Using behavior analytics, machine learning and global transaction data, CA Technologies latest tool can help prevent fraud for payment cards.
Called CA Risk Analytics Network, the new tool is a cloud-based service that incorporates advanced neural networks, backed by real-time machine learning, to protect 3-D Secure card-not-present (CNP) transactions.
According to CA, it learns from, and adapts to, suspected fraudulent transactions in an average of five milliseconds, instantly closing the gap for potential fraud using the same card or device across all members of the network.
The Javelin’s 2017 Identity Fraud Report found explosive growth in card-not-present fraud, driven by the increasing e-commerce and m-commerce volume, as well as the EMV liability shift, contributed to the rise of existing-card fraud.
The report read: “Just as e-commerce is displacing point-of-sale transactions, the same is true for the channels in which fraudsters choose to conduct their business. Among consumers, there was a 42 per cent increase in those who had their cards misused in a CNP transaction in 2016, compared to 2015 levels.”
Terrence Clark, general manager for CA Technologies Payment Security solutions, said detecting anomalies quickly and ensuring frictionless authentication are the first steps in preventing card-not-present fraud without impacting legitimate cardholder transactions. Data scientists have applied advanced analytics and new, real-time, machine learning algorithms to the global pool of 3-D Secure, e-commerce transaction data and device insights maintained by the CA Payment Security Suite.
CA Risk Analytics Network is open to card issuers with portfolios of any size: from global banks with millions of cardholders, to smaller, or regional financial institutions. CA Risk Analytics Network and the CA Payment Security Suite support the 3-D Secure specification today, and will support the new EMV 3-D Secure 2.0 specification, which addresses authentication and security for card-not-present, e-commerce transactions using smart phones, mobile apps, digital wallets and other forms of digital payment. The 2.0 protocol will make extensive use of device data.
New York-based CA Technologies has completed the acquisition of Automic Holding GmbH, a vendor of business process and IT automation software.
Under the terms of the agreement, the transaction is valued at approximately 600 million euros, net of cash and cash equivalents acquired.
This deal represents a milestone in CA’s digital transformation strategy called Built To Change.
CA said Automic solutions will better enable customers to drive digital transformation across their organizations to compete in today’s application economy.
The addition of Automic adds new cloud-enabled automation and orchestration capabilities across CA’s portfolio and increases its global reach. Automic’s European presence, coupled with CA’s broad portfolio, offers customers a comprehensive solution that complements existing technology investments and addresses the challenges of automation across the enterprise.
With the completion of the transaction, Todd DeLaughter, Automic’s CEO, becomes a GM reporting into CA’s Chief Product Officer Ayman Sayed. The Automic organization and leadership team will continue to report directly to DeLaughter.
Have you heard of the modern software factory? Well, CA Technologies’s new global marketing campaign is intended to let know all about how to build one for your customers.
CA’s global marketing campaign has the slogan “The Modern Software Factory,” to showcase the full spectrum of capability the company is looking to bring to marketing specific for digital transformation.
The strategy behind this marketing roll-out is businesses today face near constant digital disruption, affecting business decision makers at all levels from the C-Suite to those deploying software across their organizations.
According to CA, the Modern Software Factory campaign reflects new insights on the challenges to ‘build better apps, faster and securely’ and ‘gain insight from data,’ which have become foundational to competing in today’s application economy.
The premise of the campaign is for businesses across all industries to recognize that software is core to creating competitive advantage, CA shows how they can start with a single CA solution, or a combination of solutions across the areas of Agile, DevOps and Security.
In the book “Digitally Remastered: Building Software into Your Business DNA” released last fall, author Otto Berkes, CTO of CA, outlined key insights along with the tools and techniques that companies are using on their digital transformation journeys. This book was a first step in supporting this new Modern Software Factory concept for CA.
Lauren Flaherty, CMO at CA, said the competitive value of digital transformation has become very real, and customers are looking for channel partners who can help them navigate the journey successfully. The Modern Software Factory is the creative expression of CA’s business strategy.
“We’re laying out a blueprint that’s designed to help guide customers as they leverage software to win in the market,” she added.
The new campaign is expected to target digital channels to reach executives as well as those who deploy software. They campaign has two main parts:
As CIOs continue to embrace the “as a service” model for infrastructure, they’re also becoming less satisfied with their outsourcing experience, according to IT World Canada’s fifth annual Canadian CIO Census, sponsored by CA Technologies.
While half of the 164 CIOs responding to IT World Canada’s online survey said they had expectations met by their outsourcing partners, many were not satisfied. Twenty-eight per cent said the outsourcing experience had “fallen below expectations.” Only 10 per cent said outsourcing was exceeding their expectations.
That’s a worse report card than cloud services received. There, 19 per cent of CIOs said their expectations were exceeded, 51 per cent felt their expectations were met, and only 17 per cent felt it was below expectations. Other CIOs responding just thought it was too early to say either way.
Of course, some CIOs are just happy to keep things in-house as well. That suits Sumon Acharjee, CIO at North York General Hospital, fine. He recently added Pure Storage’s all-flash data platform to host his mission-critical applications and patient data, including electronic health records. The hospital only refreshes its IT infrastructure every seven years because of tight government budgets, so taking on an outsourcing or cloud infrastructure service that inflates his operating expenses just is not an option.
“The way the performance of a hospital is measured, IT is considered overhead,” he says in a phone interview. “The more operational expenses you incur, the more disincentive it is in terms of acquiring funding, so we need to keep our operational dollars as minimal as possible.”
While cloud service providers often push using “OpEx” budget instead of the high capital expenditures required to set up internal infrastructure, government funding is set up to support CapEx. With the Pure’s Evergreen Storage program that deploys once and then delivers upgrades for a decade, Acharjee knows his OpEx costs are under control.
But it’s not just public sector firms that are opting to keep data centres under their thumb. At nutritional supplements maker Iovate Health Sciences International Inc., Kevin Newcombe, director of IT, says he sees no need to outsource.
“It’s better to have control over your own applications,” he says. “If we want to make a change, we make it. We don’t have other people controlling our software.”
Part of the motivation to keep the data on-premises is the intellectual property that his company must protect as its competitive advantage. The formulae that make up its various health supplement products are all unique to Iovate, thanks to its research and development investments in health sciences.
But Newcombe isn’t surprised that other IT leaders are disappointed with their outsourcing experience.
“I don’t think the evolution is there for people to be hands-off and allow others to give them the right response and the quick turnaround times that business requires today,” he says.
According to the CIO Census, the most common benefit sought by CIOs from their outsourcing partners is a reduced time spent on infrastructure. Congruously, the number two benfit sought is the ability to focus on their core business.
So it may be that companies that don’t see IT infrastructure as absolutely crucial to keep under their watch are those that seek outsourcing more often. Other popular benefits sought from outsourcing include: better efficiency, reduced costs, and improved employee productivity.
Back at North York General Hospital, Acharjee feels he’s getting all that out of his new flash storage arrays, an IT project that he describes as transformative to his business.
“More of the patient record is becoming electronic,” he says. “A lot more data is going in, with richer data files. We need a platform that can keep up with that and be resilient. You could outsource that and let it be someone else’s problem, but this allows us to keep it integrated and provide future growth and capacity.”
The census results don’t foreshadow a decline in outsourcing, just a stagnation of the activity. Most (55 per cent) firms say they expect their usage of it will remain flat for at least two years.
Most executives say they’re getting stuck in the early stages of the transition to become agile organizations.
“Agile is simple, but difficult to do,” Mahendra Durai, senior vice president of IT strategy & technology at CA Technologies, said at a recent ITWC webinar. “It’s extremely difficult to do because it’s about people and process transformation. It’s a culture change.”
At the same time, Durai said that it’s increasingly urgent to become an agile organization in today’s digital economy. “Agile is the key to make digital transformation outcomes real,” he said. “To grow, you need to be able to pivot and understand changing demands. If you’re not doing agile, then what are you doing?”
Many companies have a deeply embedded, top-down command and control organization. They’ve adopted agile for software development, but overall, they’re still using the waterfall or phased approach, said Durai. “That’s not going to work,” he said. “It’s called the agile fall.”
Although agile started as a way to improve software development, it’s evolved into much more than that. The entire organization has to be on board, said Durai. To realize the return on investment, everyone has to be interacting on common ground. It involves working together with business leaders so that all employees are “talking the same language, with the same goals,” he added.
Within a year and one-half of starting its agile journey, CA Technologies is starting to reap the dividends, said Durai. The company has experienced an eight per cent increase in productivity, a 14 per cent increase in quality and an 18 per cent increase in predictability.
How do you change the mindset of everyone in an organization? The first step is to develop a road map, said John Depasquale, senior director IT at CA Technologies. Organizations should plan to evolve through four stages, starting on an ad hoc basis with some teams adopting an agile approach. This should build to a level where the majority of teams are practicing agile and using standardized tools. At the next level, organizations should strive to have multiple teams practicing agile together in pursuit of a common business objective. Finally, “scaled agile” will be achieved when agile is practiced consistently throughout the organization.
Secondly, it’s critical to have tools for transparency said Depasquale. “You must get standardized tools in place or it becomes the wild, wild west,” he said. A dashboard tool is essential to track projects and to quickly address any challenges. It’s also important to invest in collaboration tools and technology to make it easier for people to work together.
From a personnel perspective, agile roles and job descriptions should be defined, said Durai. As well, the same training should be provided for everyone across the organization. Coaches should be in place to support teams as long as the coaches have experience in implementing agile on a full scale, said Durai.
Finally, an executive champion is key to the success of an agile journey.
“The biggest lesson we learned is that agile transformation is both top down and bottom up,” said Durai. “The cultural transformation starts with leadership looking in a mirror.”
Improving customer experience is a top priority for almost 70 per cent of organizations, but many find it challenging to achieve a five-star rating.
“Customer experience is everything because the real disrupters are the users,” said Bryan Whitmarsh, senior principal product manager with CA Technologies at a recent IT World Canada webinar. “They’re going to pick where they purchase based on their experience.”
However, an ITWC survey showed that organizations are having difficulties providing a seamless customer experience, measuring end-to-end performance and dealing with technical complexity.
To provide a five-star experience, it’s critical to be able to address these issues, said Whitmarsh. The webinar, which was sponsored by CA Technologies, provided advice on how to deliver a better customer experience in an omnichannel world.
What omnichannel really means
The channels for delivering applications are proliferating, adding to the problem of complexity, said Whitmarsh. As an example, he noted that there are expected to be 500 million wearables in use by 2020.
The term “omnichannel” is not only about being able to support all of these channels, but the ability to retain the context across them, said Whitmarsh. “There’s nothing more frustrating than starting a transaction on one device and finding out that if you switch to another, you have to start all over again.”
To win in this environment, Whitmarsh said that organizations need to understand what’s important to their users. He cited statistics from the Zogby Report showing that speed is a high priority for consumers who are unwilling to wait for slow load times. Ease of use and security were also identified as important for users. Thirty-eight per cent of mobile users say they’re frustrated by application security issues, he said.
The steps to five-star success
“Business intelligence can make you the hero,” said Whitmarsh. “Getting the golden nuggets about the customer journey will tell you where to invest to get a five to one return versus what you get today.”
For organizations seeking to improve their customer experience ratings, collecting the data is the first step. Then the data has to be normalized in a central repository. By ensuring that all of the data correlates to the customer, rather than providing separate views of that customer for each channel. Finally, the data has to be analyzed to provide insights about the customer’s behaviour. “Traditionally, this has been done by running ad hoc reports,” said Whitmarsh. “But now, the tools can provide recommendations on how to improve.”
Whitmarsh said a good approach is to walk through the five “Ws”:
Understanding the answers to these questions will empower your organization in the omnichannel to create compelling personal experiences, said Whitmarsh. For example, it can allow the organization to do targeting based on geography or time of day and to provide more of what customers like, and less of what they don’t find valuable. “This is what builds customer loyalty,” said Whitmarsh.
“Gaining true business insights out of data will help your organization drive revenue, achieve customer satisfaction and retention. Those are the difference-makers that are going to separate you from the competition.”
You can’t just rely on having the right tools and processes in place to succeed with an agile approach, you have to focus on the people that will be following the methodology, according to a payments processor that’s dedicated four years to transformation.
That was a key learning shared during an IT World Canada webinar, Digital transformation stories from the trenches: Why an agile approach is essential to survive, sponsored by CA Technologies. Anthony Noble, the program director of Cincinnati, Ohio-based payments processor Vantiv Inc. has been working on implementing agile methodology since 2013. He wanted to adopt the increasingly popular project management approach because it’s meant to help teams respond to change by requiring its adopters use an iterative approach while monitoring quantitative feedback. In Noble’s eyes, it was also a ticket to a company that was more customer-focused and more product-focused. But it wasn’t working out at first.
“Our transformation became stagnant,” he says. “We had some pockets of success but we didn’t really get the amount of true change that we were looking for.”
To shake things up, Vantiv turned to CA and transformation consultant and services director Skip Angel. Beyond implementing CA’s Agile Central platform (which at the time was Rally Software – CA acquired Rally in July 2015), Noble worked with Angel as a coach to help implement the transformation he was looking for at Vantiv. Today, it continues to run an Agile Centre of Excellence to oversee agile practices and Noble says employee engagement has never been better.
Here’s three actionable tips that Vantiv and CA used to achieve agile success:
Angel has 25 years of software development experience and now helps implement several agile techniques as a coach and mentor. Whether it’s lean startup principles, leadership agility, or the Scrum approach, Angel helps shine a little light down on organizations facing challenges with agile implementation. As with Vanity’s case, challenges are normal.
Coming into Vantiv’s organization, Angel could see that from a technical standpoint, a lack of automation and a lack of quality of systems was hurting the business. Problems also extended into operations.
“There was a lack of standardization, there was a lack of constant delivery, and that was causing some problems with customers,” he says.
To get started, he took advantage of the corporate initiative to work beyond the IT department. He talked with the leadership in the lines of business and all the way up the executive chain to understand how he could help bring IT into the business.
“i wanted to really hear what some of their challenges were and what they felt agile would make better,” he says. “We’re not just putting things in place without trying to solve real problems.”
That’s the power of bringing in someone from outside the organization to help with a transformation project, Noble says. They can help take an objective look at the people involved and instead of conceding in some areas, help to change habits.
“We had the daunting task for transforming over 100 teams to be agile,” he says. “We really needed to focus on the people, the people are what makes it happen.”
To get started, Vantiv and CA prepared a consistent approach so that each of the teams would go through the same steps of formation and execution, with the goal of creating a shared culture in mind. Here’s what the process looked like:
As more teams were trained, Noble charted Vantiv’s progress through four levels of maturity. At first it was dedicated teams addressing a backlog of projects, then it was using internal teams to train up other teams, and eventually it was full organizational agility. By using a consistent approach with each team and tracking their progress, Noble was able to identify the common blockers that were encountered at each step of the way and begin accounting for them.
“If you haven’t had a blocker, you’re not doing it well,” commented Love. “That’s natural, that’s going to happen.”
And Vantiv didn’t start off with the low hanging fruit. Instead, it chose to train its mainframe team that used COBOL to assemble applications, sometimes working for a few decades in the same model, as its starting point. A bold move that proved to be a good place to start, Angel says.
“You’d think it would never work with that technology, with that group of people that had done the same thing forever,” he says. “One of the most pivotal things was this was a team that doubted they could go to agile and they touched every other team in some way. To address that coordination that has to happen, that took away a lot of the fears and uncertainty and it became more of a pull in the organization instead of a push.”
Does the software testing process hamper your ability to introduce new applications quickly enough to meet market demand? For an overwhelming number of companies, the answer is yes. Quality assurance experts insist it’s a problem that has to be solved if they are to see the results of digital transformation. All of the work that companies are doing in agile and rapid development can be undone by traditional software testing methods.
The need for more rapid development is real. Ninety-four per cent of senior managers say they face increased pressure to release applications more quickly, Jonathon Wright, chief technology evangelist with CA Technologies, told participants at a recent ITWC webinar. Rising customer expectations, competitive threats and advancements in technology are forcing companies to pick up the pace of development, said Wright. Sponsored by CA Technologies and hosted by ITWC CIO Jim Love, the webinar looked at the current obstacles to speedy software testing and outlined the latest best practices to overcome them.
Moving at the speed of quality
Typically, it takes most large organizations 18 months to respond to changes in the marketplace, said Wright. Due to the potential for “massive digital disruption, he said organizations don’t have the luxury of time anymore.”
At the same time, two-thirds of business leaders say the future of their business depends on the quality of their software. Seventy-nine per cent of users will abandon a site if they don’t quickly find what they need.
But the biggest challenge to improving quality assurance processes isn’t technology, said Wright. It’s the culture. “It’s about getting ready for the change from a people, a mindset and a process perspective,” said Wright. “The practices and behaviours have to change.”
Faster delivery with Digital Assurance
The solution, according to Wright, is a new approach to quality assurance. which he termed “digital assurance.”
One of the key concepts in “digital assurance” stems from what is termed ‘shifting left and right’. ‘Shifting left’ means that organizations need to think about testing much earlier in the lifecycle. For example, test cases should be generated when the requirements are developed.
The second key concept, ‘Shifting right’, focuses on getting early customer feedback. Knowing why the customer wants a feature can make a significant difference in the quality of the results.
Real Life Results
“A big challenge is that a lot of organizations are still doing testing activities sequentially,” said Wright. “If you can’t do continuous testing, you’re going to get stuck.”
Wright provided real life examples of where implementing this process has proven to be successful in large-scale organizations such as ING. Adopting continuous release and continuous quality led to a 97 per cent improvement in time to market for new applications and software updates. Wright also pointed out that his own company, CA Technologies, has used digital assurance to move from one major release every year to a new release every month.
“When you build this into your process with DevOps and you change the culture, the processes and the tools, you can get incredible results, said Julie Gardiner, director of product management with CA Technologies. “You’ll wonder why you weren’t doing it ages ago.”
If you think agile practices are just for software developers, you’re missing out on the benefits agile can bring for your entire organization.
“High performing, cross-functional teams have been shown to have incredible increases in productivity, faster time to market and greatly improved quality across the organization,” said Jim Love, CIO of ITWC and host of the recent webinar, Agile – Not Just for Software Developers.
Sponsored by CA Technologies, the session reviewed how a leading payment processing company transformed its business using agile principles.
A common misconception is that agile will yield results when you adopt it for specific projects, according to Skip Angel, chief path finder, services practice development team with CA Technologies. “What I’ve discovered is that transformation is an organizational change and a change in mindset, not just putting some processes in place,” said Angel.
Angel pointed out that many companies are not fully embracing agile throughout the organization, with 45 per cent taking a blended approach. The company in the case study initially tried it only from an IT perspective and failed.
“This is the age of the application economy and the traditional way of doing things is not enough,” said Angel. “In order to win, you need to be a disrupter.” Angel pointed to companies like Uber and AirBnb, which used technology to fundamentally change their industries.
Angel presented some compelling statistics to prove the point. Digital disrupters are 2.5 times more likely to have agile practices in place. These disrupters experienced twice the revenue growth and 2.5 times the profitability of others. As well, 1.5 times more of their revenue came from new streams of business.
“People say they’re different, but companies tend to list the same problems,” said Angel, “There’s a pattern”.
Companies are often worried that it takes too long to get products to market, and that they are trying to do too many things at once.
An agile transformation journey starts with “lean thinking,” said Angel. The goal is to streamline the process from “concept to cash” to improve the customer experience. “Agile is about being able to satisfy the customer early and often,” he said.
The first step is to identify the business outcomes needed from agility. Then, a company has to pull together its business side, the IT group, and operations. The company in the case study took a coordinated approach with its rollout strategy, said Angel. “The key thing is that the teams are all connected and roll up to bigger initiatives,” he added.
The transformation is complete once agile practices are in place
Wrong. This is an ongoing journey of continuous improvement, said Angel. The case study company set up an Agile Centre of Excellence to orchestrate the ongoing program.
Another key element is to measure success. Metrics are important to ensure that the company is building the right thing at the right time, doing it fast and in a sustainable way, and with consistently high quality. “It was really fantastic once we measured and started seeing that customers and employees were happier,” said Angel. Employees were finally able to see how their work was making a difference in the bigger picture, he added.
“Imagine a day when we have a company that is all in sync. It’s going to be amazing what they can accomplish,“ said Angel. “The future lies in using the agile principles as a company. We will hear more success stories as we start to push the boundaries of agile.”
A brief campaign summary
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|Article||Pageviews||Avg. Time Spent|
|CA Risk Analytics tool takes a bite out of fraud||1,138||1:27|
|CA acquires IT automation software vendor||1,028||1:11|
|CA launches new global channel marketing effort||1,164||1:02|
|CIOs start to sour on outsourcing IT infrastructure||1,077||2:19|
|How to get out of the starting gate on agile||1,521||2:39|
|How to provide a five-star digital customer experience||514||2:18|
|3 actionable tips ‘from the trenches’ to succeed with agile||1,557||1:18|
|Is quality assurance holding back your agile development efforts?||1,774||1:47|
|The three myths about agile practices worth debunking||698||2:03|
|10,471PAGEVIEWS||1:47AVG. TIME SPENT|