Конференция "Код ИБ 2016". Краснодар

1. Understanding and Optimizing IT Costs using
COBIT5 Framework
Dr. Ales Zivkovic

2. Ales Zivkovic
• ≈20 years of IT experience
– seminars & workshops for industry
(Java, IBM RUP, UML, PRINCE2, BPM, IT Security, testing)
– consultancy
– industry projects
– IT audits
• Certifications
– CMU certified instructor for 4 core courses + mentoring
– CISA, PRINCE2, IBM OO development with UML
• Management positions
– Director of the MSIT-SE program @ Innopolis University
– member of the Slovenian Press Agency supervisory board responsible for IT
– President of Slovenian IT Auditors @ The Slovenian Institute of Auditors
– Owner of Slovenian SME
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3. Top 10 Trends in Retail Banking for 2016
• The ‘Platformification’ of Banking
• Removing Friction from the Customer Journey
• Making Big Data Actionable
• Introduction of ‘Optichannel’ Delivery
• Expansion of Digital Payments
• Executing on Innovation
• Exploring Advanced Technologies
• Emergence of a New Breeds of Banks
• Mining New Talent
• Responding to Regulatory and Rate Changes
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Source: http://thefinancialbrand.com/55952/2016-top-banking-trends-predictions-forecast-digital-fintech/
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‘Platformification’ of Banking
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Source: http://thefinancialbrand.com/55952/2016-top-banking-trends-predictions-forecast-digital-fintech/

5. IT Cost structure in banks
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6. Bank IT spending patterns
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Source: http://www.mckinsey.com/business-functions/business-technology/our-insights/more-bank-for-your-it-buck

7. Efficiency & Effectiveness Improvements
in banking sector
• Total IT spending – best-practice banks spend 10 % less on IT
than average bank in Asia-Pacific
• Business efficiency - best-practice banks spend 70 cents less
on non-IT operating expense for each $1 of IT spending
compared to average bank in Asia-Pacific
• Contribution to business growth – best-practice banks
generate $3.70 more operating income per $1 of IT spending
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Source: http://www.mckinsey.com/business-functions/business-technology/our-insights/more-bank-for-your-it-buck
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8. IT benchmarking
best-practice banks:
• Running the bank vs. enabling strategic change
– spend less on running the bank
– maintain strong alignment of IT and business strategy
– have direct CIO to CEO reporting
– have enterprise-wide IT project prioritization
• IT capability and IT costs
– achieve more with fewer people and lower cost per IT employee
– involve business users more closely and proactively
– have superior project-execution engines
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Source: http://www.mckinsey.com/business-functions/business-technology/our-insights/more-bank-for-your-it-buck
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9. IT benchmarking
• IT architecture complexity
– strong central IT governance teams that execute execute architecture and
application rationalization programs
– leverage infrastructure economies of scale through strategic asset-
management practices
– proactively involve business to design IT for future needs
• Rightsourcing
– lower outsourcing levels and higher value realization from outsourcing
– more mature capabilities to manage outsourcing providers
– better demand management
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Source: http://www.mckinsey.com/business-functions/business-technology/our-insights/more-bank-for-your-it-buck
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10. IT Governance with COBIT 5
• COBIT5 – leading international framework for governance and
management of enterprise IT
• widely used in banks, regulatory bodies and IT auditors
• bridges the gap between business and technical people
• introduces metrics and is risk driven
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11. COBIT5 in banks and financial institutions
• India – Reserve Bank
• Argentina – Banco Central de la Republica
• Brazil – Banco Central do Brazil
• Colombia – Superintendencia Financiera de Columbia
• Costa Rica - Superintendencia General De Entidades Financiares
• Guatemala - Superintendencia de Bancos
• Mexico – Secretaria de la Function Publica and Bancos
• Paraguay – Banco Central del Paraguay
• Uruguay - Banco Central del Uraguay
• Venezuela – Superintendencia de las Institucionales del Sector Bancario
• Greece – adopted by banking industry
• Turkey – Banking Regulation and Supervision Agency (BRSA) and for all banks
• US – postal service, DoD, Federal Reserve, etc.
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12. Key questions for successful IT cost management
• How much should we spend for IT?
• What should be IT cost structure?
• Which IT projects should be approved?
• Do we have a good IT strategy? How do we know?
• Is our outsourcing efficient?
• Is our IT efficient and effective?
• What are the key IT risks?
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13. COBIT5 – Governance and Management Key Areas
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14. 1414
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15. APO06 – Manage Budget and Cost
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16. How Innopolis University can help?
• Executive training
• Support in COBIT5 implementation
• Assessment of selected IT processes
• Review of outsourced projects
• Cost reduction through optimization of IT processes
• Implementation of IT benchmarking framework
• Innovation in banking through research and pilot projects
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17. Thank you f or your
at t ent i on!
Dr. Ales Zivkovic
e-mail: a.zivkovic@innopolis.ru