1. Masterclass 1 An Introduction to IT for Banking Business Project Managers RT IT Consulting

2. Masterclass 1 – Introduction to IT for Banking Business Project Managers Core Concepts IT Operations vs. Application Development Infrastructure vs. Application Software Some Key Technical Ideas Packages vs. Home written Software IT Platforms Dumb Screen Technology Fat Client Technology Web Technology Testing Part 1 Part 2 Part 3

3. 0% Resource dedicated to day-to-day Resource dedicated to injecting change 100% IT Operations/ Production Applications Development Operations Vs. Application Development

4. AD vs. Operations Programme 1Programme 3 Project 1Project 2Project 3 Often Business Unit/ Division specific Dynamic/ Frequent Changing hierarchies PM’s, Analysts, Programmers, Testers Resource Pool / Staff move from Project to Project Applications Development Tech Specialists Operators Managers Planners Mainframe Distributed System Mid Range Telecom/ Voice Problem ManagementChange Management Service Management IT Operations Tech Specialists Operators Managers Planners Tech Specialists Operators Managers Planners Tech Specialists Operators Managers Planners

5. Business Logic/ Application Software IT Infrastructure AD “own” and “change” “run” and “control change introduction” ITS “own”, “run”, “control change introduction” e.g. : Web pages Access D/B structures totals in spreadsheets e.g. : Explorer Microsoft Word NT the PC Workstation the LAN wires Infrastructure vs. Application Software

6. Batch Factory/production line model “batches of transactions” “rigid central control” “invisible” “sequence fixed “ “time driven” “24-Hour + feedback time” On-Line Retail shop model “unit of work is a TXN” “user controls” “very user visible” “users determine arrival rates and sequencing” “Event driven” “real time behaviour” On-Line vs. Batch

7. Package vs. Home Written Software Cost of S/W development is rising exponentially For mainframe, UK Clearing For mainframes industry Banks wrote in house supplied to small Banks 1990’s (all) Business Logic 1990’s 1990’s 1980’s Database 1980’s (less) (part) Management 1990’s1980’s 1970’s Teleprocessing/ 1970’s (part)(part) (most)Middleware 1990’s1980’s1970’s 1960’s Operating System 1960’s (none)(less)(less) (big part)

8. IT Platforms Client ServerMid RangeMain Frame Size2 - 50 users20 - 2,000 users1,000’s of users Sharing1 application per1 or few applicationsMany applications boxper boxper box H/WPC’sTandem, SunIBM S/390 AS/400, HP, RS/6000 OperatingNT, WindowsUnix orOS/390 SystemProprietary DBMSSQL ServerOracle or ProprietaryDB2 NB: This is all IT Operations ‘owned’ componentry

9. Dumb Screen Technology EARLY EIGHTIES Central Computer Dumb Screen Essentially a TV + a keyboard Character based No Colour, No Fonts, No Icons, No Variable size, No parallel processing 3270, VT100, PROGRAM Screen Layout Business Rules Data Retrieval + Update NOW PROGRAM Screen Layout Business Rules Data Retrieval + Update PC “emulating” a dumb screen Usually in a window Prime Example – A Bank’s Back Office Poor User Interface

10. Fat Client Technology Central Computer PROGRAM Data Retrieval Program Screen Handling Business Rules Local Data Server Positive Great User Interface Negative Impossible maintenance load for large organisations Cost per client rocketing Client PC Program to Program Protocol

11. Web Technology Central Computer Program Screen Layouts Business Rules Data Retrieval and Update Internet Server User PC VERY PROMISING TECHNOLOGY Combines the best attributes of Dumb Screen -Low PC Maintenance And Fat Client -Good User Interface

12. Key Things to Understand About Testing The Application Development Lifecycle EFFORT FEASIBILITY DEFINEBUILD TIME IMPLEMENT The point of testing in IT projects is to avoid encountering problems that are unmanageable when the project goes live. It is a Risk Management tool. It is not the only risk management tool Testing is possible at all points in the lifecycle Testing is much cheaper earlier in the lifecycle but gives less certainty (errors can be introduced later on)

13. More Key Things to Understand About Testing Testing after software is built is very expensive To run tests you have to build an environment with some known stored data and software, with some known inputs and anticipated outputs. The environment has to be repeatable and involves: Dedicated H/W Dedicated ITS and AD Support Dedicated Data Business staff to work out what should happen, key inputs, validate outputs, make business parameter settings INPUTS PROCESS OUTPUTS STORED SOFTWARE STORED DATA You can’t test everything Trillions of combinations of customer types, product types, transaction types, channel types etc. Banking systems are horribly interconnected You have to make choices about what not to test

14. Testing Jargon UNIT TEST SYSTEMS TEST USER ACCEPTANCE TEST (UAT) INTEGRATION TEST REGRESSION TEST OPERATIONS ACCEPTANCE TESTS (OAT) SHAKEDOWN/ SKIM TEST TEST CYCLES PERFORMAMANCE TESTS/ STRESS TESTS SCENARIO -Individual programs work as individually expected – an IT test ; No business involved -A group of programs work together to achieve a business end; an IT test, business may help to inform the test -For a system a set of tests defined by a business department to decide whether the system works, normally based on functional specifications; good discipline is that it is designed and run not by IT -Test a group of systems together to see that the cross system aspects work (very expensive indeed). -Tests to see that a change in one area has not messed up something somewhere else; Can be as big as your wallet. -IT Operations needs to be able to operate the system (start it, stop it, problem diagnose it etc.) -Test that the test environment is fit to start being used for testing. -Typically in a test you encounter a problem, it has to be fixed and then the test re-run. Each re-run is a cycle. -The key aspect being tested is the ability to process volumes in short timescales whilst maintaining service levels (e.g. response times). Normally requires completely different test environment to other types of test -A specific set of data and circumstances for a specific test

15. V The V Model of Testing Business idea (launch a new product, sell x, profit y) Outline Solution Description Functional Specification Program Specs Unit Test Systems Test Integration Test Regression Test Market research post Launch Increasing cost Solution context diagrams