A Large South American Bank Establishes Robust Enterprise Architecture Program to Improve Business Performance

A leading private bank in South America decided to partner with TCS) to craft a complete and multi-faceted EA program. The EA definition and EA program resulting from this engagement enhanced business performance and statutory compliance.

“Our EA practice has been established solely due to the excellent consulting services and visionary leadership provided by TCS. With TCS' support we have been able to quick-start a robust and results-oriented EA practice in a short duration of time.”

 – Head, Architecture and Planning

The Customer
The client is one of the largest private banks in South America, with more than 200 branches in the parent country and subsidiaries worldwide. With a history spanning over a century, the bank offers services to customers, businesses of all sizes and leading corporate and government bodies. It has consistently expanded its bouquet of financial services to remain competitive in the commercial banking domain.

Business Scenario
In 2007, the bank decided to focus on its core business and have its IT requirements managed professionally. As a part of its response to rapid growth opportunities and competitive market pressures, the bank implemented several bespoke technology solutions. The objective was to better manage critical business capabilities, while seamlessly achieving a more holistic view and propelling reusability.

The organization decided to partner with TCS to achieve these objectives by architecting a customized and refurbished EA. TCS’ technology capabilities, consulting solutions, and domain expertise contributed to this decision.

TCS’ Solution
TCS worked in close collaboration with the bank’s CIO team and business functions to develop a customized EA framework. The EA framework and methodology was created using The Open Group Architecture Framework (TOGAF). The other industry standards followed in tandem with TOGAF were Banking Industry Architecture Network (BIAN) for business capability and International Data Corporation (IDC) for software and hardware taxonomies. TCS helped the client define a comprehensive business capability map using BIAN.

TCS developed an understanding of the client’s ecosystem—processes, systems, people, and projects, and their interdependencies. A simplified IT landscape was created by optimizing the IT systems portfolio through gap analysis. An actionable EA roadmap was defined to chart the way ahead, with end-to-end traceability of critical business processes across businesses, applications, data, and technology domains, allowing transparency in operations. The new standardized systems promoted scalability and the reuse of existing resources. TCS also built a clear operational blueprint by defining EA governance structures, including organizational structures, EA processes, and roles and responsibilities. The EA repository and tools created have helped the organization maintain EA artifacts for future reference and for effective use in business change programs.

TCS’ recommendations helped the client set up a multi-faceted, connected, and composite EA matrix, establishing a stronger IT infrastructure built for growth, improved visibility, and better reusability. 

Key Benefits
With the implementation of TCS’ recommendations on EA analysis, governance structures, processes, and roles, the bank was able to establish a robust EA governance, as well as realize these benefits:

  • Pioneering implementation of industry-leading practices: The client was one of the first enterprises in the country’s banking industry to formally introduce EA practices and structures, setting the benchmark for future practices. Moreover, standardization of banking channels based on industry best practices adopted helped the client emerge as the market leader in regulatory compliance.
  • Business and IT strategy alignment: The new EA practice strengthened relationships between business and IT by increasing transparency between departments. Client annual project portfolio planning follows the BIAN structure of business capabilities which helps in prioritization of IT initiatives to build the required business capability in alignment with the client’s IT strategy. End-to-end visibility of all IT components enabled faster root-cause analysis and decision-making. The client could now establish a stronger support system for deposits, withdrawals, payments by cheque, and payments by cash constituting 30 percent of all business.
  • Focus on quality control: Compliance with architecture standards and principles was achieved through the supervisory capabilities of the EA committee set up to review all IT initiatives. This promoted the reuse of existing solutions and approved technology stacks in solutions. Approximately 97 percent of newly commissioned projects have been compliant with EA standards and policies since this committee was set up. The EA committee has also accelerated informed decision-making, enhanced control over IT investments, improved procurement processes, and reduced conflict between business and IT initiatives.
  • Enhanced scalability through IT optimization and standardization: The EA program helped the bank experience 80 percent reduction in logical applications through application portfolio analysis. An application taxonomy was developed to create a single version of truth for all EA components and establish clear differences between an application, application component, web service, window service, technology components, and so on. Along with the definition and update of all EA principles and standards, TCS helped the client to standardize and enhance reusability of applications.

Reach Us.