Achieving Business Process Excellence in Banks

1 2

Agenda Introduction
Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture Sharing of experience in Banking Projects Demo

Introduction to ARISE Consulting

ARISE Consulting is an Oracle Partner specialises in Business Process Management, Enterprise Architecture and SOA using the Oracle BPA and SOA Suite.

Agenda

1 2

Introduction Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture Sharing of experience in Banking Projects Demo

Introduction to BPM

BPM is an integrated and continuous approach towards Business Excellence. It is important to understand that BPM itself represents a process. It is a process consisting of the phases of process strategy, process design, process implementation and process controlling.

Business Process Management ( BPM )A Methodology for Continuous Improvement and Governance

Monitor & Analyze Design

Optimize

IT Implementation using SOA

Current Process Documentation

What are the benefits of using a BPM Tool

Clearly defined rules & standards for process documentation Easier training of new employees

Transparency of business processes

Implement and ensure meeting of regulatory requirements

Increase process oriented thinking

BPM
Improved implementation of new products Improved realisation of required changes in organisation & IT Continuous process measurement

Basis for standardisation of processes

Continuous process improvement

Banking Reference Models Reference Processes

Based on international projects with Financial Institutions End-2-End processes (from customer to customer) in order to allow overall analysis The reference processes will help to compare existing processes with international best practices as well as for project scoping The reference processes cover the following main areas:
Corporate Banking Retail Banking Branch Processes Operations Processes Trading/ Treasury Processes Risk Controlling ...
Processes Reference Bank

Corporate Banking Processes

Retail Banking Processes

Financial Institutions Processes

Treasury Processes

Capital Operations Processes

Supporting Processes

Operations Processes

Financial Accounting and Controlling Processes

Risk Controlling Processes

Administrative Operations Processes

IT / Org Processes

Total Business Process Integration

Business BPM Management Requirements
Order Management and Visibility

Order Planning

Inventory Validation

Shipment Planning

Shipment Execution

Freight Settlement

Process Layer Powered by the Oracle BPA Suite in Fusion Middleware

Automation Layer

Technical BPM Realized Management Requirements

Powered by Oracle BPM in Fusion Middleware

Application Layer

Customer Service Management

Warehouse Management System (WMS)

Other Systems as Required

Complete Vertical Integration Ensures that IT is Aligned with the Business!

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Agenda

1 2

Introduction Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture
Sharing of experience in Banking Projects Demo

11

11

Data redundancy and inconsistency Limited cross-functional analysis

What if I want to know more?

What is our Actual Vs Budget on cost? How much do key business processes cost? Which products, customers or channels are profitable?

What is the impact of selling more through a specific distribution channel? What factors drive retention of my best employees?

Business Intelligent

How to improve our inventory management? Where are my most profitable customer segment?

What are the top performing product lines?

Enterprise Architecture

Balance Scorecard, Dashboard Business Performance Management, Information Architecture, Taxonomy

Management & Business Users

Core Banking, GL & Finance, ERP, HRM

Data Integration, ETL, EII, MDM Infrastructure
IT Development & Maintenance

Copyright 2003 Informatica Corporation. All rights reserved. Informatica Confidential Internal Use Only

Enterprise Information Architecture

Agenda

1 2

Introduction to ARISE Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture Sharing of experience in Banking Projects Demo on Oracle BPA for Account Opening

17

17

Enterprise Architecture

Twenty years ago, a new field was born that soon came to be known as enterprise architecture. The field initially began to address two problems: System complexityOrganizations were spending more and more money building IT systems; and Poor business alignmentOrganizations were finding it more and more difficult to keep those increasingly expensive IT systems aligned with business need.

18 IDS Scheer China www.ids-scheer.com.cn

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Enterprise Architecture
Who?

Business Architecture Data Architecture Applications Architecture Technology Architecture

Organizational view

Business concept IT Concept

Implementation

What?
Business concept Business concept Business concept

How?
IT Concept IT Concept IT Concept

Data view

Functional view

Implementation

Implementation

Implementation

Control view

When?

Primary difference with traditional approaches is the logical link among the four architectures.
Availability of new EA tools.

Enterprise Architecture From Business to IT

Business Architecture

Business Processes, Workflows, Organization, and Collaboration

Business Strategy & Requirements

Application Architecture

Systems, Services, Functional Use Cases

Information Architecture

Data, Business Objects, Exchange Formats, Security and Privacy

Program & Project Management

Portfolio Analysis

Infrastructure Architecture

Hardware, Server, OS, Network

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Enterprise Architecture Reduction of Complexity

Application Level 1
Masterportfolio (Global)
Underwrite Risk Deliver Claim Services
Corporate Solutions Small Busine ss

Technology

Processes

Organisation
Zurich North America

Data
Data Subject to Portfolio
Data Application system

Masterportfolio Applications (Global)

SMS_SERV01

Server 2

Manage Products/ Services

Market Products/ Services

Product Processes Service Processes

Strategic Partnerships Corporate Law

Data Subject 1

Masterportfolio Global Life

e ncompasses

Contract Services

Deliver Contract Services

Corporate Customer

Customer Services

Masterportfolio Applications (Region 1)

Masterportfolio Applications (Region 2)

Masterportfolio Applications (Region 3)

Masterportfolio Applications (Region 4)

Masterportfolio Applications (Region ...)

Data Subject 2

Level 2

Masterportfolio (Region)
.
Underwrite Risk Deliver Claim Services
Zurich North America

Data

Data Subject to Portfolio

Application system
Data Subject 1 Masterportfolio Global Life

SMS_SERV01
Masterportfolio Applications (Region 1)

Server 2

Manage Products/ Services

Market Products/ Services

Product Processes Service Processes

Corporate Solutions Small Busine ss

e ncompasses

Portfolio Product Development (Region 1)

Portfolio Marketing Sales (Region 1)

Portfolio Underwriting & Account Services (Region 1)

Portfolio Billing/ Cash Mgt. (Region 1)

Portfolio Claims (Region 1)

Portfolio MIS / Fin. Mgt. (Region 1)

Level 3 Master P. (Region/Category)/

Landscape
Portfolio Product Development (Region 1)
ARMIS BMS CARS

All aspects are interrelated and depend on each other

Contract Services Underwrite Risk

Deliver Contract Services

Strategic Partnerships

Corporate Law

Data Subject 2
Corporate Customer Customer Services

Data Subject
Customer Services

Data Subject 1

Data Subject 2

Deliver Claim Services

ARMIS
CES

Manage Products/ Services

Market Products/ Services

Product Processes Service Processes

Technical Claims

Claims Services

Data Subject 1

Daily Premium

BMS
CICS

Contract Services

Deliver Contract Services

Claims Attorney

Risk Engineering

Data Facet 1

Data Facet 2

Level 4
Organizational Unit is technically responsible for ARMIS can be platform of

Application
ARMIS
supports Process 1

Technology
Softw a re used by by business users, that exists as an indenpendent entity in the CSC catalog.
BMS

Process
Event 1 Product Data Function 1 Claim Manager

Proprietary Trading Money Market Products Prop. Trader

Data Facet
is input for Data Facet 1 Application can be user Business unit

is of type
can be platform of
ARMIS Event 2

Component 1
is programming language of Programming language

Lowest level of application that can be executed on its own & used by others
Server 1
Product Data

Sales (Customer Trading) Money Market Products

Claim Manager

has output of

DBMS type

Function 2

Salesman Money Market Products

Data Facet 2

Component 2

ARMIS Event 3

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ARIS A Tool which can support various Framework

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Enterprise Architecture Example

Merrill Lynch Organization Structure

M errill Lynch & Co

Corporate Secr etary Office ( CSO)

Business Segment s

Shar ed Services

M errill Lynch G PC Organiz ation Str uct ure

Office of General Counsel (OGC)

G lobal M arkets & Investment Banking (G MI)

Human Reso urces (HR)

Investment M anagers (MLIM)

Finance

Research

Global Technol ogy & Services (GT & S)

Organization
Merrill Lynch Data Architecture
Sales data Manufacturing data Marketing data

Merrill Lynch Business Architecture

A2. Manage Client Relationship

1_ Es tablis h Client's Goals & Expections _Advis or y _Retail 2 _Obtain Account D ata_ Advisory _Re tail 3 _Approve Fact sheet _Advis or y_ Reta il 4 _A ss ign A cc ount N umber_ A dv isory _Retail

1.1. Establish Account

5_Ente r New Account D ata_ Advisory _ Re ta il 6_a_Prepare & Mail Docume nts _Advis or y _Retail 7_Receiv e & Sca n Doc um ents (xer ox) 8_A pprove & A ctiva te Account_ Adv isory _ Reta il

GL and Legal Close

ORACLE FINANICALS HKPRO MLPF&S ORACLE FINANCIALS SUBLEDGER GL & INVENTORY MLIG ORACLE FINANCIALS (MLIGOF) ACTIVITY CONTROL SYSTEM INBOUND FEEDS ORACLE FINANCIALS - SG MI.FINANCE ORACLE FINANCIALS COST CENTER MAINTENANCE (CCM)

Merrill Lynch Application Architecture

FINANCIAL DATA BASE (FDBDCR) GLOBAL RATE CONTROL (GRC) ACTIVITY CONTROL SYSTEM COA BUDGET 2002

Shipping data

Qualit y assurance data

Strategic data

Financial accounting

Cost accounting data

Fixed asset accounting

Conceptual Layer = Requirement Definition

Product number

L3_Advi sory Divi si on

L3_Advisory Divisi on

L3_Advi sory Divi sion

L3_Advi sory Divi si on

L3_Advisory Divi sion

L3_Advi sory Divi si on

6_B_N ew A cc ount/ Fraud proces sing

Xerox

L3_Services & Technol ogy

CORPTAX

WORKFLOW

REVENUE ASSIGNMENT

TRANSFER PRICING

M errill Lynch Global Private Client Business Processes

L3_Services & Technol ogy

Payments,Purchasing,Billing and Chargeback

MLPF&S ORACLE FINANCIALS SUBLEDGER AP ORACLE PURCHASING (SLPO) BUSINESS ENGINE (BEN) ELECTRONIC DATA INTERCHANGE (EDI) TAXI CHARGEBACK REPORTING TAXI EDI FEED MCP WEB

A. Relationship M anagem ent

B. Deliver GPC Products to Private Clients

C. M anage Global Private Client Business

D. Develop Global Private Client Business

Management Reporting
2_Obtain Account Data_Advisory_Retail
1_Establish Client's Goals & Expections _Advisory _Retail
Custom ized_ client net worth inform ation Custom ized_ client trading experi ence Custom ized_ client prod uct experi ence Cust omized _ client in come informatio n Cust omized _ client employmen t informatio n AYG_ personal ba lance sheet AYG_ risk tol erance p rofile AYG_r isk toleran ce & asset allocation model AYG_income, assets & liabili ties in forma tion AYG_personal goals & cashflo w in forma tion

ORACLE BUDGET/ FORECASTING

ORACLE EDW

ORACLE PERFORMANCE ANALYSER

Fact sheet r ecei ved back with account number

E2A

ECONOMIC MAP

FINANCE PORTAL (MI.FINNET)

IFS MUTUAL

BP number

Mapped PainPoints

REACT

ACTUARIAL AND FINANCIAL FA number DATABASE (AFDB) LIVING DISASTER RECOVERY PLANNING SYSTEM (LDRPS)

IPBG/IFS New acc ount JOBMAN

number

INVESTMENT HOLDINGS DATABASE (IHD)

CAM U

TOUCHPOINTS & DATA EXCHANGE IR GRID

IPCG OLAP REPORTING

GCP WEB SITE

Name Business partner ASGN Product

Address

Retail account needed ML website Client Assoc iate (CA) Print fact sheet
2.00 Minute(s)

Description

M anual preparation & storage of paper (profi le) forms Manual print / store of new accounts documents by branch, outdated inventory Manual print / store of new accounts documents by branch, outdated inventory Profile sheet redundancy

Repetitive data entry required

Enter branch or account i nfo rmati on

PCX

Vali date recorded data

FA number

Not valid

Customer number Customer Name Supplier

Supplier number

Name

Address

Address

Logical Layer = Design Specification

Retail fact sheet (CAM ) Retail fact sheet (KDA)

Limited to no sharing of profile data across products

Select account type

CAM U

New account numbe r

KD

Bookkeeping
Retail INSURANCE Financ ia l CLAIM inf or mation Re ta il P er sona l BOND Retail inf ormation fo r ACCOUNT Retail T rad ing non- US acc ount ED D FUND MAINTENANCE in for matio n aut hor ized inf or mation ACCOUNTING individuals SYSTEM (ACM)

Custom ized_ client perso nal inform ation

AYG_ person al in forma tion

Enter initial data on fact sheet (hand-written)

10.00 Minute(s)

Client Assoc iate (CA)

Retail fact sheet (CAM )

M ore than 100 data elements to be captured

12B1 MF (MUTUAL FUNDS)

Primar y ser vice ty pe

Valid

ICMS

CAMRA

ACCOUNTS PROCESSING FIRM SIDE (APFIRM)

Retail fact sheet (KDA) Retail fact sheet (CAM )

Lack of relati onal, reusable data

Retail Employm ent inf or mation

Retail Co rr espo nden ce in for matio n

Re ta il Account ti tl e information

Retail Perso nal in for matio n f or a cco unt a uth orize d individua ls

Determ ine missi ng informati on on fact sheet

Retail fact sheet (KDA)
10.00 Minute(s)

Client Assoc iate (CA)

CAs need to determine document requirements based on knowledge / resources

Too m any account form s

Ad d client profile/ account i nfo rmati on

CAM U

C li ent profile/ data recorded

PATH

Dupl ication in review of documents

Lack of training / consistency for account opening process

Al l information received

Retail fact sheet (CAM ) Retail fact sheet (KDA)

Client information missi ng

0.20

No overview which features cli ent requested

Fact Sheets Usability

Retail fact sheet (CAM Retail fact ) sheet (KDA)

Complete fact sheet

12.00 Minute(s)

Client Assoc iate (CA)

Retail fact sheet (CAM Retail fact) sheet (KDA)

Follow up wi th client to get missing information

30.00 Minute(s)

Client Associate (CA)

Client

Fact sheets need to be filled out by hand even though data i n system CAs not document experts want review of client documents, esp. legal

Data

Physical Layer = Implementation

Fact sheet completed

Retai l fact sheet (l CAM) Retai fact sheet ( KDA)

0.80

Retail fact sheet (CAM Retail fact ) sheet (KDA)

Review & sign fact sheet by FA

5.00 Minute(s)

Fiancial Advis or (FA)

Retail fact sheet (CAM Retail fact) sheet (KDA) FA ap prova l informatio n

Processes
Dupl ication in review of documents Delayed account opening due to manual approvals of profi le form Long process cycle time due to sending - waiting receving documents Delayed account opening due to manual approvals of profi le form M anual process routing Series 8 approval delays process

Applications

0.80

Retail fact sheet (CAM Retail fact ) sheet (KDA)

Give reviewed fact sheet for SEC regulation approval

2.00 Minute(s)

Client Assoc iate (CA)

Retail fact sheet (CAM Retail fact) sheet (KDA)

Merrill Lynch Products & Services

Fact sheet to be reviewed

Merrill Lynch Products & Services

IID DS SP Prro ojje ec ctt e ex xa am mp plle e

IDS Scheer, Inc. 2004

3_Approve Fact sheet _Advisory_Retail

for Individual Investors with Banking & Lending Needs

Cash Management Customized Lending Solutions

for Small & Midsized Businesses with Cash Management Needs

WCMA Account

for Corporations & Institutional Investors & Gouvernement with Global Dept Needs
Credit Derivatives

Card Services

Emerging Markets Services

Products and Services

Integration Framework

Holistic View not in Isolation

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TOGAF: ADM (Architecture Development Cycle)

Relationships Between EA, BPM and SOA

Enterprise Architecture
Govern

SOA
Execute
Design

Implement

Model

Simulate

Business Process Management

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Enterprise Architecture Benefits

Architected?

A survey of CIOs shows that average total cost per end user (i.e. using the entire IT budget) varies by organization size and the presence of architecture

Results of CIO survey January 2002

Yes

$22,534

$6,185

Architecture and standards are good for IT cost efficiency

$30,386

$9,209

No

Small

Org. Size

Large

Architecture planning and standards compliance can reduce IT budget expenditure by an average of 30%
Source: META Group
27 IDS Scheer China www.ids-scheer.com.cn

Joint Ownership of Requirements is Most Effective

28

Agenda

1 2

Introduction Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture Sharing of experience in Banking Projects Demo

29

29

Key Business Drivers

Key Business Drivers in the Banking sectors Become a Customer-Centric Bank Build Market Responsiveness by Transforming Core Banking Processes

Manage Compliance, Risk, and Performance More Effectively

Improve Operational Effectiveness of Corporate Assets Evolve to an Agile, Intelligent, and Secure Platform

Applications Scenarios by Topic

Implementation of Core Banking ( DBS )

Branch Transformation ( BII ) Enterprise Architecture / (K Bank )

BPM

Quality Management and Six Sigma (DBS )

Internal Controls, Risk & Compliance Management (ABN AMRO Workflow Management ( DBS )

Enterprise reality
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Banking Customers in this region

Bank Internasional Indonesia DBS Bank ( Singapore ) OCBC ( Singapore )

Credit Suisse ( Singapore )

Commonwealth Bank ( Australia ) Deutsche Bank ( Singapore ) ABN AMRO ( Thailand ) K Bank ( Thailand ) RHB ( Malaysia ) Southern Bank ( Malaysia ) Citicorp ( India ) Bank Simpanan Nasional ( Malaysia )
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Agenda

1 2

Introduction to ARISE Business Process Management and Execution

3
4 5 6

Business Intelligent
Enterprise Architecture Sharing of experience in Banking Projects Demo

34

34

ARIS Platform Leading the BPM Market Since 1995

Business Process Analysis/Modeling Magic Quadrant

June 2007

Research ID G00137850
...IDS Scheer has been a leader for years now and has one of the most comprehensive toolsets in the BPA Magic Quadrant ARIS. IDS Scheers initial success was managing the reference models for SAP, but IDS Scheer has kept expanding its markets, tools, methods, process templates and consulting support. With additional successes on the BAM front, IDS Scheer has been an integral part of SAPs NetWeaver offering. IDS Scheer has the most partnerships with leading independent software vendors and BPM players, including Fujitsu, Lombardi, IBM, Microsoft and NEC...

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