Micha

1
Experiences with SOA

• Michaël Wittoek
• michael.wittoek_at_kbc.be

2
Agenda

• Introduction KBC Group ICT

Experiences with SOA
Questions Answers
3
Agenda

• Introduction KBC Group ICT

Experiences with SOA
Questions Answers
4
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)

5
The participations of KBC in Central Europe
Poland Kredyt Bank (80) Warta (100)
Slovenia(Financial participation) NLB (34) NLB
Vita (67) Representatived via NLB Bosnia,
Macedonia
Czech Republic CSOB (98,58) CSOB Insurance
(97)
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)
Slovakia CSOB (97) CSOB Poistovna (98)
Hungary KH Bank (100) KH Insurance (100)
Not closed
(10-2007)
6
ICT in a bank boring or not?
7
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

8
ICT infrastructure (Belgium only)
10.500 network printers multifunctionals
KBC Datacenter is one of the largest in Belgium
9
The ICT offices
Antwerpen
Brugge
Gent
Hasselt
Mechelen
Roeselare
Aalst
Leuven
Brussel
Head officesData centersLocal offices
10
Agenda

• Introduction KBC Group ICT

Experiences with SOA
Questions Answers
11
Whats 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
• Well try to demystify
• But theres 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 dont believe in SOA
• Perhaps Ill convince you
• But its really not the aim

12
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

13
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 wouldnt know the full picture were aiming at
• We wouldnt know which pieces we want or have to
  use

14
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!

15
Why SOA makes sense for KBC?

• So probably nothing different compared to other
  (financial) companies
• Perhaps one extra issueKBC 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

16
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

17
What is SOA for KBC?
18
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 youd 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 whos doing what!
• and reaching the appropriate level of
  effectiveness and efficiency

19
What is SOA according to KBC?

• You have a service oriented architecture if
  youre 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

20
What is SOA according to KBC?

• 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

21
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

22
Roadmap voor SOA
23
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

24
High level view on SOA approachSteps Principles
25
High level view on SOA approachSteps Principles
Introduce an adequate methodology/process
Go step by step at the pace of real business
cases
Do it!
Method
Reorganise
Intensify
Enable
Introduce adequate technology if you dont
have it yet
Adopt your ICT organisation to the SOA
target Adopt your ICT organisation to this
methodology and technology
Respect the absorption capacity of your
organisation Learn of your mistakes.
26
Key succesfactoren ICT
Gartner ICT strategie methodologie
Develop Target Architecture Plan
Solutions Strategy (Business View)
Business Strategy
4
Conduct ICT Assessment and Gap Analysis
Summarize Strategic Business Direction
Develop ICT Direction
Develop Management Governance Processes
Develop Migration Approach Roadmap
Develop Communications Plan and Obtain Broad
Consensus
2
8
6
7
3
1
Delivery Strategy (ICT View)
Develop Target Service Delivery Model
Technology Trends
5
27
Business priorities in the banking world (Gartner
Research)

• ICT
• Globalization ASP
• Frameworks
• Packages
• Re-useOutsourcing

• Business
• Globalization BSP
• Time to market
• Process standardization
• Costs-control

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3 Roll-model as patern
DISTRIBUTION
Corporates
Retail
Front Office
Markets
Securities
Accounting
Credits
Risk Management
In/excasso
Insurances
Factoring
...
COMPANY MANAGEMENT
PRODUCT FACTORY
29
Domain classification based on 3 roll-patern
Distribution
ERP
Asset management
Niche products
Trade Finance
Leasing
Securities
Non-life insurances
Life insurances
Audit compliance
Credits
Savings
Markets
ICT
Reinsurances
Payments
Accounting
Risk Management
Application infrastructure
30
Globalisation
Local distribution
Distribution
Distribution
Product
Product
Product
Product
Product
Product
Product
Product
Distribution
Distribution
Product
Product
Product
Product
Product
Product
Product
Product
31
High level view on SOA approachSteps Principles
Draw the big picture Challenge your ICT
organisation with the real SOA target And keep
reminding them of it!
Introduce an adequate methodology/process
Go step by step at the pace of real business
cases
Trigger
Method
Do it!
Enable
Reorganise
Intensify
Introduce adequate technology if you dont
have it yet
Adopt your ICT organisation to the SOA
target Adopt your ICT organisation to this
methodology and technology
Respect the absorption capacity of your
organisation Learn of your mistakes.
32
Enable integration frameworks

• EAI
• Synchronous
• Asynchronous
• Network Data Model
• Information layers
• Internationalisation

33
Integration Architecturehighlevel view
Central EAIbackbone
Local WAS
Local EAIbackbone
34
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.

User
Interaction layer
Application layer
Business Logic layer
35
Synchronous EAI Web Application Servers
positioning of logic
Presentation
Tier 1 Browser
Presentation logic
Tier 2 Web Applicatie Server
Process logic
Assembly logic
Tier 3 Back-end
Business logic
Data
36
Synchronous EAI Web Applicatie Servers Model
View Controller patern
Presentation show HTML pages
Tier 1
Presentation logic create HTML pages
Tier 2
Process logic control of the UI dialogue
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 3
Business logic
Data
37
Synchronous EAI Web Application Servers
positioning assembly logic
Tier 1 CLIENT Browser
Presentation (view screen)
Presentation logic (create screen)
Tier 2 MIDTIER WAS
Process logic (control of the UI dialoog)
Aggregation services on multiple back-ends
Assembly logic scattered over 2 tiers
Connection frontend - backend
Aggregation functions to services
Aggregation functions to services
function
function
function
function
function
function
function
function
Application
Application
Application
Application
Business logic
Business logic
Business logic
Business logic
Tier 3 BACK- END
Data
Data
Data
Data
38
Synchronous EAI the physical application
components
View
JSP
JSP
State Machine (servlet)
State 3
State 1
Controller
event
State 2
Task
Task
Task
Model
Data
command
navigator
command
command
39
Synchronous EAI the technology components
Assembly
Presentation
Business Logic
Websphere
Backend
Offices and customers
WebSeal
DB2
Offices (intranet)
browser
MF
FW
FW
Customers (internet)
browser
EJB
FW
ATM (intranet)
Oracle
Frontend
Authentication/security
(Servlets/JSP/IBM CCF) Web Application Servers
Data/logic/ business
40
What is asynchronous EAI?
Adaptor Connection Semantic transformation Syntact
ic transformation Security
Adaptor Connection Semantic transformation Syntact
ic transformation Security
Intelligent router Replicator
Correlator Filter Router Security
41
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

42
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

43
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 2
Application 1
Application 3
Application 6
NDM
Application 5
Application 4
44
Why NDM?
One way connecties

• What happens if 6 applications are talking p2p?

Two way connecties
45
Why NDM?

• Managable?

Number of connections (one way)
Number of connections (two way)
No !!
46
NDM
One way connecties
6 applications, communicating via a standard
business document
Two way connecties
47
NDM
Standard business document definition for order

• Solution!

Order processing department
Order processing department
48
When using NDM?

• By asynchronous backend to backend integration

Application 1
Application 4
Network Data Model
Application 2
Application 5
Adaptor
Application 3
Application 6
49
Information layers
Operational
Product factory
Distribution
Company Management
Product factory
Product factory
EAI NDM
Productfabriek
Distributie
Bedrijfsbeheer
Productfabriek
Productfabriek
Staging
Staging
Staging
Staging
Staging
Private
Private
Private
Private
Private
Public
Public
Public
Public
Public
Informational
50
Internationalization
Translation
Cultural formats
Encoding
51
The alternatives for Internationalization

• Ignorance
• We dont take any code page issues into account
• Transliteration
• Translate a non-standard character into the
  nearest form out of ASCII-7 (example c 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

52
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
53
Dealing with Internationalisation
System
System
System
System
System
System
Enable applications
3
Enable application infrastructure
PSN
KOD
OUTPUT

2
Application substructure
Connectors
Enable technical infrastructure
Middleware
1
DBMS
OS
54
High level view on SOA approachSteps Principles
Draw the big picture Challenge your ICT
organisation with the real SOA target And keep
reminding them of it!
Introduce an adequate methodology/process
Go step by step at the pace of real business
cases
Trigger
Method
Do it!
Enable
Reorganise
Intensify
Introduce adequate technology if you dont
have it yet
Adopt your ICT organisation to the SOA
target Adopt your ICT organisation to this
methodology and technology
Respect the absorption capacity of your
organisation Learn of your mistakes.
55
Basic Concepts of WPFLevels of abstraction
Contextual
Why ?
Service Management
Security
Conceptual
What ?
Logical
How ?
Physical
By what ?
56
Traceability through the layers
Principle 1
Principle 2
Principle 3
Contextual
Requirements
Service C
Service E
Service A
Service B
Service D
Conceptual
Component A
Component C
Component B
Logical
Solutions
Component A
Component B
Physical
57
Basic Concepts of WPFDifferent aspect areas
58
Coordination over the aspect areas
59
WPF matrixabstraction levels x aspect areas
CONTEXTUAL
SpecificAspect areas
SECURITY
SERVICE MANAGEMENT
Information
CONCEPTUAL
INFORMATION SYSTEMS
TECHNICAL INFRASTRUCTURE
INFORMATION
BUSINESS
LOGICAL
PHYSICAL
60
Classification services per aspect area
B services
BI services
IS services
TI services
Service Management services
Security services
61
Classification of servicesDifferent 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

62
High level view on SOA approachSteps Principles
Draw the big picture Challenge your ICT
organisation with the real SOA target And keep
reminding them of it!
Introduce an adequate methodology/process
Go step by step at the pace of real business
cases
Trigger
Method
Do it!
Enable
Reorganise
Intensify
Introduce adequate technology if you dont
have it yet
Adopt your ICT organisation to the SOA
target Adopt your ICT organisation to this
methodology and technology
Respect the absorption capacity of your
organisation Learn of your mistakes.
63
ICT Services
64
Service centres Organisation model
Architecture
Analysis Preparation
Services
Design
Technical Competence center
Development Functional Technical
Functional Competence center
Functional Maintenance
Technical Maintenance
Commodity
65
Life Cycle
Work Execution
Production
Work preparation
66
Globalization Central Service Centers Local
Delivery Centers
LocalDeliveryCenter
LocalDeliveryCenter
Distribution
Distribution
P
P
P
P
P
P
P
P
CentralDeliveryCenter
Product
Product
Product
Product
CentralServiceCenter
OffshoreDeliveryCenter
LocalDeliveryCenter
LocalDeliveryCenter
Distribution
Distribution
P
P
P
P
P
P
P
P
67
High level view on SOA approachSteps Principles
Draw the big picture Challenge your ICT
organisation with the real SOA target And keep
reminding them of it!
Introduce an adequate methodology/process
Go step by step at the pace of real business
cases
Trigger
Method
Do it!
Enable
Reorganise
Intensify
Introduce adequate technology if you dont
have it yet
Adopt your ICT organisation to the SOA
target Adopt your ICT organisation to this
methodology and technology
Respect the absorption capacity of your
organisation Learn of your mistakes.
68
Business cases als leverage voor SOA
Business ICT Governance
69
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

70
New Branch Cash DeskCSOB en PSB
71
Scope

• Context- 3 verschillende banken, deels gebruik
  van dezelfde systemen- verschillende backends
  met overlappende functionaliteiten-
  verschillende frontends- verouderde technologie
• Scope- allignatie van de processen in
  distributie- migratie alle kantoortransakties
  naar nieuw multikanaal platform

72
Aandachtspunten voor de oplossing

• Verminderen complexiteit
• Minder technische platformen
• Geen semi-batch processen
• Gefaseerd verwezenlijken domeinarchitectuur
• Single master voor logica en data
• Beperken van replicaties
• Consolidatie van backends waar mogelijk

73
Architectuur As Is
Local Data Server
Front end
Kantoren PSB
Branchcash desk
Kantoren CSOB
C/SCapitol
CorporateTerminal
RetailTerminal
C/S
W2K
LAN
WAN
RetailBanking
Blacklists
Open VMS
Verschillende
Back ends
74
Macroplanning
2009
2007
2008
2006
AGF_at_CSOB- Beleggen
CSOB PSB- Consolidatie CIF
AGF_at_CSOBPSB- personen- beleggingen
AGF_at_CSOBPSB- betaalverkeer- dagwindow
AGF_at_CP- 24/7 - optimaliseren
75
1Q09 finale architectuur
Front end
Kantoren PSB
Kantoren CSOB
Kantoren CP
Browser
Browser
Browser
LAN
AGF
AGF
AGF
WAN
RetailBanking
Capitol

Payments
Business logic
CIF
New
Websphere
Open VMS
W2K
EAI
Back ends
76
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

77
Synergy in insurances (SIS)

• An ASP case to illustrate SOA at KBC

78
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

79
SIS ASP in de domeinarchitectuur
80
AS IS architecture
Customers
Agents
OUTPUT
Distribution concept
Distribution concept
Fidea
KBC Ins Bank
WARTA KB
Customers
Distribution
Distri conc
ZSI
Agents
OUTPUT

Infra KBC
INCASSO EXCASSO
ACCOUNTING
ADMINISTRATION SAP Modules
Polaris
INCASSO EXCASSO
ACCOUNTING
Company Mgt
ADMINISTR. ZSI
SAP
81
TO BE Architectuur
Persons
Persons
Persons
Distribution concept
Distribution concept
Fidea
KBC Ins Bank
WARTA KB
Distribution concept
AGENTS
AGENTS
AGENTS
Distribution
OUTPUT
OUTPUT
OUTPUT
COMMISSIONING
COMMISSIONING
COMMISSIONING
INCASSO EXCASSO SAP FS CD

ACCOUNTING SAP FI
ADMINISTRATION SAP Modules
Global Infra KBC
Global PF SIS
Company Mgt
SAP
82
SIS Overall planning
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013
Pre study phase II

• Pre study phase I

Change
Prod/contr
Claims
Accounting
Incasso Excasso
Ditribution
Infrastructure
83
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

84
Wrap up
85
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 techniques

The big picture
Service Domains
Organisation
Methodology
Integration Frameworks
Technology
86
Wrap up

• SOA isnt just tools, platforms and applications
• Its mostly
• Vision and strategy
• An architecture to support this and
• A feasible plan for execution

87
Agenda

• Introduction KBC Group ICT

Ervaringen met SOA
Questions Answers
88
Questions Answer
89
KBC hires 150 new ICT employeesthis year
You can apply by mail with your CV attached to
ictjobs_at_kbc.be 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