Chapter 10 - Opening Case - Composable Business

Question 1

What are monolithic systems?

Answer 1

Systems that are provided by a single vendor, with no options for outside integration.

Question 2

What does monolithic mean? Why is this term used to describe a system?

Answer 2

A single large block of stone. They are single, large, and heavy, difficult to upgrade.

Question 3

What was the advantages of the monolithic systems?

Answer 3

If the environment was the same they are productive, efficient, and can get the job done fast. They were tightly integrated in the company and very rigid, everything works together very seamlessly.

Question 4

What is a composable system?

Answer 4

A technology that can add new features to any system regardless of whether the same provider built them. It provides flexibility for better customer service, rapid updates, and new features, without disrupting the entire system. They involve an API

Question 5

What is the role of the API in banking?

Answer 5

API can provide access in multiple languages, support customers with visual impairments, and enhance the customer interface. They can access their information through whatever tool, providing customers with flexibility.

Question 6

What are the benefits of composable systems?

Answer 6

1) Provides banks with the options to pick and choose software components
2) Develop a commerce suite for using the best vendors for each job.
3) Enable banks to choose the exact component that they need to configure new products
4) Since they take advantage of the cloud they can roll out updates without server downtimes for maintenance.

Question 7

Describe the composable banking case backstory.

Answer 7

It started back in the 1990s when banks were using a monolithic system to perform their computing needs. Back in the day, these systems were more than enough but as time progressed consumers demanded more from their banks such as online banking, and the monolithic systems were not developed in a way such that they could adapt to the ever changing needs of the consumer.

Question 8

Describe the composable banking case IT solution

Answer 8

Firms started to implement the composable system to give them for flexibility, adaptability, and greater control that they would require.

Question 9

What is the result of the composable system bank story?

Answer 9

The banks are still trying to change and integrate a composable system rather than a monolithic system, but it will take some time. However there has been some success with Medialonum in Italy with setting up the first digital bank that is flexiuble to ncustomer needs and serves 600,000 customers. In May 2022, Canadian Tire Bank set up on online platform composable system allowing its users to accerss internal and external information through the use of API and it serves 11 million customers.

Question 10

What are packaged business capabilities?

Answer 10

Software components that present and perform a clearly defined business capability