BNP Paribas: profitable convergence of two information systems

IBM Global Services
BNP Paribas: profitable convergence of
two information systems
The synergies announced by BNP
Paribas for the merged entity are now
in place and ahead of the planned
schedule. As of 2002, the leading
banking group in the euro zone
achieved the 250 million euros of
annual savings expected from the
merging of its information systems.
“…IBM consultants
are experienced and
neutral, and were,
and indeed still are,
essential partners.”
Overview
 The challenge
 The Benefits
– Hervé Gouëzel, BNP Paribas Group
Information Systems director.
Manage the successful
250 million euros saved per annum
convergence of its information
as of the third year of the merger,
IBM Global Services was selected to
systems to support group strategic
thanks to the synergies between
undertake this major scale operation
direction and to achieve significant
the two information systems; profits
as part of the Due Diligence phase
financial synergies rapidly
which now position the group at the
of the project, in advance of the link
head of euro zone banks
up of the two banks in September
 The solution
Merging of logistics and
IT resources
 IBM Services
1999. To speed up the integration of
IT consulting (analysis of existing
the two IT groups, IBM mobilised all
systems and possible synergies,
the consulting and implementation
definition of target systems and the
expertise needed. The analysis,
transition plan, management of the
method, organisation and management
change, project management) and
of the change and the focus on the
assistance with convergence project
marriage of cultures were all crucial to
implementation
the success of the project.
A project managed from end-to-end
To complete the merger of the
on Windows NT**. We had to make a
“Efficient, pragmatic, agreeable and
information systems successfully while
choice. The method recommended
positive.” These four adjectives sum
enabling the bank to continue its day-
by IBM Global Services and
up what Hervé Gouëzel, BNP Paribas
to-day activities, IBM formed a team
its experience in mergers and
Group Information Systems director,
of some sixty people grouping five
acquisitions enabled us to take
thinks of the IBM Global Services
types of complementary expertise:
advantage of solutions to advance
consultants who accompanied his
project management, convergence
quickly while taking into account the
teams during the vast operation to
of application suites, integration of
human and organisational aspects”
merge the bank’s logistics and IT
infrastructure and technologies,
notes the Group Information Systems
resources. “A merger-acquisition is
analysis and monitoring of synergies,
director.
not easy. The different cultures, the
accompanying the change. These
personal challenges and the need to
consultants, or ‘facilitators’, assisted
continue running the daily IT operation
the hundred or so mixed working
while building a new coherent
groups – comprised of both BNP and
information system make the task that
Paribas IT staff and end-users set up
much more difficult! You must have
to make the decisions which, in 2002,
help. IBM consultants are experienced
resulted in a single information system.
and neutral, and were, and indeed still
“Each time we made the best choice,
are, essential partners” adds Hervé
always being guided by our concern
Gouëzel.
for coherence” says Hervé Gouëzel.
IBM Global Services handled project
A very rigorous working method
continuity from end-to-end. Four
180 existing applications were
phases were clearly defined:
retained and a global target
infrastructure was defined for the BNP
•
•
•
•
Evaluation and analysis of
existing organisations and
systems with identification of
possible synergies
Definition of the target model and
implementation plan
Implementation of the new
information system and
management of the change
Ongoing improvements to
continue the dynamics and
build on the intellectual capital
resulting from the merger.
Paribas group. The initial inventory
“The method
recommended by IBM
Global Services and its
experience in mergers
and acquisitions
enabled us to advance
quickly while taking
into account the human
and organisational
aspects”
– Hervé Gouëzel, BNP Paribas Group
Information Systems director.
had revealed two global networks,
6,000 heterogeneous servers to be
The IBM Global Services approach
interconnected, incompatible LANs,
followed the pace imposed by
different operating systems, 80,000
Michel Pébereau, President of the
workstations, and so on. “To process
new banking group: “Six days, six
the same market operation, one bank
weeks, six months”. This involved
was using a given application running
setting specific deadlines with an
on UNIX and the other bank was
obligation to provide results at each
using another application running
deadline. For the merging of the
**
information systems, a key element
in the overall success of the project
was an extremely rigorous method
BNP Paribas
which enabled the working groups
•
to work in line with the schedule.
The method also allowed them to
speed up the implementation of cost
reduction actions. Fourteen modules,
especially suited to the target project
•
•
•
Leading banking group in the
euro zone based on profits
Net profits 2000: 4.12 bn euros
Present in 87 countries
Staff: 80,000 people with 61,000
in Europe.
selection phase and migration plan
definition, formed the road map for
For more information
some thousand people involved
To learn more about IBM Global
in the project. From consultation
Services contact your IBM sales
to conflict solving, from summary
representative or visit:
documents to reporting, from help in
formulating requirements to actual
decision making, the new information
system was built step by step. It is
an example of a successful merger:
for its first full year of operation, BNP
Paribas achieved one of the best
performances of any player in the
French economy and become, the
following year, the leading bank in the
euro zone.
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*
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**
Windows NT is a trademark of Microsoft
Corporation in the United States, other
countries, or both.
**
UNIX is a registered trademark of The Open
Group in the United States, other countries,
or both.
Other company, product and service names
may be trademarks, or service marks of others.
References in this publication to IBM products,
programs or services do not imply that IBM
intends to make these available in all countries
in which IBM operates. Any reference to an IBM
product, program or service is not intended
to imply that only IBM’s product, program
or service may be used. Any functionally
equivalent product, program or service may
be used instead.
This case study illustrates how one IBM
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ITCUK01014-3 (01/03) AP