SOA for MultiChannel Business Richard Veryard

The term "multi-channel" is used in different ways. But it always implies some kind of complexity. TIBCO IONA BEA/Oracle technological commercial organizational

Dell has evolved from multi-channel communications to multi-channel commercial relationships Multi-Channel Communications Multi-Channel Business Telephone Internet Retail Kiosk Phone Internet Kiosk ?? DELL Global Partners

Multi-Channel Communications

Typical Multi-Channel Scenario 1 Original Channel (bricks and mortar) 2a Experimental Channel (e.g. Internet Banking) – initially low-volume, low risk 2b Second Channel becomes mainstream 3 Use SOA to put both channels onto a single platform of shared services. consistency, efficiency, compatibility & seamlessness of cross-channel activity 4 Finally, the platform can be opened up to third party collaboration (e.g. Mashups) DIFFERENTIATE STANDARDIZE INNOVATE ECOSYSTEM High Value High Risk Low Value Low Risk 1 2a 2a 3 3.1 3.2 Specialized Generic 4c 4b 4a

1 Original Channel (bricks and mortar)

2a Experimental Channel (e.g. Internet Banking) – initially low-volume, low risk

2b Second Channel becomes mainstream

3 Use SOA to put both channels onto a single platform of shared services.

consistency, efficiency,

compatibility & seamlessness of cross-channel activity

4 Finally, the platform can be opened up to third party collaboration (e.g. Mashups)

Multi-channel pattern: Merger & acquisition Two Separate Companies One Company, Two Brands A B A B

Two Separate Companies

One Company, Two Brands

Multi-channel pattern: Two-Sided Markets One-Sided Market Two-Sided Market A B Simple value proposition Complex value proposition

One-Sided Market

Two-Sided Market

SOA as an architecture for managing complexity Dimensions of Business Complexity Delivery / Interface eCommerce, Web, Call Center, Kiosk, SMS, Product Class/Consumer Enterprise, SME, Retail Consumer, Citizen, Intra-government 2-sided markets Commercial Channel Wholesale, Retail, Corporate, Partner, Direct Brand integration, mergers & acquisition Pricing Type Credit, eCommerce, Cash, Direct Debit Subscription, Fixed-Price, Pay-as-you-Go, Product Delivery Technology Managed Service, DVD, SaaS CD, DVD, Video on Demand How can we avoid a combinatorial explosion of complexity in IT systems? By establishing a well-architected service-oriented architecture (SOA) with decoupling between the layers. Business Complexity System Complexity

Dimensions of Business Complexity

Delivery / Interface

eCommerce, Web, Call Center, Kiosk, SMS,

Product Class/Consumer

Enterprise, SME, Retail Consumer, Citizen, Intra-government

2-sided markets

Commercial Channel

Wholesale, Retail, Corporate, Partner, Direct

Brand integration, mergers & acquisition

Pricing Type

Credit, eCommerce, Cash, Direct Debit

Subscription, Fixed-Price, Pay-as-you-Go,

Product Delivery Technology

Managed Service, DVD, SaaS

CD, DVD, Video on Demand

How can we avoid a combinatorial explosion of complexity in IT systems?

By establishing a well-architected service-oriented architecture (SOA) with decoupling between the layers.

Strategic Channel Roadmap DIFFERENTIATED INNOVATE Single Channel Recent History New Channel DUPLICATE Short-Term Plan Longer-Term Plan New Channels ECOSYSTEM STANDARDIZE INNOVATE INNOVATE INNOVATE COLLABORATE COLLABORATE COLLABORATE time 1. A business innovation leads to system duplication. 2. SOA allows business innovation to thrive without negative system consequences … 3. … and provides a platform for further business innovation. Multi-Channel

Multi-channel is a trigger for getting smarter about SOA Situation complexity multiple business channels multiple pricing models multiple technology channels multiple product technologies Problem inefficient inconsistent disconnected Implications innovation (time to market) customer satisfaction profitability duplicated Challenges multiple systems multiple partners Reference Architecture Separate homogeneous layers from heterogeneous layers Interoperability Canonical semantic model Robust infrastructure Standards & protocols Business Analysis & Design Analyse dimensions of complexity Design platform business Governance Coordinate between homogeneous and heterogeneous Coordinate between multiple heterogeneous Coordinate change

Reference Architecture

Separate homogeneous layers from heterogeneous layers

Interoperability

Canonical semantic model

Robust infrastructure

Standards & protocols

Business Analysis & Design

Analyse dimensions of complexity

Design platform business

Governance

Coordinate between homogeneous and heterogeneous

Coordinate between multiple heterogeneous

Coordinate change

If you were intrigued by this presentation … For more of my stuff … … read my blog RVsoapbox.BlogSpot.com … browse my articles del.icio.us/richardveryard For more on SOA … … read the SOA Process blog SOAprocess.BlogSpot.com … and join the CBDI Forum Bronze membership is free Gold membership provides access to all articles Platinum membership provides full access to knowledgebase www.cbdiforum.com

For more of my stuff …

… read my blog

RVsoapbox.BlogSpot.com

… browse my articles

del.icio.us/richardveryard

For more on SOA …

… read the SOA Process blog

SOAprocess.BlogSpot.com

… and join the CBDI Forum

Bronze membership is free

Gold membership provides access to all articles

Platinum membership provides full access to knowledgebase