Proposal for an Enterprise Business Architecture

1. Proposal for an Enterprise Business Architecture Denise Bedford Information Quality Revised February 19, 2007

2. Purpose & Overview • Purpose of the presentation is to: • propose a framework and strategy for aligning IT to business through the development of a business architecture • Hear the Architecture Committee’s advice on the value and feasibility of moving in the direction of a business architecture • Presentation Overview • Value of Business Architecture • Designing a Business Architecture • Business Process Management

3. Value of Business Architecture

4. Business Challenges • Business is facing: • Global business competition • Rapid innovation and fast-changing business requirements • Regulatory compliance challenges • Increasing cost pressures • Technology’s typical response • Slow delivery times • High maintenance costs • Brittle solutions • Stove piped functional applications • Redundant development efforts and operations • Redundant and costly investment in multiple technical solutions • Can technology be realigned to support the needs of business?

5. Aligning IT with Business • There is little disagreement within or outside the organization that we need to align information technology to support the business • We need to decide: • What we expect to achieve from the alignment and how will we measure it • What alignment means from a business and from an IT perspective • What strategy we will use to achieve the realignment • The decisions will be made at the enterprise level so there needs to be an enterprise context for the realignment • The realignment needs to support decentralized development and business evolution in the future – to achieve this we need a business architecture

6. Expected Results of Aligning IT with Business • How do we know this is not just the latest management fad? • Because it has practical applications which we can use to achieve our business goals and objectives • What are we trying to accomplish by shifting the role of information technology to an ‘enabler’ rather than a ‘driver’? • Define direct and derivative results of shifting our focus to a business view • What is required to implement a business architecture? • Alignment takes the form of a fully elaborated Business Architecture • What does it mean for how we work? • A four step plan is proposed for moving towards a business architecture involving business stewards, business analysts, technical stewards and data management team

7. Value of Business Architecture Focusing on supporting the business, and casting technology in an enabler mode, will generate direct and derivative results. Records Capture & Management Improvement Change Management Systems Interoperability Data Quality Control & Assurance Improvements Technical Informational Application Reuse Business Semantics & Sharing Business Optimization Process Optimization Financial Management & Control Business Impact Analysis Workflow Design & Support Role Management Business Intelligence & Benchmarking Direct Results Derivative Results

8. Business & IT Alignment - Direct Results • Direct Business Results include… • End-to-end business process analysis and adjustment (process optimization, improvement and simplification) • Alignment of resource management and analysis by business areas and with business goals (financial management and controls) • Pre-impact and pre-incident detection of business events and business targets, and the ability to assess the impacts and lead times in order to mitigate the business impact (business impact analysis and business continuity)

9. Business & IT Alignment - Derivative Results • Derivative Business Results include.. • Cross-organizational role discovery, provisioning and management based on common groups of privileges and permissions (increased effectiveness in role management and identity provisioning) • More effective and targeted benchmarking with peers and enable more efficient measurement, reporting and evaluation (business metrics and intelligence) • More efficient business processes based on automated workflows and business process management (workflow design and management)

10. Business & IT Alignment - Derivative Results • Technical Derivative Results include… • Smarter and rapid deployment/redeployment of new platforms and services, providing sufficient information to plan and manage the change cost effectively (change management) • Interchangeable functional component design through increased access to and reuse of technical resources (applications reuse) • Optimization of use of the organization’s technical resources by all contributors or consumers, regardless of location (systems interoperability)

11. Business & IT Alignment - Derivative Results • Data and Information Derivative Effects include… • More rigorous, visible and auditable records capture throughout business processes (records management) • Identification and management of quality control checkpoints and improvements in data quality and trustworthiness (information quality assurance) • Access to management information from a business perspective rather than an application perspective(business semantics)

12. Designing a Business Architecture

13. Designing a Business Architecture • In order to align technology with business, we need to design a business architecture • Business architecture includes: • Business framework to which all business definitions and models can be mapped • Business process management best practices for representing business processes which are manageable by business analysts, understandable to business managers and executable by developers

14. Current State – Business Framework • We don’t have a comprehensive view of the Bank’s business at this time, although we have a wealth of business knowledge and documentation • Current business definitions may be constrained to what single organizational units do and how they do it • May be variations on a process across the organization • Formal policies and procedures may not fully describe how work is done • May be gaps in coverage of some business processes • May be redundant descriptions of the same process which are not consistently maintained • May represent a technology view rather than a human workflow view • May not describe all of the resources that are required to support a business process

15. Current State – Business Framework • For example, there are currently several high level schemes in use throughout the Bank – • Accounting framework (Controllers’ – budget and expenditures) • Records management framework (BRCS, Archives Fonds – organizational history) • IT-Business framework (application-focused) • Business continuity framework (core processes and critical incident) • Business definitions in administrative, policy and procedures manuals (business operations) • Each scheme represents a resource viewpoint, though none serves as a baseline for comprehensively aligning resources to end-to-end busienss processes • We propose a new framework which will allow us to harmonize these views – this framework takes the form of an organizational business taxonomy

16. Business Framework Strategic Alignment and Aggregation Operations Financial Administrative & Corporate Lending Analytic and Advisory Activities Business Areas Lines of Business Project Identification Project Preparation Project Appraisal Project Negotiation Project Approval Business Processes Prepare AIS in SAP Prepare SMO Prepare PCN, PID, ISDS PCN Review Meeting ROC and/or OC review Business Subprocess and Tasks End to End Primary Business Activities

17. Bank’s Business Framework • Level 1: Business Areas • High level aggregation which distinguishes primary and support activities, and which is aligned with organization’s strategy and performance goals [Example: Operations] • Level 2: Lines of Business • Set of one or more linked business processes which collectively define a line of products and services [Example: Lending] • Provides a level of aggregation which is valuable for evaluation and monitoring but not sufficiently granular to enable business process management • Level 3: Business Process • End-to-end description of a process which is comprised of a series of steps or tasks that have defined conditions triggering its initiation and defined outcomes/outputs at its completion [Example: Project Appraisal] • Level 4: Business Subprocesses and Tasks • Individual tasks which make up a process, or a group of tasks which is enacted or called from another (initiating) process (or subprocess), and which forms part of the overall process [Example: Draft Aide Memoire]

18. How to Determine if it is a …..

19. How to Determine if it is …

20. Line of Business vs. Business Process • These terms are often used interchangeably in the business literature but it is important to distinguish them because • Line of business is generally one level above where we can do business process management effectively • Line of business is comprised of multiple business processes – each of which represents an end-to-end process • Let’s consider what would happen if we tried to do business process management at the Line of Business level

21. Business Processes • The framework provides us with a structure for harmonizing the Bank’s business knowledge, but we need to look at individual business processes for the detailed business knowledge that will help us achieve our goals • The top two levels of the framework (business areas and lines of business) provide us with a strategic view of the Bank’s business • The bottom levels of the framework (processes and subprocesses) provide the business knowledge needed to begin to design a business architecture and to support business process management • Let’s focus on Business Processes and Subprocesses in order to identify the kinds of business knowledge we need to support the business

22. Lending Line of Business Comprised of Linked Business Processes Business Processes Project Identification Project Preparation Project Appraisal Project Negotiation Project Approval • Prepare AIS in SAP • Prepare SMO • Prepare PCN, PID, ISDS • PCN Review Meeting • ROC and/or OC review (for projects high risks) • Draft PAD • PID • PAD-stage ISDS • Draft EA, RAP, IPDP • Minutes of PCN meeting • Minutes of QER • Decision mtg package • Minutes, PID, ISDS • SMO • Notice to Borrower • Draft Aide-memoire • Post-appraisal letter to Borrower. Steps & Subprocesses Lending Line of Business Lending Line of Business Application calls are Executed at this level Resources Allocated and Managed at these levels Process Variations are found and Improvements are made at these Levels Project Signing Project Effectiveness Project Supervision Project Completion Project Evaluation Line of Business level is too coarse to support process management goals and objectives

23. Business Process Management Best Practices

24. Business Process Management Best Practices • Business process management recommends that we: • Define internal best practices and guidelines to ensure that business process models are consistently developed (ARIS Framework) • Develop business models for processes, and inventory, register and publish existing business models (Business Analysts & Stewards working with IQ and IS teams) • Recommend standards-based modeling and execution languages to be used by developers for implementing business process models (OASIS – BPEL, WSDL, XSD) • Build a business architecture layer as part of enterprise architecture (SOA + BA) • Establish an enterprise governance process for business process management

25. Business Process Models • A business process should be represented as models of end-to-end sequence of tasks or subprocesses, which describe all of the inputs, outputs and steps/activities required to execute the process • ARIS framework provides us with a comprehensive view of a business process description • Working within the business framework, and leveraging the ARIS business processing modeling strategy, we can both harmonize across the organization and standardize our current business knowledge

26. Business Process Description Information Services Goal Information Services Other Services Other Services Environmental Data Material Input Material Input Financial Resources Financial Resources Business Process Steps & Subprocesses Result/Event Initial Event Message Org Unit Human Input/Output Machine Resources Computer Hardware Software Robust description of a business process includes all elements of the ARIS framework.

27. Business Framework and Business Process Management • Looking back to the value proposition, we need a level of business process description which will allow us to: • connect any system associated with the process • identify the people who support it • link financial resources • acknowledge but also cross organizational boundaries • identify compliance (financial, records) points • identify data and information quality control points • Identify common steps and subprocesses to simplify and reuse applications • provide managers with the capability to monitor the process for improvement and planning purposes

28. Metrics for Lending (Reg: 58% of Bank Budget): Cost (40%), Quality (19%), Volume (16%), Capacity (13%), Satisfaction (6%), Timeliness (6%). Business Process Project Identification Project Preparation Project Appraisal Project Negotiation Project Approval • Prepare AIS in SAP • Prepare SMO • Prepare PCN, PID, ISDS • PCN Review Meeting • ROC and/or OC review (for projects high risks) • Draft PAD • PID • PAD-stage ISDS • Draft EA, RAP, IPDP • Minutes of PCN meeting • Minutes of QER • Decision mtg package • Minutes, PID, ISDS • SMO • Notice to Borrower • Draft Aide-memoire • Post-appraisal letter to Borrower. • Negotiations Package • Formal Invitation to Borrower to Negotiate • Minutes of Negotiation • Summary of Negotiation • Status of Negotiation notice • Final Board Package • SCR & email to SECBO • Regional Pre-board mtg • Memo to MD • Pre-board meeting • Board Approval Activities • TL prep. PCN package and Sends to SM • TL prepares if applicable ROC and SM clears • TL prepares OC and SM, CD, RVP clear • TT prepares QER package • SM Clears • TL circulates • TL prepares minutes of QER and SM clears and Issues minutes • TT prepares package, SM and CD clear • TL prepares notice to Borrower and CD issues • TT prep. aide-memoire, TL signs & delivers • TL prep. post-appraisal letter SM-CL-CD clear • TT prepares and CD, SM, LOAG2, CC clear • TL prepares minutes and Lawyer, LOAG2, Leader of Borrower deleg. clear • TL & Leader of Borrower delegation sign • TL prepares Board pkg, SM-FO-LY-CD clear • Lawyer prepares SCR & signed by RVP, LEGVP, expert appointed by CG • TL prepares NB-Board Approval & lawyer clears Role & Resp • AIS, SMO, BTOR • PCN, PID, ISDS • Cover Memo, Note • Agenda • Minutes of PCN review • PAD, PID, ISDS • Safeguards Documents • Minutes of QER • Agenda • Email • Transmittal Memo • PAD,,PID, ISDS • Safeguards Documents • Legal Documents • Minutes, Agenda • SMO, Aide-memoire • Notice to Borrower • BTOR, Letter • Memo, PAD, MOP • Notice of Invitation • Letter of Invitation • Letter of Sector Policy • Letter of Development Program • Minutes • Transmittal memo • form 2337 , form 1767 • Board Doc Sub. Form • PAD, MOP, speech • Notice to Borrower • SCR Report • Form 14, Form152 • Speech Information SAP, IRIS, Passkey, Project Portal, Lotus Notes, Travel Web IRIS, Passkey, Project Portal, Lotus Notes, LAS SAP, IRIS, Passkey, Project Portal, Lotus Notes, LAS, Travel Web IRIS, Passkey, Project Portal, LAS, Lotus Notes IRIS, Passkey, Project Portal, LAS, Lotus Notes App W2K, Domino, Edge Server, HIS, Oracle, WebSphere, Lotus Notes, Siteminder, iPlanet, SAP, AIX, HACMP, EMC SRDF, EMC Timefinder TSM TDF, Tivoli Monitor, Telalert, Precise Luminate W2K, Domino, Edge Server, HIS, Oracle, WebSphere, Lotus Notes, Siteminder, iPlanet, SAP, AIX, HACMP, EMC SRDF, EMC Timefinder TSM TDF, Tivoli Monitor, Telalert, Precise Luminate W2K, Domino, Edge Server, HIS, Oracle, WebSphere, Lotus Notes, Siteminder, iPlanet, SAP, AIX, HACMP, EMC SRDF, EMC Timefinder TSM TDF, Tivoli Monitor, Telalert, Precise Luminate W2K, Domino, Edge Server, HIS, WebSphere, Oracle, SAP, Lotus Notes, Siteminder, iPlanet, Solaris, Sybase, Replication Server, WebServer, Print Archietcture. W2K, Domino, Edge Server, HIS, WebSphere, Oracle, SAP, Lotus Notes, Siteminder, iPlanet, Solaris, Sybase, Replication Server, WebServer, Print Archietcture. Technology Metric Time, Cost, Capacity, Vol Time, Cost, Cap, Vol, Quality Time, Cost, Cap, Vol, Quality Time, Cost, Cap, Vol, Quality Time, Cost, Quality

29. Metrics for Lending (Reg: 58% of Bank Budget): Cost (40%), Quality (19%), Volume (16%), Capacity (13%), Satisfaction (6%), Timeliness (6%). Business Process Project Signing Project Effectiveness Project Supervision Project Completion Project Evaluation • Notice of signing and signing ceremony • Notice to Borrower – signing • Signed Legal Documents • Notice to Borrower – Declaration of Effectiveness • Procurement process • Disbursement • Financial Management • Completion report identifying accomplishm- ents, problems, lesson learned. • OED assess what works and what does not and learn from the experience. Activities • TL sends an invitation On signing • TL prepares a notice to Borrower – signing and Lawyer clears • TL sends signed Legal • Documents to ACTCF • TL prepares a memo & letter and lawyer clears • CD signs and sends Letter to Borrower • Borrower prepares specs and evaluates bids. • Ps ensures procurement • Disbursement Officer authorize to withdraw fund • FM maintains oversight of the FM project • Borrower submits a completion report to the Bank Board of EDs • OED staff assesses the project and sends to CD, SM, SD, TL, etc. Role & Resp • Notice of Signing • Legal Documents • Notice to Borrower • Email • FAX • Memo • Notice to Borrower-letter • Email • Bid documents, • Contract • Bid evaluation report • Minutes of bid opening • Cost estimate sheet • Technical &/or financial evaluation report • FM Reports/Docs • Report that contains accomplishments, problems, lessons learned • OED evaluation report. Information IRIS, Lotus Notes, Passkey IRIS, Lotus Notes, Passkey IRIS, Passkey, Project Portal Client Connection, LAS, Extranet, Lotus Notes IRIS, Project Portal, Lotus Notes, Passkey Intranet, Lotus Notes, Passkey App W2K, Domino. W2K, Domino. W2K, Domino, Edge Server, HIS, WebSphere, Oracle, SAP, Lotus Notes, Siteminder, iPlanet, Solaris, Sybase, Replication Server, WebServer, Print Archietcture. • W2K, Domino, Edge Server, • HIS, WebSphere, Oracle, • SAP, Lotus Notes, • Siteminder, iPlanet Edge Server, IHS, WebSphere, Oracle, SAP, Siteminder, iPlanet, Lotus Notes Technology Metric Time Time Time, Cost, Cap, Vol, Quality Satisfaction Quality

30. Metrics for Travel (Bank Wide: Over $ 200M in FY-05): Cost Effectiveness – Get Best Results with available Funds Travel Planning Travel Transacting Travel Controlling Travel Monitoring – Specific Trip Travel Monitoring - Unit/VPU Business Process • Planning at Budget Level • Planning Specific Trip • Before the Trip • After the Trip • Pre-Trip Controls • Post-Trip Controls • Monitoring Specific Trip • Monitoring Specific Unit/VPU Activities • Budget Analysts/Officers forecast travel expenses • Traveler makes Reservation and enters Trip information into the Web Travel • Traveler contacts A. Exp • AM approves the trip • A. Exp receives Notice and issues the ticket • Traveler enters expenses • TCS is sent to Manager • AM approves the trip • Ex Ante Controls: verify cost assignment, explanation of exceptions, PCard Usage, etc. • Ex Post Controls: trip is approved, traveler sends receipt to ACT. • Traveler can use the Web Travel System to monitor the status of trip request as well as sub- sequent expense reimb- ursement request • Budget Analysts/Officers use the SAP Cost Report or Administrative Expense Report to monitor travel expenses Role & Resp. • Travel Authorizations • Travel Advisory services and guidelines • Trip Document created In travel web system • Reservation – itinerary with American express • Itinerary • VISA • Ticket • BTOR • Travel Expense Postings • Trip Document • PCard • Receipt • Display Trip • Print/Simulate Trip • My Trip Summary Report • Outstanding Trip Claims Report • Travel Expense Exception Report • Budget Summary Repor • Operational Mission Summary Report Information Online Reservation system, Travel Web, Passkey, Notes Travel Web, SAP, Passkey, Notes SAP, Travel Web, Passkey SAP, Travel Web, Passkey SAP, Travel Web, Passkey App W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert, Edge Server, IHS, WebSphere, Lotus Notes W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert, Edge Server, IHS, WebSphere, Lotus Notes W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert, Edge Server, IHS, WebSphere W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert, Edge Server, IHS, WebSphere W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert, Edge Server, IHS, WebSphere Technology Metric Cost Effectiveness Cost Effectiveness Cost Effectiveness Cost Effectiveness Cost Effectiveness

31. Metrics for HR Management: OPE, Performance Award, Award for Excellence, Time, learning Recruiting & Staffing Staff Performance Staff Payment Staff Benefits Query-Imaging & Career mgt Business Process • Job Information • Agency Recruitment • Consultant & Staff app. • YP/JPA Recruitment • HARP Retiree • E-recruitment • Leave and Attendance • TAX Computation • Staff Learning/Training • Parking, health services • Pension • Benefits Administration • OPE Performance Mgt • Performance Awards • Awards for Excellence • Payroll • Staff Receivable • Time Recording • Post Allowance • HR Query • HR Imaging • HR Kiosk • Internal Communications Activities • HR officer prepares • Staff prepares • Staff prepares OPE, Manager approves • Manager prepares and approves performance awards, awards for excellence • Staff prepares • Staff Role & Resp • HR Forms • HR Forms • HR Forms • HR Forms • HR Forms Information App • Job World • CATS • YP System, JPA • FARP Retiree System • eRecruit • LARS, TAX Kiosk • LMS, Parking System • HR Ben • Pension, Passkey • NextGen Healthcare IS • OPE • Performance Awards system • Awards for Excellence system • Payroll System • Staff Receivable Syst • TRS • Post Allowance Syst • Yournet • HR Query • HR Imaging • HR Kiosk W2K, Domino, W2K, IIS5, ASP, Oracle, Edge Server PeopleSoft, Solaris, WebSphere, IHS, Oracle, SAP, Edge Server, AIX, Oracle, W2K, oracle report Server, ASP, Web W2K, Domino, PeopleSoft, ASP, Oracle, Power Builder PeopleSoft, Solaris, WebSphere, IHS, Oracle, SAP, Edge Server, AIX, Oracle W2K, Domino, W2K, IIS5, ASP, Oracle, Edge Server Technology Time OPE, Perf. Award, A for Exc Time Time learning Metric

32. Current State – Business Process Models • Current status of business process modeling.. • Business process models exist for some business processes but they are represented at varying levels of detail, quality and focus • In other cases, business processes are described as documentation (business procedures, administrative manuals, operational procedures, etc.) • For some processes, there are neither models nor procedural documentation • Recommend that as business analysts work with clients, they conduct a systematic inventory of business process models to… • Identify what exists and what is needed to harmonize it • Identify gaps in existing processes • Determine what is needed to fill the gaps

33. Business Process Model Registry • Design an enterprise level repository for business process models consistent with enterprise architecture best practices • Establish a registration and review process for all business process models which is consistent with the Business Architecture governance model • Empower business analysts to: • Discover and inventory existing business process models • Identify redundant models • Identify variations in practice • Identify and link models that describe steps or subprocesses in the same business process • Identify business processes which are not described by BP models

34. Standards-Based Modeling and Execution Languages • Business architecture is implemented in degrees – it is possible to achieve a level of interoperability without having a fully deployed SOA if consistent business semantics are used across applications • However a fully developed business architecture presumes a cross application, business-oriented service oriented architecture which is grounded in standards • Although the standards are not yet widely adopted, some major application vendors are supporting OASIS: • BPEL for defining process flows • WSDL for defining the interfaces to services used by the process • XSD for defining the XML data structures used by the process

35. Establish Business Architecture Governance Model • Because the business architecture has such high value to the organization, it needs to be managed at the enterprise level • Because the business architecture is cross-organizational and cross-applications, roles and responsibilities associated with building and sustaining it need to be clearly defined and supported • We have proposed a governance and stewardship model which identifies and describes four roles and responsibilities, including: • Business stewards at all three levels of the framework (Business Area, Business Lines, Business Processes) • Information Quality/Data Management Program • Business Analysts • Technical Custodians

36. Governance & Stewardship