Model Driven Message Interoperability Standard

Richard Mark Soley, Ph.D.

Chairman and CEO, OMG

Executive Director, SOA Consortium

USD $2 Billion Revenue Recovered in Message Improvement Program!*

* Bugajski & Grossman, “Data Quality Models for High Volume Transaction

Streams: A Case Study “, KDD 2007, ACM Conference Proceedings

Model Driven Message Interoperability (MDMI) Standard

• Reduce costs and increase revenue though improved communications

• MDMI standard is solving legacy message syntax translation problems

• Improves quality and reduces message translation errors

• Supports coexistence through a central domain data dictionary and standardized maps

MDMI in Practice

Message A

Element Set A

Message B

SyntaxMap

SemanticMaps

SemanticMaps

Domain Data Dictionary

Element Set B

SyntaxMap

Standards Body A Standards Body B

Who Is The OMG?

� Founded in 1989

� More than 470 member companies

� The largest and longest standing not-for-profit, open-membership consortium which develops and maintains computer industry specifications.

� Continuously evolving to remain current while retaining a position of thought leadership.

Object Management Group factoids:

Who Are OMG?

Accenture

Appian Corp.

BAE Systems

Boeing

CA

Capgemini

Citigroup

CSC

FireStar

FIX Consortium

Fujitsu

General Dynamics

GSA

HP

Harris

Hitachi

HSBC

IBM

IDS Scheer

Iona

Lombardi

MetLife

Navy UWC & SWC

Northrup Grumman

Penn National

PrismTech

Satyam

SPARX

SAP

SWIFT

Tibco

VISA

OMG’s Best-Known Successes

Common Object Request Broker ArchitectureCORBA® remains the only language- and platform-neutral interoperability standard

Unified Modeling LanguageTM

UML® remains the world’s only standardized modeling languageCommon Warehouse Metamodel

CWMTM, the integration of the last two data warehousing initiativesMeta-Object Framework

MOFTM, the repository standardXML Metadata Interchange

XMI®, the XML-UML standard

Unified Modeling Language Underpins MDMI

UML is a general and widely supported graphical language for representing computer software and data in a manner easily understood by a wide variety of people

UML is the underlying language for messages assuring globally consistent understanding of financial information by people and machines

Information about messages is available and discoverable both byusers and machines

UML is already the basis of ISO 20022

OMG Finance Domain Task Force

• Applies OMG standards to the Financial Industry’s most pressing problems

• MDMI development and maintenance

• Improved security for FI networks

• Standard UML profile for XBRL GL

• Focused on FI’s and insurance

• Liaison relationships with XBRL, FIX, FSTC, ISO TC68 WG4

• Leadership from FireStar Software, HSBC, IP Commerce, MetLife, PriceWaterhouse Coopers, SAP, SWIFT, Syleum, VISA

MDMI Objectives

• MDMI reduces costs, increases revenue, and improves data quality

• Standard translation maps created by standards bodies remove the largest source of message errors, vulnerabilities and corruption

• MDMI maps allow the translation of legacy formats to new message formats; e.g., MT to ISO 20022 (MX)

• Provides technical basis for model level compliance for ISO 20022 multiple syntaxes as called for by the RMG

MDMI Business Requirements: Examples

• Reduce message interoperability and versioning costs• For example, a major bank uses 78 different payment messages:

every message version must be supported in thousands of systems

• Increase quality with widely reusable standardized, tested translation maps for message interoperability.

• VISA’s US$2 billion revenue recovery is just one visible example

• Provide flexibility for individual FI’s• Accommodate different message standards that came from

technology choices (e.g., XML doesn’t work in every application area), different domains (payments and securities), and criticallegacy issues (including proprietary formats).

• Leverage, not compete, with existing financial services industry standards

• such as ISO, FIX, IFX, TWIST, SWIFT, VISA, ANSI

• Provide a foundation that recognizes future business issues that need to be addressed

• Need for lossless transactions and accommodating market evolution

Registration Authority Populates Domain Data Dictionary for MDMI

Domain Data Dictionary

Elements from

Legacy Messages

Attributes of

Formal Models

ISO 20022

Elements to meet

market needs

Builds on the central Domain Data Dictionary, but allows flexibility in the face of many legacy formats as well as being responsive to changes in the market

Many Organizations Will Contribute Their Standards Maps to the Dictionary

Domain Dictionary

SWIFT

FpML

FIX RosettaNet

Your FI

CreateMessageModel*

Message Elements

(Used in Step 2)

Message Elements

(Used in Step 2)

Business Elements

(from Dictionary)

Business Elements

(from Dictionary)

Syntactic Map

Syntactic Map

Documentationfor Existing

Message Formats(e.g. VISA

TC05)

Documentationfor Existing

Message Formats(e.g. VISA

TC05)

SemanticMaps

SemanticMaps

MessageElementsMessageElements

CreateSemantic

Maps*

Step 1 – Removing Syntax

Step 2 – Mapping Semantics

MDMI Design Process

*Model created by

technical analyst

*Maps created by

business analyst

Runtime Implementation

Vendor’sRuntime Platform

Vendor’sRuntime Platform

SourceMessage

Data

MessageElements

MessageElements

SyntacticMaps

SyntacticMaps

BusinessElementsBusinessElements

SemanticMap

SemanticMap

READ TargetMessage

data

Write

We expect many vendors to participate

MDMI Delivers Measurable Value

• Proven Value for Implementing MDMI

• Dramatically reduce number of messages and versions

• Repeatable, testable, auditable “Model Level Compliance”

• Uses existing, off-the-shelf tools based on OMG standards

• Expected Future Value

• Increased agility for adding new business functionality

• Deliver the long-term promise of ISO 20022

• Support lossless transactions in STP

MDMI Accomplishments

• Financial standards groups, banks, and vendors collaborated to create standard

• Standard submitted by VISA, IBM, Informatica, IP Commerce, FireStar Software and with support from SWIFT

• MDMI adopted as an OMG standard this year

• MDMI prototype built by VISA and FireStar Software

Path to Deliver MDMI’s Value: Next Steps

• MDMI Consortium formed by financial industry

• To develop and deliver a proof-of-concept

• To mature the standard

• To help organizations adopt & use the standard

• Consortium building on previous work to show

• MDMI delivers quantifiable benefits

• Standard is suitable for wide adoption

OMG’s MDMI Consortium provides the financial industry with the means for sharing costs of adoption via a dedicated, expert team working to provide proof of business and technical value on an aggressive schedule.

OMG MDMI Consortium Plan

• Phase I (Developing data): early 2009

• Providing the technical and business proof

• Identifying the business benefits

• Phase II (Facilitating adoption)

• Providing necessary documentation for others (demos via OMG Workbench, white papers)

• Potential enhancements to MDMI and other standards (even ISO 20022 itself)

Participate Now!

• Financial institutions that are OMG Contributing Members can join the MDMI Consortium at no additional cost

• Financial institutions that join MDMI Consortium receive an OMG Domain Membership at no additional cost

• Any other organization may participate as well; particularly other standards organizations are encouraged to participate

Join the MDMI Consortium!

• Interested in the OMG Message Map Consortium?http://www.omg.org/mdmi

• Interested in the OMG / SOA Standards?http://www.omg.org/

• Didn’t get to ask your question?soley@omg.org