A recent industry survey cited that integrating and enhancing existing business systems and processes was the first priority of organizations. In the wake of current financial crisis and meltdown of global capital markets, financial institutions are facing challenges such as margin pressures, post-merger integration, growing customer demand for better services, and increasing regulatory scrutiny and compliance obligations.
Business transformation and innovation, orchestrating BPM (Business process management) and SOA (Service Oriented Architecture) concepts, are imperative for organizations to meet such challenges:
- BPM renders the much needed visibility into enterprise-wide processes, agility to adapt swiftly, and capability for continuous process improvement and optimization
- SOA is based on the principle of developing reusable business services and applications instead of monolithic applications in silos
Our clients, mainly banks, investment management firms, and brokerages have achieved significant cost efficiency by leveraging BPM to streamline and integrate front, middle, and back office trade processes. The holds true for risk and compliance operations also.
While the benefits of BPM are well documented, the capital markets have been slow at adopting process management. Most of the technology spend, over the past decade, was dedicated to data integration between the myriad of front to middle to back office applications with an intent to enable STP and improve trade lifecycle operations. Process integration took a back seat because of technological limitations and lack of enterprise focus.
Success with enterprise BPM initiatives, however, requires that BPM initiatives are aligned with enterprise architecture initiatives, leaving no gap between business strategy and IT implementation.
A BPM Lifecycle Assessment Survey conducted by Oracle revealed that companies combining BPM and SOA concepts are able to achieve better execution, greater reuse, and have better control over business processes than with BPM alone. As a key consumer of business services, BPM helps justify and fund SOA investments; SOA, in turn, enables BPM to scale quickly and effectively. SOA insulates BPM from knowing the details of the underlying systems, while BPM provides a high level of abstraction to define, monitor, and manage business processes.
However, in our experience, while working with clients on BPM-SOA implementation, BPM can be implemented without SOA by using pre-built, reusable services, thereby reducing the costs associated with system integration.
Syntel has been consulting and implementing business-aligned IT services, based on BPM-SOA concepts, helping clients transform their business processes and achieve goals.
Anil brings 18 years’ experience in the global BPO, having a proven track record in managing...