”Why EDB Went Global”, Tom Scharning, Executive Vice President EDB Consulting Group, EDB Consulting Group

1. Why EDB went Global
IKT Norge seminar
May 6, 2010
Tom Scharning

2. Agenda
Why EDB went global
How to establish a global delivery model
How we do it
Risk and security
Status & Achievements

3. Why globalise our
delivery?

4. EDB challenges
 EDB customer delivery
commitments can not be met
with Scandinavian resources
alone
 EDB and EDBs customers need
access to highly skilled
professionals without
compromising security or quality
 EDBs needs to increase
competitiveness and scalability
to ensure future deliveries

5. Transformation and continued
innovation Agility and
Expanding improved
global innovation
delivery
capacity
Expanding
global
sourcing
Building
application
Established Building services
Focusing critical
on core solutions
mass in IT portfolio
business operations
areas
2003 2004 2005 2006 2007 2008 2010
Telenor TAG Guide STI Team R3 SPAN
IBM SPRING IS Partner
BANQIT tre60 CEKAB
Capgemini
Avenir Infopulse Miratech
Datarutin

6. EDB in brief
 Key figures 2009
– Revenue NOK 7.5 billion
– EBITA NOK 603 million
– Total order backlog NOK 12.6 bn
– Number of employees 6,000 Norway
 Business areas Denmark
Sweden
– EDB Consulting Group UK
– EDB Solutions Ukraina USA
– EDB Outsourcing
ContinentalEurope
India
Singapore
Page 6
EDB 2010

7. Methodology
How we do it

8. EDB's 3 models for Global Sourcing
Description Suitable for
Integrated into EDB's
Embedded production of services:
Global Sourcing IT operation, Solutions, All customers
Application services
A combination of Customers with
Scandinavian Scandinavian PM: AD or AM needs
Global Sourcing Using resources preferring to buy
from India or Ukraine services from EDB
IT departments with
A dedicated AD or AM needs where
EDB Pavilion the customer retains
customer team
a high degree of control
EDB 2010
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9. Embedded Global Sourcing
Methodology approach
Documentation Migration Stabilisation
 Describe and  Intensive work  Controlled after care
analyse processes shadowing period period
AS-IS onshore or on-the-
job training local  Establish internal
 Define processes contract for service
TO-BE designed for  Provide run-books delivery and follow
global deliveries up
 Migrate processes
global  Hand over meeting
 Go – No/Go
meetings

10. Global processes established
ITIL - Problem management:
 Redefined process workflows to a
local/global design
 Basis for training during migration
and documentation in QA system
 All new processes and workflow
based on a global delivery model
 Step-by-step change to
geographic independent workflows

11. Enabling global deliveries in IT
operations
 Establish global hubs as a seamless
integrated part of all IT Operations
delivery platforms
 Ensures IT Operations customers
access to highly skilled professionals
 Improving EDBs competitiveness and
scalability
 A combination of local and global
resources will ensure control and flexibility
 Enable profitable growth for the customer
and EDB

12. IT operations delivery locations
Scandinavia:
DataCentre, Storage
Network (Infrastructure)
Implementation capacity
Oslo Stockholm
Continuity capacity
Kiev
Tampa Ukraine:
Desktop remote support
Open and DB
US: Application Packaging
Monitoring Bangalore
Monitoring centre
Industrial IT operations Helpdesk
India: Singapore
Mainframe
SAP
Singapore:
Monitoring
Industrial IT operations

13. Bank/ Finance:
Centres of excellence
Oslo: 950 FTE
– Core bank solutions and multi-channel solutions
– Statutory reporting, card and adm.solutions
Bergen: 200 FTE
– Security and anti money laundering
– Payment systems
Trondheim: 220 FTE
– Multi-channel (mobile banking, internet banking, portal)
– ATM and Point of Sale (POS) Leading
Mo i Rana: 150 FTE supplier of
– Card personalisation solutions for
– Fraud detection and card services
the Bank &
Stockholm: 120 FTE Finance sector
– EDB Card solutions for payment cards (POS and ATM) in the Nordic
– Implementation and projects
Kiev: 80 FTE
– Working on different areas together with Nordic Centers
– Mobile applications, technology conversion etc.
India: 15 FTE
– Security testing,
– Performance testing FTE = Full time equivalent

14. Application Management for SAS
Challenge Solution
 SAS has an HCM platform based on  Specialist resources from one partner
SAP, including payroll for the covering the whole platform
Nordics.  Framework for support and imple-
 SAS wanted to upgrade the platform mentation of HCM business process
and outsource the AM of the whole  Dynamic availability of IT-specialists
platform including interfaces to 3rd and peak resources
party systems.
Respons Achievement Reduced AM
 Nordic capability  Annually reduced cost for the delivery delivery cost through
 Specialist competencies in all Nordic of AM
countries  From EDB side the upgrade will be Scandinavian
 Customer knew EDB from start – productive according to plans specialist capabilities
Professional partner  Nordic SAP HCM Setup
 Combination between Near sourcing
backed up by near-
from Bulgaria and the Nordics => shore resources
Price
EDB Consulting 2010
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15. Oracle AO using Offshore resources
Challenge Solution
 On site AO/BO delivery costly for  Implementation of Oracle best
customer practices i.e. AIM standards
 System documentation not satisfactory  Preparation of run books, other
 Existing team more than 10 years on documents from scratch
system  Offshore Contingency plan
 Cost not competitive documented
 Governance model redesign
 Status reporting stabilized
 ROI reporting to customer
Respons Achievement Reduced cost,
 EDB-SPAN moved AO/BO from  Proactive Incident monitoring and improved customer
existing vendor gradually to offshore reporting
 E-business Suite 11.5.10.2 on HP-UX  Improved customer interaction interaction and
- Three Oracle instances
 Artemis, MGWP (queuing) , FDW
 Improved processes improved governance
 Faster Closure of AO Application
(Financial Data warehouse) incidents
 Over 2000 Jobs run daily, Using  Initiated review of project governance
Control M scheduler  Building business specific knowledge
repository
 Realized cost reduction
EDB Consulting 2010
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16. Electronic billing and payment services
Challenge Solution
 Fast ramp up of resources  Defined process for smoother
 High Attrition rate at HPC/Amex transition
 Needed quick time to market to  Middle level management
serve orders and clients sponsorship at onsite.
Implementation, Reengineering,  Maintaining a healthy onsite
Production fixes and Support. /offshore resource ratio
Knowledge Retention/Lack of  Start with small to medium team
Domain knowledge and ramp up for smooth
 Night support engagement
Respons Achievement
Faster time to
 Dedicated Pavilion Team, Low  30 mill USD savings on Manpower
attrition at SPAN.  Faster time to market for market, higher
 Knowledge Base development &
SME Creation.
HPC/Amex solutions
 Increased clients and sales
quality of services,
 Cross training in niche technology  Improved documentation of core dedication to
 Offshore cost and time
advantages
system
 Value engineering in business
customer
process satisfaction 24/7
EDB Consulting 2010
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17. Risk & Security
Risk & Security

18. Risk approach
 Today a known production in known
environments
Risk
 Establishing and transformation of mitigations
production teams demands precautions to close gap
 A global delivery model demands
transparency in the complete work
process
 Legal and international regulations must Risk Risk
be considered level level
EDB EDB
 National risk level at all production sites
Nordic Global
must be evaluated
Resources Resources
 Securing well functional continuity
solutions on a global basis

19. Security in the migration process
 Evaluate areas open to migration to new location
Evaluate and
 Reconcile security and criticality regarding possible area
Select  Define tasks and value chain parts possible to migrate.
 Qualify processes and solutions for the global delivery model and
migration
Prepare  Train employees and adjust the new work chain in order to secure
future delivery
 Update all processes, procedures and solutions
Migrate  Migrate the operation into the global delivery model
 Qualify continuity solutions
 Audit all work processes and solutions on regular basis
Follow up  Regular updates of all processes
EDB 2010
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20. Status and
Achievements

21. Over all achievements for EDB
 Increased security – role based access
Improved  Improved control on removing root causes (PM)
 Improved logging, reporting and analyze
Quality  More proactive work
 Stable Operations – No critical incidents in 2009
New  New and good skilled colleagues
 Positive cooperation onshore/offshore
Knowledge  Proactive view of internal processes
 More flexibility local
Scalability  Faster upscaling by new needs
 Increased productivity
 Improved internal interfaces – Updated generic procedures
Increased  Run books on operation tasks
 Documentation in English
transparency  Better control on End of Support
 Taskforce work with global participants
EDB 2010
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22. More value from EDB
EDB Consulting 2010
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23. EDB 2010
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