parallel run:

The discontinuance of parallel run is vital to reconcile the differences and to utilise the new system in its full optimum performance.

ii) Reconciliation of differences:

In order to complete the reconciliation process efficiently, use of automated data analytics tools like ACLtm to reconcile data between two or more systems. Reconciliation of data involves the following steps:

iii) Data Quality Assurance:

Data quality assurance process involves verifying completeness of data using analytical tools and identifying inconsistencies. These errors are then brought to the attention of the appropriate personnel for actions to rectify the same.


Data Migration Methodology

DM plan

DM schedule

DM documentation

DM issues management

DM process

DM environment

Data cleansing

DM

DM validation plan

DM validation

Data management

DM technical

DM acceptance

Disaster recovery

Issues tracking & resolution

OUTPUTS

Project Manager Data Analysis DBA DM Programmers

Migration Infrastructure User Analyst

MECHANISMS

CONTROLS

Federal & State Laws & Regulations

Project Schedule Business Process Requirements

In-House Software Upgrade

Off The Shelf Software Upgrade

INPUTS


Methodology Achieved Objectives

• Avoid Risks

• Planned Actions

• Documented Methodology

• Contingency Planning

• Comprehensive Study

• Reutilized Methodology


Thesis Achieved Objectives

1. A report that studies the theories, successes and failures of data migration to educate Eskan Bank’s IT department on Data Migration within a system change project.

2. An overview of the data migration phase within Eskan Bank core banking migration project.

3. An analytic comparison and contrasts description between the theories and case studies including a counsel from an auditing company.

4. An analysis based on results of a questionnaire/survey answered by the sponsoring organisation on the data migration phase. To consequently formulate an enhanced Data Migration model for Eskan Bank utilising IT department documentation on the Core Banking System Change project and feedback from both interviews and questionnaire/survey answered by Eskan Bank IT personnel and consultants both exposed and impacted by Data Migration.

5. Finally, a critical evaluation of the aims of the Data Migration phase within the migration of the core banking system.

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