RSS FeedBy M. Isi Eromosele
In the world of Financial Services organizations, there are four issues that present constant challenges to their sustained profitability. These are identifying and managing customer relationships, leveraging new opportunities for growth, streamlining their disparate technology and meeting regulatory compliance.
To adapt to the constantly changing world of global finance, where competitive pressures, tight margins and consolidations are an integral part of doing business, financial institutions need to integrate their business objectives with their technology infrastructure.
This will produce a flexible technology environment that will reduce time to market for new financial products, effective customer relations management that enables acquisition of new customers and retention of existing ones, while maintaining regulatory compliance. As such, your business objectives will be driving technology.
How do you achieve the above? Business Process Innovation, Business Model Flexibility and integrating your Information Technology assets with Web 2.0. The result is Enterprise Services Architecture.
Business + Technology = Growth
Globalization, world economic weakness and product and service commoditization have increased competitive pressures, lowered profit margins and engendered financial industry consolidation. Many financial institutions have grown so large that they are no longer nimble in responding to the demands if their customers.
Financial Institutions that still maintain inflexible technology are finding it difficult to meet market demands. Today, enhanced technologies have upended the ways financial institutions interact with their customers.
Today, customers interact with multiple bank personnel, who may be located in far-flung locations around the world. Additionally, customers now deal with financial institutions through multiple distribution channels.
To gain a universal view of their customer and determine their profitability, banking organizations have to pull information from multiple sources and share it among the business enterprise. This has proven very difficult to achieve for many financial organizations.
Banking is a heavily regulated industry. Financial Services organizations are required to comply with a dizzying array of U.S. and international rules that emanate from a wide array of various government agencies.
Technology has enabled financial services organizations to partially meet the challenges posed by the above issues. The impediment to banks getting full strategic value is that many still have disparate legacy technology infrastructures that cost so much to maintain.
Many financial organizations are still operating obsolete core business systems with applications that are difficult to modify in response to ever changing time sensitive market demands.
Enabling Enterprise Services Architecture
The first step towards implementing an Enterprise Services Architecture is to install a Service-Oriented Architecture (SOA). This will help maximize legacy technology efficiency by reusing standardized components across an organization.
SOA enables businesses to break up application functionality into reusable components called web services and then link them together in new ways that support complex business processes.
However, Services Oriented Architecture (SOA) is limited in effectiveness since it does address applications and infrastructure in a unified environment. While it increases the efficiency of the infrastructure, the business applications functionality remains limited.
This is where Enterprise Services Architecture (ESA) comes in. Its effectiveness surpasses that of Service Oriented Architecture (SOA). The fundamental premise of ESA is to embed business logic, which mirrors actual business activities and events, modeled as enterprise services, into an SOA framework.
This method of aggregating web services into business enterprise services provides building blocks for the task of automating entire enterprise scale business scenarios. ESA extends SOA by enabling businesses to conduct and change processes by modeling the enterprises services.
Business Benefits of Enterprise Services Architecture
Enterprise Services Architecture enables financial organizations the flexibility to quickly adapt to today’s business demands, to effect business process changes and create new business opportunities, while achieving lower costs.
ESA integrates applications and technology to create a flexible, highly effective service-oriented environment. Issues to consider during implementation include unique business processes, Information Technology landscapes and business objectives.
M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance
Copyright Control © 2011 Oseme Group
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