NewBACS Technology Renewal Programme Presentation to BCS, West London Branch Tim Lambertstock

Presentation to BCS, West London Branch
11th January 2005
NewBACS Technology Renewal
Programme
Tim Lambertstock
Technology Strategy Manager
0870 920 8554
[email protected]
Agenda
• Business Background
• Technology Renewal Programme Background
• BACSTEL-IP
• Programme Architecture
• Programme Management
• Lessons Learned so far
• Summary
An overview of Voca (formerly BACS)
Background
Operations
• Electronic Funds Transfer processing of
Direct Debits, Direct Credits and Standing
Orders
• 4.6 billion transactions in 2004
• Over 90% of UK salaries are paid by
Direct Credit
• Operating for 36 years
• Over 65 million items on a peak day
• Part of the UK Critical National
Infrastructure
• Over £2,500 billion paid through Voca in
2003
• Manages inter-bank network services
• 50,000 users connect to the Voca service,
including all of the FTSE 100
• Owned by the major UK banks and
building societies, and the Bank of
England
• NEVER lost a payment!
• Culture of high performance and alwaysavailable systems
Page 3
Voca – trust, a key asset
FDs & IT Directors…
36 years
50 billion
transactions
0 lost
Payments
Trusted
97%
Efficient
96%
Secure
96%
Proven
94%
Capable
94%
Experienced
93%
Knowledgable
78%
Robust
77%
72%
Customer focused
62%
Progressive
50%
Technically leading edge
50,000 users
connected
39%
Agile
31%
Bureaucratic
Expensive
14%
Passionate
13%
New Commercial Mandate and Mission
To be the leading provider of world class, secure
transaction services
Capitalise on Market Opportunities
Further
Further Improve
Improve
Core
Core Services
Services
Delivery
Delivery
((SLA
SLA Management,
Management,
Volume
Volume Growth)
Growth)
Expand
Expand Business
Business
Around
Around the
the Core
Core
(Product
(Product Dev.,
Dev.,
Customised
Customised Services)
Services)
Develop
Develop New
New
Areas
Areas of
of
Opportunity
Opportunity (New
(New
Service
Service Lines,
Lines, JVs,
JVs,
M&A
Activity)
M&A Activity)
Develop
BACS
Capabilities
Develop
Develop Best-in-Class
Best-in-Class Technological
Technological Capabilities
Capabilities
(NewBACS,
(NewBACS, IT
IT Programmes)
Programmes)
Build
Build aa Commercially-Focussed
Commercially-Focussed Organisation
Organisation
(Organisational
(Organisational Transformation)
Transformation)
Develop
Develop Partnerships
Partnerships and
and capability
capability across
across Europe
Europe
(ACHs,
(ACHs, Banks,
Banks, IT
IT Companies)
Companies)
Programme Background
Drivers for Technology Renewal Programme
£
£
Cost Reduction
Maintain reliability,
further reduce risk
(settlement,
operational, credit)
Support
Increased Volumes
(5b+ items in 2005,
100m/day peak)
Renew ageing,
outdated
technology
Improved Security
Offer new and
differentiated services
NewBACS
Support New and
faster clearing cycles
€
(Faster)
Time To Market
24x7 Operation
Support European
developments
New Capability
Multicurrency
capability
Strategic
Capability
Flexible Range of
clearing standards
cycles
Webbased
services
Service
Differentiation
Enhanced
Customer
Service
24 x 7
Operational
Cost
Interoperability and Multiple
formats
Reduced cost of
Reduced bank
functional change
operational costs -STP
Scaleable
platform
Generic security
infrastructure
Resilient
Contingency
Secure
Infrastructure
Main Heritage Systems
SME Corporate Input
BACSTEL
Large Corporate &
Member Input
HST
Tandem
AIX
•
ICL Mainframe
•
REFT
•
REMIT
Another Processing Engine
(not widely used)
International & Domestic
Services
MT102 & EDIFACT (FIN)
Spooling
BCOLL
Exception Management
(Pre-Dates REFT)
REMIT
BCOLL
Item Validation
Tandem
Central Checks
•
•
•
•
•
REFT
Built circa 11 years ago
Main Processing Engine
(all STD18 Processing)
COBOL (generated)
IDMS(X) Database for
Reference Data
Items stored on disk (not
database)
Central
Instructions
Messaging
Output
Tandem
Output
(Member In-Clearing)
HST
AIX
Other BACS Messages
(AWACS, ADDACS, etc)
BACSTEL-IP: a mission critical project
• Needed to work with 12 bank groups
• Internet technology
• Very large volumes
• Demanding service levels
• Complex security requirements
• First part of wider programme
• Had to deliver infrastructure for
remainder of programme
BACSTEL-IP Project Overview
In October 2001, BACS Board authorised funding for BACSTEL-IP
It is the first Phase of the Technology Renewal Programme
The BACSTEL-IP projects started in January 2002
BACSTEL-IP went live on 28 October 2002!
The project of c.20,000 mandays, with a team peaking at 150 people,
was delivered:
On-time (on the date set a year before!)
5% under approved budget
To specification
BACSTEL-IP - What is it?
On-Line Payment
Submission & Confirmation
Business Customer
On-Line
Information
Bank-Issued PKI
Smartcard
On-Line
Reports &
Payment
Tracking
On-Line Customer
Data Updates &
Registration
Bank
Secure Channel - BACSTEL-IP
BACS Payment Services
Payment Submission Capture
On-Line
Reference
Data
Reports
On-Line
Validation
Safe-Storage
Existing
Payment Processing
Output &
Settlement
Customer Benefits
• Large files can now be submitted faster
• Single secure connection for submission and
reporting
• Everything now on-line - eliminates paper-based
processes and reduces costs
• Increased control and end-to-end automation
• All interfacing software now Voca approved
• Enables Straight Through Processing
Positive Customer reaction
“So simple - just smart card and PIN and you’re in.”
"From the word go it proved simpler than the old system.
With a constantly changing weekly payroll submission,
rapid same day online reports are of great benefit as is
the flexibility of access whenever and wherever we
choose."
Katherine Egerton, EuroCentres Language Schools
Programme Architecture
Technology Principles
• Single, shared, modular, re-usable architecture for all
services
• Remove duplicated processing and reference data
maintenance
• Standards-based, “buy not build” approach where
feasible
• Scalable to meet future demand
• Upgrade existing delivery channels to take account of
internet technologies
• Move to industry approved security model
• Facilitate regular enhancement to platform by
evolution, not repeated major investment programmes
Leading Edge Technology Stack
Application Server
Database
Operating System
Server
Storage
Network
Solaris 8
Sun Fire™ 15K server
Sun StorEdge™ 9980
Why this stack?
BEA WebLogic decision taken first in late 2001:
•
•
•
•
Market leader in Application server space
Most EJB implementations use WLS
Better J2EE support and compliance with Java standards
Better clustering and high-availability features
Oracle decision taken soon afterwards:
•
•
•
•
Market leader in high performance enterprise databases
Existing skills available within BACS
Best support for high-availability between Data Centres
Excellent support for Java, XML and WLS
Sun decision, primarily cost-driven but also:
• Market leader
• Best available support for WLS and Oracle
• Excellent support for clusters and high-availability
Technical Infrastructure
BACS Users & Members
Network
Network
Firewall
Firewall
Extranet DMZ
Internet DMZ
Load
Balance
Proxy Server
Cluster
Load
Balance
Proxy Server
Cluster
Firewall
BACS TRUSTED
DOMAIN
Load Balancing
Sun Server
Domain
Sun Server
Domain
Hardware Failover
WebLogic
WebLogic Server Cluster
Server
Instance
WebLogic
Server
Instance
Load Balancing
Sun Server
Domain
Sun Server
Domain
Hardware Failover
Database
Instance
Oracle Real Application Cluster
Database
Instance
High speed connection to Second Data Centre
Main Servers
SUN F15K
Sun F15K
Application Server
BEA WLS
Solaris
•
•
•
•
16 CPUs *
16 GB Memory *
Can grow to 72 CPUs
Weight = 1 Tonne!
Configured as 2 Systems
Database Server
Oracle
/O
DB I
DB
I/O
Solaris
• Application Tier contains the Business
Logic
• Database Tier runs the Database as a livelive cluster
Disk Subsystem
* Now being doubled for rest of
programme
Full Infrastructure Architecture
Firewall
Firewall
Load Balancer
Load Balancer
Netra
Netra
Netra
Netra
Proxy
Server
Proxy
Server
Proxy
Server
Proxy
Server
Solaris
Solaris
Solaris
Solaris
Firewall
Firewall
F15K
Application
Server
Application
Server
Solaris
Solaris
F15K
F15K
Database
Server
Database
Server
Solaris
Solaris
APP DB
APP DB
F15K
Database
Server
Solaris
Solaris
Oracle Data Guard
Archive Logs
DB
DB
Disk Subsystem
Site A
Oracle Online Log
Sync
(sync Replication) Replication
I/
DB
O
I/
DB
O
I/ O
Database
Server
I/O
Disk
Subsystem
Site B
Application Layers
Presentation Layer
Integration
Layer
Legacy
Platforms
Customer
View
Submissions
Framework
Layer
Monitor/
Control
Role Based
Access Control
Business Services Layer
Member
Bank
Systems
Represents an aggregated business view of the various BACS
technology aspects i.e., Payment Service, Processing &
Exception Management, Extended Formats Service, Advices
Profile &
Management
Workflow Management Layer
Audit & Logging
Ensures the consistent integration of business processes
internal and external (White Label customers) to the BACS
Domain
Business Logic Layer
Settlement
Systems
Reference
Architectures
Common APIs
Receive
MIS
Information
Extended
Services
Frameworks
Validate
Route
Warehou
se
Release
PKI Security
Data Layer
Reference
Data
Management
Information
Common Third
Party Utilities
Processing
History
Challenging Security requirements
• Highest levels of authentication and
auditability
• Smartcard-based digital certificates
• Digital signing of critical transactions
• Certificates issued by customer’s bank
• Need to accommodate different trust
schemes, including Identrus
• Need to work with smartcards from
different vendors selected by banks
Authentication Solution
• Voca set out common requirements in Trust Services
Code of Conduct
• Thales SafeSign Authentication Server at heart of
technical solution
• Certificates validated in real time according to
requirements of each bank
• Tamper-proof audit trail of all transactions
• Works with smartcards from multiple vendors without
the need for low-level programming by solution
suppliers
Programme Management
Major Culture Change
• Technology - Mainframe/Cobol to Internet Technology/Java
• Ways of working - Waterfall to OOAD
• Approach - Needed to adopt delivery focus (no major new
system development for 10 Years)
• Management - Tight Budget and Deadline
• Partnering – needed to work effectively with external
partners
• Risk – had been very risk adverse, needed to be willing to
take risks when appropriate
Recruitment and training of staff
• Needed to continue to support existing systems as well as
develop NewBACS
• Core team of about 10 senior Voca IT staff (Project
Managers, architects and business analysts) had been
engaged from early 2001
• About 30 Voca developers and designers were introduced
into mixed BACS/external teams from early 2002
• Their roles were back-filled with contractors
• BACS staff had training in RUP/UML and Java where
necessary and a NewBACS induction programme
Methodology (Prince 2 & RUP)
Directing a Programme
Directing a Project
Programme
Start-up
Programme
Definition
Programme
Brief
Project
Start-up
Project
Initiation
Disciplines
Business Modelling
Controling a Stage / Managing Stage Boundaries
Construction
Elaboration
Inception
RUP Phases
Transition
Stage 3
Stage 2
Stage 4
Requirements
Analysis & Design
Programme
Structure
Implementation
Test
Programme
Resources
Deployment
Programme
Budget
Configuration &
Change
Management
Project
Brief(s)
Close
a Project
Close a
Programme
End of
Project
Assessment
End of
Programme
Assessment
Project
Closure
Report
Programme
Closure
Report
Project Initiation
Document
Project
Resources
Project Budget
Project Plan
(Top-Level/Stage)
Environment
Initial
Elab
#1
Elab
#2
Elab
#3
Const
#1
Const
#2
Const
#3
Const
#4
Trans
#1
Trans
#2
Initiate
Project(s)
End of Stage / Interation
Assessment
End of Stage / Interation
RUP Iterations
Assessment
Project Planning & Monitoring
Programme Planning & Monitoring
New Production Phase
New Disciplines: Security, Member Engagement, Infrastructure & Operations
Project Best Practice
Code and Design
Best Practice
PRINCE2 and RUP
Proven Project Methods
Quality-Assurance
UML and Code
• Establish milestones and
dependencies
• Identify key-risks
• Prioritise and schedule
activities of team
• Actively manage and
motivate team
Quality Component-Based
Software Produced
Industry Standard Design
Models
Time-Frame and
Risks Managed
Clear and
Transparent Code
and Designs
Project
Management
Artifacts
Project successfully
completed
Risk Management & Mitigation
Design and Coding
Artifacts
Project Success
SUCCESS FACTORS
Avoiding Common Pitfalls
VALUE
DELIVERED
Technology
Partners
Practices
Planning
Multi
Million
Product
Selection
Define
Objectives
Modular
Design
How we handled this
complexity made the
difference
Cost
Controlled
Programme
Risks
Reduced
Objectives
Met
Quality
Maintained
Identified
Business
Opportunities
Enabled
• Small selfcontained
pieces
• Flexibility
• Scalability
• Open
Standards
• Low risk
• Industry
leadership
• Handling
change
• Future
proofing
• Reduce cost of
operation
Managing Risk
People
• Capabilities, Knowledge & Skills
Process
• Project Management, Development, Risk Management,
Controls & Communications
Tools
• Planning, Development, Deployment & Documentation
Technology
Migration strategy is designed to reduce risk
Business Customer
On-Line
Payment
Submission &
Confirmation
On-Line
Information
Bank-Issued PKI
Smartcard
On-Line
Reports &
Payment
Tracking
On-Line Customer
Data Updates &
Registration
Bank
Secure Channel - BACSTEL-IP
Payment Submission Capture
On-Line
Validation
On-Line
Reference
Data
Safe-Storage
Legacy Mainframe System
Reports
Existing
Payment Processing
Output &
Settlement
Lessons Learned and Summary
Look to Use Again
• Break up big projects into several smaller ones and
manage as programme
• Organisation Structure and Controls
• Identify risks and seek to address them early
• Select technology that really does work together
• Select partner with the right Skills, Knowledge &
Capability
• Develop iteratively and take releases right through
testing and deployment early on
Look to Improve
• Agree Ways-of-Working upfront
• Don't change everything at the same time unless you
have to
• Don't underestimate culture change
• Get technology vendors to underwrite what you are doing,
both technically and contractually
• Deploy Configuration & Build tools and pipe clean early
• Understand the Legal changes you need to make and
start them early
• Tight Contract and Supplier Management
The programnme has won many awards
Best use of B2B
e-Commerce
Innovation Category
and
Overall Winner 2003
Award for Excellence in
Secure Electronic
Business 2004
Technology Award
for Services
European Banking
Technology Award for
Outstanding Achievement
of the Year
e-Business Project of
the Year
Summary
• One of the largest J2EE business applications in the
world
• Available over Internet, BACS Extranet (supporting
different connection speeds) and SWIFTNet
• BACSTEL-IP supports both browser-based and
application-to-application interfaces
• First integrated use of digital certificates issued under
multiple trust services
• Unique interoperability with PKI smartcards from
multiple vendors with different signing software
• Successfully integrated PRINCE 2 Project
Management with RUP Software Engineering ensuring
delivery on time and under budget
But this is only the beginning….
• BACSTEL-IP is a solid foundation for the rest of the
Technology Renewal Programme
• We are looking to leverage the security capability to
provide authentication services to others
• Voca launched an EBPP service last year and is
looking to launch a number of other new ventures this
year
• This new capability and technology is attracting
interest from around the world
• Voca is increasingly playing a role on the European
stage
Any Questions?
Tim Lambertstock
Voca Limited
[email protected]
0870 920 8554
www.voca.co.uk