Sberbank of the Russian Federation (Factory of development)

In Sberbank of Russia the unique project on industrial automation of IT applications under the name "Factory of Development" is complete. Its implementation should allow bank by the end of 2012 to increase performance of development of internal IT applications by 30%, to lower a defect level at implementation of automated systems by 30% and to accelerate release on the market of new banking products. Historically about 40% of requests for completion needed processing owing to a lack of resources, the insufficient level of testing and formalization of requirements. It resulted in need of introduction of considerable corrections at stages of acceptance and at software implementation. The management of the IT block of Sberbank of Russia suggested to pass to an industrial application development platform. Factory of development was created in a year. The managing director of the IT block of Sberbank of Russia Andrey Hlyzov tells about the most interesting and difficult tasks of the project.

Hlyzov Andrey, managing director of the IT block of Sberbank of Russia. Was born in 1960. Graduated from Moscow Institute of Physics and Technology, Military academy of chemical protection and Academy of National Economy under the Government of the Russian Federation. Worked in data center of aircraft factory, in the system of Armed Forces (data center, the scientific organizations, managerial structures). Since 1997 works in Sberbank of the Russian Federation. Hobbies are mountain skiing and power exercises.

"Banking technologies": Andrey Grigoryevich, what was the most interesting in this project personally for you?

Andrey Hlyzov: Two things for me personally were sign. The matter is that the similar project the bank tried to make many years ago and then the project, one may say, "broke against life". Therefore when I set the purposes before the project this time, I had serious doubts that it will turn out. And when eventually everything earned, I was to some extent surprised. Why? Because developers are people difficult and like to work in the industrial environment not really. And during implementation actually of the project the most surprising for me was the fact that on one of our systems which are most criticized by business the satisfaction of business divisions which were our customers increased many times.

To this system our business had serious claims therefore we decided to begin with it. Having carried out in it serious changes, having corrected a number of errors, having implemented certain tools, we received absolutely tremendous change of the relation of business to a system. This was really interesting.

"B.T.": Tell, please, in more detail about the project.

A. H.: Factory of development includes three key components. The first part is a certain methodology and technology of work of all participants of process - from business divisions to service of operation. The second is the correct resource ensuring production by analysts, developers, testers. The third part is tools from IBM company which support all lifecycle of creation of information systems.

Why there was a need for this project? The reason is simple - in automated systems of bank there was quite significant quantity of errors. When we analyzed the reasons of their emergence, it became obvious that key reasons two.

First, it is inefficient problem definition and weak study by its analysts, and secondly, it is insufficiently high level of testing because of bad resource capability. As a result by our calculations about 40% of working time of our developers were spent on alteration of already developed systems. Besides, the methodology of all work was separate and unstructured, there were not enough special tools which would allow to integrate all these links in a unified environment.

Actually for the choice of these tools we held a competition and stopped on products of IBM company. At that time time, - and I think, as today the situation changed a little, - it was the only set of products which functionally closed all our requirements in terms of support of integrity of all lifecycle of production of software. After the software tools IBM Rational were selected, we involved in cooperation of one of the most competent of this area as I consider, the partner - Aplana company.

The project team was created from employees of the bank, specialists of Aplana and IBM company, and we selected several automated systems - it were the systems of internal development of the class corebanking with which it was necessary to begin. Main objectives of the project were set - the quantity of errors should be reduced by 30% (by the way, at the moment this level is already taken - the quantity of errors is reduced almost by 40%), performance of developments is increased by 30%, the output speed of products and level of satisfaction of customers are most increased.

When we saw the first results on the selected systems, it became clear that we go in the right direction. Replication of technologies on other internal developments was open. Now all key systems of internal development work in technologies of Factory.

"B.T." as far as Factory is unique as the project for our market of banking technologies?

A. H.: The project is really unique. Before starting its development, I studied experience of both foreign banks, and the large software companies therefore I can tell with complete confidence that only in exceptional cases it is possible to meet the automated full closed loop of production, similar to what we create for ourselves. Only here complete lifecycle of automated systems - from beginning to end is implemented.

And it is basic feature of Sberbank. I think that if we did not make it, we would have huge problems. The scale of changes of bank now such is that it is impossible to work with not industrial methods simply.

"B.T.": Whether was difficulties with the solution IBM Rational, it is known that these products in the Russian banking market were implemented for the first time completely - in your bank?

A. H.: As for difficulties … Yes, we knew that the product (family of the products IBM Rational) which we selected has certain features and shortcomings as, by the way, and at any other product. We perfectly understood that a product new, and the project unique therefore in it there will be unforeseen difficulties. But as all project participants were initially focused on result, everything turned out. We from the very beginning realized its uniqueness therefore the spirit was on command, joint work.

"B.T.": What number of collective which is engaged actually in developments in bank now?

A. H.: About one thousand. Number of users of Factory it is much bigger, by the end of their this year there will be several thousands. And it will be not only employees of the bank, but also our main partners in banking systems.

"B.T." and how Factory of development will interact with recently created Sberbank-Tekhnologii company?

A. H.: "Factory" as I already spoke, is first of all resource providing, methodology and tools. These components are as in the bank, and inside Sberbank Technologies. From bank there are business customers who set tasks, from outside Sberbank Technologies is analysts who create functional requirements. Such approach allows to use effectively all resources which are both in bank, and in the company. It is about creation of unified technology environment.

If to speak about problems of 2012, we are going to attract additional resources within Factory 2.0 - and these are the different software companies which will be used for the solution of the general bank tasks. Now when testing, for example, we actively use outsourcing resources, and several companies already work with us. Thus, Factory 2.0 has more opportunities, than at any of the parties participating in it separately. Concerning Sberbank-Tekhnologii subsidiary company our bank has a clear strategy. We want that this company became the technology center for country financial institutions.

I think that from next year the company will take the first steps in the market in this direction. And I am sure that it will be able successfully to provide to any bank structure services in creation of systems and in our country, and abroad.

"B.T.": In January, 2012 divisions of Sberbank where Factory of development was implemented, received the certificate of CMMI for Development Level 2 (Capability Maturity Model Integration). For what purpose it was made?

A. H.: In March, 2007 processes of services of automation of Sberbank were certified on compliance to the International standard ISO/IEC 20000:1-2005, and I was in it directly involved. In 2010 we certified a project management system of Sberbank on IPMA Delta - it is the European standard of management. The third certification was on CMMI.

Initially such task did not face the project. But when I was convinced of success of Factory of development, the new task - to receive assessment on CMMI was set. From five possible levels we received the second which is called "Managed". Unfortunately, time frames did not allow us to receive the third level. This year, I am sure, we will receive it.

Now we have in development a plan for preparation for this transition. CMMI is some kind of quality label which says that in the organization processes are constructed correctly. For many foreign companies obtaining this certificate is the only way to become the supplier of program providing. Any certification, of course, pursues several aims.

First, it is an opportunity to define at what level the project or the company is now as it is estimated by the international organizations. Secondly, the level of certification sets a vector of further development of the project or the company. For example, now to us to receive the third level, it is necessary to develop more deeply already available processes and to add a number of others which are required for the normal industrial organization which is engaged in development.

"B.T.": Whether it is going to replicate technologies of Factory in regional branches of Sberbank?

A. H.: We already do it. A number of the companies with which we work are territorially distributed, and they already are in our unified technology environment. Besides, we have a Management of development of the Duet platform which is engaged in development of external systems. Its divisions are located in St. Petersburg, in Perm, in Yekaterinburg and several more cities. And when we speak about replication of Factory in territorial sense, we speak including about these divisions. At us subsidiary companies, for example, in Minsk began to appear. They will also work in Factories of Development technology.

"B.T.": What projects are in a priority of Factory now? What tasks face it?

A. H.: Due to start of Factory we are going to achieve decrease in number of defects according to the IBSO systems and H-Bank for 15% and to increase performance of systems too by 15% by the end of this year. The second serious problem - completion of a system "Branch Sberbank" on service of retail clients, is a part of the Salute platform. Still this system at us is not completely covered with technologies of Factory. To the middle of 2012 we are going to make it.

As a result we will receive a full-scale ready-made product of own development and, I hope, considerable result on decrease in a defect level in it. Now a system is installed in Moscow, then it will be replicated on eight territorial banks.

"B.T.": What as it seems to you, was the most difficult at implementation of Factory of development?

A. H.: Convince people who participate in development process that it profitable and is necessary for them. Regulations became tougher, it seemed to people that labor costs increase. But we managed to punch a mistrust dam, I suspect, partly belief, and partly - thanks to pilot projects, large-scale training, quick reaction of specialists of Aplana the arising technical issues. The serious involvement into this process of the management became very important factor also. The President of Sberbank German Gref is interested in the project, pays close attention to it the senior vice president Victor Orlovsky, a number of business divisions also very positively estimated it.

"B.T.": What do you consider strategically most important for this project at this stage?

A. H.: The first. I want that after input in commercial operation of automated systems of Sberbank no uniform defect was found. That decrease in defects was not 30%, but all 100%! The second. I very much would like that all our customers in bank were satisfied at least on the six on a seven-ball scale. And the third - that the satisfaction of developers, analysts, testers, i.e. those people who make products at which the bank works was on a se-mibalny scale at the level of seven. I want that people, creating and implementing information technologies, worked with pleasure.