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Overlapping and redundant: Data Applications Infrastructure (servers and storage)
No single, consolidated view of enterprise data
Hand coded data integration spaghetti
Supporting all of the above: Consumes >40% of IT budget Chokes flexibility and competitiveness
Desired End State In Large Enterprises
Radical consolidation of: Data Applications Infrastructure (servers and storage)
Run the business on a single, consolidated view of enterprise data (Master Reference Data)
Eliminate hand coded data integration spaghetti
Reduce costs radically while improving competitiveness
Big Gap
IBM Software Group | WebSphere software
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Payroll3
Payroll1
Payroll2Fin 3Fin 2
Payroll3
Payroll1
Payroll2Fin 3Fin 2
FinancialFinancial RisksRisks
Customers I
Customers I
CustomersII
CustomersIISUPPORTSUPPORTSUPPORTSUPPORT
PRODUCTIONPRODUCTIONPRODUCTIONPRODUCTION
DISTRIBUTIONDISTRIBUTIONDISTRIBUTIONDISTRIBUTION
REFERENCESREFERENCESREFERENCESREFERENCES
GROUP LEVEL
COMPANY LEVEL
METADATA REPOSITORY
Current State MetricsData Major US Bank has tens of terabytes of redundant and overlapping data
following acquisitions.
Applications A major global chemicals company is running 12 instances of SAP and
has no consolidated view of the business. A major global telco was operating three order systems and had no
consolidated view of orders.
Infrastructure Global logistics supplier needs to consolidate:
18 data centers to 3-4 data centers 1500 applications to 200 applications 2600 servers to 1600 servers
Hand coded data integration Major US Bank - 3,000 people hand coding Canadian Bank – 5,000 people hand coding
Big Gap
Desired End State MetricsData Creating consolidated view of enterprise data will save the US Bank $30 million in
storage costs on one project.
Applications Consolidation to 1 global SAP instance will reduce operating costs by $40 million
annually. Creating a consolidated view of orders led to the capture of $200 million in
revenue that was previously lost.
Infrastructure Restructuring and consolidation will increase the logistics supplier’s operating
profit by at least € 1 billion annually by 2005.
Hand coded data integration US Bank – 50% productivity gain would save $150 million annually Canadian Bank – 50% productivity gain would save $250 million annually
22Master Data Management forReference & market Data
Core Banking & Legacy Application Consolidation
Channel Optimization 66
66Financial Services
Value Chain
IBMCapabilities
Environments
44Risk Management & Regulatory Compliance
Market and Partner Network
22
Subsidiaries/LOB Units
Branches/LOB Units
44
55
33
66
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Complex messages; difficulty in adding new messages or supporting new versions
Many industry protocols, transports and data formats. Flexibility is key
Need for integration with back-end systems hosting data in complex formats
Need for quality data to have quality partner interaction
Support for SWIFT, EDI and other industry standards for partner trading, with message data normalized for streamlined updates
Broad range of back-end connectivity options supported by powerful data transformation and connectivity via SAA
Data matching and standardization, limiting errors and delivering consistency
Data connectivity, transformation and quality – in one integrated platform.
Standards-Based Trading Pain Points IBM Information Integration Value Customer ExamplesCredit Suisse Group
Deutsche Bank
KAS Bank
Fidelity Investments
Bank of New York
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Standards Adoption
IBM PACK for SWIFT
Back-end Systems
LogicalMessageFormat
IBMDataStage TX
Clients
CPGCounter-parties
CPGServiceProviders
SWIFTNet
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Credit Suisse Group
Heightened ROI and competitive pressures required the automation of the process flows to reduce overall settlement times without access to incremental internal resources. Needed to convert to ISO 15022 messages from 7775 format without impacting multiple back office systems
Implemented IBM DataStage™ TX and IBM™ PACK for SWIFT with Logical Message Format for complete SWIFT integration and support for all SWIFTNet services. LMF shields back end systems from periodic message format changes
Accelerated and simplified adoption of new messages (ISO 15022) without overhaul of back-office systems, with normalized message data across the organization. Simplified management and monitoring, providing complete visibility into transactions and messages
Credit Suisse Group | World-leading financial services company, advising clients in all aspects of finance, around the world, around the
clock. 360° Finance
Problem Solution Result
IBM Software Group | WebSphere software
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Duplications, errors and manual overrides in transactional data received from sales channels
Duplicated and inconsistent data in corporate systems
No single understanding of customers
Not ready for Global Data Synchronization
De-duplication of security records stored in multiple formats/systems
Real time reconcilations against data received from custodians, buy side, sell side, street etc
Customizable business rules for matching
Investigate and understand data structures and formats
Single View Integration Pain Points IBM Information Integration Value Customer Example
Top Ten Brokerage Firm
Freddie Mac
Wells Fargo
Mrs. M. Talber
Global Custodians
Brokerage Firm
Institutional / Individual Accounts
Institutional / Individual Accounts
Funds Managers
Trading Accounts
Buy and Sell side allocation
Security masters, SSI’s
Reference DataReference Data
DTC and CUSIPS, etc Single View and Mappingto Industry Data Pools
Master Data Management22
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Freddie Mac
Freddie Mac | A stockholder-owned corporation established by Congress in 1970 to
support home ownership and rental housing
Unable to quickly assess the impact of millions of changes to their mortgage portfolio on a daily basis. This limited their ability to manage risk, extend loans and optimize margins by exploiting small rate differences between financial borrowing markets and lending rates.
Replacing hundreds of manually-coded integration programs with automated, metadata-driven parallel solution. Cut time required to update 1M+ transactions per data. Using metadata to document process for easier maintenance and extensibility.
Changes to mortgage portfolio will be visible via Freddie Mac’s enterprise data warehouse systems within 12 hours of occurring Richer and timelier reporting environment Greater opportunity to increase margins and expand lending
Problem Solution Result
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33
High maintenance costs and lack of data/process unity associated with running multiple instances of the same application
Unrealized value from mergers and acquisitions with multiple DDA and credit , lending systems
Keeping track of metadata during application transition and consolidations
Uncoordinated technical architecture
Rapidly profile and analyze data across corporate systems to prepare for migrations and consolidations
Migrate only data that is meaningful, active and de duplicated
Rapidly locate all institutional data in source systems and prepare to migrate to target applications
Conduct impact analysis on potential changes to metadata
Legacy Application Pain Points IBM Information Integration Value Customer Examples
GMAC Mortgage
Nordea
Lloyds Bank
Target Staging
IBM Information Integration Platform
TargetEnvironmentLegacy
R/3
R/3
R/3
R/3
Initial Staging
Define Relations
Standardize
Cleanse
De-Dupe
Map
Core Banking and Legacy Application Consolidation
Legacy
Legacy
Legacy
IBM Software Group | WebSphere software
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Nordea
Needed to support a sub ledger consolidation from 4 large retail banks. Auditing and guaranteed delivery are critical.
Transactions arrive from complex flat files from many countries, and must be validated, mapped, reconciled and prepared before loading into R/3.
IBM DataStage™ and SAP R/3 PACK prepares data for the initial load into R/3.
Nordea is able to act as one operating unit, in support of having one brand Cut IT budget by 25%, resulting in savings of $8M by 2003
Problem Solution Result
Nordea | Largest financial services group in Scandinavia with EUR 252 billion in total assets, 9.7 million personal and 1 million corporate customers
IBM Software Group | WebSphere software
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Three year period of measuring operational risk data to meet Basel II Accords has begun
US Patriot Act has extreme focus on Anti Money Laundering and Know Thy Customer- fines for non compliance are severe
Sarbanes Oxley and other Regulatory mandates place intense focus on data quality
Rapidly profile and analyze data across corporate systems to prepare for internal ratings based approach for Basel 2
Data Quality Assessments that quickly identify gaps in required data for compliance in SOX, AML etc
Conduct impact analysis on potential changes to metadata and change data management
Risk Management Pain Points IBM Information Integration ValueCustomer Examples
Ny Kredt
NASDR
Standard Chartered
AIG
Risk Management & Compliance
Meta Stage and DBMS
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Data
Data Marts
LossData store
FinancialData store
HistoricData store
EnterpriseData store
Core Banking Products
Credit
Collaterals
Customer
Loss Data
Data sourceTransformation& calculation
Rating, PD, LGD,CCF Models
BII OperationalRisk Engine
BII CreditRisk Engine
Interest RateRisk Engine
Internal CreditRisk Engine
Market Data
Reporting
Analysis
Disclosure
Management
Data
Meta Stage and DBMS
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Data
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Data
Data Marts
LossData store
FinancialData store
HistoricData store
EnterpriseData store
LossData store
LossData store
FinancialData store
HistoricData store
EnterpriseData store
Core Banking Products
Credit
Collaterals
Customer
Loss Data
Data sourceTransformation& calculation
Rating, PD, LGD,CCF Models
BII OperationalRisk Engine
BII CreditRisk Engine
Interest RateRisk Engine
Internal CreditRisk Engine
Market Data
Reporting
Analysis
Disclosure
Management
Data
44
IBM Software Group | WebSphere software
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Standard Chartered
Standard Chartered | World- leading emerging markets bank with over 500 offices in more than 50
countries
Wholesale Bank Basel II Credit Risk Project goal is to meet Basel II Capital Accord guidelines by 2006, utilizing new internal modeling approaches for capital calculations. Required strong risk management analytics, processes and disclosure. Needed consistent data management processes across operations, customers and supporting technology in more than 50 countries
Problem Solution Result
Centralized Basel II Data Integration Solution leverages IBM Enterprise Integration Suite™ to deliver enterprise integration. Integration routines are built in IBM DataStage™ and deployed throughout Standard Chartered Bank in repeatable manner. Data is treated in a consistent manner, critical to Basel II compliance.
• Delivers enterprise integration and data consistency necessary for Basel II
• Supports groups across the Wholesale Bank (Group Risk Management, Finance and Special Asset Management teams)
• Provides reliable information for management and regulatory reporting, portfolio management and front-line business users
“With IBM, Standard Chartered Bank will build one common library of data integration routines and deploy them throughout our company, a critical factor to ensuring that our risk data is all handled in accordance with company standards." -- Senior Project Manager, BASEL IS
IBM Software Group | WebSphere software
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Duplications, errors and manual overrides in transactional data received from sales channels
Duplicated and inconsistent data in corporate systems
No single understanding of customers
Not ready for Global Data Synchronization
De-duplication of customer records stored in multiple formats/systems
Real time account and customer information against data received from branches; call centers, Web etc
Customizable business rules for matching
Single View Integration Pain Points IBM Information Integration ValueCustomer Example
JP Morgan Chase
Wells Fargo
Edward Jones
Mrs. M. Talber
John & Molly Talber
Molly Talber
Customer AccountsCustomer Accounts
M Talber
Depository Accounts
Credit and Lending
Investment Accounts
Product RecordsProduct Records
Mortgage, etcSingle View and Mappingto Industry Data Pools
Single View55
IBM Software Group | WebSphere software
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JP Morgan Chase
JPMorgan Chase | A leading global financial services company
Needed single, authorized source for customer profitability reporting & analysis. Solution required highly automated integration process, straightforward change management, and ability to handle a diversity of data sources.
Used IBM Information Integration solution to receive 300+ feeds from product systems worldwide, then transform and load into a data warehouse. 1TB+ of data is now updated every 48 hours with daily refreshes planned.
More than 20,000 internal customers now use a single corporate-standard customer profitability “utility” to analyze and make decisions that improve the overall profitability of the company No one is allowed to comment or “spin” profitability without referring to this utility
Lack of a comprehensive view of data across systems
Duplications, errors and manual overrides in transactional data received from sales channels
Inconsistencies between data in different systems causing inaccurate information
Link multiple disparate sources of information through semantics-mapping and data matching
Standards-based interfaces to integration brokers
Maintain meta linking and matching between data sources
In-flight data enrichment
Access to a broad range of legacy sources
Channel Pain Points IBM Information Integration Value Customer Examples
Top Ten Brokerage Firm
New York Life
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New York Life Insurance | Largest mutual life insurance company in the United States
Agents and HQ staff were unable to maximize customer profitability or pursue up-sell/cross-sell opportunities. Detailed customer and policy data residing in 15+ separate legacy mainframe policy systems with little to no documentation and poor data quality was unavailable to users and multiple channels.
Improved customer visibilityby providing 10+ staff with adhoc reporting to completecustomer information Reduced IT costs by $130kannually by eliminating manualreporting Provided agents with 7x24detailed customer and policydata through secure web site
Problem Solution Result
New York Life Insurance
Multi-tier solution with UNIX-based operational data store and enterprise data warehouse feeding marts for reporting, and 7x24 web-based access. Leveraging IBM DataStage™ to integrate legacy data into warehouse and IBM ProfileStage™ to better understand and access mainframe sources.