Eclipse Finance Day

Business Architecture View Public

Business Capability Modeling

Developments since last presentation in 2008

Christian R. Meier
CTO, WM&SB Application Architecture

October 13, 2012

Introduction

• At Eclipse Banking Day 2008 in NYC an approach for Business Capability Modeling
based on ECore has been demonstrated.
• The underlying assumption was that capabilities are explored in a top-down
approach where root capabilities are successively decomposed into finer grained
structures.
• This decomposition approach has various shortcomings:
– Different parts of the tree had a different depth
– Different parts of the organization have a different view on the root model

• The Banking Industry Architecture Network (BIAN) has managed to create a

common understanding of the atomic capabilities and some specific value chains,
allowing for different groupings and thus different views on capability landscape.
• Atomic capabilities cannot be further decomposed without loosing the core
characteristics of a business capability.
• In this sense a switch from top-down decomposition of root capabilities to bottom-
up grouping of atomic capabilities has been made.

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Business Architecture - Extract
Business Capabilities and Concepts

• Business Capability • Business Concept

– A business capability is a particular ability or
capacity that a business may possess to achieve a
specific purpose or outcome. It describes what
the business does (outcomes and expected
service levels). A business capability abstracts
and encapsulates the organization with the
people and their roles, processes, procedures,
and technology associated with a given business
function into a simple building block. It is not
concerned with how the business function is
being achieved.
– Remarks:
– Business capabilities are distinct from processes.
– A business concept represents a concept
originating from business. It represents ‘things’
(concrete or abstract) that exist or events that
transpire the business environment. The business
concept model captures the most important
types of objects represented as business concepts
and the relationships among the objects in the
context of the business. Business concepts should
be only minimally attributed with essential
characteristics as required in software
requirements, use cases, business capabilities, or
business processes.
+subCapabilities 0..* refine

Capabilities are what a business does to reach 0..*

the desired outcomes, whereas processes describe 0..*
Function Part
how it is being done, using what resources, etc. «Technical Concept» depends «Technical Concept»

– A business capability does not impose any Business Capability 0..* {is one of [<<manages>>; 0..* Business Concept

<<processes>>;<<uses>>]}
constraints on how it is to be realized (e.g., +from +to 1 *
through IT systems or human interaction).
0..* 0..* consists of
{ordered}
«Technical Concept» «Technical Concept»

[based on Object Management Group's Business Business Capability Connector * ValueChain

Architecture Working Group ]

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Banking Industry Architecture Network (BIAN)
The BIAN Service Landscape 1.6
Reference Data
Party
Party
Party Data Management
Party Profile
External Agency
External Agency
ATM Network Management
Credit Agency Service Agmt
Syndicate Management
Branch Network Operations
Correspondent Bank Rel Mgmt
Correspondent Bank Data Mgmt
Sub Custodian Agreement
Product Service Agency
Product Broker Agreement
Branch Currency Management
Branch Currency Distribution
Contractor/Supplier Agreement
Product Inventory Item Mgmt
Product Inventory Distribution
Market
Market Data
Data
Market Feed Administration
Market Feed Operation
Market Information Mgmt
Financial Market Analysis
Financial Market Research
Quantitative Analysis
Market Data Dissemination Adm
Market Data Dissemination Ops
Financial Instrument Maint.
Counterparty Administration
Credit Agency Service Ops
Reference/Directory Mgmt
Product
Product Management
Management
Product Design
Product Combination
Product Deployment
Product Training
Product Quality Assurance
Product Pricing Facility
Sales & Service
Channel Specific
Channel Specific
Call Center Management Business Development Policies
Branch Network Mgmt
E-Branch Management
PBX Management
Call Center Operations
E-Branch Operations
PBX Operations
ATM Network Operations
Prospect Campaign Execution
Customer Campaign Execution
Cross
Cross Channel
Channel
Servicing Position
Servicing Event History
Servicing Activity Analysis
Contact Routing
Contact Dialogue
Interactive Help Product Expert Sales Support
Customer Relationship Mgmt
Customer Product Coverage
Customer Behavioral Insights
Marketing
Marketing
Consumer
ConsumerProducts
Business Development
Brand Management
Advertising
Consumer
Consumer Loans
Promotional Events
Prospect Campaign Mgmt
Prospect Campaign Design
Customer Campaign Mgmt
Customer Campaign Design
Customer Surveys
Sales
Sales
Prospect Management
Card Billing & Payments
Offer Management
Sales Planning
Underwriting
Commission Agreement Consumer Services
Consumer Services
Commission Transaction
Product Matching
Bank Drafts & T Checks
Customer
Customer Mgmt
Mgmt
Consumer Investments
Customer Agreement
Customer Credit Rating
Account Recovery
Customer Event History
Servicing
Servicing
Servicing Issue
Case Management
Case Resolution Analysis
Payments Execution
Customer Case
Card Case
Cash/Currency Inventory
Collateral Asset Administration
Operations & Execution
Products Financial
FinancialMarkets
Markets
Loans &
& Investment
Investment
Deposits
Deposits Management
Management
Secured Loans Investment Portfolio Planning
Unsecured Loans Investment Portfolio Analysis
Consumer Finance Investment Portfolio Mgmt
Current Account eTrading
Deposit Account
Wholesale
Wholesale Trading
Trading
Cards Trading Book Oversight
Cards
Card Facility Dealer Workbench
Card Authorization Market Making
Card Capture Assisted Trading
Program Trading
Merchant Relations Market Trading
Order Management
Trust Services Market Operations
Market Operations
Remittance Services Mutual Fund Administration
Currency Exchange Hedge Fund Administration
Unit Trust Administration
Brokered Product Order Allocation
Clearing & Settlement
Securities Fails Processing
Trade/Price Reporting
Custody Administration
Customer Entitlement Admin.
Securities Valuation
Cross
CrossProduct
ProductOperations
Operations
Payments Account
Payments Account Management
Management
Cash Account Record
Wire Room Reward Points Account
Cheque Processing Accounts Receivable
Account Reconciliation
Counterparty Risk
Position Management
Collateral
Collateral Fraud Detection
Administration
Administration Transaction Engine
Collateral Management
Collections
Check http://bian.org/ for more details regarding the service landscape
Analytics
Bank
Bank Portfolio
Portfolio &
& IT Management
Corporate
CorporateProducts
Products Treasury
Treasury
Treasury Management
Treasury Administration
Trade
Trade Finance
Finance Asset Securitization
Letter of Credit
Factoring
Bank Guarantee
Asset & Liability Management
Trade Finance Services
Bank Portfolio Analysis
Bank Portfolio Administration
Corporate Banking
Corporate Banking Stock Lending/Repos
Products
Products
Corporate Credit Facility
Models
Corporate Loan Models
Market Risk Models
Cash Mgmt & Account Svs
Valuation Models
Cheque Lock Box
Gap Analysis
Credit Risk Models
Corporate
Corporate Financing
Financing Liquidity Risk Models
&
& Advisory
Advisory Services
Services Economic Capital
Corporate Finance Services Business Risk Models
M&A Advisory Services Customer Behavior Models
Corporate Tax Advisory Svs Fraud Models
Public Offering Credit/Margin Policies
Production Risk Models
Private Placement
Operational Risk Models
Business
Business Planning
Planning
Segment Plan
Product Portfolio
Customer Portfolio
Branch Portfolio
Channel Portfolio
Competitor Analysis
Market Research
Market Analysis
Regulations &
Regulations &
Operational
Operational Services
Services Compliance
Card Issuance Compliance
Guideline Compliance
Billing Services
Regulatory Compliance
Rewards Points Administration
Compliance Reporting
Consolidated Customer Activity
Fraud/AML Resolution
Financial Accounting
Business Support
IT Management Finance
Finance
IT Policies & Plan
Financial Statements
IT Arch Stds & Guidelines Financial Control
Systems Administration Financial Compliance Resolution
Development Environment Tax Administration
System Development
Production Release
System Deployment Human
Human Resource
Resource
Systems Operations
Management
Management
HR Policies & Plan
Platform Operations
Employee Assignment
Systems Help Desk
Employee Record
Systems Assurance
Internal Network Operations Employee/Contractor Contract
Employee Certification
Employee Assessment
Non
Non IT
IT and
and HR
HR Employee Payroll & Incentives
Enterprise
Enterprise Services
Services Travel & Expenses
Legal Assurance Employee Access Profile
Internal Audit Employee Benefits
Security Services Workforce Training
Security Assurance Recruitment
Supplier Management
Procurement
Company Billing & Payments
Knowledge
Knowledge &
& IP
IP
Fixed Asset Register
Management
Management
Management Manual
Intellectual Property Portfolio
Buildings,
Buildings, Equipment
Equipment Knowledge Exchange
and
and Facilities
Facilities
Property Portfolio
Site Operations
Corporate Relations
Corporate Relations
Corporate Communications
Site Administration
Corporate Alliance/Stakeholder
Equipment Administration
Corporate Relationship
Equipment Maintenance
Regulatory & Legal Authority
Utilities Administration
Investor Relations
Building Maintenance
Business
Business Direction
Direction
Business
Business Command
Command
& Corporate Strategy
& Control
Control Corporate Policies
Organizational Model
Product & Service Policies
Business Unit Budget
Business Architecture
Business Unit Financial Analysis
Continuity Planning
Business Unit Financial Ops
Business Unit Accounting
Business Unit Management Document
Document Mgmt
Mgmt &
&
Business Unit Operations Archive
Archive
Document Services
Archive Services
Correspondence
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Assembling the BIAN or another Capability Landscape
From Decomposition to Composition
• BIAN manages the set of service domains (business
Business Areas are formed by a broad set of capabilities and
Business
BusinessArea
Area responsibilities and are an element at the highest level of the capabilities) which are atomic in the sense that
hierarchy used to decompose the functions of financial institutions.
This decomposition is primarily driven by the business
they cannot be further decomposed without
understanding and complemented by application and information- loosing the quality of a capability.
specific needs.

Business Domain
A Business Domain represents a coherent set of capabilities and
responsibilities. It is an element of the functional decomposition of
• Any further decomposition would yield generic
the banking business functions in the context of the Service functions (e.g., 'order management') which
Landscape. Business Domains are linked to certain skills and
knowledge, which are clearly identifiable in the banking business. nevertheless may be interesting in certain models.

A Service Domain represents an ‘atomic’ logical design. Atomic
Service Domain means that a BIAN Service Domain represents the smallest
practical capability or functional partition that can be service-
enabled as a discrete and unique business capability.
• The landscape is composed using the atomic
business capabilities in the way which serves the
needs of the target organization.

BIAN Service Landscape Sample Business Capability Map

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Contact Information

Christian Meier
christian-r.meier@ubs.com

UBS AG
Postfach
8098 Zürich
Tel. +41-44-234 11 11

www.ubs.com