Main point: What is driving business today? New and changing customers, global integration, business model innovation and new technology models are driving changes in the global economy today. Businesses are forced to change in fundamental ways - structurally, operationally and culturally in response to the imperatives of globalization and new technology. Supporting points for drivers: 1. New and changing customers China and India will add 1 Billion customers in the rapidly developing economies in 5-10 years (new economy) Retiring baby-boomers will spend their accumulated wealth and pass this wealth to the ‘inherited’ generation Y (old economy) 2. Global Integration Networking threshold will be reached, broken and redefined. (sharing information) Immediate transfer of goods and knowledge through standards and technology (winners must adopt critical standards set) 3. Business Model Innovation To address opportunities and challenges resulting from new and changing customers and global integration, companies and organizations must define a target operation model based on a combination of three dimensions Industry Model Innovation (IMI) Change the way your whole industry works Revenue Model Innovation (RMI) Change the way you charge your customers Enterprise Model Innovation (EMI) Redefine what you do yourself and where you collaborate 4. New Technology Models architect systems more effectively and develop them more productively Additional detail if needed: IMI: Change the way your whole industry works Redefine existing industries , (e.g. Ikea, Phoenix University Online and Linux) Move into new industries, (e.g. Apple Ipod) Create entirely new industries, (e.g. Wikipedia) RMI: Change the way you charge your customers Re-configuration of product/service/value mix, (e.g. GE Aviation) New pricing/taxing structures and models, (e.g. Gilette, pre-paid cell phone cards, Singapore road pricing) EMI: Redefine what you do yourself and where you collaborate Do as much as possible within your organization, (e.g. ZARA or US Department of Homeland Security) Specialize by focusing on differentiating activities, (e.g. Cisco) Intensively collaborate with external partners, (e.g. Bharti)
Main Point: Define SOA (Same definition we've always used) as a way of enabling the globally integrated economy Services are repeatable business tasks. Business processes are supported by way of a series of services linked together like building blocks. SOA is an architectural style that makes this possible Let’s start by looking at some base-line definitions so we’re all talking about in the same terms. First, what is Service Orientation? <read definition> Service Orientation is a way of integrating your business as linked services and, more importantly, the outcomes that they bring. We’re not talking about technology; we’re talking about a thought process and a business philosophy. Second what is a service? <read definition> It’s important to stress that we’re talking about a part of a business process here. Don’t think about software or IT. Think about what your company does on a day to day basis and break those business processes up into repeatable business tasks or components. Think about building blocks snapping together to build a structure. Services are the building blocks and they are snapped together to support a business process. What is SOA? It is quite simply the IT architectural style that supports the Service Orientation thought process makes it a reality. ** Main point** SOA makes it easy to assemble and reassemble services to support business process just like snapping together building blocks into a structure.
Main Point: Define Smart SOA: A set of guiding principles to extend the value of SOA deployments. The SOA Continuum helps define this guidance along a continuum from basic to advanced with the principles of simplicity and robustness applied throughout We take different approaches to SOA depending on our business objectives. There is no one size fits all for SOA. So rather than taking a haphazard approach to SOA, we can learn from the experiences of those around us and take a SMART approach to SOA. Smart SOA is a set of guiding principles to extend business value of deployment The central tenants of Smart SOA are: There is a continuum of guidance from basic to advanced for pursuing SOA projects allowing an organization to match its efforts to its objectives. All guidance mandates commitment to simplicity and robustness regardless of how basic or advanced the deployments are. Projects and deployments must build on each other such that doing a basic project is valuable by itself but also lays the groundwork for more advanced deployments without having to replace the original investments.
Main Point: Regardless of where you choose to engage to meet your business needs, there is IT AND business value to be had with Smart SOA This Smart SOA continuum is not a maturity model. It's not something that has a starting point and a destination. There is distinct value at every path regardless of where you choose to engage. On the basic side, Foundational SOA can deliver value through focused, proven, high ROI project. Usually narrowly defined projects for very specific needs. Scope is usually around a single application or within a single business unit. At this point, organizations will typically express less than ten percent of their functions as services. Typically less than five percent of these services are reused. Foundational SOA can deliver greater agility in specific departmental business areas and foster greater collaboration within a line of business Moving over to Extending End-to-End, organizations are typically more focused on applying the principles of SOA to the end-to-end businesses that span a wide variety of applications, lines of business and even span borders and organizations. These are typically more central and higher-profile processes and users benefit from the broader ROI of innovating and optimizing these processes Scope is usually around a single process and can span business units. At this point, organizations will typically express less than 40 percent of their functions as services. Typically less than 20 percent of these services are reused. Moving over to Transform, organizations are typically looking to use SOA to help innovate their business models using IT for strategic advantage across their enter enterprise rather than an individual business process to support the globally integrated enterprise. They are looking at multiple processes that span multiple business units. At this point, organizations will typically express less than 80 percent of their functions as services. Typically less than 50 percent of these services are reused. At the far right at the Adapt Dynamically approach, we're looking at really a somewhat aspirational state. It's about creating a predictive business that addresses market forces on a semi-automated basis. At this point, we can look forward to technology becoming invisible and business leaders being able to enact major shifts without direct IT involvement. While we've seen some organizations achieving bits and pieces of this, it's really something to strive for in general. This would encompass the extended enterprise, express over eighty percent of functions as services and reuse more than half of the services.
Main Point: Now let's transition a little bit to some of the considerations that arise when you look at expanding end-to-end and transform. As we've said, it's the same software products that are used as what we just discussed… but more advanced deployments sometimes bring up some elements that you may not have considered when doing an entry point project Process Integrity becomes a greater focus as you advance - c apabilities are there when you need them
Main Point: But &quot;easy to get started&quot; is not enough. Your investments in SOA need to grow as your needs evolve and become more advanced. Process Integrity is the ability to conduct reliable business activity in a secure, scalable SOA environment with seamless synchronization between services, human tasks, information, domains and users. Process Integrity is focused on synchronizing end-to-end processes so they provide the right amount of integrity. Process Integrity is comprised of three components: Interaction Integrity, Transaction Integrity, and Information Integrity. Interaction Integrity is about providing users with the right access to information and content. This means, for example, being able to customize the access based on the role of the user. It is also about simplifying the user’s interaction with the system – providing an easy to use interface that clearly displays the information that the specific user needs. Transaction Integrity is about executing both short running and long running transactions with confidence. Short running transactions often require full-scale transactional properties, for example, the ability to roll back a transaction if some aspect of it fails. Long running transactions must also be able to maintain their integrity, and have compensations specified for aspects of the transaction that don’t execute successfully. Information Integrity focuses on consistency of information. Information sources must be synchronized so that there are not multiple views of the same customers, partners and products.
EA Support Business and IT Drives Business and IT Strategy Enables Architectural Planning Linking Business and IT Objectives Results in IT Solution Design and Delivery Enabling SOA within the EA mission enhances SOA success Alignment of business and IT Separation of concerns Reusability of applications and information Connectivity Service lifecycle management Governance Infrastructure
NOTES – Line up the concepts between Business and IT as part of notes …
FROM: http://w3-03.ibm.com/services/market_info/CBM_interactive_presentation.html Columns are Business Competencies , defined as large business areas with characteristic skills and capabilities (e.g., product development, supply chain). An Accountability Level characterizes the scope and intent of activity and decision-making at three levels: Directing is about strategy, overall direction and policy. Controlling is about monitoring, managing exceptions and tactical decision making Executing is about doing the work NOTE – Explain this … part of JK Enterprises – discuss the hot areas – how do you do a heat map… Look at PPI notes for more information (on Sales Day)
SOMA creates continuity between the business intent and IT implementation by extending business characteristics such as goals and key performance indicators (or KPIs) into the IT analysis and architectural decisions. The outputs of business analysis and modeling efforts such as CBM are leveraged by SOMA to deliver an SOA solution. The analysis and modeling performed during SOMA is technology and product agnostic. Yet, it establishes a context for making technology specific decisions in later phases of the life cycle.
Important Points On This Slide: This slide shows a summary of the IBM SOA governance methodology – The SOA Governance and Management Method (SGMM). SGMM corresponds to the SOA governance lifecycle having 4 main phases. It is very flexible and can be tailored to a customer’s particular needs The stressed plan phase delivers an assessment that allows IBM to extend the existing IT governance environment, which will minimize disruption, and still provide an effective SOA governance model by leveraging existing governance mechanisms, which will maximize the probability of success. Speaker Notes: This slide shows the IBM SOA Governance and Management Method (SGMM), which is the IBM approach to SOA Governance. As you can see, SGMM is organized in the same 4 main phases of the SOA Governance Lifecycle of plan, define, enable, and measure. Plan – In the plan phase, the main goal is to assess the need for governance and determine what the governance efforts need to focus on for that iteration of governance work. Within this phase, the existing governance environment should be thoroughly examined, this existing environment should be baselined, the scope of the governance work should be defined, and then the organization’s ability to accept and adopt change. One of the first tasks conducted within the plan phase of the SGMM is the method tailoring workshop, which brings us to an important point on the SGMM – it is extremely flexible and allows you to focus on the elements that are most important to you within these initial stages. Another important element in the plan stage that highlights the benefit of SGMM is that the approach allows you to assess the existing governance mechanisms, so that you can define an SOA governance model that extends your existing environment and does not tries to replace what the customer already has established around IT governance. The goal of SGMM is not to rip and replace but to extend. The reason is that SGMM wants to minimize the amount of disruption and required organizational change management that is necessary to establish an SOA governance model. By extending any existing IT governance mechanisms that are effective in their purpose, the SGMM provides the ability to minimize the amount of organizational disruption. Define – In the define phase, the main goal is to simply define the governance model. The approach focuses on the definition of an ownership model for services across their lifecycle and how they will be funded, the establishment of SOA governance mechanisms such as an Architectural review board, executive steering committee or CoE if the customer decides to establish one, the various processes to be governed such as the testing of services, identification of services, development of services, etc.), the metrics associated with these processes, the roles and responsibilities within the various mechanisms (establishment of decision rights), define the various quality gates for the processes that we would like to govern (compliance processes), identify the tooling that we will use to enable our governance efforts (WSRR, monitoring, etc.), and then finally create the necessary plans to put the governance model into action – education, mentoring, communication, and transition. Enable – using the transtion, plan that we defined in the previous phase, the SGMM implements the various elements defined in the governance model. Measure – using the metrics that were defined in the define phase, data is aggregated to assess the effectiveness of the governance model Two important points about SGMM It extends existing governance mechanisms It is flexible and can be catered to your specific goals
There are currently over 25 SOA projects and 9 case studies on IBM. 2001-2002 Exploratory Isolation Layer Framework strategy Technology Focus PoC of SW Integration Simple services, most not mission critical Limited production Services, but not really SOA 2003-2004 Start of some business services Bottom-up practitioner drive Production deployed Web Services Guidance Council Initial IT metrics Mixed results 2005 SOA integration into Target Architecture Enterprise and Business Unit Components SOA Guidance Council Begin business metrics Increased top-down Enterprise focus 2006 Increased systematic Enterprise focus SOMA reviews Methodical WW Reuse Process Reuse engineers Skill build out SOA Governance Collaborative SOA dialog among lines of businesses 2007 Focus BU Integration Assist / guide BU’s management of their 2% of Development Spend for SOA Drive SOA into major initiatives Collaborate with BU SOA lead architects Use SOA to manage the Four D’s: Decreasing cost and schedules Dependencies Decomposition Decoupling Identify Enterprise Service Components Promote development of more reusable assets Develop SOA pilots with BUs and document showcases Continue focus on BU SOA Business Value Imbed SOA into basic architectural thinking New Technologies New SWG Product Capabilities Alternate Technologies SOA enablement of 3rd party products Continue Workflow as the business integration point Collaboration with EBI on Information as a Service ESBs: DataPower backbone and Message Broker Sense and Respond – out of the box WebSphere Monitor SOMA, with improved follow-up linkages to service implementation definitions Updated SOA education Registries and Repositories
Main Point: Walk through IBM 6 differentiators <<read through the differentiators. These differentiators highlight elements of the story that has just been laid out and will be discussed in other presentations going forward.>>
Transcript of "1. Smart SOA executive"
The Business Value of SOA Andrej Crepinsek IBM SWG CEMAAS IT Architect Manager
What is Driving Business Today? The Changing Business Landscape in the Globally Integrated Economy Early findings from the IBM Global CEO Study to be published Spring 2008
Globally Integrated Economy Needs the Power of…. … a service A repeatable business task – e.g., check customer credit; open new account … service orientation A way of integrating your business as linked services and the outcomes that they bring … service oriented architecture ( SOA ) An IT architectural style that supports service orientation But haphazard SOA deployments can reduce value
There is a Smarter Way! Introducing Smart SOA Foundational Extend End-to-End Transform Adapt Dynamically A set of guiding principles to extend business value of deployment
Distinct Value with Every Path Regardless of Where You Choose to Engage Technology becomes invisible IT for strategic advantage and business model innovation End-to-end business process management to innovate and optimize Focused, proven, high-ROI projects Value to IT Based on 5700 customers using our SOA offerings Value to business Greater agility in specific, departmental business areas Optimization and innovation across end-to-end business processes Business model innovation to support the Globally Integrated Enterprise Predictive business automatically responding to market forces >80% <80% <40% <10% % functions expressed as services % of services reused >50% <50% <20% <5% Scope Collaboration within a line of business Coordination across lines of business Enterprise-wide organizational cooperation Enact significant shifts without direct IT involvement Foundational Extend End-to-End Transform Adapt Dynamically
Leverage SOA Experience and Best Practices The SOA Entry Points <ul><li>When selecting SOA projects, focus on solving specific business problems as part of an evolving enterprise architecture </li></ul><ul><li>IBM has a variety of assets and best practices around the SOA entry points, based on our extensive experience with customers </li></ul>People Entry Point: Interaction and Collaboration Reuse Entry Point: Creating and reusing proven, high-value assets Information Entry Point: Information as a Service Process Entry Point: Process Automation Connectivity Entry Point: Securely and flexibly interconnecting
Process Integrity Takes SOA to the Next Level Enabling Integrity of Transactions, Interactions and Information Process Integrity SOA Entry Points Foundational Extend End to end Transform Adapt Dynamically
Advanced: Process Integrity Enabling Integrity of Transactions, Interactions and Information Transactions Must Execute Consistently with Ability to Recover as Required Users Must Be Provided with Up-to-date, Secure Access to Information and Content Information Must be Reliable, Complete and Manageable Process Integrity is the ability to conduct reliable business activity in a secure, scalable SOA environment with seamless synchronization between: Services Human Tasks Information Domains Users
SOA and Enterprise Architecture Enterprise Architecture Transition Plan EA Governance Business Operating Environment and IT Infrastructure IT Solutions Information Technology Strategy Business Strategy Business Opportunity Strategy Planning Design and Delivery Technology Availability Enterprise wide focus Project focus <ul><li>Business Architecture </li></ul><ul><li>Processes </li></ul><ul><li>Information </li></ul><ul><li>People </li></ul><ul><li>IT </li></ul><ul><li>Architecture </li></ul><ul><li>Applications </li></ul><ul><li>Information </li></ul><ul><li>Technology </li></ul>
Enterprise Architecture Links Business and IT Reconciling Business Requirements and IT Capabilities Business View Business Analyst IT View IT Architect Developer Process/Operation Model Business Process Model Business Component Business Information Business Services Architecture/ Execution Model Process Choreography UML Class Model UML Data, XML, SQL Model Service Model, WS-BPEL Enterprise Architecture Business Perspective IT Perspective
Business Strategy Drives IT Decisions IT’s Goal is to Flexibly Support Business Requirements Executable Solution Executable Solution Operation Models Operation Models Business Services Strategic KPIs Business Intent Business Understanding Solution Flexibility Quality of Service Align Optimize Correct Monitor Meeting Strategic Goals? Meeting Business Commitments? Response to Business Situations Detecting Business Situations Business Performance Management Business Strategy & Design Business Operations Solution Composition IT Implementation
The SOA Lifecycle <ul><li>Gather requirements </li></ul><ul><li>Model & Simulate </li></ul><ul><li>Design </li></ul><ul><li>Discover </li></ul><ul><li>Construct & Test </li></ul><ul><li>Compose </li></ul><ul><li>Integrate people </li></ul><ul><li>Integrate processes </li></ul><ul><li>Manage and integrate information </li></ul><ul><li>Manage applications & services </li></ul><ul><li>Manage identity & compliance </li></ul><ul><li>Monitor business metrics </li></ul><ul><li>Financial transparency </li></ul><ul><li>Business/IT alignment </li></ul><ul><li>Process control </li></ul>
SOA Reference Architecture Supporting the SOA Lifecycle Interaction Services Information Services Partner Services Business App Services Access Services Development Services Management Services Infrastructure Services Enables collaboration between people, processes & information Manages diverse data and content in a unified manner Connect with trading partners Build on a robust, scaleable, and secure services environment Facilitate interactions with existing information and application assets Integrated environment for design and creation of solution assets Manage and secure services, applications & resources Optimizes throughput, availability and utilization Apps & Info Assets Process Services Business Services Supports enterprise business process and goals through businesses functional service Enterprise Service Bus Orchestrate and automate business processes
SOA Solution Layering Leveraging the SOA Reference Architecture Atomic Service Composite Service Registry Services atomic and composite Operational Systems Service Components Consumers Business Process Composition; choreography; business state machines Service Provider Service Consumer Integration (Enterprise Service Bus) QoS Layer (Security, Management & Monitoring Infrastructure Services) Data Architecture (meta-data) & Business Intelligence Governance Channel B2B Packaged Application Custom Application OO Application
Key Standards for SOA SOA and Web Service Standards Business Services: Service Offerings and Components (ACORD, HL7, eTOM, ARTS…) Industry Semantics (SWIFT, FIXML, OTAXML, UCCNet…) Infrastructure Standards Industry Standards Security (WS-Security) Transactions (WS-Atomic Transaction, WS-Business Activity) Management (IT Information Library) Service Orchestration (WS-BPEL) Service Discovery (UDDI, Reusable Asset Specification) Service Invocation & Messaging (SOAP, WS-Addressing, REST) Service Description (WSDL) Data Exchange (XML, JSON) Network Protocol (HTTP, SMTP) Service Interaction (WSRP, JSR 168, AJAX) Programming Model (SCA, SDO) Profiles WS-I Basic Profile, WS-I Basic Security Profile, WS-I Reliable Secure Profile
Business Component Analysis <ul><li>The enterprise is mapped out as a set of categorized business components </li></ul><ul><li>Heat map highlights components for analysis based on criteria such as gaps and efficiency </li></ul><ul><li>Enables approaches to understanding how the business can be improved </li></ul>Controlling Executing Directing Business Planning Business Unit Tracking Sales Management Credit Assessment Reconciliation Compliance Staff Appraisals Relationship Management Sector Management Product Management Product Administration Product Fulfillment Sales Marketing Campaigns Product Directory Credit Administration Customer Accounts General Ledger Document Management Customer Service Collections Account Administration Business Administration New Business Development Relationship Management Servicing & Sales Product Fulfillment Financial Control and Accounting Sector Planning Portfolio Planning Account Planning Sales Planning Fulfillment Planning Fulfillment Monitoring Purchasing Branch/Store Operations
Service Oriented Modeling and Architecture (SOMA) Links Business Intent with IT Implementation <ul><li>SOMA gets inputs from business analysis activities, and produces outputs necessary for SOA implementation </li></ul><ul><li>The analysis and modeling performed during SOMA is technology and product agnostic , but establishes a context for making technology and product specific decisions in later phases of the lifecycle </li></ul><< Input from Business Analysis >> <<Output to SOA Implementation >> SOMA Service Identification Service Specification Service Realization
Service Exposure Decisions Within Service Identification <ul><li>Business Alignment: </li></ul><ul><ul><li>Is the service business relevant? </li></ul></ul><ul><ul><li>Is funding available for service development and management? </li></ul></ul><ul><ul><li>Is the service sharable? </li></ul></ul><ul><li>Composability </li></ul><ul><ul><li>Is the service consistent with NFRs at the composite level? </li></ul></ul><ul><ul><li>Is service stateless? </li></ul></ul><ul><ul><li>Is the service self-contained? (Are there dependencies?) </li></ul></ul><ul><ul><li>Is the service technology neutral? </li></ul></ul><ul><li>Externalized Service Description </li></ul><ul><ul><li>Is there an externalized service description e.g. WSDL? </li></ul></ul><ul><ul><li>Can the service be discovered and bound via the service description? </li></ul></ul><ul><ul><li>Does the description contain meta-data about itself? </li></ul></ul><ul><li>Redundancy Elimination </li></ul><ul><ul><li>Can the service be applied to all processes where its function is required? </li></ul></ul>Services (exposed) Candidate Services Business Alignment Composability Externalized Service Description Redundancy Elimination Service Litmus Test
SOA Governance & Management Method (SGMM) IBM’s Comprehensive Approach to SOA Governance Define the scope of governance: business, development governance or service management or all of the above Define new governance processes for services and define SOA governance mechanisms such as the SOA Center of Excellence Begin implementation of the SOA Center of Excellence, Skills Enablement, Organizational Change, Infrastructure Change, etc. Monitor composite application performance and adjust; Monitor effectiveness of governance changes Tailor method for goals/environment Determine the Governance Focus Plan Define Enable Measure Define the SOA Governance Model Implement the SOA Governance Model Refine the SOA Governance Model Understand current Governance structures Define scope of governance Define and refine governance processes Define organizational change Conduct change readiness survey Define IT changes in SOA development Implement the transition plan Initiate SOA Org Changes Launch the SOA Center of Excellence Implement infrastructure for SOA Measure effectiveness governance processes Measure effectiveness of organization change Review and refine operational environment Continuous SOA Governance Process Measurement & Improvement
Evolution of SOA within IBM 2001 - 2002 Exploratory 2003 - 2004 Early Projects 2006 Enterprise Governance 2005 Opportunity Projects and Enterprise Architecture 2007 BU Integration & New Technologies
Why IBM? Trusted, experienced guidance based on 5700 customers* *# of Customers using our SOA offerings Basic to advanced to grow as your needs evolve Pioneering metrics for SOA and agility Only vendor across people, process, and information Simplicity & robustness for consumability and confidence End-to-end processes based on industry best practices Investment protection through open standards
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