Key Challenges in RBC Royal Bank Service Platform Implementation
School
Sheridan College**We aren't endorsed by this school
Course
BUSM FINANCIAL
Subject
Information Systems
Date
Dec 10, 2024
Pages
9
Uploaded by ChancellorElkPerson1228
Based on the RBC Royal Bank case study, here are 6 key issuesthat Kathy Cooper and her team faced regarding the ServicePlatform implementation:1. Hardware and software installation timing- Whether to install new hardware and software simultaneouslyor sequentially- Pros and cons of each approach:• Simultaneous: Single period of disruption, faster realization ofbenefits• Sequential: Limits amount of change at once, allows CSRs toadapt gradually- Key metrics: Implementation timeline, CSR adoption rates,cost savings realization2. Geographic rollout strategy - Whether to implement across all regions simultaneously orphase by region- Tension between equitable treatment of regions andmaximizing early benefits- Pros and cons:• Simultaneous: Equitable, consistent with past practice• Phased: Faster realization of benefits in high-volume areas- Key metrics: Regional transaction volumes, cost savings byregion, employee satisfaction3. Project scope management- Numerous requests to add additional components to the projectscope- Specific requests: CIT upgrades, bandwidth upgrades, networkconversions, cash dispenser replacements- Challenge of balancing additional benefits vs. increasedcomplexity/timeline- Key metrics: Project costs, timeline adherence, scope changerequests processed4. Implementation resourcing approach- Whether to use internal implementation officers or outsource- Tradeoffs between internal knowledge and external expertise- Aggressive 12-month timeline adds pressure- Key metrics: Implementation costs, timeline adherence, quality
of implementation5. Training approach for CSRs- How to effectively train 10,000 CSRs across 1,100 branches- Options include classroom training vs. online self-pacedlearning- Challenges: Minimizing operational disruption, high turnoverrates, part-time staff- Key metrics: Training completion rates, CSR proficiencyscores, operational disruption6. Change management for CSRs and customers- Ensuring acceptance of major workflow changes by CSRs- Managing customer expectations and adoption of paperlesstransactions- Overcoming potential resistance based on past failed OS/2implementation- Key metrics: CSR satisfaction scores, customer satisfaction,transaction error ratesBased on the RBC Royal Bank case study, here are detailedalternatives for each of the key issues identified:1. Hardware and software installation timing:Alternative 1: Simultaneous hardware and software installation- Install new hardware and software together in a singleimplementation- Pros: Single period of disruption, faster realization of benefits- Cons: More complex change for CSRs to adapt to at onceAlternative 2: Sequential hardware then software installation - Install new hardware first, then software several months later- Pros: Allows CSRs to adapt to hardware changes beforesoftware, less change at once- Cons: Requires DOS-compatible hardware, delays full benefitrealization2. Geographic rollout strategy:Alternative 1: Simultaneous nationwide implementation- Roll out to all regions/branches at the same time- Pros: Equitable treatment of regions, consistent with pastpractice- Cons: More complex to coordinate, slower realization of
benefits in high-volume areasAlternative 2: Phased rollout starting with largest/busiestbranches- Start with largest branches in busiest regions, then expand- Pros: Faster realization of financial benefits, focuses resources- Cons: Violates norms of equitable treatment, potential regionaldissatisfaction3. Project scope management:Alternative 1: Strictly limit scope to original plan- Reject additional scope requests to stay focused on coreobjectives- Pros: Maintains timeline and budget, reduces complexity- Cons: Misses potential synergies, may require separate projectslaterAlternative 2: Selectively incorporate high-value additions- Evaluate and potentially include some additional scope items- Pros: Captures synergies, addresses other organizational needs- Cons: Increases project complexity, risk of timeline/budgetoverruns4. Implementation resourcing approach:Alternative 1: Use internal implementation officers- Hire/reassign RBC staff for 12-24 month implementation roles- Pros: Leverages internal knowledge, maintains control- Cons: Staffing/HR challenges, potential severance costsAlternative 2: Outsource implementation- Contract external firm to handle implementation- Pros: Specialized expertise, flexible resourcing- Cons: Less internal knowledge, potential cultural mismatch5. Training approach for CSRs:Alternative 1: Classroom-based training- Conduct in-person group training sessions for CSRs- Pros: Interactive, allows for Q&A, builds camaraderie- Cons: Logistically complex, pulls CSRs from branchesAlternative 2: Online/self-paced training modules- Develop e-learning materials for CSRs to complete
individually- Pros: Flexible timing, consistent content delivery- Cons: Less interactive, harder to ensurecompletion/comprehension6. Change management for CSRs and customers:Alternative 1: Gradual transition with extensive communication- Slowly introduce changes with heavy emphasis oncommunication- Pros: Reduces resistance, allows time for adaptation- Cons: Slower realization of benefits, prolongs transition periodAlternative 2: Rapid changeover with intensive support- Quick transition to new system with robust support resources- Pros: Faster benefit realization, clear cutover point- Cons: Higher risk of resistance/issues, more disruptiveThese alternatives provide options for addressing each of thekey implementation decisions facing Kathy Cooper and herteam. The optimal choice for each would depend on RBC'spriorities, resources, and risk tolerance.Here’s a detailed analysis of the alternatives for switching to anintegrated platform such as Windows for RBC Royal Bank’sService Platform project:### Alternatives for Switching to an Integrated Platform1. **Implementing a New Integrated Platform (Windows-BasedSystem)**- **Description**: Transitioning from the existing DOS-basedCSR Workbench to a modern, integrated Windows-based systemthat supports multiple applications and functionalities in a singleinterface.- **Pros**:- **Enhanced User Experience**: A graphical user interface(GUI) would allow CSRs to navigate more intuitively,improving transaction speed and accuracy.- **Increased Efficiency**: Integration of variousapplications (e.g., CSR Financial, RFX) would streamlineprocesses, reducing the need for multiple logins and enhancingcustomer service capabilities.
- **Future-Proofing**: A Windows-based system would bemore adaptable to future technological advancements andupdates, ensuring long-term viability.- **Cons**:- **High Initial Costs**: The upfront investment for newhardware, software development, and training could besignificant, estimated at around $50 million.- **Resistance to Change**: CSRs accustomed to the DOSenvironment may resist transitioning to a new system, impactingmorale and productivity during the changeover.- **Implementation Risks**: The complexity of integratingvarious systems could lead to delays or unforeseen issues duringdeployment.- **Key Metrics**:- User adoption rates- Transaction processing times- Customer satisfaction scores post-implementation- Cost savings from reduced processing times2. **Upgrading Existing Systems Incrementally**- **Description**: Instead of a complete overhaul, thisalternative involves gradually upgrading the existing DOS-basedsystems to improve functionality while maintaining some legacycomponents.- **Pros**:- **Lower Initial Investment**: Incremental upgrades mayrequire less capital than a full system replacement, allowing forphased spending.- **Reduced Disruption**: By upgrading in stages, CSRs canadapt gradually without the shock of a complete system change.- **Maintained Familiarity**: CSRs may find it easier totransition if they are still working within a familiar environment.- **Cons**:- **Limited Functionality**: Incremental upgrades may notfully address the integration issues or modernize processessufficiently to meet current banking demands.- **Potential for Increased Complexity**: Maintaining bothold and new systems could complicate operations and trainingefforts.- **Short-Term Solution**: This approach may merely delay
the inevitable need for a comprehensive upgrade in the future.- **Key Metrics**:- Cost of incremental upgrades versus projected savings- Time taken for CSRs to adapt to new features- Frequency of operational issues arising from mixed systems3. **Outsourcing Development to Third-Party Vendors**- **Description**: Contracting external vendors specializing inintegrated banking solutions to develop and implement the newsystem.- **Pros**:- **Access to Expertise**: Third-party vendors often havespecialized knowledge and experience in implementing similarsystems successfully.- **Faster Development Timeframe**: With dedicatedresources, external teams may accelerate the developmentprocess compared to internal teams juggling multiple priorities.- **Cost Predictability**: Fixed-price contracts can helpmanage budget expectations more effectively.- **Cons**:- **Loss of Control**: Outsourcing can lead to challenges incommunication and alignment with RBC’s specific needs andculture.- **Integration Challenges**: External solutions may notintegrate seamlessly with existing RBC systems withoutadditional customization efforts.- **Dependency on Vendor Performance**: Delays or issuesfrom the vendor could impact overall project timelines andsuccess.- **Key Metrics**:- Adherence to project timelines- Quality of deliverables as per contract specifications- Post-implementation support effectiveness4. **Phased Rollout of New System by Region**- **Description**: Implementing the new integrated platformin phases across different geographic regions rather than all atonce.
- **Pros**:- **Manageable Change Process**: A phased approachallows for adjustments based on feedback from initial rolloutsbefore full implementation.- **Focused Resources on Key Areas First**: Starting withhigh-volume branches can maximize early benefits anddemonstrate success quickly.- **Opportunity for Training Adjustments**: Feedback fromearlier phases can inform training programs for subsequentrollouts.- **Cons**:- **Potential Regional Disparities in Service Levels**: Someregions may feel neglected if they do not receive the new systemsimultaneously with others.- **Complex Coordination Efforts Required**: Managingmultiple rollouts requires careful planning and resourceallocation, which could strain operational capacity.- **Delayed Realization of Full Benefits**: The overallbenefits of the new system will take longer to materializecompared to simultaneous implementation.- **Key Metrics**:- Time taken for each phase compared to projected timelines- Customer satisfaction scores by region post-implementation- Cost savings realized during phased implementation5. **Hybrid Approach Combining New System with LegacySupport**- **Description**: Implementing a new integrated platformwhile maintaining some legacy support systems temporarilyuntil full transition is achieved.- **Pros**:- **Flexibility During Transition Period**: Allows CSRs togradually adapt while still having access to familiar tools as theylearn the new system.- **Mitigates Risk of Total System Failure DuringTransition**: If issues arise with the new system, legacy supportcan provide a backup option for critical operations.- **Cons**:- **Increased Complexity in Operations Management**:Managing two systems simultaneously can complicate processes
and create confusion among staff.- **Potentially Higher Long-Term Costs**: Maintaininglegacy systems alongside new ones can lead to increasedoperational costs over time.- **Key Metrics**:- Operational efficiency during transition periods- Employee feedback on usability of both systems- Overall costs associated with maintaining dual systemsHere's a brief analysis of the key alternatives presented in theRBC Royal Bank case:1. Hardware and software installation timing:Alternative 1: Simultaneous installation- Pros: Single period of disruption, faster realization of benefits- Cons: More complex change for CSRs to adapt to at onceAlternative 2: Sequential installation (hardware first, thensoftware) - Pros: Allows gradual adaptation, builds momentum- Cons: Delays full benefit realization, requires DOS-compatiblehardware2. Geographic rollout strategy:Alternative 1: Simultaneous nationwide implementation- Pros: Equitable treatment of regions, consistent with pastpractice- Cons: Slower realization of financial benefits in high-volumeareasAlternative 2: Phased rollout starting with largest branches- Pros: Faster realization of financial benefits, focuses resources- Cons: Violates norms of equitable treatment, potential regionaldissatisfaction3. Project scope additions:For each potential addition (CIT upgrades, bandwidth upgrades,network conversions, cash dispenser replacements):- Pros: Addresses additional needs, leverages currentimplementation effort- Cons: Increases project complexity, cost, and timeline risks
4. Implementation resourcing:Alternative 1: Internal implementation officers- Pros: Familiar with RBC processes and culture- Cons: Staffing/HR challenges, potential severance costsAlternative 2: Outsource implementation- Pros: Potentially more cost-effective, flexible resourcing- Cons: Less internal knowledge, potential cultural mismatch5. Training approach:Alternative 1: Classroom-based training- Pros: Interactive, allows for Q&A, builds camaraderie- Cons: Logistically complex, pulls CSRs from branchesAlternative 2: Online/self-paced training- Pros: Flexible timing, consistent content delivery- Cons: Less interactive, harder to ensurecompletion/comprehensionThe optimal choice for each alternative depends on RBC'spriorities, resources, and risk tolerance. Key considerationsinclude speed of benefit realization, minimizing disruption,ensuring effective change management, and maintaining projecttimeline and budget.