In the early part of next quarter, I am entering a research phase on a topic I have alluded to many times: techniques for Process Architecture.
One of the key problems that BPM initiatives suffer from is that, even with all the attention, we end up with processes that still have significant issues — they are too inflexible and difficult to change. They become just another version of concrete poured in and around how people work — focusing on control rather than enabling and empowering.
A phrase that I picked up (from a business architect) put it fairly succinctly:
“People tend to work hard to improve what they have, rather than what they need.”
This was then further reinforced by a process architect in government sector on an email:
“The wall I keep hitting is how to think about breaking processes into bite-size chunks that can be automated.”
The problem is that we don’t have good techniques to design (derive) the right operational process architecture from the desired business vision (business capability). Of course, there is an assumption here that there is an effective business vision, but that’s a subject for another line of research.
I am talking about the operational chunks — the pieces of the jigsaw puzzle required to deliver a given outcome. Not how the puzzle pieces are modeled (BPMN, EPC, IDEF, or any other modeling technique), but how to chop up the scope of a business capability to end up with the right operational parts.
For some time there have been rumors about Deutsche Banking having selected TCS BaNCS for some or all of its international subsidiaries. Today, both Deutsche Bankand Tata Consultancy Services (TCS)published a press release announcing that Deutsche Bank will implement TCS BaNCS Core Banking as its new core banking platform for Global Transaction Banking (GTB). The first international subsidiary, which is located in Abu Dhabi, went live three days ago. I discussed the deal with N. Ganapathy Subramaniam (NGS), the president of TCS Financial Solutions.
Our Q3 2010 Global Financial Services Architecture Online Survey shows that 79% of the surveyed financial services firms are either already working on transforming their application landscape or plan to start this effort by 2012 at the latest. The need for greater business agility and flexibility, new business capabilities, and improved ability to cope with changing markets, offer more differentiation, and increase market share are key drivers for a large share of these financial services firms.
Coping with these drivers requires a large amount of architectural flexibility; therefore, architectural flexibility needs to be an integral element of any decision in favor of or against a given architecture or off-the-shelf banking platform within a transformation initiative. Consequently, it does not come as a surprise that 43% of the surveyed firms expect that more than one-third of their business applications will leverage service-oriented architecture and use business services in the next 18 to 24 months and an additional 19% think that more than half of their applications will utilize business services within that time frame.
Similar to the past few years at this time of year, we are in the process of preparing a global banking platform deals report for 2010. As we have done since 2005 to help application delivery teams make informed decisions, we will analyze deals’ structure, determine countable new named deals, and look at extended business as well as key functional areas and hosted deals — all to identify the level of global and regional success as well as functional hot spots for a large number of banking platform vendors.
In the past, some vendors told us that they are not particularly fond of us counting new named deals while only mentioning extended business, renewed licenses, and the like. Why do we do this, and what is the background for this approach? First, extended business as often represents good existing relationships between vendors and banks as it represents product capabilities themselves. Second, we have asked for average deals sizes and license fees for years, but only a minority of vendors typically discloses this information. Thus, we do not have a broad basis for dollar or euro market shares — and I personally shy away from playing the banking platform revenue estimates game.
An Alternative Counting Model Could Be Implemented Easily . . .
Consequently, available data makes counting new named deals the only feasible way to represent an extending or shrinking footprint in the off-the-shelf banking platform market — and thus to also represent customer decisions in favor of one banking platform or the other. Some vendors suggested introducing weights for the size of the bank and the relevance of the seven world regions (for example, North America and Asia Pacific). We could easily do so, but there are problems with this approach: