Premium Essay

Providian Trust Case

In: Business and Management

Submitted By bapankundu
Words 986
Pages 4
HULT International Business School
Module C Information technology management
Professor: Jim Slusser

PROVIDIAN TRUST: TRADITION AND TECHNOLOGY (A)

Fenway Cohort

Kamanasish Kundu

1. Business Context/Key Business Drivers * In 1994, Providian Trust, the tenth largest provider of financial and fiduciary services, slowly slipped away from profitability and competition due to the lack of efficient business processes and information technology. * The company was headquartered in New York and had three divisions Pension and Institutional Trust Services (PITS), Personal Trust and Trust Operations with a network of 216 branches. * To address the problems that Providian Trust were facing, Michael LeBlanc, the Senior Vice President of Trust, Investment and Treasury, took the initiative to lead the project aimed at not only implementing new technology but also reengineering Providian Trust’s business processes by implementing a major software system, Access plus, developed by Select One. The project, supposed to last for 20 months, cost $18 million, was finally approved by board members in April, 1994. * The key driver behind the above initiative was intense client demand on the part of PITS division, lack of control and discipline in the trust division, lack of operation efficiency and outdated reporting system. 2. Initiative Objectives/Benefits * Decrease the cycle time and improve operation efficiency. As stated in the case, the clients often had to wait for 2 to 3 months to get a statement and finally due to late or inaccurate statements, Providian Trust had to waive or discount fees, which cost the company annually $2 million to $5 million. * Increase control and discipline in the trust division.…...

Similar Documents

Premium Essay

Technology Management

...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......

Words: 261 - Pages: 2

Premium Essay

Providian Trust

...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.......

Words: 1004 - Pages: 5

Premium Essay

Providian Trust Tradition and Technology

...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......

Words: 934 - Pages: 4

Premium Essay

Providian

...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......

Words: 9281 - Pages: 38

Premium Essay

Essays

...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......

Words: 6912 - Pages: 28

Premium Essay

Providian Trust

...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......

Words: 763 - Pages: 4

Premium Essay

Maine Medicare Mistakes

...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...

Words: 320 - Pages: 2

Premium Essay

Ipremier

...developing business. Qdata did provide basic floor space, power, connectivity, environmental control, and physical security, and offered some high-level management services such as monitoring of web sites for customers (at its Network Operations Center) and Internet security services such as firewall protection. However, new technologies were being utilized at many companies while Qdata did not take advantage of these new technologies. iPremier had been planning to outsource management of its “technical architecture services to a more suitable supplier, but had not done so because the company was focused on growth, minimizing costs and avoiding a service interruption to its customers.” iPremier had recently hired Bob Turley as CIO. As the case begins Mr. Turley is going to find out first hand the security issues of iPremier. Theme: On January 21, 2001, iPremier Web servers were brought to a stand still. A denial-of-service (DoS) attack had occurred. A DoS attack “is a flood of packets that consumes network resources and causes gridlock.” The gridlock in turn prevents users the capability of using online services, this is the origin of the term denial-of-service. A DoS attack may originate from one machine called DoS or it can be from numerous machines called (Distributed DOS(DDoS)). The group of machines that are involved in DDoS are called zombies and are distributed in a geographic manner. Loss of service can occur by a loss of a particular service or it can......

Words: 3910 - Pages: 16

Premium Essay

Ebay's Stragies

...environmentally safe manner. eBay is committed to the continuous improvement of its environmental practices by monitoring the environmental impact of all of its business activities and measuring the benefits of its environmental policies and procedures. 1 of 13 12/1/2013 1:29 AM Part I: eBay’s Strategic Process eBay’s Business Model Management believed that eBay’s business model had six specific elements that were key to the company’s success: A position as the largest online trading forum with a critical mass of buyers, and items listed for sale. A compelling and entertaining trading environment that featured strong values and established rules and procedures to facilitate communication and trade between buyers and sellers. Established trust and safety programs such as Safeharbor, which is a program that provides guidelines for trading, aid in resolving disputes, and a warning and suspension system for users who violated eBay’s rules. A cost-effective convenient trading system. A strong community affinity. A user interface that was easy to navigate, arranged by topics, and fully automated. eBay’s Strategy and Vision in 2002 Heading into 2002, eBay’s strategy revolved around on five key action initiatives: Broadening the existing trading platform within existing product categories, across new product categories, through geographic expansion, and through introduction of additional pricing formats. Fostering eBay community affinity by instilling a vibrant loyal......

Words: 6313 - Pages: 26

Premium Essay

Business Process Outsourcing

...without being burdened by the demands of bureaucratic restraints. Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses. The key lies in knowing which of the main value drivers to focus on – customer intimacy, product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a competitive edge. A third way in which BPO increases organizational flexibility is by increasing the speed of business processes. Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company. Finally, flexibility is seen as a stage in the organizational life cycle: A company can maintain growth goals while avoiding standard business bottlenecks. BPO therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation. A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, may become outdated or turn out to be a poor match for the company over time. Although the......

Words: 5948 - Pages: 24

Premium Essay

Bpo in India- an Overview

...and front office outsourcing which includes customer-related services such as marketing or tech support. Types of BPO: Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes. BPO that is contracted outside a company's own country is called offshore outsourcing. BPO that is contracted to a company's neighboring country is called nearshore outsourcing, and BPO that is contracted with the company's own county is called onshore outsourcing. Outsourcing is a trend that is becoming more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business. In some cases, the entire information management of a company is outsourced, including planning and business analysis as well as the installation, management, and servicing of the network and workstations. Key Services: The key sub-segments in the Indian ITES-BPO industry are: •Customer care: including database marketing, customer analytics, telesales/telemarketing, inbound call center, web sales and marketing, sales and marketing administration •Finance: including billing services, accounting transactions, tax consulting and compliance, risk management, financial reporting, financial analysis •Human Resources: including benefits administration, education and training, recruiting and staffing, payroll services, hiring administration,......

Words: 7967 - Pages: 32