04-04-08

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Enterprise Payments : 

Enterprise Payments Peter Cunningham Chief Technology Officer Global Financial Services

Managing Payments as a Business : 

Managing Payments as a Business The majority of respondents (banks, intermediaries, networks) believe that an enterprise view of payments is necessary to ensure future payments profitability “Silos of business units are drivingdecisions that are being made onwhat’s good for them versus what’sgood for the bank.” “Payment strategy decisions shouldbe based on the net impact to the shareholder as opposed to an isolatedsilo process.” All banks realize the “inherent conflictbetween the retail bank, which wantsnew products and capabilities and triesto measure soft value, and transactionsservices,who are charged with getting[the payment] operation down to thelowest possible unit cost.” Source: Retail Payments Study

Changing Landscape of Enterprise Payments: Retail Payment Study : 

Changing Landscape of Enterprise Payments: Retail Payment Study Premise Payments represent up to 33% of total bank revenues and 40% of operating costs; bank payment revenues are at risk as margins are squeezed and consumer behavior changes Key questions How will current payment practices, volumes, and revenues shift over the next 12-36 months? What new revenue opportunities will evolve? What risk factors and competitive initiatives will impact my retails payments business? What legacy infrastructure and new investment will be required to support the future retail payments business? What competitive business strategy will successfully enhance my payments business over the next 12-36 months? Source: Retail Payments Study

Redundant Payment Applications Substantial Cost (Current Environment) : 

Redundant Payment Applications Substantial Cost (Current Environment) Wire Data R & L Data Credit Card Data ACH Data Check Data S.W.I.F.T. Data Redundancies (supporting applications, reconciliation, customer service, sales channels, management, and technology and integration) require increased cost, provide little value to the customer, and generate no bank revenue WireProcesses & Applications R&LProcesses & Applications Credit CardProcesses & Applications ACHProcesses & Applications CheckProcesses & Applications S.W.I.F.T.Processes & Applications Retail Payments

Looking Ahead : 

Looking Ahead Preparing for Truncation and Check 21 Branch Image Capture will have different flavors Need for Aggregation of Payments Straight-thru-Processing (STP) Fraud and Risk Management Paper based payments will move to utilities

Making Payments Information a Shared Enterprise Asset : 

Making Payments Information a Shared Enterprise Asset Common data formats and standards allow cross-LOB/enterprise sharing Payments information is a fully utilized enterprise asset Enterprise view of customer payments information Complete capture and storage of valuable payments information Goal Identify Find Collect Scrub Validate Provide Enterprise Shared Transaction Amount Customer Address Customer Name Customer Phone Number Customer SSN Merchant Category Code Transaction Date Payee Name Channel/Payment Type Account Number Specific for Smaller Business Set Special Needs Over 100 Data Elements Across 20 Businesses Source: Woody Tyner – BB&T, 2003

An Integrated Solution : 

An Integrated Solution

Delivery Phase I – Integrated Payment View : 

Delivery Phase I – Integrated Payment View Wire Data R & L Data Credit Card Data ACH Data Check Data S.W.I.F.T. Data Presentation of payment data as though the data were integrated provides a holistic view across the enterprise WireProcesses & Applications R&LProcesses & Applications Credit CardProcesses & Applications ACHProcesses & Applications CheckProcesses & Applications S.W.I.F.T.Processes & Applications All Payments Engine Linking Together Islands of Automation

Delivery Phase II – Integrated Payment Data : 

Delivery Phase II – Integrated Payment Data Wire Data R & L Data Credit Card Data ACH Data Check Data S.W.I.F.T. Data Consolidation of siloed payment data into a common database reduces expense and provides basis to eliminate redundant processes WireProcesses & Applications R&LProcesses & Applications Credit CardProcesses & Applications ACHProcesses & Applications CheckProcesses & Applications S.W.I.F.T.Processes & Applications All Payments Engine

Delivery Phase III – Integrated Payment Processing : 

Delivery Phase III – Integrated Payment Processing Wire Data R & L Data Credit Card Data ACH Data Check Data S.W.I.F.T. Data Payments routed through best existing processes and plug-in components leverages existing systems and allows elimination of non-optimal systems WireProcesses & Applications R&LProcesses & Applications Credit CardProcesses & Applications ACHProcesses & Applications CheckProcesses & Applications S.W.I.F.T.Processes & Applications All Payments Engine Virtual Integrated Processing Best Practices

Unisys Business Blueprinting ApproachCreating a Payments Factory : 

API’sViewerSecurityBusiness rulesData Unisys Business Blueprinting ApproachCreating a Payments Factory Reformat All Payments Database Switch Securely Transport Recipients of Output Financial Management Applications Transaction Processing Clearing & Settlement Product Accounting Reformat

Payment Information Engine : 

Payment Information Engine Cornerstone of the Unisys “transformation business” for Enterprise Payments Focus is on high-volume, mission-critical payment information Storage, retrieval, and product/service/information delivery Designed to support flexible and highly resilient implementations Clients benefit and profit from our worldwide experience in supporting truncation

3D Visible Enterprise : 

3D Visible Enterprise How do we do it

Slide 14: 

The next generation business and systems modeling architecture that integrates business vision and IT execution… …to drive Organizational Agility. What is 3D Visible Enterprise.

3D Blueprints for Alignment and Agility. : 

3D Blueprints for Alignment and Agility. A 3D Blueprint is a set of traceable and deployable models for domain-specific business processes and problems… …3D Blueprinting is the use of standard methods, tools, and techniques to establish descriptive modeling and engineering best practices. The Goal: Alignment and Agility. Intellectual Property that can be understood, modified, and easily manipulated, with clear linkage to the impacts on the underlying system implementation.

3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. : 

BUSINESS ARCHITECTURE SERVICES-BASED TECHNICAL ARCHITECTURE 3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL

3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. : 

Characterization of business domain – including business objectives, structure, organizational measures, and competitive framework BUSINESS ARCHITECTURE SERVICES-BASED TECHNICAL ARCHITECTURE INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL 3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution.

3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. : 

BUSINESS ARCHITECTURE SERVICES-BASED TECHNICAL ARCHITECTURE INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL 3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. Characterization of the operational requirements and key business processes

3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. : 

BUSINESS ARCHITECTURE SERVICES-BASED TECHNICAL ARCHITECTURE INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL 3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. Key Business functions implemented as a set architectural models (UML) representing core business services

3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. : 

BUSINESS ARCHITECTURE SERVICES-BASED TECHNICAL ARCHITECTURE INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL 3D BLUEPRINTS: Inter-linked Models, from Strategy to Execution. Characterization of the deployment services and technologies to realize the business objectives. Key Functional Services (Web Services) that are provided to all applications in the organization (Security, Network, Application Server, Data Services, Integration Services, Administration)

How Do We Do 3D Blueprinting? : 

How Do We Do 3D Blueprinting? Standard methods, tools, and techniques have been selected for 3D Blueprints… …standardization that establishes descriptive modeling and engineering best practices to provide traceability and alignment. Business Vision & Operations Model Applied Transformation Methods, Architecturally-Informed Strategy, Workshops, ProVision Business Process Model & PatternsProVision, UML, BPEL Functional & Application Model Unified Modeling Language (UML), Rational Enterprise Suite, Rational Unified Process (RUP), ETS Reference Application Architecture, CostXpert Infrastructure Model UML, SystemFlow, GIS Infrastructure Reference Architecture, Rational Unified Process (RUP)

Business and IT alignment : 

Business and IT alignment Aligning business and IT – semantic relationship between the layers Traceability Technology evolution and emergence of standards allow the alignment between business and technology to be modeled and quantified This allows for defining traceability between all layers and hence across the business. Traceability is the backbone for maintain and managing the alignment between business and IT. INFRASTRUCTURE MODEL FUNCTIONAL & APPLICATION MODEL BUSINESS PROCESS MODEL & PATTERNS BUSINESS VISION & OPERATIONS MODEL If you can’t trace it you can’t predict the impacts of change!

Traceability provides impact analysis across all components of the operating enterprise : 

Traceability provides impact analysis across all components of the operating enterprise We need to offer additional retail products. What will that cost be to offer a new product in geography ‘A’ What processes will be impacted where new products are offered to customers? How many people need to be trained? What would be the impact of additional work load ? What applications are impacted by new product definitions? What information entities may require additional attributes? How much will it cost to create new supporting components? What additional capacity is required to handle additional throughput? What additional capacity is required for additional storage? How many new products or geographies can be supported?

The underlying Business Blueprint enablers: traceable artifacts, all the way down… : 

The underlying Business Blueprint enablers: traceable artifacts, all the way down… 0- Introduction          Executive summary and application overview 1- Business Modeling  Business Interaction Diagram Swim Lane Process Workflow E-R Diagrams CRUD Matrix Process Simulation Business Vision Business Glossary Business Use-Case Model Business Use-Case Specification Business Object Model 2- Requirements          System Vision Document System Glossary Supplementary Req Specification Use-Case Model & Specifications Use-Case Story Board User Interface Prototype Software Requirements Specification 3- Analysis And Design Analysis Model Analysis Class Hierarchies System Domain Model Sequence Diagrams Use Case Realizations Design Model Sequence Diagrams Component Models Data Model Deployment Model Software Architecture Document 4- Implementation Integration Build Plan Implementation Model 6- Deployment Deployment Plan 5-Test Test Plan Bill of Materials Release Notes Installation Artifacts End User Support Materials Training Materials 7 – Project Management Cost Models

Blueprints in More Detail…Payables - Business Interaction Diagram in UBB : 

Blueprints in More Detail…Payables - Business Interaction Diagram in UBB

Blueprints in More Detail…MS - Process Diagrams in UBB : 

Blueprints in More Detail…MS - Process Diagrams in UBB

Blueprints in More Detail…MS - Business Rules in UBB : 

Blueprints in More Detail…MS - Business Rules in UBB Function Point Analysis (measure) of the effort required for Interface Development to onboard this client. FPA converts into $ which rolls up into the Fixed Cost for this client Function Point Analysis (measure) of the effort required for Custom Development to onboard this client. FPA converts into $ which rolls up into the Fixed Cost for this client FPA also is an indicative of the Add-On maintenance cost of the existing infrastructure Can be represented in two measures (Business Use Cases or BPEL - an emerging standard). Variance = (Current Procs - Target Client Procs) ---------------------------------------- Current Procs Margins Vs Deal Size 1. Deal < $50 MM; 15% < Margins < 20%, Fixed Cost=X 2. $50 MM < Deal < 100MM; Margins unchanged; Fixed Cost = YOPS Capacity is traditional Resource Computation with a big difference - represented in Activity Based Costing Document and Deploy Decision Criteria for Client Onboarding Process

Traceable Across Business & Technology Models. : 

Traceable Across Business & Technology Models. Upper Stack Artifacts Events, Workflow, Results Business Data (OLTP) Lower Stack Artifacts Bus. Vision Locations Bus. Rules Bus. Interaction Organization Trends Bus. Functions Business Info (OLAP) Bus. Use Cases Bus. Object Model Supp. Business Specs. System Use Cases Data Model Analysis Model Design Model Deploy. Model Software Arch. Doc Supp. System Specs. A B Changes in workflow may result in changes in business use cases.

Understanding the Overall Picture of Traceability : 

Understanding the Overall Picture of Traceability

3D Blueprinting assists our clients in solving real business challenges. : 

3D Blueprinting assists our clients in solving real business challenges. Very specific business problems addressed: Getting new products and services out the door quickly Integrating existing with emerging technology applications 70% of IT spend is on maintenance and redevelopment 60%-80% of functionality is redundant Leveraging intellectual assets & property Competitive differentiation Mobilizing teams with different perspectives and priorities Organizational silos, redundant processes, and making changes to business processes are extremely difficult and costly Governance issues between IT and business are confusing and complicated

Slide 31: 

PROBLEM Improve speed to market and agility by reducing the time to write new policies from 4-5 days to < 1 day SOLUTION Vision: Project Operational Excellence (“OpEx”) Consolidate and integrate IT systems to lower cost and increase clock speed RESULTS 25% cost reduction 40% less handling by policy workers Up to 60% straight through processing New policies written within minutes, not days Example of a Measurable Success: “…Blueprinting enabled migration from Weblogic to Websphere application server, over a weekend - with minimal code changes…”

Unisys 3D Visible Enterprise : 

Unisys 3D Visible Enterprise How to get started

Typical Flow of Workshop. : 

Typical Flow of Workshop. Isolation of Specific Business Problem Client - Specific Constraints and Drivers Blueprint Methodology Experiential Workshop Active conversations regarding an area of challenge, business problem or constraint such as: Compliance (Legislative, Industry) M&A, Cross Org ~ Supply/Demand Chains Transformation IT/Business Disconnects Prep w/ Sponsor & Scheduling Client Business Strategies Unisys’ Intellectual Property Client Intellectual Property Formation of Business Domain Scope Refined Clarification / Sponsorship Established Next Steps: Wider (Across Layers) or Deeper (Drill Down Single Process) Inform Do Follow-on Processes Costings / Data Proforma Processes or other models Typical KPIs Six sigma requirements

What are the Benefits for Clients? : 

What are the Benefits for Clients? Solution alternatives and resolution acceleration Codified intellectual assets Capture and linkage of business and IT assets Enhanced visibility and predictability of development / deployment Digital Models to help with change requirements for future-proofing your business Framework for making sound technology & business process investments Ability to identify and leverage intangible company assets (people and processes) Ability to selectively replace/update components with minimal disruption to the business Common tool for communication and governance between Business and IT; Operations and Management

Unisys Business Blueprinting addresses two critical business problems: : 

Unisys Business Blueprinting addresses two critical business problems: How to make business processes more responsive and adaptable to changing requirements and demands in preparing for Check 21 How to mitigate the risks and costs of integrating emerging technologies.

To be more specific, blueprints help clients: : 

To be more specific, blueprints help clients: Anticipate and respond to changing business and customer requirements. Anticipate and respond to changing technology. Anticipate and respond to changing client or market requirements. Identify and seize fast-moving business opportunities quickly (via new processes, services and product development/deployment). Allow our clients to get more out of their IT investments and provide faster speed-to-market for new products and services. Reuse existing business processes to better reduce operational costs. Provide more effective organizational alignment-rapidly fixing a problem now while better positioning the enterprise to build new capabilities. Evaluate and implement new business models. Define new business opportunities with business partners Create or leverage business or industry utilities. Make critical business change relatively easily and quickly, again and again.

Analyst Accolades. : 

Analyst Accolades. There are a couple of outsourcers – Unisys being one of them – who can say to a client ‘This is where you are now, but this is where we can take you if we follow this roadmap.’ That kind of partnership can deliver real value to a company over the course of the outsourcing engagement.” META Group Unisys . . . has built its own infrastructure of systems and people ready and able to meet customer needs on a global basis. In recent years, Unisys has demonstrated it understands the power of partnerships and exploited this understanding to become one of the premier service organizations in the market. Gartner

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