As global organizations migrate to a model where business processes, infrastructure and resources are standardized and reused across business units, their success will depend on recognizing the key factors that influence multi-country solution development, as well as industry best practices.
Multiple Country Implementation -- Influencing Factors and Approaches
1. • Cognizant 20-20 Insights
Multiple Country Implementation —
Influencing Factors and Approaches
Executive Summary a large extent, consolidate disparate software
and hardware resources across multiple BUs.
Micro- and macroeconomic global challenges have
The regional programs are often run by a single
forced large multinational companies to embrace
overarching team, commonly known as a “regional
a model where infrastructure and resources can
team.”
be standardized and reused across various busi-
ness units, in many cases spanning multiple coun- As large organizations migrate to a model where
tries. The goal: standardize processes and bring business processes, infrastructure and resources
efficiency to resource utilization. can be standardized and reused across various
BUs, they must also recognize a multitude of
This approach has had significant impact on the
factors that influence the foundational elements
way IT systems are conceptualized, developed
of this approach. Many of these factors are unlike
and maintained. In today’s large enterprises with
traditional green field projects and are normally
operations that span various countries or regions,
not seen in any single-country implementation.
companies need applications that singularly
address the needs of different business units This paper examines the key factors which
in various countries. Organizations adopt this influence a multi-country solution development
approach to control costs, standardize operations and implementation, along with the industry best
and practices, consolidate hardware and software practices and their key features.
and, last but not least, apply common governance
practices. Insurance is an industry where we Key Factors Influencing Process and
see many commonalities in the core business Systems Standardization
processes followed across various regions/ Most core implementations are large, challeng-
countries. As such, there is a high degree of ing transformation projects. In this section we
interest in maximizing the commonality and analyze the factors and approaches influencing
reusability of many IT applications among large the implementation of a standardized solution
multinational insurance companies. and group them in three broad directions.
Most global organizations are trying to achieve this • Development:
by migrating to new technologies or by developing > These factors influence the development
new applications or product implementations as a process of a regional application. There are
program for multiple business units (BUs) spread multiple ways the development of a region-
across countries or regions. This, they hope, will al application can be approached; choosing
help them achieve the aforementioned goals of the right one is the key to the success of
creating standard business processes and, to the program.
cognizant 20-20 insights | august 2011
2. • Implementation: facing with legacy sub-systems may also be
different. A standard data exchange format
> These factors influence the best way to
(mostly XML-based) should be decided upon
implement the software and maintain/
and shared with all BU teams well before the
enhance the system on a continuous basis,
interface development starts.
considering various country-specific require-
ments and keeping language in mind. 4. Reusability and extensibility in architec-
ture: The intent of a multi-country implemen-
• Budgeting:
tation is to achieve a high level of reusability
> These are the factors that influence the cre- and extensibility, in terms of both technology
ation of a win-win “financial model” for all building blocks and functional systems. To
country businesses and the regional unit. gain maximum reusability, a flexible applica-
tion architecture that enables various features
Development: Key Influencing Factors such as language compatibility, feature on/off,
These are factors which we must understand database call abstraction, etc. is a must. That
and react to before we conceptualize the is why the architecture of the core application
business application and begin development. is very important in order to ensure the extent
These factors are mainly of reusability across various BUs.
As country-specific related to requirement man- 5. Testing optimization: As the multi-country
customization is agement, architecture defi-
nition, development, gover-
implementation requires multiple rollouts in
performed on a nance, etc. various BUs in a short span of time, having
an optimized testing strategy plays a crucial
common codebase, 1. Governance: This is a key role. As country-specific customization is
regression testing factor, as different BUs performed on a common codebase, regression
becomes extremely may have different ways testing becomes extremely important. In many
of working and systems in cases, having an automated regression bed is
important. In many place. A model with rep- very useful to reduce implementation time as
cases, having resentation from both well as enable more effective testing.
an automated the regional as well as BU
In addition to the above, several other factors and
team is mandatory, along
regression bed is with transparent and well-
considerations are made during the development
very useful to reduce defined roles and respon-
phase. They include:
implementation time sibilities. Depending upon 6. Legal and regulatory differences: This
the approach adopted for typically arises out of differing and sometimes
as well as enable the multi-country develop- conflicting laws and financial practices across
more effective ment, governance may be various BUs. There may be a restriction on
testing. either regional-centric or hosting data outside the borders of a BU.
federated within the BUs. Cross-border payments across BUs may need
approval or may not be allowed at all.
2. Differing local business practices — require-
ment management: BUs may have different 7. Geographical and cultural differences: This
business practices to satisfy a particular includes support for local languages and
business need, hence it is of extreme local practices. The key requirement of global
importance that the regional team initiates implementations is the deployment of a core
and oversees the gathering of requirements regional team in different BUs. The collabora-
from all the BUs, either at once or in sequence tion among teams, and their timely presence,
depending upon the development approach is crucial for a successful implementation.
adopted. There should be a requirement
Along with these factors, choosing the right
control board comprised of senior business
execution model is equally important. This paper
analysts and architects who will make the final
presents the common industry practices or
call on which requirements can be classified as
models for multi-country implementation.
regional and which are BU-specific.
3. Integration with BU applications: Different Development: Approaches and Models
BUs may have differing legacy systems as The most important part of any multi-country
part of existing architecture landscapes. Inter- build and development program is the approach
cognizant 20-20 insights 2
3. taken to define the solution architecture and the > Individual business unit applications are
way it is shared across BUs. These can be of the tested separately as per local requirements.
following two variants.
> The purity of the core application is main-
1. The Core and Country-Specific Model: Core is tained during the BU implementation. Any
developed by extracting the common business change in the core application is made
requirements from all affected BUs. only after a thorough analysis of the new
requirement and after ensuring the suit-
> Start with requirement gathering for all ability of that requirement in the common
BUs. A thorough requirement analysis is application. This must be approved by the
carried out to determine the requirements regional team and added to the core by the
from all the BUs. same team.
> Abstract the common requirements and
The pluses and minuses of this approach are as
define the boundary for the core and seg-
follows.
regated BU-specific requirements. After a
detailed analysis is performed with inputs Pros:
gathered from different BU stakeholders, a
• More standardized towards a common business
common requirement set is developed. and technical solution.
> Develop core as a common application • Less effort required during BU implementa-
based on the common requirements. tion.
> Developed primarily as part of a regional • Controlled and effective governance.
initiative, these system requirements are • Subsequent BU implementation may happen
tested as an individual project/product. This in parallel.
development of core application is run and
managed by the regional team. Cons:
> BU-specific layers are built on top of core, • Initial investment is high.
separately. • ROI is realized very late in the process as most
> Plug in country-specific functionalities or of the initial time is spent in gathering require-
changes to ensure alignment with the over- ments for all BUs and then building the core.
all solution road map and follow the same • Risk is higher as actual BU implementation is
principles. performed late.
Core and Country-Specific Model
BU 1 Functionality
Core
Core Functionality BU 2 Functionality
Core Core
Core
BU 3 Functionality
Figure 1
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4. 2. The Base and Customize Model: One BU is quent BU and controls the changes effec-
selected for the first implementation and the tively.
end-solution is considered and standardized
as the base to be implemented for subsequent
> Configuration management is done using
a centrally managed repository with the
BUs. trunk representing the regional codebase
> Select the first two BUs to get near full and the interim BU development written on
functional coverage. the branches.
> Start with requirement gathering for the > Each country should have stand-alone in-
first BU. stance with selected or all features from
the regional codebase.
> Design and develop the application for
maximized reusability and extensibility. The pluses and minuses of this approach are as
follows.
> Test and implement the application as per
first BU requirements. Pros:
> Share the codebase with the next BU; that • The ROI for the first BU is achieved faster than
BU then builds its specific requirements on the previous model as a working solution.
top of a shared codebase. • Minimum code changes to speed up rollout
and reduce risk.
> Codebase will expand depending on the
nature of the functional requirements en- • Less risky, as BU implementations are sequen-
countered during the first two or three BU tial.
implementations. • Initial investment is low.
> After two to three BU implementations, Cons:
cut off codebase development and baseline
it as the regional codebase (though it is • Complex governance after the first implemen-
tation.
recommended to cut off the codebase as
regional codebase after the first two BUs). • Greater chance of deviating from a standard-
ized business and technical solution.
> Share regional codebase as executables
with subsequent BUs for extension. • Due to sequential implementation pattern,
time taken to implement all the BUs is greater.
> Changes and additions should be analyzed
• Complex configuration management.
and approved for induction to the regional
codebase. Implementation: Key Influencing Factors
> The regional codebase is managed region- Similar to development, there are multiple factors
ally as a single repository. This helps the which influence a multi-country implementation
movement of this codebase to the subse- during the post-development phase, and based on
Base and Custom Model
Cut Off
BU 1 Functionality BU 2 Functionality
First BU First BU Regional Implement to
Code Code Code Subsequent
Base BUs
Figure 2
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5. those factors it is crucial to adopt to any one of 5. Different regulations and data privacy:
the industry practiced models. These are factors Legal and regulatory challenges arise out of
mainly related to the post-development and differing and sometimes conflicting laws and
implementation phase. These include: financial practices across countries. There
may be restrictions on hosting data outside
1. Governance: This is a key influencing factor the borders of a country. Cross-border
even during the implementation phase; main- payments across countries may need approval
tenance and enhancements of the developed or may not be allowed at all.
solution may be either done by the regional
6. Multilingual support: A support team consist-
team or by the BU team depending upon the
ing of multilingual people is required to support
approach adopted for implementation.
the regional application. Various challenges
2. Hardware/software/infrastructure and con- need to be overcome (as a result of geographi-
nectivity: The procurement of hardware and cal and cultural differences), including support
software should be conducted either regionally of local languages and local practices.
or locally. Connectivity is an important factor 7. Configuration management: Configuration
for consideration and highly influences the management and code promotion is complex
model adopted. for a regional implementation as compared
3. Change and release management: Based on with local instance deployments. This com-
the development approach, the change and plexity varies largely depending on the archi-
release management can be done centrally tecture of the application and development
in the regional center or locally by individual methodology.
BUs in accordance with an organization-
Based on their enterprise constraints and working
stated standard process. Any change in the
model, organizations may be influenced by either
core application or core codebase needs to be
all or any number of the aforementioned factors.
handled extremely cautiously as it will impact
Based on their degree of influence and priorities,
all the instances.
organizations should adopt any one of the proven
4. Hosting and disaster recovery environment: approaches or models as listed below.
This may happen either regionally or locally
and varies depending upon factors that lead Implementation: Approaches
to adoption of any one of the implementation and Models
approaches or models. There are two primary ways in which a multi-coun-
try solution can be implemented and managed.
1. Regional Implementation:
Regional Implementation
> Deployment of a single instance accessed
by multiple BUs (mostly separate instances
of the same solution for each BU, hosted
regionally).
> Configuration management and code pro-
motion handled regionally.
Business Business
Unit 1 Unit 2 > Deployment of the complete solution to a
specific location (mostly the regional cen-
ter) and accessed via network by different
BU users.
The pluses and minuses of this approach include
the following.
Pros:
• Provides enhancement of reliability, a reduction
of hardware acquisition costs, an accelera-
Business tion of movement towards standards-based
Unit 3 servers and application consolidation and the
leveraging of existing development skills.
Figure 3 • Better regional control.
cognizant 20-20 insights 5
6. Cons: • Infrastructure consolidation is not achievable,
resulting in high maintenance and running
• Requires the availability of hardware and soft-
costs.
ware at the regional level only, but has a risk
of availability and disaster recovery as all BUs
Budgeting: Key Influencing Factors
will be dependent on a single infrastructure.
and Approaches
• The varied country-specific rules and regula-
Structuring the program cost between the BUs and
tions binding data portability across country the region is often a difficult task, and can affect
boundaries can pose a risk to this approach. the program outcome significantly. As different
• Performance is a key concern. countries/regions will have varying degrees of
reliance and importance placed on these shared
2. Local Implementation: applications, and also as the customer base and
> Deployment of the same core solution to in- business volume will not be the same for different
dividual BUs as stand-alone instances. business units, it is important to build a financial
model which is proportionate and justifiable to
> Requires the availability of hardware and
all the stakeholders. In most of the cases, the
software in individual BUs.
businesses for different BUs vary in size and
> Configuration management and code pro- complexity, so the cost allocations to build appli-
motion is handled by BUs. cations for different BUs need to be handled in a
The pluses and minuses of this approach include very reasonable and equitable manner. There is
the following. no easy solution for this challenge, but typically it
is handled in one of the following two ways.
Pros:
1. Sharing the cost for each implementation:
• Federated control of hardware and software Typically for these types of program, a regional
locally. budget is allocated along with a budget for
each BU. The implementation cost for any BU
• Existing peripheral devices can be used without
is shared by the regional and BU teams. In this
much change.
method, each BU implementation is taken as
• Reduced risk of disaster recovery as all BUs a separate project and cost is shared between
may operate separately. BU and region.
• Control of changes and releases management 2. Core and customization cost: In this model,
is quite simple and done by local teams. the regional team sponsors the development
• Better performance than a regional model. cost for the core application or codebase
(depending on the development methodology).
Cons:
Here the initial core application development
• Hardware and software procurement costs cost is completely borne by the regional team,
may be redundant and high. then the BU implementation and BU-specific
Local Implementation
Business Unit 1 Business Unit 2 Business Unit 3
Figure 4
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7. customization cost is left with the individual our vantage point: It is extremely important
BUs. In this method, the BU has the liberty to to have a proper due diligence phase, to first
customize (with BU-specific functionalities) understand necessary orga-
the application based on its need, budget and nizational behaviors and It is extremely
business criticality. weigh the applicability of key
influencing factors. Based important to have a
Conclusion on the influencing factors proper due diligence
Regional implementation of various applications applicable for the organization, phase, to first
has become a necessity for most large orga- a suitable model or approach
nizations doing business in multiple countries for multi-country implemen- understand necessary
across BUs within a single region. This approach tation can be adopted. Once organizational
is becoming increasingly relevant in today’s an organization adopts the behaviors and weigh
increasingly interconnected global economy, right development and imple-
where organizations deploy varying methods and mentation approach, the the applicability of
technologies to achieve maximum efficiency from subsequent processes fall in the key influencing
a single initiative. Different approaches will make place with little or no difficulty. factors.
sense to different organizations based on their On the other hand, without
business situation and future road map. giving due considerations to
the key influencing factors organizations may run
This paper has acquainted the reader with key into thorny problems during the development and
influences and business factors based on our implementation phases.
real-world experiences. One key takeaway from
About the Authors
Goutam Kanjilal is a Cognizant Client Partner working with insurance industry customers across Asia.
A 10-year Cognizant veteran, Goutam has worked on numerous large consulting and strategic devel-
opment projects with multiple clients worldwide. His primary responsibility is to provide strategic
solutions and build strong executive-level relationships with insurance clients throughout Asia. Goutam
has a bachelor of engineering degree from Calcutta University (India) and holds various certifica-
tions on project management, technical and insurance-domain related subjects. He can be reached at
Goutam.Kanjilal@cognizant.com.
Sabyasachi Chowdhury is a Senior Architect with the Insurance Technology Consulting Group within
Cognizant. He has experience in SOA, multi-country rollout, JEE-based insurance applications and
enterprise architectures. His interests include architecting, multi-country implementation and large-
scale technology modernization programs. Sabya has a Bachelor’s degree in electrical engineering
from NIT Rourkela (India) and is a PMP and certified in TOGAF 9 and SCRUM. He can be reached at
Sabyasachi.Chowdhury@cognizant.com.
cognizant 20-20 insights 7