ENABLING BUSINESS STRATEGY WITH IT AT THE WORLD BANK

Archana Natarajan PGP/12/007 (A10) G V Raghavendra Raju PGP/12/257 (A20) Kapil Prakash Bagade PGP/12/037 (A30) Neha Anand PGP/12/112 (A40) Prashanth S PGP/12/251 (A50) Satyajit Singh PGP/12/198 (A60) Vaze Shrinivas Vinayak PGP/12/074 (A70)

Section A Group 10

About The World Bank

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In the Business of International Economic Development Mission:

Fighting poverty with lasting results Providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors To be an excellent institution able to attract, excite and nurture diverse and committed staff with exceptional skills

Owned, financed and run by 184 member countries One of the worlds largest sources of development assistance and loans Increasing importance of knowledge services for assistance of countries

Five Agencies, One Group

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International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA)

The World Bank

International Centre for Settlement of Investment Disputes (ICSID)

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

Change in Business Strategy

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New vision of CEO based on changing trends Two fundamental shifts in business strategy:

Decentralization: Moving closer to clients by decentralizing staff and decision making to local offices in more than 100 client countries Creation of a knowledge bank: Delivering more comprehensive and integrated development solutions by increasing collaboration, consultation, and knowledge sharing both within the organisation and with partners and stakeholders at all points in the development process

Appointment of CIO Mohamed Muhsin for revamping the information systems and building a global network

IT Mission
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Linked to change in business strategy Two competing objectives:

Enabling a global decentralized organization close to the customer Providing the collaborative tools and global development knowledge that would help the far-flung Bank staff and stakeholders work more closely and effectively than ever before

Leveraging IT to scale up business Creation of IT group Information Solutions Group (ISG)

CIO working closely with number of senior leaders to establish IT plans and strategies

Transforming the Banks Business

Decentralisation

Radical rethink required of Bank systems to reach clients better

Establishment of a robust knowledge management system Required a sound knowledge base to support activities of the Bank Emphasis on professional networks of staff from related areas of expertise Emergence of various thematic groups emerging around development issues IT considered a key enabler of the matrix Knowledge sharing through networks Addressed problem of knowledge retention

Creation of the Knowledge Bank

A Matrix of Regions and Networks

A Matrix of Regions and Networks

Regions
Africa East Asia Europe & Central Asia Latin America & Caribbean Middle East & N. Africa South Asia

Networks

Infrastructure Private Sector Development Financial Services Human Development Poverty Reduction Economic Management Environmenta lly & Socially Sustainable Development

Aligning IT to Enable New Strategy

High-priority issues when Muhsin joined:

Y2K Delivering round-the-clock global support Building a foundation for global knowledge sharing
Consistent support for this from CEO

Increased IT expenditure to meet additional needs

Substantial simplification and strengthening of funding and governance process

Earlier very hard to understand and complex

Clearer accountability for IT function for service delivery Also clear accountability for governance groups

Three Main Categories of Services

Basic-Service Package
Standard underlying network infrastructure Desktop software, email, workgroup file storage, standard intranet platform, global support center Global master service-level agreement in which all staff get same package at same per capita cost

Corporate Information Services

Systems and applications infrastructure to support enterprise functions

Optional IT Services
Purchase of desktop and notebook PCs, videoconferencing activity, remote access, wireless devices, longdistance telephone calls

IT Framework 1996-2002
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Five Point Program established Standardization and integration of IT infrastructure Robust information management architecture created
Global Knowledge Sharing Integrated Enterprise Systems High-Speed Global Connectivity

Programs

Foundation

Enterprise Computing Services

Global Customer Support
1996 Y2K

2002

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Main Results of Five-Point Program

1996
Computing Infrastructure
No two computers set up exactly the same Daily problems with freeze-up and re-boot Every change required a visit to the PC High reliability and user satisfaction 24X7 Global Support Center Remote install and management of services Global enterprise network with 109 sites Integrated voice, data and videoconferencing HQ LAN speed increased by a factor of 1,000 Global link capacity increased by a factor of 15

2003

Connectivity
Separate voice and data, no video Connectivity slow and capacity low No technology for decentralized operations

Systems and Data

100 irreconcilable databases Massive duplicate data entry Country offices rely on local systems Basic Treasury operation Almost entirely paper based Large gaps in official business records No concept of knowledge management No collaborative information solutions Consolidated corporate data store Commercial integrated software packages Single resource mgmt. system for all offices Sophisticated Treasury products Electronic capture, storage and retrieval Enterprise electronic information warehouse Knowledge communities developed Partnership with online knowledge-sharing networks

Information Management and Sharing

Services Provided
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Voice, data and videoconferencing services provided to country staff and clients from 110 country offices Real time monitoring of network in modern control room staffed with 30 support personnel Connection using geostationary satellite for 3/5 of the country offices, remaining 2/5 connected with fiber-optic cables

Partnering with IntelSat and private sector vendors for satellite services and link maintenance But mesh network connecting 110 networks managed as a private global network

This was because of challenges of local conditions Offices located in far-flung places sometimes not covered by private vendors, so outsourcing not preferred

Network Architecture
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Integrated capacity from three satellites and a few dedicated terrestrial links to cover all World Bank offices worldwide Different techniques used to optimize utilization:

Demand Assigned Multiple Access (DAMA): flexible allocation of bandwidth among sites Single Channel Per Carrier (SCPC): dynamic sharing between voice, data and video services Time Division Multiplexing / Time Division Multiplexing Assigned (TDM/TDMA): sharing of satellite capacity

Conversion of full network in 2003 to run over a single protocol IP

One of the first in the world to optimize traffic across a single protocol data stream

Summarizing the change

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Building Local Capacity Knowledge and learning services orientation Wider, decentralized knowledge base Improved client responsiveness and satisfaction

Benefits of Global Network

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Standardized and Streamlined Global Business Processes

Improved cost effectiveness and productivity Real-time project status reports from field-based project staff Easy use and access of knowledge systems and documents Standardized global payroll and HR processes Better control and deployment of resources in remote offices Improved client responsiveness and project success indicators

Accounting office in Chennai for all account-related back-office processing Help desk 24X7 support of worldwide operations Transactions could be positioned at any location Offshoring

Benefits of Global Network

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Responding in a Crisis

Communication in times like post-9/11 and during the SARS crisis Voice, data and voice traffic when restrictions on travel imposed

Spurring the Knowledge Revolution in Developing Countries

Many challenges faced in IT: global differences in connectivity, tacit knowledge of individual experts and professionals Importance of addressing non-technical aspects as well Developing knowledge and learning programs around many themes and formation of thematic groups Global Development Learning Network (GDLN) established

IT Framework 2002-2006
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e-Business Partnerships Standard Internet Platforms: e-Portals Support upgraded Development Gateway Stronger informatics support to Bank clients Internal Simplification Operations Simplification: Personalized portals, e-Dashboard/planning tools e-HR: staff portal, managers portal, process automation Risk Management Renewal of treasury and loans systems Enhanced information security Business continuity Decentralized Global Operations Network of distance learning centers Remote access: anywhere, anytime

IT Performance Management Client Satisfaction index 99% performance of network 24X7

FY02 FY03

FY04 FY06

FY05

Reliable IT Services Foundation

Building on the foundation

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Use of Web Portals: Client Connection

New secure Website offering government officials and projectimplementing agencies quicker access to information Main objective of support better-informed decision making and simplify the process of doing business with the Bank Access to confidential information about projects and loan portfolio, as well as to World Bank knowledge resources
Information portals with seamless integration Government organizations looking to the Bank for direct assistance and advice on IT components of their development projects Informatics services to provide expertise to clients through Banks frontline country programs

Focus on the Frontline Business

Key Learnings
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Use of IT as a strategic tool to change the way business operates IT as a global tool to integrate as well as decentralize Keeping the business leaders fully engaged on major change initiatives leveraged with IT Managing expectations and emotions of people involved in the change happening Importance of sustained support from the top management Importance of a good IT team

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Thank You!