Exercise 1

No sample solution. Just case study familiarisation for students.

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 Stakeholders (Ex 2b)
Stakeholder Internal / External
Bank Executive Committee (Exco) Internal
Board of Directors External
Shanghai/ Beijing Regional Execs Internal
Hong Kong Regional Execs Internal
London Regional Execs Internal
Shareholders External
Clients External
IT Management Internal
Statutory Bodies External
Vendors External
Chinese Government External
Counter Parties External
Partners External
Staff Internal
Unions External

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Architecture Principles (Ex 3)
 Architecture Principles (Ex 3)

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 Architecture Vision (Ex 4)
Vision Description

• 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
2018 Business Vision
• 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 

• 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
2018 Technology Vision • 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

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 Team Assignment 5
Internal /
Stakeholder Concerns Views
External Items in italics are non-TOGAF

1 Technology Portfolio Catalogue & Networked

1 Business Continuity Computing/ Hardware Diagram & Environments and
Bank 2 Business Expansion Locations Diagram
Executive 3 Regulatory Compliance 2 Environments and Locations Diagram
Internal
Committee 4 Cost Management 3. Business Capabilities Roadmap
(Exco) 5 Competitiveness 4. Technology Standards Catalogue
6 Governance 5. Product Catalogue
6. Principles Catalogue
1. Principles Catalogue & Technology Portfolio
1 Risk Management
Catalogue & Risk Register
2 Business Expansion
Board of 2. Environments and Locations Diagram
Internal 3 Cost Management
Directors 3. Technology Standards Catalogue
4 Competitiveness
4. Product Catalogue
5 Reputation
5. Principles Catalogue
1. Principles Catalogue & Technology Portfolio
1 Risk Management Catalogue & Risk Register
Shanghai/
2 Business Continuity 2. Technology Portfolio Catalogue & Networked
Beijing
Internal 3 Cost Management Computing/ Hardware Diagram & Environments and
Regional
4 Service Delivery Locations Diagram
Execs
3. Technology Standards Catalogue
4. Service Function Catalogue
1&3. Organization Actor Catalogue
Hong Kong 1 Flexibility
2. Technology Standards Catalogue & Interface
Regional Internal 2 Interoperability
Catalogue
Execs 3 Autonomy
 Team Assignment 5 - Cont’d
Internal /
Stakeholder Concerns Views
External
Items in italics are non-TOGAF
1. Product Catalogue
1. Marketing
London 2. Application and User Location Diagram
2. Customer Experience
Regional Internal 3. Principles Catalogue & Application Migration
3. Compliance
Execs Diagram
4. Competitiveness
4. Product Catalogue
1. Risk 1. Principles Catalogue
Shareholders External
2. Returns 2. Driver/Goal/Objectives Catalogue
Clients
External 1. Product Catalogue & 2. Application and User
(represented 1. Customer Experience
Location Diagram
by Client 2. Risk
Internal 2. Principles Catalogue & Risk Register
Service)
1. Technology Standards Catalogue
1. Cost Management 2. Principles Catalogue & Risk Register
2. Risk 3. System Organization Matrix & Application and User
3. Service Delivery Location Diagram
IT Internal 4. Application Portfolio 4. Application Communication Diagram & Application
Management 5. Technology Portfolio Migration Diagram
6. Skills 5. Technology Portfolio Catalogue
7. Security 6. Staff Resources and Skills Matrix
7. Data Security Diagram
1. Principles Catalogue & Risk Register
Statutory 1. Risk
External 2. Principles Catalogue & Data Migration Diagram &
Bodies 2. Compliance
Process Flow Diagram
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
Competent and Robust.
Services
Financial & Tax Advice
Not Automated
Services
Geographic
Incomplete.
Representation
Ability to Grow the
Limited by monolithic systems, non-standard processes, lack of multi-lingual support
Business

Business Continuity DR Capability for core banking back end. No capability in Regions

Legal Compliance Basel II

Costs higher than necessary due to legacy technology, proprietary network, system redundancy,
Control Costs
technology redundancy, leading to higher license and support costs

Generate New Products Limited. Knowledge embedded in systems

Security could improve. Especially with new sophisticated attacks. Anti-Money-Laundering

Security & Trust
capabilities must improve to meet new international norms.
 Business Gap Analysis (Ex 7)
China Fortune Bank - Business Gap Analysis
Target Architecture
Core Produce Interface to Manage Rapidly Deploy Legal and Business Electronic Statutory Single
Banking Investme Partners Risk in New Region Basel Comp Continuity Document Reporting all Customer
ELIMINATE
Service nt and Central and Regions View
Returns Bank Workflow
Core Banking partial
Service match
Produce included
Investment Returns
Interface to included
Partners and
Central Bank
Manage Risk partial
match
Statutory Reporting partial match separate
solutions
Customer eliminate
Management unique
replicated data
in old systems
update for Risk Bank in a Box Data Archival, Scanning, eliminate Single
architecture scoring, concept, implications, Data routing, multiple consolidated
principles, analysis, multilingual, process Management indexing, solutions. customer
ensure monitoring culture implications, , Disaster storage, Create information
scalability and history respected, system recovery communicati unified management
GAP keeping will local reporting implications, sites, on capability to service
have to be requirements reporting procedures meet
upgraded etc. statutory
for Basel reporting
requirements
in all regions
 Team Assignment 8
Existing Assets mapped to Domain Model
MF/DB2 MF/VSAM AS400 Oracle Adabas MsSQL Embedded in
Application
Customer X X

Location X

Employee X

Partner X

Channel X

Institution X

Product X For Loans

Financial Tx X X

Non-Financial X X X
Tx
Instrument X

Trade X

Document X

Standards
Yes No Yes Yes No Yes
Compliant?
 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

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 Practical TOGAF 9 Assignment 9

Data Baseline Architecture

Category Existing Asset Principle Compliant? Comments

Customer Customer DB DB2 Y CUSTACC
Customer Applications Customer DB DB2 Y APPS
Customer Quotes Quotes DB Ms SQL Windows Y QUOTES
Customer Accounts - Accounts DB DB2 Y CUSTACC
Banking Transactions Transaction DB DB2 Y RETAILINTERFAE
Transaction DB Ms SQL Y WESTERNUNION
Customer Agreements Contracts VSAM Files N AGREEMENT
Risk Scores Customer, Account DBs DB2 Y RISKAVERSE
Loans Loans DB DB2 Y LOANS
Treasury Accounts Treasury Accts DB DB2 Y TREASURE
Assets Asset Records VSAM Files N ASSETMAN
Asset Insurance Asset Cover DB DB2 Y ASSETSURE
General Ledger Accounts GL Files VSAM N LEDGERMASTER
Clearance Transactions Transaction DB DB2 Y TRANSFER
Statutory Reports - China Reports DB DB2 Y GOVTREP
- Hong Kong Reports Oracle Y GOVTREPHK
- UK Reports SQL Server Windows Y GOVTREPUK
Stocks, Trades, Forex RelalTrade DB Oracle Y RealTrade
Documents ?? N DOCUMAGIC
Workflow Worflow DB Adabas N FLOWMATIC
Product Information embedded in apps and N
customer & account databases
eMail files N SCALIX
Human Resources HR DB Adabas N HUMANRESOURCES
Jurisdiction/currency embedded in apps N

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 Information Architecture Building Blocks (Assignment 9)
Building Block Functions Provided Rationale

We need accurate and consistent customer information to

Consistent Integrated
underpin enhanced customer service and risk management
Customer information (where
(leading to Basel II Compliance). It should be possible to see
Consolidated Customer includes prospects
the customer and his/her portfolio across all business units
Customer and past customers) available
and product categories. Enhanced functionality should track
Information as a service to applications,
the interaction with the customer as well as any issues related
reporting and business
to customer and their resolution. Information will also be
intelligence tools.
enhanced to prevent money laundering.

Provide a reliable view on risk

related to Customers, Products, Basel compliance requires us to keep more information, at
Business Units, Staff Members, higher levels of accuracy and for longer than we currently do.
Comprehensive CoRespondents and other We also need to have a more complete view of the portfolio so
Risk Scoring and entities. Support full that we can do better risk scoring. Further, we are required to
Analysis Data capabilities required to do keep risk data for longer and report in more sophisticated
internal risk assessment as
ways. These capabilities will be supported by the new offering.
well as to integrate external
views (e.g. from credit
bureaux).

A generic capability to perform

Consolidated financial, compliance and Provides a single solution to address financial reporting,
Financial, regulatory reporting using data regulatory compliance (for reserve banks, financial service
Compliance and from source systems. Capable regulators and Basel II) that is configurable per territory. Will
Regulatory of handling multiple currencies typically be provided by reporting engine coupled with industry
Reporting and requirements for multiple and Basel data models.
jurisdictions.

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 Information Architecture Building Blocks (Ass. 9 - Cont’d)
Building Block Functions Provided Rationale

Provides a standard facility for the

capture, storage, indexing, retrieval,
versioning and archival of documents Document management is a generic function required
Document in a variety of popular formats across organization units and application areas. It
Management including word processing, enhances value and reduces costs if this is provided as
Service spreadsheets, HTML, pdf, Powerpoint a standard service which applications and user
and others. Storage, indexing, communities can call upon.
versioning, retrieval, full text search,
compression, security, archival.

Removes product configuration and

design details as well as limits, rates
Removing the product definition and configuration from
and other parameters from code and
code allows greater flexibility in product design,
Product places them in a database for easy
reduces time to market (increase agility) and reduces
Configurator design of new products and
maintenance cost and business reliance on IT skills
maintenance of existing products.
availability
Provides services related to products
to other applications and processes.

A utility layer that provides consistent

Will assist with achieving single client view and in
service oriented access to consolidated
Master Data migration from legacy technologies to new
logical data view regardless of
Management implementations with minimal impact to running
underlying implementation
applications.
technologies.

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Practical TOGAF 9 - Q4 2014
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 Practical TOGAF 9 Assignment 10

Applications Baseline Architecture

Category Existing Asset Principle Compliant?

Product Modeling nothing beyond embedded rules
Core Banking CUSTACC Y
RETAILINTERFACE Y
QUOTES N
WESTERNUNION N
APPS N
Loan Administration LOANS Y
Asset Management ASSETMAN N
ASSETSURE Y
Risk Scoring RISKAVERSE Y
Forex & Currency Trading RealTrade N (Package)
Stock Trading/Futures/Derivatives RealTrade N (Package)
Investment Analysis RealTrade N (Package)
Tax Modeling none
Financial Modeling none beyond spreadsheets
Clearing and Settlement TRANSFER Y
Statutory Reporting GOVTREP Y
GOVTREPHK N
GOVTREPUK N
Business Analysis and Modeling none found
HR and Payroll HUMANRESOURCES N (Package)
General Ledger LEDGERMASTER N
Decision Support DASHBOARD N
Purchasing none found
Customer Relations Management CUSTACC Y
AGREEMENT N
Web Site none found
Treasury TREASURE Y
eMail Server & Calendaring SCALIX Y
eMail Client and Web Browser Netscape Y
Workflow and Document Mgmt
Practical TOGAF 9 - Q4 2014
FLOWMATIC
DOCUMAGIC
N (Package)
? (Package)
©2008
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Application Gap Analysis (Assignment 10)

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 Practical TOGAF 9 Assignment 12

Technology Baseline Architecture

Category Existing Asset Principle Compliant? Comments

Database Management System DB2 Y Mainframe
Adabas N Mainframe
VSAM N Mainframe
Oracle Y Various
Ms SQL Server Y Windows Platforms
OS400 (built in db) Y AS400 platform only
Development Language COBOL Y
PL1 N Hardly supported
Smalltalk Y Old and unusual but highly suited to trading environment
PHP Y Highly suited to Web server environments
Natural N Mainframe language for Adabas
Java N Widely used in industry but we have few skills
C++ N Seen as too low level for commercial bespoke systems
C# Y Microsoft replacement for C++ and Java
Development Framework COM+ N Older Microsoft environment, deprecated
.NET Y Newer Microsoft environment, regarded as productive
Query and Reporting Tools Oracle Forms N Highly proprietary
Crystal Reports Y
Transaction Processing Monitor CICS Y
Operating System OS390 Y Mainframe
OS400 Y AS400
Linux Y “Unix”
Solaris Y “Unix”
Windows Y
Wide Area Network IBM SNA N TCP/IP now global standard

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Existing Assets Mapped to TRM (Ass. 12)
Practical TOGAF 9
© Inspired 2008-2014
email: Scalix
document mgmt: All Business Apps listed in
Documagic the App Architecture

CICS, IBM OS390 APIs, Unix APIs, COM+, .NET

COBOL
PL1
Smalltal
k 3270
C++ Wind
C# ows DB2 Web:
PHP Web MsSQL gif,
Oracle - Brows Adaba jpeg
Forms er s Scan:
Natural Oracl VSAM tif
Java GAP SNA CICS GAP e GAP GAP

OS390, OS400, Solaris, Linux, Windows

IBM SNA

IBM SNA; TCP/IP

IBM SDLC, TCP/IP

 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. Continuity
No Tech Change unless business advantage

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 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

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 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

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 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

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 Technology Migration Plan Example (Assignment 14)

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 Assignment 14
Practical TOGAF 9 - ©Inspired 2008-2013

China Fortune Bank

Draft Migration Plan (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; Consolidate Core Systems on DB2 with Basel II compliant data
Availability of Basel Information model

Back end to support "Bank in a Box" Implement Messaging Interface to Core Systems

Implement Messaging and Brokering

Infrastructure

Implement ETL
Technology

Use ETL to create automated feeds to Basel

Consolidated Reporting Base Reporting

Basel Reporting for HO and Current Implement Reveleus and Congifure

Regions Reporting

Basel Reporting for Other Regions Configure 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)

Deploy Bank in a Box in China and UK

Rapid roll out in regions Deploy Bank in a Box in additional regions

Reduced Risk Ensure Networks are Secure
Business Continuity Implement Business Continuity Measures
Test and continually refine Business Continuity Capabilities

Investigate and
Choose Web
deployment
technologies

Reduced costs; increased

standardisation => flexibility Deploy web infrastructure in regions
 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)

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 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

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 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)

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 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.

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 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

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