HDFC ( Housing Development Finance Corporation ) bank is one of the largest Bankss in India. It was incorporated after the RBI ( Reserve Bank of India ) allowed private Bankss to put up. It is regarded to be a portion of the ‘big four ‘ Bankss of India along with ICICI, State Bank of India and Punjab National Bank. It was promoted by the fiscal company Housing Development Financial Corporation which is regarded as a prime fiscal company in India ( established in 1977 ) . HDFC bank self-praise of 1725 subdivisions and estimated more than 4232 ATM ‘s in 779 metropoliss across India with all subdivisions linked online on existent – clip bases. It is headquartered in Mumbai, India. Mr Aditya Puri is Chairman of HDFC Bank and Mr Keki M Mistry is Vice – Chairman and CEO of HDFC.
The entire income of HDFC bank has increased from 19622 Rs crores in 2009 to 19980 Rs crores in 2010 i.e. by 1.8 % . Equally far as the Net net income is concerned it has increased from 2245 Rs crores in 2009 to 2948 Rs crores in 2010 interpreting to 31 % addition in net net income. HDFC Bank has entire assets of 22458 Rs crores for twelvemonth 2010.
Merchandises offered by HDFC bank:
The assorted services that HDFC bank provides to its client are:
Recognition Card games
Oracle Financial Services Software:
Oracle Financial Services Software Ltd. is the banking solutions supplier to HDFC bank. The ERP package that was decided to be implemented at HDFC bank is called ‘FlexCube Core Banking ‘ . The execution of ERP package was carried out by one – flex Solutions Ltd which was acquired by Oracle Corp.
FlexCube Core Banking:
Oracle ‘s FlexCube claims to assist the Bankss overcome stiff competition, decrease in borders and increase the client satisfaction by making a one of a sort advantage that is built upon improved net income borders and increase client satisfaction. Oracle FlexCube allows the Bankss to derive consecutive – border cost advantage over its rivals through its consecutive – through processing and job handling. Besides in add-on to this solution supports the regulative demands that are prevailing in this market through extremely secured informations direction system which is capable of back uping 3rd party packages. Oracle FLEXCUBE Core Banking ‘s application architecture supports agile and concern procedures direction utilizing Business Process Execution Language ( BPEL ) , service-oriented architecture ( SOA ) , and a Web services-based manner.
Reasons for ERP Implementation:
Problems with the old system:
HDFC bank was the first Indian bank to follow I – Flex ‘s FlexCube Core Banking ERP. Some of the grounds why HDFC decided to implement ERP were:
HDFC wanted to migrate from its old ERP platform to a new one because after the enlargement of HDFC the old platform was non capable of managing integration and managing the new informations.
The old platform that was present was non internet friendly. It failed to back up the integrating with new lines of informations transportation like cyberspace banking, nomadic phone banking and payments, on-line card mandate etc.
It needed a much larger or robust platform and the handiness of resources for any future developments and enlargements.
There was besides an built-in demand for quicker clip – to market for the merchandises which were another mistake with the old system. This was a really of import point because of the cut – pharynx competition in of all time spread outing fiscal services market where debut of new merchandises and strategy is the order of the twenty-four hours.
Besides HDFC bank had to alter its concern theoretical account and the operational theoretical account from de – centralized to centralise.
Besides HDFC bank needed the standardised IT platform and substructure due to HDFC IT policies, demands and operating processs.
The old system had no option of being updated.
Besides the old system failed to integrate new strategies like flexible mortgages, client loans and assorted types of sedimentations.
Real – clip processing was non an option in the old system.
Inability to bring forth in short clip sophisticated coverage and analysis both for internal and external use.
Needs of HDFC bank:
HDFC started to scan the IT services market to happen an ERP fiscal solutions bundle that would supply:
Rapid and non – boring integrating or interfaces that would be easy to utilize.
Better deepness and comprehensiveness of the functioning capacity of system.
Quicker clip to market for its new merchandises.
A web solution that was recognized worldwide but besides had a local presence in India so that it had the necessary experience and apprehension of the Indian head set.
Scope of the Execution:
There were in peculiar two lines of concern in which the system was initiated. They were:
National & A ; International payments, SEPA conformity
Trade Finance – LC, LG, Bills, Collections
Treasury – FX, MM
Detailss of the undertaking:
It was decided between I- flex and HDFC that Core Solution Stack in line with the banking fiscal solutions would be implemented. It was make up one’s mind that Inntron would be the system planimeter and implementer for the undertaking with the proficient aid provided by I – Flex. It was decided that the relationship that should be sketched out between HDFC bank, I – Flex and Inntron should be back – to endorse or an independent contract i.e. there would be bi – sidelong contracts between HDFC bank and Inntron, Inntron and I – Flex and HDFC and I – Flex. It was decided tom implement it on ASP footing.
Approach to execution:
It was decided that a ‘Big Bang Approach ‘ with high emphasis testing and three mock drills would be carried out. The bank was already running on one system and dividing it into subdivisions was hard. Besides dividing of national colony, cardinal bank coverage, rapprochement and consolidation would hold been really hard and resource hungry. This would hold prolonged the clip for execution and contradict HDFC bank ‘s desire for full transition and re-organization within 12 months.
High degree clip lines for different stages
PWT – 5 hebdomads – done by Inntron
GAP analysis – 6 hebdomads – done by Inntron
System initial set-up and parameterization – 14 hebdomads – done by Inntron
HW size and procurance ( in analogue ) – 13 hebdomads – done by IBM
IT substructure and comm. lines upgrade and set-up ( in analogue ) – 22 hebdomads – done by HDFC bank
System ‘s parametric quantity and merchandises proving – 12 hebdomads – done by Inntron and HDFC bank
Extra set-up and parameterization – 2 hebdomads – done by Inntron & A ; i-flex
Systems Integration proving ( incl. parametric quantities and merchandises ) – 6 hebdomads – done by Inntron, i-flex and HDFC bank
Train the trainers ( in analogue ) – 4 hebdomads – done by Inntron
Mock migrations and emphasis proving – 6 hebdomads – done by Inntron, i-flex and HDFC bank
End user preparation ( in analogue ) – 7 hebdomads – done by HDFC bank
Post Go-live support – 8 hebdomads – done by Inntron & A ; i-flex
For each stage
Deliverables of the stage – Documents and mark offs for each of the above stages
Resources ( from i-flex every bit good as bank ) involved – Numberss, types ( proficient, functional, PM, examiners, SME etc. )
i-flex proficient – 10 adult male months
Inntron proficient – 60 adult male months
Inntron functional – 80 adult male months
Inntron PM – 12 adult male months
HDFC bank PM – 12 adult male months
HDFC bank full clip undertaking squad – 36 adult male months
HDFC bank portion clip undertaking squad – 90 adult male months
Oversight direction schemes used
Undertaking patrons ( bank ‘s CEO and COO ) introduced
Project Steering Committee meeting biweekly
Any bank specific measure
Conformity with HDFC Indian criterions
HDFC Indian QA and supervising
Data migration measure:
High degree stairss involved – scheme, informations function, public-service corporation readying, extraction from bequest to level file, file to FlexCube, mock tallies, proving, etc.
Data migration scheme developed by Inntron & A ; i-flex, approved by HDFC bank
Data function conducted by Inntron and approved by HDFC bank
Data upload to FlexCube public-service corporations developed by i-flex and Inntron
Extraction from bequest system executed by bequest system seller, demands prepared by Inntron
Data uploads to FlexCube conducted by i-flex and Inntron, verified and approved by HDFC bank
Sizing – IBM
Procurement – HDFC bank and Stone Computers ( an IBM authorized reseller )
Setup – IBM
Maintenance – IBM
Support – IBM and HDFC bank
Third party package is maintained and supported by the several package seller in conformity with the HDFC bank internal regulations and processs
i-flex package ( all in conformity with HDFC bank internal IT policy, regulations and processs )
Setup – Inntron
Maintenance – Inntron
Support – Inntron
Post – Production support:
Local support would be provided to the bank. Besides a aid desk system has been integrated which will let the bank to track issues and the stairss to be taken to control them.
Fall – outs of the execution:
What was done right:
Close trailing of all the resources and execution.
Prevention of feeling of paranoia among the execution squad during each phase.
Regular visibleness to all interest holders so that they have a clear thought about what to anticipate from the ERP.
Daily treatment of employee issues so that there is no opposition.
What should hold been done otherwise
No insisting on the creative activity of full clip dedicated bank execution squad from the start of the undertaking. This resulted in a longer manus over clip from the system planimeter to HDFC bank.
Besides it took a long clip for HDFC ‘s bank forces to acquire accustomed to the new ERP.
The execution of FlexCube has resulted in Higher Return on Investment and Lower cost of ownership for HDFC bank. The bank ‘s IT section caput count was reduced by 42 % .The bank ‘s back office operations section was wholly centralized and caput count reduced by over 50 % . The bank ‘s front office forces was relieved from back office responsibilities and wholly focused on gross revenues and client services. Customer ‘s information gathered, stored and analysed has increased by over 70 % for retail clients and over 50 % for corporate 1s. A scope of new services introduced such as online card mandate, cyberspace banking, and coverage. Besides HDFC bank has had an mean one-year return on equity traversing two old ages. The operating statisitics can be seen in appendix fig1
Domestic and International Payments will enable staff decreases and faster and more dependable services to clients
An online and timely coverage enabled will let all degrees of direction for easy analysis and fast response to market tendencies and client ‘s demands
A scope of new merchandises will be introduced and new client growing rate is slated to increase, from 15 % to 35 % , on a annual footing
Customer hiting system interfaced to FlexCube will cut down the mean clip for determination devising from 2.5 yearss to 6 Hourss