Better, Faster, Cheaper ACH: An MDA Approach

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Better, Faster, Cheaper ACHAn MDA Approach

• Richard Mark Soley, Ph.D.
• Chairman and CEO
• Object Management Group, Inc.

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Thats the Great Thing about Standards

• The financial payments world is a mess.
• Old protocols SWIFT FIN, FEDwire, Visa,
  Mastercard, dozens of ACH protocols
• New protocols SWIFTnet and the rest of the XML
  family TWIST, IFX, FIX, etc.
• Are we replacing a mess of proprietary protocols
  with a mess of proprietary standards?
• Arent all of these payments and ACH standards
  special cases of a general concept secure,
  reliable financial information transfer

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XML Changes Everything!

• Throw out those pesky objects!
• Everything old is boring!
• All problems are now solved!
• All your software pain gone forever!

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Everything Old is New Again

• Unfortunately Im old enough to remember
• Artificial Intelligence
• Object Technology
• Distributed Computing
• XML
• Web Services
• Enterprise Service Bus
• Service Oriented Architecture
• This technology does everything! It makes
  miracles, changes water to wine

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OK, Calm Down

• Got that out of your system?
• Have we seen this before?

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OMGs Vision
The Global Information Appliance
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Not too bad for electrical power
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but a mess for telephony!
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OMGs Mission Since 1989

• Develop an architecture, using object technology,
  for distributed application integration,
  guaranteeing
• reusability of components
• interoperability portability
• basis in commercially available software
• Specifications freely available
• Implementations exist
• Member-controlled not-for-profit

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Who Are OMG?
ArtinSoft Bank of America BEA Systems Borland Boei
ng CA Compuware DaimlerChrysler EDS Eurocontrol
Fujitsu GSA Hewlett Packard Hitachi Hyperion IBM I
ONA io Software Kabira Kennedy Carter
John Deere Lockheed Martin MITRE Motorola NASA Nat
ional Archives NATO Nokia NUWC NTT DoCoMo
OASIS Oracle Sandia Labs SAP SAS Institute Sun
Microsystems SWIFT Unisys VISA W3C
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What is the Priority?
Analysis, Design, Development, Test Deployment
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Lesson Software lifecycle costs are in the back
end.
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What is the Point?

• Reuse
• Interoperability
• Portability
• Maintainability
• Productivity
• Business Alignment

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Because Otherwise Were All Just
roadkill on the information highway!!
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We Must Be Able To

• Capture enduring design
• Separate capture of process from engineering of
  implementation
• Automate the latter as much as possible
• Design-in agility

• The key ideas enduring, automated and more
  importantly agility

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The Model Driven Architecture

• OMGs Model Driven Architecture (MDATM)
  initiative is aimed precisely at this problem
• You have an opportunity to increase your bottom
  line by integrating your assets
• Industry standards support that goal by
  future-proofing your application design
• The MDA will help you integrate the mix you have
  today, and give you an architecture to support
  the unexpected
• Focus on integrating legacy applications
• Ensure smooth integration of COTS applications
• Models are testable and simulatable
• The aim a 20-year software architecture

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Model Driven Architecture

http//www.omg.org/mda/
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Model Driven Architecture

• An initiative of the Object Management Group
  (OMG)
• A brand for tools based on OMGs UML and MOF open
  standards
• A set of specifications defined by OMGs open,
  worldwide process.

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MDA Adoption in Verticals

• Vertical market groups are thriving on MDA
  approach, both within OMG and other groups
• Financial Services
• Electronic Commerce
• Healthcare
• Life Sciences Research
• Manufacturing
• Space Ground Systems
• Telecommunications
• Legacy Integration
• ISO 20022, UN/CEFACT

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MDA is Proven in Software Development

• Many excellent proofs-of-concept
• Banks, railroads, trading, insurance,
  manufacturing, healthcare, etc.
• Adopted by UN/CEFACT, SWIFT, ACORD, HL7 and other
  key standards players
• Careful studies prove the point
• The Middleware Company (TMC)
• Electronic Data Systems (EDS)

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MDA More than Software

• In the last year, MDA has been used to apply UML
  to a growing number of new digital
  infrastructures
• Systems engineering
• Business process modeling
• Business rules modeling
• Data/information modeling
• Process definitions in patents
• Software was just the first application

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UML Modeling is Widespread

• Even outside OMGs own 18 vertical-market
  standardization groups, MDA is being used to
  leverage UML process description in many other
  settings
• ACORD insurance industry standards
• HL7 healthcare standards
• SWIFT financial payments interoperability

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SWIFT Major Financial Player

• Society for Worldwide Interbank Financial
  Telecommunication established in 1973 by 239
  banks in 15 countries
• Now serving 7,650 institutions in 200 countries,
  peaking at almost 10 million transactions a day
  and totaling 2 trillion transactions a year, with
  99.99 uptime upgrading in 2004 to worldwide
  IP-based SWIFTNet
• Through automation, reduces members costs for
  Payments, Securities, Foreign Exchange, Treasury
  and Trade
• Owned by financial industry members
• Based on open standards
• Global financial communitys foremost messaging
  infrastructure

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SWIFT Leverage of UML

• SWIFT now uses a three-layered approach to
  defining standards, with processes defined in UML
  and (currently) delivered as XML Schemas
• Business-oriented approach to definition
• Formal involvement of all transaction parties
• Involvment of industry experts
• Implementation-neutral
• Defined in UML and automatically translated
• Allows rapid changes to infrastructure and agile
  response to changing business requirements

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SWIFT Standards Process
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Effect on ACH

• How is all this relevant to ACH?
• SWIFTs SWIFTnet protocols are an example of a
  protocol generated from business models
• A general definition of financial transfer can be
  used as a Rosetta Stone for all of the old
  and new protocols
• In the face of constant infrastructure change,
  its the only hope
• We cant keep rebuilding all of our systems every
  time some technology has a good idea!

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OMG Compliance Consortium

• The fastest-growing problem in IT
• Regulatory compliance grows more complicated by
  the day
• Example Sarbanes-Oxley in the US
• Standard models to ensure compliance
• Standardized best practices
• Newsletter, workshops, webinars, seminars,
  research, support,

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UML/MDA are Transforming

• Not only are UML and MDA about transformation,
  but they are transforming business processes in
  the digital infrastructure
• For more information
• MDA http//www.omg.org/mda/
• OMG http//www.omg.org/
• Soley soley_at_omg.org