In the context of digital transformation, technology-driven business innovation results continue to emerge, and continue to feed the technical system to develop in a more scientific and reasonable direction. Especially for commercial banks, business architecture, as a key input to carry out application architecture planning and component system construction, has been widely concerned by the industry. In order to deeply explore the feasible path and method of scientific implementation of business modeling, our reporter interviewed Zhang Ming, senior vice president and chief innovation officer of Endorsing Technology.

China Financial Computer: From the perspective of technology empowerment, what do you think is the main role of business modeling?

Zhang Ming: From a macro point of view, business modeling refers to the use of standardized, structured, componentized model language to describe the business, and then become the link and bridge between the realization of strategic capabilities and application system development. Specifically to the implementation process, business modeling refers to the top-down decomposition of enterprise-level business capabilities from the perspective of enterprise value chain by decomposes business layer by layer into business areas, activities, tasks and steps that deliver value externally. Then, based on the structural connection between the process, data, product and user experience, the business needs are accurately described, laying a solid foundation for lean management and model-driven development, and helping the digital transformation of enterprises.

In terms of actual output, the results of business modeling mainly include process model, product model and entity model, which restore the essence of business from different dimensions. Among them, the process model reflects the operation model, the product model reflects the business innovation, and the entity model reflects the business model. Taking process modeling as an example, as an important part of business modeling, its core goal is to extract the basic elements that can reflect the nature of the business through de-scenarioization based on the perspective of the business activities of the enterprise, and then reconstruct various business components accordingly, and form reusable business capabilities through integration with different scenarios, so that the enterprise can better respond to the rapidly changing market demands. In short, it is to return to the source first, and then to include everything.

China Financial Computer: Combined with the current hot spots, do you think “artificial intelligence +” will have an impact on the development of business modeling?

Zhang Ming: Artificial intelligence is naturally application-driven and has the potential to enhance technology in any field, and this property also applies to the field of business modeling. If AI empowerment is seen as an inevitable process, then the development of business modeling may go through three stages of development.

The first stage is the automation stage of application research and development, that is, through certain programming design, the use of artificial intelligence technology to achieve automated coding, so as to simplify the process of application construction and realize business drive from the technology.

The second stage is the application design automation stage, that is, based on machine learning and other capabilities, through the establishment of a special large model of the business field, with specific model inputs to automatically generate application architecture design schemes, from the design to achieve business drive.

The third stage is the intelligent stage of business modeling, that is, with the support of a large amount of computing power, the automatic analysis of business requirements and model training, so as to quickly produce customized business models and realize business drive from the demand side.

In short, in an ideal state, artificial intelligence will greatly promote and simplify the realization process of intellectual labor achievements, but in this process, it also faces a series of technical and ethical problems to be solved. Especially in the field of financial technology, it is recommended that financial institutions treat it rationally and use it prudently!

China Financial Computer: For the banking industry, what do you think should be the focus of business modeling in the process of landing?

Zhang Ming: From the perspective of implementation, as an important input to guide the construction of application architecture, business modeling through the formation of business architecture and high-level business models can solve the common boundary division pain points faced by banks in the process of IT system construction under the premise of limited resources and time. In the process of application architecture to undertake business modeling, financial institutions need to focus on authenticity, integrity and timeliness.

One is to ensure authenticity. Business modeling is a structured way to reflect the nature of the business, so it means that all the model results should be accepted in the system landing process without discount, once the choice will not be able to truly reflect the nature of the business. However, in terms of the landing path, the bank can achieve it in batches according to a certain plan. In addition, from the perspective of business modeling methodology, in the process of application architecture to undertake the three models, banks should also design a set of implementation processes to match the model landing, so as to better reflect the real needs of the business.

Second, focus on integrity. The business model is a highly abstract product, and the query function, maintenance function and exception handling function, which account for a certain proportion in the business system function, are often not included in the narrow business model. Therefore, if you want to truly restore the nature of the business with the business model, you should also consider the description and design of such auxiliary functions in advance in the demand analysis stage, and plan the corresponding implementation strategy, so as to build a more perfect application system and better undertake all the needs of the real business.

In addition, in the process of system construction, if the bank adopts the implementation strategy of batch production, it means that there will be a parallel transition period between the old and new systems, and the needs of the transition period are usually not reflected in the business model. In this regard, the bank should, after clarifying the production strategy, determine the description method of relevant requirements and the proposed time point, and carry out the implementation process design including demand analysis, design, development, testing and production based on the modeling results (including the generalized business model). In addition, by building a complete tool chain support system, the work efficiency will be effectively improved, and the quality requirements of the implementation process can be solidified into the tool, and the quality of the output can be effectively guaranteed.

Third, maintain timeliness. As an important part of bank digital construction, business modeling is obviously not a one-time achievement, and how to keep the business model “fresh” is the key link to solve this problem. In this regard, banks can start from the business architecture and business model, complete the requirement impact analysis through different application combinations, and then find out all related parties to achieve synchronous changes. In other words, based on the business model and related requirements, a set of demand tracking matrix is formed, and then the solution is found from the business demand side and implemented in the implementation process.

As a technology company that adheres to the IT solution market of the banking industry, Agree Company focus on science and technology of business, is committed to accelerating the digital transformation of banks, and hopes that through the promotion and application of business modeling concept, financial technology can better play an empowering role, so that banks can avoid detturns in the process of developing new quality productivity. High level model design to help the bank high-quality development.