Agility Coherence Architect

Principal Architect Project- manager

PrincipalArchitect Project- manager Architecture- management Program management Business- management Top- management Architectureboard

Top- management BU ICT Architectuur Top- management BU ICT Architectuur Top- management BU ICT Architectuur Top- management BU ICT Architectuur

Model 4 Model 3 Size of organization Level of autonomy of business units Model 1 of 2

? Spaghetti Processes, applications infra A A I I I I I A A Mergers & Acquisition Innovation ESB A AAA AA Architec- ture- P P P P I I A P I I I A A A

Consequence: time-to-market Realised time-to-market Demand time-to-market Time

Consequence: cost Maintenance costs Space for innovation Time IT-Budget

Praktijkvoorbeeld 1: IFSA van ING ING

46,9 49,5 51,2 54,0 54,6 55,0 58,3 67,6 68,3 69,2 70,8 71,0 72,0 61,5 56,9 Lloyds TSB Banc of Scotland Nedcor HSBC BBVA Chase Manhattan Banc of America Wells Fargo Barclays Bank Citigroup ABN Amro USB ING Group Rabobank Deutsche Bank Source : The Banker July, 2000 Insurance expense ratios are less comparable because of product and channel mix, but the difference will be in the same range Why IFSA... Compared to banking out performers a long way to go ING

Need to change: –Internal operations and information technology of ING Europe are fragmented –Competition is consolidating; client needs and technology change rapidly Mission: World-class Financial Services operator Objectives: 1. Reduce costs and operational risks 2. Improve productivity and quality (operational excellence) 3. Standardise, consolidate and upgrade IT 4. Create an operational & IT environment which enables the business IFSA must be an enabler for this Why IFSA… Strategy: E. Dralans, OPS/IT Europe ING

High operations cost base Large opportunity to create economies of scale by merging BU factories / support functions Key success factor for SC’s Unified platforms will enable new technology-driven business innovations and integration of acquisitions Elimination of overlaps Standardisation and Procurement Enabling consistent development Eliminating non added value projects Prioritisation on return Operations impact on Front Office Why IFSA... Major objective for OPS/IT is cost savings Service Centers Major Ops/IT Projects Infrastructure consolidation IFSA Project governance Rationale ING

Application bus Payments Factory Product Factories Distribution clusters Call Click Face PLUG & PLAY mechanism Customer Centric Core Operational CRM Other Support Functions MIS, General ledger CRM Datamining segmentation Principles IFSA Service Based Architecture... The IFSA Service Architecture (0) ING

Application bus Payments Factory Product Factories Distribution clusters Call Click Face PLUG & PLAY mechanism Customer Centric Core Operational CRM Other Support Functions MIS, General ledger CRM Datamining segmentation CCC PCC Customer information management Product bundling, pricing & distribution Customer contact management Customer communications Order management and execution Customer agreement management Opportunity & action management Adapters functions incl profitability Adapters CRM functions Analysis (incl profitability) Adapters Campaign Management Support Other Support Adapters MIS Knowledge Mgt General Ledger Security Workflow Mgt Resource Planning Data WareHouse Information Application bus Service Contracts & Message Routing Directory & Repository Services Traffic Analysis & Control HighSecurity Services Level API’s Transfer Order Management Domestic payments Adapter payments Inter- national Adapter Account Management Account Manage- ment Adapter Current Accounts Adapter Savings Adapter Loans Adapter Securities Adapter Mortgage Adapter Others Adapter Non-Life Adapter Others Adapter Life Adapter Branch ATM/POS Direct mail Call Center Internet Mass payments Broker Distribution Cluster Adapters Distribution clusters Principles IFSA Service Based Architecture... The IFSA Service Architecture (1) ING

Principles IFSA Service Based Architecture... The Application Bus: Reducing Interfaces and Failure Points System 10 Connections Point-to-point: Many interfaces, many Failure Points IFSA Bus: Less interfaces, less Failure Points 45 Connections ING