IS 604: Contemporary Issues in IS Banking Enterprise Systems€¦ · Technical support on: Advanced...

Chair of Information Systems IV (ERIS)

Institute for Enterprise Systems (InES)

IS 604: Contemporary Issues in IS

Banking Enterprise Systems

Prof. Dr. Alexander Mädche

Chair of Information Systems IV

Institute for Enterprise Systems

Lecture

supported by:

Agenda – Session III

Agenda

1 B2tec Company Overview

2 Introduction to SAP Banking Services

3 SAP Business Partner

4 Contract Management

5 Product Configuration

6 Financial Conditions & Pricing

7 Order Management

8 Item Management & Payment Services

9 Posting Control Management

IS 604 Banking Enterprise Systems

2


Agenda

10 Settlement Management

11 Accounting Integration

12 Bank Statement

13 Summary: Future Perspectives in SAP Banking Services


3

b²tec: Company Overview 4

b²tec is an SAP consulting

company focused in the area of

SAP Core Banking systems

Head Office: Germany, Bad Vilbel

Branch Offices: Canada, Slovakia, India, Switzerland

Year of foundation: 2001

Number of employees: ca.100

Executed Projects: Europe, the Americas, the Middle

East, Asia, and Africa

Business Lines: Consulting, Development, Trainings


b²tec: Our self-image 5

We are leading provider of

Core Banking Services in SAP

and expanding permanently

our business activities

Growth

b²tec – the core banking specialists

We are providing know-how

for financial institutions and

ensuring competitive advantage

of our customers

Efficiency

b²tec – the know-how company

We are oriented exclusively on

the aims of our customers and

building long-term relations

Culture

b²tec – your trusted advisor


b²tec: Our Value Creation Process 6


b²tec: Our Business Expertise and Competence 7


b²tec: Our Business Expertise and Competence 8

Expert advise on:

Implementation of

core baking systems

Upgrade and

Release Changes

Data Migration

IT-Strategy

Technical support on:

SAP Application

Development

SAP Enhancement

Development

Interfaces

Maintenance

Software

Architecture

Advanced Trainings and

Workshops on:

1. SAP Standard

Trainings

• SAP ERP

• SAP Banking

Services

• All platforms

2. Custom Trainings -

Individually tailored

workshops and

trainings to address

customer specific

needs and objectives

Consulting Development Training


b²tec: Roles and Career Model 9


b²tec: Our Business Activity 10



Agenda

1 B2tec Company Overview

2 Introduction to SAP Banking Services

3 SAP Business Partner

… …


11

Introduction to SAP Banking Services


12

Understand key concepts of Service

Oriented Architectures and discuss SOA in

Banking Services from SAP

Provide historical insights on SAP Banking

Services development

Understand the integration of Banking

Services from SAP with other SAP

components and third-party solutions

GOALS OF THIS UNIT

13

Agenda: Introduction to SAP Banking Services

Agenda

1 Service Oriented Architecture

2 Historical Development of SAP Banking Services

3 Integration of SAP Banking Services


Service Oriented Architecture 14

Motivations for SOA

Changing business environment:

from Value chain to Business network

New values and strategies:

Customer-Centric

Connect and Collaborate

Relationship-driven

Shared risk

Expectations from IT and IS:

Efficiency Insight Flexibility


Service Oriented Architecture


15

Service Oriented Architecture (SOA) is a software architecture that is based on principle of

reusable, open standard services that provide connection of back-end applications with one

another and with front-end applications.

A service is defined as any kind of functionality providing that it uses fixed interfaces and open standards . It

consists of a contract (interface definition), one or more interfaces and an implementation.

Application Application Application


Integration Infrastructure



Service Oriented Architecture Component Oriented Architecture

Service Interface (specific applications

are connected with specific interfaces, that

usually cannot be reused )

Service Oriented Architecture 16

Concept of service-oriented architecture (SOA)

Integration

Infrastructure

Back-End Applications

Channel Applications

Fro

nt-

End

Colla

bora

tion

and P

rocess

Managem

ent

Busin

ess F

unctionalit

y

Business Drivers

Speed of change

Efficiency

Differentiation

Strategic IT

Response

Layered

Architecture

Service-based

integration


Service Oriented Architecture: Service Cut 17

Service Cut Determination of the right cut for layers, business objects or components is one of the main architectural

challenges. The right cut solely depends on the individual case, however there are following guidelines:

Front end / Multi Channel

Collaboration / Process Management

Business

Functionality

Business

Functionality

Requirements influencing

architecture:

Openness

Extensibility

Flexibility

Higher

Abstraction


Where to cut vertically:

• Business objects to business objects

• Data versus process

Where to cut horizontally:

• Business objects to processes

• Business objects to UI

• Process to UI


Service Cut/ Layering of Architecture Access from the user perspective occurs by means of the uppermost layer that addresses different channels

and requirements users and devices need. Although partial user access can take place on the lower

levels as well.



Business

Functionality

Business

Functionality

Business user and channels should use

decoupled UIs only

Customizing and configurations will

require direct UIs as well

UI should contain as few process and

business logic as possible


User Access


Service Cut/ Layering of Architecture The main idea of three layered landscape is to use the middle layer as the de-facto for process orchestration

instance.



Business

Functionality

Business

Functionality

Process logic and Orchestration resides

mainly in the middle layer

As much of process logic as needed in the

Business Objects layer

As little of process logic possible in the UI

layer


Process

Logic


Service Cut/ Layering of Architecture The business objects are forced to reside in the lowest layer, the rationale behind is that business objects, in

the sense of a self-contained entity, should be able to manage to manage its own consistency as much

as possible.



Business

Functionality

Business

Functionality

Business objects and logic resides in the

lowest layer when possible

Extensibility and adaptation to existing

landscapes force business objects into the

process layer

Business objects persistency should not

reside in the UI at all


Business

Objects and

Logic

Service Oriented Architecture. Service Cut 21

Service Cut/ Layering of Architecture Examples of horizontal cuts: where the process logic resides?

# 1: set of data objects that completely controlled and

managed by a central business process layer

# 2: thick and rich set of data objects that were not

designed to communicate with each other; process flow

is typically hard coded in the application

# 3: balanced approach


Service Oriented Architecture: SAP BaS 22

Banking Services from SAP

is based on the concept of Service Oriented architecture (SOA), which enables business logic and

data usage from different Applications, Databases and Upstream Systems.

Enterprise SOA (SAP term)

is a SAP used term to transport its idea on how SOA should be deployed in enterprises. Enterprise

SOA stands for a business-driven software architecture that introduces to SOA fundamentals also

business semantics. It combines the technologies, standards, and approaches of a service-

oriented architecture with a common business language that SAP co-defines with its ecosystem in

the form of enterprise services

Enterprise services (SAP term)

are services that have well defined business functionality and published by SAP in Enterprise

Services Repository. SOA puts the focus on the reusability of the business functionality, and thus,

supports enhanced agility in responding to changes in business process requirements.

Example: service name for functionality to create business partner in SAP Bank Analyzer

“FinancialInstrumentsAnalyticalReferenceDataBusinessPartnerEventIn”

The Enterprise Services support following tasks: • Data delivery from upstream systems

• Supply of third-party solutions or support of own solutions with result data

• Integration of user interfaces

• Integration of reporting tools


Service Oriented Architecture: SAP BaS 23

Concept of service-oriented architecture (SOA) in

SAP Banking Architecture

Fro

nt-

End

Colla

bora

tion

and P

rocess

Managem

ent

Busin

ess F

unctionalit

y

Integration

Infrastructure

Backend

Enterprise Service Bus

SAP Transactional Banking SAP Analytical

Banking

Partner

Solutions

Online

Banking Branch

Call

Center …

Consequence for SAP

Transactional Banking

ability to integrate with

any channel

ability to work with any

integration infrastructure

ability to integrate with

any other backend

application

ability for granular

deployment of business

functions as needed in

the specific customer

situation


Service Oriented Architecture: Modeling and Design 24

Modeling & Design Banking Services from SAP uses modelling in three dimensions: architecture, business, and development.

Business and development models are translated to software by models adhering to the architecture

models.


Service Oriented Architecture: Modeling and Design


25

Modeling and Design Tools: Example of Business Process Modeling A business process can be defined as a chronological and logical sequence of activities to perform a corporate task that

generates benefit or value for the recipient in terms of transformation of material or information.

This includes:

Processes within a company and processes across the borders of companies

Overall End-to-End processes and parts of processes

System-supported processes and purely manual processes

Data flow, activities, roles, and resources within a process



26

Modeling and Design Tools: Example of Architecture Modeling in ARIS An architecture is a static view of deployment units, process components and business objects.



27

Modeling and Design Tools: Example of Service Definition and Development in ESR Enterprise

Services Repository

28


Agenda





Historical Development of SAP BaS 29

SAP offers 2 global solutions for Banking: Banking Modules within ERP and

separate platform – Banking Services from SAP

The development of the first solution began in early 90’s with vertical integration

of banking solutions into standard ERP. As a next SAP Banking Services started

to be developed in parallel.

From October 2012 SAP Banking Services version 8.0 is in general availability

Low-/ middle sized

companies

Large

companies

SAP ERP

Banking module

SAP Banking

Services



AM – Account Management

DM – Deposit Management

MCM – Master Contract Management

CMS – Collateral Management System

PCO – Posting Control Office

CYT – Capital Yield Tax

BaS – Banking Services


Banking Services from SAP starting from release 6.0

cover loans, deposits, master contracts, collaterals,

posting control, pricing, and capital yield tax.


Functional Areas covered by BaS 8.0

Banking Services 8.0


32


Agenda





Integration of SAP Banking Services 33

The current sub-unit provides sample integration scenario for Loans Management and Deposits

Management on Banking Services with other components to enable end-to-end processes.

Present graph depicts the components from SAP required for sample integration scenario:

The integration details for each component are shown in the next slides.

Account

Origination

SAP CRM

Payment

Transaction

System

SAP PE

Open Item

Management

System

SAP FI-CA

Business

Intelligence

SAP NetWeaver

BW

General

Ledger

SAP GL

Collateral

Management

Bank

Analyzer

Withholding

Tax SAP

CYT

Management



Sample Integration Scenario to Customer Relationship Management

SAP CRM provides the infrastructure to configure the account origination process for various banking

services. An example is preconfigured for loan product.

SAP CRM

Account Origination

banking services from SAP

Account Management



Sample Integration Scenario to Payment Transaction Systems

PTS enables to manage payments from/to external senders and recipients that are either accounts on the

other product system within the same financial institution or other financial institutions.


Account Management SAP PE



Sample Integration Scenario to Reporting

The transactional and master data can be extracted to SAP BW, transformed and reported.


Account Management

SAP NetWeaver

BW



Sample Integration Scenario to Accounting

The given example uses Bank Analyzer as a subledger system to transfer the data to general ledger. The

detailed integration scenario for accounting will be discussed in the separate unit.

SAP ERP

General Ledger

banking services SAP

Account

Management Bank Analyzer Transfer Transfer



Sample Integration Scenario to Correspondence Management SAP provides Correspondence Tool and Print Workbench, however these tools have only limited functionality

and required third-party systems for output management.


Account Management

Correspondence Tool

Print Workbench



Sample Integration Scenario to CYT

SAP Capital Yield Tax management is a solution that is used to calculate CYT.

Account

Management

CYT

Management



Sample Integration Scenario for Open Item Management

Open Item Management is required for loans management process, and namely for invoicing and clearing

open items.

banking services

from SAP

Account

Management

SAP ERP

Contract Account

/ Receivables

SAP

PE



Sample Integration Scenario for Collateral Management

SAP CMS allows processing of collaterals and link them to loans in Banking Services system.


Introduction to SAP Banking Services 42

SAP solutions for banking started with integration of banking

solutions into ERP platform, later the separate banking

platform Banking Services from SAP was introduced, which

was aimed to be a single back-end system for banking.

Service Oriented Architecture puts main focus on services that

are based on open standards and are reusable.

In SAP Banking Services SOA architecture concept ideally

consists of three layers: first layer is front-end systems and

channels (mostly non-SAP), second layer is integration

infrastructure with Enterprise Service Bus, and third layer is

back-end applications and particularly Banking Services from

SAP for transactional banking. Applications and layers are

connected with each other with services.


IS 604: Contemporary Issues in IS Banking Enterprise Systems€¦ · Technical support on: Advanced...

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