Architecting Business Solutions for the Enterprise

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Architecting Business Solutions for the Enterprise

Presented by:

JIM CALDARELLASenior Solutions Architect – i-flex solutions

For more information contact:jim.caldarella@iflexsolutions.com

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The CEO Song

• Our technology is “bankrupt”• Our core systems are stretched too thin• They are overly complicated• We struggle to make mandatory changes• Improvements are expensive and slow• One-off upgrades are band-aids • On the whole, it gives us too little and costs

too much!• How do we attack the problem?

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The CTO Refrain

• We must re-automate the back office• Ensuring that it supports today’s and

tomorrow’s business needs• The changes must be cost-effective, high-

performance, modern…• We need to do it “soon”• We won’t make a dent in earnings• It will conform to an enterprise-wide

“Architecture”

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Second Chorus

• Our legacy systems are…– Insular…applications are not integrated– Out of touch with our marketing / sales initiatives– Complicated…some with 35+ years of tweaking– Expensive…the same IT ”capability” costs less every year– Untouchable…big changes to meet market needs—forget about it!– Loved…Tradition!…after 35 years, who doesn’t love their system?

• We face real business risks…– Customer “trust” erodes…not quick, fast, agile, or strong enough– A huge disaster strikes…no one has a total view– Opportunities escape…they all don’t just fall on your head– Costs escalate…eroding earnings and creating a bunker mentality– Defensive spending rises…costs a lot, does little to help– Ill prepared for the unknown…

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The Big Question

• What is an architecture?• How do we get one that fits our business?

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The Entire Space

TheBack Office

Comprehensive, but not very useful

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Breaking It Down

What you offer to your customers

Your products and services

TheBackOffice

Business

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TheBackOffice

Breaking It Down

Organized into business processes

Function

Business

The work you do to deliver products/services

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TheBackOffice Data

Breaking It Down

Represented as data entities

Function

Business

The information you process

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Breaking It Down

Buildings, computers, networks, people…

The physical environment

TheBackOffice

Infrastructure

DataFunction

Business

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TheBackOffice

What Drives What?

Infrastructure

Data

FunctionBusiness

Requirements

[Degree of Abstraction]

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Revealing the Essentials

The components of each layer and their arrangement (the architecture) needs to be clear

The components of each layer need to be presented in understandable ways (taxonomies /

hierarchies)

The relationships between the components of different layers shows how needs will be fulfilled

(mapping)

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Components - Business

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…Business

Function

Data

Infrastructure

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Components - Function

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and OutDeposit

ProcessingLoan

ProcessingPaymentProcessing

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Business

Function

Data

Infrastructure

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Components - Data

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and OutDeposit

ProcessingLoan

ProcessingPaymentProcessing

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Customers Accounts …

Business

Function

Data

Infrastructure

Relationships

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Components - Infrastructure

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and OutDeposit

ProcessingLoan

ProcessingPaymentProcessing

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Business

Function

Data

Infrastructure

Customers Accounts …Relationships

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Architectures & Hierarchies

LegalEntities

AccountHolders

Prospects… DDA Loan…

Data (an example)

Customers Accounts …Relationships

CustomersLegal

EntitiesAccountHolders

Prospects…Accounts

DDA Loan……

A hierarchy presentscomplex

organizationsin an understandable

way

An Architecture illustrates how things work by revealing the nature of component relationships

Own

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Inter-layer Mapping

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and Out

DepositProcessing

LoanProcessing

PaymentProcessing

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Customers

LegalEntities

AccountHolders

Prospects…

Accounts

DDA Loan……

“Own”

Business

Function

Data

Infrastructure

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Mother of all Mainframes

Applications

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and Out

DepositProc

LoanProc

PaymentProc

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Customers

LEAcctHldr

Prosp…

Accounts

DDA Loan……

“Own”

Business

Function

Data

Infrastructure

FT DP LN

Post GL Rep

LN FT

Acc

CurrentSoftware

Applications

Consistent and

understand-able

reference points

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Reasons for Change!

• Minimize…– Redundant functions– Number of stops End-to-End– Parsing, editing, mapping, validating…– Technology limitations…

• Maximize– Shared functions– Shared data– Standardization…

• Know your data (your competition certainly does)!

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Mother of all Mainframes

Connecting Old and New

Deposits Loans Payments FX L/C

Internet AccessATM ServicesTeller Services

…

Getting Stuff In and Out

DepositProc

LoanProc

PaymentProc

FXProc.

L/CProc.

…

Posting, Reports, Risk Mgmt…

Customers

LEAcctHldr

Prosp…

Accounts

DDA Loan……

“Own”

Business

Function

Data

Infrastructure

FT DP LN

Post GL Rep

LN FT

Acc

CurrentSoftware

Applications

Core Banking

DP …LN FT

InternetAccess

Nirvana

PaymentGateways

BusinessIntelligence

…

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Mother of all Mainframes

Getting There

FT DP LN

Post GL Rep

LN FT

Acc

CurrentSoftware

Applications

Core Banking

DP …LN FT

InternetAccess

Nirvana

PaymentGateways

BusinessIntelligence

…

Plan

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Options

• Remodel…– Cheaper, easier, less risk, requires a lot less thinking– New paint, new room…same old house

• Build…– Very expensive in today’s world, very difficult, huge risk of failure,

requires a ton of very expensive thinking

– A new, custom-built processing environment

• Buy– Cost effective, easiest, no risk, focuses thinking in the right areas– A new, off-the-shelf processing environment– Configurable…how much?– Better technology?

Most are going to choose the “buy” option; Loss of competitive advantage is an issue!

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The i-flex Model

Core Banking…Customer Information

Risk ManagementDDA processing

GL and Sub-LedgerMiddle Office (e.g. confirms)

Regulatory ReportingAccount Analysis, Billing

PaymentsStraight Through Processing

•FT Liquidity management•Regulatory Compliance•Anti Money Laundering

• Message Format• Queue management & Routing

LoansLoan

Syndic-ation

Fed…CHIPS…SWIFT…CHAPS

FXSecuritiesCustody

Deposit …

Internet GatewayBranch

Operations…

Data Warehousing / Business Intelligence

Marts

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Our Products

FLEXCUBE…Core Banking

HPO (high-performance)or

AutoFT…PaymentsFC…Loans

FC…Loan

Syndic-ation

Fed…CHIPS…SWIFT…CHAPS

FC…FX

FC…SecuritiesCustody

FC…Deposit …

FC…Internet Gateway

FC…Teller Operations

…

Reveleus…Data Warehousing / Business Intelligence

Marts

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Benefits

• Cost Reduction– Savings in S/W maintenance / enhancements, D/C operations…– Savings in operations with improved productivity– Payback periods of 5 to 8 years on average

• Risk Mitigation– An integrated view closes many of today’s largest holes– Improved operating control means faster response to issues

• Better Compliance– Keeping up with regulatory controls is easier / less expensive– Improved compliance allows regulators to step back

• Improved Responsiveness– New products and features are easier / less costly to introduce– User configurable software allows low cost market differentiation

• Positive Customer Experience…

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Thank You

www.iflexsolutions.com