inspired! ©2008 - 2014 Practical TOGAF 9 - Q4 2014 Exercise 1 No sample solution. Just case study familiarisation for students.
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Exercise 1
No sample solution. Just case study familiarisation for students.
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Stakeholders (Ex 2b)
Stakeholder Internal / ExternalBank Executive Committee (Exco) InternalBoard of Directors ExternalShanghai/ Beijing Regional Execs InternalHong Kong Regional Execs Internal London Regional Execs Internal Shareholders ExternalClients ExternalIT Management Internal Statutory Bodies ExternalVendors ExternalChinese Government ExternalCounter Parties ExternalPartners ExternalStaff Internal Unions External
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Architecture Principles (Ex 3)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Architecture Principles (Ex 3)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
Team Assignment 5
Stakeholder Internal / External
Concerns Views
Bank Executive Committee (Exco)
Internal
1 Business Continuity2 Business Expansion3 Regulatory Compliance4 Cost Management5 Competitiveness6 Governance
1 Technology Portfolio Catalogue & Networked Computing/ Hardware Diagram & Environments and Locations Diagram2 Environments and Locations Diagram3. Business Capabilities Roadmap4. Technology Standards Catalogue5. Product Catalogue6. Principles Catalogue
Board of Directors Internal
1 Risk Management2 Business Expansion 3 Cost Management4 Competitiveness5 Reputation
1. Principles Catalogue & Technology Portfolio Catalogue & Risk Register2. Environments and Locations Diagram3. Technology Standards Catalogue4. Product Catalogue5. Principles Catalogue
Shanghai/ Beijing Regional Execs
Internal
1 Risk Management2 Business Continuity3 Cost Management4 Service Delivery
1. Principles Catalogue & Technology Portfolio Catalogue & Risk Register2. Technology Portfolio Catalogue & Networked Computing/ Hardware Diagram & Environments and Locations Diagram3. Technology Standards Catalogue4. Service Function Catalogue
Hong Kong Regional Execs
Internal 1 Flexibility2 Interoperability3 Autonomy
1&3. Organization Actor Catalogue2. Technology Standards Catalogue & Interface Catalogue
Items in italics are non-TOGAF
Stakeholder Internal / External
Concerns Views
London Regional Execs
Internal
1. Marketing2. Customer Experience3. Compliance4. Competitiveness
1. Product Catalogue2. Application and User Location Diagram3. Principles Catalogue & Application Migration Diagram4. Product Catalogue
Shareholders External 1. Risk2. Returns
1. Principles Catalogue2. Driver/Goal/Objectives Catalogue
Clients (represented by Client Service)
External
Internal
1. Customer Experience2. Risk
1. Product Catalogue & 2. Application and User Location Diagram2. Principles Catalogue & Risk Register
IT Management Internal
1. Cost Management2. Risk3. Service Delivery4. Application Portfolio5. Technology Portfolio6. Skills7. Security
1. Technology Standards Catalogue2. Principles Catalogue & Risk Register 3. System Organization Matrix & Application and User Location Diagram4. Application Communication Diagram & Application Migration Diagram5. Technology Portfolio Catalogue6. Staff Resources and Skills Matrix7. Data Security Diagram
Statutory Bodies External 1. Risk
2. Compliance
1. Principles Catalogue & Risk Register2. Principles Catalogue & Data Migration Diagram & Process Flow Diagram
Team Assignment 5 - Cont’d
Items in italics are non-TOGAF
Team Assignment 6 - Business Capabilities Table
Capability Category Current Capability
Core Banking Services Competent and Robust, with exception of some reliance on old technology. Not completely Basel III compliant
Investment & Forex Services Competent and Robust.
Financial & Tax Advice Services Not Automated
Geographic Representation Incomplete.
Ability to Grow the Business Limited by monolithic systems, non-standard processes, lack of multi-lingual support
Business Continuity DR Capability for core banking back end. No capability in Regions
Legal Compliance Basel II
Control Costs Costs higher than necessary due to legacy technology, proprietary network, system redundancy, technology redundancy, leading to higher license and support costs
Generate New Products Limited. Knowledge embedded in systems
Security & Trust Security could improve. Especially with new sophisticated attacks. Anti-Money-Laundering capabilities must improve to meet new international norms.
Business Gap Analysis (Ex 7)China Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap AnalysisChina Fortune Bank - Business Gap Analysis
Target ArchitectureTarget ArchitectureTarget ArchitectureTarget ArchitectureTarget ArchitectureTarget ArchitectureTarget ArchitectureTarget Architecture
Core Banking Service
Produce Investment Returns
Interface to Partners and Central Bank
Manage Risk
Rapidly Deploy in New Region
Legal and Basel Comp
Business Continuity
Electronic Document and Workflow
Statutory Reporting all Regions
Single Customer View ELIMINATE
Core Banking Service
partial match
Produce Investment Returns
included
Interface to Partners and Central Bank
included
Manage Risk partial match
Statutory Reporting partial match separate solutions
Customer Management
eliminate unique replicated data in old systems
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, communication
eliminate multiple solutions. Create unified capability to meet statutory reporting requirements in all regions
Single consolidated customer information management service
MF/DB2 MF/VSAM AS400 Oracle Adabas MsSQL Embedded in Application
Customer
Location
Employee
Partner
Channel
Institution
Product
Financial Tx
Non-Financial Tx
Instrument
Trade
Document
Standards Compliant?
X X
X
X
X
X
X
X For Loans
X X
X X X
X
X
X
Yes No Yes Yes No Yes
Team Assignment 8 Existing Assets mapped to Domain Model
Practical TOGAF 9 - Q4 2013 inspired!©2008- 20138.040
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
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Practical TOGAF 9 Assignment 9
Data
CategoryCustomerCustomer ApplicationsCustomer QuotesCustomer Accounts - Banking Transactions
Customer AgreementsRisk ScoresLoansTreasury AccountsAssetsAsset InsuranceGeneral Ledger AccountsClearance TransactionsStatutory Reports - China - Hong Kong - UKStocks, Trades, ForexDocumentsWorkflowProduct Information
eMailHuman ResourcesJurisdiction/currency
Baseline Architecture
Existing Asset Principle Compliant? CommentsCustomer DB DB2 Y CUSTACCCustomer DB DB2 Y APPSQuotes DB Ms SQL Windows Y QUOTESAccounts DB DB2 Y CUSTACCTransaction DB DB2 Y RETAILINTERFAETransaction DB Ms SQL Y WESTERNUNIONContracts VSAM Files N AGREEMENTCustomer, Account DBs DB2 Y RISKAVERSELoans DB DB2 Y LOANSTreasury Accts DB DB2 Y TREASUREAsset Records VSAM Files N ASSETMANAsset Cover DB DB2 Y ASSETSUREGL Files VSAM N LEDGERMASTERTransaction DB DB2 Y TRANSFERReports DB DB2 Y GOVTREPReports Oracle Y GOVTREPHKReports SQL Server Windows Y GOVTREPUKRelalTrade DB Oracle Y RealTrade?? N DOCUMAGICWorflow DB Adabas N FLOWMATICembedded in apps and customer & account databases
N
files N SCALIXHR DB Adabas N HUMANRESOURCESembedded in apps N
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
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).
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.
Consolidated Financial, Compliance and Regulatory Reporting
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.
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.
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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.
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Practical TOGAF 9 Assignment 10
Applications
CategoryProduct Modeling Core Banking
Loan Administration Asset Management
Risk ScoringForex & Currency TradingStock Trading/Futures/DerivativesInvestment AnalysisTax ModelingFinancial ModelingClearing and SettlementStatutory Reporting
Business Analysis and ModelingHR and PayrollGeneral LedgerDecision SupportPurchasingCustomer Relations Management
Web SiteTreasury eMail Server & CalendaringeMail Client and Web BrowserWorkflow and Document Mgmt
Baseline Architecture
Existing Asset Principle Compliant?nothing beyond embedded rulesCUSTACC YRETAILINTERFACE YQUOTES NWESTERNUNION NAPPS NLOANS YASSETMAN NASSETSURE YRISKAVERSE YRealTrade N (Package)RealTrade N (Package)RealTrade N (Package)nonenone beyond spreadsheetsTRANSFER YGOVTREP YGOVTREPHK NGOVTREPUK Nnone foundHUMANRESOURCES N (Package)LEDGERMASTER NDASHBOARD Nnone foundCUSTACC YAGREEMENT Nnone foundTREASURE YSCALIX YNetscape YFLOWMATIC N (Package)DOCUMAGIC ? (Package)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Application Gap Analysis (Assignment 10)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Practical TOGAF 9 Assignment 12
Technology
CategoryDatabase Management System
Development Language
Development Framework
Query and Reporting Tools
Transaction Processing MonitorOperating System
Wide Area Network
Baseline Architecture
Existing Asset Principle Compliant? CommentsDB2 Y MainframeAdabas N MainframeVSAM N MainframeOracle Y VariousMs SQL Server Y Windows PlatformsOS400 (built in db) Y AS400 platform onlyCOBOL YPL1 N Hardly supportedSmalltalk Y Old and unusual but highly suited to trading environmentPHP Y Highly suited to Web server environmentsNatural N Mainframe language for AdabasJava N Widely used in industry but we have few skillsC++ N Seen as too low level for commercial bespoke systemsC# Y Microsoft replacement for C++ and JavaCOM+ N Older Microsoft environment, deprecated.NET Y Newer Microsoft environment, regarded as productiveOracle Forms N Highly proprietaryCrystal Reports YCICS YOS390 Y Mainframe OS400 Y AS400 Linux Y “Unix”Solaris Y “Unix”Windows YIBM SNA N TCP/IP now global standard
CICS, IBM OS390 APIs, Unix APIs, COM+, .NET
IBM SNA; TCP/IP
All Business Apps listed in the App Architecture
GAP
DB2MsSQLAdaba
sVSAM
Web: gif, jpeg
Scan:tif
email: Scalixdocument mgmt:
Documagic
GAPGAP
IBM SNA
OS390, OS400, Solaris, Linux, Windows
COBOLPL1
Smalltalk
C++C#PHP
Oracle -FormsNatural
Java GAP CICS
3270WindowsWeb
Browser
OracleSNA
IBM SDLC, TCP/IP
Practical TOGAF 9© Inspired 2008-2014
Existing Assets Mapped to TRM (Ass. 12)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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. ContinuityNo Tech Change unless business advantage
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
Technology Migration Plan Example (Assignment 14)
Practical TOGAF 9 - ©Inspired 2008-2013Practical TOGAF 9 - ©Inspired 2008-2013Practical TOGAF 9 - ©Inspired 2008-2013Practical TOGAF 9 - ©Inspired 2008-2013
China Fortune BankChina Fortune Bank
Draft Migration Plan (Ex 13 Example)(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 modelConsolidate Core Systems on DB2 with Basel II compliant data modelConsolidate Core Systems on DB2 with Basel II compliant data model
Back end to support "Bank in a Box" Implement Messaging Interface to Core SystemsImplement Messaging Interface to Core SystemsImplement Messaging Interface to Core Systems
Implement Messaging and Brokering InfrastructureImplement Messaging and Brokering Infrastructure
Implement ETL Technology
Consolidated Reporting BaseUse ETL to create automated feeds to Basel ReportingUse ETL to create automated feeds to Basel Reporting
Basel Reporting for HO and Current Regions
Implement Reveleus and Congifure ReportingImplement Reveleus and Congifure Reporting
Basel Reporting for Other Regions Configure Basel Reporting for new regions as requiredConfigure Basel Reporting for new regions as requiredConfigure Basel Reporting for new regions as requiredConfigure Basel Reporting for new regions as requiredConfigure Basel Reporting for new regions as requiredConfigure Basel Reporting for new regions as requiredConfigure 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)Create Bank in a Box integrated Suite (Chinese and English)Create Bank in a Box integrated Suite (Chinese and English)
Deploy Bank in a Box in China and UKDeploy Bank in a Box in China and UK
Rapid roll out in regions Deploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regionsDeploy Bank in a Box in additional regions
Reduced Risk Ensure Networks are SecureEnsure Networks are SecureEnsure Networks are Secure
Business Continuity Implement Business Continuity MeasuresImplement Business Continuity MeasuresImplement Business Continuity Measures
Test and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity CapabilitiesTest and continually refine Business Continuity Capabilities
Investigate and Choose Web deployment technologies
Reduced costs; increased standardisation => flexibility Deploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regionsDeploy web infrastructure in regions
Assignment 14
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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)
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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.
inspired!©2008- 2014Practical TOGAF 9 - Q4 2014
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