1. Information FrameWork (IFW) - A Business Reference
Architecture framework for Banking and Financial Services industry
Prepared By
Ravi Sarkar
Solutions Architect/ BPM and Connectivity
Prolifics| 114 west 47th St, 20th Flr|NY 10036
2. ABSTRACT
Information FrameWork (IFW) provides the architectural foundation and framework
for a set of models developed to support agile, component-based IT systems.
Although these models were aimed primarily for the Banking, Finance and Securities industry
sector within IBM, the ideas and principles behind the architecture and the model have
much wider applicability.
The Information FrameWork (IFW) was built upon, but moved away from, the ideas presented
by John Zachman in his Framework for Information Systems Architecture now known asby John Zachman in his Framework for Information Systems Architecture now known as
Zachman Business Architecture Framework.
3. Challenges of Financial Industry in a nutshell
Agility and Change Management
Frequent changes to gain business competitiveness
Compliance to Regulations
(Dodd Frank Bill for Financial Services Industry, SOX compliance etc.
Business Transformation
IFW is designed to address all of the above challenges
4. Challenges in Banking and Financial Services Industry Contn…
Banks are challenged with the pace of changes, mergers and acquisitions resulting in
disparate systems, the introduction of channel architecture, the development of
technologies such as internet banking and telephone banking, the introduction of insurance
products into the branch network, and the shift in focus from transactional systems to
customer facing systems (e.g. operational single view of customer) have all
brought about extensive changes in the way financial services organizations Operate.
By necessity, stand-alone solutions have been developed, supported by an array of
Individual processes and procedures which often mimic and duplicate each other, but are
sufficiently disparate to cause cost and training issues for the financial services organization
compounded to the problem.
Adding new regulatory components (e.g. Basel II Accord and Sarbanes-Oxley Act) to this
Scenario compounds the change management issues, and makes it harder to accomplish
business objectives within a reasonable timeframe and at a reasonable cost.
5. Successful Business Transformation with IFW Process Models
The secret to success is the adoption of a top down strategic approach to the
transformation of the business that is not constrained by specific technology, particular
products or channels or organizational structure.
Such a transformation would be a daunting task if undertaken against a blank canvas, and in
reality would probably not succeed by virtue of the amount of management input needed
and the overall elapsed time to achieve results.
The IFW Process Models are a content rich set of models designed specifically for financial
services organizations. The models represent “leading practice”, and have been validated
through use with many of the world’s leading financial services organizations over several
years. They have been enhanced and extended so that the models are aligned with the
requirements for risk and compliance and STP payment solutions.
The IFW Process Models can be used for a number of different initiatives:
Business Transformation (e.g. BPR for post merger/acquisition integration, process
centralization and process outsourcing)
Regulatory Alignment (e.g. Basel II Accord, Sarbanes Oxley, SEPA and Reg NMS)
Process Automation (e.g. the creation of efficient STP payments or account opening
processes amenable to automation )
6. IFW as an Enterprise Architecture
Framework in a nutshell
Interlinking of this will be explained in the presentation……
7. Information FrameWork EVOLUTION
The ISA framework (more popularly known as the
Zachman framework) helps to understand and classify
the components that make up an individual
application or “system”.
Zachman defined information systems architecture in
two steps: firstly “by creating a descriptive framework
from disciplines quite independent of information
systems”, then specifying “information systems
architecture based upon the neutral, objective
framework”.
Information Systems Architecture (ISA) framework
consisted of SIX columns (for data, process, network,
The Zachman Framework
consisted of SIX columns (for data, process, network,
people, time and purpose descriptions respectively),
and five rows, making a 30 cell grid structure.
Shortcomings of Zachman Framework
Deficient in showing IT components in a business
context, and the business context in a broader
management or organizational context.
Deficient in simplifying the development of an
enterprise architecture by providing an industry
reference architecture.
Deficient in managing the complexity of change across
many interlinked and interdependent pieces.
Lacking in component-based design, managing
complex changes and reusability.
8. Objectives, Focus and Approach of the Information FrameWork (IFW)
1. Development of information assets designed for reuse
2. Techniques for classifying information assets
3. Viewing systems development from a fully integrated, holistic, perspective, that covered both
the business and the technology perspectives.
The reference models and patterns defined in IFW are used to ensure that each step on the
transformation process adds architectural value.
9. IFW was designed to accommodate a variety of different approaches or methodologies providing
a comprehensive structure to manage architectures. Research suggests five different approaches for strategic
information systems planning (SISP).
The five different approaches for Strategic Information Systems Planning (SISP) are:
IFW covers this approach through the Business
View.
IFW provides a number of Routemaps which describe
Business-Led - where the emphasis is on the business
leading change through business plans and needs, rather than
being technology driven.
Method-Driven - where the emphasis is on selection of the
IFW supports Strategic Information Systems Planning
IFW provides a number of Routemaps which describe
methodological routes or pathways through the
framework.
The IFW structure in total supports administration
of resources, with explicitly defined responsibilities
for governing these resources.
IFW covers this approach through the Business
and Technical Views.
IFW covers this approach through the Organization
View.
Method-Driven - where the emphasis is on selection of the
“best”, formal method.
Administrative - where the emphasis is on identification
and allocation of resources to meet agreed needs within the
firm’s rules, management planning and control procedures.
Technological - where the emphasis is on the production of
models and blueprints, and planning is regarded as an
exercise in business and information modeling.
Organizational - where the emphasis is on organizational
learning about business issues and information technology
contribution, and planning is seen as a continuous decision-
making activity the shared by the business and information
systems.
10. Reusable IFW Assets Drive Tangible Benefits
• IFW contains industry content that has been proven on
hundreds of client engagements, and reflects over
400,000 hours of real world experience
• Models support the latest risk and reporting
requirements
• Significant savings on project analysis and design
phases.
• Reduces project risk by employing proven content
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• Reduces project risk by employing proven content
and approaches, expressing issues in business terms,
and defining scope in manageable phases
• More to be added …….
11. Information FrameWork (IFW) Assets
The IFW models provide pre-defined
financial services specific templates to
accelerate project analysis and design
•IFW Process Models provide approximately 80% of
the content required for process re-engineering.
•The IFW Data Models accelerate data warehouse
design for compliance, risk management,
regulatory reporting, CRM, profitability and asset &
liability management.
•IFW Integration Models leverage the IBM software
solutions to accelerate the analysis and design of
services and components for SOA solutions
through the customizable service and class
models.
•The IFW models provide pre-defined financial
services specific templates to accelerate project
analysis and design
12. IFW Value Chains
The IBM Information FrameWork (IFW) uses the concept of Value Chains to represent key line of
business functions that are supported by a set of long running business processes.
Value chains are composed of a set of chevrons, each chevron represents a phase
of processing which results in the change of state in the acquisition, creation and consumption of
resources for the creation of wealth or value.
One or more long running processes occur within a single chevron.
Listed on the Value Chains are a partial subset of the recommended IFW Process Model “To Be”
templates.
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Chevron
Operational, Credit & Market Risk Management
Monitoring, Control and Customer Insight
Identify Maintain Service TerminateVerify Establish
Identify Potential Customer
Identify Customer
Identify Involved Party from Role
Recommended IFW Process Model “To Be” templates
14. IFW Lending context
Administer Review SettleOfferPropose Activate
Provide Loan Arrangement Offer
Apply Lending Policy
Determine Product Conditions
Review Offered Arrangement Status
Provide Loan Disbursement
Modify Arrangement Service Frequency
Administer Repayment Collection
Provide Interest Rate Change
Provide Arrangement Statement
Modify Involved Party Details
Administer Dispute Resolution
Settle Loan Arrangement
Administer Business Account Closure
Administer Arrangement Termination
Administer Legal Collection
Determine Arrangement Profitability
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Provide Arrangement Proposal
Gather Customer Details
Compare available PD details with Cust. Reqs.
Review Proposed Arrangement Status
Activate Loan Arrangement
Acquire Security
Open Business Account
Activate Customer
Review Loan Arrangement
Record Payment Performance History
Review Loan Portfolio
Schedule Past Due Communication
Modify Arrangement Condition
Administer Arrangement Suspension
Operational and Credit Risk Management
Monitoring, Control and Customer Insight
Determine Arrangement
Profitability
Generate Credit Risk Report
Generate Operational Risk Report
Review Arrangement Safeguard Collateral
Provide Past Due Communication
15. A framework of related business models, describing different aspects of the analysis
and design required to support a financial institution
IFW FOUNDATION MODELS
FSDM FSFM FSWM
IFW DATA
MODELS
BDWM
IFW PROCESS &
INTEGRATION MODELS
IFW PROCESS MODELS
The Information Framework (IFW) Building Blocks
IFW FOUNDATION MODELS:
SCOPING AND DEFINITION OF BUSINESS TERMS
IFW PROCESS MODELS:
DETAILED ANALYSIS OF BUSINESS PROCESSES
IFW INTEGRATION MODELS:
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BSTs
FS-BOM
FS-IDM
ANALYSIS AND DESIGN OF REUSABLE SERVICES
IFW DATA MODELS:
ANALYSIS AND DESIGN OF DATA WAREHOUSE AND DATA MARTS
16. IFW Process Models Relationship Triangle
•The Financial Services Data Model (FSDM)
•The Financial Services Function Model (FSFM)
•The Financial Services Workflow Model (FSWM)
There are three
individual Models that
make up the IFW
Process Models-
17. IFW Financial Services Data Model (FSDM)
FSDM is an enterprise-wide classification model. It
provides an enterprise-wide view of the concepts
and information within the bank and forms the
basis of an enterprise-wide information
architecture. The fundamental purpose of the
FSDM is to enable business concepts to be clearly
understood and communicated and as a result
help accelerate project scoping.
How the FSDM is used:
Managing the Enterprise Data Resource
Agreeing on the scope of an initiative or
application
Carrying out impact and gap analysisCarrying out impact and gap analysis
Deriving logical specifications
Data warehouse planning
Benefits of the FSDM:
-Provides a predefined, readily customizable
enterprise data model.
-Provides enterprise-wide definitions of concepts
and data.
-Forms part of a common language between
business and IT
-Provides a rapid and accurate scoping tool for
new initiatives - saves time and cost.
-Reduces data redundancy by providing
transparency as to the meaning of data items.
-Encourages re-use and consistent data structures
across the enterprise
18. Information FrameWork (IFW)Information FrameWork (IFW) Application ArchitectureApplication Architecture
Design Implement
INTERFACE LAYER
PROCESS LAYER
IFW alignment with simple Application Architecture
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Enterprise Definition &Enterprise Definition & Design…… toto …Rapid Solution Implementation…Rapid Solution Implementation
Design Implement
Design Implement
Design Implement
PROCESS LAYER
SERVICES LAYER
DATA LAYER
19. Service Oriented Architecture is based on a 3-layer model of “components”,
“services” and “processes”
BUSINESS PROCESSES
INTEGRATIONARCHITECTURE
(ENTERPRISESERVCIEBUS)
QoS,SECURITY,MANAGEMENTANDMONITORING
(INFRASTRUCTURESERVICES)
LONG RUNNING
INTERRUPTABLE
INTERRACTIVE
HUMAN AND SYSTEM ROLES
ALTERNATIVE FLOWS FOR NON STANDARD CONDITIONS
SHORT TERM
NON-INTERRUPTABLE
SERVICE
CONSUMER
Layers of SOA
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SERVICES
COMPONENTS
NEW / EXISTING APPLICATIONS AND RESOURCES
INTEGRATIONARCHITECTURE
(ENTERPRISESERVCIEBUS)
QoS,SECURITY,MANAGEMENTANDMONITORING
(INFRASTRUCTURESERVICES)
NON-INTERRUPTABLE
SYSTEM ROLES ONLY
LOOSE COUPLING
COLLABORATIONS OF FINER GRAINED
SERVICES
PERFORMANCE FAVOURED ABOVE
LOOSE COUPLING
SERVICEPROVIDER
SERVICE
CONSUMER
20. IFW models provide the Financial Services Specific content to accelerate SOA
development using business definitions to maximize business benefit
BUSINESS PROCESSES
SERVICES
INTEGRATIONARCHITECTURE
(ENTERPRISESERVCIEBUS)
QoS,SECURITY,MANAGEMENTANDMONITORING
(INFRASTRUCTURESERVICES)
SERVICE
CONSUMER
IFW Processes
IFW Accelerates SOA
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COMPONENTS
NEW / EXISTING APPLICATIONS AND RESOURCES
INTEGRATIONARCHITECTURE
(ENTERPRISESERVCIEBUS)
QoS,SECURITY,MANAGEMENTANDMONITORING
(INFRASTRUCTURESERVICES)
SERVICEPROVIDER
IFW FS-IDM
IFW FS-BOM
BDW & FSDM
21. The IFW Process Models contain pre-built processes and tasks that cover all the main customer
facing activities.
Many of the IFW processes need to retrieve full customer details as part of their processing and
this example shows how IFW can support this requirement.
Retrieve Customer Details
One step downstream, the process activity is expressed as a Use Case
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22. The Business Scenario – UML Class Model and Use Cases to Support Processes
Each step in the IFW Process model that has been identified as an automated
step (or service) is represented by an IFW Use Case. The Use Case contains data inputs
and
outputs. Each data input and output is fully defined in the IFW UML model.
IFW Use Case – Retrieve Full
Customer Details
IFW UML Model – Involved Party
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Customer details are fully defined and attributed in the
Involved Party area of IFW UML model
23. The Business Scenario – Services Support the Use Cases
Each IFW Use Case becomes a Service. The Retrieve Full Customer Details Use Case
becomes a Service called retrieveFullCustomerDetails. The Service input and output
definitions are taken from the IFW Use Case.
IFW Use Case – Retrieve Full
Customer Details
IFW Service - retrieveFullCustomerDetails
retrieveFullCustomerDetails Service
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retrieveFullCustomerDetails
input and output parameters
24. The Business Scenario – Define Collaborations Based on the Use Cases
The internal logic of an IFW Use Case can be expressed in terms of finer grained re-
usable
services which are represented using the IFW collaboration diagrams. This provides
the optimal granularity of services and enables maximum service reuse.
IFW Use Case Detail – Retrieve Full
Customer Details
Retrieve Full Customer Details – Collaboration
Diagram
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25. WebSphere Banking Content Packs Assets
Key Components of Reference
Architecture for Websphere
Industry Content Packs
Industry Capability
Models
Industry Process
ModelsModels
Industry Service
Models
Industry Common
Components
Industry Business
Vocabulary
Industry Business
Object Models
Industry Solution
Scenarios
27. WebSphere Banking Content Packs Component details
Framework of components in the WebSphere Industry Content Packs
The WebSphere Industry Content Packs aim at accelerating the delivery of industry BPM solutions using
the WebSphere Business Process Management offering. The framework of components in the WebSphere
Industry Content Packs is a logical expansion of a service-oriented architecture (SOA), which promotes loose-
coupling of assets for consistency and reuse across business processes.
Industry Capability Models
This asset is used to provide a hierarchical view of business capabilities and business processes used in an
industry.
Industry Process Models
Industry Process Models are used to expose the application scenarios using well-defined process flows.Industry Process Models are used to expose the application scenarios using well-defined process flows.
Industry Service Models
The Service Models are used to aid interoperability across diverse platforms for an industry. These Service
Models are based on industry standards that provide messaging schemas, which are then used to define
the Service Models.
Industry Common Components
The Common Components includes common services that can be used as-is or can be extended to enable
transactional functions.
Industry Business Vocabulary
This asset is used to provide more information about the relationships between industry-specific terms.
Industry Business Object Models
This asset is derived from industry standards and serves as an input to the logical data model for a business
domain.
Solution Scenarios
The Solution Scenarios provide a starting point for Proof Of Concept (POC) and solution delivery.
28. Why License the IFW Models?
Significantly Reduce
Project Risk
Optimise re-use across
business process and
supporting IT services
Ensure quick start based
on pre-built models
Benefit from experience
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Significantly reduce
analysis and design time
and effort while
improving quality
Benefit from experience
of, and lessons learned
by, other customers who
are also using the IBM
Models
Benefit from experience
and a defined roadmap
and approach to
successful SOA projects
Benefit from a proven
models and tools
approach supporting the
path from analysis
through design to
implementation
Reduce chance of
project failure –
maximize chance of
project success
In the next few slides each of these items are elaborated
29. Significantly Reduce Project Risk
•Use of tried and tested “outside” models will minimize contention and enable more speedy
decisions
Difficulty getting agreement across organizational, product and
channel boundaries (politics)
Difficulty tying down Business Requirements and getting
alignment between Business Processes and supporting IT
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•Using well structured and fully defined models – across Function, Data, Process and Services
(Object / Components)
•For example, Activities in the Process Models are expressed as Use Cases in the Object (UML)
Models, and are mapped to each other.
alignment between Business Processes and supporting IT
Services
•IFW provides this best practice blueprint for banking and financial services
Rationalization / Simplification projects such as those at
Citigroup require standards and an enterprise “blueprint” to
ensure re-use and cooperation across project teams
30. Optimize re-use across business process and supporting IT
services
•For example the IFW Process Models provides:
•27 Major Processes
•250 reusable workflows
•1600 Activities and 2100 triggers
•All are fully defined and customizable with support and designed to promote
reuse
Re-use for Process Modelling requires standards and agreed set of fully
defined building blocks to ensure re-use across project teams.
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•All are fully defined and customizable with support and designed to promote
reuse
•The IBM Process and Object models are linked and complement each other
•Every use case in the IFW Object Model is derived from an Activity in the IFW
Process Model with traceability between then
•Consistent naming and definitions are used where applicable
•This means that there is a quick and easy way to link the activities selected in the
process design, and which are appropriate for automation or supporting by a
service through to the appropriate use case in the object model.
Business Process design is normally handled within the business unit or by a
business support group - there needs to be a way to tie this process work and
its results to IT Services Analysis and Design.
31. Ensure quick start based on pre-built models
•Build your own while doing the projects
•License a customizable model such as IFW
An enterprise blueprint or model is required to achieve
reuse on SOA projects, choices are:
For an organization to build its own models to the strength andFor an organization to build its own models to the strength and
completeness of the IBM models, we estimate it would take
between 20 and 100 person-years of effort. There are about
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between 20 and 100 person-years of effort. There are about
500 person-years of experience in the IFW/IAA models
currently.
Risks inherent with building your own include distractions from
the core task at hand, delivering standardized processes and
supporting services.
Organizations who take the IBM models can immediately start
using them on projects and gain all the benefits
Saves by other customers include up to 18 months in project
re-work and project start up times, and in avoiding project
realignment and restarts
32. Significantly reduce analysis and design time
and effort while improving quality
•Savings of 40% to 50% in analysis and design time across projects
•while improving quality
•and maximizing re-use across business processes and IT services.
Experience from other projects indicated:
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•In addition to this - significantly minimized the need for re-work
50% saving applies across analysis and design of both
Processes and Services
This will rise to 70% or greater as experience is gained and
significant reuse is experienced across future projects.
33. IFW Value Proposition Summary
•proven approach and methodology•proven approach and methodology
•proven business content and tools integration
Risk Reduction - value = up to
10% of overall project cost based
on
•Based on experience from a number of projects•Based on experience from a number of projectsProcess analysis and design
savings - value = 40% saving in
this effort
•Based on experience from a number of projects•Based on experience from a number of projectsSavings in Use Case analysis and
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•Based on experience from a number of projectsSavings in Use Case analysis and
design effort - value = 50%
saving in this effort
•Experience shows that lack of models and consistency•Experience shows that lack of models and consistency
of approach leads to significant rework and lack of
reuse in both initial development and post-
implementation support
Saving in AD rework and reuse –
saving of at least 20 % of this
effort
•Savings in development of models – harvesting from
work – saving = 4 FTEs over 3 years (average)Additional item:
Note: Experience from various IBM customers indicated that increased benefits, reduced risk, and rates of
savings grow as more projects use IFW.
