Yiwei ChenUpdated on firstname.lastname@example.orgDEFINING BUSINESS SERVICESSOA from Corporate & Operation Perspectives* Keynotes for SOA Conferences and Symposiums in Beijing, Kuala Lumpur, and Dubai during 2007 and 2008
2HIGHLIGHTS IT & Business Gap Defining Corporate Business Services Defining Business Service Delivery Paradigm Servicing Channels Operational Services Role-based Organization SOA is the Enabler Merging IT & Business Gap
3WIRELESS’ SERVICE DISRUPTION A leading 3G wireless provider in US in 2003“A major CRM system had crashed during an upgrade,and customer service representatives could not set upor access new accounts. The system breakdowns,which continued through February 2004, swampedother … systems, gridlocked customer service phonebanks and sent furious customers scurrying to otherproviders.”– CIO Magazine Acquired by another company soonafterwards
4WHAT IS SOA?New IT framework?New technology?Integration?Software as a service?Web services?Better Governance?
5VIEWING FROM A CORPORATE PERSPECTIVENew IT framework?New technology?Integration?Software as a service?Web services?Better Governance?Can SOA enable the corporate to focus onbusiness, nothing but business?
6IT CHALLENGES IN BUSINESS’S EYECorporateBusinessOperationITOrganizationITProject Lack of understanding to evolvingbusiness Business’s blindness into ITsystems SOA perceptions Arbitrariness in defining services Extremely complex Simply solving the same old businessproblems as the old technologies had done
7IT CHALLENGES IN BUSINESS’ EYES Lack of understanding toevolving business Business’s blindness into ITsystems SOA perceptions Arbitrariness indefining services Extremely complex Simply solving the same oldbusiness problems as the oldtechnologies had doneCorporateShow me thereal value!CorporateBusinessOperationITOrganizationITProject
8FOCUS ON CORPORATE INTERESTS Maximize the asset value Minimize the risks Manage all key liabilities Customers Employees Users Suppliers Investors Regulators …CustomersCorporateInvestorsEmployeesSuppliersUsersRegulators
9BUSINESS SERVICES & PROCESSESCorporateCustomersInvestorsEmployeesSuppliersUsersRegulatorsDepositProductSOA makes it technically feasiblefor a corporate to focus on business
10BUSINESS SERVICES & PROCESSESSOA makes it technically feasible for acorporate to focus on businessCorporate BusinessServicesCustomersInvestorsEmployeesSuppliersUsersRegulatorsDepositProduct Corporate business servicescan be triggered by Service recipients, or Internal operations
11BUSINESS SERVICES & PROCESSES Corporate business servicescan be triggered by Service recipients, or Internal operations Business processes drive thecorporate business services A workflow to go through fordelivering the corporatebusiness service Can be managed, automated,and optimizedBusinessProcessesCorporate BusinessServicesCustomersInvestorsEmployeesSuppliersUsersRegulatorsDepositProduct
12BUSINESS SERVICES DELIVERY PARADIGM Operational servicesorchestrate… Business processes thatdrive… Corporate businessservices to bedelivered to… Service recipientsthrough… Servicing channelsOperational services are all otherservices outside ofcorporate business services
13OPERATIONAL SERVICESServicingChannelServicingChannelCorporateBusinessServiceCorporateBusinessServiceOperationalServiceOperationalServiceOperationalServiceOperationalServiceBusinessprocessOperationProcessOperationProcessCorporateBusinessServiceServicingChannel A business processactivates operationalservices An operational servicecan initiate a newoperational businessprocess An operational businessprocess may also triggera corporate businessservice Timed billing Procurement
14CORPORATE BUSINESS SERVICES VS.OPERATIONAL SERVICESService Type ServiceRecipientPerformer Legal Liability ServicingChannelsFinancialTransactionCorporate BusinessServiceExternal entity Corporate Corporate Attended &unattendedUsually happensOperational Service Internal businessprocessIndividualPrincipalNone None NoneServicing ChannelServiceServicing channel IndividualPrincipalNone None None* Servicing channel service is a special type of operational serviceUnambiguously defining services
15DEMAND FOR A ROLE-BASED ORGANIZATION Qualified principals for performingoperational service Employees Temporary workers Outsourced staff External service providers Enterprise applications Robots A true role-based organization Collection of operational serviceperformer roles Well managed principal to roleassignments Ensure the business continuity
16ORGANIZATION PARADIGM SHIFT- Courtesy of New Yorker"Dammit, our board has three robots on it, and nowone guy is voting with them against the other fourhumans at the table, resulting in a tie. That makes mescowl."Human and enterpriseapplications areworking in togetherfor the same businessprocess to deliver acorporate businessservice.
18SERVICING CHANNELS Conduit forenterprise to offercorporate businessservices to recipients Performers of theservicing channelservices areperforming corporatebusiness services oncorporate behalf
19INTERACTION MODELConsists ofCorporateBusinessServiceRecipientProvides Services toRole-basedOrganizationBusinessProcessCorporateBusinessServiceServicingChannelServicingChannelServiceServicingChannelServicePerformerServicePerformerOperationalServiceIs a Kind ofDrivesOrchestratesIs Provided toRecipientsThroughPerformsOperatesPerformsIs a Kind of
20SUPPLY-CHAIN EXAMPLEConsists ofCorporateBusinessServiceRecipientProvides Services toRole-basedOrganizationBusinessProcessCorporateBusinessServiceServicingChannelServicingChannelServiceServicingChannelServicePerformerServicePerformerOperationalServiceIs a Kind ofDrivesOrchestratesIs Provided toRecipientsThroughPerformsOperatesPerformsIs a Kind ofOrganizational Roles• Procurement Manager• Logistics Manager• Cataloguer• Buyer• Material Controller• DispatcherOperational Services• Production Planning• Transportation Planning• Logistics Management• Demand Planning• Warehousing• ManufacturingBusiness Processes• Plan-to-Produce• Trigger-to-Replenishment• Order-to-Cash• Demand-to-Fulfill• Build-to-OrderCorporate Business Services• Sourcing• Procurement• Order Fulfillment• Invoicing & Settlement• Customized Product ConfigurationServicing Channels• Attended Human Direct• Attended Human Indirect• Unattended Portal• Unattended B2BService Recipients• Public• Customers• Suppliers• Employees• Auditors
21SOA IS THE ENABLING PARADIGM SOA encapsulates the corporate business services whileautomating the invocation of business processes SOA makes the business process manageable throughagile workflow SOA makes role-based organization operationally feasible SOA makes all services transparent for monitoring andgovernance SOA makes business scalable, highly available, and agile
22MERGING IT-BUSINESS GAP Corporate fully owns the corporate business services Business operation drives the business processes andoperational services IT is part of the business operation IT builds and supports the SOA infrastructure for enterpriseapplications and software tools that empowers Business service management Business process management SAAS-nized enterprise applications Build the new IT-business relationship
23Business Services ManagementForManaging Corporate Business ServicesBusiness Process ManagementForManaging Corporate BusinessServicesBusiness Services ManagementForManaging Operational ServicesBusiness Process ManagementForManaging Operational ServicesBusinessAnalystBusiness/Oper.ManagerBusiness/Oper.SpecialistBusinessExecutionBusinessGovernanceBusinessStrategyOperationGovernanceOperationStrategyOperationStrategyBusinessMonito-ringOperationExecutionOperationGover-nanceOperationStrategyBusiness/Oper.StrategistMERGING IT-BUSINESS GAPBusiness Services ManagementForManaging IT Operational ServicesIT SupportSpecialistIT SystemAnalystIT ArchitectIT Developer IT ManagerITSupportITSupportITPerformanceMonitoringITSupportITExecutionITPerformanceMonitoringITSupportITExectionITPerformanceMonitoringITGovernanceITStrategyITSupportITExecutionITPerformanceMonitoringITGovernanceITTechnologyMonitoringITExecutionITGovernanceITStrategyOwnershipITOrganizationBusinessOperationCorporateBusinessOperationBusinessOperation
24CONCLUSION SOA streamlines business services in broader sense Business services are composed of corporate business services andoperational services SOA is the enabling technology for the novel business servicedelivery paradigm The novel service delivery paradigm enables IT to well align behindbusiness The business-IT gap can be eventually merged Corporate benefits from being able to be business focusing,guaranteed business continuity, and gaining true business agility