Legacy Systems …. arghhh !

Are they truly the bane of innovation or just a series of surmountable barriers?

Erik Fenna, CIO P&N Bank

August 2015

Barriers to innovation

• Cultural resistance a.k.a. Fear and Loathing in IT

• NIMBY and NIH

• Everything costs at least a $ million

• It wasn’t in the budget

• It’s not a priority

• And of course, you could fall back on “legacy systems”

August 2015

Barriers to what, exactly?

• Replacement systems

• New, complementary systems

• Process improvement

• New products and services on existing platforms

• Wholesale change

These are opportunities !!

August 2015

What is a “Legacy System”, anyway?

• Pretty much anything that

– was installed ages ago and is still running – or …

– was already installed recently and not amortised yet, or

– near the delivery phase for future implementation, or

– can be used as an excuse to avoid a “yes” to something new

August 2015

• Cultural problems need cultural change, first

• Process improvement is a state of mind

• That hoary old beast – quantifying financial return

• Ineffective leadership

• Insufficient buy-in

So what is the problem?

August 2015

• Vision

• Executive sponsorship

• Cultural expectations

• Communication

• Valued partners

A toolchest

August 2015

• Phase 1 improvement – a simple upgrade

– worked fine, but no buy-in

• Phase 2 migration – wholesale change

– significant change, broad acceptance

• Planning, communication, training, communication, testing, communication, go-live, communication

Case study – CRM

August 2015

• Sub-optimisation v. Systems thinking

– Culture

– Resourcing - can the team be too big

– Technology

– Connectivity, data transformation and data migration

– Training

– Down the track – improving the improvements

Thinking Big

August 2015

• How to roll out a complete replacement for broker lodgement when the legacy system is already running

• Parallel operations

• ESB’s and transformation

• testing

• Keeping the end state in mind

Case study – LIXI 2.0

August 2015

LIXI 2.0 Strategic Solution Architecture

Lender

Systems

LIXI Data

Dictionary

Electronic

Guidebook

Broker Systems

CAL 2CAL 1.x

Lending policy and

document templates

Gateway

transformation

Loan

assessment

August 2015

Legacy support

CAL 1.x

CAL 2

CAL 2 to CAL 1.x

transformation

CAL 1.x

Lender

Gateway

CAL 2

Aggregator / Broker

CAL 1

Aggregator / Broker

Loan

Origination

August 2015

Future proofing

CAL 1.x

CAL 2

CAL 1.x

Lender

Gateway

CAL 2

Aggregator / Broker

CAL 1

Aggregator / Broker

Future-proof

Lender Gateway

Legacy

Gateway

Loan

Origination

August 2015

Automated Testing

CAL 2

CAL 2

Lodgement Platform

Lender Gateway

Testing System

Loan

Origination

August 2015

What is a “Legacy System”, anyway?

Your current implementation, next year

Legacy Systems …endless opportunities.

Erik Fenna, CIO P&N Bank