Adapt your core banking system better, faster, cheaper · PDF fileSwitching from traditional...

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Adapt your core banking system better, faster, cheaper

Temenos, Nordea, Accenture

19th May 2016

#TCF2016

1. The Design Framework and Design Studio - David

2. Benefits of DevOps & Continuous Integration - Pawel

3. Design Studio used at Nordea - Kenn

Agenda

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The Design Framework and Design Studio

Temenos

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The business challenge



2/d

Banks

11.6/s 2-3/y


130/w

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Problems with the traditional approach

Cost of changes

Risk of changesUnresponsive

No separation of design and live environment

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Temenos’ Design Framework

Check in/out

Packages of changes


Developmentenvironment

Testingenvironment

Productionenvironment

Separation of design and live environment

Source code repository(3rd-party SCM)

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Temenos’ Design Studio

Eclipse-based Import modelsfrom runtime

Model-drivendesign

Graphical designers

Versioning & tracking

Live update


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Design Studio: a single place for evolving & designing the bank

Integration Events

APIs Webservices

BPM

Core Banking Development

Core Banking

Inte

grat

ion BPM

Core Banking Change Management

Interaction

Wealth Front Office

Wealth Front Office


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Right architecture

Benefits of Temenos’ solution

Adapt business functionality:

Sources of figures: “State of DevOps”, Puppet Labs, 2015; “DSM significantly reduces development time”, J. Hammond, MetaCase, 2008

Design Framework

10x faster

30x more

50% fewer

failuresfrequently

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Model-driven DevOps, CI


Accenture Architecture Services

Continuous Integrationfor Core BankingPresented by Paweł Wesserling


IT organizations typically spend more time testing, deploying and releasing software than designing and building it

A high proportion of production incidents are a result of human errors in the manual release of software

IT Development and IT Operations have different values and ways of working that are often not in alignment

“IT Speed: The Crisis and the Savior of the Enterprise,” A Forrester Consulting study commissioned by Chef, December 2013

11Copyright © 2016 Accenture All rights reserved.

Challenges . . . Only 17% of IT teams can deliver fast enough*

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What if you could . . .

Copyright © 2016 Accenture All rights reserved.

• Tests executed in representative environments automatically on check-in

• Elimination of regression defects early in the lifecycle

• Changes introduced real time and trivial to revert

• Managed roll-out of new features via A/B testing to identify the impact of releasing it

• New features introduced in days or hours, not months

• Functionality is released on-demand, independent to release cycles

Experiment without regret

Release with confidence

Release at pace

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Continuous IntegrationCI is part of DevOps concept - the intersection of Development, Quality Assurance, and Operations that focuses on automation, quality, and agility in delivery.


Development Code Review Build Code

Quality Deploy TestingThis image cannot currently be displayed.















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High Performance with DevOps


Zero-touch build and deploy

Cohesive teams with shared objectives

Embrace failure, recover automatically, degrade gracefully

Continuous Improvement

Strong source control

Test early and often

Automate everything (in pipelines)

Fine-grained service architecture (API-first)

Lean principles and continuous delivery of value

Experiment without regret

Elastic supply of cloud resources

Optimizing Development and Operations to enable the realization of business goals through rapid feedback and flexible IT


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How does it work in a real life?

THIS IS THE DEVELOPERS STORY

00:00 My code is completed! Or is it?Let’s do verification build!

00:05 My code builds and passes unit tests. Ready! Or am I?Let’s deploy and check!

00:35 My code deploys well, I can see that the functionality feels the same as on my workstation. Ready!Let’s request a merge!

00:40 Peer review… Thankfully reviewers can trace all requirements, code commits and see builds results.



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What goes next?

00:00 Release build is triggered on time or event.00:05 Code compilation and packaging completed.00:17 Deployment to verification environment.00:19 Sanity tests are passed - system responds well.00:20 Release candidate is published. Code is tagged.00:40 Deployment to first common test environment.01:10 Automated regression tests are passed.01:30 Deployment to higher, integrated environment is done.

THIS IS THE RELEASE MANAGER STORY


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Deliver faster and with lower risk by implementing DevOpsBenefits





Time To MarketReduce time to

market by up to 50% through streamlined

software delivery

ThroughputIncrease team

productivity and deliver new functionality faster

ResilienceOperational stateis more stable and

secure and changes are systematically auditable

RiskEarly identification of quality concerns, reduction of defects across the lifecycle

up to 30%


Design Studio in NordeaHow Design Studio fits in the Nordea development landscape

Kenn Pedersen, 19/05/2016


Nordea and theSimplification Programme

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Nordea is the largest financial services group in the Nordics

11 million customers- Approx. 10 million personal customers- 590 000 corporate customers,

incl. Nordic Top 500

Distribution power- Approx. 650 branch office locations

Financial strength- EUR 10.1bn in full year income (2015)- EUR 679.9bn of assets (Q3 2015)- EUR 30.0bn in equity capital (Q3 2015)- AA credit rating- Common equity tier 1 capital ratio of 16.3% (Q3 2015)

EUR ~40bn in market cap- One of the largest Nordic corporations- A top-10 European retail bank

Nordea = Nordic ideas

One building block in the Simplification Programme

• Focus all development activities towards supporting simplificationSimplification compliance

Initial simplification

• Customer information, savings, deposits, transaction and loan products in all business areas

Core Banking Platform (CBP)

• Domestic, international and SEPA payments for all business areas New Payment Platform (NePP)

• Consolidate the existing data warehouses into one to meet both regulatory requirements and changing customer demand

Group Common Data (GCD)

• Simplification of products, data and processes

• Simplify the system landscape and end-to-end processes outside CBP, NePPand GCD

Simplification by cluster

Legal Structure Programme

• Merger of Norwegian, Danish and Finnish subsidiary banks to parent company to create a more efficient structure that decreases administrative complexity

The Core Banking Platform, CBP

A single Nordic platform that delivers the core functions of banking, i.e. product management, taking deposits, making loans and linking customers to front, middle and back office functions

CBP program will replace the old banking platforms, reduce IT complexity and also transform the related processes, products, governance and culture


Design Studio in Nordea


• The development requirements

• The local development environment

• Design Studio in Nordea

• Switching from traditional T24 development


Kenn Pedersen

• Chief IT Developer

• 20+ years IT experience

• CBP Role: Delivery Stream Tech Lead

The development requirements

Kenn Pedersen • 19/05/201625 •

Traceability• Full history on all changes• No possibility to make changes directly to a central T24 Server

Verification• All changes should verified (Build & Compliance) and tested• Review to ensure standards are followed and “Best solution” made

Release• Continuous delivery with a limited human interaction• Be able to restore any production version at any point in time


The development toolset



Task description

Development

Verification

Review

Release

The toolset is covering:• Task management• Documentation• Versioning• Quality and Test• Build and Release

It’s important the selected toolset:• supports the different steps and profiles• integrates and share information• provides overview across the tools• keeps track of changes

The development tool should fit into this setup!

The traditional T24 development


Central server

T24

T24Database

Local computer

InternetBrowser

T24 Toolbox

The development / configuration was made on a central server

This setup required manual work and customized delivery applications to achieve our development requirements!

High complexity and manual work !

Local T24 workstation development


Task description

Development

Verification

Central server

T24

T24DatabaseVersion

ControlSystem

Release of changes

• Aligned with the development requirements in Nordea.• Similar to the development process commonly used in Nordea, and integrates

well to the tools already used in the delivery chain.• Protection of central server for breakdown due to untested development.

Controlled process and supported by the toolset in Nordea !

T24

T24Database

DesignStudio

Workstation


Update of the local T24 workstation


Task description

Development

Verification

T24

T24Database


DesignStudio

Workstation

VersionControlSystem

• Update the local environment with newest changes• Possibility to restore local T24 to a specific release• On-going development can be shared• Protect local development by the freedom to choose when to update (stability)

Distribution of changes

Update

The usage of Design Studio



Design Studio

Version ControlSystem


LocalT24

Version EnquirySubroutine

Customisation

Data Record

Configuration

IRIS

Development

Java

UTF

Test

Unit testUpdate Release

Design Studio supports the development productivity


• Development process• All artefacts are single items which can be versioned independently• The review process can use the artefacts (source) directly


• Design time development• The graphical UI can be used without deep development skills• Most of the artefacts can be made directly in Design Studio• Local development is updated directly with the changes

Design Studio in our technology landscape


• Based on Eclipse IDE• Eclipse is widely used in Nordea (huge experience)• Easy to extend with own-developed plugins• Integrates to commonly used tools (ex. Version Control, Build)


• Reuse of the development landscape• The development landscape based on Eclipse can be used directly• Can be distributed and packaged in the existing distribution software• Existing development (done in Eclipse) can be performed

Switching from the traditional T24 development


Release of changes• Release through the version control system• No change access to central servers• Changes are picked up automatically

All in Version Control will end in production• Only release changes for production to VCS• Test data need another release process

Protection of critical areas• Changes to critical tables require special approval process• Reject changes to restricted areas


Education• Make the changes design time in a new tool

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Conclusion

David Aguirre,Temenos


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Conclusion

Adapt better, faster, cheaper

Fast and easy to implement

A single place for evolving the bank

For big and small banks

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Thank you

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