1. 1 Architecting Business Solutions for the Enterprise Presented by: JIM CALDARELLA Senior Solutions Architect – i-flex solutions For more information contact: jim.caldarella@iflexsolutions.com

2. 2 The CEO Song Our technology is “bankrupt” Our core systems are stretched too thin They are overly complicated We struggle to make mandatory changes Improvements are expensive and slow One-off upgrades are band-aids On the whole, it gives us too little and costs too much! How do we attack the problem?

3. 3 The CTO Refrain We must re-automate the back office Ensuring that it supports today’s and tomorrow’s business needs The changes must be cost-effective, high- performance, modern… We need to do it “soon” We won’t make a dent in earnings It will conform to an enterprise-wide “Architecture”

4. 4 Second Chorus Our legacy systems are… –Insular…applications are not integrated –Out of touch with our marketing / sales initiatives –Complicated…some with 35+ years of tweaking –Expensive…the same IT ”capability” costs less every year –Untouchable…big changes to meet market needs—forget about it! –Loved…Tradition!…after 35 years, who doesn’t love their system? We face real business risks… –Customer “trust” erodes…not quick, fast, agile, or strong enough –A huge disaster strikes…no one has a total view –Opportunities escape…they all don’t just fall on your head –Costs escalate…eroding earnings and creating a bunker mentality –Defensive spending rises…costs a lot, does little to help –Ill prepared for the unknown…

5. 5 The Big Question What is an architecture? How do we get one that fits our business?

6. 6 The Entire Space The Back Office Comprehensive, but not very useful

7. 7 Breaking It Down What you offer to your customers Your products and services The Back Office Business

8. 8 The Back Office Breaking It Down Organized into business processes Function Business The work you do to deliver products/services

9. 9 The Back Office Data Breaking It Down Represented as data entities Function Business The information you process

10. 10 Breaking It Down Buildings, computers, networks, people… The physical environment The Back Office Infrastructure Data Function Business

11. 11 The Back Office What Drives What? Infrastructure Data Function Business Requirements [Degree of Abstraction]

12. 12 Revealing the Essentials The components of each layer and their arrangement (the architecture) needs to be clear The components of each layer need to be presented in understandable ways (taxonomies / hierarchies) The relationships between the components of different layers shows how needs will be fulfilled (mapping)

13. 13 Components - Business DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Business Function Data Infrastructure

14. 14 Components - Function DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Processing Loan Processing Payment Processing FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… Business Function Data Infrastructure

15. 15 Components - Data DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Processing Loan Processing Payment Processing FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… CustomersAccounts … Business Function Data Infrastructure Relationships

16. 16 Components - Infrastructure DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Processing Loan Processing Payment Processing FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… Business Function Data Infrastructure CustomersAccounts … Relationships

17. 17 Architectures & Hierarchies Legal Entities Account Holders Prospects … DDALoan … Data (an example) CustomersAccounts … Relationships Customers Legal Entities Account Holders Prospects … Accounts DDALoan …… A hierarchy presents complex organizations in an understandable way An Architecture illustrates how things work by revealing the nature of component relationships Own

18. 18 Inter-layer Mapping DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Processing Loan Processing Payment Processing FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… Customers Legal Entities Account Holders Prospects … Accounts DDALoan … … “Own” Business Function Data Infrastructure

19. 19 Mother of all Mainframes Applications DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Proc Loan Proc Payment Proc FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… Customers LE Acct Hldr Prosp … Accounts DDALoan … … “Own” Business Function Data Infrastructure FTDPLN PostGLRep LNFT Acc Current Software Applications Consistent and understand- able reference points

20. 20 Reasons for Change! Minimize… –Redundant functions –Number of stops End-to-End –Parsing, editing, mapping, validating… –Technology limitations… Maximize –Shared functions –Shared data –Standardization… Know your data (your competition certainly does)!

21. 21 Mother of all Mainframes Connecting Old and New DepositsLoansPaymentsFXL/C Internet AccessATM ServicesTeller Services … Getting Stuff In and Out Deposit Proc Loan Proc Payment Proc FX Proc. L/C Proc. … Posting, Reports, Risk Mgmt… Customers LE Acct Hldr Prosp … Accounts DDALoan … … “Own” Business Function Data Infrastructure FTDPLN PostGLRep LNFT Acc Current Software Applications Core Banking DP…LNFT Internet Access Nirvana Payment Gateways Business Intelligence …

22. 22 Mother of all Mainframes Getting There FTDPLN PostGLRep LNFT Acc Current Software Applications Core Banking DP…LNFT Internet Access Nirvana Payment Gateways Business Intelligence … Plan

23. 23 Options Remodel… –Cheaper, easier, less risk, requires a lot less thinking –New paint, new room…same old house Build… –Very expensive in today’s world, very difficult, huge risk of failure, requires a ton of very expensive thinking –A new, custom-built processing environment Buy –Cost effective, easiest, no risk, focuses thinking in the right areas –A new, off-the-shelf processing environment –Configurable…how much? –Better technology? Most are going to choose the “buy” option; Loss of competitive advantage is an issue!

24. 24 The i-flex Model Core Banking… Customer Information Risk Management DDA processing GL and Sub-Ledger Middle Office (e.g. confirms) Regulatory Reporting Account Analysis, Billing Payments Straight Through Processing FT Liquidity management Regulatory Compliance Anti Money Laundering Message Format Queue management & Routing Loans Loan Syndic- ation Fed…CHIPS…SWIFT…CHAPS FX Securities Custody Deposit … Internet Gateway Branch Operations … Data Warehousing / Business Intelligence Marts

25. 25 Our Products FLEXCUBE…Core Banking HPO (high-performance) or AutoFT…Payments FC… Loans FC… Loan Syndic- ation Fed…CHIPS…SWIFT…CHAPS FC… FX FC… Securities Custody FC… Deposit … FC… Internet Gateway FC… Teller Operations … Reveleus… Data Warehousing / Business Intelligence Marts

26. 26 Benefits Cost Reduction –Savings in S/W maintenance / enhancements, D/C operations… –Savings in operations with improved productivity –Payback periods of 5 to 8 years on average Risk Mitigation –An integrated view closes many of today’s largest holes –Improved operating control means faster response to issues Better Compliance –Keeping up with regulatory controls is easier / less expensive –Improved compliance allows regulators to step back Improved Responsiveness –New products and features are easier / less costly to introduce –User configurable software allows low cost market differentiation Positive Customer Experience…

27. 27 Thank You www.iflexsolutions.com