Harnessing the power of SWIFT for enterprise financial messaging Published: April 2007 Microsoft BizTalk Accelerator for SWIFT.

Harnessing the power of SWIFT for Harnessing the power of SWIFT for enterprise financial messagingenterprise financial messaging

Published: April 2007

Microsoft BizTalk Accelerator for SWIFTMicrosoft BizTalk Accelerator for SWIFT

• Developing, Developing, implementing, implementing, and managing and managing custom point-to-custom point-to-point connections point connections for each bank for each bank that the that the Microsoft Microsoft Treasury group Treasury group communicated communicated with was with was extremely extremely expensive to expensive to design, deploy, design, deploy, and manage.and manage.

Solution OverviewSolution Overview

Business ChallengeBusiness Challenge SolutionSolution Results/BenefitsResults/Benefits

• Microsoft Microsoft implemented implemented BizTalk BizTalk Server 2006 and Server 2006 and the BizTalk the BizTalk Accelerator for Accelerator for SWIFT to enable SWIFT to enable communication communication with its financial with its financial partners over the partners over the SWIFT secure IP SWIFT secure IP network.network.

• Greater visibility Greater visibility into cash assetsinto cash assets

• Standardized Standardized business process business process for end-of-day for end-of-day bank statementsbank statements

• Greater security, Greater security, reliability, and reliability, and efficiency in efficiency in communicationcommunication

• Increased Increased scalabilityscalability

• Compliance with Compliance with regulatory regulatory standardsstandards

Products and TechnologyProducts and Technology

● BizTalk Accelerator for BizTalk Accelerator for SWIFTSWIFT

● BizTalk Server 2006BizTalk Server 2006● Office InfoPath 2006Office InfoPath 2006● SQL Server 2005SQL Server 2005● Windows Server 2003Windows Server 2003● Office SharePoint Server Office SharePoint Server

20072007

Treasury Group OperationsTreasury Group Operations

● Microsoft Treasury group’s responsibilities:Microsoft Treasury group’s responsibilities:● Allocating resources to subsidiariesAllocating resources to subsidiaries● Reconciling transactionsReconciling transactions● Transferring moneyTransferring money● Investing excess cash resourcesInvesting excess cash resources

● Microsoft has 1,000+ bank accounts spread Microsoft has 1,000+ bank accounts spread among 95 banks worldwideamong 95 banks worldwide

● Managing these accounts accurately maximizes Managing these accounts accurately maximizes revenuerevenue

Business Challenge: Multiple Custom Business Challenge: Multiple Custom ConnectionsConnections

Business Challenge: New Banking Business Challenge: New Banking RelationshipsRelationships

● Microsoft establishes new banking Microsoft establishes new banking relationships as new markets emergerelationships as new markets emerge

● Custom point-to-point connections can be Custom point-to-point connections can be costly and take months to developcostly and take months to develop

● Investment of time and money may deter Investment of time and money may deter Microsoft from making new, advantageous Microsoft from making new, advantageous partnerships with bankspartnerships with banks

Business Challenge: System Business Challenge: System Reliability and Timeliness of DataReliability and Timeliness of Data

Business Challenge: Employee Business Challenge: Employee ProductivityProductivity

● Disparate systems for cash management Disparate systems for cash management and account management affected and account management affected transaction reconciliationtransaction reconciliation

● Different communication methods meant Different communication methods meant different statement formats and dispersion different statement formats and dispersion of dataof data

● Employees spent time tracking money Employees spent time tracking money instead of analyzing ways to invest itinstead of analyzing ways to invest it

Integration SolutionIntegration Solution

● Treasury group reviewed its business process to Treasury group reviewed its business process to identify solution requirementsidentify solution requirements

● SWIFTNet is a highly secure and reliable network SWIFTNet is a highly secure and reliable network that uses standard message formats and that uses standard message formats and protocolsprotocols

● Direct integration with SWIFT provided the best Direct integration with SWIFT provided the best way to standardize the communication processway to standardize the communication process

● BizTalk Server acts as a message broker BizTalk Server acts as a message broker between SWIFTNet and the ERP systembetween SWIFTNet and the ERP system

Integration SolutionIntegration Solution

● Treasury group can view statement data stored in Treasury group can view statement data stored in SAP by using a familiar interfaceSAP by using a familiar interface

● SharePoint Server 2007 Web site is a central SharePoint Server 2007 Web site is a central place for creating messages to banking partnersplace for creating messages to banking partners

● Members access SWIFTNet by using a dedicated Members access SWIFTNet by using a dedicated line and SWIFT interface productsline and SWIFT interface products

● SWIFTNet advantages include a single method of SWIFTNet advantages include a single method of communication with banking partners and communication with banking partners and standardized message formatsstandardized message formats

Integration SolutionIntegration Solution

Connectivity Through BizTalk ServerConnectivity Through BizTalk Server

● BizTalk Server services:BizTalk Server services:● Application integration servicesApplication integration services● Data normalizationData normalization● Orchestration servicesOrchestration services● Business Rule EngineBusiness Rule Engine● Business Activity MonitoringBusiness Activity Monitoring

BizTalk Accelerator for SWIFTBizTalk Accelerator for SWIFT

● A4SWIFT includes tools and components A4SWIFT includes tools and components that enable integration with SWIFTNetthat enable integration with SWIFTNet● XSD schemas for FIN messagesXSD schemas for FIN messages● BRE policy for FIN messagesBRE policy for FIN messages● Receive pipeline disassembler componentReceive pipeline disassembler component● Send pipeline assembler componentSend pipeline assembler component● Orchestrations for repairing invalid messagesOrchestrations for repairing invalid messages● InfoPath form templates for FIN messagesInfoPath form templates for FIN messages

Enriched Content Through BizTalk Enriched Content Through BizTalk ServerServer

● SWIFTNet integration project required SWIFTNet integration project required minimal custom coding minimal custom coding

● Microsoft IT and SAP team created a Microsoft IT and SAP team created a BizTalk Server schema that represented the BizTalk Server schema that represented the data structure for the SAP systemdata structure for the SAP system

● Microsoft IT created a canonical schema Microsoft IT created a canonical schema that is used exclusively during BizTalk that is used exclusively during BizTalk Server processingServer processing

Automation of Financial CalculationsAutomation of Financial Calculations

● Microsoft IT created BizTalk Server maps to Microsoft IT created BizTalk Server maps to define how to transform data from one define how to transform data from one structure to anotherstructure to another

● Functoids enrich and manipulate data as Functoids enrich and manipulate data as requiredrequired

● One calculation enables automation of One calculation enables automation of statement reconciliationstatement reconciliation

Custom Business ProcessesCustom Business Processes

Additional OrchestrationsAdditional Orchestrations

● Microsoft IT created orchestrations for Microsoft IT created orchestrations for MT995 and MT996 message typesMT995 and MT996 message types

● SharePoint library is the storage location SharePoint library is the storage location and UI for MT995, MT996, and MT999 and UI for MT995, MT996, and MT999 messagesmessages

● If a process throws an exception, the If a process throws an exception, the message goes to a custom exception message goes to a custom exception handling processhandling process

Integration with SWIFTNetIntegration with SWIFTNet

● BizTalk Server coordinates and facilitates BizTalk Server coordinates and facilitates communication among the SWIFTAlliance Access communication among the SWIFTAlliance Access device, SAP, and SharePoint Server 2007device, SAP, and SharePoint Server 2007

● Microsoft IT used out-of-the-box BizTalk Server Microsoft IT used out-of-the-box BizTalk Server adapters to configure the connection to each adapters to configure the connection to each systemsystem

● Microsoft IT deployed a computer running Microsoft IT deployed a computer running Windows Server 2003 and MOSeries for Windows Windows Server 2003 and MOSeries for Windows to solve a connection problemto solve a connection problem

Physical Design TopologyPhysical Design Topology

Best Practices and Lessons LearnedBest Practices and Lessons Learned

● Holistic approach helps create a viable solutionHolistic approach helps create a viable solution● Reusability of code saves timeReusability of code saves time● Use of components depends on their business Use of components depends on their business

valuevalue● Design considerations include how components Design considerations include how components

can work together in a complete solutioncan work together in a complete solution● Communicating over SWIFTNet requires learning Communicating over SWIFTNet requires learning

the nuances of each banking partnerthe nuances of each banking partner

Benefits GainedBenefits Gained

● Single view of enterprise assetsSingle view of enterprise assets● Standardization of business processesStandardization of business processes● Simplification of connectivitySimplification of connectivity● Reduced cost and time creating new connectionsReduced cost and time creating new connections● Guaranteed deliveryGuaranteed delivery● Increased scalabilityIncreased scalability● Reduced latencyReduced latency● Regulatory complianceRegulatory compliance

ConclusionConclusion

● BizTalk Server 2006 solution resolved problems in BizTalk Server 2006 solution resolved problems in communication methods between Microsoft and communication methods between Microsoft and dozens of banksdozens of banks

● Benefits of a direct, standardized line of Benefits of a direct, standardized line of communication include reduced operating costscommunication include reduced operating costs

● This implementation serves as a foundation for This implementation serves as a foundation for additional processes that will provide greater additional processes that will provide greater business value business value

For More InformationFor More Information

● Additional content on Microsoft IT Additional content on Microsoft IT deployments and best practices can be deployments and best practices can be found on http://www.microsoft.comfound on http://www.microsoft.com● Microsoft IT Showcase WebcastsMicrosoft IT Showcase Webcasts

http://www.microsoft.com/howmicrosoftdoesitwhttp://www.microsoft.com/howmicrosoftdoesitwebcastsebcasts

● Microsoft TechNetMicrosoft TechNet http://www.microsoft.com/technet/itshowcasehttp://www.microsoft.com/technet/itshowcase

This document is provided for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT.

© 2007 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, BizTalk, InfoPath, SharePoint, Windows, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.