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Briefing Report on XYZ Financial(Deciding whether or not to hire a CIO

)Submitted by:Olaolu OgungbemileRicha MalhotraAhmet TozmanMasato TakaoGorav SharmaAnna Chernestrova This report is submitted for the courseNetwork Enterprise MBA 501, Spring 2009Instructor: Barbara ThomasFebruary 20, 2009

Company Description

XYZ Financial Services Company originated in 1962 as a small family-based financialservice company in Victoria, British Columbia. Through various acquisitions over theyears, XYZ has evolved into a nationwide financial services company, offering retailand commercial banking, insurance and mortgage. Currently, XYZ Financial employs35,000 people and generates annual revenues of 1.5 Billion dollars. The Bank isknown for its superior level of customer service and consistent focus on providingservices with dedication to help businesses grow in Canada. The company is aiming to meet current market needs by using the latestInformation Systems tools to enhance the customer experience. XYZ has recentlyacquired Colombia online brokerage firm, which will allow the organisation toprovide up to date information online regarding the clients’ investment portfolio,current market trends and future forecasts. Technology will become a moreimportant part of the company’s operations as the bank’s present ERP system willbe integrated with the new online services. There will have to be an integration of systems across all levels and all branches throughout the country.

Introduction

After 20 years of outstanding service, the leader of the IS department at XYZFinancial Services Company is retiring. As a result, there is an urgent need to find asuitable candidate to fill the position. The position can be filled in one of two ways;XYZ could hire a CIO who will be a member of the board, or they can hire adepartment head who will report directly to a designated member of the board.Having the right person hired into the right position will be essential as the corebusiness of XYZ is currently undergoing some changes as a result of a significantexpansion. It will be imperative that XYZ hire an individual with a deeperunderstanding of XYZ’s business structure and the current business environmentwithin the financial industry. This individual must be a good fit for the team andpossess key skills and abilities which will be highlighted in the next section of thebriefing paper.Currently, within XYZ Financial Services, there are some internal issues at manydifferent levels. It is expected that the right candidate will play a significant role inthe resolution of some of the key business operational issues which XYZ now faces.

Issues

To ensure the continued success of XYZ Company, several key areas will have to befurther examined and improved where necessary. The rapid growth as well as thecurrent acquisition of an online stock brokerage company means that technologyhas become a more integral part of day to day business functioning. As a result,there are potential issues that must be resolved within several areas, especially inthe area of electronic security, customer service and the prioritization of projectswithin the various departments.In addition, the expansion of XYZ will require Senior Management to play an evenmore crucial role in developing and maintaining effective decision makingprocesses. Management will be responsible for providing the necessary tools andskills that are required to promote efficiency throughout all levels of the company.One step that will have to be taken by the management will be to get the input of employees at all levels of the company. Employee “buy-in” is essential to thesuccess of the implementation of any system as the employees are the front-lineusers.One final issue that has the potential to become a source of a competitiveadvantage will be the differentiation of the company’s products and services thatcan be accomplished through an innovative IT infrastructure. These above mentioned areas are those that XYZ is currently facing and will bedescribed individually in greater detail in the following section of the report.

Security

As the core business of XYZ becomes more dependent upon the use of an advancedInformation Technology system, the concerns about security become greater. It willbe a high priority for XYZ to secure their IT infrastructure, to implement processesand mechanisms that will safeguard the company’s corporate information and toestablish measures that will protect their client’s privacy and information. The switch to an Information Technology-based corporate system has become anintegral part of the functioning of XYZ Financial. Therefore, it is of utmostimportance to secure their IT infrastructure from internal and external threats; suchas unauthorized employee access and hackers. This is especially true in the area of their online brokerage service that allows clients to buy and sell stocks as well as to