...Case Write-up (Case 1) 1. Problem Analysis Providian Trust is a trust company that is a leader in the financial and fiduciary service which locates in New York with total 216 branches. Recently, there was an extraordinary difference of opinion between Providian Trust’s internal auditor and the leaders of a major information technology project in the trust division. After reading the case, I found below problems: * Lack of effective communication and engagement with the frontline trust officer and clients for better cooperation * Lack of internal alignment, internal centralized control and team cooperation * Lack of experience * Lack of realistic project deadline for efficient * Failure to fully implement the UAT test * Training was not provided properly * Fear of change and technology 2. Recommendation * Enhance communication among all divisions and parties of the company and get the people who are going to be affected by the change to be involve in it * Extend deadlines of the project and clear deadline to set the correct expectation * Senior management’s engagement and participation is very important and should be trigger at the very early stage. * Implement a full testing of the project * Provide the proper training to users 3. Any relation or learning with the current practice in my company? Other than the call center business, my company is also an ITO company developing software and platform for internal and external...
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...Providian Trust: Tradition and Technology Business context/Key business drivers Providian Trust, headquartered in New York, is a financial and fiduciary services company. In 1994, it had 216 branches and managed $49.4 billion in trust assets with a staff of 840 full-time employees. The firm was falling behind the competition because the institutional custody business was becoming extremely technology-intensive, with some of the larger players outsourcing their entire backroom function in order to make large operations more effective. Therefore, a project was initiated to convert the trust division’s outdated information system into a more efficient system using Access Plus, a new trust and custody management software. Initiatives objectives/Benefits Intensive competitive pressures, client demands, and some internal problems were driving the need for the initiative. Specifically: 1. Competitors were having more advanced systems and technical competitive advantages 2. Clients were unhappy about the quality of the services 3. Decentralized control and lack of a clear distribution of responsibility Providian Trust wished to solve the above problems through the implementation of the new system. They also expected that the improved computerized trust system would consolidate and centralize data administration, give trust officers more time to interact with clients, reduce the number of full-time employees from 840 to 660, and save $9.2 million annually. Initiative...
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...Essay on Providian Trust : Tradition and Technology (A) 1.Business context / Key Business drivers: Providian Trust is one of the Top 10 leading trust companies that activate in delivering financial and fiduciary services. Providian runs its business using its 216 subsidiaries network. The main origin of their earnings resides in commercial and residential mortgages, as well as consumer and corporate loans. The CEO of the company, Stephen Walsh, is facing the conflicting situation that was created under Michael LeBlanc’s command. LeBlanc is the senior vice president of Trust, Investment and Treasury and is responsible for leading the company’s reengineering project that is meant to result in the successful implementation of Select One’s main software system-Access Plus-which is already used by Providian’s competitors. The alarming scarcity of control and discipline inside the trust division is one of the key factors that triggered the necessity of creating and implementing this project. |2. Initiative Objectives |Initiative Benefits | |-improve front&back offices’ way of managing the |-increase control over customers’ accounts | |accounts | | |-centralize trust information |- better and more efficient reporting system | |- reduce time...
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...June 7, 1999 Providian Trust: Tradition and Technology (A) A New CEO Within two weeks of accepting the position of CEO of Providian Trust Company, Stephen Walsh, a lawyer by training, faced an unusual corporate conflict and he would have to play the role of judge. There was an extraordinary difference of opinion between Providian Trust’s internal auditor, Peter Storey, and the leaders of a major information technology (IT) project in the trust division. “Peter’s extremely vocal point ran to the issue of documentation, that it was incomplete and should be brought up to speed,” explained Walsh. The conflict reached a climax during an Audit Committee meeting on May 13, 1995, when members of the committee, who were all on the Providian Trust board of directors, expressed to Walsh that they had lost confidence in the internal auditor and recommended that the external auditor, Steinman & Smith, do an analysis of the project documentation prior to implementation. The purpose of the project was to convert the trust division’s outdated information system into a more efficient system using Access Plus, new trust and custody management software made by Select One. The project had been initiated in 1993 under a former CEO, who had been dismissed by the board, and had continued under an interim CEO. By the time Walsh arrived on the scene, over two-thirds of the $18 million budget had been invested in the implementation of the IT project and Providian Trust had built up expectations...
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...9-707-446 REV: JANUARY 28, 2008 JOHN R. WELLS Providian Financial Corporation Introduction On October 3, 2005, Washington Mutual acquired Providian Financial Corporation, the ninthlargest credit card issuer in the U.S., for $6.5 billion. At the time, Providian had approximately 10 million customer relationships and a balance of $18.6 billion. For some observers, the transaction was merely the end of another chapter in the history of the fast consolidating credit card market.1 For Providian CEO Joseph Saunders it was vindication of four years’ hard work in turning around a company that many thought was close to bankruptcy. Saunders reflected, “I actually think that we took over a company that many people—maybe even most people—thought was going to fail”; he added, “Providian is no longer just a turnaround story, we are a success story.”2 Company History Providian began as Commonwealth Insurance, which was founded in 1904. The company survived the depression of the 1930s and, in the late 1960s, formed Capital Holdings to acquire other insurance enterprises and financial services companies. In the 1980s Capital Holdings started targeting low- and middle-income people when it established itself in Kroger grocery stores and in certain Bank of America branches. The 1984 acquisition of First Deposit Corporation from Parker Pen marked the beginning of the compnay’s focus on credit cards, which “later became [its] primary profit-making operation.”3 In the 1990s, Capital Holdings...
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...Providian Trust (1) What key issues and challenges led to the initiation of the Access+ project? The key issues and challenges let to the initiation are as follows: * The Pension and Institutional Trust Services business had $42.7 billion in assets in 1994,which was the tenth-largest provider and they were losing money. They had outdated reporting systems as far as the clients were concerned. The institutional custody business was becoming extremely technology-intensive, with some of the larger players outsourcing their entire backroom function in order to make large operations more effective. * Internal process: The administrative functions were being done both by the front and back offices. There is an environment where everybody could point a finger at everybody else if something went wrong. The trust officers blamed the operations people and the operations people blamed the trust officers. * Intense client demand: (2) What organizational changes that the company should have made during the project to ensure the success of the Access+ project? * The front office of PITS and Personal Trust and the back office of Operation department which were responsible for handling, settlement, and record keeping for securities should made the changes during the project. * All existing trust information would be converted to the Access Plus system and the Operations group would become the primary caretakers of the data, taking over sole responsibility...
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...THE iPREMIER COMPANY (A): Denial of Service Attack By Robert Austin November 19, 2003 DPDN Brian Dyrud Jennifer Paterson Paul Davidson Lindsay Neal BACKGROUND: iPremier, a Seattle based company, was founded in 1994 by two students from Swathmore College. iPremier had become one of the only success stories of web-based commerce, selling luxury, rare, and vintage goods over the Internet. Most of iPremier’s goods sell for under $200 and the customer buys the products online with his or her credit card. iPremier’s competitive advantage is their flexible return policies which allows the customer to thoroughly check out the product and make a decision to keep the product or return it. The majority of iPremier customers are high end and credit limits are not a problem, which also adds to the competitive advantage of utilizing their entire customer base. During 1999 the company reached a profit of $2.1 million on sales of $32 million. Sales had increased by 50% during the last three years and they were in an upward trend. iPremier’s stock nearly tripled after the company’s Initial Public Offering in 1998 and had continued to grow since the IPO, and eventually the stock tripled again. iPremier was one of the few companies to survive the technical stock recession of 2000. Management at iPremier consisted of young people who had been with the company from the start and a group of experienced managers that were brought in over time as the company grew. IPremier’s...
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...CASE ANALYSIS- Providian Trust: Tradition and Technology Kate Cavanaugh Stakeholders * All Employees / committees and Teams / Internal and External (e.g. Boston) * CEO Stephen Walsh * Steinman and Smith (External Auditor) * Audit Committee * Board of Directors * Select One (Software company) * Michael LaBlanc * Kay Whitney Investment (investment counsel/portfolio managers) * Steering Committee * Todd Bernari- VP of Implementation Team History * Headquarters NYC * Company lending products: residential, commercial mortgages; consumer/corp loans (principle revenue) * New CEO Stephan Walsh –Law background * 216 branches nationwide * 840 employees * Managed Total $49.4B * Pension & Institutional = $42.7B * Personal Trust Services= $6.7B (10,000 clients) * 250 Operations People “back office” * “Front office” people are Trust officers Decision: To implement new hardware and software to existing systems Case Information: * Budget $18M * New technology – Culture change- seasoned employees (20-30 years) * Lost revenue because of waived fee $2-5M * Improve Service levels to Customers * Software customized * Computer system outdated- replace and integrate new hardware and software * Responsibilities change from Trust officers to Operations managers * Train employees on systems * Reduce number of employees from 840 to 660 * ROI- $9.2M * 1010 Financial...
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...Part I: eBay’s Strategic Process Part I: eBay’s Strategic Process Our Mission eBay's mission is to provide a global trading platform where practically anyone can trade practically anything. Our Marketplace On an average day, there are millions of items listed on eBay. People come to the eBay marketplace to buy and sell items in thousands of categories including antiques and art, books, business & industrial, cars & other vehicles, clothing & accessories, coins, collectibles, crafts, dolls & bears, electronics & computers, home furnishings, jewelry & watches, movies & DVDs, music, musical instruments, pottery & glass, real estate, sporting goods & memorabilia, stamps, tickets, toys & hobbies and travel. Members from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan and the United Kingdom. In addition, eBay has a presence in Latin America and China through its investments in MercadoLibre.com and EachNet, respectively. eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company. eBay is dedicated to its community...
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...Business Process Outsourcing Introduction Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. In 2010, the Philippines surpassed India as the largest business process outsourcing industry in the world. After growing 20 per cent in 2012, the BPO industry of the Philippines is estimated to gross revenue of upwards to $25 billion by 2016. By these estimates, the Philippines' BPO industry will account for approximately 10 per cent of the nation's GDP. History...
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...BPO in India – an overview Contents I. Introduction II. What is BPO? • Types of BPO • Key services in various sectors III. Indian BPO Market IV. Market Segments and Trends • Banking sector • Insurance • Healthcare • Media/Publishing • Offshore Software Development • Network Outsourcing Services • HR Outsourcing V. Popular destinations VI. Employment opportunities VII. Key players in the market a. Indian companies b. MNCs VIII. Global competition IX. Future/outlook I. Introduction: Late 90’s has opened a new chapter in Information Technology (IT) sector in India – Business Process Outsourcing (BPO), one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Cost conscious companies in the world to gain cost savings has set up their back office operations in India. The BPO segment, which was virtually non-existent till a few years ago, has risen to be a US $2 billion industry and IDC expects it to grow at a CAGR of 54 per cent till 2006 to reach US $12 billion. A major portion of the revenues today come from customer care and back office processing services, according to IDC’s report. II. What is BPO? BPO is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the...
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