Exercise 1. inspired! No sample solution. Just case study familiarisation for students. Practical TOGAF 9 - Q

Transcription

1 Exercise 1 No sample solution. Just case study familiarisation for students.

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3 Stakeholders (Ex 2b) Stakeholder Bank Executive Committee (Exco) Board of Directors Shanghai/ Beijing Regional Execs Hong Kong Regional Execs London Regional Execs Shareholders Clients IT Management Statutory Bodies Vendors Chinese Government Counter Parties Partners Staff Unions Internal / External Internal External Internal Internal Internal External External Internal External External External External External Internal External

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5 Architecture Principles (Ex 3)

6 Architecture Principles (Ex 3)

7 Architecture Vision (Ex 4) Vision Description 2018 Business Vision Established as a global top 20 bank operating on all continents with consistent growth and profitability Offering consistent and attractive core banking and investment products and services in all markets and regions where we operate Supporting and profiting from the global expansion in Chinese business and political affiliations Able to expand into a new territory rapidly via "Bank in a Box" concept Recognised as a low risk option and compliant with applicable risk containment models including Basel III Accepted in each community where we operate and providing culturally and language appropriate services Socially and ecologically responsible, thereby ensuring sustainability 2018 Technology Vision 24 hour 365 day service availability for all back end services across all territories Consistent back end applications servicing all territories Language and culturally appropriate, legally compliant front end applications in each market Data integrated, accurate and seamlessly and timeously available to all authorised parties regardless of location Efficient, secure and robust global communications network Minimal set of technologies to allow delivery of required services at optimal cost Services required to support a regional operation delivered in a configurable package (viz: "Bank in a Box"). Configuration within a jurisdiction to be achievable in < 3 calendar months Applications and infrastructure to exploit service oriented concepts to provide flexibility and rapid adaptability while ensuring continuity

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9 Team Assignment 5 Stakeholder Internal / External Concerns Views Items in italics are non-togaf Bank Executive Committee (Exco) Internal 1 Business Continuity 2 Business Expansion 3 Regulatory Compliance 4 Cost Management 5 Competitiveness 6 Governance 1 Technology Portfolio Catalogue & Networked Computing/ Hardware Diagram & Environments and Locations Diagram 2 Environments and Locations Diagram 3. Business Capabilities Roadmap 4. Technology Standards Catalogue 5. Product Catalogue 6. Principles Catalogue Board of Directors Internal 1 Risk Management 2 Business Expansion 3 Cost Management 4 Competitiveness 5 Reputation 1. Principles Catalogue & Technology Portfolio Catalogue & Risk Register 2. Environments and Locations Diagram 3. Technology Standards Catalogue 4. Product Catalogue 5. Principles Catalogue Shanghai/ Beijing Regional Execs Internal 1 Risk Management 2 Business Continuity 3 Cost Management 4 Service Delivery 1. Principles Catalogue & Technology Portfolio Catalogue & Risk Register 2. Technology Portfolio Catalogue & Networked Computing/ Hardware Diagram & Environments and Locations Diagram 3. Technology Standards Catalogue 4. Service Function Catalogue Hong Kong Regional Execs Internal 1 Flexibility 2 Interoperability 3 Autonomy 1&3. Organization Actor Catalogue 2. Technology Standards Catalogue & Interface Catalogue

10 Team Assignment 5 - Cont d Stakeholder London Regional Execs Internal / External Internal Concerns 1. Marketing 2. Customer Experience 3. Compliance 4. Competitiveness Views Items in italics are non-togaf 1. Product Catalogue 2. Application and User Location Diagram 3. Principles Catalogue & Application Migration Diagram 4. Product Catalogue Shareholders External 1. Risk 2. Returns 1. Principles Catalogue 2. Driver/Goal/Objectives Catalogue Clients (represented by Client Service) External Internal 1. Customer Experience 2. Risk 1. Product Catalogue & 2. Application and User Location Diagram 2. Principles Catalogue & Risk Register IT Management Internal 1. Cost Management 2. Risk 3. Service Delivery 4. Application Portfolio 5. Technology Portfolio 6. Skills 7. Security 1. Technology Standards Catalogue 2. Principles Catalogue & Risk Register 3. System Organization Matrix & Application and User Location Diagram 4. Application Communication Diagram & Application Migration Diagram 5. Technology Portfolio Catalogue 6. Staff Resources and Skills Matrix 7. Data Security Diagram Statutory Bodies External 1. Risk 2. Compliance 1. Principles Catalogue & Risk Register 2. Principles Catalogue & Data Migration Diagram & Process Flow Diagram

11 Team Assignment 6 - Business Capabilities Table Capability Category Core Banking Services Investment & Forex Services Financial & Tax Advice Services Geographic Representation Ability to Grow the Business Business Continuity Current Capability Competent and Robust, with exception of some reliance on old technology. Not completely Basel III compliant Competent and Robust. Not Automated Incomplete. Limited by monolithic systems, non-standard processes, lack of multi-lingual support DR Capability for core banking back end. No capability in Regions Legal Compliance Control Costs Generate New Products Security & Trust Basel II Costs higher than necessary due to legacy technology, proprietary network, system redundancy, technology redundancy, leading to higher license and support costs Limited. Knowledge embedded in systems Security could improve. Especially with new sophisticated attacks. Anti-Money-Laundering capabilities must improve to meet new international norms.

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13 Business Gap Analysis (Ex 7) China Fortune Bank - Business Gap Analysis Target Architecture Core Banking Service Produce Investment Returns Interface to Partners and Central Bank Manage Risk Core Banking Service partial match Produce Investme nt Returns included Interface to Partners and Central Bank included Manage Risk partial match Rapidly Deploy in New Region Legal and Basel Comp Business Continuity Electronic Document and Workflow Statutory Reporting all Regions Single Customer View Statutory Reporting partial match separate solutions Customer Management GAP update for architecture principles, ensure scalability Risk scoring, analysis, monitoring and history keeping will have to be upgraded for Basel Bank in a Box concept, multilingual, culture respected, local reporting requirements Data implications, process implications, system implications, reporting Archival, Data Management, Disaster recovery sites, procedures etc. Scanning, routing, indexing, storage, communicati on eliminate multiple solutions. Create unified capability to meet statutory reporting requirements in all regions Single consolidated customer information management service ELIMINATE eliminate unique replicated data in old systems

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15 Team Assignment 8 Existing Assets mapped to Domain Model Customer Location Employee Partner Channel Institution MF/DB2 MF/VSAM AS400 Oracle Adabas MsSQL Embedded in Application X X X X X X X Product X For Loans Financial Tx X X Non-Financial Tx Instrument Trade Document Standards Compliant? X X X X X X Yes No Yes Yes No Yes

16 Domain Objects Technology Mapping (Assignment 8 Alt Format) MF/DB2 MF/VSAM AS400 Oracle Adabas MsSQL NOTES: Customer is split because Agreement has Customer Info. Agreement is split since it represents Loans as well. Risk data is in Limit, Agreement, Account. MsSQL shown for Non- Financial Transaction due to Quotes. Many items that are not shaded are currently not explicit in data but encoded in Applications - e.g. Product rules, Location, Rates etc. Excerpted from: Inspired Banking Reference Model - copyright Inspired 2008 Practical TOGAF 9 - Q

17 Practical TOGAF 9 Assignment 9 Data Baseline Architecture Category Customer Customer Applications Customer Quotes Customer Accounts - Banking Transactions Customer Agreements Risk Scores Loans Treasury Accounts Assets Asset Insurance General Ledger Accounts Clearance Transactions Statutory Reports - China - Hong Kong - UK Stocks, Trades, Forex Documents Workflow Product Information Human Resources Jurisdiction/currency Existing Asset Principle Compliant? Comments Customer DB DB2 Y CUSTACC Customer DB DB2 Y APPS Quotes DB Ms SQL Windows Y QUOTES Accounts DB DB2 Y CUSTACC Transaction DB DB2 Y RETAILINTERFAE Transaction DB Ms SQL Y WESTERNUNION Contracts VSAM Files N AGREEMENT Customer, Account DBs DB2 Y RISKAVERSE Loans DB DB2 Y LOANS Treasury Accts DB DB2 Y TREASURE Asset Records VSAM Files N ASSETMAN Asset Cover DB DB2 Y ASSETSURE GL Files VSAM N LEDGERMASTER Transaction DB DB2 Y TRANSFER Reports DB DB2 Y GOVTREP Reports Oracle Y GOVTREPHK Reports SQL Server Windows Y GOVTREPUK RelalTrade DB Oracle Y RealTrade?? N DOCUMAGIC Worflow DB Adabas N FLOWMATIC embedded in apps and N customer & account databases files N SCALIX HR DB Adabas N HUMANRESOURCES embedded in apps N

18 Information Architecture Building Blocks (Assignment 9) Building Block Functions Provided Rationale Consolidated Customer Information Consistent Integrated Customer information (where Customer includes prospects and past customers) available as a service to applications, reporting and business intelligence tools. We need accurate and consistent customer information to underpin enhanced customer service and risk management (leading to Basel II Compliance). It should be possible to see the customer and his/her portfolio across all business units and product categories. Enhanced functionality should track the interaction with the customer as well as any issues related to customer and their resolution. Information will also be enhanced to prevent money laundering. Comprehensive Risk Scoring and Analysis Data Consolidated Financial, Compliance and Regulatory Reporting Provide a reliable view on risk related to Customers, Products, Business Units, Staff Members, CoRespondents and other entities. Support full capabilities required to do internal risk assessment as well as to integrate external views (e.g. from credit bureaux). A generic capability to perform financial, compliance and regulatory reporting using data from source systems. Capable of handling multiple currencies and requirements for multiple jurisdictions. Basel compliance requires us to keep more information, at higher levels of accuracy and for longer than we currently do. We also need to have a more complete view of the portfolio so that we can do better risk scoring. Further, we are required to keep risk data for longer and report in more sophisticated ways. These capabilities will be supported by the new offering. Provides a single solution to address financial reporting, regulatory compliance (for reserve banks, financial service regulators and Basel II) that is configurable per territory. Will typically be provided by reporting engine coupled with industry and Basel data models.

19 Information Architecture Building Blocks (Ass. 9 - Cont d) Building Block Functions Provided Rationale Document Management Service Provides a standard facility for the capture, storage, indexing, retrieval, versioning and archival of documents in a variety of popular formats including word processing, spreadsheets, HTML, pdf, Powerpoint and others. Storage, indexing, versioning, retrieval, full text search, compression, security, archival. Document management is a generic function required across organization units and application areas. It enhances value and reduces costs if this is provided as a standard service which applications and user communities can call upon. Product Configurator Removes product configuration and design details as well as limits, rates and other parameters from code and places them in a database for easy design of new products and maintenance of existing products. Provides services related to products to other applications and processes. Removing the product definition and configuration from code allows greater flexibility in product design, reduces time to market (increase agility) and reduces maintenance cost and business reliance on IT skills availability Master Data Management A utility layer that provides consistent service oriented access to consolidated logical data view regardless of underlying implementation technologies. Will assist with achieving single client view and in migration from legacy technologies to new implementations with minimal impact to running applications.

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21 Practical TOGAF 9 Assignment 10 Applications Baseline Architecture Category Product Modeling Core Banking Loan Administration Asset Management Risk Scoring Forex & Currency Trading Stock Trading/Futures/Derivatives Investment Analysis Tax Modeling Financial Modeling Clearing and Settlement Statutory Reporting Business Analysis and Modeling HR and Payroll General Ledger Decision Support Purchasing Customer Relations Management Web Site Treasury Server & Calendaring Client and Web Browser Workflow and Document Mgmt Existing Asset nothing beyond embedded rules CUSTACC RETAILINTERFACE QUOTES WESTERNUNION APPS LOANS ASSETMAN ASSETSURE RISKAVERSE RealTrade RealTrade RealTrade none none beyond spreadsheets TRANSFER GOVTREP GOVTREPHK GOVTREPUK none found HUMANRESOURCES LEDGERMASTER DASHBOARD none found CUSTACC AGREEMENT none found TREASURE SCALIX Netscape FLOWMATIC DOCUMAGIC Principle Compliant? Y Y N N N Y N Y Y N (Package) N (Package) N (Package) Y Y N N N (Package) N N Y N Y Y Y N (Package)? (Package)

22 Application Gap Analysis (Assignment 10)

23 Practical TOGAF 9 Assignment 12 Technology Baseline Architecture Category Database Management System Development Language Development Framework Query and Reporting Tools Transaction Processing Monitor Operating System Wide Area Network Existing Asset Principle Compliant? Comments DB2 Y Mainframe Adabas N Mainframe VSAM N Mainframe Oracle Y Various Ms SQL Server Y Windows Platforms OS400 (built in db) Y AS400 platform only COBOL Y PL1 N Hardly supported Smalltalk Y Old and unusual but highly suited to trading environment PHP Y Highly suited to Web server environments Natural N Mainframe language for Adabas Java N Widely used in industry but we have few skills C++ N Seen as too low level for commercial bespoke systems C# Y Microsoft replacement for C++ and Java COM+ N Older Microsoft environment, deprecated.net Y Newer Microsoft environment, regarded as productive Oracle Forms N Highly proprietary Crystal Reports Y CICS Y OS390 Y Mainframe OS400 Y AS400 Linux Y Unix Solaris Y Unix Windows Y IBM SNA N TCP/IP now global standard

24 Existing Assets Mapped to TRM (Ass. 12) Scalix document mgmt: Documagic All Business Apps listed in the App Architecture Practical TOGAF 9 Inspired CICS, IBM OS390 APIs, Unix APIs, COM+,.NET COBOL PL1 Smalltal k C++ C# PHP Oracle - Forms Natural Java GAP SNA CICS GAP 3270 Wind ows Web Brows er Oracl e GAP GAP DB2 MsSQL Adaba s VSAM Web: gif, jpeg Scan: tif OS390, OS400, Solaris, Linux, Windows IBM SNA IBM SNA; TCP/IP IBM SDLC, TCP/IP

25 Potential Solution Building Blocks (Assignment 13) SBB1 Basel III Compliant Core Banking Back End Provides the core banking functionality for customer data management, account management, risk assessment and all core transaction processing activity. Exposes these capabilities as services which can be accessed via message requests from consumer systems (e.g. Bank in a Box, Basel Reporting, Decision Support etc. ) Will be created by: - Consolidating all existing systems in this area on DB2 (to comply with data principles and enhance data model for Basel compliance as well as support recovery capabilities) - Implementing a message based interface technology (probably IBM MQ Series, but alternatives to be investigated further) and brokering services to provide a clean and consistent interface to consumer systems which is robust in a highly distributed environment Principles: Legal compliance; Data Consistency; Bus. Continuity No Tech Change unless business advantage

26 SBBs Continued (Assignment 13) Basel III Reporting Solution Provides an industry strength and proven capability for Basel III reporting across all regions and head office. Fed from the Core Banking platform. Will exploit the Reveleus solution as this has a proven Basel III compliant data model, powerful rules capabilities (supporting agility) and is known to satisfy statutory requirements across various markets and territories. Created by: - Adapting core banking data models and consolidation to ensure required data is available - Implementing necessary ETL (Extract, Transform and Load) rules, procedures and technology to make consistent timely data available - Setting up necessary rules and reporting in Reveleus to generate required enquiries and reports with minimal delay and effort required of operational personnel Principles: Legal Compliance; Business Agility; Buy don t Build; Separation of Concerns

27 SBBs Continued (Assignment 13) Bank in a Box This is a comprehensive regional client side suite of systems that provides all necessary services and interfaces in local language/character set and with facilities to customise interfaces to local requirements and preferences without a) programming b) affecting the interface to back end core banking service which provides all data management and transaction processing It is envisaged that this will be a web-technology based solution to allow for maximum portability and ease of deployment. The Bank in a Box should be able to be a) adapted to a new language/character set requirement within three months (several of these efforts could proceed in parallel) and b) deployed live in a region within a six week period All interfaces are to be consistent and all authorised functionality available from a single consistent menu structure, thus facilitating ease of learning and reducing training times Principles: Ease of Use; Rapid Deployment; Support International Operation; Agility; Separation of Concerns; Data Integrity

28 SBBs Continued (Assignment 13) Business Continuity and Security This SBB addresses the need to expand the current DR capability to ensure that business continuity is maintained in the event of failures, natural disasters and even attack. It includes the strengthening of the wide area and local area networks in terms of both security and robustness/redundancy as well as the creation of secure data centres with full disaster recovery capability It is supported by the implementation of a message and broker based communication model It will also require education and changes in procedures and policies across many operating units in the bank Principles: Reduction of Risk; Security and Privacy; Responsibility in Governance

29 Technology Migration Plan Example (Assignment 14)

30 Practical TOGAF 9 - Inspired China Fortune Bank Assignment 14 Draft Migration Plan (Ex 13 Example) Capability Delivered Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Analyse Basel II Data Requirements vs Current Improved Recovery Capability; Availability of Basel Information Consolidate Core Systems on DB2 with Basel II compliant data model Back end to support "Bank in a Box" Implement Messaging Interface to Core Systems Implement Messaging and Brokering Infrastructure Implement ETL Technology Consolidated Reporting Base Basel Reporting for HO and Current Regions Use ETL to create automated feeds to Basel Reporting Implement Reveleus and Congifure Reporting Basel Reporting for Other Regions Configure Basel Reporting for new regions as required Define Bank in a Box Technical Architecture and Prototype Unified regional systems; multilingual capability; rapid deployment capability Create Bank in a Box integrated Suite (Chinese and English) Rapid roll out in regions Reduced Risk Business Continuity Ensure Networks are Secure Implement Business Continuity Measures Deploy Bank in a Box in China and UK Test and continually refine Business Continuity Capabilities Deploy Bank in a Box in additional regions Investigate and Choose Web deployment technologies Reduced costs; increased standardisation => flexibility Deploy web infrastructure in regions

31 Architecture Contract (Assignment 15) Architecture Requirements u All data should be compatible with Basel III definitions, formats and naming conventions u Data required by Basel III reporting should be available by an easily invoked and well documented API u Data should be available within time constraints to meet Basel III reporting requirements u Data should be accurate u History of changes to any Risk related values to be kept for a minimum of five years u Full audit record to be present to allow determining how current values were reached (including manual and automated change)

32 Architecture Contract (Assignment 15) Architecture Compliance u Data schemas match Basel III requirements and naming u Audit trail tested and demonstrated u History recording and availability reviewed and demonstrated u Basel III team architect to verify compliance u API s to be documented and accepted by Basel III team architect

33 Architecture Change Requests (Assignment 16) DB2 for single processor machines (Incremental) Idea has some merit, since we are moving off file based systems to DBMS and are already heavily invested/skilled in DB2 Limitations: Even desktops and notebooks are dual core these days does the license apply to these or not? Risk: Will the software remain free? Will vendor assure us that this is a perpetual grant? Would not make any wholesale changes in this direction (remember principle of not making tech changes unless clear business advantage..) BUT if there is a development or new system implementation where the product is adequate and the license conditions are met, we could use it in preference to other pay for offerings (e.g. SQL Server, Oracle..) CAVEAT do not use any special features keep usage to industry standard SQL (allows ease of migration for performance, or any other reasons later)

34 Architecture Change Request (Assignment 16) Move to Web based technologies (Re-architecting at least Tech / Solution / Migration) Significant impact to technical architecture, application architecture, solution selection criteria, application deployment, user training.. Probably a good idea but will require significant revisiting of various architectures as well as solutions, migration plans etc.

35 Architecture Change Request (Assignment 16) Secure external network (Simplification Change) Offers significant business benefits (reduced risk) Should really have been in place already! Can be implemented transparently to users who are not breaking the rules if handled carefully Handle through change control and support desk