IT as an Engine of Global Expansion for African Organisations
1. IT as an Engine of Global Expansion for African
Organisations
Digital Jewels: Information Value Chain Breakfast Forum
Tunde Coker, Group CIO, Access Bank PLC
8 July, 2009
2. Our Philosophy
VISION M I SS I O N
To transform our bank To go beyond the ordinary,
into a world-class financial to deliver the perceived impossible,
services provider. in the Quest for Excellence
BRAND DRIVER
The Quest For Excellence
2 13/07/2009
4. Contents
Introduction ……. about Access Bank
IT and business alignment
Critical success factors
Creating the right global model
Challenges
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5. Access Bank - Our Evolution…
Defining Factors for Success 2007-2012
Risk
Governance Management Expansion
2006-2007
Phase
Skills and Consolidate and
competencies Capital
Grow
5 Year Strategic Objectives
2004-2005
• Retail strategy assisted by ING
Recapitalise and Bank
Acquire
• Most Improved Bank in Nig. Award
2002-2004 from Thisday Newspapers in Feb.
• IPO in October 2004 raising 2006
1989-2001 Transform & N13.5bn with 133%
Reposition oversubscription • Commenced Pan African
expansion in Gambia and S/Leone
• Acquired Capital Bank
The Beginning International and Marina
• Appointment of new • Selected to manage foreign reserve
International Bank via merger by
management in partnership with ABN AMRO by
• Established Feb. 1989 absorption
CBN
Commenced operations May
1989 • Embarked on • Achieved integration in a record
transformation agenda time of 60 days • Ranked 8th Bank in Nig. by balance
• As at 03/2001, shareholders that moved the Bank from sheet size
fund was N919mm with 65th to 15th position • Received USD$15m equity
25branches across the investment from FMO, 3rd largest • Received $30 m convertible loan
country. • Return to profitability shareholder from various foreign Fin. Inst.- IFC,
(N1.01bn PBT) from BIO, FIN fund
• Opportunity created for • Met CBN N25bn recapitalisation
injection of capital by new N17.9mm loss
requirement
investors
6. Our Awards
Best Annual Report Best Telecom Innovative Trade Most Innovative Bank Award Customer Service Excellence Award
Award 2006 Financing Bank of the Structures Award 2007 (KPMG Nigerian Banking Industry Customer
Int’l Finance Corp (IFC) (African Banker Magazine) Satisfaction Survey Award)
(Fortune Magazine Award) Year Award
(Nigeria Telecoms Award)
Most Effective Website | Most Captivating Site in Customer Experience | Most Attractive
Site (Aesthetics) (Philips Consulting 2007 Web Jurist Competition)
7. Evolving international strategy
• Controlled expansion in Africa driven by
► Existing customers expansion outside Nigeria
► Increasing regional trade finance United
Kingdom
► Underbanked markets with attractive opportunities
► Synergies and cost efficiencies– leverage off existing
business in Nigeria
► Risk diversification and enhanced risk profile
• Choice of countries driven by:
► Size and profitability of market
► Macro-economic fundamentals
► Availability of human capital
GDP
OECD $39,680bn
8. The importance of aligning IT to business goals
Creating a country view when the organisation is going global
constrains the organisation
9. Critical factors for success
Ensure IT strategy reflects international goals and scale of ambition
Create a scalable enterprise architecture as an engine for growth
Create the right organisation that reflects the business
Build an effective global infrastructure with practical innovation
Create a strategy for common infrastructure with flexibility and governance for local
idiosyncrasies
Align with global business units and then country units
Creating a single view of the enterprise for clients
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11. Creating the global growth strategy
Business Strategy & Enterprise Architecture
Global / Local Customer Markets and Relationships
People and Processes
Country Country Country
Focus focus Focus
Global Application Frameworks
Global Applications
Collaboration and Knowledge Management
Enterprise Data Warehouse & Master Data
Customer Relationship Management
Global Infrastructure Components
Unified Communications
Global Mail
Global Connectivity
Data Centre Infrastructure
12. Role of IT ……
Factory Strategic
• Zero defect IT
• Integrated with business
• Essential to business day to
• Essential, high impact
day operations
Operational Impact
Role: Provider Role: Partner
Support Turnaround
• Operational / back room • Key to business change
• Low expectations • Project delivery essential
Role: Custodian Role: Agent
Role in Business Strategy
Source: Gartner
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13. Various models exist for structuring IT as engine for growth
MD MD MD MD MD MD
Group / Global CIO
Group / Global CIO
Group MD
Group MD
CIO CIO CIO CIO CIO CIO
Apps Apps Apps Apps Apps Apps
Services Services Services Services Services Services
Infr. Infr. Infr. Infrastructure
1. De-Central 2. Part De-Central
Corporate Examples
MD MD MD
1. Virgin Group
Group / Global CIO
Group MD
CIO CIO CIO
2. BP
Applications 3. Access Bank
Services
Infrastructure
3. Shared Services / Capability
14. Challenges to creating the strong engine for expansion
Setting the right global context
Creating the global enterprise architecture
Moving from local to region to continent to global
People, processes and infrastructure
Culture: keeping your core culture, accommodating local cultures
Risk management and regulatory differences
Growing your people from local country perspective to global
Grappling with the various organisation and technology models
Managing the need and cost or travelling
15. Conclusion
IT can be an engine for global expansion
It can also be a constraint to global expansion
IT strategy must be aligned to the enterprise global strategy
Pace of growth and change must be aligned to business appetite and markets
Appropriate delivery models should be adopted
IT must innovate to overcome infrastructure constraints in Africa and elsewhere
The CIO plays a central role in the success and effectiveness of IT
as an engine for global growth
