FastTrack IT Integration for Sallie Mae Merger Final 1
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Transcript of FastTrack IT Integration for Sallie Mae Merger Final 1
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Fast Track IT Integration for theSallie Mae Merger
July 2015
Presentation Document
Idot SuriadiFernando SalomoDhoni !ahadiSyl"ia #artika
MM $%M &'ecuti"e ( 2) *
*ase Study
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Contents
+ Case summary
+ Main issue+ Pro,lem Statement+-nalysis of solution alternati"es+ !ecommendation
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Case Summary
.Founded in 1/2 in !eston-
. For rofit go"ernment sonsored
. Focused on secondary market
. 350 ,illion ortfolio in 2000
. Founded in 1/40 inIndianaolis
. on rofit comany
. 314 ,illion ortfolio in 2000
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Case Summary
. 6igh *I7 turno"er
. 7utsourced Strategic-lications
.Shrinking IT 8orkforce
20 years tenure of *I7%reg *lancy
Successful internal
systems 8ith lo8oerating costs
%ro8ing IT 8orkforce
Different Works Environment
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Case Summary
%oals and Strategy ac9uisition $S- grou ,y Sallie Mae
Goals :
. Sustaina,le dou,le digit gro8th
. &'and role in industry :direct lending;
. !ationaliAing transitioning or retiring IT systems :500
different technologies ,et8een 2 comanies
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Contents
+ Main Issue
+ *ase Summary
+ Pro,lem Statement+-nalysis of solution alternati"es+ !ecommendation
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1B IT 7rganiAation Ser"ices :e'ternal used; alications and Internal used alications
should ,e defined soon to meet cost reduction target and dou,le digit gro8thC singleteam leader single ser"ices alication single internal used alication should ,e
chosen
2B Single Data *enter location should ,e define and D*! management should take
laceC
B Peole issueC 8hen single alications alied transfer kno8ledge should take lace
8hile they kno8 their Eo, 8ill no longer a"aila,le after the rocess is doneB
The consequences of Sallie Mae Merger Proect M-I ISS$&
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The consequences of Sallie Mae Merger Proect
S7$!*&
M-I ISS$&
IT System:
The loan rocessing system and ,ack office system should ,e united and integrated tomeet the eak loan rocessing season target on June 1 stof each year B
There should ,e a team leader for IT integration roEect
Data *enter location should ,e define and D*! management should take laceC
The decision on e"ery acti"ities should ,e made 8ith lo8 cost oerating on time and in>,udget 8ell recei"ed ,y stockholders
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"
The consequences of Sallie Mae Merger Proect
S7$!*&
M-I ISS$&
#usiness Pers$ective:
Sallie Mae ac9uired its maEorcometitor $S- %rou on July 12000 for $SD 0 million
*omany sought to attain dou,le>digitgro8th in its ,usiness as a result of themergerB
Peo$le issue:
8hen single alications aliedtransfer kno8ledge should take lace8hile they kno8 their Eo, 8ill nolonger a"aila,le after the rocess isdoneB
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Contents
+ *ase summary
+Main issue
+ Pro%lem Statement+-nalysis of solution alternati"es+ !ecommendation
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&e' Sallie Mae IT ($$lication Shoul) %e *ea)y in +ast Track
S7$!*&
Single alication in single data center 8ith minimum risk P!7(digit gro8th in its ,usiness as a result of the mergerC make the
ser"ice alication ready for use in user friendly :non e'erienced eole; manner ,uthas the full functionality ,efore June 2001 to con"ert 350 ,illion target loans into
realityB IT 7rganiAationC should maintain $S- %rou=s team or Sallie Mae=s TeamG
2B Single Data *enter location should ,e in !eston :Sallie Mae=s; or in Indianaolis :$S-%rou=s;
B Peole issueC ho8 to adEust from not>for>rofit culture :$S- %rou=s; to a result>dri"en
for>rofit culture ho8 to encourage some key erson of IT team to stay until the
merger 8as comlete
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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternatives
H Peole Management
+ &'ecuti"e Summary
Contents
H *hoosing Data *enter
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Different #ackgroun) Com$anies are Merge)
S7$!*&
!edundancies should ,e reduced ne8 target should ,e alied --
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Different #ackgroun) Com$anies are Merge)
S7$!*&
!edundancies should ,e reduced ne8 target should ,e alied --
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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternativesH Different (ackground should
,e $nited
H Peole Management
+ &'ecuti"e Summary
Contents
H The #est IT System ?
@rgani>ation shoul) %e ChosenH *hoosing Data *enter
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Choosing the %est IT systems
S7$!*&
--
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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternativesH Different (ackground should
,e $nited
H The (est IT System
7rganiAation should ,e *hosen
H Peole Management
+ &'ecuti"e Summary
Contents
H Choosing Data Center 4ocation
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Data Center 4ocation
S7$!*&
Merged comany need only single location data center --center facility in !eston could ,e leasedout an attracti"e rice
Decision Indianaolis 8as clear cost sa"er
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+ *ase summary+ Main issue+ Pro,lem Statement+ (nalysis of solution alternativesH Different (ackground should
,e $nited
H The (est IT System
7rganiAation should ,e *hosenH *hoosing Data *enter
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Peo$le Management
S7$!*&
--
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Contents
8.
+ *ase summary+ Main issue+ Pro,lem Statement+-nalysis of solution alternati"es+ EBecutive Summary
S f l I t ti f & S lli M
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Successful Integration of &e' Sallie Mae
S7$!*&
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L
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