DSQ Software, with its extensive technical and Business Solutions experience, has set up a dedicated unit to undertake Euro Currency Changeover Projects. The Group comprises of professionals with functional expertise in banking and finance besides skills in providing IT services and project management. The Group is geared to provide consultancy on the changeover strategies, besides offering software conversion services. DSQ has catered to some of the biggest names in the industry and has dealt with a wide range of applications. Having already handled projects for Euro Conversion for a multinational bank and an asset management company in Europe, DSQ is all geared up to face the Euro challenge as an IT partner and solution provider.

The key components of the DSQURO solution are :

EUROFOCUS

EUROASSESS

EUROENABLE

EUROIMPLEMENT

EUROFOCUS

EuroFocus is fundamentally a study phase. The aim of this phase is to acquire a working knowledge of the organization and understand its IT systems. For this purpose, the company would first nominate an in-house Euro Task Force comprising of representatives from the business, marketing, production, finance and IT wings. Through a series of knowledge transfer sessions and meetings with Euro Task Force and key personnel in the organization, the company's present structure, its business processes, the state of the IT infrastructure etc., would be brought to focus. The company's thinking in terms of the scope and the nature of changeover for Euro would also be documented.

Study Business Processes within the Organization

A thorough understanding of the company's business flow would be the primary objective of this phase. The DSQ Team would identify the various business processes within the organisation and document the business flow, location-wise division of the organisation, organisational structure, supplier/ distributor networks, treasury and banking arrangements etc., in a 'Business Process Understanding' document. Questionnaires and/ or interviews with the customer would be used as tools to obtain this information.

Study the existing IT Systems

On attaining an acceptable level of knowledge of the organisation, the next stage would be to understand the IT systems and map them down to various business processes. This phase would study the exiting IT systems and prepare a 'Systems Inventory Report' of all existing software and hardware components. This inventory would be an exhaustive list of all programs and data objects, the hardware infrastructure, servers, clients and their configuration, network protocol and all development platforms used in the organisation. A systems flow diagram will also be drawn up to depict the inter-relationships between programs, job control routines and interface files.

Define the Scope and Nature of Changeover

The members of the Euro Task Force would study the documents on Business Processes and IT structures and evolve the overall scope and nature of the changeover based on the organisation's requirements and future plans. It would essentially address major aspects like business, legal, accounting requirements etc. for a complete changeover after 2002. Besides, the 3-year transition period is also likely to bring with it a host of changes in the market that would influence the organisation's working internally and externally. These would be discussed with the Euro Task Force and a 'Changeover Cookbook' would be prepared.

EUROASSESS

While EuroFocus dealt with the current state of the organization and the broad scope of the changeover, the EuroAssess phase would look at it in detail from the angle of currency impact, business impact and IT impact. With this input, a document giving a complete mapping of the proposed IT structure with the business processes would be prepared at the conclusion of this phase.

Identify Issues of Euro Currency Impact

The impact of the single currency on the company depends on its areas of operations, the various currency components in procurement, production, distribution etc. This would also depend on whether the country is in the Euro Zone or outside it. The Euro would impact almost all functions of the organisation, such as purchase, production, payroll, sales and finance. The degree of impact would depend on whether Euro could be regarded as just another currency or would it invoke legal and accounting issues like triangulation etc. Besides, issues like treasury operations and banking arrangements would also be specifically addressed for evolving changeover strategies.

Identify areas of Business Impact

The new currency would bring with it a host of changes in the new business environment. These changes would evolve over a period of time. The Task Force would dwell upon strategic business changes that would help the company maintain its competitive edge. They would evaluate supplier chains, customer's needs, distribution channels, pricing and packaging policies, and the competitive advantage by re-positioning, and suggest suitable changes. These would then be evaluated for feasibility and phased implementation. This exercise would involve the Euro Task Force interacting with the company's leading suppliers, distributors and customers. Market intelligence in regard to competitors' strategies in regard to pricing, packaging etc., would be additional inputs for arriving at company's changeover plans.

Identify areas of IT Impact

Once the business changes are identified, the corresponding areas of IT changes would also have to be identified. The inventory of existing IT systems documented in the EuroFocus phase would be the key tool in identifying impacted areas. Some systems might have to be re-written, while some others simply converted to dual currency reporting. Some applications may need to be removed altogether. Based on extensive discussions with the IT department and the Euro Task Force, DSQ's teams would document anticipated areas of IT impact and list them based on criticality and changeover methodology. The IT Impact Document would essentially include all databases, programs, screens, outputs, files etc., that would be affected as a consequence of the business changeover. The hardware changes would also be identified and documented in this phase.

Map software on Business Applications

All the components of the proposed IT systems would be mapped back to the Business Applications to ensure conformance to the Business Impact anticipated. This process would throw up gaps and redundancies, besides the need for modifications to various application modules. The issues brought about by fresh connectivity and interface requirements would also be addressed in the mapping document. The software thus mapped will be resilient with a reasonable flexibility to changes in scope. This Document would also present the organisation with an opportunity to have a re-look at its IT systems and go in for a complete revamp if beneficial.

Identify packages for Euro Upgrades

The various off-the-shelf packages in use in the company would be studied for their suitability in the proposed changes in software/ hardware platforms. Those found suitable would be scrutinised for euro compatibility. Where necessary, the respective vendors would be interviewed and the status of euro-upgrades to the packages would be ascertained. In case of non-availability of such upgrades, the alternative options would be discussed and documented.

Identify modules for re-development

In any organisation there would be a sizeable chunk of bespoke software running alongside vendor-developed packages. Both these components would be taken up for detailed review for the proposed changeover. Discussions with the relevant vendors would focus on the level of modifications needed and the time and cost factors associated with it. These would be carefully documented for a decision on future development. Besides, the bespoke software too would be subjected to similar study and options for development would be discussed. Various functional teams like inventories, marketing, budgeting etc., would have developed spreadsheet applications for their use. These spreadsheets would need a thorough revamping to address the euro requirements. A detailed document prepared at this stage would set out the areas and approaches for re-development.

Prepare an Action Plan

The documents prepared during the EuroAssess phase thus far would be consolidated and a detailed Action Plan would be prepared to specifically address the IT preparedness. This 'Euro Action Plan Report' with various possible approaches would be presented to the company. This presentation would mark the end of this detailed study phase of EuroAssess. The company would now be able to decide on its approach methodology and approve an Action Plan for IT preparedness.

EUROENABLE

The EuroEnable phase grapples with issues of prioritisation for re-development, strategies for the transition period, the various interfaces to be handled, keeping in mind the legal and fiscal issues involved in the changeover.

Prioritize Applications/modules for phased re-development

The applications and modules to be re-developed would be prioritised based on their criticality and the business and functional requirements. Front office modules and customer interface systems would receive priority over other applications. Besides, the plans of clients, suppliers, distributors and governmental agencies would also form the guiding factors in the prioritisation for the changeover. For this purpose, a module-wise criticality and high impact list would be prepared and the acceptance of the Management would be obtained to chalk out the phased development.

Evolve Strategies for the transition period

The entire transition period between January 1, 1999 to December 31, 2001 will have to be carefully strategised. The transition period would require systems to report in both the local currency as well as the Euro. This would however become redundant once the Euro comes into circulation in 2002 replacing all local currencies. As such, strategies should be evolved for the dual-currency functionality during the transition period. It could comprise of options like wrapper solutions or having stand-alone currency converters for specific modules/ functions. In the case of historic data, one may still need to convert to the new currency for the purposes of time-series analysis. The method and basis of conversion and the level at which the financial data would need to be converted would be finalised at this stage.

Implement solutions for dual-currency functionality

The main aim of this phase is to create a two-way currency conversion facility for both historic and current data. The existing systems should continue to function in the Euro Zone, even as the total changeover project is taken up for phased re-development. This could be achieved by implementing a wrapper solution around the existing system or with the help of stand-alone currency converters. The wrapper solution would sit on the present system and provide for dual-currency (i.e. Euro and home currency) handling in all screens, inputs and outputs. This phase would essentially ensure that the software copes during the transition "No compulsion, No Prohibition" period, allowing clients and customers to deal in the currency of their choice.

Ensure interfaces with internal and external data streams

The issues of interface with internal and external data streams would be analysed in greater detail during this phase. The various sub-systems within the company and the systems obtaining in its branches and subsidiaries located in other centres would be carefully studied to ensure proper interfaces between systems. The company's dealings with trade associations and governmental agencies in data interchanges would also receive closer attention. Thus all the interface issues would be addressed to ensure unhindered flow of information in the changed scenario.

Re-develop modules in a phased manner

Once the changeover framework has been agreed upon and the processes have been put in place, the designing and coding for both wrapper solutions and/or re-development can be carried out. This would be in the nature of a full-fledged Systems Development Life Cycle project. The project manager and project leaders from DSQ would conduct systems analysis, design and development of the applications, taking care of quality assurance requirements. The analysis would also throw up options for development of specific modules offshore, which would be cost-effective. The modules taken up for development offshore would be subjected to strict project control and review mechanisms to ensure both quality and timely completion of the project.

Ensure adherence to Euro regulations, fiscal and legal requirements

Through the course of the development, a lot of issues pertaining to adherence to Euro regulations, triangulation rules, fiscal and legal requirements etc., are likely to arise. The functional consultant to the project will ensure that the developed software is adheres to these rules and covers all the legal checklists.

EUROIMPLEMENT

Though EuroImplement is the final phase of DSQURO solution, some of the activities listed in this phase, like the awareness campaigns and presentations to staff would be initiated during the earlier phases at the appropriate time. This phase covers some very crucial aspects like acceptance testing by the customer, interfaces with other systems and seamless integration of IT systems with business processes.

Create Euro alertness among the employees, clients and customers

The first step in the changeover project is in ensuring its acceptability. The entire changeover, restructuring and reorganisation would be discussed in detail with staff to prepare them for the new organisational system. More importantly, the proposed currency changes, the implications in handling dual-currency across the counter and within the systems would be explained to the staff to ensure against chaos at the implementation stage. The external world dealing with the company such as the suppliers, distributors, clients and industry associations will also be informed of the company's internal changes. This would be achieved through workshops and presentation sessions from time to time, starting from an awareness campaign at the beginning of the EuroAssess stage.

Test the re-developed and upgraded modules

The second aspect of EuroImplement would cover Acceptance Testing of the re-developed and upgraded modules for their basic functionalities as well as meeting euro regulations and guidelines. A data simulation of internal and external modules would also be provided so that the software can be tested for integration before the live run. Any bugs found at the acceptance testing level would be cleared and the software would be signed off for the actual integration with internal and external modules.

Ensure seamless integration with internal and external systems

The findings of the report on the interfaces with the internal and external modules will be used here and the software will be interfaced with all the internal and external modules. The users along with DSQ's Test Team will test the interfaced systems online. Where necessary, dry runs would be conducted to test the connectivities, enlisting co-operation from agencies whose systems are linked to the company's systems.

Business and Systems Implementation

The whole Euro changeover project would be implemented in a phased manner, dovetailing it with the priorities drawn up by business considerations. Different modules or applications would be ready for changeover at different points in time during the transition period. The responsibility of the DSQ team would extend upto the stage when all the modules have been converted and IT systems are totally integrated with the business processes.