Text Book: HANDBOOK ON

INFORMATION TECHNOLOGY IN
FINANCE
 Chapter outline
1. Introduction
2. Weaknesses in Software Architectures and
Business Processes
3. A Product Server Based Business Application
Architecture
4. Straight-through-processing
5. Outsourcing
6. Collaboration
7. Operating System Independency
8. Database System Independency
9. Deployment
10. Blueprint
11. Repository
12. Guidance to STUDENTS 4-2
 Chapter-03:
Product Management Systems in Financial
Services Software Architecture
1.Introduction
• Consolidating and
modernizing software
architectures in the
Financial Services industry
has become a number one
issue on the current
agenda of Chief
Information Officers
(CIOs) 4-4
Introduction…continued
Common software
architectures have matured
over the past 20 years or
more but the business itself
has changed so seriously that
many companies, especially
insurance carriers have
architectures that lag behind
the business innovation.
4-5
 2.Weaknesses in Software Architectures and
Business Processes
1) The Product Development department
has comprehensive product knowledge
but lacks of a clear method how to
define a financial services product.
2) Process weakness have not only been
identified within the product
implementation process moreover the
software deployment is also critical.
3) A lack of integration and automation is
often a symptom of a more substantial
weakness. 4-6
 Exercise Question-01
01. What are the Weaknesses in Software Architectures and Business Processes ?
Answer:
1) The Product Development department has comprehensive product knowledge but lacks of a clear method how to define
a financial services product.
2) Process weakness have not only been identified within the product implementation process moreover the software
deployment is also critical.
3) A lack of integration and automation is often a symptom of a more substantial weakness.
3. A Product Server Based Business
Application Architecture
CLAIMS
MNANAGEMENT
INTERMEDIARY-1
CONTRACT SYSTEM
MANAGEMENT
SYSTEM

INTERMEDIARY-2
PRODUCT SERVER

INTERMEDIARY-N
COMMISSION & POINT OF SALE/
CHARGE SYSTEM SERVICE SYSTEM
4-7
 Exercise Question-02
02. List of components in a Product Server
Based Business Application Architecture?
ANSWER:
1) Contract Management System
2) Claims Management System
3) Commission and Charge System
4) Intermediary-1,2 and n
5) Point of Sale/Service System
6) Product Server
 Exercise Question-03

03. What are Process and Services?

ANSWER:
1. Quotations

2. Offers/Proposals

3. Contracts

4. Claims

5. Assistance Services
4. Straight-through-processing
The standardized
‘rollout of services’
enables a positive
shift in process
quality and speed.
 Exercise Question-04

04. What is Straight-through-processing?

Answer:
The standardized ‘rollout of
services’ enables a positive
shift in process quality and
speed.

4-8
 5. Outsourcing
Outsourcing is a trend among FS
companies and we are sure
that our architecture is the key
to keep major parts of the core
business know-how in-house.
 Exercise Question-05
05. What is Out sourcing?
Answer:

Outsourcing is a trend among FS

companies and we are sure that
our architecture is the key to keep
major parts of the core business
know-how in-house.
 6. Collaboration
Using a product
management system is also a
sophisticated way for a
collaborative product
development. It means
joining or working together
with the subsidiaries or
clients.
4-9
 Exercise Question-06
06. What is Collaboration?
Answer:

Using a product management

system is also a sophisticated
way for a collaborative product
development. It means joining
or working together with the
subsidiaries or clients.

4-11
7.Operating System Independency
There are many operating
systems like, Windows, Linux
and Unix etc. But we state that
the runtime environment has to
use operating system
independent technologies when
different platforms in different
companies have to be served.

4-12
 Exercise Question-07

07: What is Operating System

Independency?
Answer:
There are many operating systems like,
Windows, Linux and Unix etc. But
we state that the runtime
environment has to use operating
system independent technologies
when different platforms in different
companies have to be served.
8.Database System Independency

The technologies for data storage

also differ according to which
application/component is used.

The client may use another file

system other than DB/2 database
or MySQL database.
 Exercise Question-08
08. What is Database System
Independency?
ANSWER:
The technologies for data storage also
differ according to which
application/component is used.

The client may use another file system

other than DB/2 database or MySQL
database.
 9. Deployment

Any advantages gained from

the support of different
operating systems, databases
and interfaces get lost if the
product data itself cannot be
efficiently distributed.
 Exercise Question-09

09. What is Deployment?

ANSWER:
Any advantages gained from the
support of different operating
systems, databases and interfaces
get lost if the product data itself
cannot be efficiently distributed.
 10. Blueprint

The blueprint of the future IT

architecture displays the
companies specific
interpretation of the product
server based business
application architecture.
 Exercise Question-10

10. Define Blueprint

ANSWER:
The blueprint of the future IT
architecture displays the
companies specific interpretation
of the product server based
business application architecture.
 11. Repository

The repository is vital and

comprises the entire product data.
In general the design of the
repository has to meet the current
and future business requirements.
 Exercise Question-11

11.What do you mean by Repository?

ANSWER:
The repository is vital and comprises
the entire product data. In general
the design of the repository has to
meet the current and future
business requirements.
 10. GUIDANCE TO STUDENTS
1) All students are required to BUY and
READ the TEXTBOOK
2) All the Exam Questions to be
prepared by the Students from the
text book only.

4-15
 al l
y o u
an k
Th

4-16