0
O
    Introducing & Demystifying
P
       SOA, Service Oriented
E
           Architecture
R
A
T          Produced by: Jess...
O Service Oriented Architecture
P
E • Introductions
     – Jessica Cloninger FLMI, CPA
R        • Vice President Administr...
O Service Oriented Architecture
P
E • Introductions
     – Jessica Cloninger FLMI, CPA
R        • Vice President Administr...
O Service Oriented Architecture
P
E • Introductions
     – Jessica Cloninger FLMI, CPA
R        • Vice President Administr...
O
P                       Agenda
E   • What is SOA?
R   • What are the benefits of SOA?
A   • How do you get started with ...
O
P
E
R
A       What is SOA?
T
I
O
N
S
    Defining Directions: The 7th Annual Intercompany LTCi Conference
SOA is an Architectural Strategy
O •Service Oriented Architecture is an
P closer business-IT alignment, by taking a
  Arch...
SOA Architectures – What’s Different?
O    New generation of technology
P     • Focus on automating connections across app...
SOA the myth

O        • Investing in products gives you SOA capability
     While there is a lot of noise, there is some ...
Increased interoperability due to use of standards

O
P      Business
                      Business Web Services (Best Pr...
Increased interoperability due to use of standards

O
P      Business
                         Business Web Services (Best...
Creating a paradigm shift from integration – centric mentality
                   to business capability

O               ...
O
P
E
R     What are the
A
    benefits of SOA?
T
I
O
N
S
    Defining Directions: The 7th Annual Intercompany LTCi Confer...
IT Architectures
O
P   Every enterprise already has an IT Architecture

E
                Some
R               are designe...
IT Architectures – Natural Skepticism From
                    Executives
O
P             •    Lots of hype
E
            ...
Traditional Challenges & Problems
O
P       Navigation
                                                               Time...
Current Metrics of IT Success

O   We measure results in ways that aren’t very meaningful to the
    business:
P        •T...
Metrics for IT Success

O
P   IT metrics need to follow Business metrics
E      •   Support for lines of business and alig...
Metrics for IT Success

O
P   IT metrics need to follow Business metrics
E      •   Non functional requirements

R      • ...
Different Perspectives Collide
O
     Business Executive                        I.T. Executive
P
E     I’ve been given a m...
SOA – Compelling business case of benefits
O
P
                                                             Third Stage
  ...
SOA – Unique Elements Supporting Business Case
O
P First Stage
E Cost-savings driven ROI       • Overlay - leverage existi...
SOA – Unique Elements Supporting Business Case
O
P   Second Stage
E     From savings to agility     • Loose coupling incre...
SOA - Unique Elements Supporting Business Case
O
P   Third Stage
E     From agility to innovation
                        ...
Building predictability for your company
O
P    What suits one customer might not suit the next.

E    While you can adopt...
O
P
E
R    How do you get
A
    started with SOA?
T
I
O
N
S
    Defining Directions: The 7th Annual Intercompany LTCi Conf...
Getting Started with SOA
O
P   • It is an organizational decision
E   • Building your organization’s SOA capabilities
R   ...
Organizational Decision
O
P   Short Term Investment ($)                           Long Term Return

E
R
    Find the right...
Meeting Business Objectives while Developing SOA Capabilities

 O             Business Objectives
                        ...
Identifying the candidate ‘services’
O   • Acquiring a portfolio of services is clearly a logical early step when
P      i...
What is the Business Architecture?
O
P   • More than Process Modeling
E       Business processes change
        The accura...
SOA and the LTCI Carrier Value Chain

O
P     Develop               Market Generate           Issue              Service P...
Examples of SOA-enabled technology initiatives

O
P • Application Integration
E       Extending Legacy Applications – buil...
Build your Foundation
O
P   • Look for opportunities to leverage assets
E   • Evaluate buying the capability
R
    • Provi...
O
P
E
R     SOA Case Study
A
T
I
O
N
S
    Defining Directions: The 7th Annual Intercompany LTCi Conference
              ...
Business Agility and faster time to market Company using
                           SOA based …
O
P   Context
    • Client...
Legacy Modernization - for one of the largest Healthcare
O                    Insurance Company


P   Approach
    • Re-ar...
Summary and Conclusion
O
P   • Have a plan
E   • Communicate the plan
R
    • Doesn’t happen overnight, it’s an investment...
O
P
E
R
A     Any Questions?
T
I
O
N
S
    Defining Directions: The 7th Annual Intercompany LTCi Conference
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  1. 1. O Introducing & Demystifying P SOA, Service Oriented E Architecture R A T Produced by: Jessica Cloninger FLMI, CPA I Vice President Administration AEGON USA, Long Term Care O N S Defining Directions: The 7th Annual Intercompany LTCi Conference
  2. 2. O Service Oriented Architecture P E • Introductions – Jessica Cloninger FLMI, CPA R • Vice President Administration, AEGON USA, Long Term Care AEGON USA, Long Term Care A – Sohrab Kakalia T • Vice President & Head of Technology Consulting, Infosys Technologies I – Rosie Levitt • Information Technology Director, AEGON USA, Long O Term Care Division. – Jim Moore N • Sr. Systems Director, John Hancock, LTC Technology Office. S Defining Directions: The 7th Annual Intercompany LTCi Conference 2
  3. 3. O Service Oriented Architecture P E • Introductions – Jessica Cloninger FLMI, CPA R • Vice President Administration, AEGON USA, Long Term Care AEGON USA, Long Term Care A – Sohrab Kakalia T • Vice President & Head of Technology Consulting, Infosys Technologies I – Rosie Levitt • Information Technology Director, AEGON USA, Long O Term Care Division. – Jim Moore N • Sr. Systems Director, John Hancock, LTC Technology Office. S Defining Directions: The 7th Annual Intercompany LTCi Conference 3
  4. 4. O Service Oriented Architecture P E • Introductions – Jessica Cloninger FLMI, CPA R • Vice President Administration, AEGON USA, Long Term Care AEGON USA, Long Term Care A – Sohrab Kakalia T • Vice President & Head of Technology Consulting, Infosys Technologies I – Rosie Levitt • Information Technology Director, AEGON USA, Long O Term Care Division. – Jim Moore N • Sr. Systems Director, John Hancock, LTC Technology Office. S Defining Directions: The 7th Annual Intercompany LTCi Conference 4
  5. 5. O P Agenda E • What is SOA? R • What are the benefits of SOA? A • How do you get started with SOA? T • What is the future of SOA? I O • Summary and Conclusion N • Q&A S Defining Directions: The 7th Annual Intercompany LTCi Conference 5
  6. 6. O P E R A What is SOA? T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference
  7. 7. SOA is an Architectural Strategy O •Service Oriented Architecture is an P closer business-IT alignment, by taking a Architectural Strategy that helps achieve E enterprise. The three dimensions being: three dimensional perspective of the R Technology, People andis to make •The key aspect of SOA Processes. A business functionality available as a set of well governed, standards based, SOA is a set of… Policies, Practices and T defined in a flexible and agile manner loosely coupled services and processes, Architectural patterns I SOA is not a… Technology, Product or Standard O Level of reuse Reuse at the Enterprise level, federated services Focus of Integration N SOA & Web Services Dynamic integration at Business process level, Service as Building blocks Web Services are a specific open Organizational Involvement standards based implementation of a S SOA. They are a technical Business participation in development implementation of the core concepts of SOA Defining Directions: The 7th Annual Intercompany LTCi Conference 7
  8. 8. SOA Architectures – What’s Different? O New generation of technology P • Focus on automating connections across applications/databases E • Based on ubiquitous standards (XML as foundation) R • New design philosophy for connections – loose coupling A New architecture – Service Oriented Architecture T I • Web Services O • IT services Business services N • Relevant participants – across enterprises S Defining Directions: The 7th Annual Intercompany LTCi Conference 8
  9. 9. SOA the myth O • Investing in products gives you SOA capability While there is a lot of noise, there is some direction P • SOA is a one time investment all • SOA has to be done enterprise-wideto follow platform vendors have in principle agreed E • ESB and Workflow/BPEL are a must for SOA specific technology standards. This makes SOA one of R the biggest transformational opportunities in IT A T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 9
  10. 10. Increased interoperability due to use of standards O P Business Business Web Services (Best Practices) : Service offerings and components (e.g., risk management, agent finder, policy administration , payment options, claims adjustment) … E Integration Evolving industry semantics (RosettaNet, AIAG, ACORD, FIXML, OTAXML, UCCnet, etc.) Service-oriented Business Resource Description & Interaction Patterns (WS-Collab) R WS-Service Group WS-Notification BPEL4WS A WS-Reliable Messaging WS-Transaction T WS-Security WS-Resource Lifetime I Service Composition Description WS-Resource Properties WS-Base Faults O XSD WSDL WS-Policy WS-Metadata Exchange N Messaging XML SOAP WS-Addressing WS-Renewable References S Transports HTTP/HTTPS SMTP RMI / IIOP JMS Source: IBM ISV and Developer Relations Defining Directions: The 7th Annual Intercompany LTCi Conference 10
  11. 11. Increased interoperability due to use of standards O P Business Business Web Services (Best Practices) : Service offerings and components (e.g., risk management, agent finder, policy administration , payment options, claims adjustment) … E Integration Evolving industry semantics (RosettaNet, AIAG, ACORD, FIXML, OTAXML, UCCnet, etc.) Service-oriented Business Resource Description & Interaction Patterns (WS-Collab) R WS-Service Group WS-Notification BPEL4WS A WS-Reliable Messaging WS-Transaction T WS-Security WS-Resource Lifetime I Service Composition Description WS-Resource Properties WS-Base Faults O XSD WSDL WS-Policy WS-Metadata Exchange N Messaging XML SOAP WS-Addressing WS-Renewable References S Transports HTTP/HTTPS SMTP RMI / IIOP JMS Source: IBM ISV and Developer Relations Defining Directions: The 7th Annual Intercompany LTCi Conference 11
  12. 12. Creating a paradigm shift from integration – centric mentality to business capability O Business logic in a P declarative fashion: Business composes Online Batch Business Applications services into E processes R Integration to Process level Business Processes Integration Patterns A Process Choreography Service Fabric •Process Integration •Data Integration •Platform Integration T Cross-Component Composite Base Services Services Services Shared Business Services I Meta Data driven O Base Process Interaction Component based Service Realization Patterns N •Component based •New development S Legacy / Enterprise App / Data Defining Directions: The 7th Annual Intercompany LTCi Conference 12
  13. 13. O P E R What are the A benefits of SOA? T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference
  14. 14. IT Architectures O P Every enterprise already has an IT Architecture E Some R are designed A and some T just happened I O But it’s there N and it affects the efficiency of the enterprise S Defining Directions: The 7th Annual Intercompany LTCi Conference 14
  15. 15. IT Architectures – Natural Skepticism From Executives O P • Lots of hype E • Complicated R A • Expensive T • Unclear business returns I • Constraints on action O At best a necessary evil N At worst, a black hole S Defining Directions: The 7th Annual Intercompany LTCi Conference 15
  16. 16. Traditional Challenges & Problems O P Navigation Time to market E of a business is static change is high R A Workflow is very rigid T I Screens Programs Data Store O • 3270 Character Based • Typically encapsulate data manipulation, • Mix of Relational, Screens program flow control, business validations and hierarchical, network • No GUI, Contain display control flows, validation and application structure imposing all at one place Multiple databases and flat files Data N • Very badly documented less business logic programs integrity • Fragile due to successive • New technologies like web intuitive modified for 2.0 raising xpectations and maintenance/enhancement is weak S making it more demanding one change Defining Directions: The 7th Annual Intercompany LTCi Conference 16
  17. 17. Current Metrics of IT Success O We measure results in ways that aren’t very meaningful to the business: P •Thousands of MIPS E • Terabytes of DASD Computers and R • Licenses, records • CPUs, Mhz, MB Peripheral Equipment A 10% T Communications IT Budget 30% 11% Equipment I IT Salary & Benefits O 26% Software 23% N Services and Outsourcing S Defining Directions: The 7th Annual Intercompany LTCi Conference 17
  18. 18. Metrics for IT Success O P IT metrics need to follow Business metrics E • Support for lines of business and alignment R • Atomic business processes identified and supported by IT A • Business processes supported/reflected by T integrated IT I • Speed and agility to market for new requirements O • Ease of compliance and reporting N • Not just ROI but value generation S Defining Directions: The 7th Annual Intercompany LTCi Conference 18
  19. 19. Metrics for IT Success O P IT metrics need to follow Business metrics E • Non functional requirements R • Geographic growth A • Business continuity planning T • Security threats I • Automation of processes O • Transparent to technology changes N S Defining Directions: The 7th Annual Intercompany LTCi Conference 19
  20. 20. Different Perspectives Collide O Business Executive I.T. Executive P E I’ve been given a mandate R This is my problem – I’ve But what about to reduce operating expenses security? got to address it by 15% A T This is my problem – I’ve But we need to avoid I got to address it meta-spaghetti O N I’ve got 9 months to But let’s get our architecture right first show results S Defining Directions: The 7th Annual Intercompany LTCi Conference 20
  21. 21. SOA – Compelling business case of benefits O P Third Stage From agility E to innovation R Second Stage A From savings T to agility I O Near-term Business Case Cost-savings driven N through ROI in operations S Defining Directions: The 7th Annual Intercompany LTCi Conference 21
  22. 22. SOA – Unique Elements Supporting Business Case O P First Stage E Cost-savings driven ROI • Overlay - leverage existing I.T. R investments • Incremental - lowers additional A investment T • Targeted – address most pressing inefficiencies I • Reusability – shorten lead-times even further O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 22
  23. 23. SOA – Unique Elements Supporting Business Case O P Second Stage E From savings to agility • Loose coupling increases R “mix and match” capability • Services accessible from A growing range of sources T • Progressive alignment between business and IT functions I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 23
  24. 24. SOA - Unique Elements Supporting Business Case O P Third Stage E From agility to innovation • Greater opportunity to experiment R within services A • More options to recombine services to tailor/add value T • More ability to add innovative services on top of existing services I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 24
  25. 25. Building predictability for your company O P What suits one customer might not suit the next. E While you can adopt best practices it is not always R beneficial to do so without fitting it right. A T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 25
  26. 26. O P E R How do you get A started with SOA? T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference
  27. 27. Getting Started with SOA O P • It is an organizational decision E • Building your organization’s SOA capabilities R • Build your Roadmap A • Identify the candidate projects that yield T ‘services’ within the organization I • Build your foundation O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 27
  28. 28. Organizational Decision O P Short Term Investment ($) Long Term Return E R Find the right projects Lays the foundation A Find the right services Better alignment between T (top-down or bottom-up) business and IT I Adopt an evolutionary approach – not a big bang O Early wins can be made without an initial big investment N A Larger investments in tools, process, and organizational changes will be needed in the longer-term S Defining Directions: The 7th Annual Intercompany LTCi Conference 28
  29. 29. Meeting Business Objectives while Developing SOA Capabilities O Business Objectives Review proposed projects for characteristics conducive to P SOA. The characteristics include: Strategies E Reusability Integration between data R Projects sources, applications, & depts. A Capabilities Multiple views of Information T Robust process or transaction capabilities I Business rules driven These capabilities O Technology People Process Standards, are defined by a set of technology, N Tools, Skills, Specifications Organization Techniques, people, and Metrics processes. S Defining Directions: The 7th Annual Intercompany LTCi Conference 29
  30. 30. Identifying the candidate ‘services’ O • Acquiring a portfolio of services is clearly a logical early step when P implementing an SOA. E • Different techniques to discover candidate services are top-down and bottom-up - a combination of both approaches are needed R • Top-down approach A Understand/Define the Business Architecture Approach results in high-value course-grained business services T A good approach as it is tightly aligned with the business • Bottom-up approach I Examines existing systems and data to identify services Approach typically results in finer-grained services that are tied close to O the implementation (technology) N • Other considerations Ease of maintenance: reduce overhead/redundancy S Flexibility: enable dynamic change; identifying the bottlenecks Defining Directions: The 7th Annual Intercompany LTCi Conference 30
  31. 31. What is the Business Architecture? O P • More than Process Modeling E Business processes change The accuracy of static process models are short-lived R A • Business capabilities Focus on the ‘what’ not the ‘how’ T Generated from top-down analysis I Provide a stable view of the business (insulated from process changes) O Provide a framework for identifying candidate services Examples: ‘issue policy’ and ‘pay commission’ N S Defining Directions: The 7th Annual Intercompany LTCi Conference 31
  32. 32. SOA and the LTCI Carrier Value Chain O P Develop Market Generate Issue Service Process E Product Product Demand Product Product Claims R A T Supporting Business Processes I Issue Policy Pay Commission Adjudicate Claim Send Correspondence O Business Services N IT Applications, Data, and Infrastructure S Defining Directions: The 7th Annual Intercompany LTCi Conference 32
  33. 33. Examples of SOA-enabled technology initiatives O P • Application Integration E Extending Legacy Applications – building R adapters A Exposing ‘Popular’ Functionality – Illustrations T and Agent License Checking I • Process-Centric Business Functions O such as Underwriting and Claims N S Defining Directions: The 7th Annual Intercompany LTCi Conference 33
  34. 34. Build your Foundation O P • Look for opportunities to leverage assets E • Evaluate buying the capability R • Provide guiding principles A T • Implement best practices I • Monitor the progress O • Evangelize N S Defining Directions: The 7th Annual Intercompany LTCi Conference 34
  35. 35. O P E R SOA Case Study A T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference 35
  36. 36. Business Agility and faster time to market Company using SOA based … O P Context • Client is one of the largest US based Healthcare Drivers • Agility and Speed to Market: Introduce new products E Insurance companies in a reduced period (9 to 3 months or less) • Client has embarked on a mammoth 3 year program • Higher customer satisfaction by improved operational to modernize the core Enterprise Applications efficiency through timely data propagation across R • At the core of this Strategic Program is the re- architecture of legacy applications to make them various systems • Availability of accurate and real-time data by the elimination of inconsistencies and redundancies A business agile • The future state architecture (FSA) prescribed Service • Reduction in the Total Cost of Ownership through the Oriented Architecture (SOA) elimination of redundant suite of applications T • Infosys has completed the first two stages of this • Provide near 24*7 system availability by eliminating initiative; currently proceeding with the further stages architecture and technology constraints I Challenges O • The core legacy applications are over 2 decades old and have grown organically. Hence it is desired to harvest the business knowledge from existing code rather than re-writing a new application from scratch. N • Complex, spaghetti-like code in existing applications which has evolved over two decades • Expected response time of re-engineered applications to remain the same as the current application • Futuristic Information Architecture without changing Business Rules and minimal change in User Experience S Defining Directions: The 7th Annual Intercompany LTCi Conference 36
  37. 37. Legacy Modernization - for one of the largest Healthcare O Insurance Company P Approach • Re-architecting & re-factoring the monolithic Solution • Mainframe Technology - IBM Mainframe, Z/OS, CICS, E CICS/COBOL based legacy application • Create reusable Business Services for Enterprise-wide DB2, IDMS, VSAM, COBOL • Conceptualize and develop a COBOL framework to R needs and implement a Service Oriented Architecture support the program (Standard interface (contract) • Incorporate business process improvements in the definition for services, Communication protocol, service systems with real time data updates and improve data registry to support dynamic service binding, error A quality, consistency and availability • Migrate from a network database (IDMS) to a handling framework, instrumentation and monitoring) • Proof of concept to validate the architectural principles T relational data-store (DB2) • Performance prototype to forecast the response time • Innovative program management practices to Manage and execution time of the systems to be re-engineered program dynamics between domains (projects) I Result O • The initial phases of the modernization has been complete (in production), which helped the organization to • Lower the TCO- lesser code inventory, re-factored code, futuristic architecture enabling easier extensions N • Improve the Data Quality through a unified Data Architecture based on Relational Database • Increase the system availability through reduced batch window • Develop a technical foundation for the future phases such as SOA based interactions, web architecture… S Defining Directions: The 7th Annual Intercompany LTCi Conference 37
  38. 38. Summary and Conclusion O P • Have a plan E • Communicate the plan R • Doesn’t happen overnight, it’s an investment A T • It’s okay to make a mistake, get started and learn from it I O • Take action, deliver value early & often N S Defining Directions: The 7th Annual Intercompany LTCi Conference 38
  39. 39. O P E R A Any Questions? T I O N S Defining Directions: The 7th Annual Intercompany LTCi Conference
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