Enterprise Integration Architectures for the Financial Services and Insurance Industries



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George Kosmides Dennis Pagano Noospherics Technologies, Inc. gkosmides@noospherics.com Enterprise Integration Architectures for the Financial Services and Insurance Industries

Overview Financial Services and Insurance industries migration to ebusiness Current and emerging best practice techniques for Enterprise Application Integration (EAI) Typical architectural scenarios Layered architectures features and strengths J2EE Architecture model BEA elink product overview B2B integration scenarios B2B Transactions supported by EAI

Terminology What is a Legacy System? Answer: Any system that is running in production within your company As soon as it s delivered, it s a legacy system One person s legacy system is another person s corporate IT asset

Integrating New Systems with Current IT Resources To respond to rapid change, organizations must learn to integrate existing assets with new technologies Imperative: Leverage existing IT assets don t throw them away The Agile E-Business must Quickly embrace new technologies Rapidly build new systems and evolve business logic in existing systems Integrate new ebusiness systems with existing IT assets

Financial Services and Insurance Industry Integration Needs Core business model is the main asset Business model needs to be flexible and robust Accommodate change Large variety of delivery options Agents Exchange networks Direct sales Intermediary services branding Coordination of many internal groups

Scenario 1 Mortgage Loan Service Processing Apply a large number of rules to each customer situation Execute different workflows based on business rules Alternative Delivery Vehicles: Direct provider Intermediary (private label) to larger portal B2B engine Approve Mortgage Deal transaction One Business Transaction may require execution of a number of disparate IT resources Each IT resource may in turn execute another Business Transaction that calls on an external service

Scenario 2 Insurance Large number of products Variety of workflows for each product line Account Management Claims processing Underwriting Agent updates Uniform customer relationship variety of products Uniform agent relationship Single sign on Direct provider Intermediary

Scenario 3 Contract Payment / Settlement Provided by Financial Institution to support payment terms for contract between two trading partners May involve complex business rules Maybe long-running transaction May involve different workflows based on the size of the contract Transaction integrity is crucial

Scenario 3 Contract Payment / Settlement (continued) Often is intermediary, not direct provider May involve orchestration of a sequence of internal systems at the financial institution to perform the service One Service may call on other Services One internal system may call other systems One internal system may call on external services. currency exchange, credit check, etc.

What are the Common Requirements? There are multiple interfaces for calling the service To perform a single external Service, must coordinate many internal and external services credit, title, financials External Process Support B2B transaction with external mortgage vendor Internal Process - orchestrate execution of existing IT resources

Architecture Requirements Support rapid change in business model Embrace technology while leveraging IT resources Front-end integration- wide range of users and interfaces suppliers, customers, B2C, B2B, internal intranet Back-end integration - wide range of disparate systems Platforms, languages, environments External services (e.g., credit reports, title searches)

Architecture Requirements (continued) Public external process to handle semantics of the business service being provided Private internal process to orchestrate the sequenced execution of existing IT resources. One business transaction may encompass another credit report check is a small part of overall loan approval process

Layered Architecture Features Decoupled layers User interface Presentation Tier Interactive users - Web users, customers, agents Batch users - bulk orders, portal interface, branded intermediary Other systems - collaborative exchange networks Model Tier Business model is key strategic asset Technology independent Can support many View layers Service Tier (Enterprise Information System Tier) Interfaces to variety of internal systems - mainframes, ERP Interfaces to variety of external systems - credit services, etc

Layered Architectures B2Bi Server Intermediary - XML Feed to Branded Vendor HTTP Server JSP/ Servlet Server Web View Tier Presentation Other Application Business Model Model Tier ERP Mainframe Domino Server Oracle Financials Database Tier Information Enterprise

Layered Architecture Strengths Layered metamodel assures that one layer can change without affecting other layers Architecture is better able to handle and embrace change Metamodel is not based on any one technology, platform or bandwidth Architecture is better able to rapidly respond, adjust, respond to changes in User interface technologies Business model Services Patterns enable rapid change Composite pattern treat the complexities as one large-grain object Mediator pattern quickly switch between various tier models

J2EE Architecture

Problems Addressed by J2EE Provides a consistent architecture model for building enterprise applications using Java technology Standard set of services available in Java to construct enterprise applications Ensure security Ensure scalability Provide architectural support for high reliability J2EE integrates well with other e-business technologies, including B2Bi, EAI, and exchange networks

Enterprise Integration An enterprise has a variety of disparate systems ERP - CRM Mainframe - Financials Custom applications These systems need to be effectively integrated When integrated, they can support newer application platforms: Web application servers B2B exchange systems

The Basics of Enterprise Application Integration CORBA EAI is typically built on message-brokering frameworks Connectors or adapters plug-in to the brokering framework Provides for communication among disparate systems at the data, method and application level Often incorporates workflow management system allows definition and execution of flexible process to unify disparate resources Minimizes time and effort required to enact new business processes

EAI - Integration Types Data level integration Method level integration Application-to-application integration Application-to-application communication Data translation and transformation Business processes spanning the disparate systems

Overview of BEA elink Set of off-the-shelf products that support enterprise-wide integration Range of adapters Integration platform Information Integrator for Data Level Integration BEA WebLogic Process Integrator to define and execute dynamic business processes Use EAI to orchestrate execution and interaction with disparate enterprise systems Complete, integrated EAI solution

BEA elink Foundation Supports a variety of messaging models A complete distributed transaction-processing foundation Directly manages integration resources for end-to-end business process Solid, robust execution environment Supports distributed transaction processing Includes Jolt to extend Tuxedo to the web

elink Adapters Adapters expose application invocation calls and associated data attributes as services A service can be called or can call another application A service can be part of a business process

BEA elink Adapters Continually Expanding Set CRM Applications: Vantive, Siebel, Clarify ERP Applications: SAP R/3, PeopleSoft, Oracle Mainframe applications: CICS, IMS, any SNA peer; Unisys any system that supports Open Group XATMI over OSI TP time-tested mainframe adapters support online, two-phase commit transactions require no special programming skills on either end Billing applications: Portal, Kenan BEA elink Adapter for Broadvision, MQSeries, XML Database integration adapters elink Adapter Development Kit

BEA elink Information Integrator for Data Integration Provide data translation from various sources Graphical mapping tools easy change Enables common data exchange formats so that new business process can utilize data even though it originates in differing formats Rules based transformation Rules based routing

elink Business Process Option End-to-end business process automation Supports business process modeling Tasks, flows, events, roles Supports deploying automated business processes Supports reuse of models

Tried and True elink, with Tuxedo and the elink adapters provides solid, scalable, flexible EAI The elink architecture can support change BPO can now be replaced by WebLogic Process Integrator Other BEA products support new EAI architectures

BEA WebLogic Process Integrator Supports business process modeling Orchestration of disparate IT resources processes, stored procedures, COM objects, J2EE components Enables creation of business processes which may include execution of IT resources across heterogeneous platforms

BEA WebLogic Process Integrator - Process Flow Architecture How to Invoke How to Integrate 1. Events 2. Time 3. Manual JMS Topic Processor Worklist Start Process Engine Task Decision Task XML Event XML RMI Application EJB Components 4. Called API or Sub-Flow Done Sys Exec Application WLPI Template Definition (Studio) Template Store Instance Store WLPI Monitor (Studio)

Integration with BEA WebLogic Server BEA elink products can integrate with BEA WebLogic Server and its highly flexible enterprise Java application server capabilities

BEA WebLogic Server and J2EE Integration HTML / HTML Request/Response Purchasing System XML / JMS Request/Response JMS App. Server Web Tier -JSP / bean / servlet EJB/Application Tier WLPI JCA Adapters Mainframe

Typical Production Configuration Production Application Configuration B2Bi Server Content Management Personalization Server HTTP Server Web Tier JSP/Servlet Server Other Application Application Tier LDAP Server MQ Hub JMS Server ERP Mainframe Domino Server Oracle Financials Database Application Architectures 11-9

BEA WebLogic Java Adapter for Mainframe Enables direct access to IBM CICS and IMS mainframe applications from BEA WebLogic Server Java Direct integration with existing IBM mainframe apps. ebusiness applications can integrate with mainframe applications in real-time Bi-directional, online request-response integration Includes egen COBOL product generates Java source code from mainframe COBOL Java developers can generate EJBs and servlets to send data to/from mainframe without knowing COBOL Can generate XML documents from mainframe data

Business-to-Business Integration

Database Mainframe Supply Chain Custom Applications BEA elink ERP BEA WebLogic Server EAI BEA WebLogic Collaborate BEA WebLogic Process Integrator XML Web Integration XML Collaboration Space E-Market Integration Internet Dynamic Trading Partners Process Integration Corporate Firewall Enterprise Application Integration (EAI) Web Application Integration (WAI) E-Market Integration (EMI) End User

The ECI Integration Infrastructure (End-to-End ecommerce) http(s) BEA WebLogic Server BEA WebLogic Collaborate Enabler BEA WebLogic Process Integrator elink Java Adapter for Mainframe (JAM) Back-end Systems (WLPI) Adapter BEA ECA Personalization & Commerce Servers JOLT Information Integrator Adapter Back-end Systems

B2B Public Process Transaction Between Trading Partners Define Business Service to be provided Define Trading Partners who will be participants in the transaction. Define the XML documents which will be exchanged as steps in the transaction Define the ordered exchange of XML documents between trading partners The Public Process supports and enforces this required ordered exchange of documents BEA WebLogic Collaborate supports the Public Process Use BEA WebLogic Process Integrator or Java API to implement the Public Process

B2B Private Process Orchestrate IT Resources Implementing a Purchase transaction means: Checking Inventory to ensure availability of product Entering an order into the Order Entry System Reducing inventory in the Inventory System Entering the sale in the Accounts Receivable System Use BEA elink to wrap each of these IT Resources Use BEA WebLogic Process Integrator to orchestrate sequential interactions with each of these systems to perform the required actions

Scenario 1 Mortgage Services Use BEA WebLogic Process Integrator for Private Process which manages sequenced execution of multiple IT resources credit, title, financials BEA elink Adapters to connect to the disparate systems The Private Process encompasses many complex business rules Execute alternative workflows based in business rules

Scenario 1 Mortgage Services (continued) Alternative Delivery Vehicles for Service: Direct provider Intermediary (private label) to larger portal B2B engine Approve Mortgage Deal transaction All use same Private Process, but with different front-end interfaces Public Process Support B2B transaction with external mortgage broker

Scenario 2 Insurance Claims Use BEA WebLogic Process Integrator for Private Process manages sequenced execution of multiple IT resources Damage Estimate, Fault Analysis, Repair Approval. BEA elink Adapters to connect to the disparate systems The Private Process encompasses many complex business rules Execute alternative workflows based on business rules

Scenario 2 Insurance Claims (continued) Alternative Delivery Vehicles for Service: Internal Claims Agent B2B engine Steps in the claims process contracted out to third-parties. Same Private Process, but with different front-end interfaces Public Process Support B2B transaction with third parties to perform steps in claims process

Scenario 3 Contract Payment / Settlement Service Provide B2B engine to support payment according to contract terms Sequence of payments based on completion of terms of contract 25% when you finish Phase 1 50% after Factory Acceptance Test 25% on delivery of final documentation Public Process to implement and enforce the sequenced exchange of XML document which make up the Settlement transaction May involve complex business rules and long-running transaction

Scenario 3 Contract Payment / Settlement Service (continued) Use BEA WebLogic Collaborate to manage Trading Partners, Security, Certificates, etc. Use BEA WebLogic Process Integrator to implement the Public Process of exchanging XML Documents Private Process to orchestrate sequential execution of internal systems at the financial institution to perform the service Internal systems may, in turn, require calling on a business transaction provided by an external entity (e.g. currency exchange, credit check, etc). Use WLPI and elink to orchestrate Private Process

Summary Complex business environment constant change Financial services industry has complex e-business needs Need to re-use and extend existing IT resources Layered architectures enable flexibility J2EE offers solid architecture going forward BEA elink and adapters to integrate existing IT systems BEA WLPI orchestrate sequenced execution of existing IT resources (thru elink links) to implement complex, fluid, business transactions BEA Collaborate and WLPI support sequenced exchange of XML documents to implement B2B transactions

More Information Contact Noospherics for help in building a B2B/EAI solution using these BEA products www.noospherics.com Updated slides with additional architecture diagrams White Paper elaborating on this presentation George Kosmides - gkosmides@noospherics.com Dennis Pagano - dpagano@noospherics.com (410) 517.3100