keynote @ jax 2009: bank it - hitting the wall?
DESCRIPTION
The financial crises challenges IT in the financial industry more than any where else. In a place where many experiments were completed and project failure was a common thing, the budgets are getting tight and business contribution is a must. This is happening while load on IT systems is increasing. This presentation shows where IT in the financial industry has to change an shows the direction for such change.TRANSCRIPT
Hans-Christian Boos, arago AG
Bank IT – Hitting the Wall ?The Financial Crises achieves instantaneously What the Markets Tried For Years
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Bank IT – First Mover with Many Successes
Hans-Christian Boos, arago AG
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… and Many Huge @§!%-ups
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.
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Bank IT in Decline?
0
50
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150
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2002 2003 2004 2005 2006 2007 2008
Ind
ex (
2003
= 1
00)
IT-Budget Financial Services Europe*Eurex-Contracts**
DJ STOXX® Financials (31.12.200x)****
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
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The Market Will Take Care of It (IT?),,,
It is not the battle computer science vs. spaghetticode
It is TCO vs. business contribution
Hans-Christian Boos, arago AG
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… 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
What Does this Mean forInfrastructure
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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
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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
What Does this Mean forArchitects and Developers
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Attack on Centralized Approaches ? !
RUP vs. Agile Development
SOA(religion) vs. SOA (idea)
Analysis & Design
Configuration & Change Mangement
Deployment
Business Modeling
Requirements
Test
Implementation
Inception ConstructionElaboration Transition
Phases
Project Managment
Environment
Initial E1 E2 C1 C2 CN T1 T2
Iterations
Disziplines
Hans-Christian Boos, arago AG
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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
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IT Experts Will Be Process Experts…
Portal Service …
Business Need
Process Design
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
Hans-Christian Boos, arago AG
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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
What Does this Mean forIT Operation
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Banana Software Will Be Returned to SenderIT Operation Is Overloaded as Is!
Bad software will not go live!
SW != theoretically possible problem solution.
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SW Releases
Hans-Christian Boos, arago AG
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Factory Approaches and Their Limits…
Factory models are basdon economies of scaleand therefor rely onstandardization.
An excellent approach,
but
Economies of scale cannot 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
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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
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Outsourcing, Nearshoring, Offshoring or Would You Like to Consider Automation?
CRAFTSMAN MANUFACTURE INDUSTRY KNOWLEDGE WORK
Hans-Christian Boos, arago AG