Strategic Information Systems Plan
This report documents planning activity for the
KEMI Integrated Management Information Systems (KIMIS) project at Kwangju Bank (KJB) in
the city of Kwangju, South Korea. The report documents the Strategic Information Systems
Plan (SISP) for the KJB Strategic Data Model.
Participating in the development of the SISP were
staff from KEMI (Kwangjubank Economics & Management Institute - a subsidiary of KJB).
Facilitating the development was Clive Finkelstein (Chief Scientist of Visible Systems
Corporation in USA and also Managing Director of Visible Systems Australia Pty Ltd in
Melbourne, Australia - formerly Information Engineering Services Pty Ltd, IES).
Consultants from MBS Corporation in Seoul provided data modelling and project management
support to the project. MBS Corporation (Micro Banking Systems Corporation) is a Korean
Distributor of Visible.
KEMI staff defined the strategic data model in a
facilitated session with Clive Finkelstein, at Kwangju Bank on August 19, 1997. The
Strategic Model was reviewed and refined where necessary by KJB managers and business
experts in a Review Session on August 21 - 22, 1997. The Strategic Model identifies
information needed by KJB managers to achieve the strategic goals and objectives in the
KJB Strategic Plan as well as strategies and key performance indicators (KPIs).
Like many large organisations, KJB has massive
amounts of operational data. While this data provides detail at specific points in time,
much of the information that managers need for decision-making must be summarised from
this operational data as aggregates: analyzed from many dimensions; and also as change
trends examined over time. KJB databases and systems are designed to deliver this
information to management.
A town plan is the plan for construction of a
city. So also a Strategic Model is the "town plan" needed for construction of
KJB databases and systems. For suburbs that are needed first, the major roads in the town
plan are designed in detail and are constructed first so that initial buildings and houses
can be built. Similarly for information that managers need, first, the data from which
that information is derived must be defined in detail at the tactical or middle management
levels. As the layout of streets in a suburb is documented using a street map and a street
directory, so also data definitions are documented using a data map and a data directory,
called a data model.
When streets are in place, construction can begin
(using available raw materials) of buildings that will be occupied first. So also, once
detail data has been documented in data models for priority tactical areas, the source of
that data must be determined. This data is raw material for derivation of the information
needed by management.
Some data is presently stored in the existing KJB
operational databases. Other data may only exist in databases outside KJB. Once located,
that data must be processed: so transforming the raw data into the information needed by
management - analogous to constructing a building. As data changes over time, this
processing is carried out at regular intervals. The information that is derived from this
regular processing can be stored on a historical basis in a KJB Information Warehouse.
This is discussed briefly below and in more detail later in this SISP.
An Information Warehouse enables operational data
to be examined and analyzed historically from many different perspectives. This is called
"multi-dimensional analysis". For example, an Information Warehouse enables
factors contributing to the profitability of a Branch to be analyzed using software
packages that carry out OnLine Analytical Processing (OLAP). Operational data, summarized
in an Information Warehouse, can also be analyzed historically using Executive Information
Systems (EIS), Decision Support Systems (DSS) and Decision Early Warning Systems (DEWS).
An Information Warehouse can be developed from the KJB Strategic Model. This warehouse can
be used to analyze KJB operational databases so that time-dependent trends can be
determined from different perspectives such as region, product, type of customer.
As a street directory enables people to find
their way about the city, so a "Repository" is a directory of information in the
KJB databases and systems. It contains "meta-data" (data about data) that helps
managers find information they need. The Strategic Model documented in this SISP report,
together with more detailed data models still to be developed at the tactical level,
provide the meta-data for the KJB Repository.
Benefits of KJB Databases and Systems
Databases and systems developed from the KJB
Strategic Model have the following purpose and benefits for Kwangju Bank:
- A framework for provision of timely and accurate
information: accessed, manipulated and presented in many different ways to support the
changing requirements of business.
- A directory of information defining the meaning of
data, its current and historical context, and the relationship of that data to other data.
- Data integration to remove data inconsistencies:
reducing situations where regions and branches maintain different versions of the same
data or depend on data distribution from head office. Data distribution can fail, or
locations can update data at different times.
- An Information Warehouse that offers ease of use
in obtaining information from operational data bases, where that is currently very
difficult to obtain.
With an Information Warehouse
- Reduction of inflexible, hardcopy reports that are
not responsive to business needs.
- A saving in ad-hoc programming costs and time:
desktop tools enable managers and their staff to obtain information without having to wait
for IT resources to perform the work.
- Instant access to data to satisfy immediate
information needs of management, so removing the delays caused by multiple interactions
between managers and IT staff - with intrinsic possibilities for misunderstanding.
- Timeliness: delays in access to information incur
considerable costs for the Bank - due to an inability to respond promptly, and wasted
resources, both human and material.
- EIS, DSS, OLAP and DEWS Capabilities:
sophisticated end user tools for user friendly access - with a capability to "drill
down" through different levels of data summarization and aggregation in an
Information Warehouse, from the big picture to fine detail. A manager can examine the
result of an information request and decide to seek additional information, which can then
be provided immediately.
- Trend analysis: the opportunity to examine trends
over time and respond where needed to achieve outcomes.
- "What if" scenarios: the ability to
create hypothetical situations and assess their affect on the Bank. For example, "if
manpower in an area was to change in a defined way, how would this affect costs and
The KJB Strategic Plan was used as a catalyst to
identify information needed by management to achieve goals, objectives and key performance
indicators detailed in those plans. KEMI staff initially examined this plan in the
facilitated session on August 19, 1997. The session focused first on the Mission, Vision,
Direction, Strengths, Weaknesses, Opportunities and Threats (SWOTs), Goals and Objectives
in the Strategic Plan. These are listed in Figure 1 and are discussed in the following
|Kwangju Bank Strategic Plan
All Statements in The Entire Model
Tue Aug 26 12:43:23 1997
||A - MISSION : HARMONY OF LIFE AND
- Contribute to the development of regional economy
and to the affluent life of customers and employees with progressive banking activities.
||B - VISION
- KJB group - Integrated finance group leading the
- KJB - A regional financial nucleus expanding
- An integrated financial institution leading the
banking culture of daily life
- A human-first bank realizing the dreams of all
Kwang Eun group
||C - KJB STRENGTH
- Relatively young people and quick decisions
- Excellent information Infrastructure and
- Good community customers with the loyalty to KJB
and strong branch networks in the community
- Many experiences pursuing various innovations
- Employees with the same identity
- Relatively flexible organization
||D - KJB WEAKNESS
- Weak Economy in the main business regions
- => not good debt structure and not good asset
- Relatively small size bank
- Short of business experts with knowledge and
skills => In every business area which demands special knowledge such as funds
management, international banking, marketing, product development, risk management, etc
- Short of managers with good leaderships and
- Not enough endeavours to utilize IT strategically
- Not good image in service quality
- Difficulties in hiring talented persons
- Weak capability of consolidating various
||E - OPPORTUNITIES
- Deregulation enables KJB to advance into new
market, introducing new products and new business
- Speeding up information around the world allows
KJB to do business with no boundary limit
Internationalization and openness bring new overseas business opportunities
- Potential possibility of the development of the
- => Opportunities of SOC construction.
- Competitors aggressively advancing into KJB's main
||F - THREATS
- Rate liberalisation causes KJB to endure pain if
the spread margin between loan rate and deposit rate falls precipitously
- Deregulation makes new competitors equipped with
new products and high technologies emerge in the market
- New competitors through Internet
||G - BROAD PRESENCE
- (Phase I) : Build up strong business basis and
- => Building up strong business networks in the
South West region and infrastructure for electronic banking(internet)
- (Phase II) : Do business with no boundary limit
through electronic banking
||H - INFORMATION BUSINESS
- (Phase I) : Place KJB's information structure on a
firm base to share Enterprise wide knowledge
- (Phase II) : Lead information industry specially
in banking areas
||I - GLOBAL BANKING
- (Phase I) : Establish a basis for Global banking
- => Strengthen the capability of international
- (Expand overseas branches and increase foreign
currency deposits and funds)
- (Phase II) : Expand international banking services
inside and outside the bank
||J - SCOPE DIVERSIFICATION
- (Phase I) : Build up sound and healthy management
- => Select conservatively approaching way to
diversification responding to the change of customers needs as considering KJB's weak
- (Phase II) : Realise Retail Universal Banking
||K - STRATEGIC MANAGEMENT
- (Phase I) : Build up systems for strategic
- => Acquire excellent quality human power,
Proper Organization, Risk Management System
- (Phase II) : Realise effective Strategic
Figure 1: KJB Major Strategic
The major planning statements in Figure 1, and
others from the KJB Strategic Plan, were all entered into Visible Advantage, an Integrated Computer
Aided Software Engineering (I-CASE) software package that provides automated support for business-driven Information Engineering
(IE) - the methodology used to develop the Strategic Model and this SISP. The resulting
planning report is documented in Appendix 3 - Planning Statement Report. The Goals
and Objectives Matrices later in this document include matrices showing areas of the
Bank responsible for each planning statement (see Figure 4 and Figure 5).
Strategic Plans, to be effective, must be
implemented at all management levels throughout an organisation. Some clarification may be
needed so that staff responsible for implementing plans at a lower level clearly
understands what management requires of them. Alternatives, which arise during this
implementation, may also be of interest to management at a higher level. Figure 2 shows
that feedback should be provided for management review and refinement where appropriate.
Figure 2 also shows that business-planning
methods help staff develop detailed plans at lower levels. Business-driven data modelling
methods then help them to identify their information needs, based on those developed
plans. This provides immediate feedback that can suggest refinements to developed plans
that management feel are needed. Identified information will later be included in the
Information Warehouse and data from which it is derived will be included in the KJB
databases and systems.
Figure 2 : Strategic Planning Feedback from Implementation
This feedback, the refinement of plans and
identification of information needs is carried out in tactical-level projects discussed
later. This approach will:
- Result in databases and systems that will deliver
management information at all levels of KJB, to help managers carry out their
responsibilities and achieve their defined plans.
- Identify information that managers will need from
the KJB databases and systems, and the data to be stored in the Information Warehouse
where it will be used to derive that information.
- Provide invaluable feedback to management to
clarify the wording of planning statements where needed, so those statements are correctly
interpreted and implemented.
The Mission in Figure 1 is a foundation for all
KJB activities. Its focus is: "Contribute to the development of regional economy
and to the affluent life of our customers and employees with progressive banking
activities". We will use statements in Figure 1 to illustrate a high-level
representation of the Strategic Model, as shown in Figure 3.
The CASE tool Visible Advantage (previously called IE:
Advantage) was used to capture details of the information needed by managers for
decision-making and the data from which it is derived, as shown in Figure 3. This
information and data are represented in data models that will later be used to build KJB
databases and systems and the Information Warehouse that will provide the required
information to management. For example, Figure 3 is a graphical Strategic Data Map for
Marketing within the Strategic Model. It shows marketing data needed based on the KJB
Strategic Plans. It also contains additional data defined from other strategic statements
in Figure 1. This will be discussed later, in Representing Strategic Plans in a
Strategic Data Model.
Figure 3 : Strategic Data Map for Marketing within the KJB
The Strategic Plan documents the KJB Mission,
Goals and Objectives for Kwangju Bank. The assignment of Goals to Functions in the CASE
tool is displayed in a Statement - Model View Matrix, partly illustrated in Figure 4.
4 : Achievement of Goals Involves Many Areas of the Bank
The Statement - Model View Matrix in Figure 4
lists each statement on a separate row, showing functions responsible for those statements
by ticks in the relevant Model View columns. Figure 4 shows that the Goal: G - Broad
Presence applies to many functions, as illustrated by ticks in relevant Function
Objectives for functions are shown in Figure 5.
This Statement - Model View Matrix lists each objective on separate rows with ticks in the
relevant Function columns. Figure 5 shows that the goal: G- Broad Presence has four
objectives, numbered G1 - G4. Objective: G3 - Build up Total Marketing System
applies to Marketing and Planning & Resource. Additional ticks show
statements that require coordination with other functions in each relevant Function
This linking of objectives to functions clearly
shows, for each row, all of the functions involved in achieving that objective. And by
reading down each Function column all of the goals and objectives that each function
supports are apparent. The full Statement - Model View Matrix of Goals and Objectives is
included in Appendix 4 - Goals and Objectives by Function.
Figure 5 : Achievement of Objectives Requires Much Coordination
Figure 3 showed that strategic planning
statements are represented by a high-level strategic data map of the data and information
needed by management in support of those plans. This has been repeated as Figure 6 for
easy reference in the following discussion; it is part of the Strategic Data Model
developed in the facilitated session.
Figure 6 shows a highlighted box: MARKET NEED.
This represents Market Needs data and is called a "data entity" that may
later be implemented as a database table in the KJB databases and systems. The lines
joining this data entity to other entities show a relationship exists between each pair of
joined entities. This relationship line is called an "association".
Business rules that have been defined for the
effective and efficient operation of KJB are shown schematically as symbols on association
lines in the data map. The meanings of these symbols are discussed next. Narrative
statements that clarify the correct application of each rule should also be used to define
business rules. These rules will later be incorporated into KJB databases and systems so
managers can readily identify the information they need to assess achievement of goals and
Figure 6 : Strategic Data
Map for Marketing in the Strategic Model
The symbols on each end of an association line in
Figure 6 provide information about the association. An association with a "crows
foot" (---<) indicates many, while the absence of a crows foot indicates one.
These are called the association degree or cardinality. A zero on the line
(--0-) indicates optional and is interpreted as "may"; a vertical
bar on the line (--|-) indicates mandatory and is interpreted as
"must". These are called the association nature. A third association
nature uses a zero and a vertical bar (--0|-) together to represent optional becoming
mandatory. This indicates time-dependency and is interpreted as "will".
When the KJB Mission was discussed in the
facilitated session, it was agreed that a market must have at least one (or many)
needs for products from KJB, while many markets may have a need. This is shown
diagrammatically in a data map as follows:
This is called a many to many association
between MARKET and NEED. It is difficult from this to determine which markets have what
needs. An intermediate entity (an "intersecting" entity) is used to
identify specific needs for each market, as shown next.
The line between MARKET and MARKET NEED shows an
association of mandatory one to mandatory many. This represents the business
rule that a market must have a need for at least one (or many) of the
products that are provided by KJB, to be a market of interest to KJB. However the
association between NEED and MARKET NEED is mandatory one to optional many. This
indicates that zero, one or many markets may have a need.
Furthermore, an intersecting entity (derived by
decomposing a many to many association) is a high-level representation of a
business activity or business process. MARKET NEED thus represents the business activity: Market
Needs Analysis. A strategic map developed in this way therefore can be used to
identify not only fundamental data used by KJB, but also indicates major KJB business
7 : Market Needs are related to the Customer Satisfaction Index (CSI)
For example, to understand Market Needs, KJB must
have information about its markets and their needs - shown as lines joining MARKET NEED to
MARKET and also to NEED in the data map. These related entities are shown highlighted in
Figure 7. Market Needs are also related to time and customer satisfaction - shown by
association lines to PERIOD and to CSI (Customer Satisfaction Index) - which are also
highlighted in Figure 7. At a strategic level an association represents: reporting paths,
communication paths, management controls, audit controls or coordination required to
manage the operation of areas of the business that refer to data in the entities joined by
The planning statements in the KJB Strategic Plan
were used to identify major data entities and associations in the strategic data map as
discussed above. Appendix 3: Planning Statement Report shows the data entities
relevant to each planning statement listed under the statements as "Data
Links". This clearly indicates to management the data relevant to each planning
statement from which information is derived; it provides design input to develop the KJB
databases and systems. These Data Links are shown (in part) in Figure 8, for the KJB
Data links in upper case in Figure 8 (such as
MARKET and MARKET NEED) represent the data entities that provide information to support
the KJB Mission. These entities will later be implemented either as KJB databases and
systems or a KJB Information Warehouse to provide required information.
8 : Planning Dictionary shows Data Links supporting Mission. MARKET NEED in Data
Dictionary has Statement Links to Mission and other Statements
Figure 8 also shows the data entity MARKET NEED
with corresponding Statement Links including that for A - KJB Mission. It shows
those planning statements that can be examined to determine performance or other data that
may be held in the data entity to provide required management information.
The Objectives in the Strategic Plan (see
G1-G4 in Figure 5) enable high-level assessment by KJB (and others) of its effectiveness
in achieving the Mission. However these Objectives are expressed qualitatively at present:
they are not yet directly measurable in this form. Any such measurement would be indirect,
by aggregating achievement of quantitative key performance indicators (KPIs) at lower
business levels. This Objective assessment should be clearly stated in the Strategic Plan
and also at lower business levels. Clear statements in the Strategic Plan that indicate
how Objective achievements and KPIs are measured were not apparent.
Objective statements in the Strategic Plan should
ideally be expressed in terms that can be quantified. Further refinement of the Strategic
Plans would allow direct assessment of Objectives from key performance indicators in
different Functions of the Bank.
Any data links listed in Figure 8 in lower case
are data attributes; later to be implemented as columns in the data tables that implement
those data entities. Attributes provide the detailed information that is required by
management from the KJB databases and systems. Objectives or KPIs are expressed
quantitatively (rather than qualitatively). They must be measurable and so are represented
as attributes - used to measure the achievement of the Objectives or KPIs.
To give an example, an attribute "percent
market profit this period" can be included in MARKET NEED to measure the
achievement of a "Market Profitability" KPI.
Using Objectives and KPIs, attributes that
measure performance or that provide additional information to management can be defined in
the Strategic Model. They require refinement through data modelling at the Tactical level
by business managers and staff who have expert knowledge of the Bank and its different
functions. This tactical data modelling will identify data attributes that provide
specific performance information that managers require.
The KJB Strategic Plan sets directions for the
future of the Bank. Data and information needed to support achievement of the Strategic
Plan were identified in the Strategic Data Model, as discussed above. We will shortly see
that the Strategic Model can be used to identify business activities that are also needed
to support the Strategic Plan. But first, existing Business Functions in the Bank were
identified as documented in Appendix 7. The activities in the Strategic Model will later
be related to these functions in a Business Activity - Business Function Matrix.
The Strategic Model, documented in detail in
Appendix 1 - 6, will later be used to define more detailed data at the tactical and
operational levels of the Bank. These tactical and operational data models will indicate
the data and information needed for implementation of databases and systems that support
the Strategic Plan at those levels. These data models will need to be compared with the
data and information provided by current databases and systems that are used by the Bank.
Much of the data required for the future would also be the same as data used today.
However additional data and information may be needed to support Global Banking and other
goals of the Bank, which are not required by current databases and systems.
Additionally, information that managers need to
support achievement of the Strategic Plan is proposed to be provided by an Information
Warehouse (IW), which would be implemented by the Bank as discussed later in this SISP
Report. This Information Warehouse would be populated periodically by data from normal
operations of the Bank, extracted from current databases and summarized for analysis by
To assist comparison against the tactical and
operational data models as described above - and to identify source data that would need
to be extracted and loaded into a KJB Information Warehouse - the current databases and
systems will need to be documented in detail, and will later be described in Appendix 8 -
Data models of the current databases will need to
be developed by the Bank, using the technique of Reverse Engineering in conjunction with
the Visible Advantage CASE tool. This is discussed further in the section documenting the KJB
An organisation as large as the Bank is very
complex. The data models representing the Bank are also complex. To assist in managing
these data models, the Strategic Model has been structured into a number of model views
with a hierarchy structure which represents subsets of data and information of interest to
the Bank. These model views are described as follows:
- Marketing: Marketing-related
information and an aggregate of its marketing-related business activities. Marketing
comprises the following more detailed model views.
- Market Management: Market segmentation,
analysis of the needs of customers by each market, analysis of competitors by regions,
marketing campaign and promotion activities, customer credit analysis, investigation and
analysis of CSI.
- Customer Management: Customer Management
should be able to provide KJB with aggregate information needed for segmentation of
customers and management of target customers (to help build marketing strategies). In
addition and more importantly it should provide basic customer information needed for
business activities such as sales, advisory service and promotion in the field.
- Product Management: Information
related to products, such as product development and management, and an aggregate of
product-related business activities.
- Branch Management: Information
related to branch operation, such as branch planning and marketing and an aggregate of
branch-related business activities.
- Risk and Finance: Information related to
risks, funds management, treasury, finance and cost and an aggregate of activities in
these areas. Risk and Finance comprises the following more detailed model views.
- Risk Management: Information
required for risk analysis and management, and an aggregate of risk-related business
- Portfolio and Treasury Management:
Activities managing funds, assessing performance of funds management and decision-making
in funds and assets management.
- Financial Management: Finance-related
information such as budget, finance and accounts and an aggregate of financial activities.
- Cost Management: Cost-related
information such as product-cost, customer-cost, direct cost, indirect cost, standard
cost, cost drivers and an aggregate of cost-related activities.
- Planning and Resource: Information related
to planning and performance, external factors and resources, and an aggregate of
activities related to these areas.
- Planning and Performance Management: Mid-
and long-term management planning on a business sector basis according to performance
measures, including information related to business planning such as strategic planning,
market planning and performance measures, and an aggregate of business activities related
- External Factors Management: Activities
analyzing external factor information that affect KJB strategies such as the economic
index, money trends, interest rate, exchange rates, and providing external factor
- Resource Management: Resource-related
information addressing human, material and other resources and an aggregate of
resource-related business activities.
This model view structure is shown in a Model
View Hierarchy diagram, in Appendix 1.
Each model view represents a subset of data of
interest to the Bank. At this strategic level of definition, only major databases and
activities have been identified. For example, the model view for Marketing Management
includes data for Markets and Needs: represented by the data entities MARKET and NEED. It
also includes data representing the Market Need Activity: as MARKET NEED. These are
discussed further in Business Activities Identified from the Strategic Data Model.
Data and information representing markets, and
needs of those markets, would also be included in a Marketing Data Mart in the Information
Warehouse. A Marketing Data Mart is a focused subset of data, for analysis by Marketing
Managers and staff within KJB. Executive Information Systems (EIS), Decision Support
Systems (DSS) or Decision Early Warning Systems (DEWS) are used to carry out this
analysis. Further analysis based on the techniques of Data Mining also use OnLine
Analytical Processing (OLAP) systems.
At the tactical and operational levels, the
MARKET and NEED entities will expand into more detail; they will eventually represent
detailed Marketing and Needs Assessment databases. The MARKET NEED entity
(for the Market Needs Activity) will also expand into more tactical and operational
detail; it will represent tactical Market Needs Analysis Processes and operational Market
Needs Analysis Systems.
An entity may appear in one more than one model
view, where the data in that view is of interest to many parts of the Bank. Each model
view with an interest in an entity is listed under that entity in the Entity Report,
included as Appendix 6. The Entity Report can be printed for The Entire Model (as shown in
Appendix 6), or may be printed for one or a group of model views. For example, the
Marketing Management model view can print an Entity Report that specifically includes only
those entities within that model view. This enables managers and staff interested in the
Marketing Management model view to focus only on data relevant to them, without needing to
be aware of data used in other model views but of no interest to Marketing.
Over 200 entities were identified in the
Strategic Model and documented in the Appendices. Each entity typically would later be
implemented as a database table. The number of entities at this strategic level will
expand to around 1,000 entities when the tactical and operational data models are fully
defined. Managing this number of entities is very complex. Model views help to manage this
complexity; they enable priority subsets of the Strategic Model to be extracted for more
detailed tactical and operational data modelling, as priority projects. This is discussed
next, in Projects Identified from the Strategic Model.