Post on 26-Jan-2016
description
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Architecting Business Solutions for the Enterprise
Presented by:
JIM CALDARELLASenior Solutions Architect – i-flex solutions
For more information contact:jim.caldarella@iflexsolutions.com
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The CEO Song
• Our technology is “bankrupt”• Our core systems are stretched too thin• They are overly complicated• We struggle to make mandatory changes• Improvements are expensive and slow• One-off upgrades are band-aids • On the whole, it gives us too little and costs
too much!• How do we attack the problem?
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The CTO Refrain
• We must re-automate the back office• Ensuring that it supports today’s and
tomorrow’s business needs• The changes must be cost-effective, high-
performance, modern…• We need to do it “soon”• We won’t make a dent in earnings• It will conform to an enterprise-wide
“Architecture”
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Second Chorus
• Our legacy systems are…– Insular…applications are not integrated– Out of touch with our marketing / sales initiatives– Complicated…some with 35+ years of tweaking– Expensive…the same IT ”capability” costs less every year– Untouchable…big changes to meet market needs—forget about it!– Loved…Tradition!…after 35 years, who doesn’t love their system?
• We face real business risks…– Customer “trust” erodes…not quick, fast, agile, or strong enough– A huge disaster strikes…no one has a total view– Opportunities escape…they all don’t just fall on your head– Costs escalate…eroding earnings and creating a bunker mentality– Defensive spending rises…costs a lot, does little to help– Ill prepared for the unknown…
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The Big Question
• What is an architecture?• How do we get one that fits our business?
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The Entire Space
TheBack Office
Comprehensive, but not very useful
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Breaking It Down
What you offer to your customers
Your products and services
TheBackOffice
Business
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TheBackOffice
Breaking It Down
Organized into business processes
Function
Business
The work you do to deliver products/services
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TheBackOffice Data
Breaking It Down
Represented as data entities
Function
Business
The information you process
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Breaking It Down
Buildings, computers, networks, people…
The physical environment
TheBackOffice
Infrastructure
DataFunction
Business
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TheBackOffice
What Drives What?
Infrastructure
Data
FunctionBusiness
Requirements
[Degree of Abstraction]
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Revealing the Essentials
The components of each layer and their arrangement (the architecture) needs to be clear
The components of each layer need to be presented in understandable ways (taxonomies /
hierarchies)
The relationships between the components of different layers shows how needs will be fulfilled
(mapping)
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Components - Business
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…Business
Function
Data
Infrastructure
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Components - Function
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and OutDeposit
ProcessingLoan
ProcessingPaymentProcessing
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Business
Function
Data
Infrastructure
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Components - Data
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and OutDeposit
ProcessingLoan
ProcessingPaymentProcessing
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Customers Accounts …
Business
Function
Data
Infrastructure
Relationships
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Components - Infrastructure
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and OutDeposit
ProcessingLoan
ProcessingPaymentProcessing
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Business
Function
Data
Infrastructure
Customers Accounts …Relationships
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Architectures & Hierarchies
LegalEntities
AccountHolders
Prospects… DDA Loan…
Data (an example)
Customers Accounts …Relationships
CustomersLegal
EntitiesAccountHolders
Prospects…Accounts
DDA Loan……
A hierarchy presentscomplex
organizationsin an understandable
way
An Architecture illustrates how things work by revealing the nature of component relationships
Own
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Inter-layer Mapping
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and Out
DepositProcessing
LoanProcessing
PaymentProcessing
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Customers
LegalEntities
AccountHolders
Prospects…
Accounts
DDA Loan……
“Own”
Business
Function
Data
Infrastructure
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Mother of all Mainframes
Applications
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and Out
DepositProc
LoanProc
PaymentProc
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Customers
LEAcctHldr
Prosp…
Accounts
DDA Loan……
“Own”
Business
Function
Data
Infrastructure
FT DP LN
Post GL Rep
LN FT
Acc
CurrentSoftware
Applications
Consistent and
understand-able
reference points
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Reasons for Change!
• Minimize…– Redundant functions– Number of stops End-to-End– Parsing, editing, mapping, validating…– Technology limitations…
• Maximize– Shared functions– Shared data– Standardization…
• Know your data (your competition certainly does)!
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Mother of all Mainframes
Connecting Old and New
Deposits Loans Payments FX L/C
Internet AccessATM ServicesTeller Services
…
Getting Stuff In and Out
DepositProc
LoanProc
PaymentProc
FXProc.
L/CProc.
…
Posting, Reports, Risk Mgmt…
Customers
LEAcctHldr
Prosp…
Accounts
DDA Loan……
“Own”
Business
Function
Data
Infrastructure
FT DP LN
Post GL Rep
LN FT
Acc
CurrentSoftware
Applications
Core Banking
DP …LN FT
InternetAccess
Nirvana
PaymentGateways
BusinessIntelligence
…
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Mother of all Mainframes
Getting There
FT DP LN
Post GL Rep
LN FT
Acc
CurrentSoftware
Applications
Core Banking
DP …LN FT
InternetAccess
Nirvana
PaymentGateways
BusinessIntelligence
…
Plan
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Options
• Remodel…– Cheaper, easier, less risk, requires a lot less thinking– New paint, new room…same old house
• Build…– Very expensive in today’s world, very difficult, huge risk of failure,
requires a ton of very expensive thinking
– A new, custom-built processing environment
• Buy– Cost effective, easiest, no risk, focuses thinking in the right areas– A new, off-the-shelf processing environment– Configurable…how much?– Better technology?
Most are going to choose the “buy” option; Loss of competitive advantage is an issue!
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The i-flex Model
Core Banking…Customer Information
Risk ManagementDDA processing
GL and Sub-LedgerMiddle Office (e.g. confirms)
Regulatory ReportingAccount Analysis, Billing
PaymentsStraight Through Processing
•FT Liquidity management•Regulatory Compliance•Anti Money Laundering
• Message Format• Queue management & Routing
LoansLoan
Syndic-ation
Fed…CHIPS…SWIFT…CHAPS
FXSecuritiesCustody
Deposit …
Internet GatewayBranch
Operations…
Data Warehousing / Business Intelligence
Marts
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Our Products
FLEXCUBE…Core Banking
HPO (high-performance)or
AutoFT…PaymentsFC…Loans
FC…Loan
Syndic-ation
Fed…CHIPS…SWIFT…CHAPS
FC…FX
FC…SecuritiesCustody
FC…Deposit …
FC…Internet Gateway
FC…Teller Operations
…
Reveleus…Data Warehousing / Business Intelligence
Marts
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Benefits
• Cost Reduction– Savings in S/W maintenance / enhancements, D/C operations…– Savings in operations with improved productivity– Payback periods of 5 to 8 years on average
• Risk Mitigation– An integrated view closes many of today’s largest holes– Improved operating control means faster response to issues
• Better Compliance– Keeping up with regulatory controls is easier / less expensive– Improved compliance allows regulators to step back
• Improved Responsiveness– New products and features are easier / less costly to introduce– User configurable software allows low cost market differentiation
• Positive Customer Experience…
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Thank You
www.iflexsolutions.com