kasus benchmarking

EXAMPLE CASE "benchmarking"IT Strategy Behind the BCA Business ExpansionThursday, April 12th, 2007

EXAMPLE CASE "benchmarking"IT Strategy Behind the BCA Business Expansion

Looking at BCA now like watching elephants financial business that is not bored dancing. Although business and weights (assets) it continues to grow, agility was likewise reduced, and able to remain adaptive to the development of consumer banking business into. As if she wanted to voice the message that big is beautiful too, as long as business machines and systems capable of supporting business development. From time to time this bank has consistently launched products / new banking services. One of the latest product introduction is the system of payment for small transactions using an electronic card called Flazz BCA.

Too early to make sure whether it would be a success Flazz BCA. However, now no one can deny that the bank is successful with its network of multifunctional ATMs, Internet banking was safe (thanks to the use of tokens) and used quite a lot of customers, as well as its mobile banking offering flexibility. Listening to these products is easily seen that technology plays an important role. Its IT architecture was already made in such a way, so if you want to create a new delivery channel, it's easy, said Hermawan Tendean, Chief Manager of IT BCA. However, BCA IT systems can not be created at a time like now. It was through a long process. Proverbial, no school money, he added.


Graduates in IT from the University of San Francisco makes clear that a massive overhaul (overhauling) BCA IT systems began in the early half of the 1990s. Core banking system began to be built by using the software Marshal & Illsley Bank of the United States. That way, the back office BCA can already integrated. For example, system products (savings) or giro stages are integrated into the accounting records (general ledger modules / GL). Therefore, once thetransaction, should not be posting again to the GL module, because the system will do it automatically.

Along with the development of back office, the concept of centralized communication system utilizing the facility very small aperture terminal (VSAT) from a single provider group, namely Rintis also began to run


Systems at branch offices were standardized. According to the executives who joined the BCA since 1987 that, at the time of investment for building embedded systems reached U.S. $ 6-7 million.

BCA management improvement is then performed in the early 2000's. When it is updated with BCA IT systems introduced the concept of the Three Tiers (3-tiers), which includes: a back-end (back office), middleware, and front-end (front office). We adopted a 3-tiers after seeing the experience of other banks on the outside. We do benchmarking, mainly to Citibank and DBS Bank in Singapore. Then, studied trade-offs. So basic it from there when talking architecture BCA Hermawan revealed.

In BCA IT architecture, back-end systems run on mainframe machines as a banking technology platform called the Integrated Banking System (IBS)


IBS functions only to record the customer's balance or transaction record, while the front-end system is more focused as a second layer. Front-end systems in branch offices using a PC connected to the LAN network. As for the customer consists of multiple delivery channels, namely ATMs, Internet banking and mobile banking. Well, according to Hermwan, due to programming techniques and messaging between the back-end systems and front-end is different, then bridged with middleware applications. In operation, IBS along with a number of application-oriented systems of other operational duties in an integrated service platform to handle form 3.5 to 4 million transactions per day throughout the year.

Back-end systems are stored in the data center BCA. Related to the data center, BCA is still developing a systemof two data centers to back each other up. The goal, if there is a problem in one data center, which will only back up and take over the task. Of course, the cost of developing a massive multiple data centers is relatively very large, called Hermawan, reaching U.S. $ 60 million.


Different from most other banks, BCA separates between data centers with disaster recovery center (DRC) it. DRC Systems has been owned by the BCA since 1989. Since 2002, the DRC system is located in Singapore and entrusted to IBM to manage it.

To build the architecture in accordance with the concept of 3-tiers, BCA IT team was formed and divided into three groups, which is integrated with each other despite different work functions. First is the Applications Group, whose main function to build or create application programs (software). For example, for the product stage, the Group who designed this application. Starting from making program for the account number; inquiry balances; calculation lottery; interest; administrative costs; to program printing on passbooks. Given so many types of applications, then this group is further divided into three subgroups. The first application is more focused subgroups working on funding applications for products, such as Stages, Tapres, demand deposits and time deposits. Both concentrate on developing applications subgroups credit applications, ranging from retail credit, corporate, or credit card


While the three subgroups Application specific duty to prepare the application in accordance with the BCA's internal needs such as inventory and human resources applications. Arguably Applications Group is a large group because the amplified about 100 people on staff.

The second group is the Group System, Network and Operations (SNO). This group consists of about 60 people

SNO groups that determine such things as back-end it will use what machine, middleware her wear what system, what hardware is selected, and so on, Hermawan explained.

Operational staff in charge of running a program that has been created and defined the Group Application, such as calculating the interest component of administrative costs. In addition, the system monitors the operational teams in order to keep it running. If you experience problems, they should know and have contacts to whom, said Hermawan.


The staff of the main tasks of managing the network has a network system. Including, for example, determine the type of network suitable for a branch office. Usually, the determination of this network type depends on the volume of transactions and large branch office assets. For a system of branch networks generally use a large fiber optic network multiprotocol label switching (MPLS), and wireless wide area network (WAN). According Hermawan, the actual use of the system in different tissues was only done in the last 2-3 years. This is in line with the development of BCA, in terms of number of customers, the transaction branch, and so on. The VSAT network itself is still being used as a back up

The third group is in Team BCA IT Security Group. 20-member

group of people that determine: who has access to what; how password policy and antivirus; how that system is not dikerjai people (in-hack), and so on.


IActual division of the group (in the IT Team) is aimed so that they really focus. Each group has different duties and authority, but are all integrated with each other, Ã ¢ â, ¬ Â said Hermawan. Take for instance the launch Flazz card. If the Security Group considers a product is not yet secure despite Applications Group and the Group considers the SNO is okay then that product can not be launched.

Hermawan also explained, principally, BCA IT team responsible for developing, managing and maintaining IT-based business process through various banking application systems, data network system that connects all branches and ATM terminals, as well as the DRC. All systems were monitored and controlled from the IT Management Centre at the headquarters of the BCA,

BCA results achieved by developing a well-established IT infrastructure as it primarily is establishment of the largest ATM network in Indonesia with very diverse functions. BCA also can launch Internet banking services (some are reserved for corporate) which was then equipped with mobile banking.

Delivery facilities are not just there, but it also has been used by many customers, which means bring in fee-based income for banks. BCA Internet banking services, for example, managed to record the transaction volume of about 695 thousand times in September 2001. In February 2005, the number of users of Internet banking BCA has already reached more than 300 thousand people in total transactions last year reached 51 million times.


Meanwhile, mobile banking services BCA also responded enthusiastically. The proof, in just 11 days since its launch, the service is able to absorb 6873 customers to register themselves as users of mobile banking BCA. For these mobile banking services in February 2005 there were 185 per thousand users with 17 million times the transaction.

From these facilities, for the period September 2004 to September 2005, the BCA could boost fee-based income amounted to 31.70%, namely from Rp 1.22 trillion at the end of September 2004 to Rp 1.60 trillion at the end of September 2005.

n addition to generating fee-based income, the use of IT in the BCA also realize cost efficiencies. When all the BCA network connected online and enables real time data transfer, according to Hermawan, communication costs can be cut 50% -60%. Not to mention the overtime cost savings, lease the building, to the infrastructure.

Mentioned Hermawan, BCA currently has approximately 7 million customers in 800 branches, with 3800 ATMs, and 50 thousand units of terminal Electronic Data Capturer.


The greatness of the BCA IT systems is recognized IT analysts Adrianto Gani. According to Adri, BCA as a consumer bank seems to be very aware of the importance of delivery channel when other banks prefer to invest to build the core system. BCA judged jelly delivery channel his position as a business enabler.

With the number of IT staff who are relatively plentiful, according to Adri, shows the seriousness of the BCA managing its IT systems. In fact, other banks are now more ways to choose outsourcing (outsourcing). With the independence of its IT team, it is not amazed BCA can be more agile and more incubate new products. BCA delivery channel is the most amazing, so that customers can trade more easily, said Adri praise.

Even so, Hermawan did not dare to claim that the BCA's most advanced IT systems than other banks. Moreover, he cautioned, the BCA and the role of IT functions more as a business support unit. For example, if a team has a business plan must attain the number of ATMs around 7 thousand in the next 2-3 years, then the task is how to SNO Group systems and networks that can accommodate the transactions generated by 7 thousand ATMs.

With solid organizational and IT infrastructure BCA, most people do judge that the bank's operating system is already so advanced. After all, Hermawan honestly deny it. People look as if IT systems are very sophisticated in this BCA. When in fact normal. Other banks could also do it, he said modestly. We only IT is positioned adjacent to the business and to sustain the business, it's useless because IT had a great if you can not sustain the business, he added. This is not a matter of sophisticated or not, but the question is appropriate. This is where foresight BCA, Adri's comments


In addition to its IT architecture has been established, further Hermawan, the success of BCA presenting products / new services quickly because there has been a target and a clear direction forward. As a result, IT systems can also be prepared from scratchIf the bank was about to launch a product / new service, the IT team to provide IT systems that support, which has been prepared for the long term.

The seriousness of the BCA in empowering IT management is also reflected from routine IT spending budgets, which bujetnya about U.S. $ 40 million per year, either for operational expenditure (OPEX) and capital expenditure (capex).

This year, the budget is used among others for the standardization of 20 thousand units of PCs using the Windows operating system.

Hermawan who came BCA architectural overhaul since the beginning said that, during its business direction is clear, then the IT support will always follow. He predicts in the next 3-4 years there will not change significantly. That is, for the period that the BCA will not replace core banking system or the ATM system. BCA's focus now is to seek to improve services to customers. For example, by boosting the level of availability. BCA management guidance from the obvious, which is leading to consumer banking, so we must maintain the best possible delivery channel, said Hermawan.