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Start for freeThe Eternal Struggle Between IT and Business
Many organizations face ongoing conflicts between their IT and business departments. These two crucial areas often seem to be at odds, with each blaming the other when projects don't go as planned. But is there a way to bridge this divide and create harmony between IT and business teams?
UniCredit, a major European bank, has found an effective solution to this common problem. By implementing innovative strategies and organizational structures, they've managed to align their IT and business units to work seamlessly together. Let's explore how they've achieved this and what other companies can learn from their approach.
The UniCredit Recipe for Success
According to Victor and Carmen, two leaders at UniCredit, there are three key ingredients to their successful IT-business integration:
- The proper mindset throughout the organization
- Skilled people in the right roles
- A culture and environment that enables harmony between IT and business
The bank has implemented these principles through the use of cross-functional teams, also known as end-to-end teams, which operate in a fully agile mode. This approach has transformed how IT and business units interact and collaborate within UniCredit.
End-to-End Teams: Breaking Down Silos
The concept of end-to-end teams is central to UniCredit's strategy for aligning IT and business objectives. These teams bring together professionals from various backgrounds and specialties to focus on specific areas of development. The core team typically includes:
- Product owner
- Scrum master
- System and business analysts
- UX designer
- Internal and external resources (including vendor representatives)
By following agile methodologies, these teams work through regular sprints and rituals to deliver new features and improvements for customers. This approach offers several significant benefits:
- Concentrated expertise: Team members are fully dedicated to their specific area, allowing for deep focus and specialization.
- Reduced time to market: The collaborative nature of these teams dramatically speeds up development and deployment processes.
- Flexibility and adaptability: Teams can quickly adjust to changing requirements or market conditions.
Case Study: Mobile Banking Development
One of the first applications of this end-to-end team concept at UniCredit was for their mobile banking platform, Bubank Mobile. By adopting this new way of working, the bank can now release new versions of their mobile app at least once a month, and sometimes twice. This increased speed allows them to rapidly introduce new features to customers and stay competitive in the fast-paced digital banking landscape.
In some cases, the team can even deploy new features without requiring users to update the app through app stores, further streamlining the process of delivering improvements to customers.
Blink Instant Payments: A Real-World Example
To illustrate the effectiveness of their integrated IT-business approach, UniCredit shared the example of implementing Blink instant payments in Bulgaria. This initiative, introduced in 2022, significantly changed the payment landscape in the country.
The Challenge of Instant Payments
Before the introduction of Blink, interbank payments in Bulgaria were subject to several limitations:
- Transfers could only be processed between 8 AM and 8 PM on weekdays
- Each payment took approximately one hour to process
- In the past, standard interbank payments were processed only three times per day during working hours
The implementation of instant payments aimed to address these issues and provide customers with faster, more convenient money transfer options.
UniCredit's Rapid Implementation
Despite starting development later than some competitors, UniCredit was able to quickly implement Blink instant payments across their digital platforms. The project was completed in just six months, a testament to the efficiency of their end-to-end team approach.
Carmen explained that the rapid development was possible due to their agile working methods. Architects, system analysts, and developers worked side-by-side with business representatives, allowing for quick feedback and iterative improvements. The team also employed parallel testing and development streams to further accelerate the process.
Key Features of UniCredit's Blink Implementation
UniCredit's approach to implementing Blink instant payments showcases their commitment to customer experience and innovation:
- Default payment option: Blink was set as the default payment type in UniCredit's digital channels when applicable, eliminating the need for customers to manually select it.
- Competitive pricing: The bank priced instant payments the same as standard interbank transfers, making the service more accessible to customers.
- Automatic template updates: Existing saved payment templates were automatically updated to use Blink when possible, simplifying the transition for customers.
Results and Market Impact
The success of UniCredit's Blink implementation is evident in the usage statistics. As of the time of the presentation, UniCredit accounted for more than 50% of outgoing Blink instant payments in Bulgaria. This high adoption rate demonstrates the effectiveness of their customer-centric approach and the power of their integrated IT-business teams.
The Blurred Lines Between IT and Business
One of the most striking aspects of UniCredit's approach is how it has blurred the traditional boundaries between IT and business roles. This integration is so complete that it can be difficult to distinguish between IT and business professionals within the organization.
Victor and Carmen illustrated this point by playfully switching their introductions at the beginning of their presentation. This moment highlighted how closely aligned the two departments have become, with both sides sharing a deep understanding of both technical and business considerations.
Shared Priorities and Goals
The alignment between IT and business at UniCredit is further demonstrated by the shared priorities expressed by Victor and Carmen:
- Victor (Business): Emphasized the importance of service stability, proper monitoring, reusability of services, API standards, and lifecycle management.
- Carmen (IT): Focused on offering the best customer experience, leading to customer satisfaction.
This exchange shows how both sides have internalized the goals and concerns typically associated with the other department, creating a truly integrated approach to digital banking development.
The Power of Digital Channels
UniCredit's success in implementing new features like Blink instant payments is amplified by their strong presence in digital banking. The bank boasts impressive statistics that showcase the reach and impact of their digital offerings:
- Nearly 600,000 active mobile users on their Bubank Mobile app
- Over 1 million downloads of the mobile banking app on Google Play, making it the first banking app in Bulgaria to reach this milestone
These numbers not only demonstrate the bank's digital prowess but also highlight the importance of their integrated IT-business approach in delivering features that resonate with customers.
Lessons for Other Organizations
UniCredit's success in bridging the gap between IT and business offers valuable insights for other companies facing similar challenges:
- Create cross-functional teams: Bring together diverse skill sets to focus on specific areas of development.
- Embrace agile methodologies: Adopt flexible, iterative approaches to project management and development.
- Foster a unified culture: Encourage IT and business professionals to understand and appreciate each other's perspectives and priorities.
- Focus on customer experience: Align all efforts towards delivering value and satisfaction to end-users.
- Invest in digital channels: Recognize the growing importance of mobile and online platforms in reaching and serving customers.
The Future of IT-Business Integration
As UniCredit continues to evolve and innovate, they see their current success as just the beginning of their transformation journey. The bank is committed to maintaining its integrated approach and delivering excellent customer experiences through ongoing collaboration between IT and business teams.
For other organizations looking to improve their own IT-business relationships, UniCredit's example offers a roadmap for success. By fostering a culture of collaboration, aligning goals, and focusing on customer needs, companies can break down traditional silos and create more efficient, innovative teams.
Conclusion
The story of UniCredit's success in bridging the gap between IT and business demonstrates that with the right approach, what was once considered an eternal struggle can be transformed into a powerful partnership. By implementing cross-functional teams, embracing agile methodologies, and maintaining a laser focus on customer experience, UniCredit has positioned itself at the forefront of digital banking innovation.
As the financial industry continues to evolve and face new challenges, the ability to quickly develop and deploy new features will become increasingly crucial. UniCredit's integrated approach provides a model for how banks and other organizations can adapt to meet these challenges head-on.
Ultimately, the success of UniCredit's strategy is measured not just in internal efficiencies, but in the tangible benefits delivered to customers. With faster development cycles, more frequent updates, and innovative features like Blink instant payments, the bank is setting new standards for digital banking services.
For companies in any industry struggling with IT-business alignment, UniCredit's journey offers valuable lessons and inspiration. By breaking down traditional barriers and fostering a truly collaborative environment, organizations can unlock new levels of innovation, efficiency, and customer satisfaction.
As we look to the future of digital transformation across industries, the integration of IT and business functions will likely become not just a competitive advantage, but a necessity for survival and growth. Those who can successfully bridge this gap, like UniCredit has done, will be well-positioned to thrive in an increasingly digital world.
Article created from: https://www.youtube.com/watch?v=xfNbNcJKjNw&feature=youtu.be
