1.Product Vendor (PV) Selection: - A typical implementation is preceded by a vendor selection exercise involving soliciting of RFI (Request For Information) and RFP (Request For Information). The RFP shall assign specific benchmarks, entry criteria, response parameters, bidding pre-requisites etc. Based on RFP responses, the bank may conduct multiple screenings to finally zeroise on the product vendor. As a precursor to the selection announcement some banks may ask the CBS vendor to conduct Product Walk Through (PWT) and Proof Of Concept (POC) with a full scale demo. The RFP response also details commercials info, costing, implementation timelines proposed, methodology details etc.
2.System Integrator (SI) Selection:- Some banks especially the large ones opt for a system integrator who shall take the ownership of implementation, liaise with the vendor, ensure timelines are complied, conduct functional acceptance checks / testing on behalf of the bank before migration or go-live etc. As SI teams bring specialized cutting edge skills to the table, the implementation related risks are managed to some extent for the bank.
3.System Familiarization and Business Requirement (BR) Analysis:- The bank furnished the BR to the PV under advice to SI. The vendor commences familiarization exercise of the new system to the business users. Concurrently requirements are discussed, deliberated and analyzed pursuant to the next step of GAP Analysis.
4.GAP Analysis: - Based on the BR, the PV prepares the list of GAPs – functional, technical and preparation of Prioritization GAPs List (PGL). As part of PGL evaluation the GAPs are segregated as
a. Statutory and hence will be developed.
b. Must have GAPs that the bank feels as compulsory for development as it
has critical impact on their business.
c. Other GAPs which shall be taken up for evaluation at a later date based on
availability of time and bandwidth.
5.Technical Architecture Design: - Normally the SI in joint consultation with PV prepare the technical design and incorporate the same into the bank’s IT architecture.
6.System Development – Conformance to Requirements: - The SI confirms to the bank once the development is completed that the build is ready to be installed into test.
7. Integration and Functional Testing: - Integration testing is done to check if all the different components developed independently work in unison as per required / expected functionality in the integration phase. After integration testing is completed a final functional testing (or acceptance testing) is performed to certify that the system developed confirms to the agreed requirements.
8.Data Migration: - One of the most critical part of the implementation relates to data migration from legacy disparate systems to the new centralized one. The migration tool has to be customized by the PV to the data features / parameters and specifications of the source systems, test migration is done to validate for accuracy, precision and completeness followed by full scale migration.
There are two approaches to data migration.
a) Big Bang Migration Approach;- Under this approach the entire bank data (branches, overseas operations, support functions, back offices etc) are migrated in one instance / lot to the destination CBS system. This approach is risky and involves managing too many issues in a single tranche. Hence most banks desist from adopting this approach.
b)Phased Migration Approach: - Under the phased approach the migration is undertaken in a phased manner. A select list of bank’s businesses are taken and migrated initially. Based on the success of migration and quantum of problems / issues encountered, other branches and departments of the bank are taken up.
9.Post Live Support Mechanism: - Post live support is agreed between the bank and the vendor. Some implementations involve post live support being undertaken by the system integrator. As and when issues are encountered change requests are taken up with the vendor for redressal.
10.Defect and Change Management Framework: - A framework is designed on managing defects and resolution SLA’s are put in place.
