practical togaf 9 sample soln 2014q2 -...

inspired!©2008- 2014Practical TOGAF 9 - Q4 2014

Exercise 1

No sample solution. Just case study familiarisation for students.


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

Architecture Principles (Ex 3)


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


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


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.


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.



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


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)


Application Gap Analysis (Assignment 10)



Technology

CategoryDatabase Management System

Development Language

Development Framework

Query and Reporting Tools

Transaction Processing MonitorOperating System

Wide Area Network


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)


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


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


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


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


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


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)


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


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)


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.


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