BISS SOO Attachment C - 2027 Target State Architecture v1.1 updated.pdf

Target State

Executive Summary To meet the demands of an ever-evolving regulatory environment, the FDIC envisions operationalizing an Adaptive IT Architecture over the next 5+ years. An Adaptive IT Architecture lends itself to continuously refine the structure, behavior, and resources enabling a composable enterprise that can be reconfigured by the business to meet changing needs. This architecture strengthens the resilience of the IT infrastructure through intelligent automation and cloud-smart technologies, proactively reduces the risk of successful cyber-attacks against the FDIC digital infrastructure, increases staff access to the corporate data to promote Evidence-Based Decisions, digitally empowers the hybrid workforce and tech-savvy customers, stimulates a technology innovation ecosystem, and delivers new/modernized capabilities with speed and scale.

The diagram at the right illustrates the desired outcomes and capabilities of an Adaptive IT Architecture.

Resilience Speed

Scale

Enterprise

Data

Management

& Analytics

Innovation

Proactive

Cybersecurity

Operations

Digital

Empowerment

& Experience

Bottom Line Up Front:

The target state works to align the technologies and systems of the FDIC with the FDIC Strategic Plan whose goals are repeated below:

FDIC Major Program Goals Program Areas Strategic Goals

Insurance FDIC-insured deposits are protected from loss without recourse to taxpayer funding.

Supervision

FDIC-insured institutions are safe and sound.

FDIC-supervised institutions comply with federal consumer protection laws, including fair lending laws, and the Community Reinvestment Act (CRA).

Large, complex financial institutions are resolvable in an orderly manner.

Receivership Management Resolutions are orderly and receiverships are managed effectively.

Moving Towards an Adaptive Enterprise The 2027 FDIC Target State outlines the next phase of the FDIC’s information technology (IT) modernization efforts.

It facilitates efforts to meet the FDIC’s business needs faster, with built in security, integration, resiliency, observability, analytics, and privacy. The 2027 target expands on the 2025 target state to drive a more adaptable/composable enterprise.

An adaptive enterprise harnesses the value generated by the ever closer relationship between technology and people. It responds to changing conditions and risks at the speed in which they are coming at us. It enables iterative experimentation of new ideas and is resilient and responsive to threats.

The 2025 targets laid a foundation for a mobile-first and cloud smart strategy that emphasized a foundational transformation in FDIC’s IT portfolio management. By identifying and strengthening the aspects of the FDIC architecture that lead to an adaptive enterprise, we build the capacity to support all aspects of the FDIC’s mission.

This includes an open adoption of Artificial Intelligence (AI) operations.

Applications suitable for low-code platforms should migrate and target those platforms• Investments in competencies that drive long term dividends (flywheels) to manage IT complexity, drive integration and improve analytics

Focus on building economies of scale within a smaller number of technology stacks•

This FDIC Target State serves as a blueprint to guide our transformation journey and to align everyone at the FDIC towards a common vision. This will help to inform IT demands, Security and Enterprise Architecture Technical Advisory Board (SEATAB) activities, system architecture decisions, IT roadmaps, and the Technical Reference Model (TRM). The expectation is that the FDIC will make major progress toward realizing the objectives and significant outcomes of the Target State by 2027.

To achieve the 2027 FDIC Target State , the CIOO will continue to modernize the way it operates, fine-tune organizational alignments to optimize for the flow of work, and enable staff to focus their learning to support their customers’ goals. The CIOO will measure progress by tracking time to market from ideation to delivery.

Intelligence is the ability to adapt to change -- Stephen Hawking

Most importantly the target state focuses on establishing and supporting reinforcing causal loops that enhance the flywheel effect (continuously pressing the means of transformation until a breakthrough occurs. See description below). Causal loops map the relationships between pairs of elements within a system and identify feedback loops. These loops can either be reinforcing or balancing. The flywheel effect occurs in enterprises, just as it does in machines, because of very deliberate building and linking together of capabilities to execute against a defined strategic objectives in such a way that a compounding return on effort is introduced, resulting in continued acceleration in reaching goals. There is no single initiative, new technology or innovation that will define success, but it is the sum of all the parts pushing over and over again that eventually achieves the desired high speed momentum. The goal of the Target State is to guide the FDIC in focusing its energy on pushing “the flywheel” in the right direction, removing friction, and avoiding distractions.

Jim Collins - https://www.jimcollins.com/concepts/the-flywheel.html

The activities needed to achieve the 2027 FDIC Target State are driven by six objectives.

These objectives enable the FDIC to address financial system risks while removing barriers to agility:

These objectives will positively impact the FDIC’s mission by:

Increase Speed and Agility - Deliver new/modernized capabilities with speed and scale. Simplified, automated and commoditized architecture to generate speed in service delivery; a continuous-delivery framework to modernize the corporate IT services with design-thinking, human-centered approach

• Lowering the risk and cost of introducing change (Increase Speed & Scale in Delivering IT Services) Increase capacity, speed, and agility to achieve new business goals by using Cloud Native technologies and techniques (including AI, and end-to-end automated testing) to enable change with reduced risk while efficiently using compute resources

Data Management and Analytics - Unleash data as a corporate asset. Increase staff access to the corporate data to promote evidence-based decisions. Advanced analytics platforms with connected datasets; Well documented, quality data; Predictive, prescriptive self-service analytics; Upskill workforce on Data Science

• Supporting the generation of new insights Enable domain experts to leverage FDIC Data as a Strategic Asset by centralizing data on a platform with advanced data management and analytics capabilities

Stimulate Innovation - Foster a technology innovation ecosystem. An Innovation Ecosystem for staff to innovate; a maturity framework to scale innovations; A network of networks to foster partnerships and shared learning

• Enabling iterative experimentation Empower IT developers, business developers, data scientists, data analysts, IT security and infrastructure operators with productive, self-service experiences needed to improve the delivery, security and operations of business capabilities

Promote Digital Empowerment - Digitally empower the hybrid, distributed, diverse workforce and tech-savvy financial industry customers with highly-intuitive end-user services and streamlined customer experience. Human-centered Digital Employee Experience, Customer Experience & Engagement; Increased Self-service capabilities, Hybrid Work-Life Technologies

• Reducing human centric IT processes Gain efficiencies through continuous rationalization of IT resources. Optimize processes to eliminate barriers to agility. Including optimization through the effective use of Artificial Intelligence

Institutionalize Proactive Cybersecurity

- Proactively reduce the risk of successful cyber-attacks against the FDIC digital infrastructure. Zero Trust Architecture; Cloud Native Cyber Infrastructure; DevSecOps;

Upskilling Workforce

• Strengthening our cybersecurity posture Adopt cloud-native and Zero Trust Architecture (ZTA) approaches to turn application components into standardized building blocks that can be quickly reorganized into new security defenses or new business solutions while increasing resiliency

Build in Resilience - Strengthen IT resilience through intelligent automation and cloud-smart technologies. SaaS/PaaS/Shared Services first approach, last option IaaS with Cloud Native Architecture; Multi-cloud Cross-Connect Architecture, transform VSQ Datacenter to a computer room

• Improving digital employee experience (DEX) Increase employee engagement, productivity, and stimulate innovation by continuously improving their Digital Experience. The cloud has already enabled the FDIC to quickly adapt to a public health crisis by creating a hybrid workspace and by focusing on employee experience as a design principle we can continue to generate value