Goal of ground-breaking programme to develop Complexity Model for CIOs
Capco, a global business and technology consultancy dedicated solely to the financial services industry, announced today the launch of its IT Complexity Model project with Commerzbank - a leading bank for private and corporate customers in Germany. Background information on the Capco/Commerzbank Complexity Model is outlined in a white paper authored by the project's leaders: Dr Peter Leukert, CIO of Commerzbank AG, Andreas Vollmer, Chief Architect of Commerzbank, and Mat Small, Pete McEvoy and Mark Reeves, Partners in Capco's Capital Markets Technology practice.
IT complexity, which generates inefficiencies and additional costs within organisations, is generally handled by CIOs and CTOs based on past experience, intuition, trial and error and financial analysis. To date, however, quantitative techniques for measuring complexity have not been available. The goal of introducing a Complexity Model is to enable better management of complexity by allowing CIOs to quantify and articulate short-and long-term implications of initiatives, costs over time, impacts on existing operations and the business as a whole, as well as strategic implications and justifications for high-risk projects.
Currently in the first stage of its development, the Complexity Model is focused on IT applications and has been statistically validated by both Commerzbank and academia on 1000 applications over three years. Other firms are being selected for participation in the project going forward and the additional data will serve to increase the model's precision.
Dr Peter Leukert, Commerzbank, said: "We believe that a complexity metric could substantially aid the CIO in decision making and we are well on the way to developing and applying such a metric. Commerzbank is very pleased to be working with Capco on this ground-breaking initiative."
Mark Reeves, Capco: "In our paper, we are aiming to provide a useful overview of the problem of IT complexity and showcase some new ideas for approaching this issue. The goal of the complexity project is to foster a useful dialogue on the complexity issue, continue gathering information and data and ultimately make a substantial contribution to how CIOs improve their organisations."
The white paper outlines the four dimensions covered by the Model: function, interfaces, data and technology. As the Model is being developed, the project will be addressing a series of topics related to complexity including:
• How is complexity calculated and how would an organisation embark on a complexity programme?
• What is envisioned as a dashboard for complexity measurement and scenario modelling?
• How is complexity modelling different across various corporate paradigms (different sizes, ages, business models)?