Old Mutual`s group chief information officer (CIO) Vic Lumby will move to the US next year after serving 10 years in the life insurer and financial services group`s technology hot seat.
Lumby will take the position of chief operating officer of the US life business, which includes a large IT component such as overseeing outsourcing contracts. He will continue to contribute to the group`s global IT strategy, of which he has been a key coordinator.
Theo Nkone, GM for technology in Old Mutual`s Services Technology and Administration division, will take over the CIO role, which will be added to his current responsibilities once Lumby takes up his new appointment on 1 March 2005.
Old Mutual claims to be one of the largest users and developers of IT systems in SA. Over 650 personnel (excluding those at banking subsidiary Nedcor and short-term insurer subsidiary Mutual and Federal) are employed in developing and deploying systems. The group spends around 20% of its annual operating expense budget on IT.
One of Old Mutual`s IT interests is Global Edge, a company that produces about R45 million worth of software annually from SA for the group`s overseas subsidiaries.
Crunch year
During Lumby`s tenure, he orchestrated a large outsourcing deal between Old Mutual and Computer Sciences Corporation in 1999. The seven-year deal is worth about R2.1 billion.
In 1999, Lumby ensured the group`s Y2K readiness, addressed the technology facets involved in the de-mutualisation process that saw it list on the London, Johannesburg, Namibian and Malawian stock exchanges, and facilitated the change in financial year-end and accounting policies.
The Computer Society of SA presented him with its CIO of the Year award in 1999.
Lumby says his move to the US is part of a process to become more involved in the group`s core life insurance business.
"The role of the CIO is changing and he/she has to become more and more attuned to the core business of the company."
IT strategy
Lumby says technology continues to play an ever-increasing role in Old Mutual`s business and the group has been a key innovator. "We made some mistakes in the past, but at least they were not the horrendous disasters that some other companies made."
He says Old Mutual`s IT strategy rests on three pillars: to simplify business designs and processes, to integrate efficient technology solutions, and to build these on a standardised infrastructure base.
These are implemented by using the two principles of creating the concept and then reducing the complexities.
"We have a policy of challenging the software and services we use. This means we take a `zero base` view."
He says the standardisation policy has served the group well, such as when it consolidated its five call centres into one.
Lumby welcomes government`s recent telecommunication liberalisation announcements, saying these steps will benefit corporations and consumers alike.
"We have already seen some of the benefits of these announcements with [Telkom`s] application to reduce overseas call tariffs."
Share
