FINANCIALS TRANSFORMATION - DELIVERED INTERNATIONALLY

Global financial services group implements one of the world's largest PeopleSoft financial solutions to empower its banking business units

redit Suisse Group (CSG) is one the 1970s and 80s. Each business unit of the world's leading financial needed the freedom to run its business Cservices organisations. The independently, while maintaining the same The issues Group comprises four major business centralised controls and system efficiencies, As Credit Suisse Group has grown and diversified, its units, Credit Suisse Financial Services information needs have become more business- but the legacy systems were outdated, specific, demanding and complex. The over- (CSFS - retail banking, insurance and inflexible, slow and costly to adapt. stretched, centralised in-house systems - personal finance), Credit Suisse Private developed over 30 years - were simply unable to The existing architecture was extremely Banking, Credit Suisse Asset meet new business requirements effectively. Management and Credit Suisse First complex and interwoven, with the general The approach Boston (investment banking). CSG is ledger being fed by more than 70 feeder A strong management team was established headquartered in Zurich, employing systems, which in turn fed some 40 that included senior professionals from Credit downstream systems. As the system was Suisse Group and its business units, IT approximately 80,000 people departments, Atos KPMG Consulting and the worldwide. Global revenues for 2000 comprised of bespoke applications, software vendor - PeopleSoft. This team were 37,231m CHF and assets under modifications often took many months worked in collaboration to manage a complex, challenging implementation in a multi-lingual, management 1,417 billion CHF. to implement. multi-cultural environment. The issues Business units were keen to improve their The benefits CSG has moved into new markets and accountability while increasing accessibility, Credit Suisse Group has achieved more geographies over the last few years, but its reliability and financial reporting capabilities, accurate and timely financial and management information. The business now has a flexible, ambitions to increase the autonomy of its but they had to share the same chart of “future-proof” platform, utilising the latest business units were being hampered by accounts, reports and management technologies and a market leading software information applications. solution. centralised financial systems developed in ‘The over-stretched legacy system could not meet the requirements of the expanded business’

Urs Oberholzer - ERP & IT programme director, CSFS

A very real need emerged to replace and workstreams. Any issues covering to manage the overall complexity. A number reengineer the system and streamline the functionality, applications and technology of functional and technical prototypes were component applications with consistent data were therefore solved by consultants working developed. Cross-business unit workstreams formats based on a new technology with their counterparts from CSG. The key were formed to address common issues and platform. This would empower the business was to optimise the integration of process optimise business processes. units, while managing the complexity of and content, whilst maintaining quality. A major benchmarking exercise was the front and back office systems - placing The overall project team peaked at 150, with undertaken to ensure that volume and CSG on the map for internet-enabled back Atos KPMG Consulting providing senior performance targets could be met. office applications. partner and director level commitment as A new technical architecture and IT well as professionals from the UK, The approach infrastructure that included best-of-breed Switzerland, Germany and the US. The multi- The approach was based on several key third party tools was implemented. language, multi-cultural environment across principles that included: A best practice testing approach was business and IT disciplines was supported by adopted involving extensive coordination z clear scope close working relationships at all levels. between mainframe, Unix and NT z phased implementation The scope covered four major activities based environments. Clear acceptance criteria were z strong commitment and collaboration around a structured methodology for used to measure go-live readiness. among the CSG business units, IT analysis, design, construction, testing, Extensive multi-language and multi-format departments, PeopleSoft and implementation and post-implementation: end-user training was performed. Atos KPMG Consulting as lead z feeders (standardise data formats) implementation partner Two parallel system runs with full production z data transformation (enrich and map data) data were performed prior to go-live. This z strong management and design leadership z information management, reporting and was a significant investment that facilitated a z high quality, multi-disciplined teams inquiry (utilise market-leading general smooth 'big-bang' implementation. z clear target go-live date, with interim ledger functionality) Multi-skilled support teams were established milestones. z technology infrastructure implementation. to support the business units through the

CSG and Atos KPMG Consulting established An overall functional application and go-live process and the first month end cycle. a joint responsibility and accountability technical architecture, that was broken approach, ensuring close working down into detailed components, was used relationships on all major project The benefits ‘The business is now based on a flexible, The new financial system at CSG and its More accurate financial information is now “future-proof” banking business units (comprising retail, available faster, and the quality of data investment and private banking and asset consistency has significantly increased. platform, utilising the management) went live on time. Financial and management reporting has latest technologies and The new system processes up to 2 million improved across CSG, resulting in more a market-leading transparent data. The organisation also has transactions on average each day, from software solution’ around 70 front and middle office feeder a framework to support US GAAP disclosure reporting. systems. This extends to nearly 10 million Stefan Hilber - programme & business director, CSG transactions at month end. More than The month end closing process is better 2,000 business unit reports are produced at supported and daily reconciliations (front month end. The project has also given CSG and back office systems) across the business an opportunity to bring some smaller are more timely. At the same time, business units onto the new PeopleSoft operational risk has reduced because the IT platform. business is now based around a flexible,

This is the first major implementation of “future-proof” platform utilising the latest third party software applications operating technologies and applications. in an Oracle/Unix/NT environment for CSG The new solution facilitates easier in Europe. The project is also one of the integration with new applications, largest global implementations of its kind maintenance and customisation and, as a and has already delivered significant result, provides the potential for long-term benefits. Most importantly, it has met cost savings. business units' need for greater control and Running parallel to the project, an ERP IT ownership of their part of the organisation. Competence Centre has been established, which provides an excellent framework for future initiatives, including the integration of other business units, such as Winterthur. Please contact the KPMG Consulting marketing team: For further Atos KPMG Consulting information: One Canada Square London E14 5AG Tel: +44 (0) 20 7896 5000 E-mail: [email protected] Internet: www.atoskpmgconsulting.co.uk

The client’s viewpoint from outdated legacy systems to state-of-the- "This project proves Atos KPMG Consulting's art technology. The complexity of this cannot ability to deliver large implementation be underestimated." said Urs Oberholzer, ERP programme support for a major financial and IT programme director, CSFS. services organisation in Europe," said User feedback has been very positive and the Stefan Hilber, programme and business overall solution is stable and meets director of CSG. “We are already seeing expectations. The infrastructure now provides the business benefits of more accurate, a robust platform for future development. more timely information." Atos KPMG Consulting has been selected as The implementation partnership - covering the implementation partner for a further the banking organisation, PeopleSoft and PeopleSoft Financials programme. This will Atos KPMG Consulting, delivered a high build on the backbone of the new financial ‘We are already seeing quality solution that brought the business solution to enhance functionality and deliver the business benefits of units and the IT function together as a further benefits, such as addressing the strong, focused and motivated team. business requirements to meet new VAT more accurate, more "The initiative for change came from the regulations and improving information on timely information business units, and as they took a major role cost/management accounting, as well as coming through the in all stages of the implementation, the fixed asset management. project was able to deliver what was systems’ The programme will also entail the required," said Stefan Hilber. implementation of PeopleSoft 8. This will

Stefan Hilber - programme & business director, CSG "Financial information can now be captured transform the existing general ledger into a via standardised transactional accounting 100% internet-based solution, representing applications and then aggregated, based on one of the largest e-general ledger specific business unit requirements. The implementations in the global financial implementation also enabled us to move away services industry.

10318 The purpose of this publication is to give a general overview and not to provide specific advice relevant to any circumstances. It is recommended that L6060c professional advice is sought before any action is taken. This publication is correct to the best of our knowledge and belief at the time of going to press. © Atos KPMG Consulting 2001