Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture)...

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Why What How . . Enterprise Architecture for Banks िशवकुमार G. Sivakumar வமா Computer Science and Engineering भारतीय ौोिगकी संान म ु ंबई (IIT Bombay) [email protected] December 12, 2011 • The Why (What needs fixing) (60%) • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar வமாComputer Science and Engineering भारतीय ौोिगकी संान म ु ंबई (IIT Bombay) Enterprise Architecture for Banks

Transcript of Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture)...

Page 1: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.

...... Enterprise Architecture for Banks

िशवकुमार G. Sivakumar சிவகுமார்

Computer Science and Engineeringभारतीय ौोिगकी संान म ुबंई (IIT Bombay)

[email protected]

December 12, 2011

• The Why (What needs fixing) (60%)• The What (Enterprise Architecture) (20%)• The How (No silver bullet) (10%)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 2: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. CEO’s Dilemma

.

......You can’t live with them, you can’t live without them!

Who said this? About whom?In the context of today’s lecture:Business ITEnterprise Architecture to the rescue!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 3: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. CEO’s Dilemma

.

......You can’t live with them, you can’t live without them!

Who said this? About whom?In the context of today’s lecture:Business ITEnterprise Architecture to the rescue!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 4: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. CEO’s Dilemma.......You can’t live with them, you can’t live without them!

Who said this? About whom?

In the context of today’s lecture:Business ITEnterprise Architecture to the rescue!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 5: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. CEO’s Dilemma.......You can’t live with them, you can’t live without them!

Who said this? About whom?

In the context of today’s lecture:Business ITEnterprise Architecture to the rescue!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 6: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. CEO’s Dilemma.......You can’t live with them, you can’t live without them!

Who said this? About whom?

In the context of today’s lecture:Business ITEnterprise Architecture to the rescue!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 7: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Family Feud

Jackpot on Jaya TV hosted by Kushboo.Guess top 5 answers for the following:

Why IT hates BusinessUrgent deadlinesChanging goalpostsNo UAT participationDon’t understandtechnology!

Why Business hates ITTail can’t wag the dog!Gatekeepers, NaySayersSpokesmen for VendorsDon’t understandbusiness!

Should you make IT more business savvy?Or Business more IT savvy?(chicken or egg? Kodi asainthathum kaatru vandada?)Where are your sympathies? Why?Can Enterprise Architecture be the child that binds themarriage of Business and IT?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 8: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Family Feud

Jackpot on Jaya TV hosted by Kushboo.Guess top 5 answers for the following:

Why IT hates BusinessUrgent deadlinesChanging goalpostsNo UAT participationDon’t understandtechnology!

Why Business hates ITTail can’t wag the dog!Gatekeepers, NaySayersSpokesmen for VendorsDon’t understandbusiness!

Should you make IT more business savvy?Or Business more IT savvy?(chicken or egg? Kodi asainthathum kaatru vandada?)Where are your sympathies? Why?Can Enterprise Architecture be the child that binds themarriage of Business and IT?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 9: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Family Feud

Jackpot on Jaya TV hosted by Kushboo.Guess top 5 answers for the following:

Why IT hates BusinessUrgent deadlinesChanging goalpostsNo UAT participationDon’t understandtechnology!

Why Business hates ITTail can’t wag the dog!Gatekeepers, NaySayersSpokesmen for VendorsDon’t understandbusiness!

Should you make IT more business savvy?Or Business more IT savvy?(chicken or egg? Kodi asainthathum kaatru vandada?)Where are your sympathies? Why?Can Enterprise Architecture be the child that binds themarriage of Business and IT?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 10: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Example from E-Governance

What architecture canhelp an aam admithrough this maze?My experience at IITBombay with birthcertificates and Asst.Registrar.InterOperabilityFramework forE-governance (IFeG)SSDG, NSDG, OpenStandards ...

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected] Architecture for Banks

Page 11: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Caveat Emptor

Truth in Advertising• Too many buzz words in IT (many discredited)

• BPR• DWH• BI• EA

• Computer Science?(Mathematics, Physics, Political Science)

• Software Engineering?(Is it like building a bridge?)

• My core interests(Formal Methods, Network Security)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 12: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Web 1.0, Web 2.0, Web 3.0

• Web 1.0 (Right to Information)• Internet: Info anytime, anywhere, any form• Like drinking water from a fire hose• Search Engines to the rescue

• Web 2.0 (Right to Assembly)• Social Networking (Kolaveri, Flash crowds)• Producers, not only consumers (Wikipedia,blogs, ...)

• Web 3.0 (Semantic Web)• Intelligent Agents that ``understand''• What do you want when you get up and put oncomputer?

What's Banking 1.0, 2.0, 3.0?(CBS, Branchless, Anywhere, CRM, DWH, ...)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 13: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Decision Support System (DSS)

• Examples

• Expand client base, cross-selling, customerprofitability, improved efficiency

• Detect fraud, money laundering• Manage risk with investments, lending.

• Need information from various sources.

• Need for real-time, single version of truth.

• High cost of delayed, inaccurate decisions.(including opportunity cost)

• Need for automating this to make available toother business processes.

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 14: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Problems with Current SystemsTypical scenario• New products needed to be added quickly

• Each was built as a stand alone application

• Each used whatever technology was ``goodenough''

• Too complex/critical to jettison now (lock-in)Work Arounds• Elaborate Extract Transform Load (ETL) processes

• Massive Data Warehouses

• Enormous cost and complexity

• Information compilable only by technical people.

• Hard to align with business strategyिशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 15: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Current Scenario

Inflexible, brittle, monolithic silos hardwiredtogether inhibiting agile business strategies,processes and capabilities.

Source: Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D.

Robertson, HBS Press, June 2006.

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 16: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. IIT Bombay Example

• Standalone Library Software (1990)• Cash Section (1994) (solved long queues, butmore work for Accounts)

• Academic System (course registration,grading, ...)

• Administration (Employee records)• Separate IDs for Computer Centre (Servers,Internet)

• Still a long way from any useful DSS• But, we are an academic institution.

Can Banks/FIs afford to be like this today?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 17: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Silos in Banks

Barring few exceptions

• Only consolidation seems to be a common DC/DR

• Independent storage boxes (DAS, NAS, SAN) foreach application

• Independent (inconsistent) data bases

• Independent middleware, application servers

• Independent security solutions ...

One main reason: Multiple vendors, SLA problemThought Experiment:Account Portability like Mobile Number Portability

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 18: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Current Scenario

Is all this by design?

• Or a convenient application of the motto- If it ain'tbroke, don't fix it!

• Is everything regulator driven or business-driveninnovation?

• Are you always fire fighting or do you have time tostand and stare?

• Have you tried any experiments just to learnwithout fear of failure?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 19: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Architecture

Definition from wikipedia..

......

Architecture is both the process and product ofplanning, designing and constructing form, space andambience that reflect functional, technical, social, andaesthetic considerations. It requires the creativemanipulation and coordination of material, technology,light and shadow. Architecture also encompasses thepragmatic aspects of realising buildings and structures,including scheduling, cost estimating and constructionadministration.

Many debates over priorities of form, functionality,aesthetics, sustainability (TCO).IITB CSE building example (Architect in ourFaculty Meeting)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 20: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Google Maps

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 21: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Dharavi

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 22: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Chandigarh

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 23: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Dharavi: A different view

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 24: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. More Points of view

• India-China comparison• Buiild for tomorrow (pro-active)• Build for yesterday (reactive)• Build only when needed.• Build and they will come!

• Building for CWG!• New Airports (Bangalore, Hyderabad, Delhi,Mumbai)

• Why no temple from Brahma? (Prof.Indiresan's story)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 25: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Greenfield vs Re-Architecting

.

......

An urban redevelopment plan is proposed for theDharavi area, managed by American-trained architectMukesh Mehta. The plan involves the construction of30,000,000 square feet (2,800,000 m2) of housing,schools, parks and roads to serve the existing 57,000families residing in the area, along with 40,000,000square feet (3,700,000 m2) of residential andcommercial space for sale. There has been significantlocal opposition to the plans, largely because .... (seewww.dharavi.org)

Re-engineering is much easier!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 26: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Master Planner

How will you re-architect your Enterprise?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 27: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Enterprise Architecture

• Align an enterprise’s operations, including businessfunctions, processes, and information systems,with its business goals and strategic direction.

• Technology should facilitate strategic agility

• Little or no lag between• Sensing business opportunity• Changing Enterprise Strategy• Enabling technology to support new processes

• Enterprise Architecture provides a common basisand more disciplined approach for structuring allsystems.

• Does not ignore technology in business processdesign without allowing the tail to wag the dog!

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 28: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Evolution of Ent. Architecture

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 29: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. Frameworks

Four major ones.• Zachman Framework (pioneer from IBM)• The Open Group Architectural Framework(TOGAF)

• The Federal Enterprise Architecture (FEA)• The Gartner Methodology

Many hybrids. Similar to religious wars. Mostunderlying principles are similar (motherhoodstatements- be good, be kind, ...)A slightly closer look at TOGAF.

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 30: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. TOGAF Layers

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 31: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. TOGAF 4 layers

• Business Architecture

• Evolution from BPR and TQM• Business Process Engineering Language (XMLbased) for describing processes

• Business events and Business rules

• Data Architecture

• No longer simple ER-diagrams.• Meta Data concepts (composites, inheritance,OLAP aggregates)

• Reasonably stable (unlike business processesand rules)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 32: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. TOGAF 4 layers

• Application Architecture

• Combines portions of processes together withpieces of data into separate independentsoftware programs

• Provides APIs (partitioning across platforms,integration across products)

• Technology Architecture

• Secure computing and Network Platform• Standardization and Consolidation• Leased line vs. MPLS (e.g. SBI)

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks

Page 33: Enterprise Architecture for Bankssiva/talks/entArch.pdf · • The What (Enterprise Architecture) (20%) • The How (No silver bullet) (10%) िशवकुमार G. Sivakumar

Why What How

.. TOGAF ADMArchitecture Development Method (IterativeProcess- http://www.opengroup.org/)

• Who can do this?

• Outsource? (you can't live withthem, you can't live withoutthem!)

• But, not only outside team(whether IT or Mgmt.consultants)

• Not only IT team (ownership byBusiness leaders important)

• Case Studies

• Many claim huge savings.• Saving-sharing model?

िशवकुमार G. Sivakumar சிவகுமார்Computer Science and Engineering भारतीय ौोिगकी संान म ुबंई (IIT Bombay) [email protected]

Enterprise Architecture for Banks