®
IBM Software Group
Enterprise Data Integration
Integration Solution Overview
November 18, 2005
Steven Fontana,
IBM, Integration Specialist - Citigroup
sfontana@us.ibm.com 631-804-8888
John Bekisz,
IBM, Integration System Engineer
© 2005 IBM Corporation
IBM Software Group | WebSphere software
Financial Services Institutions Face Key Market Challenges
Key FS Market Challenges
Channel Optimization
Multiple touch points provide challenges in
maximizing customer wallet and mind share
Single View of Product and Customer
Past CRM investments have not achieved the
promise of wallet share due to silo LOB
implementations
Complex Business Infrastructure
Legacy applications continue to put pressure on
profits and prevent enterprise views of customers,
products, trades, positions, etc
Regulatory Compliance
Government mandates and industry standards
require data infrastructures to be compliant with
USA Patriot, Sarbanes, Basel 2, etc
Market and Partner Networks
Enhanced market infrastructures (e.g., SWIFT
Net) provide new ways to optimize payments and
settlements infrastructures
2
IBM Software Group | WebSphere software
IBM Information Integration’s Capabilities Address These
Challenges
Key FS Market Challenges
Channel Optimization
IBM Information Integration’s
Capabilities
Deliver updated portfolio, account and
customer information to multiple channels
to support marketing and customer service
Single View
Deliver a single version of the truth across
multiple channels and business units
Complex Business
Infrastructure
Accelerate consolidation of legacy sources
to target applications to reduce support
costs
Regulatory Compliance
Market and Partner Networks
Profile, cleanse and transform enterprise
data to support Sarbanes, Basel 2, AML
Enhanced support for market infrastructures
such as SWIFT Net and new connectivity
standards such as SWIFT ML
3
IBM Software Group | WebSphere software
IBM Information Integration’s Customers are Proof Points
IBM Information Integration’s
Capabilities
Deliver updated portfolio, account and
customer information to multiple channels
to support marketing and customer service
IBM Information Integration’s FS
Successes
Consolidated data across dozens of silo LOB’s ;
branches, service centers at Top 10 Brokerage Firm
to provide point of contact up sell capability
Deliver a single version of the truth across
multiple channels and business units
More than 20,000 users utilize single standard
corporate utility to analyze customer profitability at
JP Morgan Chase
Accelerate consolidation of legacy sources
to target applications to reduce support
costs
Consolidated multiple mortgage and lending systems
to provide new CRM-based system for GMAC
Mortgage
Profile, cleanse and transform enterprise
data to support Sarbanes, Basel 2, AML
Single common library of data integration routines
deployed throughout 39 countries for Standard
Chartered Bank-sets the stage for Basel II IRB
Enhanced support for market infrastructures
such as SWIFT Net and new connectivity
standards such as SWIFT XML
Accelerated adoption of new SWIFT standards at
Credit Suisse Group without back office changes
4
IBM Software Group | WebSphere software
Technologies Introduced
To Address The Problem
Analytical
Data
Mart
PeopleSoft
Enterprise Information Integration
EII
SAP


Important and beneficial functionality
But no real solution to the key data
problems

Poor data design and organization

Poor data management

Deteriorating data quality

Changing business & technology

Inadequate data delivery
Data
Mart
Consumer
Portals
Web Integration
Siebel
Other
Enterprise
Data
sources
Enterprise
Integration
Data
Warehouse
Enterprise
Application
Integration
Trading
Partners
EAI
Legacy
data
Extract,
Transform and Load
Extract/Transform/Load
Oracle
Operational
ETL ETL
Electronic
Data Store
Marketplaces
Which Technology do I use?
Integrate the Parts
Will my data be siloed?
Common Meta Data
Profiling
How Flexible Is My Design?
Automation
Cleansing
Reusability
SOA
5
IBM Software Group | WebSphere software
Application Consolidation, BI/DwH, Compliance
Customer Challenges
GROUP LEVEL
Big Gap
COMPANY LEVEL
METADATA REPOSITORY
Current State In Large Enterprises
Desired End State In Large Enterprises


Overlapping and redundant:
 Data
 Applications
 Infrastructure (servers and storage)

No single, consolidated view of enterprise data

Hand coded data integration spaghetti

Supporting all of the above:
 Consumes >40% of IT budget
 Chokes flexibility and competitiveness
Radical consolidation of:



Data
Applications
Infrastructure (servers and storage)

Run the business on a single, consolidated view of enterprise data (Master
Reference Data)

Eliminate hand coded data integration spaghetti

Reduce costs radically while improving competitiveness
6
IBM Software Group | WebSphere software
Customer Challenges
GROUP LEVEL
Big Gap
COMPANY LEVEL
METADATA REPOSITORY
Current State Metrics
Desired End State Metrics
Data
Data


Major US Bank has tens of terabytes of redundant and overlapping data
following acquisitions.
Creating consolidated view of enterprise data will save the US Bank $30 million in
storage costs on one project.
Applications
Applications



A major global chemicals company is running 12 instances of SAP and
has no consolidated view of the business.
A major global telco was operating three order systems and had no
consolidated view of orders.

Consolidation to 1 global SAP instance will reduce operating costs by $40 million
annually.
Creating a consolidated view of orders led to the capture of $200 million in revenue
that was previously lost.
Infrastructure

Global logistics supplier needs to consolidate:
 18 data centers to 3-4 data centers
 1500 applications to 200 applications
 2600 servers to 1600 servers
Hand coded data integration


Major US Bank - 3,000 people hand coding
Canadian Bank – 5,000 people hand coding
Infrastructure

Restructuring and consolidation will increase the logistics supplier’s operating
profit by at least € 1 billion annually by 2005.
Hand coded data integration


US Bank – 50% productivity gain would save $150 million annually
Canadian Bank – 50% productivity gain would save $250 million annually
7
IBM Software Group | WebSphere software
Enterprise Information Integration Platform
On-Demand and Event Driven Services
Service Oriented Architecture
DISCOVER
PREPARE
TRANSFORM
Discover
data content
and structure
Standardize,
match, and
correct data
Transform,
enrich, and
deliver data
Understand
Reconcile
Deliver
Profile Stage
Audit Stage
Quality Stage
DataStage
DataStageTX
Federated
ANY SOURCE
CRM
ERP
SCM
RDBMS
Legacy
EAI/
Messaging
Web services
XML/EDI
Data
Warehouse
ANY TARGET
CRM
ERP
SCM
Business
Intelligence
RDBMS
EAI/ Messaging
Web services
XML/EDI
Data Warehouse
Parallel Execution
Meta Data Management
Standardization
Discovery
Cleansing
Enhancement
Meta Data
Logic
Transformation
Semantics
Delivery
Auditing
8
IBM Software Group | WebSphere software
Making The Transition
3. Cost savings on first
project fund COE and
downstream projects.
Architecture
Methodology
Software Platform
Mentoring and best practices
5. Build Self
Sufficiency
Master
Reference
Data
COE
2. Start
implementing
COE and MRD
on first project
1. Implement
First Project
4. Start implementing downstream projects
• Leverage capabilities developed previously
• trained staff
• software templates, software components, business rules, etc.
Global
General
Ledger
Single View of
Billing System
• Continue to build COE and Master Reference
Data
Data Warehouse
Consolidation
Customer
Consolidation
(Siebel)
Project #1
Project #2
Project #3
Project #4
9
Software Group | WebSphere software
 FinancialIBMLending
Institution
11
IBM Software Group | WebSphere software
Our Capabilities in Financial Services
Market and
Partner Network
2
1
5
3
Financial
Services
Value Chain
4
Financial
Institution
6
6
Subsidiaries/
LOB Units
Subsidiaries/
LOB Units
Branches/
LOB Units
Customers
2
Environments
IBM
Capabilities
Transactional
Operational
Analytical
1
Standards Adoption (SWIFT Net
Migration & FiXML)
3
Core Banking & Legacy Application
Consolidation
5
Single View Across Product,
Customer, Portfolio
2
Master Data Management for
Reference & market Data
4
Risk Management & Regulatory
Compliance
6
Channel Optimization
12
IBM Software Group | WebSphere software
Standards Adoption
1
IBM
PACK for SWIFT
Clients
Logical
Message
Format
SWIFTNet
CounterCPG
parties
IBM
DataStage TX
CPG
Service
Providers
Back-end
Systems
Standards-Based Trading Pain Points

Complex messages; difficulty in adding new
messages or supporting new versions

Many industry protocols, transports and data
formats. Flexibility is key


Need for integration with back-end systems
hosting data in complex formats
Need for quality data to have quality partner
interaction
Customer Examples
IBM Information Integration Value

Support for SWIFT, EDI and other industry
standards for partner trading, with message
data normalized for streamlined updates

Broad range of back-end connectivity options
supported by powerful data transformation
and connectivity via SAA

Data matching and standardization, limiting
errors and delivering consistency

Data connectivity, transformation and quality
– in one integrated platform.

Credit Suisse Group

Deutsche Bank

KAS Bank

Fidelity Investments

Bank of New York
13
IBM Software Group | WebSphere software
Credit Suisse Group
Credit Suisse Group | World-leading
financial services company, advising clients in all
aspects of finance, around the world, around the
clock. 360° Finance
Problem
Solution
Heightened ROI and
competitive pressures
required the automation of the
process flows to reduce
overall settlement times
without access to incremental
internal resources. Needed to
convert to ISO 15022
messages from 7775 format
without impacting multiple
back office systems
Implemented IBM
DataStage™ TX and IBM™
PACK for SWIFT with Logical
Message Format for complete
SWIFT integration and
support for all SWIFTNet
services. LMF shields back
end systems from periodic
message format changes
Result
Accelerated and simplified
adoption of new messages
(ISO 15022) without overhaul
of back-office systems, with
normalized message data
across the organization.
Simplified management and
monitoring, providing
complete visibility into
transactions and messages
14
IBM Software Group | WebSphere software
Master Data Management
2
Institutional / Individual
Accounts
Reference Data
Mrs. M. Talber
Trading Accounts
Global Custodians
Buy and Sell side
allocation
Brokerage Firm
Security masters,
SSI’s
Funds Managers
Single View and Mapping
to Industry Data Pools
Single View Integration Pain Points


Duplications, errors and manual overrides in
transactional data received from sales
channels
IBM Information Integration Value
No single understanding of customers

Not ready for Global Data Synchronization
Customer Example

De-duplication of security records stored in
multiple formats/systems

Top Ten Brokerage Firm

Real time reconcilations against data received
from custodians, buy side, sell side, street etc

Freddie Mac

Customizable business rules for matching

Wells Fargo

Investigate and understand data structures
and formats
Duplicated and inconsistent data in corporate
systems

DTC and CUSIPS, etc
15
IBM Software Group | WebSphere software
Freddie Mac
Freddie Mac |
A stockholder-owned
corporation established by Congress in 1970 to
support home ownership and rental housing
Problem
Solution
Unable to quickly assess the
impact of millions of changes
to their mortgage portfolio on
a daily basis. This limited their
ability to manage risk, extend
loans and optimize margins
by exploiting small rate
differences between financial
borrowing markets and
lending rates.
Replacing hundreds of
manually-coded integration
programs with automated,
metadata-driven parallel
solution. Cut time required to
update 1M+ transactions per
data. Using metadata to
document process for easier
maintenance and
extensibility.
Result
 Changes to mortgage
portfolio will be visible via
Freddie Mac’s enterprise data
warehouse systems within 12
hours of occurring
 Richer and timelier reporting
environment
 Greater opportunity to
increase margins and expand
lending
16
IBM Software Group | WebSphere software
Core Banking and Legacy Application Consolidation
3
Legacy
De-Dupe
Legacy
Legacy
Legacy
R/3
Cleanse
Initial
Staging
Target
Staging
Define
Relations
Target
Environment
Standardize
R/3
R/3
Map
R/3
IBM Information Integration Platform
Legacy Application Pain Points


High maintenance costs and lack of data/process
unity associated with running multiple instances
of the same application

Keeping track of metadata during application
transition and consolidations

Uncoordinated technical architecture
Rapidly profile and analyze data across
corporate systems to prepare for migrations
and consolidations

Migrate only data that is meaningful, active
and de duplicated

Rapidly locate all institutional data in source
systems and prepare to migrate to target
applications

Conduct impact analysis on potential changes
to metadata
Unrealized value from mergers and acquisitions
with multiple DDA and credit , lending systems

Customer Examples
IBM Information Integration Value

GMAC Mortgage

Nordea

Lloyds Bank
17
Nordea
IBM Software Group | WebSphere software
Nordea | Largest financial services group in
Scandinavia with EUR 252 billion in total assets, 9.7
million personal and 1 million corporate customers
Problem
Needed to support a sub
ledger consolidation from 4
large retail banks. Auditing and
guaranteed delivery are
critical.
Transactions arrive from
complex flat files from many
countries, and must be
validated, mapped, reconciled
and prepared before loading
into R/3.
Solution
IBM DataStage™ and SAP
R/3 PACK prepares data
for the initial load into R/3.
Result
 Nordea is able to act as
one operating unit, in support
of having one brand
 Cut IT budget by 25%,
resulting in savings of $8M
by 2003
18
IBM Software Group | WebSphere software
Risk Management & Compliance
4
BII Operational
Risk Engine
Credit
Loss
Data store
DataDataStage
Quality and™Alignment
Collaterals
QualityStage™
Extraction, Validation
Customer
ProfileStage™
Source
System Analysis
Loss Data
Historic
Data store
Interest Rate
Risk Engine
BII Credit
Risk Engine
Result
Data
Analysis
Result
Data
Market Data
Result
Data
Disclosure
Rating, PD, LGD,
CCF Models
Core Banking
Products
Data source
Management
Data
Internal Credit
Risk Engine
Financial
Data store
Result
Data
DataIntegration
Integration
Data
Enterprise
Data store
Transformation
& calculation
Data Marts
Reporting
Meta Stage and DBMS
IBM Information Integration ValueCustomer Examples
Risk Management Pain Points



Three year period of measuring operational
risk data to meet Basel II Accords has
begun

US Patriot Act has extreme focus on Anti
Money Laundering and Know Thy Customerfines for non compliance are severe

Sarbanes Oxley and other Regulatory
mandates place intense focus on data quality

Rapidly profile and analyze data across
corporate systems to prepare for internal
ratings based approach for Basel 2
Data Quality Assessments that quickly
identify gaps in required data for compliance
in SOX, AML etc
Conduct impact analysis on potential changes
to metadata and change data management

Ny Kredt

NASDR

Standard Chartered

AIG
19
IBM Software Group | WebSphere software
Standard Chartered
Standard Chartered | World- leading emerging
markets bank with over 500 offices in more than 50
countries
“With IBM, Standard Chartered Bank will build one common library
of data
integration routines and deploy them throughout our company, a critical factor to
ensuring that our risk data is all handled in accordance with company
standards." -- Senior Project Manager, BASEL IS
Problem
Solution
Wholesale Bank Basel II
Credit Risk Project goal is to
meet Basel II Capital Accord
guidelines by 2006, utilizing
new internal modeling
approaches for capital
calculations. Required strong
risk management analytics,
processes and disclosure.
Needed consistent data
management processes
across operations, customers
and supporting technology in
more than 50 countries
Centralized Basel II Data
Integration Solution leverages
IBM Enterprise Integration
Suite™ to deliver enterprise
integration. Integration
routines are built in IBM
DataStage™ and deployed
throughout Standard
Chartered Bank in repeatable
manner. Data is treated in a
consistent manner, critical to
Basel II compliance.
Result
• Delivers enterprise integration
and data consistency
necessary for Basel II
• Supports groups across the
Wholesale Bank (Group Risk
Management, Finance and
Special Asset Management
teams)
• Provides reliable information
for management and
regulatory reporting, portfolio
management and front-line
business users
20
IBM Software Group | WebSphere software
Single View
5
Product Records
Customer Accounts
Mrs. M. Talber
Depository Accounts
John & Molly Talber
Credit and Lending
Molly Talber
Investment Accounts
M Talber
Single View and Mapping
to Industry Data Pools
Single View Integration Pain Points


Duplications, errors and manual overrides in
transactional data received from sales
channels
Duplicated and inconsistent data in corporate
systems

No single understanding of customers

Not ready for Global Data Synchronization
Mortgage, etc
IBM Information Integration ValueCustomer Example

De-duplication of customer records stored in
multiple formats/systems

JP Morgan Chase

Real time account and customer information
against data received from branches; call
centers, Web etc

Wells Fargo

Edward Jones

Customizable business rules for matching
21
IBM Software Group | WebSphere software
JP Morgan Chase
JPMorgan Chase | A leading global financial
services company
Problem
Needed single, authorized
source for customer
profitability reporting &
analysis. Solution required
highly automated integration
process, straightforward
change management, and
ability to handle a diversity of
data sources.
Solution
Used IBM Information
Integration solution to
receive 300+ feeds from
product systems
worldwide, then transform
and load into a data
warehouse. 1TB+ of data
is now updated every 48
hours with daily refreshes
planned.
Result
 More than 20,000 internal
customers now use a single
corporate-standard customer
profitability “utility” to analyze
and make decisions that
improve the overall profitability
of the company
 No one is allowed to
comment or “spin” profitability
without referring to this utility
22
IBM Software Group | WebSphere software
Channel Optimization
6
Source Systems:
IBM Information
Integration Suite
• Kiosks
• ATM’s
• Call Centers
• Internet
• DDA Core Banking
• Branches
Authoritative
Database
Customer Inf File
Channel Pain Points

No single understanding of customers or
brands

Lack of a comprehensive view of data across
systems


Duplications, errors and manual overrides in
transactional data received from sales
channels
Inconsistencies between data in different
systems causing inaccurate information
IBM Information Integration Value Customer Examples

Link multiple disparate sources of information
through semantics-mapping and data
matching

Standards-based interfaces to integration
brokers

Maintain meta linking and matching between
data sources

In-flight data enrichment

Access to a broad range of legacy sources

Top Ten Brokerage Firm

New York Life
23
IBM Software Group | WebSphere software
New York Life Insurance
New York Life Insurance | Largest mutual
life insurance company in the United States
Problem
Solution
Agents and HQ staff were
unable to maximize customer
profitability or pursue upsell/cross-sell opportunities.
Detailed customer and policy
data residing in 15+ separate
legacy mainframe policy
systems with little to no
documentation and poor data
quality was unavailable to
users and multiple channels.
Multi-tier solution with UNIXbased operational data store
and enterprise data warehouse
feeding marts for reporting, and
7x24 web-based access.
Leveraging IBM DataStage™
to integrate legacy data into
warehouse and IBM
ProfileStage™ to better
understand and access
mainframe sources.
Result
 Improved customer visibility
by providing 10+ staff with ad
hoc reporting to complete
customer information
 Reduced IT costs by $130k
annually by eliminating manual
reporting
 Provided agents with 7x24
detailed customer and policy
data through secure web site
24
®
IBM Software Group
Websphere Data Integration Suite
Technical Product Overview
John Bekisz
© 2005 IBM Corporation
IBM Software Group | WebSphere software
WebSphere Information Integration Solutions
Delivering accurate, consistent, timely, and coherent business information
ProfileStage
AuditStage
RTI
QualityStage
Standard
APIs
Find
Information
Integration
Services
Analyze
ServiceIntegrated
Metadata Scheduled
oriented
Federate
Model
Event-driven
Place
Publish
Cleanse
Transform
Connect to Data and Content
Integrated Metadata
DataStage
DataStage TX
MetaStage
26
IBM Software Group | WebSphere software
The Ascential/IBM Data Integration Solution
Service-Oriented Architecture
Real-Time Integration Services
and Event Management
DISCOVER
PREPARE
TRANSFORM
and DELIVER
Discover
data
content
and
structure
Standardize,
match, and
correct data
Transform,
enrich, and
deliver data
ProfileStage
AuditStage
QualityStage
DataStage
DataStage TX
Parallel Execution Engine
Meta Data Management
• Open, Service-Oriented
Architecture
• Integrated Data Profiling & Data
Quality
• Advanced Data Transformation
and Routing
• Reusable Components & Rules
• Unlimited Performance with
Linear Scalability
• Robust, Intelligent Adapters
• Anytime, Anywhere Connectivity
• Industry Standard Compliant
(XML, EDI, JMS, JCA)
• Industry-Ready Integration
Solutions
Enterprise Connectivity
27
IBM Software Group | WebSphere software
Data Transformation: DataStage
DataStage
DataStage Server
Inputs
Transform
Quality
Why DataStage?

Graphical, codeless design environment

Extensible transformation platform that leverages
existing business logic

Built on the most scalable and adaptable
processing engine

Enterprise-class platform that delivers proven ROI

Manages the evolution from development to
deployment smoothly
Business Benefits

Unsurpassed levels of productivity

Accurate, consistent information delivered on-time

Consistent rules applied across applications

Data and process is auditable
Output
Multiple Jobs in Parallel
28
IBM Software Group | WebSphere software
 Integrated ETL development workbench
 Design, develop, view data
Transform
Complete Development Environment
 Debug, test, monitor & manage
 Metadata driven ETL processing
 Portability
 Develop anywhere, Deploy anywhere
 Client has access to multiple servers
 Server maintains all connectivity
 Extensible architecture
 Many Plug-ins to other vendors products
29
IBM Software Group | WebSphere software
It’s in There
 Date/Time Conversions
 Data Type Conversions
Transform
 Pre-built Functions
 String Manipulations
 Mathematical Formulas
 Data Warehouse Functions
 Surrogate Key Generation & Maintenance
 Aggregation
 Change Compare
 Data Manipulations
 Sorting, Merging, Joining, Filtering
 FTP, HTTP, operating commands
 Online Library available for Download
30
IBM Software Group | WebSphere software
DataStage Architecture
We keep you in the tool
High Degree of Reuse and version control at each level
Transforms and Routines
Tables
Shared Container
Job
Job Sequencer
31
IBM Software Group | WebSphere software
80/20 Rule
 Only Spend 20% of your time on these rules
 String formatting, Date conversions, Look-ups
Transform
 80% of Transformations are simple
 20% of Transformations are complex
 Spend 80% of your TIME on the 20% Complex

Too Much Data; Too Little Time

Data Scrubbing, householding, survivorships

Multiple Sources to Multiple Targets

Complex Business Rules which require business logic
– Nested if/then/else; case; loops; arrays
 EVERYBODY Does the 80% Easy Stuff Easily
 ONLY Ascential Makes the 20% Complex look Easy
32
IBM Software Group | WebSphere software
Easy to Use GUI
33
IBM Software Group | WebSphere software
Work as you think
34
IBM Software Group | WebSphere software
Extracting from DB/2 into Hash Files
35
IBM Software Group | WebSphere software
More Robust Example
36
IBM Software Group | WebSphere software
Transformation
37
IBM Software Group | WebSphere software
Example: MQ and QualityStage Integration
38
IBM Software Group | WebSphere software
Example: MQ and QualityStage Integration
39
IBM Software Group | WebSphere software
Example: MQ and QualityStage Integration
40
IBM Software Group | WebSphere software
Example: MQ and QualityStage Integration
41
IBM Software Group | WebSphere software
High Level Design
 Design the Extraction,
Transformation and Load
processes
 Work as you think:
 Move easily from
white board to design
 Integrated:
 Test, debug, data viewer,
run DS jobs and perform
maintenance from a
common graphical
workbench.
42
IBM Software Group | WebSphere software
Single Point of Control
43
IBM Software Group | WebSphere software
Full job control
44
IBM Software Group | WebSphere software
Produce and Consume Web Services
DataStage job
 Invokes Web services from within DataStage jobs
 WSDL browse & import capabilities
 Easily call WS operations from DataStage
 Web services can be sources, targets, or transformations
 Use WS PACK to invoke a Web service from a DataStage job
 Use RTI to package a DataStage job as a Web service
45
IBM Software Group | WebSphere software
Real-time Integration (RTI) Services
Ascential RTI Server – J2EE Environment
RTI Console
Web Service Client
Web Service
Client
Java Messaging Service
JMS Client
Enterprise Java Beans
Java
Application
Auditing
Authentication
Platform
Load
Balancing
Authorization
Logging
RTI
Agent
RTI
Agent
DataStage Server 1
“Always on”
RTI Services
connection to
Enterprise
Applications,
Portals, and
Business Process
Integration
RTI
Agent
DataStage Server 2
DataStage Server N
“Always on”
Transformer
RTI Input
RTI Output
QualityStage
“Always on”
Enterprise Integration Suite
46
®
IBM Software Group
Thank You
John Bekisz
mobile: 212.920.0566
jbekisz@us.ibm.com
© 2005 IBM Corporation
IBM Software Group | WebSphere software
One Integrated Solution
 Three Points of Integration
 GUI
 Server
 Metadata
55