michaël wittoek michael.wittoek@ kbc.be experiences with soa

Michaël Wittoek

[email protected]

Experiences with SOA

Agenda

Introduction KBC Group ICT

Questions & Answers


KBC Group Ranking

One of the top 2 banks in Belgium One of the top 3 insurers in Belgium One of the top 20 banks in Europe Top 3 financial group in Central Europe

Market share in Belgium Banking : 20-25% Insurance : 9% (non-life) 22% (life)

Head office in Brussels 56.000 employees

Belgium: 20.000 CEE: 30.000 Rest of the world: 6.000

11.000.000 clients Belgium : ca. 3 300 000 CEE : ca. 6 900 000 Rest of the world : ca. 800 000

Net Profit 2007: 3 281 m euros (ROE : 18,5%)

The participations of KBC in Central Europe

Poland Kredyt Bank (80%) Warta (100%)

Czech Republic ČSOB (98,58%) ČSOB Insurance (97%)

Slovakia ČSOB (97%) ČSOB Poist’ovna (98%)

Hungary K&H Bank (100%) K&H Insurance (100%)

Slovenia(Financial participation)NLB (34%)NLB Vita (67%)

Representatived via NLB: Bosnia, Macedonia

(10-2007)

Last evolution (2007):

Romania: Romstal Leasing (99,34%),

Bulgaria: DZI Insurance (85%+ public bid 15%) – EIBank (75%)*

Serbia: A Banka (100%) – Senzal (100% *) – Hipobroker (100%) – Bastion (60%)

Russia: Absolut Bank (95%)

Latvia-Estonia-Lituania-Ukraine: BIC (51%)

* Not closed

ICT in a bank: boring or not?

Group ICT Employees

Belgium: 1.930 KBC & 750 external consultants Central Europe: 1.360 KBC India: 250 Valuesource (100% daughter of KBC)

Services Delivering end-to-end ICT solutions (software, hardware, service) Maintenance of ICT solutions Hosting services Network & infrastructure management

Clients KBC Group Belgium KBC Group international Other corporate clients in the Benelux (Orbay, IFB, …)

Turnover: € 800 mn

Your ICT, our business

ICT infrastructure (Belgium only)

KBC Datacenter is one of the largest in Belgium

10.500 network printers & multifunctionals

21.000 PC’s3.600 portable PC’s1.200 softwares17 Terabyte NAS

2050 Unix servers (HP, SUN Solaris)1500 Intel servers320 Terabyte hard disk2 robots: 8.500 tapes, tot 1 Tb/tape

2 IBM Mainframes in CCM - 1 in CCL(+/- 19.500 Millions of Instructions Per Second)284 beschikbare Terabyte (284.000 Gb)2 robots: 10.000 tapes, 180 Gb/tape17.000.000 transactions/day

https://www.kbc.be/IPA/D9e01/~N/~KBC/~BZJ6N7W/-BZIQJDK/BZJE1H6/BZJ6N7G/~-BZJ6J7N

The ICT offices

Head officesData centersLocal offices

Brugge

Roeselare Aalst

HasseltGent

Antwerpen

Brussel

Mechelen

Leuven

Agenda


Questions & Answers


What’s in it for you? This is our truth and nothing but our truth on SOA

If SOA is still a mystery to you and now you expect to see “the light” and the exact road ahead… We’ll try to demystify But there’s no unique recipe for SOA

If you believe in SOA and think to know the right approach Our story could inspire you But perhaps you can do it differently

If you don’t believe in SOA Perhaps I’ll convince you But it’s really not the aim

Content Why SOA makes sense for KBC?

What is SOA for KBC?

Roadmap for SOA The big picture Integration frameworks as enablers Method for SOA Service Oriented Organisation in ICT Fazed implementation

SOA experiences: Migration of distribution channels to a multi-channel concept Building an ASP for non-life assurances

Wrap up

Why SOA makes sense for KBC?

We used to see the whole picture:• All on 1 platform• Everyone using the same standard• Everything build on our own• Manageable

In/Outsourcing

ASP, BSP, …

Technological rat race

Merger…

We could end up with a lot of pieces with which we have to do puzzles, but…

We wouldn’t know the full picture we’re aiming at

We wouldn’t know which pieces we want or have to use

http://www.grouplink.net/images/puzzle.jpg

http://www.unisa.edu.au/hrm/images/puzzle.jpg

Why SOA makes sense for KBC? But then the world around her started changing…

Mergers of companies with similar or different activities

ASP – BSP (Insourcing & outsourcing at business or ICT level)

Off the shelf packages, Internet, Web services, …

…resulting in an ICT architecture With a lot of interaction with external parties

Heterogeneous software, hardware, …

Where there are many “standards” on functional and technical level

And a lot of flavours of banking and assurances business models

But the same quality was still needed or even more! Deliver the same of better services to our client

Regulations on EC level

Time to market and cost!

Why SOA makes sense for KBC? So probably nothing different compared to other (financial)

companies

Perhaps one extra issue…KBC Group Several successful acquisitions in Central Europe In parallel with the EU and € drive in Central Europe we are

transforming gradually to one company with a delicate balance between

Localisation Local regulations Local market conditions Big bang is too dangerous

Centralisation Law looks at KBC Group as one company Economy of scale EU is becoming “one country”





Wrap up

What is SOA according to KBC? SOA is just another example of a very general aim

“staying in control…” Your first lessons in programming? If you have 1000

lines of code you’d better start thinking of modular programming!

How do you tackle a huge problem? Split it up in smaller problems you can handle!

Divide et impera! How do you manage a big team? By making fine

agreements on who’s doing what!

“… and reaching the appropriate level of effectiveness and efficiency”

What is SOA according to KBC? You have a service oriented architecture if you’re able

to… Create an overview of your complete external and

internal application portfolio And you can cluster them in several big blocks And you can assign a list of service (= what the “thing”

does for the others) to each of these big blocks And you can combine these services into processes

known by the business Regardless of all technology used

SOA is not a technical concept

But: it is a way to achieve a manageable situation for all aspects of ICT: Architecture describes the situation Some aids, outside architecture, needed to achieve the

situation: - frameworks- methods- organization- infrastructure

What is SOA according to KBC?





Wrap up

Roadmap voor SOA

High level view on SOA-approach We never had a big ICT change project called “KBC

ICT goes SOA!”

SOA requires a multi dimensional approach. Such type of projects are very complex to manage, very difficult to absorb by your organisation

SOA is something you gradually learn and thus should be introduced step by step

Such type of projects tend to forget the real aim and start creating one on their own

High level view on SOA approachSteps & Principles

TriggerTrigger

Draw the big pictureChallenge your ICT organisation with the real SOA targetAnd keep reminding them of it!

EnableEnable

Introduce adequate technology if you don’t haveit yet

ReorganiseReorganise

Adopt your ICT organisation to the SOA targetAdopt your ICT organisation to this methodology and technology

IntensifyIntensify

Respect the absorption capacity of your organisationLearn of your mistakes.

MethodMethod

Introduce an adequate methodology/process

Do it!Do it!

Go step by step at the pace of real business cases


TriggerTrigger




IntensifyIntensify




MethodMethod Do it!Do it!

EnableEnable ReorganiseReorganise

Key succesfactoren ICT

Develop Target Architecture

Plan

Develop Target Service

Delivery Model

4

SolutionsStrategy

(Business View)

DeliveryStrategy

(ICT View)

Summarize Strategic Business Direction

Develop ICT Direction

Develop Management &

Governance Processes

Develop Migration

Approach & Roadmap

1 6 72

Conduct ICT Assessment

and Gap Analysis

3 8

Develop Communication

s Plan and Obtain Broad Consensus

5

Business Strategy

Technology Trends

Gartner ICT strategie methodologie

Business priorities in the banking world (Gartner Research)

Business:

Globalization: BSP

Time to market

Process standardization

Costs-control

ICT:

Globalization: ASP

Frameworks

Packages

Re-useOutsourcing

3 Roll-model as patern

DISTRIBUTION

COMPANY MANAGEMENTPRODUCT FACTORY

Retail

...

Corporates

Front Office Markets

Insurances In/excasso

Factoring

Credits

Securities Accounting

Risk Management

Domain classification based on 3 roll-patern

Distribution

Nic

he

pro

du

cts

Tra

de

Fin

ance

Lea

sin

g

Sec

uri

ties

Ass

et m

anag

emen

t

No

n-l

ife

insu

ran

ces

Lif

e in

sura

nce

s

Au

dit

& c

om

pli

ance

Cre

dit

s

Sav

ing

s

Mar

kets

Accounting Risk Management

Application infrastructure

Payments

ER

P

ICT

Rei

nsu

ran

ces

Globalisation

Distribution

Product

Product

Product

Product

Distribution

Product

Product

Product

Product

Distribution

Product

Product

Product

Product

Distribution

Product

Product

Product

Product

Centralproduct factories

Local distribution


TriggerTrigger


EnableEnable




IntensifyIntensify


MethodMethod


Do it!Do it!


Enable integration frameworks EAI

Synchronous Asynchronous

Network Data Model

Information layers

Internationalisation

Integration Architecture…highlevel view

Back EndBack End Back EndBack End

BrowserBrowser Browser

WAS



WAS



WAS



WAS

Central EAIbackbone

Local EAIbackbone

Local WAS

Synchronous EAI: Web Applicatie Servers: 3 Tier architecture

3 Tier Interaction layer Application layer Business Logic layer

Principles: Thin client en Thin server: Only Business Logic and Data in

the Business Logic layer Minimal locale footprint for

interaction: sandbox of the browser

Logic in the Interaction layer is minimal

Optimize the flow between the different layers: take the limitations of bandwidth and the performance-requests into account.

Application layer

Interaction layer

User

Business Logic layer

Synchronous EAI: Web Application Servers: positioning of logic

Presentation

Presentation logic

Process logic

Business logic

Data

Tier 1: Browser

Assembly logic

Tier 2: Web Applicatie Server

Tier 3: Back-end

Synchronous EAI: Web Applicatie Servers: Model View Controller patern

Presentation: show HTML pages

Presentation logic : create HTML pages

Process logic: control of the UI dialogue

Business logic

Data

Tier 1

Assembly logic: combine functionalities of 1 or more back-end applications on 1 or more back-ends to 1 service for the UI process

Tier 2

Tier 3

Aggregation functions to services

Application

Synchronous EAI: Web Application Servers: positioning assembly logic

Presentation (view screen)

Presentation logic (create screen)

Process logic (control of the UI dialoog)

Aggregation services on multiple back-ends

Business logic

Data

Tier 1: CLIENT Browser

Tier 2: MIDTIERWAS

Tier 3:BACK-END

Connection frontend - backend

function function

Application

Business logic

Data

function function

Aggregation functions to services

Application

Business logic

Data

function function

Application

Business logic

Data

function function

Assemblylogic scattered

over 2 tiers

What is asynchronous EAI?

AdaptorConnection

Semantic transformationSyntactic transformation

Security

AdaptorConnection

Semantic transformationSyntactic transformation

Security

Intelligent routerReplicator & Correlator

FilterRouter

Security

Objectives asynchronous EAI Asynchronous interaction between back-ends:

NOT for synchronous interaction between user and back-end.

Complementary to the working of the Web Application Servers

Back-end interactions are internally as well as externally

Realize a disconnection between applications, functional as well as technical: “Plug and Play” Re-use of services offered by the back-ends

When synchronous?When asynchronous?

Asynchronous if … Cross-platform backend-to-backend interaction Technical disconnection Functional disconnection: no feedback within the same

unit of work

Attention! Technical SLA is “best possible time”, mostly “a few

seconds” Restrict amount of asynchronous steps within an end-to-

end process

What is NDM ? NDM stands for “Network Data Model”

NDM is a standard interface-model in KBC ICT Only exists on the network between participants Never by the participants Standardized on a logical as well as a fysical level

Application 1

Application 6

Application 5 Application 4

Application 3

Application 2

NDM NDM

NDM

Why NDM?0

0

What happens if 6 applications are talking p2p?

1

2

One way connecties:

Two way connecties:

2

4

3

6

4

8

5

10

6

12

7

14

8

16

9

18

10

20

11

22

12

24

13

26

14

28

15

30

Why NDM? Managable? Number of connections (one way)

Number of connections (two way)

15

30

No !!

NDMOne way connecties:

Two way connecties:

1

2

2

4

3

6

4

8

5

10

6

12

6 applications, communicating via a standard business document:

NDM Solution!

Order processing department

Order processing department

Standard business document definitionfor “order”

When using NDM? By asynchronous backend to backend integration

Application 1

Application 2

Application 3

Application 4

Application 5

Application 6

NDM

NetworkDataModel

Adaptor

Information layers

Product factoryDistributionCompany

ManagementProduct factoryProduct factory

ProductfabriekDistributie BedrijfsbeheerProductfabriekProductfabriek

Staging

Private

Public

EAI + NDMEAI + NDM

Staging

Private

Public

Staging

Private

Public

Staging

Private

Public

Staging

Private

Public

Operational

Informational

Internationalization

Translation

Encoding

Cultural formats

The alternatives for Internationalization Ignorance

We don’t take any code page issues into account

Transliteration Translate a non-standard character into the nearest form

out of ASCII-7 (example: č becomes c)

Full cloning Different platforms (OS, databases, applications) per

codepage-instance

Cloning at the boundaries A part of the platform is in Unicode, the boundaries

themselves are cloned

Full Unicode

Internationalisation: strategic vision

Business long term strategy of globalisation

Unicode is the world-wide standard code page for storing and visualize all different character sets in the world without any loss.

Conversions between Unicode and locale code pages should be avoided as much as possible: They introduce extra cpu overhead during runtime They introduce extra complexity during design and build.

All applications completely in Unicode on all platforms

Dealing with Internationalisation

System SystemSystemSystemSystem

PSN KOD OUTPUT

Middleware

DBMS

OS

Enable technical

infrastructure

Enable application

infrastructure

Enable applications

Application substructure

Connectors

System

…

1

2

3


TriggerTrigger


EnableEnable




IntensifyIntensify


MethodMethod


Do it!Do it!


Basic Concepts of WPFLevels of abstraction

Service Management Security

Business/Process

InformationSystemsInformation

TechnicalInfra-

structure

Why … ?Contextual

What… ?Conceptual

How… ?Logical

By what … ?Physical

Traceability through the layers

Physical

Logical

Conceptual

Contextual

Principle 1

Service A

Principle 2 Principle 3

Service B

Service C

Service D

Service E

Component AComponent B

Component C

Component A Component B

Req

uir

em

ents

So

luti

on

s

Basic Concepts of WPFDifferent aspect area’s

Information

Bu

sin

ess

Arc

hite

ctu

re

Info

rmatio

nA

rch

itectu

re

Info

rmatio

nS

yste

m

Tech

nolo

gy

Infra

stru

ctu

re

Service Management ArchitectureSecurity Architecture

Security Service Management

Actors

Processes

TechnologyInfrastructure

InformationSystem

Components

Information

HardwareChannelsInformationStructures

Transformation

Enabling

Sprint

Toro n to

Acquire order

inf ormatio n from

client

Provide

client in formati on

Regis ter Picking

comple tio n

New York

Acquire order

inf ormatio n from

client

Acquire a nd

valida te

addi ti onal order

inf o

Regis ter order

inf ormatio n

Provide order

stat us

inf ormatio n

Provide


Supp ort


valida tio n pr ocess

Provide picki n g

instru cti ons

Adminis ter

work sta tus

Provide

replenis hmen t

instru cti ons

Regis ter Picking

comple tio n

Sprint

Toro n to

Acquire order

inf ormatio n from

client

Provide


Regis ter Picking

comple tio n

New York

Acquire order

inf ormatio n from

client

Acquire a nd

valida te

addi ti onal order

inf o

Regis ter order

inf ormatio n

Provide order

stat us

inf ormatio n

Provide


Supp ort


valida tio n pr ocess

Provide picki n g

instru cti ons

Adminis ter

work sta tus

Provide

replenis hmen t

instru cti ons

Regis ter Picking

comple tio n

Internet Information serviceInternet Information service



Coordination over the aspect areas

WPF matrixabstraction levels x aspect area’s

Main Aspect Area’sMain Aspect Area’s

SpecificSpecificAspect area’sAspect area’s

Information

CONTEXTUAL

BU

SIN

ES

S

INF

OR

MA

TIO

N

INF

OR

MA

TIO

N S

YS

TE

MS

TE

CH

NIC

AL

IN

FR

AS

TR

UC

TU

RE

SECURITY

SERVICE MANAGEMENT

PHYSICAL

LOGICAL

CONCEPTUAL

Classification services per aspect area

TI servicesTI services

IS servicesIS services

BI servicesBI services

B servicesB services

Service Management

services

Service Management

servicesSecurity services

Security services

Classification of services:Different types of “IS services”

Workflow services Coordination of a process Work distribution to different actors (vb. front/back-office) Example: deal with a claim

Process logic services Coordination of an activity of a process Executed by one actor Facilitate the user interactions (screen flow) Example: Finalize a loan agreement

Business logic services Provide in re-usable business logic Example: define rate of a contract


TriggerTrigger


EnableEnable




IntensifyIntensify


MethodMethod


Do it!Do it!


Fu

nction

alC

om

pe

tence cen

ter

TechnicalMaintenance

FunctionalMaintenance

DevelopmentFunctional & Technical

Design

Service centres : Organisation model

Architecture

Commodity

Analysis &Preparation

Servic

es

Te

chn

icalC

om

pe

tence cen

terServiceServiceCenterCenter

DeliveryDeliveryCenterCenter

Work Execution ProductionWork preparation

Initiating

Idea Identi-fica-tion & Defini-tion

Pre-study Char-ter Defini-tion

Archi-tectu-re Defini-tion

Pro-gra-me Defini-tion & Propo-sal

Initia-ting Close Down & Evalu-ation

Production

Oper-ations

Delivering

Mobilisation & Re-quire-ments Walk-thru

De-sign

Reali-sation & Test

Implementation

Gua-ran-tee & Com-pletion

++ ==

Life Cycle

Globalization: Central Service Centers – Local Delivery Centers

Distribution

P P P P

DistributionP P P P

Distribution

P P P P

Distribution

P P P P

Product

Product

Product

Product

CentralServiceCenter

LocalDeliveryCenter

LocalDeliveryCenter

LocalDeliveryCenter

LocalDeliveryCenter

OffshoreDeliveryCenter

CentralDeliveryCenter


TriggerTrigger


EnableEnable




IntensifyIntensify


MethodMethod


Do it!Do it!






Wrap up

Synergy in insurances (SIS)

An ASP case to illustrate SOA at KBC

Context en scope Context

The ICT-platform ZSI with its product factory “non-life” of Warta is end of life

KBC is having the ambition to setup a global product factory “non-life” for KBC group

The existing product factory “non-life” of KBC is not re-usable The infrastructure for distribution and company management of KBC

is re-usable

Scope Set-up a global product factory “non-life” for KBC group Multi-channel, for following distributors:

- KBC Bank and Insurances BE,- Fidea- Warta PL- KB PL

SIS ASP in de domeinarchitectuur

Distribution

Nic

he

pro

du

cts

Tra

de

Fin

ance

Lea

sin

g

Sec

uri

ties

Ass

et m

anag

emen

t

No

n-l

ife

insu

ran

ces

Lif

e in

sura

nce

s

Au

dit

& c

om

plia

nce

Cre

dit

s

Sav

ing

s

Mar

kets

Accounting Risk Management

Application infrastructure

Payments

ER

P

ICT

Rei

nsu

ran

ces

rationeelFidea KBC Ins & Bank WARTA & KB

AS IS architecture

PRODUCTS

Pro

du

ct Fa

cto

ry

CONTRACTS

Claim handling

PRODUCTS

CONTRACTS

Claim handling

Co

mp

any

Mg

t

ACCOUNTING

ADMINISTRATION SAP Modules

INCASSO EXCASSO

ACCOUNTING

ADMINISTR. ZSI

INCASSO EXCASSO

CustomersDistrib

utio

n Agents

Distribution concept

OUTPUT

Distribution concept Distri conc

Customers

Agents

OUTPUT

ZSI

Infra KBC

Polaris

SAP

rationeelFidea KBC Ins & Bank WARTA & KB

TO BE Architectuur

Co

mp

any

Mg

t

PRODUCTS SIS

Pro

du

ct Fac

tory

CONTRACTS SIS

CLAIMS SIS

ACCOUNTING SAP FI

ADMINISTRATION SAP Modules

INCASSO & EXCASSO SAP FS CD

Persons

Distrib

utio

n

AGENTS

Distribution concept

OUTPUT

COMMISSIONING

Distribution concept Distribution concept

Persons

AGENTS

OUTPUT

Persons

OUTPUT

AGENTS

COMMISSIONING COMMISSIONING

Global Infra KBC

Global PF SIS

SAP

SIS Overall planning

Start work-execution

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013

2006 FO 200920082007

Go live Bus4Q09

Prod/contr

Claims

Accounting

Incasso Excasso

Ditribution

Change

Infrastructure

Pre

stud

y p

ha

se II

Pre

stud

y p

ha

se I





Wrap up

Wrap up

KBC gradually implemented its own SOA stack…

…by combining theory and practice

…by taking the time to “learn” SOA, inspired by the real aim

…and surely not by throwing away all existing tools & techniquesTechnology

IntegrationFrameworks

Service & Domains

The big picture

Organisation

Methodology

Wrap up SOA isn’t just tools, platforms and applications

It’s mostly… Vision and strategy An architecture to support this and A feasible plan for execution

Agenda


Questions & Answers

Ervaringen met SOA

Questions & Answer

KBC hires 150 new ICT employeesthis year

You can apply by mail with your CV attached to

[email protected] or via

www.kbcworld.be

What do we offer ? A wide range of training and growth opportunities within ICT and business Room for expert as for generic functions and careers A professional ICT environment with a wide range of technologies, processes

and business processes Local and international opportunities A competitive salary with extra legal benefits

mailto:[email protected]



http://www.kbcworld.be/

michaël wittoek michael.wittoek@ kbc.be experiences with soa

Documents

soa slide

group ict employees

ict infrastructure belgium

kbc india

participations of kbc

kbc datacenter

transactionsday slide

business slide