Download - Microsoft architects council March 2008
Kiwibank in Transformation: Startup to EnterpriseDr Bohdan Szymanik
http://bohdanszymanik.blogspot.com
Enterprise Architecture Manager, Kiwibank
Kiwibank: Road to Success
2002
Launch
•Project team
•No customers
•Guess requirements
•Not sure what we would become!
2003-2007
@ Launch
•Strong growth
•Acquisitions
•Brand developed
•Building market knowledge
2008
•Success!
•Many customers
•Many products
•Know what customers expect
Kiwibank IT
Service Delivery
Payments Delivery
Infrastructure Delivery
Application Delivery
Business Delivery
Market Facing Delivery Teams
The banking business model
Banks =payment facilitators
risk managers
Ronald Coase‘The Nature of the Firm’, 1937
Perfect market + $0 transaction cost + complete symmetrically
information => no banks !
Fortunately(!) markets are inefficient:
• Transaction cost is significant.
• Borrower credit risk is not clear.
• Lenders not fully advertised
Four lessons
Internal marketingConflicts of interestProblem solving & DesignBusiness casing the platform
Sell Yourself
Are you considered Part of value creation? Or a cost centre?
Is the EA consideredAn enabler? Or a constraint?
Language“The business must make the decision” versus“This must be a commercial decision”
Sell The Idea
Demonstrat
e
Gain attent
ion
Reinforce
“No rational argument will have a rational effect on a man who does not want to adopt a rational
attitude.”
Our CEO, Sam Knowles, Keynote: Leadership in Banking, Sydney Oct 07
Typical Enterprise Architect!
Governance
Application Designer
Innovator
Conflict: Order Disorder Enabler
Driving Change
Enforcing Order
Conflict: Right Product Built Right
Do It Right Advocate
Customer Advocate
The Innovator’s Dilemma
Clayton Christensen, 1997
Successful companies rarely stay successful
Sustaining innovation treads waterDisruptive innovation creates new
marketsDisruptive innovation forces company
change“Marketing and financial
managers, because of their managerial and financial
incentives, will rarely support a disruptive technology.”
Bucyrus-ErieCaterpillar
Digital Equipment Corp MicroVAX II Dell Latitude D830
ALCo GM - EMD
“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to
them.”
Steve Jobs, Apple
Allowing Innovation To Occur
Avoid projects
• How can you define a project when outcome is unknown?• Agree R&D opex up front (20%)
Avoid conforming influences
• Sell your people and ideas
Little Guidance to do Design
How do you make logical architectural decisions?Do you have group think sessions?How do you define your set of choices?Do you place emphasis on authority?Do you need to get it right first time?
Measuring Complexity
If Complexity = (program states)
Complexity = SV , where S = # of states, V = # of variables Variables Complexity (as
states)
1 6
2 36
3 216
4 1,296
5 7,776
6 46,656
7 279,936
8 1,679,616
Example,6 states per variable
The Power of ComponentisationImagine a 12 variable system6 states per variable
One single system allowing full interaction2,176,782,336 program states
Two separate systems each 6 variables(program states) = 66 + 66
= 46,656 + 46,656 = 93,312 (= 1/23,000th of original)
Kiwibank Example
GUI
Logic
Data
GUI
Logic
Data
GUI
Logic
Data
GUI
Logic
Data
Core Banking
Credit Origination
Credit Cards
CRM
Started with discrete apps
Progressive Change to SOA
Logic
Data
Logic
Data
Logic
Data
Logic
Data
Service Layer
GUI GUI GUI GUI
Output
2002 Kiwibank launched
2003 first web services; Phone banking
2004 TXT Banking
2005 Back office apps 2006 Mobile
banking; Mobile top up;Customer facing tool;International
Kiwibank Internal Development Team2 4 6 8 14
Partners:
Observe Orient Decide Act – and do it faster!
Colonel John Boyd
“40 Second Boyd”“Genghis John”
Complexity
You want to remove itBut only so far…Beware of those proclaiming number 8 wire and KISSOne persons complexity is anothers simplicityYou can minimise complexity only so far
And then you start moving it around
Complexity Depends Upon
Thomas Dreps, http://en.wikipedia.org/wiki/Image:Chloroplasten.jpg
and perspective
scale
Complexity is Regionalised
In order to win, we should operate at a faster tempo or rhythm than our adversaries… or,
better yet, get inside [the] adversary's OODA time cycle ... Such activity will make us appear ambiguous (unpredictable) thereby generate
confusion and disorder among our adversaries…"
John Boyd, "Patterns of Conflict“,http://www.d-n-i.net/boyd/pdf/poc.pdf
“The Devil's in the Details
I really got over the "get into details right away" attitude after I took some drawing classes...If you begin to draw the details right away you can be sure that the drawing is going to suck. In fact, you are completely missing the point.
...
Work from large to small. Always.”
Patrick Lafleur, Creation Objet Inc. (from Signal vs. Noise)
On Getting Creative Ideas
SaturationIncubationIlluminationVerification
Helmholtz, late 19th century
Henri Poincoiré, 1908
Edward de Bono
Murray Gell-Mann
Graham Wallas, 1926
www.youtube.com/watch?v=KXoHXc0ErBI
Platform Components
Communications
Workflow
Decisioning
Data
Pre
senta
tion
Busi
ness
Serv
ices
Data
Serv
ices
Pro
duct
Engin
es
Business Metrics Reporting
Security
Microsoft As A Platform Vendor
Windows OS
Data Management
Programmable Runtime
Workflow + Decisioning
Office Worker Interfaces
Conclusion
1. Commercial not business2. Sell3. Do OODA (quickly)4. Work on the complexity5. Give yourself time to think!