Bank IT – Hitting the Wall ? The Financial Crises achieves instantaneously What the Markets Tried For Years

Bank IT – First Mover with Many Successes Hans-Christian Boos, arago AG

… and Many Huge @§!%-ups More than 80% of IT projects with a budget > USD 1M are considered failures. 95% of all IT projects are not completed in time or in budget – that is if they are completed at all. Still everything is marketed as great success – HAHA. Hans-Christian Boos, arago AG

More than 80% of IT projects with a budget > USD 1M are considered failures.

95% of all IT projects are not completed in time or in budget – that is if they are completed at all.

Still everything is marketed as great success – HAHA.

Bank IT in Decline? 0 50 100 150 200 250 2002 2003 2004 2005 2006 2007 2008 Index (2003 = 100) Eurex-Contracts** Electronic Money Orders in Germany per citizen Sources:: *) Celent "IT Spending in Financial Services: A Global Perspective, New York, 9.1.2009, 28.12.2007, "IT Spending Trends in European Banking, 2005", Paris, 20.7.2005, "Celent Expects IT Spending at European Banks to Exceed EU44.6 bn in 2004", Paris, 26.4.2004 **) Eurex Pressemeldungen 1.10.2008 und 5.1.2009 ***) Capgemini „World Payments Report 2008“; nur „non-cash“ d. h. elektronische ZV-Transaktionen ****) Dow Jonex STOXX®, www…. Zusammenstellung: Dr. Udo Milkau, 5.4.2009 Hans-Christian Boos, arago AG IT-Budget Financial Services Europe* DJ STOXX ® Financials (31.12.200x)****

The Market Will Take Care of It (IT?),,, It is not the battle computer science vs. spaghetti code It is TCO vs. business contribution Hans-Christian Boos, arago AG

It is not the battle computer science vs. spaghetti code

It is TCO vs. business contribution

… So What Does It Mean? From a business perspective IT must yield a well defined contribution to business IT has to deal with more load with less budget From a technical perspective No more experiments !!! Time-to-Market before „scientific beauty“. From a social perspective No more geek pampering !!! Users are King! Hans-Christian Boos, arago AG

From a business perspective

IT must yield a well defined contribution to business

IT has to deal with more load with less budget

From a technical perspective

No more experiments !!!

Time-to-Market before „scientific beauty“.

From a social perspective

No more geek pampering !!!

Users are King!

What Does this Mean for Infrastructure

Dynamic is the Magic Word Virtualization : no fancy concept, but normal craftsmanship. Speed : 14 days for setting up a new infrastructure is not a small miracle any more, in fact it is really slow. Scalability : from „we own this anyway“ to „on demand“ models. Hans-Christian Boos, arago AG

Virtualization : no fancy concept, but normal craftsmanship.

Speed : 14 days for setting up a new infrastructure is not a small miracle any more, in fact it is really slow.

Scalability : from „we own this anyway“ to „on demand“ models.

Outsourcing ! IT cost is the main driver for outsourcing whole processes (BPO). Security is no longer an excuse for „have to own“. Identity Management makes tasks dividable. Separation of infrastructure and applications through professional deployment procedures. Hans-Christian Boos, arago AG

IT cost is the main driver for outsourcing whole processes (BPO).

Security is no longer an excuse for „have to own“.

Identity Management makes tasks dividable.

Separation of infrastructure and applications through professional deployment procedures.

What Does this Mean for Architects and Developers

Attack on Centralized Approaches ? ! RUP vs. Agile Development SOA (religion) vs. SOA (idea) Hans-Christian Boos, arago AG

RUP vs. Agile Development

SOA (religion) vs. SOA (idea)

SOA– Reuse or Simply Overhead? Source: http://blogs.msdn.com/usisvde/archive/2009/01/06/soa-is-dead-long-live-well-services.aspx Hans-Christian Boos, arago AG

IT Experts Will Be Process Experts… Old Style: 90% technology,10% process Marketing now: 20% technology,80% process Future: 5% technology, 95% process Process Design Hans-Christian Boos, arago AG Portal Service … Business Need JVM JAVA Container JSF Spring JSR 168 OSGI … Hibernate JNDI … Groovy …

Old Style: 90% technology,10% process

Marketing now: 20% technology,80% process

Future: 5% technology, 95% process

Programming Is NOT Creative! Code Should Be Generated… Creativity takes place BEFORE code is written. That is especially true for complex programming problems. User interface, algorithms and architecture building are creative processes. Source: Liquid Technologies (rechts) http://www.liquid-technologies.com/ AndroMDA (links) http://www.andromda.org/ Hans-Christian Boos, arago AG

Creativity takes place BEFORE code is written. That is especially true for complex programming problems.

User interface, algorithms and architecture building are creative processes.

What Does this Mean for IT Operation

Banana Software Will Be Returned to Sender IT Operation Is Overloaded as Is! Bad software will not go live! SW != theoretically possible problem solution. Sep 05 Okt 05 Nov 05 Dez 05 Jan 06 Feb 06 Mar 06 Apr 06 Mai 06 Jun 06 Jul 06 Aug 06 Sep 06 Okt 06 Nov 06 Dez 06 Jan 07 Feb 07 Mar 07 Apr 07 Mai 07 30.000 25.000 20.000 15.000 10.000 5.000 0 Number of Tickets handled manually handled automatically SW Releases Hans-Christian Boos, arago AG

Bad software will not go live!

SW != theoretically possible problem solution.

handled manually

handled automatically

Factory Approaches and Their Limits… Factory models are basd on economies of scale and therefor rely on standardization. An excellent approach, but Economies of scale can not be extended ad infinitum. Factories can only cover „standard“, but differentiation is a key factor for business success. marginal cost item Hans-Christian Boos, arago AG

Factory models are basd on economies of scale and therefor rely on standardization.

An excellent approach,

but

Economies of scale can not be extended ad infinitum.

Factories can only cover „standard“, but differentiation is a key factor for business success.

Cloud Computing or the Final Frontier for Administrators Today: Good Administrator = know the infrastructure you are taking care of like your own back yard. Effective administration = Instant reaction to upcoming issues within the known architecture based upon EXPERIENCE. With Clouds: Application infrastructure changes by the second. Formally highly valued knowledge is worthless. The experiences are tied to an static architecture an cannot be reapplied to a dynamic infrastructure. Hans-Christian Boos, arago AG

Today:

Good Administrator = know the infrastructure you are taking care of like your own back yard.

Effective administration = Instant reaction to upcoming issues within the known architecture based upon EXPERIENCE.

With Clouds:

Application infrastructure changes by the second. Formally highly valued knowledge is worthless.

The experiences are tied to an static architecture an cannot be reapplied to a dynamic infrastructure.

Outsourcing, Nearshoring, Offshoring or Would You Like to Consider Automation? Hans-Christian Boos, arago AG CRAFTSMAN MANUFACTURE INDUSTRY KNOWLEDGE WORK