Xây dựng chiến lược phát triển cơ sở hạ tầng công nghệ thông tin cho cấu phần máy chủ và lưu trữ dữ liệu của b

41 CHAPTER 2: FORMULATION OF THE STRATEGY FOR DEVELOPMENT INFORMATION TECHNOLOGY INFRASTRUCTURE FOR SERVER SYSTEMS AND DATA STORAGE AT BIDV DURING 2019-2024 .... 78 CHAPTER 3: PROPOSAL O

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

TRẦN SỸ CỪ

BUIDING STRATEGY FOR DEVELOPING INFORMATION TECHNOLOGY INFRASTRUCTURE FOR SERVER SYSTEM AND

DATA STORAGE AT BIDV DURING 2019 – 2024

XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN CƠ SỞ HẠ TẦNG CÔNG NGHỆ THÔNG TIN CHO CẤU PHẦN MÁY CHỦ VÀ LƯU TRỮ DỮ

LIỆU CỦA BIDV TRONG GIAI ĐOẠN 2019-2024

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

TRẦN SỸ CỪ

BUIDING STRATEGY FOR DEVELOPING INFORMATION TECHNOLOGY INFRASTRUCTURE FOR SERVER SYSTEM AND

DATA STORAGE AT BIDV DURING 2019 – 2024

XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN CƠ SỞ HẠ TẦNG CÔNG NGHỆ THÔNG TIN CHO CẤU PHẦN MÁY CHỦ VÀ LƯU TRỮ DỮ

LIỆU CỦA BIDV TRONG GIAI ĐOẠN 2019-2024

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS HOÀNG ĐÌNH PHI

HÀ NỘI - 2018

DECLARATION

The author confirms that the research outcome in the thesis is the result

of author‟s independent work during study and research period and it is not yet published in other‟s research and article

The other‟s research result and documentation (extraction, table, figure, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Hanoi, September, 2018

Author,

Tran Sy Cu

ACKNOWLEDMENT

I have gained huge knowledge, skill and insights from my MBA course The course raised my capacity of administration and management up

to the next level I would like to extend my sincerest thanks and appreciation

to all those who have made this thesis possible

I would like to express my great gratitude to my supervisor, Assoc Prof Dr Hoang Dinh Phi for his useful comments, remarks and engagement during my process of doing this master thesis I would also like to thank the leaders and staff of IT Center of BIDV and Technology Department of BIDV who enthusiastically participated in the survey and provided me with valuable advice and comments during my thesis completion

Sincere thanks are extended to the Hanoi School of Business & Management – Viet Nam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects I also would like to thank my classmates for their friendship and reciprocal encouragement to make our class unforgettable time

During the process of writing the thesis, although the effort has been made, due to the limitations of the level of knowledge, practical experience, experience in scientific research, the thesis is inevitably limited I would like

to receive the comments of researchers, teachers and readers so that the thesis

is more complete both scientific and practical reason

Hanoi, September, 2018

Author,

Tran Sy Cu

CONTENT

DECLARATION i

ACKNOWLEDMENT ii

ABBREVIATION v

LIST OF TABLES v

LIST OF FIGURES vii

INTRODUCTION 1

CHAPTER 1 BASIC THEORY ON BUILDING CORPORATE STRATEGY AND IT INFRASTRUCTURE FOR BANKS 11

1.1 Concepts and Definition of a Business Strategy 11

1.2 IT and IT Strategy for Bank 12

1.2.1 IT Infrastructure for Banks 12

1.2.2 Server Systems for Bank 14

1.2.3 Data Storage System for Banks 20

1.2.4 IT Strategy for Banks 27

1.3 Classification of strategies 30

1.4 Process of building strategy 33

1.4.1.Design of mission, vision and objectives 33

1.4.2.External Factors Evaluation (EFE) 35

1.4.3 Internal Factors Evaluation (IFE) 37

1.5 Strategic options matrix (TOWS) 39

1.6 Selection of strategic options 40

Conclusion for chapter 1 41

CHAPTER 2: FORMULATION OF THE STRATEGY FOR DEVELOPMENT INFORMATION TECHNOLOGY INFRASTRUCTURE FOR SERVER SYSTEMS AND DATA STORAGE AT BIDV DURING 2019-2024 42

2.1 About BIDV and IT system of BIDV 42

2.1.1 About BIDV 42

2.1 2 Information Technology of BIDV 48

2.2 Analysis of the context and status of server and data storage system and

related issues at BIDV 52

2.2.1 Context and status of servers and data storage system of Corebanking 53

2.2.2 Human Resource for managing and operating servers system and data storage system of the Bank 58

2.3 Analyze the trends in IT development in the world, impact on server systems and data storage in the banking industry 59

2.3.1 The trends in IT development in Banking 60

2.3.2 Trends in technology development of data storage system and servers 63

2.4 Target and development requirements of server system and data storage system at BIDV 70

2.5 Evaluation Criteria to developing information technology infrastructure for server system and data storage system at BIDV 71

2.6 TOWS 72

2.6.1 External factor evaluation matrix (EFE) 72

2.6.2 Internal factor evaluation matrix (IFE) of server system and data storage 75

2.6.3 Formation of strategy through the analysis of TOWS Matrix 78

CHAPTER 3: PROPOSAL OF SOLUTIONS TO IMPLEMENT THE STRATEGY FOR DEVELOPMENT INFORMATION TECHNOLOGY INFRASTRUCTURE FOR SERVER SYSTEMS AND DATA STORAGE AT BIDV DURING 2019-2024 84

3.1 BIDV Directions on Development of IT Strategy 84

3.2 Resources for the Implementation 86

3.3 Plans and Priorities During Implementation 88

CONCLUSION AND LIMITATION OF THE THESIS 91

REFERENCES 92

APPENDICES 1 (In English) 94

APPENDICES 1 (In Vietnamese) 100

ABBREVIATION

1 AML Anti-money laundering

2 API Application Programming Interface

3 ATM Automatic Teller Machine

7 CISC Complex instruction set computing

8 COBIT Control Objectives for Information and Related Technology

9 CRM Customer Relationship Management

10 DAS Direct-attached storage

11 DC Data Center

12 DRC Disaster Recovery Center

13 EFE External Factors Evaluation

14 ERP Enterprise resource planning

15 FC Fiber channel

16 Gbps Giga bits per second

17 HADOOP High Availability Distributed Object Oriented Platform

18 HDD Hard Drive Disk

19 ICT Information and Communications Technology

20 IFE Internal Factors Evaluation

21 IT Information Technology

22 ITIL Information Technology Infrastructure Library

23 LAB Laboratory

24 LAN Local Area Network

25 MIS Management Information System

26 NAS Network Attached Storage

27 OS Operating System

28 OTP One-Time-Password

29 PKI Public Key Infrastructure

30 RAID Redundant Arrays of Independent Disks

31 RAM Random Access Memory

32 RISC Reduced instruction set computing

33 SAN Storage Area Network

34 SBV State Bank of Vietnam

35 SLA Service-Level Agreement

36 VSA Virtual Storage Appliance

37 WAN Wide Area Network

LIST OF TABLES

Table 1-1: External Factor Evaluation Matrix 37

Table 1-2: Internal Factor Evaluation Matrix 39

Table 1-3: Table of TOWS matrix 40

Table 2-1: External Factor Evaluation Matrix (EFE) 73

Table 2-2: Internal Factor Evaluation Matrix (IFE) 76

Table 2-3: TOWS matrix of the server system and data storage system of the bank 80

LIST OF FIGURES

Figure 0-1: Theoretical frame for analysis of building strategy for developing information technology infrastructure for server systems and data storage at

BIDV 7

Figure 1-1: DAS Architechture 22

Figure 1-2: NAS Architechture 24

Figure 1-3: SAN Architechture 26

Figure 1-4: Process of building EFE matrix 36

Figure 1-5: Process of internal factors analysis 38

Figure 2-1: BIDV‟s Organizational Structure 46

Figure 2-2: BIDV‟s Governance Structure 47

Figure 2-3: IT Organizational Structure & Reporting Workflow 48

Figure 2-4: Server and data storage for Corebanking model 54

Figure 2-5: Server operating system at BIDV 56

Figure 2-6: Database management systems 57

Figure 2-7: SAN storage and Tape Library model 58

INTRODUCTION

1 Rationale Of the Research

Corporate strategy is very important for Enterprises Today, to survive and develop, enterprises need to build their business orientation and suitable strategies (corporate strategy as well as strategies for Core function of Enterprise) based on the research and analysis of the external environment and internal environment, to take advantage of opportunities, minimize risks from the business environment and promote the strengths and minimize the weaknesses

Proper strategy will create good direction for the business, is the guideline for the operation of the Enterprise Especially, when the competition becomes fierce, strategies are the key tool to ensure success in the market

Starting from that practice, building business strategies for businesses

in general and for each product/service as well as the core functions of the Enterprise is very necessary for Enterprise It helps enterprise to orient their business goals and develop clearly, orienting their individual parts, resources suitable to the common objectives of the enterprise Proper strategy helps avoiding waste of resources‟ Enterprise, that make enterprise weak and no taking advantages of strengths as well as has no clear development direction for the product/service Today's business environment is changing rapidly (especially the rapid development of information technology) and global competition requires enterprises to be proactive in adapting to that environment

The Bank now, more than ever, relies on information technology to provide services and to maximize value, In banking, the IT system plays a very important role Information technology is a major trend in modern banking The appropriate technology solutions will ensure the development of

banking Information technology in the right direction to help banks increase competitiveness by diversifying products and services, occupy market share

by the automated trading facilities, increased business capacity and efficiency

of commercial banks, speed of payment, increased currency turnover, thereby contributing to improve the efficiency of social capital

In the strategy of the banking sector to 2020, the State Bank of Vietnam has the following content: Building a system of infrastructures in information technology and modern banking technology The operation of the banking system should be based on the modern information and communication technology infrastructure in almost all aspects of banking operations

BIDV (Joint Stock Commercial Bank for Investment and Development

of Vietnam), as the longest-established bank in Vietnam, as of 31 December

2017, BIDV had total assets of more than VND1.176 trillion (~USD51.9 billion), making it the country‟s largest commercial bank in Vietnam BIDV has a wealth of experience in Vietnam, providing a full range of modern and convenient banking products and services including deposits, loans, trade finance, payment and account services, and card services and among others With 24,000 officers, employees and financial consultants who are well-qualified and well-trained with full experience and have been accumulated and transferred for over half of a century, BIDV always brings its customers the benefits and reliability

BIDV has modern IT system, is leading the way in the Vietnamese banking system in the application of modern technology According to Vietnam ICT index by Ministry of Information and Communications and Vietnam Association for Information Processing, from 2007 to 2017, the bank has ranked first in terms of readiness for IT implementation among Vietnamese commercial banks

One of the key components of BIDV's IT system are the server system and data storage To meet the requirements of hundreds of banking applications, BIDV's processing center has near 1000 servers and data storage system with capacity of over 350 TB

BIDV„s Server systems with multiple technology platforms are Intel (CISC architecture), power (RISC architecture), There are some types of server: Tower Server, Rack Server, Blade Server There are many server operating systems being used such as windows server, polaris (unix), linix (unix),

Today with the rapid development of virtualization technology in the

IT field, allowing the establishment of multiple virtual servers on the physical server system (eg: One physic Server can allow creating dozens of virtual server).This technology also allows the allocation of resources between virtual servers (CPUs, RAM, .) in a flexible way to meet the demand for software applications,

In the decision No.488/QĐ-NHNN dated March 27, 2017 of the State Bank of Vietnam on IT Application Plan, related to this issue, State Bank of Vietnam has requested commercial banks on IT infrastructure as follows:

 To standardize IT infrastructure in line with national and international technology standards to optimize IT investment efficiency

 Equip and deploy IT resources in managing virtualization platform

 Research and select IT products and services that are suitable for virtualization-based deployment for efficiency

In addition, the SBV does not approve IT projects, which do not use the enterprise's shared virtual infrastructure, but use a separate server and data storage system for the application software

Up to now, there are nearly 1,000 servers and data storage system with

a capacity of over 350TB in BIDV's IT Data Center With the requirement to provide modern banking products and services to customers and meet international standards in banking operations, BIDV deploys and implements dozens of new applications in banking operations every year To meet the operational requirements of banking applications, dozens of servers are replaced and added every year

The development of science and information technology at high speed leads to the rapid obsolescence of products and services It also makes intangible fixed asset depreciation large if the investment strategy for corporate assets does not match the trend in technology development in the world

Therefore, the demand for analysis, orientation and guidance in investment in the development of hardware and data storage system to ensure

to meet the requirements of banking operations in line with the trend of IT development This contributes to the efficiency of IT asset investment in BIDV in particular and the overall efficiency of banking operations in general

With the above-mentioned issues and with the expectation that this is the guideline for the operation of server system and data storage in the development of BIDV's IT system, the author has chosen the research title :

“Building Strategy for developing information technology infrastructure for server system and data storage at BIDV during 2019 – 2024”

2 Literature Review

Building business strategies, strategies for major product/service as well as the core functions of the Enterprise is very necessary and is implemented by all businesses There are many books and training manuals detailing strategic planning

However, each Enterprise has its own characteristics, has its own development strategy for business activities At BIDV, BIDV‟s business strategies as well as BIDV‟s IT Strategy are built and updated regularly

At present, BIDV has an IT development strategy for the period

2015-2020 with a vision to 2025.BIDV's IT strategy is an over-aggregated strategy for the operation of the IT system to meet BIDV's business strategy

There are many components of BIDV's IT development strategy Server system and data storage components are only a part of the strategy with general directions such as development of modern IT infrastructure in accordance with national and international standards to meet the requirements for serving modern banking applications

At BIDV, so far there is no research title or topics in detail strategy for development of the server system and data storage Therefore the topic does not overlap the other published works

Here are some of the works I have approached:

- Development strategy and application of information technology at the Bach Mai Hospital Control Center – Nguyen Minh Phuc (2014), Master thesis, Hanoi National University

- Building a business strategy for Ha Linh construction and trade limited company from 2015 to 2025- Luong Khanh Tung (2015), Master thesis on economics, Hanoi University of Minerals

- Building business strategy at Viettien garment corporation and implement solutions – Nguyen Thi Minh Huong (2011), Thesis of Master of Business Administration, Foreign Trade University

3 Research Objectives

- Systematize the theoretical basic for strategy building at the Corporate level in general and in the Functional level as well as “information technology

infrastructure for server systems and data storage” in particular

- Analyze the situation and operation of the server system and data storage and related issues at BIDV

- Evaluating the trends in IT developments in the world that have an impact on the server system and data storage and related issues, especially IT systems for banking operations

- Apply the tools to build the strategy for developing information technology infrastructure for server system and data storage at BIDV during

2019 – 2024

4 Objects and Scope of Research

The Research is focusing on the main factors that form IT infrastructure development strategy including the server systems and data storage and related development issues Server systems and data storage in BIDV‟ IT Center,

Time: 2016-2018 (For the content analysis of the situation with secondary data and primary data) and 2019-2024 (building strategy)

Scanning environmental factors that will impact on the building and implementation of information technology infrastructure for server system and data storage at BIDV during 2019 – 2024

5 Research Methods

5.1 Approach

Based on BIDV's corporate strategy as well as BIDV's IT development strategy, building strategy for developing information technology infrastructure for server system and data storage at BIDV during 2019 – 2024 depends on the mission and goals of the organization, based on the internal and external preconditions of the organization to provide an IT development strategy for the organization

However, in order to develop strategy for developing information

technology infrastructure for server systems and data storage at BIDV, it is necessary to refer to IT standards and trends in the world, the common regulations of the Ministry of Information and Communication as well as the State Bank of Vietnam

Theoretical frame for analysis of building strategy for developing information technology infrastructure for server systems and data storage at BIDV is implemented as follows:

Figure 0-1: Theoretical frame for analysis of building strategy for developing information technology infrastructure for server systems and

data storage at BIDV a) Step 1: Analysis of the context and status of server systems and data storage and related organizational issues

To identify an IT development strategy for server systems and data storage, the current survey of the organization's information system is an important step in identifying the organization's IT development status Survey

of current IT status of the organization to be implemented:

- IT Infrastructure Survey: Server, other systems and hardware systems

- Application Software and IT application solutions are being used at the Bank

- Survey software system and IT application software: How the deployed software systems is operating on server systems and data storage

Completing the strategy for developing IT infrastructure for server system and data storage at BIDV

Analyze the trends in IT development, impact on server systems and data storage in the banking industry

Target and development requirements

of server system and data storage

at BIDV

The development trend of banking and the need for server and data storage system to meet the performance requirements of new banking applications whether it meets the requirements of users or not, need to upgrade ?

- Surveying human resources for IT for server systems and data storage: Human resources for building and maintaining IT infrastructure Ensure that IT staff have the skills and knowledge to operate and develop the information system, and to organize short-term or long-term training and training courses to improve the capacity of IT staff

b) Step 2: Analyze the trends in IT development in the world, impact on server systems and data storage in the banking industry

In order to build an IT development strategy, learning and researching

IT development trends is a very important step, especially the trend of IT development for the professional branch of the organization, analysis of technology trends To build IT development strategies in line with the organization's development orientations and objectives

Ask and discuss with experts to have advice inside and outside the organization to clarify trends in IT development, impact on server systems and data storage in the banking industry Experts are expected to include

experts from BIDV, IBM, HP, PwC,…

c) Step 3: Target and development requirements of server system and data storage at BIDV

The mission and goals of IT development of server system and data storage at BIDV are the guiding principles for the organization's IT development Therefore, identifying the right IT development goals on server systems and data storage will help guide the development of organizational development strategies

The mission and goals of IT development of server system and data

storage at BIDV is determined by BIDV‟s Business Strategy as well as BIDV‟s IT Strategy

d) Step 4: Evaluation Criteria

Strategic development for the organization should be consistent with the direction of Vietnam as well as the development goals of BIDV Therefore, the development of the evaluation criteria should be carried out in accordance with the regulations of the Ministry of Information and Communication, the State Bank of Vietnam and relevant ministries Along with that, the technical standards to ensure the investment efficiency as well

as the quality of projects and products of BIDV

e) Step 5: Completing the strategy for developing information technology infrastructure for server system and data storage

The last step in the methodology of building strategy for developing information technology infrastructure for server system and data storage is completing the strategy After analyzing and evaluating, the implementation solutions should be implemented

The author plans to send the questionnaire to 40 IT managers and IT staff members at BIDV who are the representatives and correspondents

The author plans to carry out an in-depth interview with 10 IT

managers at BIDV head office and branches to get the comments, view points and suggestions for the strategy

- Chapter 3: Proposal of solutions to implement the information technology infrastructure strategy for server systems and data storage at BIDV during 2019-2024

CHAPTER 1 .

BASIC THEORY ON BUILDING CORPORATE STRATEGY AND

IT INFRASTRUCTURE FOR BANKS

1.1 Concepts and Definition of a Business Strategy

Strategy is a general action program, a system of perspectives, goals, objectives, solutions and policies to use the best resources and opportunities

to achieve the goals have been set out in a certain period When it comes to the strategy of an organization, it is often thought that that the organization must determine what the goal is to achieve, how it is implemented, and the resources it has to ensure to achieve the goals

The author approached the concept of strategy for developing information technology infrastructure for server system and data storage at BIDV through the concept of strategy and business as follows:

In Cambridge Dictionary, Strategy is defined: A detailed plan for achieving success in situations such as war, politics, business, industry, or sports, or the skill of planning for such situations

According to Thommas Wheelen (23): a Strategy of a corporation form

a comprehensive master plan stating how the corporation will achieve its mission ans objectives It maximizes competitive advantages and minimizes competitive disadvantages

Kenneth R Andrews (1) has defined Strategy is the pattern of decision in a company that determines and reveals its objectives, purpose or goals and produces the principal policies and plans for achieving those goals and define the range of business the company is pursue, the kind of economic and human organization it

is or intends to be and nature of economic and non-economic contribution it intends to make to shareholders, employees, customers and communities

According to Assoc Prof Hoang Dinh Phi (8): A Strategy of an organizations is a document, either written, printed or electronic, in which the responsible people set out long-term mission & vision, and strategic objectives for 5 years as standard, as well as the resources to be mobilized and solutions to be implemented in order to archieve the set objectives

Also, according to Assoc Prof Hoang Dinh Phi (9) in “Management of

Technology & Innovation, Basic Theories & Practices”, Training Docment

for HSB-MBA, 2015: Though the concepts and definition of business strategy

or corporate strategy are varied or different, most scholars and authors have

shown a common viewpoint that a Strategy of a company is an integrated set

of decision, plans and actions to be implemented for maximizing company‟s

competiveness

Therefore, based on concept of strategy and business strategy which have been defined by the world‟s researchers, the author proposed concept of strategy for developing information technology infrastructure for server system and data storage at BIDV as follow: A Strategy for developing information technology infrastructure for server system and data storage is a document, either written, printed or electronic, in which the responsible people set out long-term mission & vision, and strategic objectives for 5 years

as standard, as well as the resources to be mobilized and solutions to be implemented in order to archieve the set objectives

1.2 IT and IT Strategy for Bank

1.2.1 IT Infrastructure for Banks

Information technology is explained as encompassing all possible aspects of information systems based on computers Software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of

IT and management systems

IT has become of the most robust industries in the world More than any other industry or economic facet, IT has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth Economies of scale and great demand from both consumers and enterprises characterize this rapidly growing sector

For Banking, IT has a special role and is important fundamentals of modern banking operations, IT has helped the banking industry to deal with the challenges the new economy poses More than most other industries, financial institutions rely on gathering, processing, analyzing, and providing information in order to meet the needs of customers Given the importance of information in banking, it is not surprising that banks were among the earliest adopters of automated information processing technology

Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry Online electronics banking, mobile banking and internet banking are just a few examples Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses Information technology has been the cornerstone of recent financial sector reforms aimed

at increasing the speed and reliability of financial operations and of initiatives

to strengthen the banking sector

The IT revolution has set the stage for unprecedented increase in banking activity across the globe The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the

yesteryears They demand instant, anytime and anywhere banking facilities

IT has been providing solutions to banks to take care of their accounting and back office requirements

Nowaday, the banking system depends entirely on the IT system Problems with the IT system will immediately affect the operation of the bank Therefore, ensuring the safety, security of data and maintaining stable and continuous operation of the IT system is an important task in banking operations

IT infrastructure is defined as (15) the system of hardware, software, facilities and service components that support the delivery of business systems and IT-enabled processes

IT infrastructure is composed of some major components, as follows:

- The facilities

- The Server systems and data storage system

- Networking and telecommunications platforms (LAN, WAN, Internet,…)

- Consulting and system integration services

1.2.2 Server Systems for Bank

A server is a computer designed to process requests and deliver data to another computer over the internet or a local network Although any computer running special software can function as a server, the most typical use of the word “Server” references the very large, high-powered machines that function

as the pumps pushing and pulling data Normally, today the server refers to the a machine which support non-stop systems, provide 24/7/365 application availability

The purpose of a server is to share data as well as to share resources and distribute work A server computer can serve its own computer programs

as well; depending on the scenario, this could be part of a quid pro quo transaction, or simply a technical possibility

Server classification can be determined by the following factors:

a) Classified by functions of the server

As well as other fields, in banking operations, there are many server systems that are used to serve different purposes such as:

- Web server: Web server refers to server software, or hardware dedicated to running said software, that can serve contents to the World Wide Web A web server processes incoming network requests over the HTTP protocol (and several other related protocols) Hosts web pages A web server is what makes the World Wide Web possible Each website has one or more web servers

- Application server: Install Software application that allowing users in the network to run and use them An application server is a software framework that provides both facilities to create web applications and a server environment to run them Application Server Frameworks contain a comprehensive service layer model An application server acts as a set of components accessible to the software developer through a standard API defined for the platform itself

- Communications server: Maintains an environment needed for one communication endpoint (user or devices) to find other endpoints and communicate with them It may or may not include a directory of communication endpoints and a presence detection service, depending on the openness and security parameters of the network

- Computing server: Shares vast amounts of computing resources, especially CPU and random-access memory, over a network

- Database server: Maintains and shares any form of database

(organized collections of data with predefined properties that may be displayed in a table) over a network A database server is a server which houses a database application that provides database services to other computer programs or to computers, as defined by the client–server model Some popular database applications are used in banking field such as: Oracle, DB2, Informix, and Microsoft SQL Server, …

- Catalog server: Maintains an index or table of contents of information that can be found across a large distributed network, such as computers, users, files shared on file servers, and web apps Directory servers and name servers are examples of catalog servers

- File server: a file server (or fileserver) is a computer attached to a network that provides a location for shared disk access Shares files and folders, storage space to hold files and folders, or both, over a network in computing, i.e shared storage of computer files (such as text, image, sound, video) that can be accessed by the workstations that are able to reach the computer that shares the access through a computer network

- Mail server: Makes email communication possible in the same way that a post office makes snail mail communication possible

- Proxy server: Acts as an intermediary between a client and a server, accepting incoming traffic from the client and sending it to the server Reasons for doing so includes content control and filtering, improving traffic performance, preventing unauthorized network access or simply routing the traffic over a large and complex network

- Virtual server: Shares hardware and software resources with other virtual servers It exists only as defined within specialized software called hypervisor The hypervisor presents virtual hardware to the server as if it were real physical hardware Server virtualization allows for a more efficient infrastructure

- Other Servers: For others purpose (e,g Printer server, Fax server, DNS Server, (DHCP server.…)

b) Classified by type of the server

Similar to other industries, in Banking field, there are some type of Servers are used, as follows:

- Tower server: A tower server is a computer intended for use as a server and built in an upright cabinet that stands alone The cabinet, called a tower, is similar in size and shape to the cabinet for a tower-style personal computer

- Rack server: A rack server, also called a rack-mounted server, is a computer dedicated to use as a server and designed to be installed in a framework called a rack The rack contains multiple mounting slots called bays, each designed to hold a hardware unit secured in place with screws

- Blade server: A blade server is a server chassis housing multiple thin, modular electronic circuit boards, known as server blades Each blade is a server in its own right, often dedicated to a single application The blades are literally servers on a card, containing processors, memory, integrated network controllers, an optional Fiber Channel host bus adaptor (HBA) and other input/output (IO) ports

c) Classified based on how to create a server

Based on the way the server is created, there are the following types of servers:

- Dedicated server: A server running on hardware with a full range of

devices such as HDD, RAM as a regular computer and upgrading the server requires hardware upgrades

- Virtual server: This type of server is formed by dividing resources

on a root server through virtualization Server upgrades are made easily through system management software and are bound by the parameters of the root server

A virtual server is a server that shares hardware and software resources with other operating systems, versus dedicated servers Because they are cost-effective and provide faster resource control, virtual servers are popular in Web hosting environments

Ideally, a virtual server mimics dedicated server functionalities Rather than implement multiple dedicated servers, several virtual servers may be implemented on one server

Each virtual server is designated a separate OS, software and independent reboot provisioning In a virtual server environment for Web hosting, website administrators or Internet service providers may have different domain names, IP addresses, email administration, file directories, logs and analytics Additionally, security systems and passwords are maintained as if they were in a dedicated server environment To reduce Web hosting costs, server software installation provisioning is often available

An overflow of virtual servers in a physical machine may lead to resource hogging, and if a virtual server uses more resources than another, performance issues usually result

c) Classified by The architectural designs of CPU

Central Processing Unit Architecture operates the capacity to work from “Instruction Set Architecture” to where it was designed The architectural designs of CPU are RISC (Reduced instruction set computing) and CISC (Complex instruction set computing)

- CISC has the ability to execute addressing modes or multi-step operations within one instruction set It is the design of the CPU where one instruction performs many low-level operations

- RISC is a CPU design strategy based on the insight that simplified instruction set gives higher performance when combined with a

microprocessor architecture which has the ability to execute the instructions

by using some microprocessor cycles per instruction

Today, popular servers include:

+ Intel Server Platform (using CISC Architecture): such as Server from

HP, IBM (PC Server), Server

+ Power Server platforms (Advance RISC Architecture): Server from IBM + SPARK Server Platform (RISC), Server from Sun Microsystems (Oracle), Fujitsu,…

d) Server Operating System

A server operating system, also called a server OS, is an operating system specifically designed to run on servers, which are specialized computers that operate within a client/server architecture to serve the requests

of client computers on the network

In banking operations, server operating systems are commonly used as follows:

- Windows Server (Windows Server 2000, Windows Server 2003, Windows Server 2012,…)

- Linux (unix)

- Red Hat Enterprise Linus (RHEL,…)

- Sun Microsystems Polaris (Unix)

e) Popular databases installed in Servers

In Banking, there are some popular databases are using, included as follows:

- My SQL

- SQL Server

- Oracle

- DB2

f) Others Server:

- Clusters: A server farm or server cluster is a collection of computer

servers maintained by an organization to supply server functionality far beyond the capability of a single device Modern data centers are now often built of very large clusters of much simpler servers, and there is a collaborative effort, Open Compute Project around this concept

- Appliances: Also called an appliance server, a specialized server that

is designed for ease of installation and maintenance Server appliances have their hardware and software bundled in the product, so all applications are pre-installed The appliance is plugged into an existing network and can begin working almost immediately, with little configuration It is designed to run

with little or no support

The bank's business is monetary, credit and banking services It provides online banking services and connects with hundreds of domestic and international financial institutions The Bank's server systems are very diverse Includes hundreds of server for banking application, for Security systems ensure the security of data, security transactions as well as ensuring regular operations continuity of banking operations

To comply with international standards in banking operations as well as regulations of the State Bank of Vietnam, besides the production servers, There are many server systems for “High Avaibility” as well as the Servers for Disaster Recovery Center to maintain or minimize the impact on the provision of banking services in the event of an incident or disaster

1.2.3 Data Storage System for Banks

According to www.techopedia.com, Data Storage System or data storage device is any computing hardware that is used for storing, porting and extracting data files and objects It can hold and store information both

temporarily and permanently, and can be internal or external to a computer, server or any similar computing device

The banking sector is considered one of the areas with the widest and intensive IT application Data and data security play an important role in banking operations New technologies in data storage are prioritized for use

in Banking‟s IT

The data storage system is widely used in the banking sector include:

a) Direct-attached storage (DAS)

DAS is digital storage directly attached to the computer accessing it (through cable), as opposed to storage accessed over a computer network Examples of DAS include hard drives, solid-state drives, optical disc drives, and storage on external drives

A DAS device can be an internal hard drive or as a hard drive inside a computer These drives can be protected with different RAID levels, depending on the data importance and its nature For servers, DAS storage devices are similar to many internal drives or as external drives have been plugged in

- Advantages:

+ High speed access

+ Great scalability

+ Maximum storage capacity

+ Absolute data security

+ High fault tolerance are some of the advantages of DAS

However, the main benefits of DAS are low cost and simple to use Because it does not need the components of network storage such as routers, switches and cables to connect properly

- Disadvantages:

+ It can not be accessed by multiple user groups and only one user at a time is allowed

+ DAS is the most basic product of storage The storage device is part

of the server or connects directly to a single server in which the workstation must access the server to connect to its storage devices

Figure 1-1: DAS Architechture

b) Network Attached Storage (NAS)

NAS is a form of storage that uses special storage devices attached directly to the LAN as a normal network device (similar to a computer, switch, or router) NAS devices are also assigned fixed IP addresses and are accessed by the user through the control of the server In some cases, the NAS can be accessed directly without the management of the server

It is a file-level computer data storage server connected to a computer network providing data access to a heterogeneous group of clients NAS is specialized for serving files either by its hardware, software, or configuration

It is often manufactured as a computer appliance – a purpose-built specialized computer NAS systems are networked appliances which contain one or more storage drives, often arranged into logical, redundant storage containers or

RAID Network-attached storage removes the responsibility of file serving from other servers on the network They typically provide access to files using network file sharing protocols such as NFS, SMB/CIFS, or AFP From the mid-1990s, NAS devices began gaining popularity as a convenient method of sharing files among multiple computers Potential benefits of dedicated network-attached storage, compared to general-purpose servers also serving files, include faster data access, easier administration, and simple configuration

as DAS; (iii) NAS provides the ability to focus data at a reasonable cost

+ NAS has other advantages such as ease of deployment and operation with or without IT staff on site

- Disadvantages:

+ By sharing the same network infrastructure with other applications, data storage can affect system performance (slowing down the speed of LANs), which is especially noteworthy when it comes to storage Frequently large amounts of data

+ In a database environment, NAS is not a good solution because database management systems typically store data in block form rather than

as a file, so using a NAS does not provide good performance

Figure 1-2: NAS Architechture

c) SAN (Storage Area Network):

The SAN Storage Area Network is a secure high-speed data transmission network in which storage devices can access multiple servers It

is a high performance storage network and transfers data between servers and storage devices separated from the local area network SAN is usually used where larger areas, high speed storage and input space, output very fast

SAN allows it to provide higher levels of performance and reliability SANs provide fast data transfer while reducing latency when servers have too large workloads

In contrast to DAS or NAS, which is optimized for data sharing at the first level, the power of the SAN lies in its ability to move large volumes of data This is very important for Band-Width intensive applications such as IP / Megapixel recording camera systems

Fiber channel (FC): Storage and servers are connected through a high-speed fiber optic unified network This is used for critical applications where continuous data access is required Fiber channel provides data rate more than 5 Gbps

In a SAN, data transfer from one storage to another is carried out without interference from a server SAN provides a dynamic backup

protection switch, which means that if a server is not continually maintained but network operation continues In addition, additional capabilities may be added upon request These things, are the advantages of SAN

- Advantages:

+ Ability to back up large and regular data without affecting the flow of information on the network

+ Especially suitable for applications that need speed and latency such

as transaction processing applications in the banking industry, finance

+ The data is always high availability

+ Data is kept unified, centralized and highly manageable Ability to recover data if something goes wrong

+ Supports multiple protocols, different storage standards such as: iSCSI, FCIP, DWDM,

+ Good scalability in terms of number of devices, system capacity as well as physical distance

+ High level of security due to centralized management as well as use

of tools to support SAN management

As such, SANs are often used in large datacenters because they offer a number of key features: reduced data risk, high resource sharing, easy development, It supports a wide variety of devices, supports and manages large data transfers and high data security

In addition, SAN improves system performance by supporting multiple operating systems, servers, and applications simultaneously, and is capable of responding quickly to changing operating system requirements as well as technical requirements of the network

Disadvantages: The main disadvantages of SAN are cost and

complexity (Because of the complexity of the configuration, when deploying

SAN, it is necessary to have management tools as well as highly skilled personnel)

Figure 1-3: SAN Architechture

d) VSA (Virtual Storage Appliance):

Virtual Storage Appliance (VSA) is a storage controller that runs on a virtual machine to create a shared storage without the need for additional hardware It presents one of two file level or block level storage to the network

VSA is not a physical device connected to any particular hardware It uses the disk from the host system to store as a virtual drive or can access the physical drive directly In fact, VSA creates a similar virtual storage area for network storage by combining the ability to mount directly on each physical server

Small businesses need redundancy and high availability for shared storage and there are also large enterprises that transfer data between different arrays, this is a good choice for virtual storage devices

Simple virtual storage solution for dedicating customers and virtualizing servers with a flexible scale platform With the advantages such as:

- High availability

- flexible data rotation

- Effective recovery

- Administration and expansion is easy

Virtual storage and application integration features support virtualization growth at all levels Unified, intuitive interface makes management and operation of the device simpler Data can flow easily between storage layers, different geographic locations as well as between physical storage and virtual storage

1.2.4 IT Strategy for Banks

The Bank now, more than ever, relies on information technology to provide services and to maximize value In addition to keeping data center up and running, IT must help the Bank Management drive that vision and see what is possible

So, A banking IT strategy has become a critical element for a Bank‟s leadership in recent decades Its growing importance mirrors the rise of technology itself as a critical element for banking business success The importance of a banking IT strategy has been amplified over the past few years as organizations focus on digital transformation and thriving in the digital age Technology is essential for creating new banking business models, banking „s products and services; enhancing banking customer service as well

as customer experiences; increasing sales; enabling staffs and improving productivity; and supporting interactions with vendors and other bank „s business partners

As such, organizations must formulate a technology strategy to accomplish those things as well as compete against others with the same objectives

Normally, IT Strategy of the Bank draws heavily on studies and reports from the last five years Extensive consultations have repeatedly called for improvements in the way IT services are provided throughout the Bank It is

increasingly important that the Bank spends its financial resources on those IT initiatives that make the greatest contribution to its long-term objectives

IT strategy for a Bank is a comprehensive plan that outlines how technology should be used to meet IT and Banking‟s business goals A Banking IT strategy, also called a technology strategy or IT/technology strategic plan, is a written document that details the multiple factors that affect the organization's investment in and use of technology

A Banking IT strategy provides a blueprint of how technology supports and shapes the Banking 's overall business strategy Its strategic goals should mirror business projects and take into account the needs of key stakeholders including employees, customers and business partners

The strategy should offer a look at the organization's current technology posture and provide an idea of where IT should head over the next three to five years There are different models that help executives construct

an IT strategy, yet most contain certain key elements including:

+ A high-level overview of the IT department that covers its mission, core values, objectives and approaches to accomplishing its goals

+ Current budgets and spending forecasts for a multiyear timeline + An outline of current and future IT projects and initiatives with timelines and milestones

+ A catalog of existing enterprise architecture; IT department capabilities and capacities; and future needs and requirements with details about infrastructure, staffing and other necessary resources

+ An analysis of the strengths and weaknesses of information technology systems

+ A list of the internal and external factors (such as market and industry trends) that shape current technology requirements and innovations as well as

the development trend of IT systems in the future

+ A prediction of the potential opportunities and vulnerabilities that will necessitate technology responses to best position the Bank for success

Some basic content may have in a Information Technology Strategy for a Banking in Vietnam

In spite of the content of Banking IT Strategy depends on size, scope and of biz activities, management model and the will of leaders/owner, but a Banking IT Strategy may have some importance contents as follows:

- Banking IT‟s Strategy goals: IT development is in line with the vision and Strategy of the Bank, meeting demands of business operation and become

a driver of business operation and business strategy

- Related to the Core banking system: The Corebanking must have advanced technology with full necessary business functions supporting the bank to develop advanced products and services, meeting flexible and time to market requirements

- To other applications for banking operations: Deploy importance IT application systems catering for business, management, operation

- Related to new information techonology in banking (e.g Digital distribution channel), E.g: Develop and strengthen the advanced, comprehensive digitized distribution channel system (e.g via Ommi-Channel platform) contributing to improve customer experience, customer services

- Related to Risk Management: IT support fully meeting requirements

of risk management, the regulation of the State agencies and international organizations Deploy the projects related to necessary IT system and data to support banking laws and regulations issued by the Basel Committee on Banking Supervision, compliance in accordance with the State bank‟s requirements

- Organization and Human resource for IT: e.g Strengthen the IT Organization structure and IT management, develop high-quality IT human resource to improve IT efficiency and meet the development demands of the bank

- IT infrastructure: e.g: Enhance capacity of IT infrastructure and security, ensuring the bank‟s business and growth demands and compliance with regulations of the state agencies and international organizations

e.g: Building a business Growth Strategy for Company A

- Functional Strategy

Functional strategies are relatively short-term activities that each functional area within a company will carry out to implement the broader, longer-term corporate level and business level strategies Each functional area has a number of strategy choices, that interact with and must be consistent with the overall company strategies

An Enterprise may have many different functions, each functional units need a separate strategy to serve the entire enterprise-level strategies as well

as strategies of the SBU

Functional strategy focus on supporting and focus on the areas of activity and doing business In functional strategy, the content is how each

part of the organization effectively implements a common strategy and business strategy in its area of resources, process and human resources

Example of Functional strategy are Building a Financing Strategy for Company ABC, Building IT Strategy for ABC Company, Building Marketing Strategy for ABC Company, …

- Strategies for SBU- Strategic Business Units

Strategic Business Unit (SBU) is a division of a business that creates products or services for a specific customer group

SBU has the activities of supplying inputs, research and development activities, etc., which are relatively independent from other parts of the Firm An enterprise may have one or some SBU, or some Company may have one SBU

A multidisciplinary business enterprise will have three levels of strategy (Enterprise Strategy, SBU Strategy and Functional Strategy) Each SBU needs a separate trading strategy called Strategic Business Unit Strategy The strategies of each SBU are linked to one pair of Products & Markets

Strategies for Business Units is Strategies focus on a product, service or market-specific model for a particular business of the enterprise Strategies for Business Units can determine how each business unit must complete to contribute and accomplish a company goal

According to Assoc Prof Hoang Dinh Phi (2) Base on size, scope and

of biz activities, management model and the will of leaders/owner, a company may have different levels of strategies:

+ Corporate Business Strategy;

+ Technology, Human Resource Strategy, Finance Strategy,…

* Classify strategies according to function

According to Fred R David, based on the functions, the strategy can be divided into the four following groups: