meet the management aib investor day london, 8 th november 2006 steve meadows group director,...
TRANSCRIPT
Meet the ManagementMeet the Management
AIB Investor DayLondon, 8th November 2006
Steve Meadows
Group Director, Operations & Technology
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A number of statements we will be making in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward looking statements. Factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to, global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competitive and regulatory factors and technology change. Any ‘forward-looking statements made by or on behalf of the Group speak only as of the date they are made.
visit www.aibgroup.com/investorrelations
Forward looking statements
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O&T formed to change AIB’s operating model
3,786
20,240
2006
84%
O&TAIB Group excl O&T €372m
€1,873m
Costs
16%
84%
16%
People
How our people are deployed
Back office operations 2,124
Technology 1,266
Enterprise support 396
Pre-Oct ’05 O&T functions dispersed and fragmented across operating divisions
O&T scope today
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Operations & Technology (O&T)
A key enabler of our enterprise agenda
Building an environment, framework and model
to sustain a positive gap between income and
cost growth
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Delivering Operational Excellence
Transforming the Business Operating
Model
Enabling the enlarged Enterprise
O&T strategy – 3 components
2005 2009
RiskManagedCost
Service Quality
Operational Excellence
End game objectives
• Rapid speed to market
• Volume growth cost indifference
• Support business volume growth
• Business acquisition capability
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Datacentre Relocation
One Network (VoIP)
XP Desktops
Infrastructure upgrades
Practical first steps
O&T investment programme - a €400m commitment
Operating model consolidation
Wholesale Core Banking
Retail Core Banking
Credit decision and support
Transforming to support future growth
Basel II SOXSEPA
EU Savings directiveAnti Money LaunderingConsumer Credit Act
Complaints Management
Regulatory agenda
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Driving quality, risk and cost benefits
Key Initiatives
• Right first time
• Total Quality Management (TQM)
• Automation tools
• Elimination of redundant activities
• ABC unit cost management
Objectives
• Service delivery cycle times down by 40%
• Error rates / rework down 35%+
• Reduced unit production costs
• Controls framework embedded in production operations
Delivering Operational Excellence
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Investing to transform our business
Key Initiatives
• Core banking systems renewal
• Legacy systems retirement
• Utilisation of best-in-class offshore developed systems
Objectives
• Retirement of 20+ legacy systems
• Core systems TCO reduction
• Further unit processing cost reduction
Transforming the Business Operating
Model
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Developing a standard operating model
Objectives
• Rapid speed to market
• Volume growth cost indifference
• Support business volume growth
• Business acquisition capability
Key Initiatives
• Standard ‘1-Way’ operating model
• Fully aligned business operating model deployment
• Production centre consolidation
• Common IT infrastructure deployment
Enabling the enlarged Enterprise
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Delivering Operational Excellence
Transforming the Business Operating
Model
Enabling the enlarged Enterprise
O&T summary
2005 2009
RiskManagedCost
Service Quality
Operational Excellence
Underpinning our productivity drive
Ensuring we can maintain a gap ≥ 3% between income
and cost growth
