Better, Faster, Cheaper ACH: An MDA Approach Richard Mark Soley, Ph.D. Chairman and CEO Object Management Group, Inc.

That’s the Great Thing about Standards The financial payments world is a mess. “Old” protocols: SWIFT FIN, FEDwire, Visa, Mastercard, dozens of ACH protocols “New” protocols: SWIFTnet and the rest of the XML family: TWIST, IFX, FIX, etc. Are we replacing a mess of proprietary protocols with a mess of proprietary standards? Aren’t all of these payments and ACH standards special cases of a general concept: secure, reliable financial information transfer

XML Changes Everything! Throw out those pesky objects! Everything old is boring! All problems are now solved! All your software pain gone forever! It’s a REVOLUTION!

Everything Old is New Again Unfortunately I’m old enough to remember –Artificial Intelligence –Object Technology –Distributed Computing –XML –Web Services –Enterprise Service Bus –Service Oriented Architecture This technology does everything! It makes miracles, changes water to wine…

OK, Calm Down Got that out of your system? Have we seen this before?

OMG’s Vision The Global Information Appliance

Not too bad for electrical power

…but a mess for telephony!

OMG’s Mission Since 1989 Develop an architecture, using object technology, for distributed application integration, guaranteeing: –reusability of components –interoperability & portability –basis in commercially available software Specifications freely available Implementations exist Member-controlled not-for-profit

Who Are OMG? ArtinSoft Bank of America BEA Systems Borland Boeing CA Compuware DaimlerChrysler EDS Eurocontrol Fujitsu GSA Hewlett Packard Hitachi Hyperion IBM IONA io Software Kabira Kennedy Carter John Deere Lockheed Martin MITRE Motorola NASA National Archives NATO Nokia NUWC NTT DoCoMo OASIS Oracle Sandia Labs SAP SAS Institute Sun Microsystems SWIFT Unisys VISA W3C

What is the Priority? Analysis, Design, Development, Test & Deployment: 10% Maintenance & Integration: 90% Lesson: Software lifecycle costs are in the back end.

What is the Point? Reuse Interoperability Portability Maintainability Productivity Business Alignment

Because Otherwise We’re All Just… …roadkill on the information highway!!

We Must Be Able To… Capture enduring design Separate capture of process from engineering of implementation Automate the latter as much as possible Design-in agility The key ideas: enduring, automated and more importantly agility

The Model Driven Architecture OMG’s Model Driven Architecture (MDA TM ) initiative is aimed precisely at this problem You have an opportunity to increase your bottom line by integrating your assets Industry standards support that goal by future- proofing your application design The MDA will help you integrate the mix you have today, and give you an architecture to support the unexpected Focus on integrating legacy applications Ensure smooth integration of COTS applications Models are testable and simulatable The aim: a 20-year software architecture

Model Driven Architecture

Model Driven Architecture An initiative of the Object Management Group (OMG) A brand for tools based on OMG’s UML and MOF open standards A set of specifications defined by OMG’s open, worldwide process.

MDA Adoption in Verticals Vertical market groups are thriving on MDA approach, both within OMG and other groups: –Financial Services –Electronic Commerce –Healthcare –Life Sciences Research –Manufacturing –Space & Ground Systems –Telecommunications –Legacy Integration –ISO 20022, UN/CEFACT

MDA is Proven in Software Development Many excellent proofs-of-concept: –Banks, railroads, trading, insurance, manufacturing, healthcare, etc. –Adopted by UN/CEFACT, SWIFT, ACORD, HL7 and other key standards players Careful studies prove the point –The Middleware Company (TMC) –Electronic Data Systems (EDS)

MDA: More than Software In the last year, MDA has been used to apply UML to a growing number of new digital infrastructures: –Systems engineering –Business process modeling –Business rules modeling –Data/information modeling –Process definitions in patents Software was just the first application

UML Modeling is Widespread Even outside OMG’s own 18 vertical- market standardization groups, MDA is being used to leverage UML process description in many other settings: –ACORD: insurance industry standards –HL7: healthcare standards –SWIFT: financial payments interoperability

SWIFT: Major Financial Player Society for Worldwide Interbank Financial Telecommunication established in 1973 by 239 banks in 15 countries Now serving 7,650 institutions in 200 countries, peaking at almost 10 million transactions a day and totaling 2 trillion transactions a year, with 99.99% uptime; upgrading in 2004 to worldwide IP-based SWIFTNet Through automation, reduces members costs for Payments, Securities, Foreign Exchange, Treasury and Trade Owned by financial industry members Based on open standards Global financial community’s foremost messaging infrastructure

SWIFT Leverage of UML SWIFT now uses a three-layered approach to defining standards, with processes defined in UML and (currently) delivered as XML Schemas –Business-oriented approach to definition –Formal involvement of all transaction parties –Involvment of industry experts –Implementation-neutral –Defined in UML and automatically translated –Allows rapid changes to infrastructure and agile response to changing business requirements

SWIFT Standards Process Business Analysis Requirements Analysis Logical Analysis Logical Design Technical Design Technical Implementation Understand the business What is the communication problem Define the solution Refine the solution Physical implementation (automated)

Effect on ACH How is all this relevant to ACH? –SWIFT’s SWIFTnet protocols are an example of a protocol generated from business models –A general definition of financial transfer can be used as a “Rosetta Stone” for all of the “old” and “new” protocols –In the face of constant infrastructure change, it’s the only hope –We can’t keep rebuilding all of our systems every time some technology has a good idea!

OMG Compliance Consortium The fastest-growing problem in IT –Regulatory compliance grows more complicated by the day –Example: Sarbanes-Oxley in the US Standard models to ensure compliance Standardized best practices Newsletter, workshops, webinars, seminars, research, support,…

UML/MDA are Transforming Not only are UML and MDA about transformation, but they are transforming business processes in the digital infrastructure For more information: –MDA: –OMG: –Soley: