CEPAS Reflection

The consultants successfully outlined the important factors of the CEPAS implementation. Most importantly we were able to gain fundamentals to deploying an application this essential. The CEPAS standard was ideal for synchronizing the specifications for all cards. The IDA approached this implementation in the best way, by not merging NETS and LTA and allowing each company to independently develop their own business strategy and still remain competitive. This was important in the implementation process. Facilitating the process for consumers to exchange their cards easily at many multiple locations was very effective. Most importantly, we realized the third party involvement was key. It helped eliminate biases and helped develop the equitable payment system in a neutral aspect. The third party was effective because it had no stake involved and therefore allowed it to be very objective in reviewing and approving project specifications. It helps maintain the impartial view which benefits the overall goal.

The implementation of the CEPAS system had a great impact in Singapore. The CEPAS platform analysis was on target with it’s rating on the difference prior to and after the CEPAS implantation. It’s important to note that the convenience and the scalability were two factors that are crucial in its continued success. The motivation for all entities involved helped facilitate the implementation. The Singapore Government, LTA, NETS, card manufacturers, banks, retailers, car park operators and consumers were all important stakeholders that would greatly gain from CEPAS. To become a cashless society and for all the stakeholders to reap the benefits the most crucial stakeholder is the consumer. The blueprint outlined by the consultants will help guide us in other implementations that involve many businesses that have a lot at stake.

CEPAS (prep)

Previously, before 2009, two major card issuers held 95% of Singapore’s micropayments market. The Land Transport Authority (LTA) and the Network for Electronic Transfers Singapore (NETS).

1)    LTA

Consisted of the EZ-Link fare card, which monopolized the public transit market including rail/mass rapid transit, ticketing, bus and taxi fare collection.

2)    NETS

CashCard which held rights to the electronic road pricing system and dominated retail payments as well as Singapore’s private car park schemes. This consisted of 60% market share.

Integration of both systems was needed to provide convenience for e-payment consumers, but there were many obstacles involved.

·       Lacked interoperability-they could not exchange data which limited growth

·       Different commercial interest of the parties involved

·       Cost infrastructure and established network of card and card readers were already in place

For the purpose of a large-scale implementation, merging these systems was imperative. Commonality has to be established within the commercial, operational and technical aspects.

Background:

In 1985, NETS was part of a government initiative to drive productivity, it was set up by a group of local banks. This initiated Singapore’s first cashless payment platform through the nationwide Electronic Funds Transfer at Point of Sale Network (EFTPOS)

In 1987, LTA’s single function magnetic fare card launched.

In 1996, Nets launched the CashCard; e-purse scheme using smart cards-used primarily for payment of parking fees and ERP toll charges.

In 1998, it cost Singapore $656 million to support local currency in circulation and the projected cost of handling cash was expected to increase to 1 billion in 2006

In 2002, replaced its magnetic fare card with a contactless multipurpose smart card (part of the Enhanced integrated fare system (EIFS))

Because of the EZ-link fare card----NETS was no longer the sole provider of widely accepted stored value facilities approved by the Monetary Authority of Singapore (MAS)

In 2003, Nets annual collection of ERP charges totaled $80 million; CashCard payments at car parks totaled $85 million. There were 5.5 million EZ-link cards in active circulation vs 4.5 million NETS CashCards

Singapore’s local market card growth was at 5% and 60% of transactions in Singapore were estimated to be cash-based.

(The two payment modes collected; EZ Link –$974 million and CashCard $271 million)

There was substantial competition in the retail sector from the credit and debit card.

Through its first-mover advantage as being very significant in the merchant acquisition through the EFTPOS network and having the largest terminal base island-wide, its CashCard showed strong growth in retail transaction volume. Within a span of two years the CashCard transactions grew from 102 million to 135 million.

In 2004, Nets reward loyalty program launched-to complement its core e-payments business

Singapore needed one platform to combine these two methods and make it more efficient for the business and less costly for the consumers. To do this the Infocomm Development Authority developed the Contactless e-Purse Application Standard (CEPAS).

The stakeholders involved were the consumers, because it would save them money and the convenience. The government because it would decrease the cost of cash handling and the businesses that benefited from electronic payment systems. EZ link and NETS would benefit from one infrastructure that would help reduce cost.

Along with security and integrity requirements, CEPAs had to meet the high-performance requirements of Singapore’s transit system. This included;

·       Atomicity – Complete updates or nothing at all

·       Signed Certificate-Successful verification of Signed Certificate at the Card Manager’s host proved integrity and authenticity of transaction

·       AutoLoad – If the card was linked to a bank account or credit card it would provide balance by a specified amount when the debit amount was insufficient

·       Partial Refund – Limited to the most recent amount debited, this was useful for retail and bus fare transactions that required ‘at start, deduct maximum, upon end, and refund unused amount’.

·       Cumulative Debit (or Slicing) – To reduce transaction processing overheads, debit operations for one card were accumulated into a final amount

Consumer’s motivation for embracing the functionality of the CEPAS system was the benefit of using a single card for its array of transactions, which included the bus, rail and taxi payment and retail purchases. Although, consumers were still moving at a gradual pace to change their method of paying cash for the taxi fares as noted by Mastercard’s survey. For the industry, contactless payments provided the convenience for customers, which benefited merchants. There was a decrease in queuing time that resulted in higher sales and transaction volumes due to the faster payment efficiency provided by contactless smart cards. Overall there’s alot to gain from the implementation of CEPAS. Risks are minimal compared to the benefits.

Bombardier Reflection

To ensure our third ERP implementation succeeds at a 100% goal rate, the best practice approach is essential. Based off of our experience from the Mirabel and the Saint Laurent launch, the RP consultants did a great job in identifying the 10 Best ERP implementation practices.

Based on the consultant’s analysis, on our second implementation with St Laurent, we had already successfully implemented five of the ten approaches.

·       Ensure Senior Management Support

·       Create Clear Implementation Plan and Timeline

·       Choose the Right Software

·       Ensure Effective Communication to ALL Users

·       Invest in Change Management Training

The other five approaches are equally important but needs improvement in order to reach our 100% goal. The consultants provided a concise description on the following approaches but I’d like to expand on the description.

Designate Qualified Project Team

Appointing a project manager and backfilling previous positions are important but it’s important to note that our team is a valuable resource and therefore it’s extremely important that we don’t rush the selection process.

Identify and Define Clear Objectives and Key Requirements

The objectives can't be in the form of meaningless generalities. By establishing goals and identifying potential problems or obstacles, Bombardier can prepare itself effectively and alleviate concerns the project teams may have.

Establish Key Performance Indicators (KPIs)

Establishing KPIs will allow us to measure our company’s progress toward reaching our goal. The KPI should lead Bombardier to actionable steps to achieve its goal.

Set Realistic Expectations

The goal should be to deliver quality results without any major setbacks. A realistic expectation takes into account where Bombardier exists within the context of its competitive environment and where it will be with the success of the ERP implementation.

Provide ERP Training Before and After Implementation

Changes in technology are inevitable. To maintain its efficiency, Bombardier should provide a training support system even after the implementation process. This is key because if a department lacks training or effective use of the ERP then the department can affect others and regress to using the legacy system.

Bombardier made mistakes in its initial ERP implementation but also gained valuable experience. RP consultants were successful in identifying where we need changes and providing a strong framework for our next implementation.

AtekPC Reflection

The presentation by the consultants gave a better understanding on how we should implement the PMO. Although 75% of companies fail to succeed in PMO, the benefits outweigh the risk we are taking with PMO. If we first assess our company’s needs and resources we can create a clear vision of goals that can be achieved by PMO.

AtekPC’s previous informal approach to project management had no standardized practices, which prevented transparency across the organization. Our main obstacle in implementing PMO was transforming the organization culture. Employees are not adhering to the PMO objectives and there’s resistance in adopting this method.

The consultants suggested going from PMO light to eventually PMO heavy with no specific time frame for either phase. Although, I agree there should be a combination of both, I feel the PMO light phase should have a time frame set at about three years. This would allow for an assessment of the value added and also allowing gradual acceptance by the culture. This light phase will also help provide the visibility needed to cancel, or scale back unnecessary or less strategic projects. Employees need to be aware that the PMO heavy phase will be implemented at a specific time. In the PMO light phase resources can be efficiently allocated. The benefits gained throughout the PMO light phase will encourage managers to accept the changes and realize the efficiency created. Their teams will produce more effectively which will lead to high morale and dedicated staff. Incremental improvements will pave the way for cultural acceptance. The PMO light phase can be considered the set up and the PMO heavy phase can be considered as the operation.

Employees have a hard time changing their methods and way of managing projects, which is why top management needs to make it clear that PMO will be a permanent organizational change. The training suggested by the consultants will help achieve a structured plan and by providing mentors this encourage communication and alleviate concerns.

Establishing an effective PMO is not an easy task. Preparation and execution of a PMO is a factor of its success. It must be done with consideration to the cultural effect. When planning and building a PMO it is imperative that it is done in a mode that compliments the existing structure of the organization. AtekPC must have an optimal structure that is designed and based on its many considerations and variables. An effective PMO creates greater efficiency, as it will allow AtekPC to do more quality work with fewer resources and less risk. The result of these benefits will allow our organization to significantly improve its project success rate.