And no better crock of cunts to know all about wasting money.
Didn’t Flight Centre (Brisbane) try to sue Datalex (Dublin) last year over a similar issue? The case was ridiculous, there are quasi-legal documents to be signed at every stage of a software project and it’s unlikely AIB included any caveats in those.
I wonder if Oracle saw that coming
i was in the bank for interviews in august - I was told by someone in ‘credit risk’ that they used to have 300 contractors and now they have none and all the people are too junior to update their systems - glad I didnt get the contract as the agency which took on the work got thrown out for not being able to do the work
i also know someone who works in credit risk in anglo - not a great thing to have on the old cv i would think
In all fairness, who would know more about it?!?
I’m still trying to get my head around 84 million on a single system…
Maybe it was a rare austerity drive?
Doesn’t sound particularly excessive to me if it was their core retail banking system, if they had delivered the project. It depends how far they got before they canned it. I reckon this would include licensing costs, implementation team salaries / day rates & expenses, potentially even server/database and hardware too?
The news that AIB are suing Oracle for the failed implementation of their iFlex product has greater depth than would first appear.
AIB selected iFlex as their new banking solution for both commercial and retail banking. The commercial implementation programme was called Pentagon and it went reasonably well.
The retail implementation was called ACORN - the acronym was based on:
A AIB Group wide
C Common retail operating model
O Optimised processes & technology
R Robust platform for sustainable profit growth
N New capabilities-excellence for customers and staffand was a complete disaster.
According to the AIB propaganda:
ACORN is the name for the Enterprise Core Retail Banking Programme. The purpose of the ACORN Programme is to build a platform and support processes for growth – both organic & inorganic growth, through enhancing operational effectiveness and improving operational cost efficiency through enabling economies of scale. The enhanced operating model will ensure that AIB can respond to market and business demands effectively. It will position AIB strongly to drive and sustain future growth and to positively differentiate itself in the markets in which we choose to compete.
Why the ACORN Programme NOW ?
• As part of the expanded enterprise agenda within the organisation, AIB aims to implement a common operating model for retail banking operations across divisions / geographies. This will lead to the creation of common and shared services operational capability, and enable the migration from multiple legacy retail banking applications into a common enterprise-wide retail banking technology platform and will also help consolidate back-office operations to a smaller number of locations. The Operating Model for Retail incorporates Personal, Small Business, Commercial & Corporate Business customers i.e. all customers that have accounts managed through the Branch network.
• While our process and technology platforms have served us well over the past 30 years, it is recognised that they cannot support the planned level of growth envisaged for the future. Our customers’ needs are changing, their expectations are heightening, and the competitive landscape is intensifying with innovative products/services being brought to market on a more frequent and aggressive basis. AIB must be in a position to meet and exceed these challenges. The ACORN Programme is a key component of AIB’s response to compete and respond to these dynamic market changes going forward.
• Developing and implementing the new operating model will be a significant and complex change programme for AIB’s retail banking businesses across the different geographies. A core element of this programme will be the implementation of a new technology platform for retail banking operations. AIB has already concluded an extensive evaluation of business and technology solutions to support our future retail banking operations, which focused on the breadth of functionality needed to meet AIB’s business requirements
ACORN Programme Scope
• Development of a common Operating Model across all Retail operations of AIB Group
• Delivery of a robust customer friendly end to end business process
• Development and deployment of leading edge technology
• 360° Customer View
The scope of the programme covers Retail operations in the RoI and UK Divisions. The Operating Model for Retail incorporates Personal, Small Business, Commercial & Corporate Business customers i.e. all customers that have accounts managed through the Branch network.
[AIB selected iFlex under the the tenure of] Steven Meadows [as COO in AIB] who has since left - independent.ie/business/iris … 64027.html. His departure is the reason why the ACORN programme was finally cancelled.
Meadows worked in Citi group who developed the original product, spun it off to a separate company called iFlex that was then acquired by Oracle. For a brief history of iFlex, see en.wikipedia.org/wiki/Iflex.
There is loads of material on Meadows and AIB trumpeting this [snip] decision:
The business banking implementation runs on HP Itamium blade servers running Unix. Apparently this works well.
The ACORN implementation was supposed to run on IBM mainframes (z/Series) and use IBM’s DB2 as its underlying database
Interestingly BoI did the same thing by trying to replace their core banking system with a product called ALNOVA (fondly called ALNEVER by those involved) from Accenture. This was also cancelled after burning through tens of millions. It is only in use in the UK joint venture with the Post Office.
Core banking system implementation projects experience the highest failure rates of all IT projects - over 70%.
[AIB continued with the ACORN implementation until Meadows’ departure from AIB]
If I was on the team of lawyers for Oracle, I would admit some mistakes but state that the programme was obviously failing for several years. The only reason why AIB racked-up such huge costs was because of their absolute insistence on pursuing an unimplementable solution abd because Meadows did not want to lose face.
Look for discovery on the project documentation and the e-mail trail.
[mod edit: wags finger - thought I wouldn’t get to the end, eh?]