ANZ achieves an ROI of AUD4.27 million through efficiency improvements

IBM Rational software helps enable greater collaboration and automation

Published on 24 Apr 2012

"Our costs are flat, even though our demand has increased by about 30 to 35 percent. We’re doing more with the same amount of resources." - Frank Fabian, head of testing environments, delivery services, ANZ technology, ANZ

Customer:
Australia and New Zealand Banking Group Limited (ANZ)

Industry:
Banking

Deployment country:
Australia

Solution:
DevOps

Overview

Australia and New Zealand Banking Group Limited (ANZ) was originally founded in 1835 as the Bank of Australasia. Today, the bank serves customers in 32 countries in Australia, New Zealand, the Middle East, Europe and America and throughout Asia and the Pacific. Headquartered in Melbourne, the company employs 48,000 people worldwide and provides a range of banking and financial products and services to around eight million customers.

Business need:
To reduce costs through greater efficiency and productivity, ANZ needed a set of tools to support a companywide program to improve management of its testing environment.

Solution:
ANZ chose a suite of IBM Rational software to enhance management of its testing environments by providing collaboration and automation capabilities.

Benefits:
The bank’s technology department gained the ability to assume an increased workload of 30 percent to 35 percent without adding resources.

Case Study

Australia and New Zealand Banking Group Limited (ANZ) was originally founded in 1835 as the Bank of Australasia. Today, the bank serves customers in 32 countries in Australia, New Zealand, the Middle East, Europe and America and throughout Asia and the Pacific. Headquartered in Melbourne, the company employs 48,000 people worldwide and provides a range of banking and financial products and services to around eight million customers.

Seeking to improve efficiency and reduce costs

Like many other organizations, ANZ faced pressure to reduce costs through greater efficiency and productivity. The company’s technology department, which primarily purchases enterprise applications and then establishes integrations between them and its other systems, saw a significant increase in demand for its services from within the company. Realizing that it couldn’t just continue adding more resources to keep up with the growing demand, the department sought to implement a set of processes and tools to improve automation and drive greater efficiency.

“When I took this role in 2009, there was a big push for technology to contribute to lowering costs for the bank,” says Frank Fabian, head of testing environments, delivery services, ANZ technology, ANZ. Fabian saw room for improvement in the company’s existing methods. For example, for every six weeks of testing, teams spent two weeks getting the appropriate environments set up. In addition, because the bank lacked a central asset repository, assets were scattered throughout the company on PCs or multiple LANs, which put ANZ at risk in the event that those assets were lost. Finally, the bank needed better traceability so it could demonstrate to various regulators, such as the Monetary Authority of Singapore, that it was adhering to the necessary processes and regulations.

ANZ launched a cohesive, companywide initiative to improve the management of its testing environments. The bank evaluated 26 technology solutions to use for the initiative. “We needed to find the tools that would support the processes to underpin our business going forward,” says Fabian. “The tools had to support our organization geographically because we have delivery centers around the globe. The tools also had to support our processes and allow us some control over these processes.”

Establishing greater traceability and automation

ANZ chose a suite of IBM® Rational® software to help improve its testing environment management. First, the bank uses IBM Rational Asset Manager software to manage deployable artifacts. The application serves as a central repository for the entire organization. In addition, it includes built-in processes to manage workflows and relationships between assets. Artifacts within the application are linked to a baseline in the source control system, providing traceability from the artifact back to the source.

ANZ also uses IBM Rational Build Forge® software to automate software deployment. The application allows the bank to kick off the automated deployment of artifacts from Rational Asset Manager software to nonproduction environments.

Finally, ANZ uses IBM Rational Team Concert™ software, which provides a source code management interface. The software can also enable ANZ to see what its teams are actually doing and whether they’re adhering to established practices. Additionally, the application helps enable managers to keep track of team member workloads using work item management, dashboarding and reporting capabilities.

When users deploy an environment using Rational Build Forge software, the application captures the console output, recording what occurred in the environment. When the deployment is complete, a record is sent back to the Rational Asset Manager software, linking it back in to the asset, giving traceability from the environment, back to the artifact, back to the source. Now, ANZ can demonstrate from the source code change through to the actual deployment that what it intended to deploy is what it actually deployed. Users must include release notes that document what’s included in each release, such as change request numbers and defect ID numbers, providing traceability to requirements and defects.

Creating increased agility through greater collaboration

Before the enterprise management initiative, collaboration was challenging. Teams had their own processes and used their own tools. Now, it’s easier for ANZ to share configuration management and deployment management resources across projects because all teams use consistent tools. Individuals can be assigned to different projects, helping enable the company to respond to changes much more quickly. “Using the Rational software makes us more agile. From a workforce management perspective, we are able to move our resources around a lot more effectively so we can respond to changing needs quickly,” says Ben McCoy, service optimization manager, ANZ technology, ANZ. Using standard tools across the company also helped reduce the time required to begin working on a new project from three months to four weeks. “Because we have standard tools and processes, we’re not reinventing the wheel every time,” says Fabian. “We’ve reduced our training time as well, because all of our teams are using the same tools.”

Reaping the benefits of automation

“Automation plays a key role in how quickly you can operate in a changing environment,” says McCoy. “The fact that we’re using Rational Build Forge software for our automation means that if we invest the effort up-front to put the right levels of automation in place, it pays off when we need to make changes. Execution is quicker so we can respond a lot better to program needs.” This level of automation enabled ANZ to reduce the number of people needed for each project. In the past, the bank would typically assign seven people to each project. Now, ANZ assigns just three to four. In about 15 minutes, teams can deploy components that used to take three days to deploy. Plus, if there’s an issue with a deployment, it’s a lot easier to figure out what went wrong.

Ultimately, the environment management improvements enabled the ANZ technology department to achieve an ROI of AUD4.27 million from cost savings and efficiency improvements within the first year. The bank expects to exceed its target of an AUD8.5 million ROI for the second year. And it achieved this savings while taking on an increasing amount of work. “Our costs are flat, even though our demand has increased by about 30 to 35 percent. We’re doing more with the same amount of resources,” says Fabian.

About the IBM DevOps approach
The DevOps approach is an enterprise capability for continuous software delivery that helps enable organizations to seize market opportunities, respond more rapidly to customer feedback, and balance speed, cost, quality and risk. By offering the right approach for incremental adoption, the IBM DevOps solution helps organizations deliver a differentiated and engaging customer experience, achieve quicker time to value and gain increased capacity to innovate. The DevOps solution uses an open-standards-based platform and a continuous feedback loop across the delivery process, and it’s designed to integrate into existing heterogeneous lifecycle environments to deliver value more quickly.

For more information

To learn more about the IBM DevOps approach, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/ibm/devops/us/en.

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Components

IBM products and services that were used in this case study.

Software:
Rational Team Concert, Rational Asset Manager, Rational Build Forge

Legal Information

© Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America April 2012 IBM, the IBM logo, ibm.com, Build Forge, Rational, and Rational Team Concert are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions.

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