fasttrack it integration for sallie mae merger final 1

7/26/2019 FastTrack IT Integration for Sallie Mae Merger Final 1

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Fast Track IT Integration for theSallie Mae Merger

July 2015

Presentation Document

Idot SuriadiFernando SalomoDhoni !ahadiSyl"ia #artika

MM $%M &'ecuti"e ( 2) *

*ase Study


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Contents

+ Case summary

+ Main issue+ Pro,lem Statement+-nalysis of solution alternati"es+ !ecommendation


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Case Summary

.Founded in 1/2 in !eston-

. For rofit go"ernment sonsored

. Focused on secondary market

. 350 ,illion ortfolio in 2000

. Founded in 1/40 inIndianaolis

. on rofit comany

. 314 ,illion ortfolio in 2000


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Case Summary

. 6igh *I7 turno"er

. 7utsourced Strategic-lications

.Shrinking IT 8orkforce

20 years tenure of *I7%reg *lancy

Successful internal

systems 8ith lo8oerating costs

%ro8ing IT 8orkforce

Different Works Environment


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Case Summary

%oals and Strategy ac9uisition $S- grou ,y Sallie Mae

Goals :

. Sustaina,le dou,le digit gro8th

. &'and role in industry :direct lending;

. !ationaliAing transitioning or retiring IT systems :500

different technologies ,et8een 2 comanies


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Contents

+ Main Issue

+ *ase Summary

+ Pro,lem Statement+-nalysis of solution alternati"es+ !ecommendation


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1B IT 7rganiAation Ser"ices :e'ternal used; alications and Internal used alications

should ,e defined soon to meet cost reduction target and dou,le digit gro8thC singleteam leader single ser"ices alication single internal used alication should ,e

chosen

2B Single Data *enter location should ,e define and D*! management should take

laceC

B Peole issueC 8hen single alications alied transfer kno8ledge should take lace

8hile they kno8 their Eo, 8ill no longer a"aila,le after the rocess is doneB

The consequences of Sallie Mae Merger Proect M-I ISS$&


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!

The consequences of Sallie Mae Merger Proect

S7$!*&

M-I ISS$&

IT System:

The loan rocessing system and ,ack office system should ,e united and integrated tomeet the eak loan rocessing season target on June 1 stof each year B

There should ,e a team leader for IT integration roEect

Data *enter location should ,e define and D*! management should take laceC

The decision on e"ery acti"ities should ,e made 8ith lo8 cost oerating on time and in>,udget 8ell recei"ed ,y stockholders


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"

The consequences of Sallie Mae Merger Proect

S7$!*&

M-I ISS$&

#usiness Pers$ective:

Sallie Mae ac9uired its maEorcometitor $S- %rou on July 12000 for $SD 0 million

*omany sought to attain dou,le>digitgro8th in its ,usiness as a result of themergerB

Peo$le issue:

8hen single alications aliedtransfer kno8ledge should take lace8hile they kno8 their Eo, 8ill nolonger a"aila,le after the rocess isdoneB


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Contents

+ *ase summary

+Main issue

+ Pro%lem Statement+-nalysis of solution alternati"es+ !ecommendation


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&e' Sallie Mae IT ($$lication Shoul) %e *ea)y in +ast Track

S7$!*&

Single alication in single data center 8ith minimum risk P!7(digit gro8th in its ,usiness as a result of the mergerC make the

ser"ice alication ready for use in user friendly :non e'erienced eole; manner ,uthas the full functionality ,efore June 2001 to con"ert 350 ,illion target loans into

realityB IT 7rganiAationC should maintain $S- %rou=s team or Sallie Mae=s TeamG

2B Single Data *enter location should ,e in !eston :Sallie Mae=s; or in Indianaolis :$S-%rou=s;

B Peole issueC ho8 to adEust from not>for>rofit culture :$S- %rou=s; to a result>dri"en

for>rofit culture ho8 to encourage some key erson of IT team to stay until the

merger 8as comlete


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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternatives

H Peole Management

+ &'ecuti"e Summary

Contents

H *hoosing Data *enter


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Different #ackgroun) Com$anies are Merge)

S7$!*&

!edundancies should ,e reduced ne8 target should ,e alied --


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Different #ackgroun) Com$anies are Merge)

S7$!*&

!edundancies should ,e reduced ne8 target should ,e alied --


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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternativesH Different (ackground should

,e $nited

H Peole Management

+ &'ecuti"e Summary

Contents

H The #est IT System ?

@rgani>ation shoul) %e ChosenH *hoosing Data *enter


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Choosing the %est IT systems

S7$!*&

--


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,e $nited

H The (est IT System

7rganiAation should ,e *hosen

H Peole Management

+ &'ecuti"e Summary

Contents

H Choosing Data Center 4ocation


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Data Center 4ocation

S7$!*&

Merged comany need only single location data center --center facility in !eston could ,e leasedout an attracti"e rice

Decision Indianaolis 8as clear cost sa"er


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,e $nited

H The (est IT System

7rganiAation should ,e *hosenH *hoosing Data *enter


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Peo$le Management

S7$!*&

--


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Contents

8.

+ *ase summary+ Main issue+ Pro,lem Statement+-nalysis of solution alternati"es+ EBecutive Summary

S f l I t ti f & S lli M


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Successful Integration of &e' Sallie Mae

S7$!*&


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L

TA(& @,

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