Architecture General Discussion & Examples

ArchitectureGeneral Discussion & Examples

Distributed Architecture and Infrastructure

2

• Review of some of the points from last week– Benefits– Solution Stack– Migration Alternatives– Trends– Business Drivers

• Client #1• Client #2• Open Discussion and Questions

Agenda

3

Review of some of the points from last week– Benefits– Solution Stack– Migration Alternatives– Trends– Business Drivers

Agenda

12

Client # 1– Business Drivers /Architecture– Architecture Strategies (Examples)– Infrastructure Strategies– IT Organization Direction

Agenda

13

Top XXXXX Business Issues

1Increasing

Expense Levels

As business volumes have grown, expense levels have increased. Expectations were that an economy of scale would produce level expense growth. Expenses from new business acquisition are not being recovered as a result of low business retention levels. New hire training to accommodate growth is costly in time and manpower.

2Training Requirements- Long, Intense, Costly

In an effort to maintain adequate service levels to accommodate growth, hiring has increased. System complexity and complex business activities require intensive employee training to develop a satisfactory productivity level. This is an expensive process which takes place over a full year for a new employee.

3

Achieving and Maintaining

Service Levels

With an increase in growth and hiring, it is difficult to maintain adequate service levels. Achieving new employee productivity and quality levels is a prolonged effort and subject to low new employee retention levels due to system and process complexity.

4Business Retention

Levels Too LowThis has an impact on the recovery of new business acquisition side expenses.

5Technical Solutions

Technical solutions required to address growth and efficiency have not been identified or implemented to handle higher volumes of processing. This causes backlogs and delays.

6Excessive

Handoffs and Rerouting

A number of client service requests cannot be completed at the point of first contact and require handoffs between departments to follow the request through to completion.

Business Architecture ObservationsBusiness Architecture Observations

14

Top XXXXX Business Issues (continued)

7 Backlogs and Delays Rerouting handoffs increases backlogs and delays, which leads to difficulty in achieving adequate service levels.

8Manual Tasks and

ComputationsIncreasing numbers of client service requests and business transaction complexity require specialists to perform complex manual computations that are prone to error.

9Redundant Entry and

EffortsBusiness transactions requiring entry of information multiple times in multiple systems.

10Data Accessibility and

Accuracy

Current data processing systems’ archaic architectures do not provide for simple common access or interfaces, do not allow “real-time” query or transaction access to vital data stores affecting clients, do not support 24/7 uptime, do not provide “client-centric” views of supporting client relationships, do not support business complexity without introducing inefficiency and are difficult to update with new functionality or to simply maintain.

11Poor Documentation, Lack of Procedures

and Processes

Business processes, business rules, data processing systems procedures and policies and management tracking activities are not maintained and kept easily accessible in an electronic form like the intranet.

12Legacy

EnhancementsImplementing legacy enhancements is time consuming and requires excessive manual testing.

13 Processing Lag Time As transaction complexity increases, specialists must manage some types of transactions over several business days.

14 Multiple Systems Transactions requiring entry of information partially into multiple systems.

Business Architecture ObservationsBusiness Architecture Observations

15

Many of the Issues Originate From the Current “Business Architecture”

• Current business organization structures are forced by the current design of the systems

• Silo’d operations

• Limited access and interaction paths across silos

• Independent, non-shared processes

• Business process duplication across silos

• Batch processing environment, not real-time

• Complex system development and • release management environment

• Prolonged user training cycles

• Limited workflow and decision automation

The current business architecture, represented on the next page, is constrained by the application systems environment with the following consequences:

Adjudicate Flex Claims

Billing and Collection

of Flex Fees

Customer Support CS5

Associates Support AS5

Accounts Support AT5

Client Validation CV5

Customer Information C5

Request Interpretation RI5

Document Management DM4

(Index and Scan)

Load Levels and Metrics LM4

Duplicated Processes

Unique Processes

Key to‘Silo’ Structure

16

Current Business Architecture

AccessWeb

WebFax

FaxMail

MailWalk-in

Walk-inEDI

EDI

BrokerPolicyholder/ Insured Payroll Account AssociateBank

Application AuditUnderwriting

New Business

Client Validation CV1Customer Information CI1Request Interpretation RI1

Direct/Bank DraftBilling and Collection

Policy Maintenance PM1Customer Support CS1

Associates Support AS1Accounts Support AT1

Workflow Management WM1

Claims

Adjudicate ClaimsPayroll Reconciliation

Payroll Billing

Payroll Accounts Services

IVRIVR

PhonePhone

Call Center

Adjudicate Flex Claims

PolicyContract

Direct Notice

PolicyApplication

ClaimFlexStatementList Bill

Bank DraftQueries

Flex

$

$

Claim Payment

Billing and Collection of Flex Fees

$

$

Receipts

FlexClaim

Document Management DM1(Index and Scan)


Customer Support CS5Associates Support AS5Accounts Support AT5




Mailroom Routing/Scanning-Indexing Call Routing and Service Direction

Interdepartmental Handoffs

$

$

Receipts




Client Validation CV3Customer Information C3Request Interpretation RI3














Load Levels and Metrics LM4 Load Levels and Metrics LM6


Workflow Management WM2

Customer Services

E-mail

E-mailE-mail

Silo’s obstruct effective

processing!

Common processes are

duplicated, multiplied

Handoffs are manually intensive with minimal workflow automation

Unique processes are minimal, but silos are structured around them

17

xxxxx is Designing a Series of Business Shifts

Corporate Goals

People

Market

Product

Services

E-Commerce

Technology

Goals

Customer Service

Today

Aggressive Growth

Small Business Payroll Accounts

Market Leader in Supplemental Health

Services Linked to Products

Inconsistent and Expensive Service

Communication and Internet Billing

Stove-piped Technology

Tomorrow

Consistently Aggressive Growth

Business Rules are Shared

Penetrate Untapped Small Payroll Account Market

More Diversified Product Portfolio

Offer More Value-Added Services

Consistent and Cost-Effective Service

Self Service Transactions / Hubs

Technology Aligned to the Business

Business Rules Reside with the Individual

New Business Focus MarketNew Business Retention

(Persistence) Focus

18

The Future Business Architecture Must Provide the Solutions to Future and Existing Challenges…

Sharing of common business processes and information

Maximized automated workflows and decision making

Range of access paths or entry points for any internal or external user (associate, insured, payroll account)

Interactive (real-time) processing

Business organization structure flexibility

Shorter training/cross training cycles

19

Future Business Architecture Vision

Access ModesWEB Phone E-Mail FAX Mail Walk In EDI/XML

Level 1 Processing (80 of 80/20 Rule process requests)

Level 2 Processing (20 of 80/20 Rule process requests)

Straight Through Processing

Level 3 Processing (Rare Exception Handling)

Disbursements

Common Services

Client Validation

Common Processes

Remittance

Application Entry Change / Inquiry

Confirmation

CPn…

Section 125 AcctSetup

Product Specific Processing

Adj. for LOB

P1 P2 P3 Pn….

Request Interpretation

Document Management/Imaging Invoice Reconciliation

Claim Adjudication

Account Setup

EnrollmentAcct. Specific Enrollment

Transaction Workflow Management

Request Status Tracking and Reporting – Q/A Reconciliation

Workforce Optimization (scheduling, load leveling and overflow management

Operational Management and Performance Metrics

Production Reporting and Decision Support

IVR

Security Validation

Prep (In and Out)

Customer Information

Rate Development Product Development

Application Interfaces

Nat’l Acct Enrollee Payroll Account Broker Agent Policyholder

Nat’l Accounts Ins Carrier BrokersBanksVendors

Multiple contact paths/entry points

regardless of source or media

Workflow and

decision automation can reduce processing time/cost

Shared services and business processes

allow for flexible business operations

Unique business processes are

minimized, componentized

External business rules and shared services reduces

training and improves quality

Business org structure not

forced by systems

20

Application Services

Architecture Strategy

Infrastructure Strategy

Data Management

StrategyOrganization

IT Strategies

Delivery Strategies Transformation Strategies

IT Strategies Chart

The five major IT strategies identified can be categorized as Delivery and Transformation Strategies

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Architecture Strategies


Implement Enterprise Application Architecture

Develop architectural model and standards

Initiate training Select vendor

support frame work

Develop migration plan

Implement Enterprise Data Architecture

Develop architectural data model and standards

Initiate training Select vendor

support frame work

Develop data dictionary

Develop master plan

Implement Enterprise Business Architecture

Provide value proposition to business community

Establish business community working group

Align long-term business strategies with IT dependencies

Develop integrated IT / business architecture

Implement Enterprise Security Architecture

Assess compliance with internal and external standards on privacy, security, and business continuity

Develop and implement standards compliance

Assure hardened assets and perimeter

Develop intrusion response program

Implement Enterprise Infrastructure Architecture

Implement network and systems management framework

Create network operations center

Update technology infrastructure components to support application services strategies, data management strategies, and other architecture and infrastructure strategies

Application Services


Infrastructure Strategy

Data Management


IT Strategies


22

– Enterprise Technology Architecture is the integration of the components of information systems, including hardware, software, and data across multiple business units, functions, processes and/or geographical areas

Refine Business Drivers and Requirements

DevelopDevelopMigration Migration

PlanPlan

Articulate Articulate ArchitectureArchitecturePrinciplesPrinciples

Define Define ArchitectureArchitectureStandardsStandards

Design Design Conceptual, Conceptual, Logical and Logical and

Physical Physical ArchitectureArchitecture

Enterprise Technology Architecture Methodology

InitiativeInitiative

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Architecture Development Process

To obtain a robust Conceptual Architecture, we apply business scenarios, and principles, and

develop some logical and some physical models.

The Logical and Physical models are expanded in later phases and ultimately drive

standards/guidelines and a master plan.

ConceptualStandards/ Guidelines

validates validates

Transition Sequence

Transition Sequence

Cost Cost

Master Plan

Logical

Business

Scenarios

This Phase

Principles

Planning Objective

Intermediate Architecture Activities

Physical

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To-Be xxxxx Conceptual ArchitectureOverview

WORKFLOW

CONTROL

LEGACY

APPS

REFACTORED

LEGACY

TH

IN LA

YE

RT

HIN

LAY

ER

PROCESS CONTROLLOGICLAYER

MODERNBUSINESS

LOGICLAYER

INPUT/OUTPUT and DATALAYER

ACTIVITY

CONTROL

SYSTEM USER

PRESENTATIONLAYER

EXTERNALINTERFACEGUI, EDI,

PRINTERS

To-Be xxxxx Conceptual ArchitectureSnapshot at December, 2003

CICS LEGACY PROCESSING

DA

TA

RE

QU

ES

TS

PR

OC

ES

S

RE

QU

ES

TS

Application Communications Infrastructure

SQL

Applicationfor Designand Build

BUSINESSANALYST

modern

legacy

re-built legacy

MODERNDATA

STORE

LEGACY DATA

STORE


PRINTERS

25


WORKFLOW

CONTROL


PRINTERS

COMPONENTS(Common and

Unique)

BUSINESS OBJECTCOMPONENTS

(Data Abstraction)

LEGACY ON-LINE

NATIVELEGACYBATCH

REFACTORED

LEGACY

TH

IN LA

YE

R(S

YM

BO

LICA

CC

ES

S)

TH

IN LA

YE

R(S

YS

BO

LICA

CC

ES

S)

PROCESS CONTROLLOGICLAYER

MODERNBUSINESS

LOGICLAYER


ACTIVITY

CONTROL

SYSTEM USER

PRESENTATIONLAYER

LEGACY DATA STORE

RDBMS DATA STORE

LEGACY BUSINESS LOGIC

NATIVE SQL, VSAM,ADABASE

1

2

3

4

5.1

6To-Be xxxxx Conceptual ArchitectureSnapshot at December, 2003


DA

TA

RE

QU

ES

TS

PR

OC

ES

S

RE

QU

ES

TS


SQL

InterfaceManager

4.3

4.2

4.1

Applicationfor Designand Build

BUSINESSANALYST


PRINTERS 7

5.2

modern

legacy

re-built legacy

Workflow Control

data

Activity Control

DB

MODERN DB

LEGACY DATA

Circled numbers refer to text slides

which follow

26

Work Flow Rules- Role Assignment

To-Be xxxxx Conceptual ArchitectureClarification of Workflow and Activity Layers

Workflow (Process)Controller

Stage 1 - Role Assignment

Activity Manager


Stage 2 - Load Balance

role1

role2


Stage 2 - Load Balance

Work Item

Activity Complete -

move to next step in Workflow

ActivitySequence

RulesActivity

ActivityActivity

Activity

Process (Workflow) Control Logic and Business Logic

Workflow Control

Business Logic is in the the activity application and in the Activity Manager

rule base

Work Flow Rules - Load

Assignment

Refer to item 4 in the text slides which follow

Sequence Activities

(interactively)

27

Conceptual Architecture Description

1. Actors are users inside the xxxxx perimeter, including end users, business analysts, primary systems administrators. Secondary systems administrators may have more direct access to the system bypassing some of the layers. Users external to the xxxxx perimeter - such as business partners and policy holders are not explicitly addressed in the architecture, but can be accommodated by additional layers on the front end so that thin clients - e.g., web browsers, telephone tones - can be used for access.

2. The external user interfaces are expected to be medium-thin -- with a smaller footprint than a full-logic client/server interface, but a more sophisticated interface than an HTML-only or green screen. Logic which would be included in the interface will likely include screen navigation, some personalization logic, and user-friendly display controls.

3. The process control layer conceptually exists in all applications but may not be manifested as software. Increasingly in the future, process control will become a software automated component - such as a workflow manager. However, human intervention is likely in some applications. If applications are purchased, they may have a process control layer or may need to be interfaced to xxxxx's process control layer. The process controls supported by process control data - which is shown explicitly. Application architectures which do not separate the process control data should be reviewed with caution.

28

Conceptual Architecture Description4. The Business Logic Layer contains most of the detailed business rules.

Conceptual interaction of the Process Control (workflow) layer and the Business Logic (activity) layer is shown on the figure "Workflow and Activity Logic". The Business Logic Layer has three subparts: Activity Control (4.1); Processing Components (4.2); and data access objects (4.3).

4.1. The Activity Control is a layer which controls the flow of logic and navigation within each activity - for example, ordering the tasks needed to execute the activity. It is supported by a rules database. In an ideal application, the layer is explicit (xxxxx, however, may deploy non ideal applications in which this layer is not explicit).

4.2. Process Components contain software logic which executes individual tasks and are launched by the activity controller. Some may be common components shared by multiple applications, while some may be unique to the application (or activity) in which they are invoked.

4.3. Data is accessed primarily through a data abstraction layer which separates the logical name and structure of the data from the physical storage in the data stores.

29

Conceptual Architecture Description

5. Communications to the data stores are primarily through call or file transfer interfaces. The communications is primarily native to the data store.

5.1. For legacy data stores it is often necessary to run legacy logic to access the data due to absence modern logic/data separation architecture.

5.2. In modern systems, there may be an additional thin abstraction layer to de-couple the database physical structure. from the application.

5.3During the extended architecture transition period, some modern front and middle layer applications may interface to more than one type of back end data store.

6. During the extended transition period, data will exist in both legacy and modern data structures. Increasingly over time, modern data structures will dominate. During the transition, detail attention is required to synchronize data which may be logically similar but different in format, syntax and subtle semantics. Temporary processes and operating procedures may be necessary to keep data stores synchronized.

7. A goal of the architecture is to enable use of innovative techniques for making the business logic more accessible to non-programmers. While, the techniques and software for achieving this goal are not fully mature, some may advantageous to xxxxx.

30

Validation using Logical and Physical Models

An architecturally significant business scenario (we used Claims Processing) is used to derive a logical component model *

The logical model is overlaid on the conceptual layered model to see how the concept would work in practice

The layered logical model is overlaid on hardware/system software to see how it would deploy

--------------------------* NOTE: The model does not have to be refined to level of

specification; a approximate/preliminary model is sufficient to validate concept

31

Policy Holder Mail Room ClaimAdjustment

CorrespondenceGeneration

CashDisbursement Finance

Claims Scenario - Hypothetical

claim stuff

disbursement request

reconciliation

book entry

noticerequest

claim

check payment

check payment (mail)

notice

book entry

adjudication

Part 1 -Adjudication

Part 2 -Disbursement

Claims Processing – Hypothetical High Level Business Scenario

sequence view

(numbering maps to Logical Architecture slide which follows)

12

3

11

9

13

12

10

4 - 8notice (mail)

12

12

32

Claims Processing Part 1 (Adjudication) –

Layered Logical Architecture

MAILROOMŸ ScanŸ Route

US PostOffice

AdjudicatorApplication

DatabaseAccess

LEGACY ON-LINE

NATIVE LEGACYBATCH

REFACTOREDLEGACY

LEGACYDATA

PolicyDatabase

TH

IN LA

YE

R(S

YM

BO

LICA

CC

ES

S)

TH

IN LA

YE

R(S

YS

BO

LICA

CC

ES

S)

CONTROLLOGICLAYER

MODERNBUSINESS

LOGIC


Adjudication

Activities

Manager

CALL

FILETRANSFER

CALLE.G.,

SCREENSCRAPING

CALLPolicy Holder

PRESENTATIONLAYER

CALL

NATIVEDATA I/O(avoid ifpossible)

CALL

Mail

claim paper

LEGACY DATA STORE

RDBMS DATA STORE

LEGACY BUSINESS LOGIC

NATIVE SQL, VSAM,

ADABASE1

2

3

4

56

7


Claims Processing Example - Part 1


PR

OC

ES

S R

EQ

UE

ST

S

WorkflowRules

ActivityControl DB


SQL

Mailexceptions

invoke(arguments)

legacyprocessing

(option)

ManualProcessing

exceptionprocessing policy audit

benefits lookupadjudication rules lookup

Adjudication Rules

Database

BenefitsDatabase

8

7

6ClaimsHistory

sequence mapped to conceptual architecture

(numbering corresponds to Sequence Diagram)

33

Infrastructure Strategies

Formalize Capacity Planning and Management

Establish capacity planning authority

Select and implement capacity planning standards, reviews and impact analysis

Evaluate and select vendors tools; capacity and analysis monitoring tools

Incorporate impact analysis in SDLC and release management

Develop Complete Operations Strategy

Conduct operation best practice review

Determine enhancement opportunities and implementation plan

Implement review plan and metrics

Infrastructure Strategy Application

ServicesArchitecture

StrategyInfrastructure

Strategy

Data Management


IT Strategies


34

ITOrganization

Implement CMM Level 2 IT

Organization

Implement release management structure

Implement software configuration management

Implement System Development Life Cycle methodology

Establish metrics and measurement processes

Establish quality assurance group related processes

Enhance overall IT governance process

Implement CMM Level 2 IT

Organization

Implement release management structure

Implement software configuration management

Implement System Development Life Cycle methodology

Establish metrics and measurement processes

Establish quality assurance group related processes

Enhance overall IT governance process

Implement IT Vendor Management Office

Define sourcing options and decision criteria

Develop initial preferred sourcing relationships

Roll out IT Sourcing strategy

Implement IT Vendor Management Office

Define sourcing options and decision criteria

Develop initial preferred sourcing relationships

Roll out IT Sourcing strategy

Formalize IT Resource

Management

Implement a skills management program to define skills, roles, job titles, and job families and formalize for IT

Determine process for resource management

Implement Professional Development Program

Formalize IT Resource

Management

Implement a skills management program to define skills, roles, job titles, and job families and formalize for IT

Determine process for resource management

Implement Professional Development Program

Establish System

Development Group

Formalize system architecture and system analyst roles and groups

Formalize a development team structure to minimize silo structures

Integrate all testing (except QA) into System Development

Establish System

Development Group

Formalize system architecture and system analyst roles and groups

Formalize a development team structure to minimize silo structures

Integrate all testing (except QA) into System Development

Establish Enterprise Program

Office

TBD

Establish Enterprise Program

Office

TBD

IT Organization StrategiesIT Organization Strategies

IT StrategiesIT Strategies

Establish IT QA Group

Define Roles and Responsibilities

Define the Structure and Governance

Define IT QA processes and linkages to other IT processes

Establish IT QA Group

Define Roles and Responsibilities

Define the Structure and Governance

Define IT QA processes and linkages to other IT processes

Establish IT Planning

Group

Formalize IT Planning Group Structure

Define Governance and Process for IT Planning Group

Establish IT Planning

Group

Formalize IT Planning Group Structure

Define Governance and Process for IT Planning Group

Formalize IT Project Office

Define Structure, Roles and Responsibilities

Define Process and Governance

Formalize IT Project Office

Define Structure, Roles and Responsibilities

Define Process and Governance

35

Client # 2– Future State Need– Future State Description– Future State Diagram– How do we get there?– Impact on current state

Agenda

36

Future state descriptionTHE “system of record” for decision support in P&C Sales & Marketing.

A robust analytical & reporting environment that supports standardized, ad hoc and analytical inquires. It provides the mechanisms to report:

– Financial performance & trends– Stakeholder non-financial performance & activities– Stakeholder facts & status

With tools to support:– Reporting and data access– Analytics & modeling capabilities– Intelligence & knowledge development

The environment is designed to satisfy P&C Sales & Marketing requirements, and aligns with L&I requirements where overlaps exist.

37

Future state detail

• Answers operational and analytical questions– Who– What– When

• Targets primary user classes at all responsibility levels– P & C Sales Professional– P & C Sales Management– P & C Marketing Management– Distribution Partners/Channels

• Secondary user classes supported at current capability level– Underwriting– Actuaries

• Information delivered at composite and detail levels targeted to different user class requirements

– Where– How– Why (analytical only)

38

Future state detail• Integrates multiple data sources to provide complete

information views including:– Financial performance– Agency performance planning & management– Sales professional compensation– Sales activity – Sales effectiveness– Distribution Partner management (facts & status)

• Information can be presented & analyzed by:– Distribution partner at any level– Initiative/campaign– Line of business– Distribution channel– Geographic area– Corporate operational areas (e.g., Marketing Area)

39

Future state detail

• Provides standardized reports with ability to tailor to individual needs– Delivered electronically or via paper copy– Reports accommodate navigation between composite

and detail levels

• Provides tools to manipulate data– Analytics– Forecasting, trending and modeling– Data mining

• Support remote workers– Connectivity/bandwidth– Remote desktops & mobile workers– Web enabled capabilities where required

40

Future state detail

• Streamlined access to information– Single point of user access

– Internal & external information

– Open architecture assimilates new business needs

41

Future State Architectural Diagram: Applications Schematic

PresentationArea

P&CDP MgmtProduct Systems

Corporate

Source Systems

Area

Life &Invest.

Others

Data Integration Area

Tran

slation

& R

ou

ting

Tran

slation

& R

ou

ting

OLAP Engine

Data

DM

DM

Cubes

Metadata Foundation

Reports

Data Mart

Systemof

Record

Data Mining

Data Mart

Non YYYYY

42

Future State Architectural Diagram: Applications Schematic

P&CDP MgmtProduct Systems

Corporate

Source Systems

Area

Life &Invest.

Others

Metadata Foundation

Non YYYYY

PresentationArea

Data Integration Area

Tran

slation

& R

ou

ting

Tran

slation

& R

ou

ting

OLAP Engine

Data

DM

DM

Cubes

Reports

Data Mart

Systemof

Record

Data Mining

Data Mart

How Do We Get There?

43

Future State How Do We Get There?

Step # 1: Define User Classes

-Operational Users - … - …

- Analytical Users - …

PresentationArea

44

Future State How Do We Get There?

Step # 2: List End-Users’ Needs at the appropriate level of detail

-Operational Users - … - …

- Analytical Users - …

Reports

Reports

Reports

PresentationArea

45

Impacts of Future State Development on Current State

• If Map goes away, need new solutions for secondary user groups (e.g., underwriting & actuaries)

• If Atlas goes away, need to maintain existing dependencies/integration with other systems, including:– financial reporting system, statistical bureau reporting,

APR, underwriting and actuarial systems, and processing systems such as Home and Auto

• Existing hard-coded, point-to-point interfaces to be replaced/changed

46

Current state – issues & limitations

The future solution addresses the following issues:

• Current system that currently supports P&C premium and loss detail data (ATLAS):– Reaching technical limitations – scalability insufficient– High maintenance costs– Timing – length month-end closing currently maxed out– Flexibility to respond to new business needs is limited by

application integration architecture

• Current reporting system that provides detailed performance data (MAP):– Information is not as current as business would like– Lack of data manipulation, analytical, mining tools– Scalability of application platform

• Information needs to be captured at more granular level by source systems

47

Open Discussion and Questions

Agenda

Documents

Architecture General Discussion & Examples