DAY3: FINANCIAL SERVICES ADVANCED REFERENCE MODEL WORKSHOP

Transcription

1 DAY3: FINANCIAL SERVICES ADVANCED REFERENCE MODEL WORKSHOP December 7, 2017 Ivan Blinov

2 WORKSHOP OBJECTIVES Gain a deeper understand of Initiatives mapping process (BIZBOK Guide Section 2.6) Define objectives and KPIs using financial services organization strategic goals Assess business impacts through organization, stakeholders, and other domains, aligned around existing capabilities, value streams and information perspectives. Leverage business objectives and initiatives prioritization technique to build a roadmap Define initiatives delivery plan and measure implementation success criteria using KPIs Illustration for Business Architecture Value stream how to deliver a business value Increase the applicability and success of your business architecture practice Expand the existing Financial Services Industry Reference model Feedback from Financial Services Industry SMEs and Business Architect practitioners 2

3 WORKSHOP AGENDA (MORNING) 3

4 WORKSHOP AGENDA (AFTERNOON) 4

5 WORKSHOP LOGISTICS Financial Services reference model overview (45 min) Capability map Value streams map Organization map Review strategic goals and objectives (40 min) Review organization map Goals and objectives Define initiatives and KPIs for objectives (60 min) Define initiatives Mapping KPIs to initiatives and objectives Impact Analysis using Capability and Value Streams maps Initiatives to capabilities (60 min) Initiatives to values (40 min) Roadmap for initiatives implementation (60 min) Prioritize initiatives (30 min) Build a roadmap (30 min) Mapping Results Walkthrough and Discussion (20-25 min/ per breakout team) 5

6 FINANCIAL SERVICES INDUSTRY Reference Model Overview 6

7 BACKGROUND Financial Services Industry Reference Model: Initial version was created during the Guild workshop in December 2015 Financial Services Industry Reference Model team formed in February 2016 First version was published in BIZBOK Guide v 5.0 Section 8.1 in June 2016 Latest version was published in BIZBOK Guide v 6.0 Section 8.1 in June 2017 Progress to Date: Customer-facing Capabilities Level 1-3 to support Commercial banking (Retail, Wholesale) Strategic and Supporting Capabilities Level 1-3 (synchronized with Common Reference Model) Core Value Streams to support Commercial banking business value delivery Financial Services Organization map for Retail, Corporate, Investment Banking and Wealth Management External and Internal Stakeholder map (mapped to value streams triggering and participating stakeholders) Next Set of Work Cross-mapping for stakeholders to organization, business units to capabilities, value stages to capabilities 7

8 FINANCIAL SERVICES INDUSTRY REFERENCE MODEL MAPPING Capability map Capability map Level 1-3 for Customer-facing, Strategic and Supporting tiers Value Streams Core Value Streams to deliver a business value for Commercial Banking Organization map Organization map Level 1-3 for Commercial Banking (Retail, Wholesale) Stakeholder map Internal/External Stakeholders for Commercial Banking and Common Reference model Information map Initial Information Concept (work in progress, not published in BIZBOK Guide) Initiatives and Strategy map Initial mapping is To Be Defined during this workshop and continue working in

9 FINACIAL SERVICES MODEL CORE CAPABILITIES LEVEL 1 9

10 COMMON REFERENCE MODEL STRATEGIC CAPABILITIES LEVEL 1 10

11 COMMON REFERENCE MODEL SUPPORTING CAPABILITIES LEVEL 1 11

12 FINACIAL SERVICES MODEL CORE VALUE STREAMS 12

13 COMMON REFERENCE MODEL VALUE STREAMS 13

14 FINACIAL SERVICES MODEL ORGANIZATION MAP 14

15 FINACIAL SERVICES MODEL STAKEHOLDER MAP 15

16 FINACIAL SERVICES MODEL INFORMATION CONCEPT 12/7/2017 Copyright

17 INITIATIVE RELATIONSHIPS Initiative Mappings to: Business Objective Business Unit Capability Value Stream Value Stage Initiative 17

18 FINANCIAL SERVICES SECTORS Define the workshop scope 18

19 SCOPE Financial Services Industry Reference Model is mainly focused on the needs of the commercial banking sector. Out of Scope Foreign exchange services (currency exchange, wire transfer) Investment services (hedge funds, custody services, angel investors) Insurance (brokerage, underwriting, etc.) Private equity Financial export services Wikipedia 12/7/2017 Copyright

20 COMMERCIAL BANK DEFINITION A Commercial bank is a type of financial institution that provides services such as accepting deposits, making business loans, and offering basic investment products. 1 The traditional commercial bank is a bricks and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees Investopedia ( Wikipedia 12/7/2017 Copyright

21 COMMERCIAL BANKING PRODUCTS & SERVICES Accepting money on various types of Deposit accounts Lending money in the form of Cash: by overdraft, instalment loan etc. Lending money in Documentary form: Letters of Credit, Guarantees, Performance bonds, securities, underwriting commitments and other forms of off-balance sheet exposure. Inter- Financial Institutions relationship Cash management Treasury management Private Equity financing Issuing Bank drafts and Bank checks Processing payments via telegraphic transfer, EFTPOS, internet banking, or other payment methods. Wikipedia 12/7/2017 Copyright

22 COMMERCIAL BANK BUSINESS MODEL Wikipedia 12/7/2017 Copyright

23 ORGANIZATION MAP - RETAIL/PERSONAL BANKING Level Organization Unit (Business Unit) Definition 1 Bank Segments Encompasses the various areas in which customers can interact with a Financial Services Organization. 2 Retail/Personal Banking Handles the administering of products and services to individual consumers. 3 Sales and Operations Handles client relationship management and the processing of a product lifecycle from initiation of an application through funding. 3 Credit Office Handles the decisioning of credit product offerings to an organization's client. 3 Product Office Handles the development and enhancement of the channels product offerings. 3 Portfolio Management Supports the objectives regarding investment mix and policy, including balancing risk against performance. 3 Support Services Handles the back-office support of a channel including call centers, mail centers, systems support, and process support. 23

24 ORGANIZATION MAP - COMMERCIAL/WHOLESALE BANKING Level Organization Unit (Business Unit) Definition 1 Bank Segments Encompasses the various areas in which customers can interact with a Financial Services Organization. 2 Commercial/Wholesale Banking Handles the administering of products and services to commercial clients, businesses, and business owners. 3 Sales and Operations Handles client relationship management and the processing of a product lifecycle from initiation of an application through funding. 3 Credit Office Handles the decisioning of credit product offerings to an organization's client. 3 Product Office Handles the development and enhancement of the channels product offerings. 3 Portfolio Management Supports the objectives regarding investment mix and policy, including balancing risk against performance. 3 Support Services Handles the back-office support of a channel including call centers, mail centers, systems support, and process support. 24

25 ORGANIZATION MAP - CAPITAL MARKETS Level Organization Unit (Business Unit) Definition 1 Bank Segments Encompasses the various areas in which customers can interact with a Financial Services Organization. 2 Capital Markets Supports the raising of capital regarding shares, bonds and other long-term investments. 3 Derivative Markets Services Supports the financial market for financial instruments which are derived from other forms of assets. 3 Foreign Exchange Services Supports the exchange of one currency for another where currencies are traded around the clock. 3 Fixed Income Services Supports the investment under which the issuer is obliged to make payments of a fixed amount on a fixed schedule (includes bonds). 25

26 ORGANIZATION MAP - WEALTH MANAGEMENT Level Organization Unit (Business Unit) Definition 1 Asset Management Handles the forecasting and evaluation of financial risks and the identification of needed remediation efforts to reduce impact to the organization. 2 Asset and Liability Management Handles managing the use of assets and cash flows to meet company obligations, which reduces the organization's risk of loss due to not paying a liability on time. 2 Wealth Management Handles the administering of products and services to individual consumers pertaining to financial and investment advice, retirement planning, and legal and estate planning. 3 Sales and Operations Handles client relationship management and the processing of a product lifecycle from initiation of an application through funding. 3 Credit Office Handles the decisioning of credit product offerings to an organization's client. 3 Product Office Handles the development and enhancement of the channels product offerings. 3 Portfolio Management Supports the objectives regarding investment mix and policy, including balancing risk against performance. 26

27 ORGANIZATION MAP CORPORATE FUNCTIONS Level Organization Unit (Business Unit) Definition 1 Corporate Functions Handles the various areas necessary in a corporate structure. 2 Legal Provides legal services for the organization by addressing legal risk and providing advice and counsel. 2 Audit Conducts reviews to ensure that compliance criteria are met by the organization. 2 Finance Handles the management of financial affairs for an organization. 2 Supply Chain Management Handles the management of materials, information, and finances as they move from supplier to consumer. 2 Human Resources Manages the personnel of the organization, including the hiring, administration, and training of personnel. 2 Shared Services Handles the provision of services to more than one part of the organization, effectively becoming an internal service provider. 2 Corporate Communications Supports the management and orchestration of all internal and external communications for an organization. 2 Marketing Handles the promotion and selling of products or services, including market research and advertising. 2 Mergers and Acquisitions Supports corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an organization grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. 2 Non-Strategic Asset Management Handles the management of assets that do not directly produce revenue for the organization. Ex: Real Estate, Equipment, Etc. 2 Realty Services Handles the management of the owned and leased real estate portfolio of the organization. 2 Treasury Management Handles the management of an organization's holdings with the goal of managing liquidity and mitigating risk. 27

28 STRATEGIC OBJECTIVES & INITIATIVES Establish/Refine Business Strategy 28

29 REVIEW STRATEGICS GOALS AND OBJECTIVE Review strategic goals and objectives Overview of examples financial services organization strategic goals and objectives. Additional objectives will be identified for a given financial services industry sector. BIZBOK Guide Section 2.1: Business strategy mapping to review goals and objectives Define initiatives and KPIs for objectives Identification candidates for initiatives to support organization goals and objectives. Each objective and initiative might include a mapping to KPI that helps to measure its achievement. BIZBOK Guide Section 2.6: Initiative mapping to apply the principles and initiatives mapping guidelines. 29

30 INITIATIVES IMPACT ANALYSIS Assess Business Impacts 30

31 MAP INITIATIVES TO CAPABILITIES AND VALUE STREAM Mapping Initiatives to Capabilities Analysis completeness of a given financial services industry capability map to support a given and identified organization objectives and initiatives. Participants will identify the missing capabilities and evaluate a feasibility for achievement the organization objectives. BIZBOK Guide Section 2.2: Capability mapping and Section 2.6: Initiative mapping to apply the principles and initiatives mapping guidelines. Mapping Initiatives to Value stream Identify the impacted value streams that are required to support the initiatives and objectives. Leverage a given financial services industry value streams to map initiative to impacted values. Additional details will be captured through the value to capability cross-map for each value stage. BIZBOK Guide Section 2.4: Value Mapping and Section 2.6: Initiative mapping to apply the principles and initiatives mapping guidelines. 31

32 CORE CAPABILITIES FINANCE MANAGEMENT Tier Level Capability Definition 2 1 Finance Management Ability to plan, direct, monitor, organize, control, and report on the monetary aspects and resources of the business. 2 2 Financial Forecasting Ability to predict and assess the financial aspects of the business using, but not limited to, history and market trends. 2 2 Finance Allocation Ability to distribute the financial resources of the business to such things as operating expenses, assets, investments, and payments. A budget is one type of financial allocation. 2 2 Financial Account Management Ability to establish, maintain, balance, audit, secure, and provide access to a named container of monetary value, organized into debits, credits, liabilities, equity, and related categories, that includes, but is not limited to, customer, savings, checking, payable, general ledger, budgetary, and receivable categories. 2 2 Financial Risk Determination Ability to determine, define, monitor financial threats and vulnerabilities related to the financial condition of the business. 2 2 Currency Management Ability to determine, represent and value a monetary representation or system of money. 2 2 Tax Management Ability to determine, calculate, remit, report on the compulsory contribution of monetary value to governing bodies. 2 2 Payment Management Ability to determine, approve, commit, execute, record, report on a movement of monetary value into or out of a business. 2 2 Financial Transaction Management Ability to authorize, handle, record and apply an an instance of a monetary event or related exchange across businesses, agreements, financial accounts, or other. 2 2 Finance Matching Ability to associate financial aspects of the business to other aspects of the business. 2 2 Finance Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about the financials of the business. 32

33 CORE CAPABILITIES CUSTOMER MANAGEMENT Tier Level Capability Definition 2 1 Customer Management Ability to control, predict, process, organize, present, and analyze all information, documents, preferences, experiences, and history related to an individual or other legal entity who has, plans to have, or had a formal contract in place with the organization. 2 2 Customer Access Management Ability to maintain and control the products and channel access that a customer has in place. 2 2 Customer Authentication Ability to verify that customers are who they say they are. 2 2 Customer Identification Ability to identify an existing customer. 2 2 Customer Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about a customer. 2 2 Customer Needs Assessment Ability to assess a customer s needs usually for the purpose of associating, recommending and/or identifying a product and/or financial instrument to meet those needs. 2 2 Customer Matching Ability to associate customers with other business objects and capabilities. 2 2 Customer Interaction Management Ability to capture and store all points of engagement that a customer has with the business, regardless of channel, and the ability to suspend and restart the interaction across the same or alternate channel. 2 2 Customer Risk Determination Ability to assess the risk associated with entering into an agreement with a customer. 2 2 Customer Tax Reporting Ability to consolidate and report on tax-related activity for a customer. 33

34 CORE CAPABILITIES AGREEMENT AND CHANNEL MANAGEMENT Tier Level Capability Definition 2 1 Agreement Management Ability to establish, organize, analyze, administer, and report on all aspects of a legally binding contract between the organization and a customer or other third party. 2 2 Agreement Application Management Ability to define, design, create, and otherwise manage the agreement application which includes determining necessary information to be collected. 2 2 Agreement Information Management Ability to organize, track, report on, or otherwise disseminate attributes and data related to an agreement. 2 2 Agreement Risk Determination Ability to assess the risk associated with entering into an agreement with a customer. 2 2 Agreement Matching Ability to associate agreements with other business objects and capabilities. 2 1 Channel Management Ability to establish, analyze, utilize, optimize, and coordinate various mechanisms through which customers and other third parties interact with the organization. These various mechanisms include physical as well as virtual; for example, branches, kiosks, ATMs, Credit Cards, Cheques, handheld device apps, and online websites. 2 2 Channel Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about a channel. 2 2 Channel Definition Ability to establish a new channel. 2 2 Channel Performance Management Ability to assess the performance, profitability, and effectiveness of a customer channel. 2 2 Channel Matching Ability to associate a channel with other business objects. 34

35 CORE CAPABILITIES PRODUCT MANAGEMENT Tier Level Capability Definition 2 1 Product Management Ability to conceptualize, design, develop, bundle, and maintain goods and services offered by the financial institution. 2 2 Product Definition Ability to create a product after it has been designed. 2 2 Product Deployment Ability to plan and administer the deployment activities for offered products, including deploying product changes. 2 2 Product Information Management Ability to maintain all product attributes and other information. 2 2 Product Performance Measurement Ability to assess the coverage and relative performance/profitability of products and product combinations/bundles. 2 2 Product Pricing Ability to set and maintain a current price list (with ranges and optional terms) by product/customer type, including standard and special (promotional) pricing. 2 2 Product Design Ability to conceptualize, define, and specify products manufactured by the enterprise. 2 2 Product Retirement Ability to manage the final stages of a product s existence. 2 2 Product Matching Ability to associate products with other business objects and capabilities. 35

36 CORE CAPABILITIES FINACIAL INSTRUMENT & COLLATERAL Tier Level Capability Definition 2 1 Financial Instrument Management Ability to administer, valuate, and report on a tradeable asset, such as stocks, bonds, bill of exchange, futures, options, evidence of ownership, and cash, that has monetary value. 2 2 Financial Instrument Information Management Ability to organize, track, report on, or otherwise disseminate attributes and data related to a financial instrument. 2 2 Financial Instrument Valuation Ability to determine and assign the monetary worth of a financial instrument, including mark-tomarket and other valuation mechanisms at a point in time. 2 2 Financial Instrument Matching Ability to match financial instruments with other business objects. 2 2 Financial Instrument Custodial Management Ability to hold financial instruments in safekeeping on behalf of a third party. 2 2 Financial Instrument Corporate Action Management Ability to administer the correct allocation of entitlements to a customer arising from corporate actions of financial instruments. 2 1 Collateral Management Ability to establish, organize, analyze, administer, and report on all aspects of property or other asset that a customer offers as security to a borrowing or lending agreement 2 2 Collateral Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about a piece of collateral. 2 2 Collateral Risk Determination Ability to assess the risk associated with property or asset pledged as security. 2 2 Collateral Matching Ability to associate collateral with other business objects and capabilities. 36

37 CORE CAPABILITIES PORTFOLIO MANAGEMENT Tier Level Capability Definition 2 1 Portfolio Management Ability to control, organize, and allocate a defined set of investments to achieve an acceptable balance of risk, return, and volatility. 2 2 Portfolio Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about a portfolio. 2 2 Portfolio Valuation Ability to assess and determine the monetary worth of a portfolio in whole or in part. 2 2 Portfolio Allocation Determination Ability to define the model/target allocation mix of investments to achieve the objectives as defined for the portfolio. 2 2 Portfolio Variance Assessment Ability to measure the current portfolio allocation against the model allocation. 2 2 Portfolio Performance Measurement Ability to measure the performance of a portfolio, which includes calculating rate of return and other types of measurements. 2 2 Portfolio Matching Ability to associate portfolios with other business objects and capabilities. 37

38 CORE CAPABILITIES ORDER MANAGEMENT Tier Level Capability Definition 2 1 Order Management Ability to place, settle, match, and otherwise manage a request by one party to another to buy, sell, or exchange financial instruments or other goods or services. 2 2 Order Information Management Ability to organize, track, report on, or otherwise disseminate attributes and data related to an order. 2 2 Order Definition Ability to create an order. 2 2 Order Placement Ability to place or enter an order for the exchange or trade of a financial instrument in the appropriate market(s). 2 2 Order Settlement Ability to control, execute, and record the exchange of financial instruments in accordance with the order terms and conditions. 2 2 Order Quote Management Ability to obtain and provide offers for exchange of a financial instrument in response to a trade order. 2 2 Order Matching Ability to associate an order with other business objects and capabilities. 2 2 Portfolio Matching Ability to associate portfolios with other business objects and capabilities. 38

39 CORE CAPABILITIES PARTNER MANAGEMENT Tier Level Capability Definition 2 1 Partner Management Ability to control, predict, process, organize an individual or organization that has, plans to have, or has had a legally binding agreement with the business with the intent of sharing risk and profit. 2 2 Partner Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other perspectives about a partner. 2 2 Partner Definition Ability to establish a new partner. 2 2 Partner Risk Management Ability to assess the likelihood of harm to the business associated with a partner and/or partnership. 2 2 Partner Matching Ability to associate a partner with other business objects and capabilities. 39

40 STRATEGIC CAPABILITIES LEVEL 1 Tier Level Capability Definition 2 1 Brand Management Ability to establish, organize, analyze, administer, and report on all aspects of a category of product or offerings under a particular name, unique symbol, mark, or logo that distinguishes it from other products in the market. 2 1 Business Management Ability to set strategic direction, generally govern, manage operational execution, and measure performance against plan for the legal entity and its ecosystem. 2 1 Intellectual Property Management Ability to define, establish, validate, value, obtain, or dispose of inventions, patents, trademarks, trade secrets, copyrights, and know how as a basis for furthering the overall mission of the enterprise. 2 1 Investment Management Ability to identify, develop, analyze, valuate, exchange, acquire, dispose of, and report on any type of monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit. 2 1 Market Management Ability to identify, name, analyze, frame, and cater to an actual, virtual, or otherwise nominal place where forces of demand and supply operate, and where buyers and sellers interact directly or through intermediaries to exchange products and services for monetary or non-monetary value. 2 1 Message Management Ability to define, craft, frame, vet, disseminate, and track a structured conveyance of information, including missives, notifications, alerts, and other internally or externally targeted communication about the company's mission, products, plans, activities, and other focal points. 2 1 Plan Management Ability to develop, communicate, and coordinate an articulated direction, related work items, and priorities to further business development, organizational priorities, and enterprise goals and objectives across business units and entities within or outside the organization. 2 1 Policy Management Ability to establish, maintain, comply with, and administer a set of statues, legislation, rules, procedures, regulations, treaties, and principles driven by internal business directives and external organizations, governments, or related third-party actors. 2 1 Research Management Ability to conduct systematic investigation into materials and sources in order to establish facts and reach conclusions that comprise a result. 2 1 Strategy Management Ability to define and disseminate mission, vision, goals, objectives, action items, and key performance indicators for the business, products, or other interest as required. 40

41 SUPPORTING CAPABILITIES LEVEL 1 Tier Level Capability Definition 2 1 Asset Management Ability to acquire, create, track, report on, and dispose of, tangible or intangible property, with intrinsic value. 2 1 Event Management Ability to establish, use, sustain, disseminate, and analyze an occurrence or happening at a determinable time and place, including physical and virtual meetings, conferences, or related gatherings of two or more persons. 2 1 Human Resource Management Ability to assess, mentor, compensate, terminate, and otherwise coordinate individuals that are or have been incorporated under a legal agreement that includes compensation and other benefits, on a temporary or permanent basis. 2 1 Information Management Ability to define, organize, structure, secure, protect, and disseminate facts, statistics, attributes, and other types of data about a business set of business objects. 2 1 Job Management Ability to identify, define, assign, and manage accountabilities whether remunerative or nonremunerative, assigned, specific, and accountable business duty, role, or function that can be executed by a human or non-human resource. 2 1 Legal Proceeding Management Ability to direct, administer, oversee, respond to, and generally administer all aspects of work related to a litigation filing, including trials, appeals, or related actions. 2 1 Location Management Ability to define, calculate, articulate, determine, disseminate, or otherwise track a position or site of any given entity (person, organization, equipment, product etc.) 2 1 Program Management Ability to organize, plan, direct, and communicate progress against milestones to deliver outcomes within defined resources, time, quality, and scope constraints. 2 1 Training Management Ability to define, conceptualize, create, and convey structured content and knowledge in consumable format, associated with a curriculum a course, workshop, seminar, or related content. 2 1 Work Management Ability to capture, organize, prioritize, route, interpret, disseminate, and administer communications, tasks, and related decisions. 41

42 CORE VALUE STREAM ESTABLISH AGREEMENT Value Stream Stage Receive Request Description Entrance Criteria Exit Criteria Value Item Stakeholders The act of receiving a request or expressed interest in creating or updating an account and verifying requester s identify. Expressed request to establish or update an agreement Identified requester with validated request Requested initiated, acknowledged and accepted Customer Service Advisor, Customer, Partner Identify Needs Collect Approval and Submission The act of assessing the needs of the customer in order to recommend the agreement. The act of receiving the requestor s approval to proceed and gathering and validating all remaining information needed to establish or modify an agreement. Identified requester with unidentified needs Identified agreement type and needs Identified requester with identified needs and identified agreement type Information needed to establish or update agreement available Needs communicated and understood Information needed to establish or update agreement accepted Customer Service Advisor, Customer, Financial Planner, Product Specialist, Partner Customer Service Advisor, Customer Evaluate Risk The act of both parties (the requestor and the business) assessing the risk of establishing or updating the agreement and agreeing to proceed. All information necessary to establish the agreement available Parties agree on and accept the risks of establishing or updating an agreement Risks to proceed are acceptable Customer Service Advisor, Risk Officer, Customer, Partner Activate Agreement The act of activating the requester s agreement. Parties agree on and accept the risks of establishing or updating an agreement Agreement activated or updated Agreement is activated and current Customer Service Advisor, Partner Perform Postactivation Activities The act of performing any post-activation activities such as notifications, compliance verification, quality assurance checks. Activated and current agreement slated for finalization Essential agreement finalization activities completed Agreement activation activities and notifications finalized Customer, Customer Service Advisor, Channel Manager, Partner 42

43 CORE VALUE STREAM DEVELOP AND LAUNCH PRODUCT Value Stream Stage Conceptualize Product Description Entrance Criteria Exit Criteria Value Item Stakeholders The act of envisioning and articulating a new or modified product based on market research, competitive analysis, customer input, and other insights. Business strategy or plan and expressed need or idea for a product Product concept defined in accordance with business strategy Product concept ready for test marketing Product Manager, Product Owner, Customer Market Test Product Concept The act of test marketing a product concept and establishing appropriate pricing and profitability models. Product concept defined Decision to proceed with product launch Product concept is viable and profitable Product Manager, Delivery Channel Owner(s), Project/Program Manager, Marketing Manager, Financial Controller Design and Create Product The act of designing and creating the product and everything required to support it. Decision to proceed with product launch Product ready for launch Product created and ready for deployment Product Manager, Delivery Channel Owner(s), Project/Program Manager, Marketing Manager Pilot Product The act of performing an initial small deployment of the product in order to mitigate risk, test, and verify. A product ready for launch Piloted product, decision to proceed with full deployment Product and product distribution tested and verified Product Manager, Delivery Channel Owner, Project/Program Manager, Marketing Manager, Financial Controller Deploy Product The act of correcting any product deficiencies that were identified in the pilot deployment and fully deploying the product to all applicable delivery channels. Piloted product, decision to proceed with full deployment A successfully, fully launched product Product fully deployed Product Manager, Delivery Channel Owner, Project/Program Manager, Marketing Manager Assess Product Launch Success The act of verifying and assessing the performance of the product launch. Successfully, fully launched product Qualitative and quantitative metrics regarding the product are available Quality of product launch rating Product Manager, Delivery Channel Owner, Project/Program Manager, Marketing Manager, Financial Controller 43

44 CORE VALUE STREAM EXECUTE TRANSACTION Value Stream Stage Initiate Transaction Description Entrance Criteria Exit Criteria Value Item Stakeholders The act of requesting financial activity on an agreement. Request received to make a transaction Request accepted Requested transaction is being processed Customer, Partner Authorized Representative, Customer Service Advisor, Internal Stakeholder Validate Transaction Request The act of ensuring that the requestor has authority to request the transaction and the agreement is in a valid state to allow the transaction to occur. Request received Request validated for processing Requested transaction is validated and able to proceed Customer Service Advisor, Account Manager Identify Related Impacts Perform Transaction The act of identifying all related effects of the transaction, including, for example, fees and charges. The act of applying request changes to the agreement balance and calculating the new agreement balance. Request validated for processing Transaction impacts identified Transaction impacts identified Transaction performed Related transaction impacts are identified Requested transaction is performed Product Manager, Account Manager Customer Service Advisor, Financial Controller Notify Stakeholders The act of notifying all stakeholders of the transaction and related events. Transaction performed Agreement holder and all stakeholders notified Stakeholders are notified of transaction Customer, Partner, Authorized Representative, Customer Service Advisor, Internal Stakeholder Verify Compliance The act of ensuring that processed transactions are recorded and retained in accordance with organization and regulatory policy. Transaction performed and all stakeholders notified All necessary transaction activities and compliance validation is complete A fully compliant transaction is complete Customer, Partner Authorized Representative, Customer Service Advisor, Channel Manager 44

45 CORE VALUE STREAM TRADE FINANCIAL INSTRUMENT Value Stream Stage Initiate or Request Trade Description Entrance Criteria Exit Criteria Value Item Stakeholders The act of making a request for trading a financial instrument. Need for trade determined / recognized Trade request submitted and received Requested trade is in progress Investor, Broker Dealer Select accredited Broker-Dealer Validate Trade Request The act of determining and selecting which broker-dealer will execute the financial instrument trade The act of verifying if the requested financial instrument is suitable for the investor according to established investment goals Trade request initiated Broker-dealer selected Accredited and authorized brokerdealer has responsibility for the trade Trade request initiated Trade request validated Trade order ready for placement in the market Investor, Broker Dealer Registered Representative, Broker Dealer Obtain Trade Quotes The act of obtaining all available quotes for the requested instrument exchange. Trade request Validated Trade order quotes received Trade order quotes obtained Internal Firm, Broker Dealer, Investment Manager Execute Trade Order Settle Trade The act of fulfilling (i.e., entering into an agreement with the counterparty to exchange the instrument) the trade order externally and matching to the investment trade agreements. The act of exchanging the agreed upon financial instruments and verifying that the trade was done in accordance with all policies, regulations and procedures. Trade order submitted Trade order confirmed Trade order agreed/ confirmed Trade order confirmed Trade settled between stakeholders (cleared) Requested trade is completed Broker Dealer, Security Trading Organization, Stock Exchange Broker, Market Maker Broker Dealer, Investor, Trust Bank (Custodian) 45

46 CORE VALUE STREAM RESOLVE ISSUE OR INQUIRY Value Stream Stage Identify or report issue or inquiry Classify, Investigate & Determine Cause Resolve Notify Stakeholder(s) Description Entrance Criteria Exit Criteria Value Item Stakeholders The act of gathering all the known details of the exception/issue for the purpose of tracking and reporting through to resolution. The act of classifying and investigating the issue in order to determine the root cause. The act of formulating and applying a course of action to correct or offset the effects of the issue. The act of notifying all stakeholders of the status and resolution of the issue. An issue has been reported or an inquiry has been received An identified and recorded case An issue with an identified cause Corrected issue Issue identified and recorded Root cause of the issue identified Issue accepted for review Root cause of the issue is identified Customer Service Representative Customer Service Representative, Channel Manager, Product Manager Issue corrected Issue is resolved Customer Service Representative, Channel Manager, Product Manager Stakeholders notified and satisfied All stakeholders notified of resolution Initiating Stakeholder, Customer Service Representative Prevent Recurrence The act of making any changes to products and/or operational processes in order to prevent (or at least reduce the likelihood) of a recurrence of the issue or similar issues. Corrected issue and stakeholders notified and satisfied Corrective actions to prevent future occurrence Actions taken to ensure likelihood of issue recurring is reduced Customer Service Representative, Channel Manager, Product Manager 46

47 INITIATIVES DELIVERY ROADMAP Establish Initiative Plan 47

48 PRIORITIZE OBJECTIVES TO CREATE A MULTI-YEAR ROADMAP Prioritize objectives and initiatives Review objectives and initiatives using a cross- mapping to the financial services core values and capabilities to identify its business values and feasibility of achievement. Evaluation of each objective importance such as Essential, Valuable, Nice-to-have and capabilities availability should help to prioritize the earlier identified initiatives that serve to achieve organization s strategic goals, objectives. Create a roadmap for initiatives implementation Drafting a multi-year roadmap to schedule the prioritized objectives, initiatives to support organization s strategic goals. Breakout teams can include additional details such as KPIs to measure an achievement for each objective to monitor and track the results before and after initiative s execution. 48

49 WORKSHOP RESULTS WALKTHROUGH Deploy Business Solution 49

50 RESULTS, DECISIONS AND CLOSING REMARKS Mapping Results Walkthrough and Decisions Participants of each workshop breakout teams will leverage their team s work to demo a draft roadmap for the execution schedule for organization s initiatives to support strategic goals and objectives. It is a great opportunity to illustrate the role of business architecture in the organization strategic planning to deliver the business value driven solutions. Workshop Closing Remarks Overview of the next steps to incorporate the workshop results in the reference model for financial services industry and support the end to end organization strategic planning. 50

51 FINANCIAL SERVICES INDUSTRY Reference Model Next Steps 51

52 NEXT STEPS FOR FINANCIAL SERVICES REFERENCE MODEL Focus on creating cross-mapping to identify gaps in the model Refine cross-map for value stream to capabilities identify missing capabilities Create cross-map for organization to capabilities identify missing capabilities Review cross-map for stakeholders to value streams identify missing stakeholders Create cross-map for stakeholders to organization identify missing business units Leverage the workshop results to add initiatives map in the model Refine cross-map for initiatives to capabilities identify missing capabilities Refine cross-map for initiatives to value streams identify missing value streams Refine cross-map for initiatives to business units identify missing business units Enrollment for the financial services reference model group is open for all workshop s attendees! 52