Università degli Studi di Pavia - Services...
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Università degli Studi di Pavia Facoltà di Ingegneria Corso di Laurea Specialistica in Ingegneria dei Servizi Business Processes in a Parabanking Company: Functional Analysis and Map of the IT *** I Processi di una Azienda Parabancaria: Analisi Funzionale e Mappatura del Supporto IT RELATORE Chiar.mo Prof. Gianmario Motta CORRELATORI Ing. Rosalia Muraglia Dott. Thiago Giulio Barroero TESI DI LAUREA DI Marta Frascaroli ANNO ACCADEMICO 2010-2011
Transcript of Università degli Studi di Pavia - Services...
Università degli Studi di Pavia
Facoltà di Ingegneria
Corso di Laurea Specialistica in Ingegneria dei Servizi
Business Processes in a Parabanking Company: Functional Analysis and Map of the IT
***
I Processi di una Azienda Parabancaria: Analisi Funzionale e Mappatura del Supporto IT
RELATORE
Chiar.mo Prof. Gianmario Motta
CORRELATORI
Ing. Rosalia Muraglia
Dott. Thiago Giulio Barroero
TESI DI LAUREA DI
Marta Frascaroli
ANNO ACCADEMICO 2010-2011
Ai miei Genitori, Loredana e Giuseppe, e al mio “Fratellino” Marco
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Summary
Summary .......................................................................................................................................... 0
Objective of the work ...................................................................................................................... 2
Outline ......................................................................................................................................... 2
1 – Foundations on Enterprise Architecture ................................................................................... 3
1.1 Introduction ........................................................................................................................... 3
1.2 The strategic role of IT: frameworks ..................................................................................... 3
1.3 Governance frameworks ....................................................................................................... 8
1.4 Enterprise Architecture ....................................................................................................... 19
1.4.1 Early Architecture Frameworks: Zachman ................................................................... 21
1.4.2 Other early Architecture Frameworks .......................................................................... 21
1.4.3 TOGAF – The Open Group Architecture Framework .................................................... 22
2 – Banking : ICT Management ...................................................................................................... 35
2.1 Introduction ......................................................................................................................... 35
2.2 Systematic Literature Review .............................................................................................. 35
2.2.1 Question Formulation .................................................................................................. 36
2.2.2 Source Selection ........................................................................................................... 37
2.2.3 Studies Selection .......................................................................................................... 38
2.2.4 Information Extraction ................................................................................................. 39
2.2.5 Result Summarization ................................................................................................... 39
2.3 Execution of the SLR ............................................................................................................ 40
2.3.1 Question Formulation .................................................................................................. 40
2.3.2 Source Selection ........................................................................................................... 40
2.3.3 Studies Selection .......................................................................................................... 58
2.3.4 Information Extraction ................................................................................................. 59
2.3.5 Result Summarization ................................................................................................... 60
2.3.6 Discussion ..................................................................................................................... 63
3 – The Case Study ......................................................................................................................... 75
3.1 Introduction ......................................................................................................................... 75
3.2 The Factoring Industry ......................................................................................................... 75
3.3 Mediofactoring S.p.A ........................................................................................................... 78
3.3.1 Performance of the Italian factoring market ................................................................ 86
3.3.2 Mediofactoring Positioning .......................................................................................... 86
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3.3.3 Mediofactoring Information System ............................................................................ 91
3.4 The method ......................................................................................................................... 91
3.4.1 Prior Collection ............................................................................................................. 92
3.4.2 Business Process Analysis ............................................................................................. 95
3.4.3 Collection of information about applications ............................................................. 100
3.4.4 Verification of coverage of business processes by the applications .......................... 104
3.4.5 Creation of the Big Picture ......................................................................................... 105
3.5 Deliverables obtained for the case study .......................................................................... 108
3.5.1 Context Diagram (Level 0) .......................................................................................... 109
3.5.2 Detailed Context Diagram (Level 1) ............................................................................ 110
3.5.3 Prior Collection and Business Process Analysis .......................................................... 112
3.5.4 Collection of information about applications ............................................................. 113
3.6 Positioning of the work performed on TOGAF .................................................................. 131
3.6.1 Prelim: Framework and principles .............................................................................. 132
3.6.2 Architecture Vision ..................................................................................................... 132
3.6.3 Business Architecture ................................................................................................. 134
3.6.4 Application Architecture ............................................................................................. 135
4 – Conclusions ............................................................................................................................ 137
Appendix A: List of Publications used for the SLR ....................................................................... 139
References ................................................................................................................................... 157
Chapter 1 ................................................................................................................................. 157
Chapter 2 ................................................................................................................................. 158
Chapter 3 ................................................................................................................................. 159
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Objective of the work
The growing role of computer in business processes has led, in the last two decades, to
a revaluation of Information Technology (IT) as a competitive advantage. The business
role of IT, however, depends very much on an integrated management of IT and of
business process performances. In recent years, in companies with high
computerization, a key element is the "integration" between “Business perspective”
and “IT perspective” and related management frameworks that are epitomized by the
concept of “Enterprise Architecture”. This work illustrates a case study on Enterprise
Architecture in a Para-Banking company. The case study provides evidences of the
practical approach to collect and analyze requirements of current business process and
to assess related IT support.
This work reflects an internship in a factoring company, Mediofactoring S.p.A, division of
the Intesa Sanpaolo banking group, leader in Factoring.
Outline
Chapter 1 - Foundations on the Model: this chapter describes the Enterprise Modeling
issue analyzing existing literature and introducing Enterprise Architecture frameworks,
and it focuses on TOGAF, The Open Group Architecture Framework. The second part of
the chapter analyzes the issue of selecting to an enterprise architecture for actual use.
Chapter 2 – Foundations on the Domain: in this chapter a SLR (Systematic Literature
Review) is on banking, i.e. the domain of our project, where articles on IT management
in banking are analysed.
Chapter 3 – Case Study: this chapter describes the steps of the methodology used. After
the description of the Factoring Company, the method and results are commented step
to step.
Chapter 4 – Conclusions: it summarizes the results of the work and foresees the
potential further research.
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1 – Foundations on Enterprise Architecture
1.1 Introduction
This chapter illustrates some key conceptual frameworks that concern, from
management viewpoints, the role and the architecture of IT in enterprises.
A first, basic perspective is about role and outcome of It in enterprises, thus answering a
question alike “How can IT enable business outcomes?”
This issue has been discussed by many studies, starting from the Eighties, when Porter
and Millar (1985) [1], for example, underline the IT competitive advantages. In the
Nineties, competitive advantages of IT are underlined by Venkatramann’s theory (1994)
[2]. In 2000, finally, after the spread of platforms such as ERP and CRM, a mature
concept of IT management appears with McFarlan and Nolan (2005) [3].
Let us define IT before starting the overview. The Italian National Institute of Statistics
(ISTAT) distinguishes operational areas of IT: a first area concerns industry and a second
services. Generally, IT may be integrated in very different ways (Riccardini, Nasha, Nura,
2002) [4]:
Manufacturing of goods of non-metallic mineral processing in which the role of
IT is not confirmed and e-commerce does not seem to be a competitive factor.
Hotels and restaurants, in which electronic commerce is an element of success,
while networks and Web sites are less relevant.
Real estate, renting, informatics, research and other professional activities
showing the importance of networking as a competitive factor, while electronic
commerce is a background.
Also, the use of IT as a tool to produce information, new knowledge and new content
has become strategically important in recent years.
1.2 The strategic role of IT: frameworks
Porter and Millar Grid (1985), is an extension of the competitive advantage theory and
of the “Value Chain” that Porter, the same, introduced in 1985. The authors discuss the
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fact that IT can provide relevant competitive advantages. The grid they introduced,
profiles information intensity of enterprises business, crossing “Product Information
Content” and “Information Intensity” in the Supply Chain, that we simplify in Product
Information Intensity and Process Information Intensity.
FIGURE 1: PORTER AND MILLAR GRID (ADAPTED)
In general, the grid shows how strategic IT is in industries with high information
intensity both in Product and in Processes. Let us notice that shows that IT strategic
feature is only potential, and the exploitation of this potential depends on management.
Specifically, Banking has high values both of Product Information Intensity and Process
Information Intensity. Such a key role, of course, raises It management requirements.
Venkatraman, the most quoted academician in IT management, developed a grid, that
explains how IT projects are classified in five levels according to their business impact.
The grid crosses two dimensions, namely (a) Obtainable Benefits (b) Rate of change; in
turn levels are
Localized Exploitation: a transformation that is typical for applications which
handle local operation (e.g. checking account computerization)
Internal Integration: a transformation that integrates two independent activities
Manufactoring
Retail
Transport
TLC
Banking
Information Systems
Electronic Equipment
Repairer
Agriculture
Extractive industry
Product Information Intensity
Pro
cess
Info
rmation Inte
nsity
Manufactoring
Retail
Transport
TLC
Banking
Information Systems
Electronic Equipment
Repairer
Agriculture
Extractive industry
Product Information Intensity
Pro
cess
Info
rmation Inte
nsity
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(e.g. checking account and loan management)
Business Process Redesign: business processes are redesigned “End to end” (e.g.
a new customer oriented design of the mortgage loan delivery)
Business Network Redesign: transformation that changes relationship with
suppliers and/or customers (e.g. an integrated systems between banks and
insurance)
Business Scope Redesign: IT can create business opportunities, that are collateral
or core, through new products and/or services (e.g. on demand loan).
FIGURE 2: VENKATRAMAN GRID
The five levels fall in two evolution types. “Evolutionary approach” where limited
organizational changes are involved, includes “Localized Exploitation” and “Internal
Integration”. “Revolutionary Approach”, where intensive organizational changes are
required, includes “Business Process and Network Redesign” and “Business Scope
Redefinition”. Despite their importance for business competitiveness, strategic
innovations are rare, because of their difficult implementation, that reflects their high
investment and risk.
According to Heygate and Spokes (Heygate, Spokes 1997) [5], most CEOs resisted drastic
action that might put at risk the operational stability of their company. “Evolution, not
revolution” is a preferred tactic. Unfortunately, it often led to simple inaction, which
Business Scope Redefinition
Business Network Redesign
Business Process Redesign
Internal Integration
Localized Exploitation
Revolutionary
Approaches
Evolutionary
Approaches
Obtainable Benefits Level
Rate
of
ch
an
ge
Leve
l
Business Scope Redefinition
Business Network Redesign
Business Process Redesign
Internal Integration
Localized Exploitation
Revolutionary
Approaches
Evolutionary
Approaches
Obtainable Benefits Level
Rate
of
ch
an
ge
Leve
l
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made matters worse and saps competitive strength. And so IT became, for the company
of that time, “a kind of bear confined to a cage” that could not learn any new tricks, but,
if fed enough could continue to perform its old ones. In Heygate and Spokes, “an
evolutionary approach is considered a competitive mistake on any terms. Most legacy
systems were considered unable to cope with the date management problems
associated with Year 2000, and the costs and risks of making changes to vast amounts of
unstructured and often undocumented code a had been horrendous”.
McFarlan and Nolan proposed in 2005 developed the same idea of Porter and Millar
with a grid that crosses operational and strategic importance of IT. Depending on their
respective value, IT may play different roles:
Support, when neither business strategy or operations significantly depend on IT
systems
Factory, in those enterprises where operations depends on the use of calculators
but business strategy is not related to IT innovation
Turnaround, in those situations where IT innovation leads significant portfolio
developments, both in production technologies and/or in organizational
functioning
Strategic, that shows the constant IT influence on products portfolio and a
significant dependence of operations on IT systems.
This grid has a clear managerial implication: only some situations really need
management attention, i.e. turnaround (temporarily) and strategic (structurally).
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FIGURE 3: MC FARLAN AND NOLAN GRID
This section introduces a number of theories concerning the importance of IT in
enterprises, to outline a context where information management becomes critical. As
will be explained, over the years, a lot of studies have addressed the concept of “IT
Strategic Planning” or “Information System Architecture”.
Tallon, Kraemer and Gurbaxany (Tallon, Kraemer, Gurbaxany, 2000) [6] “use the
association between business strategy and goals for IT to develop an a priori
classification of firms based on whether their goals for IT emphasize operational
effectiveness, or strategic positioning, or both”. They identify a model that divide firms
into four classes:
“unfocused”, firms that have no clear goals for IT or are indifferent towards IT.
This sense of indifference often leads to a situation in which IT spending is
viewed as an expense to be minimized rather than an investment to be
managed.
“operations-focus”, firms that have clearly defined goals for IT centred on
operational effectiveness. In such cases, IT is primarily used to reduce operating
costs and to enhance the overall effectiveness of business operations by focusing
Factory Strategic
TurnaroundSupport
HIGH
HIGHLOW Strategic Impact –
Application Developement Portfolio
Str
ate
gic
Dep
endan
ce
–
Exis
ting
Ope
ratin
gS
yste
ms
Factory Strategic
TurnaroundSupport
HIGH
HIGHLOW Strategic Impact –
Application Developement Portfolio
Str
ate
gic
Dep
endan
ce
–
Exis
ting
Ope
ratin
gS
yste
ms
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on quality, speed, flexibility and time-to-market.
“market-focus”, firms that use IT to enhance their strategic positioning. The
authors’ interviews with senior executives, show that market-focus firms use IT
to create or enhance a value proposition for their customers.
“dual-focus”, firms that extend their use of IT beyond operational effectiveness
to include market reach and new market creation.
To achieve this level of performance, “dual-focus” firms need to be astute managers of
IT. The identification of this enterprises classes, has helped latest researchers in the
definition of an “industry type” which needs a careful IT planning.
Carr proposes a different view of in 2003 [7]. According to him IT is a commodity. Since
competitive advantages stem from unique technologies, IT, as commodity, cannot
generate competitive advantages. So the management should focus on cost reduction.
Also IT, since it is pervasive, increases vulnerability; hence a second management issue
is to reduce it. The great success of Carr is related to the success of IT governance that
intend to make general management confident on an IT well done standardization. IT
governances is, specifically, the topic of the subsequent section.
1.3 Governance frameworks
Governance frameworks respond to the need of general and IT management as well of
having an established and recognized body of knowledge that provides best practices
for IT management. So, governance manuals are nothing else but recipients, rather than
techniques. We quite the two most relevant needs, namely ITIL and COBIT.
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COBIT
COBIT (COntrol oBjective for IT) is a framework created by ISACA for information
technology (IT) management and IT Governance. It is a supporting toolset that allows
managers to bridge the gap between control requirements, technical issues and business
risks.
According to ―ISACA – COBIT 5 Framework Exposure Draft‖ (Downloadable from
ISACA Website ―www.isaca.org‖) [8], COBIT 5 is a governance and management
framework for information and related technology that starts from stakeholder needs
with regard to information and technology. The COBIT 5 framework is intended for all
enterprises, including non-profit and public sector. COBIT 5 allows enterprises to
achieve their governance and management objectives, i.e., to create optimal value from
information and technology by maintaining a balance amongst realizing benefits,
managing risk and balancing resources.
The COBIT framework is based on the following principles (Figure 4):
FIGURE 4: COBIT 5 PRINCIPLES
The COBIT 5 Integrator Framework
COBIT 5 is complete in enterprise coverage, providing a basis to integrate effectively
other frameworks, standards and practices used. A single overarching framework serves
as a consistent and integrated source of guidance in a non- technical, technology-
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agnostic common language.
COBIT 5 also integrates all knowledge previously dispersed over different frameworks.
ISACA has researched this key area of enterprise governance for many years and has
developed frameworks such as COBIT, Val IT, Risk IT, the Business Model for
Information Security (BMIS) and the IT Assurance Framework (ITAF) to provide
guidance and assistance to enterprises.
Stakeholder Value Driven
Enterprises exist to create value for their stakeholders, so the governance objective for
any enterprise is value creation. Value creation means realizing benefits at an optimal
resource cost whilst optimizing risk (see the picture below). Enterprises have many
stakeholders, and ‗creating value‘ means different things to each of them. Governance is
about negotiating and deciding amongst different stakeholders‘ value interests. By
consequence, the governance system must consider all stakeholders when making
benefit, resource and risk assessments and decisions. For each of these value creation
components, the question can and should be asked: for whom are the benefits, and risk,
and which resources are required?
FIGURE 5: VALUE CREATION
Business and context focus
Having a business focus means focusing on enterprise goals and objectives. This relates
to every enterprise‘s objective for benefits realization, risk optimization and resource
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optimization. COBIT 5 addresses the governance and management of information and
related technology from an enterprise-wide, end-to-end perspective, including the
activities and responsibilities of both the IT function and non-IT business functions. The
end-to-end aspect is further supported by COBIT 5 coverage of all critical business
elements, i.e. processes, organizational structures, principles & policies, culture, skills,
service capabilities. In addition, a new information model provides a simple link
between business information and the IT function, which further supports the business
focus.
The COBIT 5 Governance Approach—Enabler Based
The governance approach that forms the basis for COBIT 5 is shown in picture below
and it represents the key components of a governance system.
FIGURE 6: GOVERNANCE APPROACH
Governance enablers are the organisational resources for governance, such as
frameworks, principles, structure, processes and practices, toward which or through
which action is directed and objectives can be attained. Enablers also include the
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enterprise‘s resources, e.g., service capabilities (IT infrastructure, applications, etc.),
people and information. Given the importance of governance enablers, COBIT 5
includes a single way of looking at and dealing with enablers.
Governance can be applied to the whole enterprise, an entity, a tangible or intangible
asset, etc. That is, it is possible to define different views of the enterprise to which
governance is applied, and it is essential to define this scope of the governance system
well. The scope of COBIT 5 is an asset view—the asset being IT.
Another element is the governance roles, activities and relationships. It defines who is
involved in governance, how they are involved, what they do and how they interact,
within the scope of any governance system. In COBIT 5, clear differentiation is made
between governance and management activities in the governance and management
domains, as well as the interfacing between them and the role players that are involved.
Governance and Management-Structured
In every enterprise, multiple stakeholders have different and conflicting perceptions of
benefits, risk and resources. This has made governance and management no easier task,
hence a need for clarity on what should be done and how it should be done to meet the
stakeholder objective.
For that reason, the COBIT 5 framework makes a clear distinction between governance
and management. These two disciplines include different types of activities, require
different organisational structures and serve different purposes. Since this distinction is
key to COBIT 5, the following section contains the COBIT 5 definition of governance
and management.
―‗Governance‘ derives from the Greek verb κυβερνάω [kubernáo], meaning ‗to steer‘.
A governance system refers to all the means and mechanisms that enable multiple
stakeholders in an enterprise to have an organised say in evaluating conditions and
options; setting direction; and monitoring compliance, performance and progress
against plans, to satisfy specific enterprise objectives. Means and mechanisms include
frameworks, principles, policies, sponsorship, structures and decision mechanisms,
roles and responsibilities, processes and practices, to set direction and monitor
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compliance and performance aligned with the overall objectives. In most enterprises,
this is the responsibility of the board of directors under the leadership of the chief
executive officer (CEO) and chairman.‖
―Management: Often differentiated from governance as the distinction between being
‗committed‘ (governance) and ‗involved‘ (management), management entails the
judicious use of means (resources, people, processes, practices et al) to achieve an
identified end. It is a means or instrument by which the governance body achieves a
result or objective. Management is responsible for execution within the direction set by
the guiding body or unit. Management is about planning, building, organising and
controlling operational activities to align with the direction set by the governance
body.‖
ITIL – Information Technology Infrastructure Library
(Most of the information about ITIL are obtained from the book ―An Introductory Overview of
ITIL V3‖, 2007, The IT Service Management Forum [9])
The Information Technology Infrastructure Library (ITIL) is an Information Technology
(IT) management framework that provides practices for Information Technology
Services Management (ITSM), IT development and IT operations.
ITIL gives detailed descriptions of a number of important IT practices and provides
comprehensive checklists, tasks and procedures that any IT organization can tailor to its
needs. ITIL is published in a series of books, each of which covers an IT management
topic. The names ITIL and IT Infrastructure Library are registered trademarks of the
United Kingdom's Office of Government Commerce (OGC).
The following picture shows the structure of ITIL framework.
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FIGURE 7: ITIL DIAGRAM
ITIL best practices are gathered in a ―library‖ of five books concerning the five main
areas of IT service management:
ITIL Service Strategy: the process objective is to provide guidance on how to
design, develop and implement Service Management. It is about ensuring that IT
organizations are in position to achieve operational effectiveness and to offer
distinctive services to their customers. Its ultimate goal is to make the IT
organization think and act in a strategic manner. Processes which are part of the
ITIL V3 core discipline Service Strategy are:
o Service Portfolio Management which aims to decide on a strategy to
serve customers, and to develop the service provider's offerings and
capabilities.
o Financial Management which aims to manage the service provider's
budgeting, accounting and charging requirements.
ITIL Service Design: the process objective is to design and develop IT services.
Its scope includes the design of new services, as well as changes and
improvements to existing ones. Processes which are part of the ITIL V3 core
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discipline Service Design are:
o Service Catalogue Management, which aims to ensure that a Service
Catalogue is produced and maintained, containing accurate information
on all operational services and those being prepared to be run
operationally. Service Catalogue Management provides vital information
for all other Service Management processes: Service details, current
status and the services' interdependencies.
o Service Level Management, which aims to negotiate Service Level
Agreements with the customers and to design services in accordance with
the agreed service level targets. Service Level Management is also
responsible for ensuring that all Operational Level Agreements and
Underpinning Contracts are appropriate, and to monitor and report on
service levels.
o Risk Management, which aims to identify, assess and control risks. This
includes analyzing the value of assets to the business, identifying threats
to those assets, and evaluating how vulnerable each asset is to those
threats.
o Capacity Management, which aims to ensure that the capacity of IT
services and the IT infrastructure is able to deliver the agreed service
level targets in a cost effective and timely manner. Capacity Management
considers all resources required to deliver the IT service, and plans for
short, medium and long term business requirements.
o Availability Management, which aims to define, analyze, plan, measure
and improve all aspects of the availability of IT services. Availability
Management is responsible for ensuring that all IT infrastructure,
processes, tools, roles etc are appropriate for the agreed availability
targets.
o IT Service Continuity Management, which aims to manage risks that
could seriously impact IT services. ITSCM ensures that the IT service
provider can always provide minimum agreed Service Levels, by
reducing the risk from disaster events to an acceptable level and planning
for the recovery of IT services. ITSCM should be designed to support
Business Continuity Management.
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o IT Security Management, which aims to ensure the confidentiality,
integrity and availability of an organization's information, data and IT
services. Information Security Management usually forms part of an
organizational approach to security management which has a wider
scope than the IT Service Provider.
o Compliance Management, which aims to ensure IT services, processes
and systems comply with enterprise policies and legal requirements.
o IT Architecture Management, that aims to define a blueprint for the
future development of the technological landscape, taking into account
the service strategy and newly available technologies.
o Supplier Management, that aims to ensure that all contracts with
suppliers support the needs of the business, and that all suppliers meet
their contractual commitments.
ITIL Service Transition: The process objective is to build and deploy IT services.
It also makes sure that changes to services and Service Management processes
are carried out in a coordinated way. Processes which are part of the ITIL V3
core discipline Service Design are:
o Change Management, which aims to control the lifecycle of all Changes.
The primary objective of Change Management is to enable beneficial
Changes to be made, with minimum disruption to IT services.
o Project Management (Transition Planning and Support), which aims to
plan and coordinate the resources to deploy a major Release within the
predicted cost, time and quality estimates.
o Release and Deployment Management which aims to plan, schedule and
control the movement of releases to test and live environments. The
primary goal of Release Management is to ensure that the integrity of the
live environment is protected and that the correct components are
released.
o Service Validation and Testing, which aims to ensure that deployed
Releases and the resulting services meet customer expectations, and to
verify that IT operations is able to support the new service.
o Application Development and Customization, which aims to make
available applications and systems which provide the required
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functionality for IT services. This process includes the development and
maintenance of custom applications as well as the customization of
products from software vendors.
o Service Asset and Configuration Management, which aims to maintain
information about Configuration Items required to deliver an IT service,
including their relationships.
o Knowledge Management, which aims to gather, analyze, store and share
knowledge and information within an organization. The primary purpose
of Knowledge Management is to improve efficiency by reducing the need
to rediscover knowledge.
ITIL Service Operation: Process objective is to make sure that IT services are
delivered effectively and efficiently. This includes fulfilling user requests,
resolving service failures, fixing problems, as well as carrying out routine
operational tasks. Processes which are part of the ITIL V3 core discipline
Service Design are:
o Event Management, which aims to filter and categorize Events and to
decide on appropriate actions. Event Management is one of the main
activities of Service Operations.
o Incident Management, which aims to manage the lifecycle of all
Incidents. The primary objective of Incident Management is to return the
IT service to users as quickly as possible.
o Request Fulfillment, which aims to fulfill Service Requests, which in most
cases are minor (standard) Changes (e.g. requests to change a password)
or requests for information.
o Access Management, which aims to grant authorized users the right to
use a service, while preventing access to non-authorized users. The
Access Management processes essentially executes policies defined in IT
Security Management. Access Management is sometimes also referred to
as Rights Management or Identity Management.
o Problem Management, which aims to manage the lifecycle of all
Problems. The primary objectives of Problem Management are to prevent
Incidents from happening, and to minimize the impact of incidents that
cannot be prevented. Proactive Problem Management analyses Incident
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Records, and uses data collected by other IT Service Management
processes to identify trends or significant Problems.
o IT Operations Management, which aims to monitor and control the IT
services and IT infrastructure. The process IT Operations Management
executes day-to-day routine tasks related to the operation of
infrastructure components and applications. This includes job
scheduling, backup and restore activities, print and output management,
and routine maintenance.
o IT Facilities Management, which aims to manage the physical
environment where the IT infrastructure is located. Facilities
Management includes all aspects of managing the physical environment,
for example power and cooling, building access management, and
environmental monitoring.
ITIL Continual Service Improvement (CSI): process objective is to use methods
from quality management in order to learn from past successes and failures. The
CSI process implements a closed-loop feedback system as specified in ISO 20000
as a means to continually improve the effectiveness and efficiency of IT services
and processes. Processes which are part of the ITIL V3 core discipline Service
Design are:
o Service Evaluation, which aims to evaluate service quality on a regular
basis. This includes identifying areas where the targeted service levels
are not reached, and holding regular talks with business to make sure
that the agreed service levels are still in line with business needs.
o Process Evaluation, which aims to evaluate processes on a regular basis.
This includes identifying areas where the targeted process metrics are not
reached, and holding regular benchmarking, audits, maturity assessments
and reviews.
o Definition of CSI Initiatives, which aims to define specific initiatives
aimed at improving services and processes, based on the results of
service and process evaluation. The resulting initiatives are either
internal initiatives pursued by the service provider on his own behalf, or
initiatives which require the customer‘s cooperation.
o CSI Monitoring, which aims to verify if improvement initiatives are
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proceeding according to plan, and to introduce corrective measures
where necessary.
COBIT and ITIL have areas of overlap, in which the same processes are analyzed from
different points of view, nor could it be otherwise, given that both frameworks are
those that affect the performance of an IT infrastructure.
On one hand, the model COBIT covers the processes of IT Service Management (IT
service management), on the other, best practices of ITIL provide tools and
guidance on how to meet the control objectives specified COBIT.
1.4 Enterprise Architecture
The growing complexity of IT in organizations is demanding. A large telecommunication
company may run over 5oo software applications, where a Business to Business CRM
count 1. Large organizations average 100 – 300 software applications. Each application
serves business processes, that in turn serve organization units in a many to many
relation.
With these figures, and a continuous pressure on costs and on innovation, IT planning
should be engineered and an overall vision that connects business processes that use
software applications, the interdependencies among software applications, information
architecture and execution architectures where applications are deployed should be
explicitly drawn and assessed. This is precisely the purpose of enterprise architecture.
We here concentrate in TOGAF, that is the most famous Enterprise Architecture
Framework. According to The Open Group Architecture Framework [11], an
architecture framework is a foundational structure, or set of structures, which can be
used for developing a broad range of different architectures. It should describe a
method for designing a target state of the enterprise in terms of a set of building blocks,
and for showing how the building blocks fit together. It should contain a set of tools and
provide a common vocabulary. It should also include a list of recommended standards
and compliant products that can be used to implement the building blocks.
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ISO/IEC 42010: 2007 defines ‗‗architecture‘‘ as: ‗‗The fundamental organization of a
system, embodied in its components, their relationships to each other and the
environment, and the principles governing its design and evolution.‘‘
According to The Open Group Business Executive‘s Guide to IT Architecture: ‗‗An
effective enterprise architecture is critical to business survival and success and is the
indispensable means to achieving competitive advantage through IT.‘‘
According to The Open Group Architecture Framework, ‗‗enterprise‘‘ as any collection
of organizations that has a common set of goals. For example, an enterprise could be a
government agency, a whole corporation, a division of a corporation, a single
department, or a chain of geographically distant organizations linked together by
common ownership.
The term ‗‗enterprise‘‘ in the context of ‗‗enterprise architecture‘‘ can be used to denote
both an entire enterprise — encompassing all of its information and technology services,
processes, and infrastructure — and a specific domain within the enterprise. In both
cases, the architecture crosses multiple systems, and multiple functional groups within
the enterprise [11].
In Finkelstein‗s work [10], Enterprise Architecture is the solution to let enterprises be
able to change rapidly, as the new rate of technological change increasing, together
with budget and competitive pressures require. The structures, processes and systems,
without an integrated management, are inflexible and so incapable of rapid change.
More computer hardware, or software, or packages, or staff, or outsourcing are not the
solution.
According to The Open Group [11], two of the key elements of any enterprise
architecture framework are:
A definition of the deliverables that the architecting activity should produce
A description of the method by which this should be done
With some exceptions, the majority of enterprise architecture frameworks focus on
the first of these — the specific set of deliverables — and are relatively silent about
the methods to be used to generate them.
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1.4.1 Early Architecture Frameworks: Zachman
According to Finkelstein [10], Zachman, in 1980s, saw similarities between the
construction of buildings, airplanes and the information systems. He built a six-column
framework for the Enterprise Architecture, that is shown in Figure 8.
FIGURE 8: ZACHMAN FRAMEWORK
Zachman points out that for all things we consider in business or day-to-day life –
whether for buildings, for planes or for complex enterprise systems – there are six
independent variables. These are based on Primitive Interrogatives: What, How, Where.
Also, further three columns -WHO, WHEN, WHY- complete Zachman’s Framework.
1.4.2 Other early Architecture Frameworks
"Technical Architecture Framework for Information Management" (TAFIM) is also an
early implementation. The first draft was completed in 1991 with TAFIM Technical
Reference Model (TAFIM TRM). This model was intended for open systems and new
technologies available in the commercial market, to develop a DoD (Department of
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Defense)-wide application. TAFIM TRM originally derived from Technical Architecture
Framework for Information Management (TAFIM), which in turn derived from a
standard "to construct an information processing system, including consumers, system
integrators, application developers, system providers, and procurement agencies" (The
Open Group, 2008) [11].
In recent years, it is clear that a key benefit of Enterprise architecture is to support
decision making in changing businesses. An Enterprise Architecture puts together
business models (e.g. process models, organizational charts, etc.) and technical models
(e.g. systems architectures, data models, state diagrams, etc.), and it makes possible to
trace the impact of organizational change on the systems, and also the business impact
of changes to the systems.
Frameworks as DoDAF (the US Department of Defense Architecture Framework) or
MODAF (the UK Ministry of Defense Architecture Framework) have adopted a standard
meta model that defines critical architectural elements and the their dependencies.
Applications based on these models can then query the underlying architectural
information, providing a mechanism for tracing strategies to organizational and
technological impacts. Key features of a framework are:
To ensure completeness (checklists on all aspects of a problem);
To be an "accelerator" because adapting a framework is faster than drawing ex
novo.
1.4.3 TOGAF – The Open Group Architecture Framework
(Most of the information about TOGAF are obtained from the book “TOGAF – The Open Group
Architecture Framework – Version 9”, 2009, The Open Group)
“TOGAF (The Open Group Architecture Framework) is a generic framework, to be used
in a wide variety of environments and that provides a flexible and extensible content
framework that underpins a set of generic architecture deliverables. TOGAF may be
used either in its own right, with the generic deliverables that it describes; or else these
deliverables may be replaced or extended by a more specific set, defined in any other
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framework that the architect considers relevant” [11].
Several studies related to enterprise architecture show how this framework can be
adapted to various contexts; among contributions in the literature, for example, can be
considered Winter, Buckl, Matthes and Schweda (Winter K., Buckl S., Matthes F.,
Schweda C.M, 2010) [12] work. The authors describe TOGAF as, probably, the most well-
known framework for EA management and consider the ability of TOGAF to satisfy all
requests in terms of EA management; in particular they draw up a list of "hypothesis"
that, in the literature, seem to be essential to optimize the management of EA. The
following list describes the assumptions identified by the authors and the adaptability
that presents TOGAF in each of them.
Hypothesis 1: The EA management function consists of different activities, which
are reiterated at defined points in time. TOGAF, for instance, is described in a
document comprising over 700 pages and the ADM as a part of TOGAF is
described on about 160 pages which contain a process model with phases or
activities in a defined order.
Hypothesis 2: Defining roles and responsibilities in the field of EA management is
important. Roles, responsibilities, capabilities, and the placement of the EA
department in the organizational structure are described in TOGAF’s
Architecture Capability Framework (The Open Group, 2009).
Hypothesis 3: Scope, goals, and architectural principles of EA management are
defined and updated. TOGAF seems to be one of the few framework in which
defining and updating architecture principles is explicitly considered.
Hypothesis 4: Adapting the EA management approach to company-specific needs
is of low importance. The authors show that adapting an approach to company-
specific needs is neglected in all investigated EA management approaches except
TOGAF, which only states that the ADM should be adapted without specifying
how.
Hypothesis 5: EA management tool(s) are used for capturing and visualizing EA
information. The usage of EA management tools is recommended by all of the
investigated EA management approaches.
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Hypothesis 6: While documenting and developing future states of the EA, there is
a distinction made between planned (middle-term) states and target (long-term)
states of the EA. TOGAF, for instance, differentiates between baseline
architecture, target architecture and architecture vision.
Hypothesis 7: There is a close collaboration between EA management and other
enterprise-level management functions. TOGAF (The Open Group, 2009) suggests
relationships between portfolio/project management, operations management,
business planning, solution development, and EA management.
Hypothesis 8: The performance of the EA management function typically is not
measured. The Open Group (2009), instead, suggests defining and measuring key
performance indicators of the EA function.
According to Buckl, Ernst, Matthes, Ramacher and Schweda [13], the design of an
Enterprise Architecture (EA) management function for an enterprise is no easy task.
Various frameworks exist as well as EA management tools, which promise to deliver
guidance for performing EA management. Nevertheless, the approaches presented by
them stay either on a level too abstract to provide realization support or are far too
generic, neglecting enterprise-specific EA related concerns. In their article, the authors
discuss the architecture framework of The Open Group (TOGAF) and show how the
generic development steps described in the ADM can be, in case, complemented by a
pattern based approach to EA management providing guidance for addressing specific
EA related concerns with step-by-step methodologies as well as with corresponding
viewpoints and information models.
1.4.3.1 TOGAF Features
TOGAF [11] deals with four architectures that are commonly accepted as subsets of an
overall enterprise architecture:
Business Architecture, which defines the business strategy, governance,
organization, and key business processes.
Data Architecture, which describes the structure of an organization’s logical and
physical data assets and data management resources.
Application Architecture, which provides a blueprint for the individual
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application systems to be deployed, their interactions, and their relationships to
the core business processes of the organization.
Technology Architecture, which describes the logical software and hardware
capabilities that are required to support the deployment of business, data, and
application services. This includes IT infrastructure, middleware, networks,
communications, processing, standards, etc.
FIGURE 9: TOGAF OVERVIEW
The Architecture Development Model: ADM, describes a process for deriving an
organization specific enterprise architecture that addresses business
requirements.
ADM Guidelines and Techniques: it is a set of guidelines and techniques to
support ADM.
Architecture Content Framework: it provides a detailed model of architectural
work products, including deliverables, artifacts within deliverables.
Enterprise Continuum: It provides a model for structuring a virtual repository.
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Architectural Reference Models
Architectural Capability Framework: it is a set of resources, guidelines,
templates, background information provided to help the architect.
1.4.3.2 TOGAF and the Case Study
The already discussed adaptability of the framework, makes it suitable for those
companies in banking sector and, therefore, for our case study. Among different
sections of TOGAF, previously introduced, the part concerning ADM will be described in
detail as it will be used to conduct the work in the case study.
ADM – Architecture Development Method
The TOGAF ADM [11] is the result of continuous contributions from a large number of
architecture practitioners. It describes a method for developing an enterprise
architecture, and forms the core of TOGAF.
According to The Open Group, the TOGAF Architecture Development Method (ADM)
provides a tested and repeatable process for developing architectures. The ADM
includes establishing an architecture framework, developing architecture content,
transitioning, and governing the realization of architectures.
All of these activities are carried out within an iterative cycle of continuous architecture
definition and realization that allows organizations to transform their enterprises in a
controlled manner in response to business goals and opportunities.
Figure 10 shows the ADM cycle.
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FIGURE 10: TOGAF ADM
Phases within the ADM are as follows:
1. The Preliminary Phase, which describes the preparation and initiation activities
required to prepare to meet the business directive for a new enterprise
architecture, including the definition of an Organization-Specific Architecture
framework and the definition of principles.
2. Phase A: Architecture Vision, which describes the initial phase of an architecture
development cycle. It includes information about defining the scope, identifying
the stakeholders, creating the Architecture Vision, and obtaining approvals.
3. Phase B: Business Architecture, which describes the development of a Business
Architecture to support an agreed Architecture Vision.
4. Phase C: Information Systems Architectures, which describes the development of
Information Systems Architectures for an architecture project, including the
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development of Data and Application Architectures.
5. Phase D: Technology Architecture, which describes the development of the
Technology Architecture for an architecture project.
6. Phase E: Opportunities & Solutions, which conducts initial implementation
planning and the identification of delivery vehicles for the architecture defined in
the previous phases.
7. Phase F: Migration Planning, which addresses the formulation of a set of
detailed sequence of transition architectures with a supporting Implementation
and Migration Plan.
8. Phase G: Implementation Governance, which provides an architectural oversight
of the implementation.
9. Phase H: Architecture Change Management, which establishes procedures for
managing change to the new architecture.
10. Requirements Management, which examines the process of managing
architecture requirements throughout the ADM.
In Chapter 3, that describes the Case Study, the ADM will be reprocessed, not only in
theory, but discussing the actual activities carried out to complete the project.
For completeness in the description of the framework the remaining sections of TOGAF
are described in paragraphs below.
Deliverables, Artifacts, and Building Blocks
The objective of architects which execute the ADM, is to produce a number of outputs
as a result of their efforts. Examples of output are:
process flows
architectural requirements
project plans
project compliance assessments, etc.
The TOGAF Architecture Content Framework [11] provides a structural model for
architectural content that allows work products to be consistently defined and
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structured.
The Architecture Content Framework divides architectural work products into three
categories, which are explained below, following The Open Group description:
A deliverable is a work product that is contractually specified and in turn for
normally reviewed, agreed, and signed off by the stakeholders. Deliverables
represent the output of projects and those deliverables that are in
documentation form will typically be archived at completion of a project, or
transitioned into an Architecture Repository as a reference model, standard, or
snapshot of the Architecture Landscape at a point in time.
An artifact is a more granular architectural work product that describes an
architecture from a specific viewpoint. Examples include a network diagram, a
server specification, a use-case specification, a list of architectural requirements,
and a business interaction matrix. Artifacts are generally classified as catalogs
(lists of things), matrices (showing relationships between things), and diagrams
(pictures of things). An architectural deliverable may contain many artifacts and
artifacts will form the content of the Architecture Repository.
A building block represents a (potentially re-usable) component of business, IT,
or architectural capability that can be combined with other building blocks to
deliver architectures and solutions. Building blocks can be defined at various
levels of detail, depending on what stage of architecture development has been
reached. For instance, at an early stage, a building block can simply consist of a
name or an outline description. Later on, a building block may be decomposed
into multiple supporting building blocks and may be accompanied by a full
specification. Building blocks can relate to ‘‘architectures’’ or ‘‘solutions’’.
o Architecture Building Blocks (ABBs) typically describe required capability
and shape the specification of Solution Building Blocks (SBBs). For
example, a customer ser vices capability may be required within an
enterprise, supported by many SBBs, such as processes, data, and
application software.
o Solution Building Blocks (SBBs) represent components that will be used to
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implement the required capability. For example, a network is a building
block that can be described through complementary artifacts and then
put to use to realize solutions for the enterprise.
Figure 11 shows the relationships between deliverables, artifacts, and building blocks.
FIGURE 11: RELATIONSHIPS BETWEEN DELIVERABLES, ARTIFACTS AND BUILDING BLOCKS
Enterprise Continuum
The objective of the Enterprise Continuum [11], is to set the broader context for an
architect and to explain how generic solutions can be leveraged and specialized in order
to support the requirements of an individual organization. The Enterprise Continuum is
a view of the Architecture Repository that provides methods for classifying architecture
and solution artifacts as they evolve from generic Foundation Architectures to
Organization-Specific Architectures. The Enterprise Continuum comprises two
complementary concepts: the Architecture Continuum and the Solutions Continuum.
The Figure 12 shows of the structure and context of the Enterprise Continuum.
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FIGURE 12: ENTERPRISE CONTINUUM
Architecture Repository
The concept of an Architecture Repository is to support the Enterprise Continuum.
The Architecture Repository can be used to store different classes of architectural
output at different levels of abstraction, created by the ADM.
By means of the Enterprise Continuum and Architecture Repository, architects are
encouraged to leverage all other relevant architectural resources and assets in
developing an Organization- Specific Architecture.
In this context, the TOGAF ADM can be regarded as describing a process lifecycle that
operates at multiple levels within the organization, operating within a holistic
governance framework and producing aligned outputs that reside in an Architecture
Repository. The Enterprise Continuum provides a valuable context for understanding
architectural models: it shows building blocks and their relationships to each other, and
the constraints and requirements on a cycle of architecture development.
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Figure 13 shows the structure of the TOGAF Architecture Repository.
FIGURE 13: ARCHITECTURE REPOSITORY
The major components within an Architecture Repository [11] are:
The Architecture Metamodel, which describes the organizationally tailored
application of an architecture framework, including a metamodel for
architecture content.
The Architecture Capability, which defines the parameters, structures, and
processes that support governance of the Architecture Repository.
The Architecture Landscape, which shows an architectural view of the building
blocks that are in use within the organization today (e.g., a list of the live
applications). The landscape is likely to exist at multiple levels of abstraction to
suit different architecture objectives.
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The Standards Information Base (SIB), which captures the standards with which
new architectures must comply, which may include industry standards, selected
products and services from suppliers, or shared services already deployed within
the organization.
The Reference Library, which provides guidelines, templates, patterns, and other
forms of reference material that can be leveraged in order to accelerate the
creation of new architectures for the enterprise.
The Governance Log, which provides a record of governance activity across the
enterprise.
Establishing the Architecture Capability as an Operational Entity
According to The Open Group, it is increasingly recognized that a successful enterprise
architecture practice must sit on a firm operational footing. In effect, an enterprise
architecture practice must be run like any other operational unit within a business. To
this end, and over and above the core processes defined within the ADM, an enterprise
architecture practice should establish capabilities in the following areas:
Financial Management
Performance Management
Service Management
Risk Management
Resource Management
Communications and Stakeholder Management
Quality Management
Supplier Management
Configuration Management
Environment Management
Central to the notion of operating an ongoing architecture is the execution of well-
defined and effective governance, whereby all architecturally significant activity is
controlled and aligned within a single framework.
As governance has become an increasingly visible requirement for organizational
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management, the inclusion of governance within TOGAF aligns the framework with
current business best practice and also ensures a level of visibility, guidance, and control
that will support all architecture stakeholder requirements and obligations.
The benefits of architecture governance include:
Increased transparency of accountability, and informed delegation of authority
Controlled risk management
Protection of the existing asset base through maximizing re-use of existing
architectural components.
Proactive control, monitoring, and management mechanisms
Process, concept, and component re-use across all organizational business units
Value creation through monitoring, measuring, evaluation, and feedback
Increased visibility supporting internal processes and external parties’
requirements; in particular, increased visibility of decision-making at lower levels
ensures oversight at an appropriate level within the enterprise of decisions that
may have far-reaching strategic consequences for the organization
Greater shareholder value; in particular, enterprise architecture increasingly
represents the core intellectual property of the enterprise.
Integrates with existing processes and methodologies and complements
functionality by adding control capabilities.
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2 – Banking : ICT Management
2.1 Introduction
The aim of this chapter is to analyze how the ICT is managed in banks. The discussion is
divided into three parts:
1. The first paragraph illustrates the approach of Systematic Literature Review (SLR)
2. The second paragraph describes the execution of the SLR
3. The third paragraph introduces some context information about the case study
that concerns Factoring.
2.2 Systematic Literature Review
The SLR method originated from Biolchini et al. work [14], which applied a defined
protocol template and a set of guidelines to a Literature Review in medical research.
Afterwards, Kitchenham and Charters [15] and Kitchenham et al. [16] works, proved
that this set of guidelines is suitable also for SLR in Software Engineering.
Reviews of research literature are conducted for a variety of purposes. They include
providing a theoretical background for subsequent research; learning the breadth of
research on a topic of interest; or answering practical questions by understanding what
existing research has to say on the matter.
A rigorous stand-alone literature review, according to Fink’s definition [17], must be
systematic in following a methodological approach, explicit in explaining the procedures
by which it was conducted, comprehensive in its scope of including all relevant material,
and hence reproducible by others who would follow the same approach in reviewing
the topic.
A detailed methodological approach is necessary in any kind of literature review. We
can distinguish three general kinds of literature reviews.
“Theoretical Background”: this is the section of a journal article that gives the
theoretical foundations and context of the research question, and helps to bring
the research question into focus.
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“Thesis Literature Review”: this is the literature review described in a chapter of
a graduate thesis to introduce the dissertation subject and its “State of Art”.
“Stand-alone Literature Review”: this is a journal-length article whose sole
purpose is to review the literature in a field, without any primary data (that is,
new or original) collected or analyzed. At most, results from the reviewed studies
might be analyzed as the data for the literature review; however, a stand-alone
literature review article does not collect or analyze any primary data. When a
stand-alone literature review is conducted using a systematic, rigorous standard,
it is called a systematic literature review (SLR).
All kinds of literature review presented are performed through the following activities:
Question formulation: in this step the research objectives must be clearly
defined;
Source selection: the objective of this step is to select the sources where the
studies will be extracted from;
Studies selection: once the sources are defined, it is necessary to describe the
criteria for studies selection and evaluation;
Information extraction: once primary studies are selected the extraction criteria
and templates are described for the extraction of the relevant information from
the studies;
Results Summarization: this section aims to present the data resulting from the
selected studies considering them as a whole.
2.2.1 Question Formulation
This step is composed by two activities:
Question Focus: defines the SLR focus and objectives.
Quality and Amplitude: defines the syntax of the research question (the context
in which the review is applied and the question the study must answer) and its
semantics specificity (or question range) described by:
o Problem: defines the systematic review target, describing briefly the
research context;
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o Question: research question to be answered by the SLR. It is important to
highlight that, if the review context is too wide, it may be necessary to
decompose the research question in secondary questions to narrow the
research target;
o Keywords and Synonyms: list of the main terms that compose the
research question. These terms will be used during the review execution;
o Intervention: what is going to be observed in the context of the planned
systematic review;
o Control: baseline or initial data set that the researcher already possess;
o Effect: types of results expected in the end of the systematic review;
o Application: roles, professional types or application areas that will benefit
from the systematic review results;
o Experimental Design: describes how meta-analysis will be conducted,
defining which statistical analysis methods will be applied on the
collected data to interpret the results.
2.2.2 Source Selection
This step is composed by four activities:
1. Sources Selection Criteria Definition: defines which criteria are going to be used
to evaluate studies sources, e.g. which characteristics make these sources
candidate to be included in the review execution;
2. Studies Languages: it defines the languages in which obtained primary studies
must be written;
3. Sources Identification: this item aims to select sources for the review execution;
a. Sources Search Methods: describes how to execute the search for
primary studies (for instance, manual search, search through web search
engines).
b. Search String: case one of the selected search methods includes using
keywords in search engines it is necessary to create search strings to be
run at such engines. This item presents a set of logical expressions that
combine keyword and its synonymous arranged in a way that highest
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amount of relevant studies is obtained from search engines;
c. Sources List: initial source list in which the systematic review execution
will be run.
4. Sources Selection after Evaluation: which element of the initial sources list must
be included in the final sources list.
2.2.3 Studies Selection
Once the sources are selected we must describe the process and the criteria for studies
selection and evaluation. This step is composed by two activities:
1. Studies Definition: this item defines the way studies will be selected
a. Studies Inclusion and Exclusion Criteria Definition: presents the criteria by
which studies will be evaluated to decide if they must be selected or not
in the context of the systematic review;
b. Studies Types Definition: it defines the type of primary studies that are
going to be selected during the systematic review execution (e.g.
qualitative or quantitative studies, observation, feasibility or
characterization studies);
c. Procedures for Studies Selection: it describes the procedure by which the
studies will be obtained and evaluated according to exclusion and
inclusion criteria.
2. Selection Execution: this section aims to register the primary studies selection
process, reporting the obtained studies and the results of their evaluation
a. Initial Studies Selection: the search is executed and all the obtained
studies must be listed for further evaluation;
b. Studies Quality Evaluation: the procedures for studies selection are
applied to all obtained articles in order to verify if the studies fit the
inclusion and exclusion criteria. Moreover, it must be checked if the
studies belong to the types selected during the planning phase. The
objective of this section is to register the results of this evaluation.
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2.2.4 Information Extraction
This step is composed by three activities:
1. Information Inclusion and Exclusion Criteria Definition: criteria by which the
information obtained from studies must be evaluated;
2. Data Extraction Forms: to standardize the way information will be represented,
the researcher must create forms to collect data from the selected studies.
These forms may vary depending on the systematic review’s objective and
context and could base on a classification framework;
3. Extraction Execution: two kinds of results can be extracted from the selected
studies:
a. Objective Results Extraction: objective results are those that can be
extracted directly from the selected studies. Such results must be
organized as follows:
i. Study Identification: studies identification includes the publication
title, its authors and the source from which it was obtained
ii. Study Methodology: methods used to conduct the study
iii. Study Results: effect obtained through the study execution
iv. Study Problems: study limitations found by the article’s authors
b. Subjective Results Extraction: subjective results are those that cannot be
extracted directly from the selected studies.
2.2.5 Result Summarization
This step aims to present the data resulting from the selected studies and it is composed
by the following activities:
1. Results Statistical Calculus: statistical methods chosen in the “Experimental
Design” section are applied to analyze data and to understand the complexity
relations between obtained results;
2. Results Presentation in Tables: the results obtained from the systematic review
must be displayed in tables to facilitate analysis. Tables allow to classify studies
according to different criteria and to organize them under different perspectives.
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3. Plotting: a data plotting strategy may be chosen to present the results;
4. Final Comments: this item presents reviewers final comments about the SLR
results.
2.3 Execution of the SLR
2.3.1 Question Formulation
The main purpose of this section is to identify all initiatives and experiences in Service
Engineering related to the introduction of ICT in banking field. Following the SLR
protocol, the first step is to define the Research Question (RQ): “What is the current and
effective emphasis on management of ICT in companies included in the banking
sector?”
From SLR, we expect:
1- State-of-art on ICT management
2- Identification of gaps in current research
3- Characteristics that facilitate the introduction of Framework for ICT
management and/or Enterprise Systems in banking.
2.3.2 Source Selection
In this section we identify the most relevant types of sources to conduct the Literature
Review. Among different types of publications, we may consider:
Journals, which are important for the research because they show a complete,
public set of works referred to a particular subject;
Conferences, which are important for the research as they allow us to include in
the study also the most recent and update works, perhaps not yet published on
journals, or works related to authors who, usually, don’t publish on journals.
Books, divided into “Collected”, “Text Books”, “Essays”.
Web sites.
For this study, we did not consider Web Sites.
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Journals
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Articles Published by Universities
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Conferences
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Text Books
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Thus, the second phase of the SLR proceeds with the search of articles on the English-
based web search engine:
IEEE Computer Society ( www.computer.org )
Google Scholar (scholar.google.it)
ISI Web Of Knowledge (www.isiknowledge.com)
These sources are appropriate for the review in question since contains the work
published in journals, conferences and workshops which are of recognized quality by the
research community. About search string criteria, particularly, the following keywords
were used:
Enterprise Architecture in banking;
ICT Management in banking;
Information Systems in banks;
Enterprise Architecture Framework for banking sector;
Business and Information Strategy alignment.
2.3.3 Studies Selection
After defining the sources, now must be describe the process used to select studies that
were linked to the RQ posed at the beginning.
First of all it was necessary to define a basic inclusion and exclusion criteria based on the
research question: initially the selection criteria were interpreted liberally and clear
exclusions were only made with regard to title, abstract and introduction, moreover
were only included studies which publication year is between 1980 to 2011.
Furthermore, in this SLR the following “study type” are considered:
Case Study: an exhaustive investigation study of a single individual, group,
incident, community or enterprise;
Theoretical: a study which propose a theoretical model. A Theoretical study may
include guidelines, introductions to a particular subject or just theoretical
consideration on the research issue;
Instrument Development: a study used typically to present a new methodology,
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approach or a modeling language;
Literature Review: a study which collects information (definitions, models, etc...)
on a particular topic through the analysis of the scientific literature;
Multiple: this last category is for all those works that are not directly classifiable
into a single and unique category.
Following the methodology described before, a three stages selection was used:
1. In the first stage, the search string must be run on the selected source. An initial
set of studies was obtained from the reading of the title, abstract and
introduction of all the studies selected according to the inclusion and exclusion
criteria.
2. In the second stage, the exclusion criteria were based on some practical issues:
short papers, non-English papers, non-International Workshop papers.
3. In the third stage, the selection process was based on the compliance of the
study contents to the RQs.
2.3.4 Information Extraction
The purpose of this section is to extract from studies all kind of initiative (techniques,
methods, models and strategies) useful to discuss the ICT management in banking
sector.
The rating was extracted thanks to a General kind of classification, that provides an
overview about the trends of the research field analyzing several dimensions (an
example is shown in Table 1):
o Year: Ranges from 1980 to 2011
o Publication Type:
Journal: all those articles presented on periodical publications or
any other form which is not related to conferences;
Conference: all those articles presented at Conferences,
Symposiums and Congresses that provide an important channel
for exchange of information between researchers;
o Research Method or study type;
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o Geographical Area, intended as the Nation of the reference university.
TABLE 1: EXAMPLE
Paper ID Author (s) Year Geographical Area Research
Method
EA-001 Smith, White 2006 America Case Study
ICT-001 Smith 2008 America Case Study
Bank-001 White 2009 America Case Study
2.3.5 Result Summarization
In this section we will introduce general characteristics of all works and studies
analyzed. First of all we will give an indication of the distribution of studies over the
years that have to fall in our research.
Years #Publications
1980-1989 1
1990- 1999 11
2000- Today 26
TABLE 2: DISTRIBUTION OF # PUBLICATIONS OVER YEARS
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FIGURE 14: DISTRIBUTION OF # PUBLICATIONS OVER YEARS
As shown in the previous Table, we can notice a large increase in the number of
publications in the last years. This fact demonstrates the raising interest in the topic.
In the following tables we will describe the distribution of the number of publications
over Study Types presented in “Studies Selection” section.
TABLE 3: #PUBLICATIONS OVER STUDY TYPE
Type #Publications
Case Study 8
Theoretical 12
Instrum. Developement 8
Literature Review 3
Multiple 7
0
5
10
15
20
25
30
1980 - 1989 1990 - 1999 2000 - Today
# Publications
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FIGURE 15: #PUBLICATIONS OVER STUDY TYPE
Although we observed a variety of research methods, the theoretical was the most
common. The second is the case study, that we consider very important because it
provided the basis for applying the methodology to our examples.
From the Geographical point of view, we can compare the European and American
researchers contribution.
TABLE 4: #PUBLICATIONS OVER GEOGRAPHICAL AREA
Geographical Area # Publications
Europe 25
America 11
Others 2
0
2
4
6
8
10
12
14
# Publications
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FIGURE 16: #PUBLICATIONS OVER GEOGRAPHICAL AREA
In Table 4, where the distribution of publications over geographical areas is described,
we can notice that the contribution of Europeans researchers is at least double than
American one.
2.3.6 Discussion
This section represents the “Final comments” of the Results Summarization step. Its
purpose is to describe the characteristics of papers analyzed turning to a review of their
findings.
2.3.6.1 ICT in banking sector
The period from 1998 to 2003 was characterized by strong growth in both quantitative
and qualitative investment in technology in the banking sector, aimed at the progressive
automation of new business areas and the increasing adoption of innovative
technologies.
Since 2003 the trend has stopped. In the medium term, in front of a generally
decreasing IT spending, banking experienced a strong growth in software and voice
services. Banks are thus strengthening the role and importance of the IT in corporate
strategies as a lever to increase productivity and generate value.
66%
29%
5%
Europe
America
Others
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Starting from the current situation of ICT investment in banks and from the analysis of a
number of business realities, it appeared that the bank strategies should be articulated
on key points (Gandolfi, Ruozi, 2005) [18]:
a unified vision for the medium to long term information system;
a consolidation of process technologies aligned to corporate strategies;
management ability to understand the interdependence of ICT strategies and
competitive advantage;
a qualification and rationalization of investments in ICT.
The dynamism and uncertainty that characterize the activities of the sector in recent
years, induce banks to constantly review and develop their organization structures,
scope and strategies: it is necessary to improve performances in all dimensions, shorten
time to market, and increase the ability to provide personalized service.
In this context, according to Gandolfi and Ruozi [18], it is necessary to initiate an
evolutionary process to ensure that ICTs reach and consolidate a critical role in business
processes and decision-making. In fact, banks had been using information technology in
ancillary tasks, e.g. to process information related to deposits and loans, and
communication technology only to transmit information and process payments. The
organizational implication is represented by the streamlining and simplification of the
production work in order to reduce the unit cost of production. The other implication is
related to the size of the activity, especially in reference to the volume of deposits and
immediate payment instruments. Technology has thus helped the development of new
and more sophisticated financial products, as well as the introduction of distribution
channels. It is now, that is, important not only to streamline production lowering costs,
but also to produce timely products and services, as and where they are required by the
market (on demand). In addition, new technologies have seen a wide use for a more
structured and efficient risk assessment. Finally, the development of low cost
technologies, together with the process of deregulation, intensified competition in the
banking sector.
According to Gandolfi and De Laurentis [19], it is necessary to better align strategy,
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organization and ICT; in particular, the new role of IT cannot rely on the sole technology,
because it is the whole system that is in the value chain of industries whose product is
information intensive. The "role of information systems" is still in early stages and the
governance of systems is still poorly defined (Gandolfi, De Laurentis, 2008) [19].
According to Frigerio and Rajola (Frigerio, Rajola, 2011) [20], the core of innovation in
banking and financial system should be placed definitely on information technology,
that gives content and drivers of innovation. IT, however, is not just efficiency in
processes and organization. The business plans and strategic objectives of banks require
to be constantly supported by technological choices, which increasingly support the
business lines.
According to Frigerio and Rajola [20], the fact that, nowadays, ICT investments are
increasingly critical and strategic and require more attention in their management,
means that, instead of using information technology with the goal of reducing costs and
increasing productivity, companies should assess technologies that support the business
by the same decision-making process of standard investment assessment. An important
aspect of IT governance is represented by the mode of assessing the contribution to
company performance. In this perspective the analysis of business performances is
crucial (Frigerio, Rajola, 2008).
According to Craig and Tinaikar (Craig D, Tinaikar R, 2006) [21] most companies today
manage information technology looking at short-term performance rather than long-
term health. But organizations that focus only on stay-in-the-race or win-the-race
priorities miss out on IT investments that could help deliver a strategic competitive
advantage. By distinguishing among different IT investments, companies can use
technology for more than simply attaining competitive parity; this approach can help
deliver significant top-line growth and market advantages.
Successful organizations tend, in fact, to divide investments into three categories (Craig
D., Tinaikar R., 2006) [21]:
Scale IT investments: Such stay-in-the-race projects involve the most familiar
applications of information technology—those that are necessary to compete in
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a market and must be managed for cost. The IT priorities in this category should
be to reduce operational costs and to ensure service and quality levels, but these
investments alone will not create a competitive advantage. By automating and
consolidating back-office operations, for example, a global company can cut its
costs and raise service levels, but it probably won’t change its industry standing.
Typically, a company with a strong position in a mature market devotes 30 to 60
per cent of its IT investment to this category; attackers may spend less.
Competitive advantage investments: Win-the-race investments improve service,
cut prices, and increase the effectiveness of decision making or the efficiency of
operations. Companies should select and manage such projects in close
alignment with other business and operational investments. For example, in the
1990s, Wal-Mart linked its suppliers’ warehouses and stores in a single supply
chain system, which allowed it to operate with significantly less inventory while
reducing the incidence of stock-outs. For several years these achievements gave
the retailer a significant cost advantage over its similarly scaled competitors,
fuelling its growth while they attempted to catch up by developing similar
systems. Likewise, the first airlines that introduced electronic check-in booths at
airports reduced the cost of check-ins significantly (in some cases by as much as
75 per-cent) while offering a faster and more convenient service. Now, 20 per
cent of all customer journeys start at an electronic check-in booth, and such
facilities are a norm for all major airlines.
Rule-changing innovations: Change-the-rules investments deliver a competitive
advantage by creating new and unique products or services or by generating a
hard-to-replicate cost or performance advantage. For example, in 2004 Barclays
Capital launched Barx, a global 24-hour electronic trading platform, for financial
products. Barx not only cut costs and response times by removing the phone and
paper parts of the processing chain but also created a new electronic
marketplace for interest rate swaps and subsequent offerings—a marketplace
that has become the norm for the electronic trading of these products. In this
case Barclays Capital was a successful attacker, taking market share away from
bigger investment banks. Attackers spend a relatively large part of their IT
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investment budget on investments in this category, even up to 40 per cent of the
total.
Diversifying the management of these categories of investments and adopting an
approach to portfolio companies can have more control over costs and at the same
time supporting targeted investments in promising new technologies. Companies
moving from a uniform approach to a portfolio of ICT must consider the steps that can
guide the assessment of their opportunities and designing a strategy that uses ICT to
develop technologies around the potential of the same company (Craig D, Tinaikar R.,
2006) [21]:
Assess and design initiatives around external opportunities. Companies should
begin by examining their industry position and their aspirations for growth.
External opportunities will suggest both the capabilities that might help them
meet their aspirations and the way IT can support the development of those
capabilities. Among financial institutions, a market leader might see the greatest
potential in reducing the cost of selling securities and improving integration with
its brokers. IT’s role would be, first, to create a trading platform that operates on
a more efficient scale and frees up capabilities so that the company can focus on
external growth opportunities and, second, to improve communications in the
brokerage channel. An attacker, by contrast, might see its IT systems as a source
of competitive advantage that would help it to quickly test and launch novel
products to attract new customers and win market share. Creating such a
dialogue between the business and IT is critical for setting the business unit’s
aspirations.
Understand internal IT capabilities. If companies create an IT strategy without
considering the strengths and weaknesses of their existing IT assets and
capabilities, they may attempt an unachievable strategy or miss out on real
opportunities. Managers should realistically assess the gaps and strengths of the
current IT organization and the way it contributes to business performance. They
can then focus new investments on closing performance gaps or capturing new
opportunities. One financial-services company going through this process
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decided that the performance and user interface of its internal trade-processing
systems were so good that it could offer them to clients as a new direct-trading
service. A competitor in the same market had plans to copy this strategy, but a
quick assessment of its systems showed that they could not easily be extended
to support higher volumes. The competitor therefore changed its business
strategy.
Differentiate governance. What companies learn from internal and external
assessments can help management decide which capabilities to place in which
category and how much to invest in each of them. Governance models vary
among companies, but basic IT capabilities are generally managed for cost
effectiveness and productivity—increasingly in shared-services centers and often
offshore. IT investments to generate a competitive advantage must be aligned
more closely with the business units they support and thus are often embedded
within those units. But truly disruptive rule-changing investments frequently fail
to gain traction in a business unit, sometimes because the new business
capabilities they enable could cannibalize existing ones. Therefore, they often
require a distinct management approach, a special set of decision criteria, and
often a separate organization.
With the portfolio divided among the three kinds of value that IT can create for
businesses, its management and planning should be driven not merely by the desire to
cut costs but also by the goal of generating investments that create a strategic
advantage or added revenue (Craig D, Tinaikar R., 2006) [21].
2.3.6.2 The productivity paradox
In banking, the management of information has always been the heart and basis of its
activities: in this sense, the sector is classified by Porter and Millar, as already
mentioned in Chapter 1, to information-intensive production processes and high
information content products. In the interpretation of the two authors, traditionally
accepted and shared by banking literature, the high intensity information is resolved in
the use of strategic technology: the high information content industries, including
banking precisely, seem to be more susceptible to the core application of technology,
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compared to those low information content. In this logic, the ICT not only transform
products and processes, but even the nature of the competitive structure of the same
industry in three key areas: creating a lever to achieve a competitive advantage
(whether expressed in terms of reduced costs or increased revenues as a result of
policies of differentiation), generating business completely new and changing industry
structure.
According to Bracchi, Francalanci and Motta (Bracchi G., Francalanci C., Motta G., 2010)
[22], Information Systems (IS) is undoubtedly the key technology of products and
processes of the banks, because the evolution of computer technology determines the
evolution of the industry. The Bank IS is complex, because of the variety of related
services it offers.
In fact, it includes:
operations that can be classified simplistically as movements of money on
deposits that the customer held with the bank for payments and receipts;
financing services the bank provides to private and corporate customers;
services of the customer’s assets management, which includes the sale of
investment funds and asset management.
Each of these services involves a specific flow of business, and information systems of
traditional banks handle each product, as well as each type of customer, independently
of others.
This management of information systems has then determined, in the traditional banks,
a high level of investment in ICT, which is opposed, however, a great difficulty in
assessing its performance.
Citing a study done by Bracchi, Francalanci and Motta (G. Bracchi, C. Francalanci, G.
Motta, 2010) [22], analysis of the benefits of investing in computer science at the
aggregate level has as its objective the identification of the total return of IT
expenditure . The benefits of individual IT projects should add up to a total return of
annual investment in technology and measurable performance indicators to be
aggregated. This puts on one hand the problem of identifying performance indicators to
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measure the returns of the aggregate investment in technology, on the other to isolate
the effect of technology investments on these indicators compared to the effects of
other organizational variables. Demonstrate how investments in IT have a total tangible
and substantial return, represents a critical activity to ensure the support of senior
management for future investments. The assumption most optimistic and that would
bring increased results in the justification of investments with the company
management is that a higher spending on information technology accompanies an
improvement of the most common indicators of financial performance, first of all ROI
(Return Of Investment). The traditional hypothesis is, in fact, that organizations which
have higher investments in IT have higher ROI values, too. In general, however, the
studies that have attempted to demonstrate empirically this correlation, found no
relationship, either positive or negative, between investment in information technology
and ROI. This result neutral itself, has been interpreted negatively in relation to the
hypothesis of positive correlation between investment returns and empirical data, so as
to be indicated in the literature as the “productivity paradox” and described as follows:
"You can see the computer age everywhere but in the productivity statistics" (Robert
Solow 1987, analized by Erik Brynjolfsson in 1993) [23] . In research carried out, the
traditional indicators of performance were used to compare different companies and
within the same company, to relate values measured at different times (Strassmann
1990) [24]; However it was not possible to demonstrate conclusively that to a major
information technology spending corresponds on average an increase in aggregate
profit of business. The reasons Strassmann points as possible explanations for this result
are basically two:
The first refers to the level of aggregation of costs and outcomes: the complexity
and articulation of large companies can induce a compensation between the
opposite results in separate divisions, whose explanation is contingent.
The second is more conceptual: in fact should be wondering if the proper
spending was related to corresponding returns, as there are different types of
technology costs, that determine a certain type of return.
In this context, it seems evident that, as well as any type of investment, for investments
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in information technology, good management can achieve satisfactory results with a
nominal cost; if management is not effective, is not sufficient to equip your company
with the latest technology to make it a leader: indeed, it can even be counterproductive
because it causes the burden of costs not irrelevant.
2.3.6.3 The sources in support of non-correlation theory: an example for the
banking sector
There are many examples that demonstrate the lack of correlation between ICT
investment and improve business performance; one of these testimonies can be found
in the "Banking: The IT Paradox" article published in The McKinsey Quarterly
International magazine in 2002 [25].
During the '90s the trend in productivity of the retail banking sector have followed a
trend opposite to that of the rest of the economy: growth rates of labor productivity
declined rather than increase as in the rest of the market. During this period,
investments in ICT, however, increase. The relationship, therefore, that develops
between these two factors is more complicated than it seems. The author, NG Olazabal,
to explain this relationship, begins to analyze the nature of 90s investments in ICT. In
recent years the major ICT investments were made to manage and improve customer
information and to provide them a support. To solve the problem of proper
management of information flow to / from customers was created a single interface to
communicate with clients and applications to facilitate operations of up-selling and
cross-selling. These solutions were accompanied by investments in new computer and
call-center, supplemented by information systems and updating of these. The author
continues the analysis by saying that in the 90s there was an increase in the number of
combinations of products and types of prices: the increased complexity of information
required to manage the various information systems and greater computing power. The
analysis concludes with another factor in recent years that has characterized the
banking sector: the increase in merger transactions, which led to an increase of the size
of the banking companies and consequently increased the complexity of information
systems. Against this, Investment in ICT moved to the Internet, because it represented a
new channel for the sale of banking services. The unexpected and negative aspects of all
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these investments that them led to a decrease in productivity.
According to Olazabal [25], through investment in ICT is certainly increased the quality
of transactions, but not the number of transactions, which is the indicator by which we
measure productivity. The author explains that this partial failure is due to the fact that
investment in ICT had been made to increase revenues, rather than to decrease costs.
Moreover, the managers of the banking sector have committed several errors: first,
they are not able to estimate the return on investments in CRM systems and, secondly,
have focused on rising in the product mix and cost when consumers preferred a better
level of service. Another mistake was to invest heavily in new PCs for employees, but
without instructing them to use the full power of new hardware. This aspect is
considered with particular attention to the work of Camussoni (Camussoni 2006) [26],
that analyze the incidence of "ignorance about computer" on the banking sector
productivity. In this way, Olazabal also notes, there has been excessive investment,
which did not lead to any increase in profitability, in fact they have only affected the
cost. The only investments that have brought benefits were those implemented in the
back-office processes, such as the image control technology and the introduction of
automated call center.
2.3.6.4 Alignment between IT investments and business
If the analysis is restricted to well-managed companies with good performance, the
initial hypothesis of positive correlation between increased investment and better
computer performance, is, in fact, empirically proven. Bank of Italy offers the only study
related to a banking sector other than the U.S. one (Muraglia 2008) [28]. The authors
show, for the Italian banking sector, the existence of differences in cost and profit
functions strongly correlated with the accumulation of ICT capital: banks that have
intensive use of ICT techniques are closer to best practice, which implies a higher level
of efficiency. They interpret this result as a consequence of the effects of so-called
"achievement" (catching-up, or adoption of new technologies by second movers banks
after a certain period of time than the banks first movers), consistent with the trend of
the dissemination of technology curve.
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In general, the characteristics of non - depletability and self - generation of information
enable management processes to create efficient information ever more suited to their
goals and more easily accessible, thus contributing to increase their performance.
Conversely, poorly managed processes do not have good performance in the creation of
its own information base that, over time, tend to grow in size due to the properties of
non - depletability and self - generation, including very useful information and making it
less easily accessible data significant. The technological support accelerates the
divergence in performance between efficient and inefficient processes, contributing
positively and negatively to the first second; recently, therefore, research attention has
shifted to analysis of the factors that most contribute to distinguish between efficient
and inefficient processes that in turn are more influenced by computerization. One of
the most interesting results in this regard is that the performance increase is achieved
by those companies in which it is well managed the alignment between the organization
and technology. It was, for example, empirically demonstrated that a critical variable of
organizational change that must be accompanied by investment in IT is the nature of
individual work, which should reduce its level of specialization (Francalanci e Galal,
2008) [27]. The effect of reducing the degree of individual specialization is one of the
characteristics of information technology that distinguishes it from traditional
technologies.
2.3.6.5 ICT in support of products / services
The focus and value related to products engineering activities are gradually shifting from
hardware to software: it seems to be the core element in the creation of features that
add value to products. In addition, more and more often software is the "product" or
"service" that the customer receives (Muraglia, 2008) [28].
There are numerous studies available in the literature that analyze issues of utility to
enter into the software product. The researchers emphasize as the cause of the growing
"informatization" of the products mainly lies in the importance that today's data and,
more importantly, take the information to businesses. Beyond product innovation in the
strict sense and the increased functionality made possible by ICT, an even more
significant is the change in the relationship between manufacturer and customer. The
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embedded ICT component collects, stores, processes and transmits data that can be
used by companies to monitor the performance and operation of products - as well as
failures - and to make possible further development and optimization of supply. While
in the past a company produced goods for sale to an anonymous customer, now the
paradigm has shifted toward the establishment of a long-term relationship with
customers to meet their needs through a series of additional and complementary
services. The embedded ICT enables the creation of this relationship. In addition,
products of "new generation" software is a unique opportunity for the company to
collect information for use during marketing. The competitive advantage associated
with the products, which have been incorporated into the technological components, is
therefore not related to ICT itself, but to the information obtained, capabilities
developable and especially the possibility of greater customization. The thread of this
issue in the international literature becoming more pervasive is, especially of a specific
component of ICT the fact that software is increasingly often inserted within a variety of
products. All researchers in this area agree on the importance of increasing the quality
of embedded software and the need to make the development process more
productive, reducing time to market the product (through the development of
appropriate metrics to monitor performance and increased investment in architecture).
Another interesting dimension is represented by the centrality of ICT in the
development of goods / services offered to customers in telecommunications. The
convergence between telecommunications, media and software is changing the
competitive environment in the industry, transforming the products / services for the
customer, the manner in which they are created, supported and conveyed to the
market. The critical role that ICT has achieved in telecommunications for the
development of products and services is very similar to the growing impact of IT in
banking in terms of information content of both products and processes.
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3 – The Case Study
3.1 Introduction
The purpose of this chapter is to explain the method we used to analyze and map the
Information System in Mediofactoring S.p.A., the society where the internship took
place.
The chapter is divided into four parts:
Background on factoring industry
Presentation of the case study, Mediofactoring S.p.A.
Illustration the method used.
Discussion of all deliverables produced in the case study.
3.2 The Factoring Industry
Factoring is a financial technique that allows a company to transfer its receivables to a
broker, that may be a company or a bank, and since they factor receivables are called
“Factoring companies” (called also “factors”). This companies take over the
management of claims (for example providing the collection of information about
debtors, receivables portfolio management, accounting records, credit collection,
management of pain, etc.), take steps to ensure protection against the risk of insolvency
of the debtor and help to mobilize part of the credit (up to 80 %). In the Italian situation,
in particular, factoring is a comprehensive financial package in which the fundamental
activity of the credit management can combine, depending on the needs of the
customer, a credit element and an insurance one.
A typical factoring service satisfies at least 2 of the following attributes:
1. Cash advance of receivables;
2. Handling of customer’s receivables, including realization transactions;
3. Collection of customer’s debts;
4. Insurance of the customer upon credit risk.
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Across countries, factoring attributes are different. For example, in USA:
Administrative service to the customer - management of debts under a given
commercial credit (handling sales account);
Insurance upon credit risk (there is no right of recourse);
Cash advance.
At the end of operation, bank transfers the realized receivables to the customer and it is
one of the realization way of factoring.
Factoring was introduced in the late nineteenth century in the U.S. textile industry. Over
one hundred years later, it has become a key sector of the global financial system and
represents an important source of financing for many companies. At present, factoring
is offered in over 50 countries and the world market arose from 47 billion USD in 1980
to 1,615,352 billion USD in 2009. As shown in Figure 17, European markets have seen a
growth in business volumes consistently higher than other markets (for example United
States): The British market has recorded a significant decline from 2007, while other
countries have recorded stable average volume.
The Italian market is particularly attractive, because, in 2009, it was the third largest
market worldwide (after United Kingdom and France) with a market share of about
9.7%. Companies specialised in factoring in 2009 were 34 (Figure 18): most were bank
divisions (62% in 2009); other companies were of industrial origin (24% in 2009) or
independent (14%), as shown in Figure 19.
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FIGURE 17: THE AMOUNT OF THE FACTORING TURNOVER IN KEY WORLD MARKETS (IN MILLIONS OF
EURO) - DATA SOURCE: FACTORS CHAIN INTERNATIONAL (2010)
FIGURE 18: THE NUMBER OF ACTORS IN THE FACTORING INDUSTRY IN ITALY – DATA SOURCE:
ASSIFACT (2010)
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FIGURE 19: THE COMPOSITION OF THE FACTORING MARKET OFFER IN ITALY (PERCENT VALUES) –
DATA SOURCE: ASSIFACT 2010
In general, three parties take part in factoring operations:
Factoring company (or specialized department of a bank), also called “Factor”:
specialized organization, which buys the invoices from customers.
The customer (supplier of the goods, creditor), also called “Transferor” because
he “transfers” his invoices to the Factor - enterprise, which has concluded the
contract with the factoring company.
The Debtor: Enterprise or firm which is buyer of the goods; there is a particular
kind of agreement, called “Reverse Factoring”, where the Debtor is directly the
factor customer.
3.3 Mediofactoring S.p.A
In the following box the history of Mediofactoring S.p.A and its main products are
described (Albizzati, 2006) [29].
57,58%64,52%
58,62% 61,29% 61,76%
30,30%22,58%
27,59% 25,81% 23,53%
12,12% 12,90% 13,79% 12,90% 14,71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009
Number of independent companies (%)
Number of skilled operators of industrial
origin (%)
Number of skilled operators of bank origin
(%)
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The society was born in 1982, December 22nd
, when Cassa di Risparmio delle Province
Lombarde S.p.A and Reale Mutua Assicurazioni S.p.A., with a share capital of ITL 5
billion (EUR 2,58 million), split by 60% and 40 % respectively, established
Mediofactoring S.p.A. The Legal headquarters were located in Milan, via Fratelli Gabba,
1.
FIGURE 20: THE FIRST MEDIOFACTORING LOGO
The following list shows the main steps of the growth of Mediofactoring S.p.A.
In 1984, Mediofactoring S.p.A. increased the share capital to ITL. 20 billions
(EUR. 10.33 millions) anda new shareholder, I.B.I (Istituto Bancario Italiano)
got in. The legal headquarters moved to via Filodrammatici, 3/5 in Milan.
In 1985, Mediofactoring S.p.A, reached and celebrated an annual turnover of
ITL. 1.000 billions (EUR. 516 millions). As a result of a further increase of the
share capital, Banco di Sicilia joined as new shareholder.
In 1990, the share capital was increased to ITL.54 billions (EUR. 27,89
millions). Reale Mutua Assicurazioni left the company and, at the end of the
year, Mediofactoring S.p.A exceeded an annual turnover of ITL. 5.000 billions
(EUR. 2.582 millions).
In 1992, the Act of Parliament n.52 dated 21st February 1991, supposed to
regulate the factoring activity, came into force; Mediofactoring S.p.A was
enrolled as number One on the factoring companies Register; the legal
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80
headquarters moved to Via Monte di Pietà, 15, in Milan.
In 1994, Mediofactoring S.p.A exceeded ITL. 9.000 billions (EUR. 4.648
millions) in terms of annual turnover; in the same year Banco di Sicilia left the
company and Cassa di Risparmio delle Province Lombarde remained as the only
shareholder.
In 1995, an additional increase of the share capital to ITL. 75 billions (EUR.
38,73 millions) was approved; at the end of the year, Mediofactoring exceeded
ITL. 11.000 billions (EUR. 5.681 millions) in terms of annual turnover,
representing about 17% of Italian factoring market share.
In 1998, in January, Banca Intesa S.p.A. was established as a result of the merger
between Ca.Ri.Plo. S.p.A. and Nuovo Banco Ambrosiano Veneto S.p.A.; in
November, Mediofactoring extended its own activity by incorporating Fiscambi
Factoring S.p.A. and the annual turnover exceeded ITL. 24.200 billions (EUR.
12.498 millions). In the same year, Mediofactoring became the Italian market
leader, reaching a share close to 30%. After one year from its set-up on internet,
www.mediofactoring.it website has turned into a landmark for both
Mediofactoring activities and its client as well.
In 1999, with effect from October, 1st were signed acts for merger, by
acquisition of companies Po Factoring S.p.A. and Creditarredo S.r.l.by
Mediofactoring S.p.A; the share capital was increased to ITL. 100,76 billions
(EUR. 52 millions); the annual intermediated flows exceeded ITL. 32.800
billions (EUR. 16,939 millions).
In 2000, with effect from January, 1st , an additional merger, by the incorporation
of Fivefactor S.p.A., was completed; the annual turnover exceeded EUR 21.200
millions (over ITL. 41.000 billions).
In 2001, IntesaBci was established as result of the merger between Banca Intesa
and Banca Commerciale Italiana. As part of this process, on May, 1st
Mediofactoring acquired Comit Factoring S.p.A.; the turnover reached EUR.
27.788 millions (ITL. 53.800 billions). In the same year, Mediofactoring S.p.A.
set up the Infocenter web service, which allowed communication with clients and
also an on-line mutual exchange of data in a private and protected environment.
In 2002, December, IntesaBci turned its business name into Banca Intesa S.p.A
and Mediofactoring S.p.A. continued its positive trend of activity within Banca
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81
Intesa Group. In the same year, Mediofactoring S.p.A, ranked first among
European factors, for the third year in a row, in terms of volumes of receivables
managed.
In 2003, a new share capital increase to EUR. 155 millions (ITL. 300,12 billions)
was approved. On July, 21st in order to give uniformity to the group identity, the
Extraordinary Shareholders meeting approved the change of the logo and of the
business name into Intesa Mediofactoring S.p.A. In the same year, Intesa
Mediofactoring S.p.A confirmed its market leadership (Leader in Italy and
second worldwide); the legal headquarters moved to Via Carlo Poma, 47 in
Milan. The new logo is shown in the following picture:
FIGURE 21: THE SECOND MEDIOFACTORING LOGO In 2004 Intesa Mediofactoring S.p.A., first in its industry, introduced the certified
digital signature, making the process of the receivables assignment fully
electronic. Thanks to this ambitious project, Intesa Mediofactoring was awarded
the third prize at the contest “Il cerchio d’Oro dell’Innovazione Finanziaria”.
In 2005, July, Intesa Mediofactoring acquired Faber Factor S.p.A.;
In 2007, January, Intesa Sanpaolo was created from the union of the already large
banking groups Sanpaolo IMI and Banca Intesa. A merger in which the two
banks came after a journey that began in 2006 and aims to do just the plan to
merge with the definition of the guidelines. In December of that year, then, the
extraordinary shareholders' meetings of both worlds have finally approved and
validated the project developed previously.
In 2008, April, in order to give uniformity to the new group identity, the
Extraordinary Shareholders meeting approved the change of the logo and of the
business name of Intesa Mediofactoring S.p.A. into Mediofactoring S.p.A.. The
following picture shows the current logo of Mediofactoring S.p.A.
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FIGURE 22: THE CURRENT MEDIOFACTORING LOGO The leadership was maintained in the following years and currently Mediofactoring has
been reconfirmed as leader in the Italian market and as one of the major player in the
international scene in the area of credit management.
Mediofactoring presents itself as a strategic partner for companies who want to protect
their investments. Thanks to a personalized approach based on listening and flexibility
of supply, Mediofactoring can develop the most effective solution for its customers,
always ensuring a high standard of quality.
By the attention given to customers, among the main services offered to customers,
emerge the following:
Customers assessment: prior analysis and ongoing monitoring of credit;
Credit management: care of reminders and collections phases;
Advancing credit: monetizing the value of the amount;
Guarantee the success of credit: hedge the risk of customer insolvency.
Mediofactoring Products
The following list presents the main products that Mediofactoring can provide to its
customers.
Non - recourse: It provides the certainty of successful business operations, offering a
100% secure guarantee against any risk of insolvency of debtors and provides a
professional management of claims. The product is released in the following terms: The
Factor, after a prior assessment of the debtors, determines a reference plafond for each of
them, which quantifies the amount by which the credits are guaranteed. Debtors claims,
belonging to a uniform range, are sold continuously to the Factor, which effectively
manages them at the administrative level and is responsible for the collection. In case of
default from the debtors the Factor covers 100% of the guaranteed amount and refund
the claim on the agreed date. On demand the Factor is also able to anticipate the amount
of acquired credits, in percentage to be agreed with the customer - supplier - (usually
80%).
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Recourse: outsourcing solution which ensures the credit management and, where
applicable, credit anticipation. It provides the ability to add credit and grant it in a
variable percentage in reference to the volume of sales. The outsourcing management
and assessment of debtors, promotes, for the ceding customer, the possibility of mainly
concentrating on the core business. The product is released as follows: the Factor
performs an accurate debtors assessment and takes responsibility for managing of all the
claims. The professional credits management insures the replacement of the internal
structure of administration fixed costs - relative to the transferors - with variable costs,
adjusting them on the amount of credits actually managed. On demand the Factor is able
to anticipate the payment of credits, in percentage to be agreed (usually 80%), improving
liquidity without reducing the ability of credit to the banking system. The Factor also
manages collections of receivables.
Credit supply: It is a product mainly used by medium and large companies that have a
network of indirect sales and want to have the opportunity to adjust the payments to the
sales cycle. The product is released as follows: The Factor performs an appropriate
debtors assessment and takes the responsibility for managing all customer credits
transferred. This service requires a tripartite agreement between the supplier, his
customer, and the Factor. In particular, it ensures that the supplier will obtain payment of
claims upon their expiration date, and simultaneously allows the debtor to have a further
extension of credit. This solution makes possible to effectively optimize the flow of the
commercial distribution chain. The further extension of credit is a pecuniary interest for
the customer, but can be arranged according to specific trade policies, to distribute the
financial charges between the supplier and his customer. On demand, the Factor is also
able to anticipate the amount of acquired credits in percentage to be agreed (usually
80%) and offer a 100% secure guarantee against any risk of debtors default.
Reverse factoring: Product for the debtors, is an effective support in the administration
of payment to suppliers, managing all the debts of those participating to the operation.
This product allows debtors to effectively rationalize the accounting flows through a
single point of contact and include the possibility of further delays by the Factor from
the expiration date. For this kind of product the Factor is charged to effectively manage
all the debts to suppliers who adhere to a tripartite agreement. Provides support to
suppliers in handling payments on time, in order to obtain, for debtors, better payment
process. The debtors pay directly the Factor, thus maximizing cash flow through a single
Marta Frascaroli
84
point of contact. On demand, the Factor is also able to anticipate the amount of acquired
credits in percentage to be agreed (usually 80%).
Maturity: Product that ensures the debt collection on a predetermined date. The
predictability of cash flows optimizes treasury management while the 100% guarantee
against the risk of debtors default enhances the security of the operation. The Factor
performs an accurate assessment and is responsible for the management of all supplier
claims. The agreed date of collection is based on the average delay and the historicity of
the transferor-debtor relation. Periodically, the data is evaluated and refined according to
the receipts from the previous period. The Maturity service applies to continuous
supplies of goods and services not easily questionable. It can also be applied together
with the service of 100% guarantee against the debtors risk of default.
Only guarantee: Product with which the Factor gives to supplier only the guarantee
against the risk of insolvency.
Travel factoring: Payment system dedicated to tourism service providers and travel
agencies, that supports the reduction of administrative costs and regulates the flow of
funds. The Factor performs a careful evaluation and is responsible for the management
of all the travel agencies with which the Tour Operator - transferor in this case - have a
relationship, using a payment system that regulates the flow of money between those
parties involved in travel. The service is free for the Travel Agent and the Factor ensure
punctuality of Agency payments. Debts are paid fortnightly directly to the Factor. On
demand, the Factor is also able to anticipate the amount of acquired credits in percentage
to be agreed (usually 80%) and offer a 100% secure guarantee against any risk of debtors
default.
Import factoring: Consultancy, focused on the Italian economic realities, offered to
foreign exporters (transferors) in collaboration with FCI (Factor Chain International).
The product includes a service of management, control, and credit guarantee, built on
knowledge about the economic realities of our country. The Factor gives a careful
assessment of the Italian debtors and will be responsible for managing all of them or
only a uniform part. The Factor can insure careful management and collection of
receivables thanks to the knowledge of socio / economic regulations and business
practices in Italy. On demand, the Factor is also able to anticipate the amount of acquired
credits in percentage to be agreed (usually 80%) and offer a 100% secure guarantee
against any risk of debtors default.
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Export factoring: Consultancy, given to Italian exporters (transferors) about the
business practices of different foreign countries, that allows to overcome problems
related to international complex transactions collaborating with FCI. The product
includes a service of claims management and monitoring and a 100% guarantee against
the risk of debtors default. In detail, the Factor is responsible to run a careful evaluation
of foreign debtors both directly and through a network of subsidiaries, members of
Factor Chain International, the leading association in the world in factoring industry.
The Factor is responsible for the claims management of all debtors in one or more
foreign countries, and ensures the regularly collection even through any of its affiliates.
In this case, the successful conclusion of the service is provided by the knowledge that
this affiliate has on the socio / economic regulations and business practices in the
country of reference. On demand, the Factor is also able to anticipate the amount of
acquired credits in percentage to be agreed (usually 80%) and offer a 100% secure
guarantee against any risk of debtors default.
Easy Export: works like Export Factoring but the service is guaranteed in collaboration
with the holding, not with FCI; also in this case the transferor is Italian and the debtor is
foreign.
Undertaken debts collection: Product that includes out of court collection activity of
claims, acting as General Contractor throughout the national territory, in all its phases
(fraud detection, handling of telephone complaints, allocation of receipts to invoices,
certification of losses, the possible recovery of the goods). It also deals with the recovery
of small amount insolvencies, previously neglected because they were considered not
cost-effective, without prejudging the preservation of the image, which is maintained
and protected for the duration of all the debt collection process.
With this service the Factor aims to transform the management of debt collection
activities in a real business by:
High level of specialization
High degree of industrialization
Timeliness and identification of priorities thanks to maximization of the
effectiveness of recovery, according to a targeted segment / portfolio
Management of phone and credit collection (customer Telecom)
Management of external professionals with differentiated approach to various
areas, controlled by effective monitoring mechanisms.
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3.3.1 Performance of the Italian factoring market
From the 2010 company's financial balance [30], published on the site
www.mediofactoring.it, it is possible to extract the following data: the market for
factoring in the December 31, 2010 pointed out an overall increase of turnover of about
16% compared to December 31, 2009 (source: Assifact).
The total turnover of 134.5 billion EUR was made to 67.8% from operations without
recourse and 32.2% from operations with recourse.
The data referred to the stock of loans outstanding at December 31, 2010 was equal to
50.4 billion euros, an increase of 20.7% compared to December 31, 2009 (+8.6 billion).
The outstanding at December 31, 2010 is composed of 66.8% of total receivables from
debtors with non-recourse clause and 33.2% of loans sold into with recourse clause. The
data relating to advances of 38.9 billion at December 31, 2010 resulting in increase of
24.3% compared to December 31, 2009 (+7.6 billion).
Loans outstanding at December 31, 2010 are also funded to 76% compared to a
percentage of funding to 31 December 2009 amounted to about 75%.
3.3.2 Mediofactoring Positioning
From the 2010 company’s financial balance [30], is also possible to extract the
positioning of Mediofactoring in the area of credit management in Italy (Figure 23 – The
financial data used are updated to 31 July 2011 and the source is Assifact).
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FIGURE 23: THE LEADERSHIP OF MEDIOFACTORING IN ITALY
The turnover total at 31 December 2010 amounted to 33.7 billion euros, brought an
increase of 24.8% compared to December 31, 2009. The trend has been influenced in
absolute value, both from operations without recourse (+5.4 billion) and the operations
with recourse (+1.3 billion).
In terms of outstanding, imprest accounts and granted fees, the position of
Mediofactoring consolidates with a market share by 21% and 20% (Source: Assifact
monthly observations). The outstanding, amounting to 10.5 billion euros, showing an
increase, compared to December 31, 2009, to 25.6%. Loans at December 31, 2010 stood
at 8.4 billion, them also increased, if compared to the data at 31 December 2009, of
31.2%. The positive trend is confirmed by the data operations of the average volume of
loans at December 31, 2010 amounted to 5.4 billion euros, an increase from the
previous year of 0.5 billion euros.
The comparison with the budget, shows values of stocks and flow, higher than
budgeted.
Mediofactoring for the year 2010, in terms of market positioning, strengthening the
position of the first Italian operator with a turnover for more than 25%, more than 7%
from the second Italian player (Source: Assifact monthly observations).
Quota di
mercato
Turnover
(€/mld)
30,58%30,58%
15,73%15,73%
14,46%14,46%
7,14%7,14%
5,96%5,96%
4,88%4,88%
3,09%3,09%
2,28%2,28%
1,80%1,80%
1,78%1,78%
12,30%12,30%
dati al 31.07.2011
* 19 Competitor Fonte: Assifact
28,50
14,66
13,48
6,65
5,56
4,55
2,88
2,12
1,67
1,66
11,46
Mediofactoring
Ifitalia
Unicredit Factoring
Factorit
Mps L&F
Ubi Factor
Banca Ifis
Centro Factoring
Emil-Ro Factor
GE Capital
altri *
Quota di
mercato
Turnover
(€/mld)
30,58%30,58%
15,73%15,73%
14,46%14,46%
7,14%7,14%
5,96%5,96%
4,88%4,88%
3,09%3,09%
2,28%2,28%
1,80%1,80%
1,78%1,78%
12,30%12,30%
dati al 31.07.2011
* 19 Competitor Fonte: Assifact
28,50
14,66
13,48
6,65
5,56
4,55
2,88
2,12
1,67
1,66
11,46
28,50
14,66
13,48
6,65
5,56
4,55
2,88
2,12
1,67
1,66
11,46
Mediofactoring
Ifitalia
Unicredit Factoring
Factorit
Mps L&F
Ubi Factor
Banca Ifis
Centro Factoring
Emil-Ro Factor
GE Capital
altri *
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The following tables set out a framework summarizing the main operational indicators
on the performance of Mediofactoring year 2010.
TABLE 5: OPERATIVE DATA
Flows and Trends 2010 December,31
2009 December,31
Absolute variations
Percentage variations
Turnover 33.685.916 26.996.831 6.689.085 24,8 Without Recourse
28.542.359 23.177.243 5.365.116 23,1
With Recourse 5.143.557 3.819.588 1.323.969 34,7
% commission on turnover
0,304% 0,358%
Stock 2010 December,31
2009 December,31
Absolute variations
Percentage variations
Outstanding 10.446.135 8.319.980 2.126.155 25,6 Without Recourse
9.051.032 6.859.247 2.191.785 32,0
With Recourse 1.395.103 1.460.733 -65.630 -4,5 Loans at the date
8.378.408 6.385.655 1.992.753 31,2
Average Loans 5.431.940 4.980.215 451.725 9,1
Analyzing by a management point of view the qualitative composition of the turnover,
the volume of credits purchased, managed and / or guaranteed, regardless of the mode
of exposure in the financial statements, it is clear that the products that have most
contributed in terms of changes, compared to 2009 and / or in terms of impact on the
total value of turnover in 2010, were the products of maturity, and international
mobilization, for the non-recourse, and product maturity, mobilization and credit
provision for recourse.
TABLE 6: SERVICES AND PRODUCTS TURNOVER.
Product: without recourse
Turnover 2010
Turnover 2009
Absolute variations
Percentage variations
Percentage in 2010
Maturity 14.374.936 8.784.995 5.589.941 63,6 42,7 Mobilization 8.295.345 8.833.819 1.461.526 21,4 24,6
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Supplier Credit 2.174.572 4.037.124 -1.862.552 -46,1 6,5 Guarantee 2.071.510 1.977.773 93.737 4,7 6,1 Travel Factoring
1.211.846 1.156.603 55.243 4,8 3,6
International activity
227.049 132.348 94.701 71,6 0,7
Management 186.535 254.317 -67.782 -26,7 0,6 Others 565 262 303 115,5 0,0
Total 28.542.358 23.177.243 5.365.115 23,1 84,7
FIGURE 24: SERVICES AND PRODUCTS TURNOVER (WITHOUT RECOURSE)
Product: with recourse
Turnover 2010
Turnover 2009
Absolute variations
Percentage variations
Percentage in 2010
Mobilization 4.495.880 3.314.525 1.181.355 35,6 13,3 Supplier Credit 348.578 251.512 97.066 38,6 1,0 Maturity 270.103 136.595 133.508 97,7 0,8 Management 28.877 115.759 -86.882 -75,1 0,1 Utilities Management
120 1.198 -1.078 -90,0 0,0
Total 5.143.558 3.819.589 1.323.969 34,7 15,3
Services and Products turnover (Without Recouse)
02.000.0004.000.0006.000.0008.000.000
10.000.00012.000.00014.000.00016.000.000
Mat
urity
Mob
iliza
tion
Sup
plie
r Cre
dit
Gua
rant
ee
Trave
l Fac
torin
g
Inte
rnatio
nal a
ctivity
Man
agem
ent
Oth
ers
Products
Th
ou
san
ds o
f E
uro
s
Turnover 2010
Turnover 2009
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FIGURE 25: SERVICES AND PRODUCTS TURNOVER (WITH RECOURSE)
A further dimension of analysis of the dynamics of the business volume is the area,
divided into its components of domestic activity, which covers 80.9% of total volumes,
and international business. This includes segments of import and export factoring - in
their parts, direct and brokered by the members of Factors Chain International
Correspondents - and the foreign activities of foreign, mainly carried out under the
freedom to provide services in other EU countries European Union.
The following table shows data relating to turnover divided into various international
components, together with comparisons with 2009 data. The increase covered the
import sector (+33.7%), export (+82.3%) on Foreign Countries on Foreign Countries
(+56.2%). Overall, the international division of the business has recorded a volume
growth of 58.9%.
TABLE 7: INTERNATIONAL TURNOVER.
Type 2010 December,31
2009 December,31
Variations % variations
% Turnover in 2010
Import 1.398.318 1.045.973 352.345 33,7 4,2 Export 2.411.705 1.323.168 1.088.537 82,3 7,2
Services and Products Turnover (With Recourse)
0
500.000
1.000.0001.500.000
2.000.000
2.500.000
3.000.000
3.500.0004.000.000
4.500.000
5.000.000
Mob
iliza
tion
Sup
plier C
redit
Mat
urity
Man
agem
ent
Utilities
Man
agem
ent
Products
Th
ou
sa
nd
s o
f E
uro
s
Turnover 2010
Turnover 2009
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91
Foreign Countries/ Foreign Countries
2.636.790 1.688.005 948.785 56,2 7,8
Total 6.446.813 4.057.146 2.389.667 58,9 19,1
The following table shows the volumes generated by the newly acquired customers by
type of customer acquisition channel. The turnover generated in 2010 was 5.0 billion
euros, an increase of 58.5% compared to 2009.
Channel Turnover 2010
Turnover 2009
Absolute variations
Percentage variations
Percentage acquisitions 2010
Banks of the Group
Intesa Sanpaolo
4.679.292 3.020.892 1.658.400 54,9 93,1
Direct 345.762 150.365 195.397 129,9 6,9
Total 5.025.054 3.171.257 1.853.797 58,5 100,0
In the above table it is interesting to observe how the new acquisitions are largely
(93.1%) provided by Intesa Sanpaolo.
3.3.3 Mediofactoring Information System
The information system of Mediofactoring comes from a thirty years evolution, starting
with the purchase of a "vertical" Factoring software in 1982. In the last years, the
growing role of the holding Intesa Sanpaolo, led to a standardization to ensure an
homogeneous approach across the Intesa Sanpaolo Group. The resulting complexity, led
the Information Systems Service to prepare a review of the entire application software,
starting with an analysis of the AS- IS status.
3.4 The method
Our main purpose was a complete application map. This reflected the request of the
steering committee to create an integrated view that showed both the individual
building blocks and their main relationships. This implied the following steps:
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1. Collection of material produced in previous projects and that was available to
establish a baseline for the project;
2. Business process analysis;
3. Collection of information about applications used for factoring activities;
4. Verification of coverage of business processes by the applications;
5. Composition of the big picture using all the collected information.
In the following sections all these steps will be explained.
3.4.1 Prior Collection
To define a descriptive map of the application in relation to business processes, a
necessary step was to take stock of the situation regarding the two elements separately
considered.
A first comparison with users, has highlighted the presence of recent records (dating
back to a period of less than 12 months) for a detailed description of business
processes; as regards the part of the application, however, showed the complete
absence of a list of software or web applications adopted within the company.
At first it was necessary to cooperate with the Organization Office to get the business
processes that had to be used for carrying out the analysis. Entire business process
modeling is handled, within the company, with ARIS Platform.
Architecture of Integrated Information Systems (ARIS -1990), offers methods for
analyzing processes and taking a holistic view of process design, management, work
flow, and application processing. The ARIS approach not only provides a generic and
well documented methodological framework but also a powerful business process
modeling tool. The diagrammatic language that ARIS uses, is called EPC (Event-driven
Process Chain).
In EPCs, the dynamic behavior of business processes is modeled in terms of three main
modeling elements: functions, events, rule elements (or logical operators). These
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concepts are showed in Figure 26.
FIGURE 26: GENERIC EPC
Functions are the basic elements for EPC process modeling. They represent either
technical activities or activities performed on some objects with the purpose of
achieving one or more business goals. An activity can be performed by either a person
or an application system, and has inputs – such as information or raw material – and
outputs, such as new information or products. Furthermore, activities can consume and
create organizational resources during their execution. In figure 26, the notational
elements used to represent Functions are green rectangles with round corners.
An event represents a state which is relevant to the process management and affects
the flow of execution. They may be originated either internally in the execution of some
business process or may be created by actors which are external to the process. When
internally originated, events are said to establish the preconditions and postconditions
for each stage of the process. Preconditions represent a state of reality which triggers
one or more activities, while postconditions, in their turn, represent a state of reality
that exists only after the activity has been performed. In other words, an activity is
triggered by one or more events and one or more activities can trigger one or more
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events. In figure 26, events are illustrated by pink hexagons.
Rule elements (or logical operators) control the flow of the process model on the basis
of the results and effects of its preceding tasks. These rules (as explained in Table 8) are
used for creating “joins” and “splits” in the business process. The join connectors have
multiple incoming branches and one single outgoing branch and the split connectors
have one incoming branch and multiple outgoing branches. As syntax rule, splits from
functions are only allowed since the function is linked to a connector and each arc which
leaves the connector is linked to an event to represent the condition where the control
flow must follow (conversely, splits to functions are only allowed when the function is
preceded by a connector and each arc which reaches the connector is linked to an
event). Splits from events to functions are forbidden because it does not become
explicit the arc where the control flow must follow.
There are three types of logical operators (AND operator, XOR operator and OR
operator) that determines the execution flow. The AND-split triggers all outgoing
branches concurrently and AND-join propagates control only if all incoming branches
have already finished. XOR-split choices among one of multiple exclusive branches and
XOR-join waits for only one of the incoming branches. OR-split activates one or more of
multiple branches accordingly events while OR-join waits for one or more of the
incoming branches.
Rule Symbol Join Split
OR
Any incoming branch, or a combination of incoming branches, will initiate the outgoing branch
One or more outgoing branches will be enabled after the incoming branch finishes
XOR
One, and only one, incoming branch will initiate the outgoing branch
One, and only one, outgoing branch will be enabled after the incoming branch finishes
AND
The outgoing branch initiates only after all the incoming branches have been executed
Two or more outgoing branches are enabled after the incoming branch finishes
TABLE 8: LOGICAL OPERATORS
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Other symbols, which proved critical to the analysis, are:
The yellow rectangle, connected to a function, that represents the actor, person
or office, involved to carry out the activity;
The blue rectangle, with which are described tools or applications involved to
carry out the activities to which it is connected.
3.4.2 Business Process Analysis
Business Processes obtained from the Organization Office, are all collected in
“Operational Guides”, of which follows an anonymized example.
Since the document is produced directly from ARIS, interpreting the design process, the
original is written in Italian for business needs.
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Capitolo 1 - Apertura rapporti cedente - carico condizioni e attivazione
manutenzione dei fidi
Generareanagrafiche
1
Verificarecongruenza tra
delibera e fido
2
Disporremodello mastroe conto
3
Verificaresottoconto e
autonomie
4
Apriresottoconto
5
Verificarecongruenza
6
Rendere fido
operante
7
Aperto rapportocedente
Procedura
Budget -Microstrat...
Praticatrasmessa
Praticatrasmessa
Travasopratiche di fido
deliberate daConcessioneCredito
Travasopratiche di fidodeliberate daorgani superiori
Ufficio SegreteriaCredito e
Monitoraggio...
Ufficio Contratti e
Garanzie
Ufficio Contratti eGaranzie
Ufficio Contratti eGaranzie
Ufficio Contratti eGaranzie
Ufficio Contratti e
Garanzie
Ufficio Contratti eGaranzie
Effettuataapertura
anagrafica
Aperturaanagrafica
Primo contattocon il debitore -anche daServiceesterno
Deliberataconcessione di
credito
Marta Frascaroli
97
NORME GENERALI (GENERAL RULES)
Il presente processo si propone di definire le attività inerenti all'apertura del
rapporto cedente.
(This process aims to define the activities related to the opening of the
relationship with the client)
ISTRUZIONI OPERATIVE (OPERATING INSTRUCTIONS)
Il flusso di attività inizia con i seguenti casi (The flow of activities begins with
the following cases):
- Deliberata concessione di credito (Credit grant deliberated)
- Effettuata apertura anagrafica (Opening registry made)
- Pratica trasmessa (Dossier submitted)
ttività1_1
- Attività 1. L' Ufficio Segreteria Credito e Monitoraggio Rischi deve: Generare
anagrafiche
(Credit Office and Risk Monitoring Office must: Create personal data set)
_______________________________________________________________
Attività1_2
- Attività 2. L' Ufficio Contratti e Garanzie deve: Verificare congruenza tra
delibera e fido
(The Contracts and Warranties Office must: Ensure congruence between credit
limit and deliberation)
_______________________________________________________________
Attività1_3
- Attività 3. L' Ufficio Contratti e Garanzie deve: Disporre modello mastro e
conto
(The Contracts and Warranties Office must: Define the master and account
model)
_______________________________________________________________
Attività1_4
- Attività 4. L' Ufficio Contratti e Garanzie deve: Verificare sottoconto e
Marta Frascaroli
98
autonomie
(The Contracts and Warranties Office must: Ensure autonomy and subaccount)
________________________________________________________________
Attività1_5
- Attività 5. L' Ufficio Contratti e Garanzie deve: Aprire sottoconto
(The Contracts and Warranties Office must: open subaccount)
________________________________________________________________
Attività1_6
- Attività 6. L' Ufficio Contratti e Garanzie deve: Verificare congruenza tra
quanto indicato nella delibera e le informazioni caricate a sistema.
(The Contracts and Warranties Office must: Ensure congruence between what is
stated in the act and the information loaded on system)
________________________________________________________________
Attività1_7
- Attività 7. L' Ufficio Contratti e Garanzie deve: Rendere fido operante
(The Contracts and Warranties Office must: Making the credit limit operating)
L'esito finale del flusso è (the final outcome of the flow is):
- Aperto rapporto cedente: Il processo continua con il flusso di attività collegato
(Open relationship with the client: The process continues with the flow of
activities connected)
Marta Frascaroli
99
Activity inherent in the business process analysis was carried out by developing the
following steps:
1. Organization of the “Operational Guides” in a tree schema, following the
structure specified by the standards of the banking system;
2. Analysis of all processes described in the “Operational Guides”;
3. Extrapolation of information about tools and applications used in carrying out
the activities described in the processes;
4. Creation of an Excel document (Processes-Application Matrix) which resume all
processes and all tools or application mentioned.
Process – Application Matrix is one of the project outputs that will be explained in the
next section.
An example of the tree schema suggested by the banking system and used in ARIS for
the organization of processes is shown in Figure 27.
FIGURE 27: TREE SCHEMA EXAMPLE
Marta Frascaroli
100
3.4.3 Collection of information about applications
The next step, after have defining the tree schema of processes and all the references
about applications, was the creation of another Excel document, called Application Map.
This document is able to resume a set of characteristics relating to applications and
previously defined as “significant” at an analysis level.
The collection of all the application features has been made possible thanks to a series
of interviews submitted to key users.
To understand the logic with which the interviews were conducted, first we introduce a
view of Mediofactoring in terms of internal organization. Figure 28 shows the internal
organization diagram. The scheme, high-level, is made "anonymous" thanks to the
description of the only "directorates" without going into detail of the internal structure
of each block.
FIGURE 28: ORGANIZATION DIAGRAM
At first, were contacted the leaders of different directions; then, once introduced the
Chief Executive
Officer
Credit
Management
Sales
Management
Operations
Management and
Information
System
HR and
Organization
Intrenal
Auditing
Risk
Management
Administration
And
Control
Administration
Board
Legal
Management
Chief Executive
Officer
Credit
Management
Sales
Management
Operations
Management and
Information
System
HR and
Organization
Intrenal
Auditing
Risk
Management
Administration
And
Control
Administration
Board
Legal
Management
Chief Executive
Officer
Credit
Management
Sales
Management
Operations
Management and
Information
System
HR and
Organization
Intrenal
Auditing
Risk
Management
Administration
And
Control
Administration
Board
Legal
Management
Marta Frascaroli
101
project, has been requested the permission to interview some users. Key users to be
interviewed were indicated by the same direction and were available to complete a
“survey form” with general questions about the application in question.
3.4.3.1 The Survey Form
The collection was conducted through interviews with managers of information systems
and applications of internal Mediofactoring different directions. The survey form used,
is a semi-structured questionnaire which was sent to all respondents for a first part of
interviews, then completed personally.
Once all the survey forms was filled, has started the phase of data collection and
processing of project documentation.
Each interview was conducted following a unique survey form for all contexts analyzed
but that could, at the same time, take advantage of all the peculiarities of the different
applications considered.
The instrument was structured as follows:
Directorate: free field that the respondent must fill writing the Mediofactoring
directorate in which he works
Office: free field that the respondent must fill writing the Mediofactoring Office
which is the “Business Owner” of the application in question
Application Owner: free field that the respondent must fill writing the person of
the IT Team which is the “Owner” or the responsible of the application in
question
Application Under Review: free field that the respondent must fill writing the
name of the application in question
Nature of the Application: list with choices related to the different nature of the
application in question. Possible choices are, particularly:
o Portal (from Mediofactoring)
o External Portal (for this choice is also necessary to write the name of the
producing company)
Marta Frascaroli
102
o External Interface (for this choice is also necessary to write the name of
the producing company)
o Application from the Holding Intesa Sanpaolo
o Software package (for this choice is also necessary to write the version
number of the software)
o Factoring Management Application (from Mediofactoring)
Kind of “Factoring Management Application”: list with choices related to the
different kind of the application collected under the “Factoring Management”
label and which were produced by Mediofactoring. Possible choices are,
particularly:
o CICS Transaction
o BATCH Procedure
o Web Application
Operative Guide: expects an answer like "yes / no" to understand if, for the
application in question, were produced operational guides that can be used to
collect more detailed information without proceeding with further levels of user
interviews
Availability to provide a brief description of the application functionality: expects
an answer like “yes/no” to understand if the respondent is available for a
second, personal interview if the application operative guide was not be
produced. This second interview is important to collect more detailed
information about the application in question
An example of the survey form presented to the respondents is showed on the next
page.
Marta Frascaroli
103
Project: Information System - AS-IS Analysis
Information Collection about Applications
Directorate:_____________________________________________________________;
Office (Business Owner): __________________________________________________;
Application Owner (IT Team):_______________________________________________;
Application Under Review:_________________________________________________;
Nature of the application (Check one of the following):
Portal (FC)
External Portal
o Name of the Society:__________________________________________;
External Interface
o Name of the Society:__________________________________________;
Application from the holding
Software Package
o Version Number:_____________________________________________;
Factoring Management Application (FC).
If “Factoring Management Application” (Check one of the following):
CICS Transaction
BATCH Procedure
Web Application
Specify if an "Operative Guide", recently updated, exists:
Yes
No
If not, specify your availability to provide a brief description of the application
functionality:
Yes
No
The Information Systems Service is grateful for the cooperation.
Marta Frascaroli
104
Later, brief talks were set with available users to complete the description of the
functionality of the application under consideration.
3.4.4 Verification of coverage of business processes by the applications
The main objective of this step was to proceed with the process analysis by completing
the list of applications used to perform various activities.
With the first steps of the method applied was possible to obtain an image, but only
incomplete, of the information system. Direct comparison with users has revealed
inconsistencies or deficiencies in the process mapping, including, the most important:
Lack of applications introduced in the last year, especially web applications;
Lack of uniformity in the nomenclature used to describe an application;
Presence of now dismissed applications;
In general, a failure to "maintain" and update processes mapped has been
found.
These problems, encountered during construction, led the team to an iterative process
of checks and modifications to get the definition of a consistent documentation that
would allow proper management of the information system in its entirety.
An activity that has been done in this particular step was the creation or revision of
operational manuals relating to the most significant applications for factoring.
The more complicated to write, both for the complexity of the application, and for the
presence of different types of "permissions" for users at the time of access, has been
the manual for the application which helps the granting and the management of loans
to customers. The review of manuals, has highlighted other issues. The most significant
was, undoubtedly, the lack of communication between the different actors involved in
the management of applications. Emerged, in fact, that some changes to the
application, already operating in the production system, had not been communicated to
Marta Frascaroli
105
end users, so they were not aware, or were using the functionality of the application
incorrectly or not conforms to the reason for which it was created.
3.4.5 Creation of the Big Picture
All activities carried out following the method described at the beginning led to the
definition, as mentioned earlier, of several documents.
At the time of project approval, however, the request of the steering committee was to
have, as a result, a "snapshot" of the information system at present.
For this reason it was decided to summarize the information gained in a "context
diagram" for the applications.
In reference to the application, the “context diagram” takes the form of a "map" where
each block corresponds to an element (an application) and the different blocks can be
grouped by common characteristics, such as membership of a particular organizational
unit in the company or the "nature" of application itself.
Figure 29 shows an example model of a “context diagram” which refers to the
applications (La Valigetta dell’Architetto, Barroero 2010) [31].
Marta Frascaroli
106
FIGURE 29: CONTEXT DIAGRAM, THE APPLICATION MAP
A contextualization of the applications makes it easier to map business processes,
allowing you to associate the different features of each application to the activities to be
carried out within the process. For the perspective of an adequate information system
management, the result to be obtained is represented, for example, in Figure 30 (La
Valigetta dell’Architetto, Barroero 2010) [31].
Marta Frascaroli
107
FIGURE 30: APPLICATIONS/BUSINESS PROCESSES MAP
Another important function of a correct applications mapping, is an easier management
of the totality of the system against change. When, for example, a new application is
added, it is immediately possible, updating the map, to see the context in which it must
be inserted and which other applications will be able to interact.
This situation is represented in Figure 31 (La Valigetta dell’Architetto, Barroero 2010)
[31].
Customer IncentiveManagement
Contact Channel Management
Customer ContactManagement
CM Resource Management
Order Capture & Validation
Product CatalogueManagement
Campaign Management Sales Management Risk and Credit Management Trouble Management
Physical ResourceManagement
Virtual Resource ManagementLoyalty ProgrammeManagement
SIS XXXSIS
XXX
SIS
XXX
SIS
XXX
SISXXX
SIS XXX
SIS XXXSIS XXX
SIS XXX
SIS XXX
SIS XXX
SIS XXX
SIS XXX
Canali
Customer Management
Provisioning
Billing Provisioning
Order Fulfilment Coordination Subscription Management
Technology ResourceProvisioning
Customer Profile Management
SIS XXX
SIS XXX
SIS
XXX
UCS
SIS XXX
SIS
XXX
SIS XXX
SIS XXX
SIS XXX
SIS
XXX
SIS XXX
SIS XXX
Customer IncentiveManagement
Contact Channel Management
Customer ContactManagement
CM Resource Management
Order Capture & Validation
Product CatalogueManagement
Campaign Management Sales Management Risk and Credit Management Trouble Management
Physical ResourceManagement
Virtual Resource ManagementLoyalty ProgrammeManagement
SIS XXXSIS
XXX
SIS
XXX
SIS
XXX
SISXXX
SIS XXX
SIS XXXSIS XXX
SIS XXX
SIS XXX
SIS XXX
SIS XXX
SIS XXX
CanaliCanali
Customer ManagementCustomer Management
ProvisioningProvisioning
Billing Provisioning
Order Fulfilment Coordination Subscription Management
Technology ResourceProvisioning
Customer Profile Management
SIS XXX
SIS XXXSIS XXX
SIS
XXX
UCS
SIS XXXSIS XXX
SIS
XXX
SIS XXXSIS XXX
SIS XXXSIS XXX
SIS XXXSIS XXX
SIS
XXX
SIS XXXSIS XXX
SIS XXX
Marta Frascaroli
108
FIGURE 31: INFORMATION SYSTEM MANAGEMENT
The example in Figure 31 describes the inclusion of a new application (red block) within
an already organized context. Is immediately possible the identification of systems
impacted by the change (grey blocks). For these cases will be necessary to provide at
least one integrative stream of data with the new application.
In the next section will be presented the deliverables produced following the method
already described.
3.5 Deliverables obtained for the case study
Deliverables achieved by carrying out the various steps of the project were presented to
the steering committee gathered in a single document with the purpose of illustrating
the functional characteristics and composition of the Information System, as regards
informatics, with particular reference to the software components that support business
Marta Frascaroli
109
processes at various levels and links with external entities that interact with certain
processes because of their scope.
3.5.1 Context Diagram (Level 0)
The heart of the Information System consists of the application components that make
up the so-called Factoring System, which are connected, directly or indirectly,
application packages for specialized environment (such as accounting and supervision),
communication interfaces with the Holding and other external entities, reporting and
business intelligence systems, as well as the corporate website, complete with portals
for interaction with customers.
FIGURE 32: CONTEXT DIAGRAM – LEVEL 0
As you can see from the figure just above, the Information System is represented in
terms of logical blocks of the following applications:
Website and Portals;
INSTITUTIONAL WEB SITE and
MEDIOFACTORING PORTALS EXTERNAL PORTALS
CUSTOMER
RELATIONSHIP
MANAGEMENT
MANAGEMENT of MASTER DATA,
RELATIOSHIPS and ACCOUNTS
TRANSFERORS/DEBTORS
LOANS MANAGEMENT
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL
MANAGEMENT
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
EXTERNAL
INTERFACES
MANAGEMENT
APPLICATION
FROM Intesa
Sanpaolo
INSTITUTIONAL WEB SITE and
MEDIOFACTORING PORTALS EXTERNAL PORTALS
CUSTOMER
RELATIONSHIP
MANAGEMENT
MANAGEMENT of MASTER DATA,
RELATIOSHIPS and ACCOUNTS
TRANSFERORS/DEBTORS
LOANS MANAGEMENT
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL
MANAGEMENT
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
EXTERNAL
INTERFACES
MANAGEMENT
APPLICATION
FROM Intesa
Sanpaolo
Marta Frascaroli
110
Customer Relationship Management;
Management of Master Data, Relationships and Accounts Transferors/Debtors;
Loans Management;
Transferors/Debtors Operational Management;
Supervisory Management, Monitoring and Investigations;
Administrative Management and Accounting;
Data warehouse, Business Intelligence, Content & Document Management;
External Interfaces.
External Portals and Management Applications of the Holding are represented in the
context diagram with a dashed box because they do not reside on the technological
platform on which the “internal” Information System operates.
3.5.2 Detailed Context Diagram (Level 1)
Observed in detail, the functional blocks of the context level are composed of many
application elements that provide functionality to support business processes and
internal and external communications.
In Figure 33, it is possible to capture the structural complexity, that is a direct
consequence of the multiplicity of management and operating processes of the
company under study, and of existing regulations governing the factoring business in
our Country. These regulations include, for companies in the sector, the introduction of
specific components for reporting and supervisory controls.
Marta Frascaroli
111
FIGURE 33: CONTEXT DIAGRAM – LEVEL 1
Figure 34 shows the “nature” of Information System Applications, which result classified
as follows:
Transactional application on the host platform (Light Green);
Batch application on the host platform (Dark Green);
Transactional application with web interface (Web Application - Orange);
Application Package (Light Blue);
Web Sites (Pink);
External Interface to the Holding (Light Grey);
Applications / systems external to the Information System (White).
REPORTING
And
BUSINESS INTELLIGENCE
DOCUMENT STORAGE
INSTITUTIONAL WEB SITE and MEDIOFACTORING PORTALS
CLIENTS DEBTORSTRAVEL
AGENCIESDEALER
BOARD OF
DIRECTORSEXPORT SERVICES
DEBT COLLECTION
AGENCIES
LEGAL
DEPARTMENT
RISK POSITION
GUARANTEES
and INSURANCES
COLLECTIONSREMINDERS
CREDIT LIMIT
DOSSIER
ASSIGNMENT
LOADER
INTEREST RATE
PROPOSAL
CRM
ASSIGNMENT
FROM FOREIGN
CUSTOMERS
RELATIOSHIP
ANALYSIS
APPROVED
ACCOUNTING
SIGNATURE
ASSIGNMENT
INSPECTION
ASSIGNMENT
SUBMISSION
ACCOUNTING
GENERATION
FUNDING
FOREIGN CLIENT
CREDIT LIMIT
CUSTOMER RELATIONSHIP
MANAGEMENT
LOANS MANAGEMENT
SUPERVISORYANTI-MONEY
LOUNDERING
ACCOUNT
MASTER DATA
COUNTER
TERRORISM
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL MANAGEMENT
ADMINISTRATION
MANAGEMENTBUDGET ACCOUNTING
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
INTERNAL DOCUMENT
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
ACCOUNTS
MANAGEMENT
CLIENT CREDIT
LIMIT
DEBTORS
CREDIT LIMIT
MASTER DATA
DIGITAL SIGNATUREAGREEMENT
DATA ENRICHMENT
ACCOUNTS and
CONDITIONS
MANAGEMENT
MANAGEMENT of MASTER DATA, RELATIOSHIPS and ACCOUNTS TRANSFERORS/DEBTORS
DATA LOADER
OUTSTANDING
STATEMENT OF THE
ACCOUNT
POSTAL SERVICE
EXTERNAL INTERFACES
HOLDING
SUPERVISORY
ANTI-MONEY
LUNDERING
DATA REGISTER
PROVISIONS OF
RECEIPTS and
PAYMENTS
STATISTICS
CREDIT RATING
ACCOUNT PAYABLE
SERVICE FOR DIGITAL
FILLING
SYSTEM
INFORMATION
AGENCY
FACTOR CHAIN
INTERNATIONAL
REPORTING
And
BUSINESS INTELLIGENCE
DOCUMENT STORAGE
INSTITUTIONAL WEB SITE and MEDIOFACTORING PORTALS
CLIENTS DEBTORSTRAVEL
AGENCIESDEALER
BOARD OF
DIRECTORSEXPORT SERVICES
DEBT COLLECTION
AGENCIES
INSTITUTIONAL WEB SITE and MEDIOFACTORING PORTALS
CLIENTS DEBTORSTRAVEL
AGENCIESDEALER
BOARD OF
DIRECTORSEXPORT SERVICES
DEBT COLLECTION
AGENCIES
LEGAL
DEPARTMENT
RISK POSITION
GUARANTEES
and INSURANCES
COLLECTIONSREMINDERS
CREDIT LIMIT
DOSSIER
ASSIGNMENT
LOADER
INTEREST RATE
PROPOSAL
CRM
ASSIGNMENT
FROM FOREIGN
CUSTOMERS
RELATIOSHIP
ANALYSIS
APPROVED
ACCOUNTING
SIGNATURE
ASSIGNMENT
INSPECTION
ASSIGNMENT
SUBMISSION
ACCOUNTING
GENERATION
FUNDING
FOREIGN CLIENT
CREDIT LIMIT
CUSTOMER RELATIONSHIP
MANAGEMENT
LOANS MANAGEMENT
SUPERVISORYANTI-MONEY
LOUNDERING
ACCOUNT
MASTER DATA
COUNTER
TERRORISM
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL MANAGEMENT
ADMINISTRATION
MANAGEMENTBUDGET ACCOUNTING
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
INTERNAL DOCUMENT
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
ACCOUNTS
MANAGEMENT
CLIENT CREDIT
LIMIT
DEBTORS
CREDIT LIMIT
MASTER DATA
DIGITAL SIGNATUREAGREEMENT
DATA ENRICHMENT
ACCOUNTS and
CONDITIONS
MANAGEMENT
MANAGEMENT of MASTER DATA, RELATIOSHIPS and ACCOUNTS TRANSFERORS/DEBTORS
DATA LOADERMASTER DATA
DIGITAL SIGNATUREAGREEMENT
DATA ENRICHMENT
ACCOUNTS and
CONDITIONS
MANAGEMENT
MANAGEMENT of MASTER DATA, RELATIOSHIPS and ACCOUNTS TRANSFERORS/DEBTORS
DATA LOADER
OUTSTANDING
STATEMENT OF THE
ACCOUNT
POSTAL SERVICE
EXTERNAL INTERFACES
HOLDING
SUPERVISORY
ANTI-MONEY
LUNDERING
DATA REGISTER
PROVISIONS OF
RECEIPTS and
PAYMENTS
STATISTICS
CREDIT RATING
ACCOUNT PAYABLE
SERVICE FOR DIGITAL
FILLING
SYSTEM
INFORMATION
AGENCY
FACTOR CHAIN
INTERNATIONAL
POSTAL SERVICE
EXTERNAL INTERFACES
HOLDING
SUPERVISORY
ANTI-MONEY
LUNDERING
DATA REGISTER
PROVISIONS OF
RECEIPTS and
PAYMENTS
STATISTICS
CREDIT RATING
ACCOUNT PAYABLE
SERVICE FOR DIGITAL
FILLING
SYSTEM
INFORMATION
AGENCY
FACTOR CHAIN
INTERNATIONAL
Marta Frascaroli
112
FIGURE 34: CONTEXT DIAGRAM – NATURE OF APPLICATIONS
Context diagrams presented just above, are the result of a number of other analysis
made during the course of the various steps of the methodology applied. In the
following paragraphs, the matrices obtained will be reported in detail.
3.5.3 Prior Collection and Business Process Analysis
The matrix obtained by carrying out the first two steps of the method, shows the
relationship between business processes (in use at the time of preparation of this
document) and software applications used in the execution of these processes.
The Process-Application matrix provides specific information about the context of use of
each application. The outline of the process was drawn from the Operating Guide,
reflecting the structure defined by the Holding (Figure 35). This structure presents a
breakdown in 6 different sub-processes and applications are referenced in the
REPORTING
And
BUSINESS INTELLIGENCE
DOCUMENT STORAGE
INSTITUTIONAL WEB SITE and MEDIOFACTORING PORTALS
CLIENTS DEBTORSTRAVEL
AGENCIESDEALER
BOARD OF
DIRECTORSEXPORT SERVICES
DEBT COLLECTION
AGENCIES
LEGAL
DEPARTMENT
RISK POSITION
GUARANTEES
and INSURANCES
COLLECTIONSREMINDERS
CREDIT LIMIT
DOSSIER
ASSIGNMENT
LOADER
INTEREST RATE
PROPOSAL
CRM
ASSIGNMENT
FROM FOREIGN
CUSTOMERS
RELATIOSHIP
ANALYSIS
APPROVED
ACCOUNTING
SIGNATURE
ASSIGNMENT
INSPECTION
ASSIGNMENT
SUBMISSION
ACCOUNTING
GENERATION
FUNDING
FOREIGN CLIENT
CREDIT LIMIT
CUSTOMER RELATIONSHIP
MANAGEMENT
LOANS MANAGEMENT
SUPERVISORYANTI-MONEY
LOUNDERING
ACCOUNT
MASTER DATA
COUNTER
TERRORISM
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL MANAGEMENT
ADMINISTRATION
MANAGEMENTBUDGET ACCOUNTING
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
INTERNAL DOCUMENT
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
ACCOUNTS
MANAGEMENT
CLIENT CREDIT
LIMIT
DEBTORS
CREDIT LIMIT
MASTER DATA
DIGITAL SIGNATUREAGREEMENT
DATA ENRICHMENT
ACCOUNTS and
CONDITIONS
MANAGEMENT
MANAGEMENT of MASTER DATA, RELATIOSHIPS and ACCOUNTS TRANSFERORS/DEBTORS
DATA LOADER
OUTSTANDING
STATEMENT OF THE
ACCOUNT
POSTAL SERVICE
EXTERNAL INTERFACES
HOLDING
SUPERVISORY
ANTI-MONEY
LUNDERING
DATA REGISTER
PROVISIONS OF
RECEIPTS and
PAYMENTS
STATISTICS
CREDIT RATING
ACCOUNT PAYABLE
SERVICE FOR DIGITAL
FILLING
SYSTEM
INFORMATION
AGENCY
FACTOR CHAIN
INTERNATIONAL
REPORTING
And
BUSINESS INTELLIGENCE
DOCUMENT STORAGE
INSTITUTIONAL WEB SITE and MEDIOFACTORING PORTALS
CLIENTS DEBTORSTRAVEL
AGENCIESDEALER
BOARD OF
DIRECTORSEXPORT SERVICES
DEBT COLLECTION
AGENCIES
LEGAL
DEPARTMENT
RISK POSITION
GUARANTEES
and INSURANCES
COLLECTIONSREMINDERS
CREDIT LIMIT
DOSSIER
ASSIGNMENT
LOADER
INTEREST RATE
PROPOSAL
CRM
ASSIGNMENT
FROM FOREIGN
CUSTOMERS
RELATIOSHIP
ANALYSIS
APPROVED
ACCOUNTING
SIGNATURE
ASSIGNMENT
INSPECTION
ASSIGNMENT
SUBMISSION
ACCOUNTING
GENERATION
FUNDING
FOREIGN CLIENT
CREDIT LIMIT
CUSTOMER RELATIONSHIP
MANAGEMENT
LOANS MANAGEMENT
SUPERVISORYANTI-MONEY
LOUNDERING
ACCOUNT
MASTER DATA
COUNTER
TERRORISM
SUPERVISORY MANAGEMENT, MONITORING, INVESTIGATIONS
TRANSFERORS/DEBTORS OPERATIONAL MANAGEMENT
ADMINISTRATION
MANAGEMENTBUDGET ACCOUNTING
ADMINSTRATIVE MANAGEMENT AND ACCOUNTING
DATAWAREHOUSE - BUSINESS INTELLIGENCE - CONTENT & DOCUMENT MANAGEMENT
INTERNAL DOCUMENT
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
HUMAN RESOURCES
MANAGEMENT
CRM
MANAGEMENT
APPLICATIONFROM ISP
FINANCIAL
STATEMENT
SUPERVISORY
VOLATILY
ADJUSTMENT
GROUPS REGISTER
USERS SECORITY
MANAGEMENT
HELP DESK
FINANCIAL RISK
ASSESSMENT
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
INTERNET BANKINGINTERNAL REVENUE
SERVICE
INFORMATION
AGENCY
EXTERNAL PORTALS
FACTOR CHAIN INTERNATIONAL
ACCOUNTS
MANAGEMENT
CLIENT CREDIT
LIMIT
DEBTORS
CREDIT LIMIT
MASTER DATA
DIGITAL SIGNATUREAGREEMENT
DATA ENRICHMENT
ACCOUNTS and
CONDITIONS
MANAGEMENT
MANAGEMENT of MASTER DATA, RELATIOSHIPS and ACCOUNTS TRANSFERORS/DEBTORS
DATA LOADER
OUTSTANDING
STATEMENT OF THE
ACCOUNT
POSTAL SERVICE
EXTERNAL INTERFACES
HOLDING
SUPERVISORY
ANTI-MONEY
LUNDERING
DATA REGISTER
PROVISIONS OF
RECEIPTS and
PAYMENTS
STATISTICS
CREDIT RATING
ACCOUNT PAYABLE
SERVICE FOR DIGITAL
FILLING
SYSTEM
INFORMATION
AGENCY
FACTOR CHAIN
INTERNATIONAL
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Operational Guide to Level 6 of the sub-processes.
FIGURE 35: PROCESS – APPLICATION MATRIX
3.5.4 Collection of information about applications
The result of the process of collecting information about applications in use, was a
second matrix, called the "Applications Matrix (ownership)". The purpose of this
deliverable is to relate the application components of the logical model of level 1, the
reference name given in the Operating Guide, a brief description, the nature of the
application, the owner, on the business side (functional knowledge) and on the IT side
(technical and functional knowledge) and other information about the applications (for
example, in case of external software, the vendor name and / or version).
An extract of the matrix is shown in Figure 36.
FIGURE 36: APPLICATIONS MATRIX (OWNERSHIP)
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For business purposes, all information relating to the application, obtained in the course
of the project activities and subsequent iterative cycles of testing and modification, have
been collected in a structured document that would allow to have a correct view of the
current state of the internal Information System and that was easily maintainable. The
document describes, in detail for each application, functionalities and nature. For
external systems and packages is also referred to the supplier. Finally, for applications of
the Factoring System are identified interactions between the various components.
Below are the results obtained, divided according to the structure of the big picture.
3.5.4.1 Website and Portals
Name Description Nature
Client Portal Through this portal the customer can access a range of
applications, namely:
Upload File
Client assessing request
Upload Assignment
Send Letter of Assignment with Digital Signature
Upload Excel
Visualize the detailed debtors Outstanding
Visualize the summary debtors Outstanding
Visualize, Online, the account statement.
In the "My Documents" area, the user has access to the
archive of accounting documents and possibility to obtain a
copy of these documents in pdf format. In the "Report"
area has access to reporting services generated daily by the
occurrence of certain "events", has access to periodic
standard reports (weekly / monthly), prepared by
Mediofactoring. The “traces” area provides the user the
path of the flows generated by the host and stored on the
worksite.
Interactive
Portal
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Name Description Nature
Debtors
Portal
Portal of the debtors, through which the user can search
documents within the world of the “debtor”. It contains a
“Report” area where you can consult the reports only
about "bills to expire in 10 days". The user can also access
two applications: “Debtor situation summary” and
“Statement of the Account”.
Interactive
Portal
Dealers
Portal
Dealer Portal: The site allows dealers, classified as debtors
of the factor, to access to a range of applications, such as:
Dealer situation
My Situation
Unlock Certificates in presence of “second-hand
vehicles”
List of models – second-hand vehicles
Request for direct debit
Visualize the detailed debtors Outstanding
Visualize the summary debtors Outstanding
The user can also interact with the factor to request for
printing of dematerialized certificates of conformity, to
consult the account position; to request a reprint of
certificates already paid to the factor.
Interactive
Portal
Travel
Agency
Portal
Portal dedicated to Travel Agents. It allows you to consult
the Statement of the account and the details of the trip. It
includes a “Support” area where the user can access the
list of tour operators, and a dedicated “Report” area.
Interactive
Portal
Debt
Collection
Agency
Portal
Portal dedicated to debt collection agencies. The portal is
divided into two subsystems.
Credit Collection: portal dedicated to the collection
agencies headed by the Credit Office Collection. In this case
the portal is only used for the report discharge. There is
also an area where the user can specify paths, if they are
text or excel formats.
Debtors: portal dedicated to debt collection agencies,
linked to the credit area. This portal allows users to upload
notes about the phone collection activity.
Interactive
Portal
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Name Description Nature
Board of
Directors
Portal
Thanks to this portal is possible to publish the order of
business, 2 days before the session. For each item you can
access the associated documents.
There is also an area "My Documents" in which the user
can view the history, legislation and corporate documents
of the Group.
Interactive
Portal
Export Portal Portal dedicated to the management of the Easy Export
Product. This portal allows the bank to "commission" to the
factor activities related to the factoring process. In this case
the customer is the bank and provides hedging foreign
debtors. The portal, used by back office allows the user to
upload files.
Interactive
Portal
Services
Portal
Portal dedicated to the services company. Currently the
portal does not contain links to applications and no user
has been enabled (portal not yet used).
Interactive
Portal
3.5.4.2 External Portals
Name Description Nature
Information
Agency
Portal that allows the Data Base consultation about clients
(there are two different portals for Italian clients and
foreign clients).
External
Portal
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Name Description Nature
Internal
Revenue
Service
Application distributed by the Revenue Agency to manage
the files containing computerized documents to be
submitted to the Agency the same and the receipt files to
be returned. The Tasks menu allows the user to access to
the following functions:
− multiple-user, to configure the application if multiple
users use the same workstation;
− options, to change prints, to indicate how to access the
Electronic Service, to set the signature management using
a smart card, etc..;
− history, to consult the summary of operations carried
out, for what concerns the generation of the security
environment and the authenticity of the file.
External
Portal
Internet
Banking
Internet banking system, to manage the factor checking
account.
External
Portal
Factor Chain
International
Private Forum that Factor Chain International to the
subsidiaries, in addition to the public site, to give a legally
definition in the exchange of data, transfers and so on.
External
Portal
3.5.4.3 External Interfaces
Name Description Nature
Information
Agency
Data flows between the factoring management and the
Information Agency DB (on-demand and monitoring
stream flow); This interface offers solutions to assess the
solvency of companies and individuals, using different
kind of information. This information helps to assess the
economic structure and the reliability of financial
companies, but also to build smart lists of companies for
marketing purposes and to study the positioning of
companies on the markets.
External
Interface
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Name Description Nature
Holding Interface used to manage data flows to and from the
holding company; in particular are included under this
label flows related to: DATA REGISTER (Data flow to
populate the “master data register”), CREDIT RATING
(data stream to communicate the overall risk position of
the client and its probability of insolvency), PREVISIONS
OF RECEIPTS and PAYMENTS (Provisions of payment
through cash order and bank transfers collected on the
factor’s account), STATISTICS (Data flow between the
factor and the bank with which is possible to manage
trade statistics), SUPERVISORY (Data flow between the
factor and the bank with which is possible to manage the
supervisory reports), ANTI-MONEY LAUNDERING (Flow of
data relating to the rules on Anti-Money Laundering that
the factor must send to the bank), ACCOUNT PAYABLE
(Data flow from the holding to the factor, which handles
the sending of acknowledgments and invoices).
External
Interface
Postal Service Flow of data between the factoring system and the postal
DB to post the correspondence generated by the factor.
External
Interface
Service for
Digital Filling
System
Interface that allows the factoring system to send and
store physically and in a dematerialized way relevant,
contractual documentation. Once a week, the documents
are scanned and stored on site for consultation.
External
Interface
Factor Chain
International
External Interface which allows the exchange of personal
data flows between the factor and Factors Chain
International to perform mutual evaluations. Factors
Chain International, widely recognized as the FCI, is a
global network of leading factoring companies in the
world, whose common goal is to facilitate the negotiation
between the international factoring and related financial
services. FCI is used mainly to obtain / provide
information on Italians debtors in relationships
characterized by the presence of foreign clients and the
Italian debtors.
External
Interface
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3.5.4.4 Factoring System
Customer Relationship Management
Nome Descrizione Natura
CRM CRM (Customer Relationship Management) for management of
prospects.
Package
Management of Master Data, Relationships and Accounts Transferors/Debtors
Name Description Nature Interact with..
Master Data Transaction set that allow the user to
automatically update the database of
business information based on the
information of clients and debtors
obtained by the Information Agency.
On the Master data register is always
saved the name on which the
insurance institution (especially for
foreign debtors) has signed the bill.
Also included are transactions /
procedures that allow the comparison
with the terrorist lists.
CICS
Transaction
Credit Limit
Dossier,
Information
Agency,
Supervisory.
Data Loader Allows the client, who has acquired
the credentials, to enter personal
data of its own debtors. The debtors
data entered by the client are then
integrated by the factoring system
after the necessary checks carried out
on other data set, such as Information
Agency or Master data ones.
Web
Application
Master Data (DB),
assignment
loader, data
enrichment
procedure.
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Name Description Nature Interact with..
Data
Enrichment
Procedure
Procedure of the automatic system
(batch) which verifies the data on
debtors to be evaluated and
determines if they have already been
surveyed, if they are not, the system
sends in a request stream the
complete registry and risk data to the
Information Agency. Always
automatically, based on some
parameters established a priori,
decide whether to accept, reject or
postpone the evaluation of the
client’s credit request, thus creating
its practice.
Batch Data Loader, DB
Master Data,
Information
Agency.
Digital
Signature
Procedure
Application used primarily by the
Commercial office and the Contracts
and Warranties office. Allows the user
to consult, for each practice of trust, a
summary of the practice, which are
the salient features, and all data
related to the legal organs of the
reference company, complete with
their signatures (Signatures
Spacement ).
Web
Application
Client DB, invoice
DB; Credit
assessment; Credit
Limit Dossier.
Loans Management
Name Description Nature Interact with..
Credit
Limit
Dossier
Web Application and set of batch procedures
that allow the user to assign a line of credit to
a customer, either the client or the debtor,
analyzing in detail the data of the budget and
the various indices of risk.
Web
Application
All the others
in this table
and Factor
Chain
International.
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Name Description Nature Interact with..
Foreign
Clients
credit
limit
FCI provides this product to allow the factor
to interact with the subsidiaries all over the
world. In particular, the system is used to:
propose or get a new customer;
communicate and receive pricing
propose or receive a request for
debtors assessment
send the results of the debtor
assessment: not only an immediate
feedback, but also the notice of
plafond reduction or withdrawal
send or recieve assignments
cancel or change assignments
send and receive notices of payment
(Payment/Remittance) (without cash
flow)
send and receive communications
about indirect payment
Communicate payments under
warranty (notice, no cash flow)
communicate and receive no financial
releases
send and receive business termination
send and receive dispute reports
receive notification of charged fees
enrich/ update/ change data
exchange tables
Messages sent between systems
Request for debtor assessment
arriving from foreign export Factor
Outcome of debtor assessment to
foreign exports factors
(grant/reduction/withdrawal)
Requests openings registries to
foreign import factors
Assignment of invoices or credit
notes in/out
Web
Application
Client’s
Assessment,
Assignment
Loader,
Collections.
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Name Description Nature Interact with..
Communication of payment to
foreign export factors
Clients/Debtors Operational Management
Name Description Nature Interact
with...
Assignment
Loader
The application of "Assignment Loader" is
designed for customers already assessed by
the factor and for which there is regular
contact to provide the passage of
assignment. The user can choose one of the
four channels provided in the application:
FTP (mainly used by customers who have
large systems on their side and then decide
to send the assignments data in a single
stream and automatically), UPLOAD, which
in turn can be done via DATA ENTRY (direct
input of data relating to the assignment -
document number, amount, maturity and
choice of invoice and credit note), loading
from EXCEL (the document is generated by
the system of the client and exported to
Excel; Excel file is then loaded by the
application of assignments load), SHARED
PATHS (data received asynchronously from
customers very "old").
An internal version of the Factoring system
allows the Commercial office managers to
enter assignments data instead of the
sellers.
Web
Application
Customers’
Systems,
Assignment
Inspection.
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Name Description Nature Interact
with...
Assignment
Inspection
When invoices are uploaded, go to the
“Assignment Inspection” system, which
deals with manipulating the "raw"
assignment by applying a formal control
that is used to assess that all parameters are
entered in conformity with client’s type of
contract. The formal control is carried out
by OFI, that has no device power. The
ultimate goal of the process initiated at the
Assignment Inspection System is to apply to
the assignment an "Account Number", but
to achieve this, it requires the approval of
the Commercial Directorate (Assignment
Submission procedure). For this reason,
after the formal control, Assignment
Inspection System remains in standby mode
until the response arrives from Sales.
Web
Application
Assignment
Loader,
Assignment
Submission.
Invoice DB.
Assignment
Submission
With the Assignment Submission System
the Commercial Directorate decides if an
assignment should be transferred or not
and if the client has to be paid. When the
decision is taken, it changed the status of
Assignment Inspection System (from
Standby to Active), the bills pass in the
operating environment and the money is
anticipated to client.
Web
Application
Assignment
Inspection.
Relatioship
Analysis
Dashboard that allows managers (Debtors
Management Office) to monitor and
evaluate the situation of the debtors. In
case of any abnormality detected is passed
to the Notes Management.
Web
Application
Invoice DB
and Debtors
DB;
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Name Description Nature Interact
with...
Outstanding Web Application used by all offices in the
factor company, which evaluate or use in
any way the relationship Client- Debtor, or
by external customers. The application, in
fact, allows the user to have an overview of
the situation on a particular relationship by
providing three key features:
- Outstanding: for a given relationship
displays all the invoices selected, based on
search criteria entered by the user. The bills,
in particular, can be "Collected", "On Being"
or "Expired" and, for each record can be
displayed or not the relative movements of
the ledger.
- Summary of Situation: evaluate the
summary situation from the standpoint of
the debtor. It has a table that included, for
each client in which the debtor has a
relationship, the totals of outstanding
invoices and overdue invoices (with respect
to the deferred payment of the supplier and
of the factor).
- Debtor Position: presents a table on some
characteristics of the selected debtor:
- Application amount
- Utilization
- Utilization detail.
The tables the user sees can be imported
into excel.
Web
Application
Invoice DB,
Clients and
Debtors DB;
Relatioship
Analysis;
Client’s
assessment.
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Name Description Nature Interact
with...
Statement
of the
Account
Application used by all offices in the client
companies. Displays a table summarizing
the situation of the balance of the client.
The table fields displayed to the user are:
- Client code
- Account number
- Account type
- Description
- Amount financed
- Assignment amount
For each movement can be seen the detail.
The tables that the user views can be
exported in Excel format.
Web
Application
Invoice DB,
Clients DB.
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Name Description Nature Interact
with...
Interest
Rate
Proposal
Application used primarily by OFI and
Assignment Management office (even if in
reality the goal is to make the application
available for all the offices that deal with
relationships, so even the offices of special
products such as Fuel cards and
Travelfactoring). With a monthly automatic
procedure (batch) is possible to make a
census of the files of invoices to extract, for
each relationship Client - Debtor, which are
the invoices unpaid. The extracted records
are presented in table to the user of Credit
Management, which will determine, based
on the characteristics of the contract with
the customer, the correctness of the data
presented by the system and decide
whether the proposal should be sent to the
office of interest OFI or not. The OFI office
evaluates the proposal and, through the
host, issues the invoice. The original copy of
the invoice, a PDF version with the various
amendments and an Excel version with the
various indices / rates, are then published in
detail on the internal Document
Management System.
Web
Application
Client DB,
Debtors DB,
Invoice DB;
Client
Assessment,
Collections,
Internal
Document
Management
app.
Supervisory Management, Monitoring and Investigations
Name Description Nature
Supervisory Historical "Platform" on which run the actual
applications relating to reports of the Central Risk
and Compliance Committee.
CICS Transactions
/ Interface
Anti-Money
Loundering
Application for consultation and creation of the
pool of files to be sent to the Bank for Anti -
money laundering.
Package
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Name Description Nature
Counter
Terrorism
It supports users in the verification of the
presence of reported subjects in the anti-
terrorism lists.
Package
Administrative Management and Accounting
Name Description Nature
Accounting Application for the management of
accounting, budget and treasury.
Package
Administration
Management
It allows you to balance the ledger with the
bank statements.
Package
Budget It support users in completing the budget. Web
Application
3.5.4.5 Management Applications from Holding
Name Description Nature
CRM CRM (Customer Relationship Management); the
application is no longer used by early 2011
External SW
Groups
Register
Application that allows the control of business
groups' data.
It includes the function SAG (Administrative Group
State) that represents the client status (eg Operating,
Grounding, etc. ..) that the customer has at the
holding Group level. The client status of each
individual Group companies should be closely aligned
with the SAG. Interacts with: Credit Limit Dossier.
External SW
Users Security
Management
Application used to handle requests for
authorizations in the area of computer security, in
particular, are managed Username and Password,
credentials for access to particular features of the
information system.
External SW
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Name Description Nature
Financial
Statement
Computerized system for the preparation of financial
statements which, in particular, allows to carry out
activities such as:
acquire the Italian company budgets (capital
and people) and foreign companies
reclassify budgets on schemes aiming
economic and financial analysis
create "clusters" of companies with defined
characteristics
compare results with those of its business
sector or of a specific user-defined aggregate
select the companies responding to a specific
user-defined economic and financial profile
census of the bonds of addiction (legal and
economic) between business and groups and
monitor the control perimeters
review and reclassify the corporate balance
sheet
CICS
Transaction/
Interface
Financial Risk
Assessment
The Risk for Credit Central is an Information System
on the indebtedness of the customers of banks and
financial intermediaries placed under supervision.
Through this centralized service is possible to make
an assessment of the creditworthiness of customers
and, in general, the analysis and management of
credit risk.
The aim is to help improve the quality of assets of
the intermediaries involved and, ultimately, to
increase the stability of the banking system.
In the analysis of credit risk is also included an
indication of the PCR (Overall Position Risk) and
Rating.
External SW
Supervisory
Volatily
Adjustment
It allows to verify the supervisory communications.
External SW
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Name Description Nature
Help Desk Application used to provide the factor in response to
questions from the Help Desk.
Package
Human
Resources
Management
It allows the management of the company's
employees.
Package
3.5.4.6 Content and Document Management - Datawarehouse and Business
Intelligence
Name Description Nature
Reporting and
Business Intelligence
Manages the integration of the budget plan of
the marketing department.
Package
Internal Document
Management
Includes procedures for managing and archiving
documents and applications to manage the
intranet.
Package
Document Storage Allows a normative storage and the consultation
of revenue books (the historic just before 2010)
External
Portal
A specific analysis, performed in the context of these activities, is related to data flows
existing between the company under review and its Holding. In figures 37 and 38, are
reported, respectively, the data flows existing between the Factoring Company and the
Holding and the data flows existing between the Holding and the Factoring Company.
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FIGURE 37: DATA FLOW BETWEEN THE FACTORING COMPANY AND ITS HOLDING
FIGURE 38: DATA FLOW BETWEEN HOLDING AND THE FACTORING COMPANY
Flussi inviati da Mediofactoring a ISP
Movimenti di incassi e pagamento
Dati anagrafici della clientela e di merito
creditizio
Richieste di Bilanci Ce.Bi.
Disposizioni RID Disposizioni Ri.Ba.Richieste Allineamento
RIDDisposizioni Bonifico
Fidi deliberati Clienti ad incaglio Clienti in sofferenza Clienti in pre default Garanzie attive Anagrafiche
Banca d’Italia
Centrale rischi Vigilanza
Bilanci IAS (quale voce??)
Statistici di business
SID Tableau de bord
CRM garanzie
Flussi inviati da Mediofactoring a ISP
Movimenti di incassi e pagamento
Dati anagrafici della clientela e di merito
creditizio
Richieste di Bilanci Ce.Bi.
Disposizioni RID Disposizioni Ri.Ba.Richieste Allineamento
RIDDisposizioni Bonifico
Fidi deliberati Clienti ad incaglio Clienti in sofferenza Clienti in pre default Garanzie attive Anagrafiche
Banca d’Italia
Centrale rischi Vigilanza
Bilanci IAS (quale voce??)
Statistici di business
SID Tableau de bord
CRM garanzie
Flussi ricevuti da Intesa Sanpaolo
Movimenti di incasso e pagamento
Bilanci Ce.Bi. ordinari e consolidati
Dati anagrafici banche e comuni italiani
RID insoluti
Dati anagrafici della clientela e di merito
creditizio
RID accreditati Ri.Ba. insolute Ri.Ba. accreditateBonifici accreditati (tutti i
conti correnti)Esiti Allineamento RID
Esito invio disposizioni di bonifico
Posizione complessiva di
rischio (PCR)
Rating (probabilità di
default)Stato amministrativo di
gruppo (SAG)
Flusso “vetrina”
Flusso specifico per
Mediofactoring e suo diagnostico errori
Soggetti ex art. 136 TUBAnagrafe di gruppo (3 flussi con contenuto da
identificare)
Codi ABI delle banche Codici CAB delle bancheCodici Comuni Italiani per
SISBA
Cambi giornalieri delle divise
Riconoscimenti e fatture passive da SAP
Flussi ricevuti da Intesa Sanpaolo
Movimenti di incasso e pagamento
Bilanci Ce.Bi. ordinari e consolidati
Dati anagrafici banche e comuni italiani
RID insoluti
Dati anagrafici della clientela e di merito
creditizio
RID accreditati Ri.Ba. insolute Ri.Ba. accreditateBonifici accreditati (tutti i
conti correnti)Esiti Allineamento RID
Esito invio disposizioni di bonifico
Posizione complessiva di
rischio (PCR)
Rating (probabilità di
default)Stato amministrativo di
gruppo (SAG)
Flusso “vetrina”
Flusso specifico per
Mediofactoring e suo diagnostico errori
Soggetti ex art. 136 TUBAnagrafe di gruppo (3 flussi con contenuto da
identificare)
Codi ABI delle banche Codici CAB delle bancheCodici Comuni Italiani per
SISBA
Cambi giornalieri delle divise
Riconoscimenti e fatture passive da SAP
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As the factoring company is a part of a large banking group, the management of internal
information system is more complex because, often, the legislation concerning the
processing of data and, more generally, suggestions about applications for internal use
arrives from the Holding and it is not possible to think about an independent, internal
management.
3.6 Positioning of the work performed on TOGAF
Activities carried out in Mediofactoring S.p.A for the IT mapping project, may be
considered within the Framework TOGAF as part of the ADM cycle [11]. As introduced in
Chapter 1, ADM is composed of an iterative cycle of continuous architecture definition
and realization that allows organizations to transform their enterprises in a controlled
manner in response to business goals and opportunities.
In this case study, the business goal was to map the AS-IS structure of the enterprise IT,
and it was reached following the first steps of the ADM cycle, as shown in Figure 39.
FIGURE 39: PHASES OF THE ADM CYCLE USED FOR THE CASE STUDY
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Let us now describe the activities related to each phase.
3.6.1 Prelim: Framework and principles
At this stage, the use of TOGAF to perform the assigned project has been proposed to
the steering committee. The strengths of the frameworks evaluated in this context are
the following:
TOGAF is a “Open Framework”, so it does not need licence to be used
TOGAF is a generic framework that can be used in really different kind of
environments and it seems to be suitable, particularly, for banking sector too.
TOGAF provides a flexible and extensible content framework that underpins a
set of generic architecture deliverables, so it leaves to the architect the choice of
models that best fit the case study to suit business requirements
3.6.2 Architecture Vision
At this stage, the project work has been positioned on the four-levels architecture view.
As introduced in Chapter 1, TOGAF deals with four architectures that are commonly
accepted as subsets of an overall enterprise architecture, namely: Business Architecture,
Data Architecture, Application Architecture, and Technology Architecture.
Business Architecture defines the business strategy, governance, organization, and key
business processes; models that can be used in this domain are, for example, notations
that represent business process and that considers process from an activity view (BPMN
– Business process Model and Notation, EPC – Event driven Process Chain etc..).
Data Architecture describes the structure of an organization’s logical and physical data
assets and data management resources; an example of model that can be used for this
context is the ER (Entity – Relationship) representation of the Data Base.
Application Architecture provides a blueprint for the individual application systems to
be deployed, their interactions, and their relationships to the core business processes of
the organization; models that can be used at this level are, for example, application
maps or several views that relate applications with single functions or activities of a
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process. For this kind of “views”, tabular models are particularly suitable and TOGAF
provides a lot of them.
Technology Architecture describes the logical software and hardware capabilities that
are required to support the deployment of business, data, and application services. This
includes IT infrastructure, middleware, networks, communications, processing,
standards, etc; models that can be used at this level are, for example, collaboration or
sequence diagrams.
Four levels are represented in Figure 40.
FIGURE 40: FOUR ARCHITECTURE LEVELS
The integration of four domains, is, then, made possible by the use of other tools and
models that allow various levels to "communicate" with each other. These tools can be,
for example:
Assembly Lines: The diagram of Assembly Lines allows architect to model the
process, which brings down the use cases diagram (first step of the analysis and
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design of information system) from the analysis of business. The upper part
contains the portion of the business model question. The lower part contains the
assembly lines, which contain information elements to select candidates. The
middle part maps “writing” or “reading” of some business activities on the IT
components. The choice of “writing” or “reading” in the middle part identifies
the use cases relating to disclosure requirements of the information system
supporting the process identified.
Use Case Diagram: In the UML (Unified Modeling Language), a Use Case Diagram
is a diagram dedicated to the description of the functions or services offered by a
system, as they are perceived and used by actors who interact with that system.
They are mainly used in the context of the Use Case View of a model, in which
case it can be seen as an instrument of representation of the functional
requirements of a system.
FIGURE 41: FOUR LEVELS INTEGRATION
In the case study, as the business requirement is the definition of the application map,
the only two levels considered are business architecture and application architecture.
3.6.3 Business Architecture
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A possible starting point for the identification of applications of Mediofactoring S.p.A,
was given by the analysis of business processes, in which are described some
components of the system that carry out certain activities. Thus, at this level, the main
activity has been the information extraction about applications from business processes.
The list of applications extracted with this activity has been, then, compared with the list
of applications given by users.
3.6.4 Application Architecture
At this step, the main activity carried out was the mapping of applications, that allowed
to organize the applications’ features on a tabular view. TOGAF suggests several tabular
models to be used at this level; the most significant are shown in following Figures.
FIGURE 42: LOGICAL APPLICATIONS COMPONENTS TO BUSINESS FUNCTIONS
FIGURE 43: PHYSICAL APPLICATION COMPONENTS MAP TO ROLES
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FIGURE 44: LOGICAL APPLICATION COMPONENTS INTERACTION MAP
FIGURE 45: PHYSICAL APPLICATION COMPONENTS MAP TO ORGANIZATION'S UNITS
Models suggested by TOGAF [11] have been adapted to the case study and have been
transformed in the models presented in previous sections, namely:
Process – Application Matrix (Figure 35);
Application Matrix – Ownership (Figure 36);
Application Tables, in which are described, where possible, the interactions with
other Information System’s components.
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4 – Conclusions
Our work refers to the Enterprise Architecture, and implements the “ Business Layer”
and “Application Layer”, as they were defined in Chapter 1.
Let us first consider the modelling and method aspects of our work. For an integrated
management of Information Systems, the map of processes and applications and a
consistent documentation on AS-IS situation provide the basis for a structured
identification of issues. Therefore the TO-BE structure of processes and systems can be
conceived by specifically addressing open issue and through a fit-gap analysis. In our
case study we focused on AS-IS analysis. TOGAF proved to be a highly effective
framework to support architects because it perfectly fits the context and, furthermore,
guides the work team by a sequence of proven and consistent steps. In the definition of
a TO-BE environment, instead, TOGAF does not provide "automatically" an optimal
solution that simply stems from the AS-IS analysis. But, when the solution is defined, the
framework guides the architects in an exhaustive fit-gap analysis that identifies the
changes to be made.
Our analysis has also highlighted some critical aspects that, however, are quite common
across banks:
Business process automation has a very loose alignment with business strategy,
thus confirming that a continuous management of IT alignment (as
recommended by IT management theoreticians) is really needed.
Overlap and misalignment of applications: many applications are old and
obsolete: CICS transactions and BATCH programs were accumulated over years
without being integrated and optimized; in recent years web applications have
been introduced, but they only partly replace the earlier systems.
Users do not know applications and application knowledge has to be
reconstructed almost from a green field.
A lack of architectural approach to enterprise applications (really surprising in
banking that is the most regulated industry) that leads to a bottom-up day to day
approach.
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These critical points, however, do not prevent systems to work and make their job. So
the business goes. A potential risk may come not from consolidated competitors, that
are probably experiencing a similar situation, but from a potential new comer that can
enjoy up to date technologies and, therefore, much lower cost and higher business
performances. In fact, a total reshape of existing systems require a very hard work,
because it needs an exhaustive careful gathering of evidence that does not pear any
visible benefit neither to business nor to the IT department. Actually literature suggests
(Venkatraman 1991) that AS-IS analysis is conveniently done if finalized to a business
transformation.
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Appendix A: List of Publications used for the SLR
1. Dayal U., Hsu M., Ladin R. - Business Process Coordination: State of the
Art, Trends, and Open Issues – 2001, Proceedings of the 27th VLDB (Very
Large Data Base) Conference.
Abstract: Over the past decade, there has been a lot of work in developing
middleware for integrating and automating enterprise business processes.
Today, with the growth in e-commerce and the blurring of enterprise
boundaries, there is renewed interest in business process coordination,
especially for inter-organizational processes. This paper provides a historical
perspective on technologies for intra- and interenterprise business
processes, reviews the state of the art, and exposes some open research
issues. We include a discussion of process-based coordination and
event/rule-based coordination, and corresponding products and standards
activities. We provide an overview of the rather extensive work that has
been done on advanced transaction models for business processes, and of
the fledgling area of business process intelligence.
2. Broadbent M., Weill P. - Improving business and information strategy
alignment: Learning from the banking industry – 1993, International
Business Machines Corporation.
Abstract: An empirical study that explored business and information strategy
alignment in the information intensive and competitive Australian banking
industry is featured in this paper. The aim of the study was to identify
organizational practices that contribute to and enhance such alignment.
Multiple sources of information were used to collect data about business and
information strategies from the major firms dominating Australian banking.
Sources included written and interview-based information, strategic planning
documentation, and annual reports. Evidence was sought for the alignment
of business and information strategies through the use of information and
information technology that provided a comparative advantage to an
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organization over its competitors. The firm-wide strategy-formation
processes of the banks, rather than their information systems (I/S)
methodology, was central to the alignment of business and information
strategies. The interdependence of firm-wide processes and I/S factors are
emphasized in a strategic alignment model that summarizes the findings of
the study- The paper concludes with a discussion of the management
implications and requirements for action in both firm-wide strategy and I/ S
areas. The results of this study in the banking industry are pertinent to other
industries where information technology and systems are playing an
increasingly strategic role.
3. Olazabal N.G., - Banking: the IT paradox – 2002, The McKinsey Quarterly
Abstract: during the late 1990s, productivity trends in retail baking stood in
contrast to those in much of the rest of the economy: the industries
information technology investments accelerated substantially, but its labour
productivity growth rates, though higher than the economy-wide average,
actually declined from 5.5 percent (1987-1995) to 4.1 percent (after 1995).
Research into this paradox reveals that the relationship between IT and labor
productivity is more complicated than merely adding the former to lift the
latter.
4. Camussone P.F, - Competenze Informatiche e Produttività nel Settore
Bancario – 2006, Mondo Digitale.
Abstract: In due precedenti ricerche AICA e SDA Bocconi hanno cercato di
valutare il “costo della ignoranza informatica” per l’intero sistema produttivo
italiano e poi, nello specifico, per il settore sanitario. Ora l’attenzione viene
rivolta al settore bancario, certamente più avanzato nell’impiego dell’ICT. In
tal caso il costo dell’ignoranza si rivela modesto ma gli incrementi di
produttività derivanti dalla formazione informatica sono molto interessanti.
La ricerca, che si è basata anche su verifiche empiriche, fornisce una
quantificazione al riguardo.
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5. Aamer Baig - Transforming public-sector IT: An Interview with the
World Bank’s CIO – 2010, The McKinsey Quarterly
Abstract: Shelley Leibowitz has spent much of her career leading IT
organizations at some of the financial industry’s top firms, including Morgan
Stanley and Greenwich Capital (now part of Royal Bank of Scotland). A year
ago, she left Wall Street for a new challenge: to become CIO of the World
Bank Group. The heart of that opportunity involves modernizing the
institution’s IT capabilities so that technology makes a vital contribution to its
global mission of reducing poverty and promoting economic development.
Shelley Leibowitz spoke with McKinsey’s Aamer Baig at the World Bank’s
Washington, DC, headquarters about its new directions and managing
change, as well as lessons learned during her transition.
6. Laartz J., Monnoyer E., - Designing IT for Business – 2003, The McKinsey
Quarterly.
Abstract: Business and IT managers at some leading companies have been
working together to change the way information technology supports the
enterprise. As a result, they have cut the cost of IT, made it easier to change
the business, avoided the constraints of inflexible support systems, and
increased he participation of business leaders in the management of IT.
7. Akella J., Buckow H., Rey S. – IT Architecture: Cutting costs and
complexity – 2009, The MCKinsey Quarterly
Abstract: Amid the economic downturn, companies are searching for every
opportunity to cut costs. IT represents an important part of total spending —
5 percent or more in some industries — and its direct contribution to
revenues and profits is often difficult to assess. As an unsurprising result,
many CEOs and CFOs are eager to squeeze their CIOs’ budgets. But finding
substantial savings isn’t easy. Many CIOs have already spent years reducing
costs in operations, procurement, and outside services. Among many other
things, they have consolidated data centres and help desks, virtualized
servers instead of buying more expensive new ones, rationalized
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procurement processes, postponed upgrades, and outsourced services to
less expensive offshore providers. Nonetheless, significant additional
reductions and efficiencies are possible if companies take a broader look at
the way they manage the IT architecture as a whole. The key to these
economies is bringing business and IT leaders together in a combined effort
to rationalize not only business applications and processes but also the core
IT infrastructure and operations. At one large consumer products company,
for example, such a joint initiative to combine, consolidate, and rationalize
disparate IT systems across business units led to a drastic reduction in the
size of the IT staff (by more than 50 percent in the application-management
area) and inventories of spare parts, increased leverage in negotiating
discounts with suppliers, and the faster completion of new IT initiatives.
8. Heidmann M. - Overhauling banks’ IT systems – 2010, The MCKinsey
Quarterly
Abstract: Core banking systems (CBS) underpin nearly every major banking
process. Think of them as the information technology that runs a bank’s
central nervous system—the software and infrastructure that links services
to business units, customers, and backoffice functions. These systems not
only drive the banks’ day-to-day operations but also serve as the core IT
platform for new capabilities and growth. Yet many banks are saddled with
underperforming systems and outdated architectures that barely support key
processes, at a time when institutions face renewed pressure to tamp down
costs and adjust to volatile conditions in a turbulent financial system.
9. Laartz J., Sonderegger E., Vinckier J. – The Paris guide to IT Architecture –
2000, The McKinsey Quarterly
Introduction: City planners try to preserve viable old assets, to replace
outmoded assets, and to add new assets—all in the context of an
infrastructure linking them coherently. IT developers have a good deal to
learn from that approach.
10. Lawson E., Price C. – The psychology of change management – 2003, The
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McKinsey Quarterly
Introduction : Companies can transform the attitudes and behaviour of their
employees by applying psychological breakthroughs that explain why people
think and act as they do.
11. Lohmeyer D., Pogreb S., Robinson S. – Who’s accountable for IT ? – 2002,
The McKinsey Quarterly
Abstract: For several years, a growing number of executives, analysts, and
management writers have argued that business leaders, not technologists,
should take “ownership” of corporate information technology by holding
themselves responsible both for its impact and for the money spent to
improve it. Information technology’s role within organizations has changed,
these critics argue, and the way they manage their investments in technology
must change, too.
12. Tallon P., Kraemer K., Gurbaxani V. - Executives’ Perceptions of the
Business Value of Information Technology: A Process-Oriented
Approach – 2001, Center for Research on Information Technology and
Organizations, University of California.
Abstract: Despite significant progress in evaluating the productivity payoffs
from information technology (IT), the inability of traditional firm-level
economic analysis to fully account for the intangible impacts of IT has led to
calls for a more inclusive and comprehensive approach to measuring IT
business value. In response to this call, we develop a process-oriented model
to assess the impacts of IT on critical business activities within the value
chain. Our model incorporates corporate goals for IT and management
practices as key determinants of realized IT payoffs. Using survey data from
304 business executives worldwide, we found that corporate goals for IT can
be classified into one of four types: unfocused, operations-focus, market-
focus and dual-focus. Our analysis confirms that these goals are a useful
indicator of payoffs from IT in that executives in firms with more focused
goals for IT perceive greater payoffs from IT across the value chain. In
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addition, we found that management practices such as strategic alignment
and IT investment evaluation contribute to higher perceived levels of IT
business value.
13. Finkelstein C. – Introduction to Enterprise Architecture – Information
Engineering Services Pty Ltd
14. Finkelstein C. – Strategic Modeling for rapid delivery of Enterprise
Architecture - Information Engineering Services Pty Ltd
Abstract: This White Paper discusses how a Strategic Model is used for rapid
delivery of Enterprise Architecture, based on business planning statements
from Col 6 (Why) Row 2 (Owner) of the Zachman Framework for Enterprise
Architecture. It describes how to identify from a data model relevant
business activities or processes in Col 2 (How) Row 1 (Planner). These will
enable activities or processes to be prioritized so they can be used for later
rapid delivery of priority systems into production, using workflow models
and automatically-generated directly-executable business process
management (BPM) languages such as Business Process Execution Language
(BPEL). It shows how project plans and associated project maps can be
derived from a data model to manage the rapid delivery of priority business
activities and processes into production as systems. These project plan and
project map derivation concepts have not previously been used in data
modeling.
15. Finkelstein C. –Enterprise Architecture in Banking – Information
Engineering Services Pty Ltd
16. Buckl S., Ernst A., Matthes F., Ramacher R., Schweda C. – Using Enterprise
Architecture Management Patterns to complement TOGAF – Chair for
Informatics
Abstract: The design of an Enterprise Architecture (EA) management
function for an enterprise is no easy task. Various frameworks exist as well as
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EA management tools, which promise to deliver guidance for performing EA
management. Nevertheless, the approaches presented by them stay either
on a level too abstract to provide realization support or are far too generic,
neglecting enterprise-specific EA related concerns. In this article, we discuss
the architecture framework of The Open Group (TOGAF) and detail on its
promising but nevertheless highly generic architecture development method
(ADM). This article shows how the generic development steps can be
complemented by a pattern based approach to EA management providing
guidance for addressing specific EA related concerns with step by step
methodologies as well as with corresponding viewpoints and information
models.
17. Day J.D., Jung M. – Corporate transformation without a crisis – 2002,
McKinsey Quarterly
Abstract: Like individuals, organizations change continuously, reacting to
developments in their markets and to the arrival and departure of key
people. In a large company, these changes go on more or less unnoticed. But
sometimes a company must change more quickly than this gradual evolution
allows; it needs a break with the past, an accelerated pace of change—a
transformation.
18. Bartoletti M., Clancia V., Ferrari G., Guanciale R., Strollo D., Zunino R. –
Architetture Informatiche: l’orientamento ai servizi – 2008, Mondo
Digitale
Abstract: Le architetture a servizi costituiscono il paradigma emergente per
la progettazione e implementazione di applicazioni di rete. I servizi sono
strumenti indipendenti dalla piattaforma, che possono essere descritti,
pubblicati e composti ottenendo reti di applicazioni distribuite. Questo
lavoro si propone di analizzare sia le sfide tecnologiche poste a chi progetta
applicazioni distribuite con il paradigma orientato ai servizi, che il problema
della definizione di nuovi modelli computazionali che favoriscono la
realizzazione di strumenti software innovativi superando i limiti delle
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soluzioni tecnologiche oggi disponibili.
19. Mattern F., Schonwalder S., Stein W. – Fighting complexity in IT – 2003, The
McKinsey Quarterly
Introduction: To simplify a company’s information system, look beyond
them.
20. Brown J.S., Hagel J. III – Flexible IT, better strategy – 2003, The McKinsey
Quarterly
Introduction: IT’s critics say that it lacks strategic importance. So why does
technology keep getting in the way of good strategy?
21. Heygate R., Spokes B. – Time to get rid of legacy systems? – 1997, The
McKinsey Quarterly
Abstract: Everyone Knows - or thinks they know - what the problem with IT
is: large organizations competing in rapidly evolving markets are held hostage
to the out of date computer technology they use to run their business. Year
by year, the problem becomes more acute: the technology is that bit closer to
collapse; additional product lines usually mean additional incompatible IT
systems; company acquisitions bring along entire legacy systems of their own.
Any new system must be capable of serving a wide range of needs; but
because implementation typically takes years, the old systems must be kept
up and running until the whole of the new system is in place. Faced with this
situation, most CEOs resist drastic action that may put at risk the operational
stability of their company. “Evolution, not revolution” is the preferred tactic.
Unfortunately, it often leads to simple inaction, which makes matters worse
and saps competitive strength. And so IT becomes for today’s company head
a kind of bear confined to a cage that can’t learn any new tricks, but, if fed
enough - IT costs are now increasing at about 15 percent per year - will
continue to perform its old ones.
22. Langenberg K., Prof.Dr. Wegmann A. – Enterprise Architecture: what
aspects is current research targeting? – 2004, Ecole Polytechnique
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Fédérale de Lausanne
Abstract: Enterprise architecture is an approach to aligning business and IT
within a company. In this paper we present the state of the art in enterprise
architecture (EA) research, our survey is based on an analysis of the publicly
available publications. Our research methodology defines the analysis
criteria. These criteria are: the distribution of the papers over time, their
topics, authors, reference disciplines and their dispersion over the lifecycle
activities, which will be defined. The evaluation included 80 papers (all
referencing explicitly the term “enterprise architecture”). The results of our
survey are: EA is a young discipline, but the interest in it is growing. Although
a wide range of topics is covered, the discipline is lacking basic research. The
main contributors to EA are consulting companies and academics. But
academics do not contribute very much to the basic research in EA.
Furthermore, very few other disciplines are used to enhance enterprise
architecture. In addition enterprise architecture is a new discipline and it will
not mature unless substantial basic research will be made.
23. Op ‘t Land M., Proper E. – Impact of principles on enterprise engineering
– Netherlands Delft University of Technology, The Netherlands
Abstract: Increasingly, organizations make use of enterprise architectures to
direct the development of the enterprise as a whole and the development of
their IT portfolio in particular. This steering and directing is done by means of
principles, which are essentially regarded as constraints on the design space
for enterprise engineers, thus guiding them in their design efforts. In this
paper we study the potential constraining effect of principles on the design
of enterprises as well as the guidance designers may receive from these
principles. We start by providing a brief discussion on the concepts of
enterprise architecture and enterprise engineering. We continue by
discussing a strategy to make principles specific and measurable enough to
indeed allow them to constrain design space. This is followed by a discussion
of a number of examples, taken from real-life practice, illustrating the
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steering effect of principles. Finally, we also briefly pay attention to the
process that may be followed in formulating and formalizing principles.
24. Sarrazin H., West A. – Understanding the strategic value of IT in M&A. –
2011, McKinsey Quarterly
Introduction: Many mergers don’t live up to expectations, because they
stumble on the integration of technology and operations. But a well-planned
strategy for IT integration can help mergers succeed.
25. King W.R., Teo T.S.H. – Integration between Business Planning and
Information Systems Planning: Validating a Stage Hypothesis. – 1997,
Decision Sciences, Volume 28.
Abstract: This paper proposes and empirically validates a stages of growth
model for the evolution of Information Systems Planning (ISP). A
questionnaire survey of senior IS executives is used to gather information
pertaining to the stages of growth model, which includes measurement of
the nature and level of integration between business planning (BP) and ISP.
The del test is used to validate empirically benchmark variables for each
stage of BP-ISP integration. The results support the stages of growth model
of BP-ISP integration and the benchmark variables are generally found to be
successful in predicting the stage of integration.
26. Davenport T.H., Short J.E. – The new industrial engineering: information
technology and business process redesign – 1990, Center for Information
System Research, MIT
Abstract: At the turn of the century, Frederick Taylor revolutionized the
design and improvement of work with his ideas on work organization, task
decomposition and job measurement. Taylor's basic aim was to increase
organizational productivity by applying to human labor the same engineering
principles that had proven so successful in solving technical problems in the
workplace. The same approaches that had transformed mechanical activity
could also be used to structure jobs performed by people. Taylor, rising from
worker to chief engineer at Midvale Iron Works, came to symbolize the ideas
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and practical realizations in industry that we now call industrial engineering
(IE), or the scientific school of management. In fact, though work design
remains a contemporary IE concern, no subsequent concept or tool has
revealed the power of Taylor's mechanizing vision. As we enter the 1990's,
however, two newer tools of the "information age" are beginning to
transform organizations to the degree that Taylorism did earlier. These are
information technology — the capabilities offered by computers, software
applications, and telecommunications — and business process redesign —
the analysis and design of work flows and processes within an organization.
The ideas and capabilities offered by these two tools working together have
the potential to create a new type of industrial engineering, changing the
way the discipline is practiced and the skills necessary to practice it. This
article explores in detail the relationship between information technology
(IT) and business process redesign (BPR). We report on research conducted in
nineteen companies, including detailed case studies from five firms engaged
in substantial process redesign. After defining business processes in greater
detail, we extract from the experiences of companies we studied a generic
five-step approach to redesigning processes with IT. We then define the
major types of processes, along with the primary role of IT in each type of
process. Examples are provided throughout of specific efforts within these
firms to use IT to radically redesign and upgrade particularly important
business processes — some as pan of a total business redesign, others as
more isolated, but still valuable, efforts. Finally, management issues
encountered at our research sites in using IT to redesign business processes
are considered.
27. Riccardini F., Nascia L., Nurra A. – L’utilizzo delle tecnologie
dell’informazione e della comunicazione come fattore di espansione
delle imprese – 2002, ISTAT
Abstract: La diffusione crescente delle nuove tecnologie dell’informazione e
della comunicazione nelle imprese ha portato ad una trasformazione
profonda del sistema produttivo italiano e la loro pervasività incide sul
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paradigma di produzione sia all’interno dell’impresa stessa sia nei rapporti
relazionali interimprenditoriali. La ‘rivoluzione digitale’ comporta una
ridefinizione dei fattori di competitività, degli elementi chiave per le funzioni
aziendali e, in generale, dell’affermazione di nuovi processi organizzativi.
Proprio la ridefinizione dell’organizzazione aziendale esprime la necessità di
nuovi indicatori che abbiano un valore informativo non solo rispetto alla
tecnologia, ma anche alle funzioni economiche dell’impresa. Le nuove
tecnologie fanno emergere nuovi bisogni statistici poiché gli indicatori
tradizionali non sono più sufficienti nel fornire un quadro informativo
esaustivo. Gli indicatori adeguati per le ICT debbono possedere
caratteristiche che ne assicurino la confrontabilità e la standardizzazione
anche a livello internazionale poiché proprio le nuove tecnologie
dell’informazione e della comunicazione rendono l’analisi degli aspetti
territoriali diversa rispetto al passato con la peculiarità di un quadro
d’insieme in cui l’aspetto spaziale è più sfuggente e implicito. Ad oggi il
dibattito sugli indicatori della società dell’informazione è stato fecondo di
nuovi indicatori, in particolare le istituzioni internazionali come l’Ocse, la
Commissione europea ed Eurostat, hanno contribuito all’affinamento del
quadro definitorio delle ICT e allo sviluppo di metodologie di misurazione.
L’armonizzazione delle informazioni statistiche è un elemento essenziale per
l’analisi dei fenomeni collegati alla cosiddetta società dell’informazione.
Dunque, le attività volte alla cura della qualità dei dati, intesa come
tempestività, rilevanza, pertinenza, accuratezza, completezza e
confrontabilità, sono fondamentali per gli statistici ufficiali. La variabilità
delle stime di fonte privata che hanno preceduto la produzione di statistica
ufficiale hanno altresì dimostrato la necessità di tale produzione e tutti gli
organismi internazionali principali hanno intrapreso tale strada utilizzando i
dati statistici ufficiali anche per le analisi più sofisticate. Al fine di disporre di
un’analisi microeconomica relativa all’impatto sulle performance delle
imprese nel presente lavoro è stata sviluppata una sperimentazione di
integrazione di fonti statistiche e amministrative in maniera tale di offrire
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alcuni spunti di studio utili per la comprensione del fenomeno. Anche se il
‘digital divide’ (differenze che emergono dall’utilizzo delle tecnologie digitali-
ICT) è un fenomeno assai più complesso della semplice analisi della
distribuzione delle reti e del commercio elettronico nelle imprese,
l’applicazione per tali fattori dell’indice del Gini in termini dimensionali,
settoriali e territoriali è un contributo utile ed è un passo importante per
analizzare gli effetti sulle differenze di dotazioni informatiche e telematiche
delle imprese. Tale analisi è generalmente condotta sulle famiglie/individui o
gruppi sociali di un paese, ma in questo lavoro si è ritenuto interessante
proporre un’analisi simile anche per le imprese. Questo perché anche per le
imprese esistono barriere all’uso delle ICT con riflessi sulla competitività e
sulla possibilità di espandere le relazioni tra imprese, ed è importante
capirne le ragioni di tale diversità e gli elementi che costituiscono un
discrimine.
28. Sampietro M. – I fattori critici nei progetti informatici – 2007, Mondo
Digitale
Abstract: Gestire progetti informatici è certamente un’attività complessa e
molto sfidante, ogni progetto ha delle caratteristiche peculiari, non esistono
quindi ricette per il successo replicabili in tutte le situazioni. Esistono tuttavia
dei fattori che hanno evidenziato un elevato tasso di ripetitività e un
notevole impatto sulle performance di progetto. Questi fattori sono detti
“Fattori Critici di Successo”. In questo articolo si analizzeranno, con diversi
gradi di dettaglio, i fattori che più comunemente ostacolano la gestione di
progetti informatici.
29. Lederer A.R., Katz J.M., Sethi V. – The implementation of strategic
information systems planning methodologies – 1988, MIS Quarterly
Abstract: Strategic information systems planning( SlSP) is the process of
deciding the objectives for organizational computing and identifying
potential computer applications which the organization should implement.
This article gives a thorough definition of SlSP and then illustrates it with
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three methodologies. A survey of 80 organizations examined the problems
faced by information systems managers when they attempt to implement
such a methodology. The subjects’ overall satisfaction with the methodology,
its resource requirements, process, output, and final execution were not
particularly high. The two problems rated most severe were the difficulty in
securing top management commitment for implementing the plan and the
need for substantial further analysis in order to carry out the plan. The
survey also investigated some potential causes of the problems. Survey
results suggest that the SISP methodologies may often produce satisfactory
plans but that organizations lack the management commitment and control
mechanisms to ensure that they follow the plans.
30. Saha P. – Analyzing The Open Group Architecture Framework from the
GERAM perspective – Institute of System Science, National University of
Singapore.
Abstract: This paper analyzes The Open Group Architecture Framework
(TOGAF) Enterprise Edition and its mapping onto the Generalized Enterprise
Reference Architecture and Methodology (GERAM) framework / ISO IS
15704:2000 requirements. The analysis compares and contrasts these
frameworks on multiple aspects that include: life cycle phases, temporality
and succession, modelling frameworks, modeling languages, methodologies,
entity types and reference models. The paper then discusses the role of
TOGAF in the context of GERAM compliant enterprise architecture
development including suggestions for issues and areas to be addressed.
31. Tonella P., Ceccato M., Marchignoli D., Matteotti C., Dean T.R. – Migrazione di
sistemi software legacy – 2009, Mondo Digitale
Abstract: Diversi produttori di software devono la loro posizione sul mercato
a sistemi software sviluppati parecchie decadi fa, con tecnologie che sono
diventate obsolete. Se dal punto di vista economico tali sistemi
rappresentano una risorsa inestimabile, in quanto codificano una quantità
enorme di regole di business e di conoscenza, dal punto di vista tecnico
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pongono notevoli problemi. In questo articolo riportiamo una sintesi
dell’esperienza maturata nel corso della migrazione verso Java di un grosso
applicativo bancario, considerando, in particolare, la strutturazione del flusso
di controllo e del modello dati.
32. Winter K., Buckl S., Matthes F., Schweda C.M. - INVESTIGATING THE STATE-
OF-THE-ART IN ENTERPRISE ARCHITECTURE MANAGEMENT
METHODS IN LITERATURE AND PRACTICE – Technische Universitat
Munchen
Abstract: In recent years, enterprise architecture (EA) management has
emerged to one of the major challenges for enterprises. When looking for
guidance in this field companies can choose from a variety of EA
management approaches, which have been developed by scientists,
practitioners, and governmental organizations. However, these approaches
differ significantly in a number of characteristics and especially when it
comes to methods for the EA management function. There is neither a
common understanding of the scope and content of the main activities an EA
management function consists of nor has a commonly accepted reference
method been developed. This paper represents a first step towards a
common understanding of the EA management function by investigating
prominent approaches in literature on EA management methods. Based on
the literature analysis hypotheses describing the state-of-the-art are derived.
These hypotheses are tested for their relevance in practice in an online
survey among enterprise architects. The paper discusses the findings and
concludes by proposing future areas of research.
33. Powell T.C., Dent – Micallef A. – Information Technology as competitive
advantage: the role of human, business, and technology resources –
1997, Strategic Management Journal
Abstract: This paper investigates linkages between information technology
(IT) and firm performance. Although showing recent signs of advance, the
existing IT literature still relies heavily on case studies, anecdotes, and
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consultants’ frameworks, with little solid empirical work or synthesis of
findings. This paper examines the IT literature, develops an integrative,
resource-based theoretical framework, and presents results from a new
empirical study in the retail industry. The findings show that Its alone have
not produced sustainable performance advantages in the retail industry, but
that some firms have gained advantages by using Its to leverage intangible,
complementary human and business resources such as flexible culture,
strategic planning – IT integration, and supplier relationships. The result
support the resource-based approach, and help to explain why some firms
outperform others using the same Its, and why successful IT users often fail
to sustain IT-based competitive advantages.
34. Venkatraman N. – IT-Enabled Business Transformation: from
automation to business scope redefinition – 1994, Sloan Management
Review
Abstract: The role of IT in shaping tomorrow’s business operations is a
distinctive one. It has become a fundamental enabler in creating and
maintaining a flexible business network. Using a framework that breaks IT-
enabled business transformation into five levels, the author describes each
level’s characteristics and offers guidelines for deriving maximal benefits. He
suggests that each organization first determine the level at which the
benefits are in line with the costs of effort of the needed changes and then
proceed to higher levels as the demands of competition and the need to
deliver greater value to the customer increases.
35. Jorgenson D.W. – The Economics of productivity – 2009, An Elgar Reference
Collection
Introduction: The resurgence of the American economy since 1995 has
survived the dot-com crash of 2000, the short recession of 2001, and the
‘jobless’ recovery that followed. The financial and economic crisis resulting
from the collapse of sub-prime mortgage lending has generated a strenuous
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debate: Can the improvements in America’s economic performance be
sustained? A consensus has emerged that the investment in information
technology (IT) provides a strong foundation for the future growth of the
American economy.
36. Bakos Y. – Information Technology Spending and Economic
Productivity: A review of “The trouble with computers” by Thoma s K.
Landauer – 1996, Journal of Economic Literature
Introduction: Information technology has become a significant component
of new capital investment and several economists look to computers as the
best hope for a sustainable increase in economic growth rates. Thus
questions about the productivity of computer investment are a serious
matter. In his book “The trouble with computers” (MIT Press, 1995),
Landauer argues that computers have been unproductive because of poor
design and deployment.
37. Kemerer C.F., Sosa G.L. – Systems development risks in strategic
information systems – 1991, Sloan School of Management, MIT
Abstract: Business executives and systems professionals are frequently
confronted with suggestions to use information technology (IT) strategically.
While this advice has had a number of positive effects, including broadening
the thinking about how IT can be used, it has at the same time failed to
suggest the significant difficulties in actually implementing these systems.
The paper highlights a dozen significant barriers to the successful definition,
development, and maintenance of strategic information systems (SISs).
These problems are illustrated with actual examples gleaned from an
extensive review of the business literature and from confidential interviews
with managers who have attempted to develop SISs. A risk matrix is
provided to assist managers in determining their relative exposure to these
pitfalls.
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38. Craig D., Tinaikar R., – Divide and Conquer: Rethinking IT strategy – 2006,
McKinsey Quarterly
Introduction: Just as a company manages different businesses differently, it
should manage the IT that supports them differently.
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References
Chapter 1
Porter M.E., Millar V.E. – How information gives you competitive advantages – Harvard
Business Review, 1985 [1]
Venkatraman N. – IT-Enabled Business Transformation – Sloan Management Review,
1994 [2]
Nolan R., McFarlan F.W., - Information technology and the Board of Directors – Harvard
Business Review, 2005 [3]
Riccardini F., Nascia L., Nurra A. – L’utilizzo delle tecnologie dell’informazione e della
comunicazione come fattore di espansione delle imprese – ISTAT, 2002 [4]
Heygate R., Spokes B. – Time to get rid of legacy systems? –The McKinsey Quarterly,
1997 [5]
Tallon P.P., Kraemer K.L., Gurbaxani V. – Executives’ Perceptions of the Business Value
of Information Technology: A Process-Oriented Approach - Center for Research on
Information Technology and Organizations, Graduate School of Management, University
of California, 2001 [6]
Carr N.G. – IT doesn’t matter – Harvard Business Review, 2003 [7]
ISACA – COBIT 5: The framework exposure draft – www.isaca.org 2011 [8]
Cartlidge, Hanna, Rudd, Macfarlane, Windebank, Rance - An Introductory Overview of
ITIL V3 - The IT Service Management Forum, 2007 [9]
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Service Pty Ltd [10]
TOGAF – The Open Group Architecture Framework – Version 9 - The Open Group, 2009
[11]
Winter K., Buckl S., Matthes F., Schweda C.M, - Investigating the State-of-art in
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Enterprise Architecture Management methods in literature and practice – Technische
Universitat Munchen [12]
Buckl S., Ernst A., Matthes F., Ramacher R., Schweda C. – Using Enterprise Architecture
Management Patterns to complement TOGAF – Chair for Informatics [13]
Chapter 2
J. Biolchini, P.G. Mian, A.C.C. Natali, and G.H. Travassos. - Systematic review in software
engineering - System Engineering and Computer Science Department COPPE/UFRJ,
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Systematic literature reviews in software engineering-A systematic literature review. -
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Thousand Oaks, California: Sage Publications. 2005. [17]
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(Strategie competitive e decisioni di investimento sull’analisi di casi aziendali). - 2005,
Bancaria Editrice [18]
Gandolfi, De Laurentis, - Il Gestore Imprese. Creare valore per la banca e il cliente con i
sistemi informativi di ruolo. – Bancaria Editrice, 2008 [19]
Frigerio, Rajola - IT Governance e Business Performance (Strategie e Processi per il
vantaggio competitivo). – Bancaria Editrice, 2011 [20]
Craig D., Tinaikar R., – Divide and Conquer: Rethinking IT strategy – 2006, McKinsey
Quarterly [21]
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Bracchi G., Francalanci C., Motta G., - Sistemi Informativi d’Impresa - 2010, McGrowHill
[22]
Brynjolfsson E., - The Productivity Paradox of Information Technology – Communications
of the ACM, 1993 [23]
Strassmann P. – The business value of computers – The Information economics press,
1990 [24]
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Francalanci C., Galal H., - Information Technology and Worker Composition:
Determinant of performance in the Life Insurance Industry – MIS Quarterly, 1998 [27]
Muraglia R. - ICT Strategic Sourcing: Le Dinamiche della Relazione Cliente – Fornitore nel
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Ringraziamenti
Desidero ringraziare il Prof. Gianmario Motta, non solo per avermi seguita nella stesura di questa Tesi, ma anche per avermi fatto conoscere il corso di laurea di Ingegneria dei Servizi e per avermi supportata con grande disponibilità lungo tutto il percorso. Ringrazio i miei due correlatori: Rosalia, che in questi sei mesi è stata per me soprattutto una amica, e Thiago, per il suo sostegno e i preziosi consigli che mi hanno aiutata a “superare” indenne i primi mesi di stage. Ringrazio la mia famiglia che mi è stata vicino in tutti questi anni di università, spronandomi e incoraggiandomi a portare avanti e a terminare gli studi. Ringrazio i miei compagni di corso (anche quelli “dell’anno prima”) con cui ho condiviso questi bellissimi, ultimi due anni di università. Ringrazio gli amici di sempre, per essermi stati vicini in tutti momenti di gioia, e non solo, e ringrazio in particolare Christian, per essere qui con me oggi… e anche per avermi suggerito di mettere Sistemi Informativi nel piano di studi del terzo anno, perchè grazie a quel corso ho conosciuto il Prof. Motta e ho deciso di intraprendere la “strada” di Ingegneria dei Servizi. Un ringraziamento va anche ai colleghi di Mediofactoring, per avermi accolta in ufficio
con grande amicizia e per avermi fatto trascorrere questi sei mesi di stage con grande
serenità.
Grazie a TUTTI!!!
18 Ottobre 2011
Marta Frascaroli
