SellingIntoFinSvcsEnterprises-v2.2

7/28/2019 SellingIntoFinSvcsEnterprises-v2.2

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Confidential V2.22008Q4Transacting in Enterprise Technology Organizations

Copyright 2005-8, New Global Enterprises. 1

Transacting

in

Financial ServicesEnterprise Technology

Organizations

A

Practical Guide

toThe Project GameTM

David M. SherrNew Global Enterprises


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Be a Business Focused

Technology Agent of Change

Show me the money!The Project GameTM

Consistency of ValueSteady Supply of Profitable Direction


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V2.2Confidential2008Q4Transacting in Enterprise Technology Organizations

Copyright 2005-8, New Global Enterprises 3

Content

Part 1The Financial Services Enterprise Enterprise Players

Consumption of Vendor Products Enterprise Value Process Pain Point Categories

Part 2

Decision Making in Technology Acquisition andIncorporation ROI/TCO: Value and Risk Measurement Enterprise Stacks View and Guidance Technology Governance as Decision Driver

Part 3Sales Scenarios Operational Efficiency: Optimization of Data Centers Management Control: Next Generation NOC Application Time-to-Market: Service Oriented Architecture


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TheFinancial Services Enterprise

Part 1


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Enterprise Players

Enterprise Decision Makers

Enterprise Advisors


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Enterprise Decision Makers

ActionPoints of View

Player

Business Manager

CIO/CTO

A Level TechnologyManager

Point of View

Business Value

Growth

Low Cost Structure

Business Enabling New Products/Services

Total Cost of Ownership

Technology Control Ease of Adoption

Operational Efficiency


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Enterprise Advisors

ProtectivePoints of View

Player

Strategist

Architect

Subject TechnologyExpert

Point of View

Business Direction

Scale

Scope

Biz-Tech Agility Commodity Infrastructure

Lower Complexity

Technical Integrity State of the Art, Best of

Breed

Stability


8/55Confidential V2.22008Q4Transacting in Enterprise Technology Organizations


Adopting Vendor Products




Products rarely optimize value

without service offerings

Service

Product

Enterprise Software and Hardware

Products are not easily consumed as is

but require a Project to install effectively.




Product Value Consumption

More and more technology is being driven

to commodity pricing But, even so, very little technology is

bought and used as one would officesupplies

For those technologies which resembleoffice supplies in their consumption, theonly real success business model is

Large Supplier To an Enterprise, any Product is a

Project to buy and use successfully




Service Value Consumption

Even when a technology is delivered

packaged in a Product, Service is stillrequired to discover and deliver full Value

Services build Value in real-time,

collaboratively with a Client E.g., Advice cannot be canned like soup

and personalized as Cream of Advice

Soup by adding the milk of personalconversations

Services are highly situational, andtherefore a differentiator!




Enterprise Value Process




Value Process

PaidValue ClientValue

PossibleValue

Discover

Value is found and delivered through a collaborativeprocess among Clients and their Partners

DeterminedValue

Deliver

Deposit

ClientPartner

Collaboration




Value Realization is a Partnership in

Discover Pain

Prescription Product Position Presentation Price

Performance

Deliver Proposal

Proof of Concept Prototype Pilot Production

Deposit Payment

EnterpriseClient

Situation

Provisioner

Capabilities

Demonstrated

ROI/TCO Value

Win-Win-Win!

Solution Idea

Business Context

Requirements

Instrumentation

Roll-Out Plan




Pain Point Categories

P i P i t T b S t




Pain Point Types by Segment

Capital

Markets

Retail

Trading

Investment

AdviceBanking Credit Insurance

Higher trading revenues dependon increasing risk. Underwriting,

not growing. Executions goingto commodity.

Trading prices going to nearzero. Increasing

commissions are beingresisted by more savvyconsumers.

Lots of competition for massaffluent and high net worth.

Downward pressure on feestructures. Underservedemerging affluent $6Tmarket.

Cross selling products togenerate fees.

Segmentation of markets,community banking isgrowing, not going away.

Still recovering fromdisruption of prices due to

9/11. Scandals hurtingestablished firms.Innovation on front endgreatest challenge.

Focus on Core vs ContextBusiness Processes.

Produce Quotes, Rates andIssuance fast enough tomeet and beat competition.Get in front of thecommoditization curve

Paper document processingengenders many errors.

AML, SOX, Basel II, GLB,Patriot Act, Eliot Spitzer

AML, SOX, Basel II, GLB,Patriot Act, Eliot Spitzer,Fraud

AML, SOX, Basel II, GLB,Patriot Act, Eliot Spitzer

AML, SOX, Basel II, GLB,Patriot Act, Eliot Spitzer,Fraud

SOX, GLB, Patriot Act, EliotSpitzer, Fraud

Growth Cost Structure Consolidation Globalization Productivity Regulation/Security

revenue

expense

reven

ue

expe

nse

reven

ue

expense




Decision Makingin

Technology Acquisition

Part 2


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Transacting in Enterprise Technology Organizations Copyright 2005-8, New Global Enterprises. 18

ROI/TCO: Value and Risk

Measurement

Technology is an Asset Category

H l E t i Id tif d D li


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Transacting in Enterprise Technology Organizations Copyright 2005-8, New Global Enterprises 19

Help Enterprise Identify and Deliver

Better ROI and Lower TCOIts an iterative process.

Next Actiondepends on theROI and/or TCO Performance

of the previousAction(s)

Product

or

Service

Enterprise

Project

+ ROI

- TCO

NextAction

ROI/TCO V l M




ROI/TCO Value MeasuresPrecision in Performance Specifications

Revenues earned (ROI)

GrowthValue-Capturing Engine

Cost avoided (TCO)

ControlOperational Discipline

Return on Assets at Margin (ROI)

LeverageFulcrum, Moment and Position

Cost of Money (TCO)

Steady StateFund the Day

Cost of Carry for Total Assets (ROI&TCO)

Fixed CostsThe Nut

Positive

Expectancy




Risk MeasuresPrecision in Potential Loss Assessment

Market

Price MovementResidual Value of Asset Credit

Meeting ObligationsSupplier Financial Viability

Operational

Mis/MalfeasanceIncompetence and Fraud

Political

Destabilizing EventsCoups, Economic, Regional Conflicts

Regulatory

Governmental OversightGovernance and Conduct

Brand Customer ExperienceNegative interactions

Complexity

InteractionsDifficulty in Integrating and Delivering Change

Positive

Expectancy

ROI/TCO B i C




ROI/TCO Business CasesROI TCO


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Enterprise Stacks View

Enterprise Business Process Stacks


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Enterprise Business Process StacksGuidance

Core Source of enterprise competitive

advantage The essential Service Points tosupport the CorBP

SPs are encapsulated in containerswith SLOs and SL NegotiationProtocols

Container includes instrumentationto compute Value Measures

Need to operate carefully as

Enterprise will guard IP very closely Sell tools and customization services Expect to sign non-disclosures

Will be sensitive to even working withperceived competitors

Context Source of little enterprise competitive

advantage, but gotta have Like Equity Clearance, Custody orTrust

The essential Service Points tosupport the ConBPs

As with CorBPs SPs are encapsulated in containers

with SLOs and SL NegotiationProtocols

Container includes instrumentation tocompute Value Measures

Be aware of Enterprises desire toshare investment in these processes Opportunities

Ready referrals to other enterpriseswithin Industry

Pool development among a set ofcompetitors

Create cross enterprise sharedbusiness services

Enterprise Infrastructure Stacks


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Business Common Functionality

Architected to Interoperate

End Use Tool Kit Bias

Application Common Development

Resources and Capabilities

Focused on Service Layers

Business Services

Client Experience

Environmental Common Hardware and

System Software

Utility Focused

Enterprise Infrastructure StacksGuidance for Commodity Platforms

Stress Faster product cycles Shorter time to market

Stress Faster development Ease of change

Stress Lower complexity Ease of automation


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Technology Governance as

Decision Diver

Governance Playbooks

How the Six Players Operatewithin Each Playbook


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Governance Playbooks

Using Organizational Structure andProcess to Advantage

Five Governance Playbooks

How the Six Players Operatewithin each Game Book

Using Organizational Structure and


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Using Organizational Structure andProcess to Advantage

Differing organizational structures distribute decision making power

differently Not just centralized vs decentralized

Corporate is different from business unit specific

Some structures are combinations of different archetypes based on typeof technology

Existence/Non-Existence of Technology Governance processimportant to decision process

Infrastructure is different from Application is different from BusinessProcess

Current focus is on lower cost structure for technology and will continueto be so for some time

Cross business unit leverage can play large

Do ROI, TCO appropriate to enterprises planning horizon

Examine capital needed for development, operation and retirementof technologies

Fi e Go ernance Pla books


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Five Governance Playbooks

and Effective Approaches Church

Hierarchic, vertical control

Federated

Peer-Peer, network control

Feudal

Semi-Independent Operatives, localcontrol

Ad Hoc

Opportunistic, minimal control

Special Forces

Crisis-Oriented, narrow scope, highlyfocused control

I say it, therefore it is

Sell top down, Strategic

Why cant we all just get along?

Sell consolidated approach to keydecision maker in each center ofpower, Strategic

To each, his own

Sell individually to key decisionmaker in each center of power,Tactical

Go with the flow.

Sell to whomever has budget,Tactical

Get in. Get Out. No one gets hurt.Sell most immediate solution, VeryTactical

Determining the Governance Playbook of


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Determining the Governance Playbook of

an Organization


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How the Six Players Operate

within Each Playbook

Decision Behaviors

Pl Pl b k K D i i B h i


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Player-Playbook Key Decision Behaviors

Church Federated Feudal Ad Hoc

Special

Forces

Business

Manager

CIO/CTO

A Level

Technology

Manager

Strategist

Architect

SubjectTechnology

Expert

D

ecisionMake

r

Advisor


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Part 3

Sales ScenariosOperational Efficiency:

Consolidation of Data Centers

Management Control:Next Generation NOC

Application Time-to-Market:Building Enterprise and Departmental Grids

Key Points Review


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Key Points Review


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Q&A


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Reference

Enterprise Business Process Stacks


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Enterprise Business Process StacksGuidance

Core Source of enterprise competitive

advantage

The essential Service Points tosupport the CorBP

SPs are encapsulated in containerswith SLOs and SL NegotiationProtocols

Container includes instrumentationto compute Value Measures

Need to operate carefully asEnterprise will guard IP very closely Sell tools and customization services

Expect to sign non-disclosures

Will be sensitive to even working withperceived competitors

Context Source of little enterprise competitive

advantage, but gotta have Like Equity Clearance, Custody or

Trust

The essential Service Points tosupport the ConBPs

As with CorBPs SPs are encapsulated in containers

with SLOs and SL NegotiationProtocols

Container includes instrumentation tocompute Value Measures

Be aware of Enterprises desire toshare investment in these processes Opportunities

Ready referrals to other enterpriseswithin Industry

Pool development among a set ofcompetitors

Create cross enterprise sharedbusiness services

Wealth Management


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Time Series Information Utility

RiskAnalysis

Utility

InstrumentProfiler

Risk Matrix, Key Events

PortfolioProfiler &

OptimizerMarket Intelligence Utility

Data, News, Corporate Actions, Research

Client

Position

Account Portfolio

InstrumentGeneration

UtilityIntellig

entAgent

U

tility

Knowledge

Management

Utility

Personalization Utility

Scenario Utility

ExecutionU

tility

Acco

untingUtility

Reporting Utility

Execution

Engine

Accounting

Engine

Investment Strategies

Products Services

Plan

Wealth ManagementBusiness Infrastructure Stack


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Application Infrastructure Stack


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Application Infrastructure Stack User Presentation Experiencethe look and feel

of the Client and Provider interaction.

Channel Experiencewhich is howa device/delivery mechanism mediates the ClientExperience: a cell phone is different from aBlackberry is different from a mouse, keyboard

and monitor which differ through direct-connectserved by an agent as opposed to through theWeb.

Business Process Experiencewhich is how theClient and Provider discover and deliver the Valuein those services: this is, after all, theBusiness point of it all.

Business Service Orchestration and

Integrationwhich composes those basic andother composite services: the subject ofcurrent W3C working group debate.

Industry Specific Business Serviceswhichform the basic component substrate: IBM(PwC) has done a version of this for EuropeanBanking.and US Insurance

Application Substrate Serviceswhich handlethe management of (1) security (Identity,

Authorization and Role), (2) messaging protocolsamong components (both within and outside theenterprise, e.g., Web Services, E-Mail, IM, VoIP),(3) session/work flow, (4) personalization, and, (5)the collection, integration, storage and delivery ofdata to components of the Stack: all thesefunctionalities just happen which allows thecreator of functionality of the components to focuson business requirements.

Application Substrate

Services

User Presentation Experience

Channel Experience

Business Process Experience

Business Service

Orchestration

and Integration

Industry Specific

Business Services

Environmental Infrastructure Stack


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Secure, Content AwareNetwork

Processor

Architecture

Application Development

Methods

Application Development

Design Centers

Application

Server

Operating

System

EndUserD

evices

Server

Architecture

StorageArchitecture

Database

Server

Execution Environment

Application Development Methodshow to create thefunctionality of applications that run in the ExecutionEnvironment: Iterative Development, Waterfall, Toolkit.

Application Development Design Centerstoolschoice of J2EE, .Net, C/C++, COBOL or specialized.

Execution Environmentmechanism(s) for deployment,operation and management of functionality: includesUtility, Service Provision and Traditional approaches.

Application Servercontainer managers for executingthreads of Java/C/C++/C## processes: can include loadsharing and automated fail-over capabilities.

Database Serverstandard capability for managingstorage, access and distribution of data: e.g., DB2,Oracle, MySQL, SQL Server, specialized others like post-

relational or in-memory. Operating SystemStandard available like Linux, Unix,

Win2000, ZOS or specialized for mobile devices.

Storage ArchitectureServer attached, networkedattached, RAID enabled.

Processor ArchitectureIntel/AMD, Power, proprietarylike IBM Z series or Apple G series.

Server Architecturesingle box, blade, clustered,single/multiple cores.

End User Devicesmonitor/keyboards/pointer, mobiledevices like phones, PDAs; digital pens, tablets;presentation features like visualization.

Secure, Content Aware NetworkBusiness ServicesNetwork Utility: along with Service location, connectionand management, includes capabilities like data cachingand security enforcement, encryption/decryption, andintegrity.

Environmental Infrastructure Stack


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Appendices

Information Delivery and SOA


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Information Delivery and SOA

Information Delivery Enterprise Viewpoint

Information Delivery Computational Viewpoint

Enterprise Services Backbone Protocols


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Information Delivery


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Enterprise Backbone

Operational Data Stores

Data Mart Application View

Local Availability

Configurable

Enterprise Backbone

Views of Interest Topics of Interest

Events of Interest

Virtual Data Warehouse

Meta Data & Schemas

Aggregation Views Reference Data

Enterprise Backbone

Distribution Intervalscalendarreal-time near-time any time

Information DeliveryComputational Viewpoint

Focus on Information Use: Plug & Play

User

Interface


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Enterprise Backbone Protocols

Enterprise ServiceProtocols

Data Distribution ArchitectureProtocols

Enterprise Service Protocols


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Enterprise Service ProtocolsMessage/Event Distribution Capabilities

Protocol Reliable Broadcast

Service where receiver canknow if message/event missedand request resend

Publish Subscribe Service based on taxonomy of

topics/event types of interestwhere consumer and providerare unknown to each other

Request Reply Service invocation which is

potentially dynamically locatable

Data Stream Service that delivers large units

of data of differing types, textualor bit-based

Business Usage Standard Rates & Quote Distribution

BP Mgmt Dashboard

Get Customer Profile

ETL of G/L Postings from AIM

Views of

Interest

Topics ofInterest

Events of

Interest

Scalable Application Infrastructure


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Scalable Application InfrastructureService Oriented Architecture

to Support an Operational Organization

Application Substrate Services

Prod

ucts

Segme

nts

Channels

BusinessInvestm

entFocus Messaging Layer

Capability Assemble and Sequencing Layer

Enterprise Engine Services Layer

Counterparty Interaction Experience Layer

Modality Experience Layer

User Presentation Layer


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How to Do It Technically:Business value is focus on

Information Delivery

Service Creation, Operations & Support Provisioning capability environments

Experience Service Layering Separate the Counterparty Interaction Experiencefrom the Delivery Modality and then put it backtogether again

Precision Service Engineering Writing it down, recording it in great detail, accordingto plan, an Architecture: The Codex

Installing control data collection points, according todesired gauges, Instrumentation: The Chronicle

The Big Picture


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The Big PictureApplication Components

Enterprise Backbone

Environmental Components

System

Process

Monitor

Business

Process

Monitor

State

Manager

Deploymen

t

Manager

Data

Cache

Manager

Policy

Manager

Event

Manager

Service

Level

Manager

Business

Function/Information

Service

Orchestrator

Integrator

UserScenario

WorkFlow

Channel

Controller

User

Interface

Controller

Environmental Bus

Application BusUser

Interface

Transa

ctionManage

mentSystem

s,

AnalyticsManagementSystems

ConfigurationManagementSystem

s&

Da

taManageme

ntSystems

A


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AData Distribution

Architecture

Building a

Business IntelligenceInfrastructure

Internet, Intranet, Extranet and InfranetData Mart/Warehouse

Application SupportDerived from work donefor Robert Wood J ohnsonFoundation for Web SiteArchitecture, 1999

Functional Components


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Enterprise BackboneDistribution Intervals


Functional ComponentsFocus on Information (Use of Data)

Data Mart Application/Report/

Dashboard View

Local Availability

Configurable

Enterprise Backbone View of Interest

Topics of Interest

Events of Interest

Virtual Data Warehouse

Meta Data & Schemas Aggregation Views

Reference Data

Enterprise Backbone

calendarreal-time near-time any time

Data Warehouse/Mart Architecture


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Analytics

Upd

Data Warehouse/Mart ArchitectureIts all a System of Record (SoR)

ETL, Update, Analytics

Data Marts

VirtualData Warehouse


ETL

Systemof

Record

Distribution Mechanisms


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Distribution MechanismsOverview of Protocols

Interval of Distribution

U

nitofDistr

ibution

database/directory

table/file

message-event/

datum-record

calendarreal-time near-time

Enumerate methods/technologies/tools which achieve distribution functionalities

Views of

Interest

Topics ofInterest

Events of

Interest

I t d l ith


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Issues to deal with

Data Stewardship vs Ownership

Data Quality Assurance

Governance

Legacy Integration (Migration Plan)

Documents

SellingIntoFinSvcsEnterprises-v2.2