IT and Innovation

2. Shinsei, which literally
meant "new birth" is , a
Japanese commercial bank,
is the successor of
a trust bank, the Long-Term
Credit Bank of Japan, which
had a government
monopoly on the issuance of
many long-term debt
securities.

3. 1- LTCB ( long term credit bank)
1952 1980  1991
2- Acquisition by Ropplywood:
In march 2000, LTCB was sold to an international
group led by US-based Ripplewood Holdings . And in
june 2000, LTCB was relaunched as "Shinsei Bank" .
3- The new birth:

4. The system was overloaded with no
spare capacity.
 The traditional methods of retail banking
were not performing enough.
 Mainframe infrastructure; overloaded
and no space capacity.


5. Separate networks that were tied closely to
the old business model, inadequate
capacity and expensive maintenance
costs because of locked-in contract with
vendors.
 High maintenance costs due to existing
contracts with vendors operational
processes strongly paper-bound causing
unnecessary redundancies
 The mainframes held the tal data which
imposed great risks on to businesses.


6. CEO Yashiro know that innovation in
services will attract customers. This
transformation should be effective,
speed ,flexibility and cost
control were paramount.
So
a complete overhaul of
the
IT system was required to
enable this. Which need a robust
operational and technological
infrastructure.

7. Dvivedi started by :

Forming a skilled team .
 Identifying clearly the problem
 Broke it down into pieces for making sure to
solve them one by one quickly and with more
efficiency.

8. 




Diviedi set up five basic guidelines that
were to govern all work going forward to make
processes more efficient:
Speed - How fast can the work be done?
Cost - How low can we keep costs? ?
Capability - What new capabilities will IT
enable?
Flexibility - How easily can the system be
changed to respond to business needs?
Safety - How secure is our system?

9. Shinsei spent a substantial amount of
time creating principles to guide the
implementation process :
Inclusive
ness
PARITY
IMPLEMENTATI
ON PROCESS
PAPERLESS
TRANSPAR
ENCY

10. The system was implemented faster than
it was planned. Almost 90% of the costs
were saved which means it costs only
10% of the budget.
 Management controls were also
significantly improved through the new
system offering advantages such as :
low-cost basis, they offer free Internet
transfers and high-quality products and
services .


11. Use ATMs any time free of charge. This
make Shinsei different from the other
Japanese banks.
 Branches open on weekends and holidays
in order to offer services such as same-day
account openings, targeting customers
who might be too busy to visit the bank
during the week. Other financial institutions
followed suit and began staying open on
Saturday and Sunday, but
services were limited to
mortgages and asset
management consulting.


12. 
Dividing a big problems into parts mean a smaller pieces
of the project allow quick and efficiency to solve the
big problem .

Have a plan based on guidelines for making the work
more efficient.

A good management of IS will allow to any organization :
Significant cost benefits, time savings, productivity gains
and process re-engineering opportunities are associated
with the use of data warehouse for information processing.
 Confidence and security
