Choosing Platform Automation Isn't for the Fainthearted
David L. Clark · ABA banking journal · 1993
Platform automation systems lack inherent value. But the right system can improve a bank's efficiency and competitiveness. For each bank that has leveraged its investments in platform automation, many have failed to realize expected benefits or have not been able to justify the necessary expenditures beforehand. Five steps are necessary to ensure the successful adoption of a platform automation system: (1) information technology planning; (2) vendor evaluation and selection; (3) cost analysis and justification; (4) negotiation of a viable contract; and (5) management of the implementation process. Planning. In the first step, the bank aligns its technical and support capabilities with its strategic business plans, with the help of managers and technical personnel. Without adequate planning efforts, system initiatives are completed over-budget and late--and usually are ineffective. To develop a plan, those assigned to the planning effort must consider the bank's short- and long-term strategic business objectives, current and anticipated transaction and account volumes, existing and anticipated work flows, technical constraints of installed acceptance by users, software functionality, technical performance requirements, objectives for the system, and anticipated benefits. Banks should create a vision for the technology that specifies the objectives for platform automation and describes how the bank will use the technology, says Anne Carter, executive vice-president of Central Bank & Trust Co., Lexington, Ky. the bank's personnel have the knowledge and skills to maximize the bank's investment in a system should be considered as well, she notes. Otherwise, paybacks may never materialize. Central Bank & Trust Co., with $380 million in assets, is piloting platform systems at two branches. System configurations will also impact costs and benefits, and should be considered in the planning process. Vendors usually deliver platform automation through two general system architectures: personal computer-based or controller-based. Personal computer-based systems link intelligent workstations or local area networks to host computers that process such core applications as demand deposit accounts, savings accounts, and mortgages. Since workstations are capable of operating independently of the host computer, most platform functions can continue when the host is down. Controllerbased systems link terminals to minicomputers (controllers) which, in turn, are linked to the host computer. Depending on the configuration, controller-based systems might be able to operate when the host is down. However, when the controller fails, the platform system is inoperable. Whether technology is operated inhouse by the bank or is under an outsourcing arrangement will narrow the field of viable platform automation vendors and architectures from which to choose. For example, in a service bureau environment, only two or three alternatives may be endorsed or supported by the service bureau vendor. Although this precludes bankers from buying certain vendors' products, they gain comfort in selecting a platform automation system that has been proven to work with the core information systems. Bankers may find it useful to contact vendors (on a preliminary basis), other bankers, and experienced consultants as they plan the system. Vendor evaluation. Once bankers complete the planning phase, the information collected and developed should be packaged in a request-for-proposal (RFP) document. RFPs inform prospective platform automation vendors of the bank's current situation, define specific requirements to which the vendors must respond, and specify proposal preparation instructions. The RFP should provide details about the current information systems environment. The bank's current method of processing (in-house, service bureau, facilities management, etc. …