Need for Speed to Develop Strategy and Transform Business Operations of the Norwegian Central Securities Depository
Verdipapirsentralen (VPS) is the Norwegian Central Securities Depository providing services for investors, intermediaries and issuers to track ownership, manage securities and secure rights.
- Industry
- Financial Services
- Region
- Norway
- Alliance partner
- IBM
- Solution
- Application Development & Integration
- IT Transformation - Strategy and Architecture
- Portals
Based in Oslo, VPS is organised in 4 business areas: Register of Rights; Clearing and Settlement; Issuer Services; Mutual Funds.
VPS is a full member of the European Central Securities Depositories Association, which creates legal and technical standards facilitating improved communication and reduced costs for cross-border securities activity.
Business Requirements
VPS is characterised by its securities expertise and reliable delivery. The European securities market is undergoing fundamental changes with a move away from national stock exchanges and depositories in favour of central bodies across countries. In addition, legislation and deregulation act as change triggers.
The consequence of external changes was a major risk to VPS. Management recognised agility and flexibility as the keys to turn challenge into opportunity. Part of the vision was to launch new products and services in multiple channels to:
- leverage web-enabled technology for all front-office processes
- establish virtual self-service capabilities for partners and customers
- facilitate ASP (Application Service Provision) for customers of Mutual Funds.
VPS management recognised that it needed a clear view of the business strategy and transformation required to critical business operations. The need for speed was a critical success factor to enable VPS to launch new products and services quickly. VPS valued the benefit of partnership with a professional service provider for management consulting.
In order to facilitate swift results, the partner needed strong technology consulting and systems integration skills in complex environments supported by effective project and programme management strengths. And the partner needed demonstrable talents to leverage E-Business and a good understanding of the financial services sector globally.
Capgemini satisfied management that it could contribute with its capabilities encompassing process, methods and systems, and facilitate VPS to develop the strategy and deliver the vision in partnership.
The Solution
The consulting attributes and technical skills that VPS sought demanded disparate and diverse talents to facilitate quick-wins. Capgemini quickly set up joint programme teams in discrete areas for:
Financial Instruments
The essential starting point, web-enabled technology was used to support operations for financial instruments in Corporate Action System (CAS). Business functions and interfaces to legacy systems were developed, and the application deployed in 8 months.
Mutual Funds Administration
Project ‘Fond2000’ was launched to administer mutual funds via the web. Fond2000 comprised 3 core modules - front-office service for unit holders, distribution channels, and back-office administration. The front-office service for unit holders was deployed in 4 months, with the whole project lasting 18 months.
Strategy & Transformation
Capgemini started developing the business strategy and transformation required supporting the vision with senior management at VPS. The result (‘As-Is’ and ‘To-Be’ models) was accomplished in 2 months. Innovation was a key element - related business processes were prioritised, packaged and passed to other projects or streams while the phase was still in progress.
New Products / Services (NPSD)
Using input from the business strategy and transformation stream, a separate team defined a model to facilitate new product launches by VPS. Lasting 7 months, the team built a framework for project and product development using the same structured approach.
B2B Product Development
Input from the NPSD stream was used to evaluate new business ideas. Each idea was evaluated for its strategic and operational value to VPS via a structured framework. Ideas were filtered, prioritised and packaged into new product concepts.
Web-factory
Capgemini set up 3 teams of system developers and specialists to form a ‘web-factory’, dedicated to VPS. Using object-oriented design and building techniques, coupled with Capgemini’s Iterative Application Development (IAD) approach, the web-factory retained structured methods to develop and deploy packaged applications into the marketplace. Key technical components included Windows NT, IBM Visual Age for Java and IBM WebSphere, operating on an IBM OS/390 platform.
The Benefits
VPS management recognises that the agility and speed of movement shown by Capgemini contributed to an effective partnership. It has allowed VPS to re-launch itself as a player in the securities market with new products and services that leverage the latest web-enabled technology.
The use of IBM WebSphere on a business critical system represents a ‘first’ in Europe. VPS attributes the successful design and deployment, especially the IAD approach to deliver quick-wins, to Capgemini. Thanks to Fond2000, VPS has already launched profitable ASP services to customers of Mutual Funds.
CAS, Fond2000 and further investor services facilitate a launch of a Business to Business (B2B) marketplace, allowing VPS to enjoy optimised efficiency and reduced operational costs, as well as to offer the same benefits to issuers, investors and intermediaries alike.
The most valuable contribution by Capgemini has been its innovative and structured approach to management and technology consulting and the ensuing technical development. This has facilitated quick-wins for VPS at the earliest point in project life cycles. Management has adopted the approach as a model to serve business requirements for VPS in future.
Written in co-operation with Verdipapirsentralen
