SOA Consortium Promoting Business-Driven SOA "Executive Suite ...


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SOA Consortium Promoting Business-Driven SOA "Executive Suite ...

  1. 1. Where SOA Means Business SOA Consortium Promoting Business-Driven SOA “Executive Suite SOA” Case Study Summary Amit Sinha – SAP Fillmore Bowen - IBM June 28, 2007 Page: 1 SOA is a Business Strategy ©2007 Object Management Group
  2. 2. SOA Consortium Promoting Business-Driven SOA The SOA Consortium mission, strategies, and tactics center on the following premises: • Service Oriented Architecture adoption is a key enabler for the 21st century enterprise • Achieving the benefits of Service Oriented Architecture requires significant changes for both IT and business executives • Service Oriented Architecture is perceived by business executives as an IT integration and productivity story, rather than a business agility story • Enterprise SOA practitioners would greatly benefit from a vibrant practitioner community to drive local, business-driven, SOA success, and to spur broader enterprise, and industry- wide, SOA adoption. Ele me nta l Links Page: 2 ©2007 Object Management Group
  3. 3. SOA Consortium Promoting Business-Driven SOA The SOA Consortium is working to achieve the following goals by 2010, that: • 75% of the Global 1000 self-proclaim SOA Success • 75% of Major Government Agencies self-proclaim SOA Success • 50% of mid-size businesses self-proclaim SOA Success The SOA Consortium defines SOA success in terms of business value generation, business agility, IT agility, IT productivity, and business and IT collaboration. Ele me nta l Links Page: 3 ©2007 Object Management Group
  4. 4. Search for the path for SOA Adoption Adoption Paths follow Business Strategies Managing Relationships 23% Cost Containment – Common paths not found for 23% • size, industry, geographical Business Process Innovation dimensions 14% Create new products or services – Repeatable paths seen for 10% differing business strategies Enter new markets, segments, channels • Companies typically focus on 1-2 key 10% business strategies Compliance • Path consists of 5-6 IT steps across 8% 2.5 years Mergers, acquisitions & divestures 5% Source: 175 SAP NW and Enterprise SOA Roadmaps Ele me nta l Links Page: 4 ©2007 Object Management Group
  5. 5. SOA Solutions Categorized Case Studies High X X X X Business-Led Mega • Most successful SOA XX X X Business Sponsorship initiatives are low- XXX XX complexity business driven X X XX X X X X X X Proof of IT-Led Concept Low Low SOA Complexity High Ele me nta l Links Page: 5 ©2007 Object Management Group
  6. 6. Summary: SOA provides business value Common themes and messages across case studies Business Need: ! Profit margin pressure and requirement for lower cost solutions ! More competitors and needed to comply with changing regulations ! Need to increase revenue ! Faster time to market ! Present single view to employees and customers Use Case: ! Implement scalable and adaptable processes ! Develop Governance process and policies ! Create Center of Excellence ! Shorten integration/update cycles ! Create employee and customer portals Results: ! Reduced business process improvement costs and time ! Improve business flexibility through creating fewer, faster business processes ! Reduce business expenses through consolidation and reduced redundancy ! Faster time-to-market for new business solutions ! Reduced development expenses and decreased development time Ele me nta l Links Page: 6 ©2007 Object Management Group
  7. 7. Where SOA Means Business Promoting Business-Driven SOA Case Studies Page: 7 SOA is a Business Strategy ©2007 Object Management Group
  8. 8. Mega Innovating the Customer Experience Transportation Business Need: " Company had different infrastructures from acquisitions, along with redundant business rules across numerous legacy gateway integration solutions " Transform point-to-point infrastructure so various operating companies can function and compete as a joint company " Continue to innovate online customer service to reduce support calls while presenting a consistent experience across acquisitions Use Case: " Mega SOA project to support company’s initiative to transform the IT organization " Implementing first SOA project to enable high-volume customers to verify addresses, print labels, schedule pickups and other services " Multiple services implemented on new SOA infrastructure, using AquaLogic Service Bus as the single point of integration " Center of Excellence to support management of BEA technologies, with SOA Assessment, SOA Workshop, and SOA Foundation Service " Organization and Governance to support versioning strategy and consistent, correct use of services Results: SOA Value Delivered " Flexibility and speed in providing new services to customers and grow higher margin businesses in areas such as Freight and Ground & grow their business overseas " Reduced support costs for supporting fragmented infrastructure for internal/external customers " Easier Ele me nta l Links integration of acquisitions though a common core set of services Page: 8 ©2007 Object Management Group
  9. 9. Business Increase Revenue with Converged Services Telecommunication Carrier in Asia-Pacific Business Need: " Company was facing more competitors and needed to comply with government mandate to capture customer identities for pre-paid mobile services " Improve IT response to business needs so that the carrier could be first to market with new products and services " Change the infrastructure to support faster time to market and convergence, which led them to SOA Use Case: " IT-led project SOA entry point " Building information access services to service enable existing enterprise systems using AquaLogic Data Service Platform, then integrate those services with AquaLogic Service Bus " Reference architecture and transformation services work to support SOA vision " Establish Governance team to oversees services catalogue and provides guidance on service development and reusability Results: SOA Value Delivered " Faster time-to-market for new services " Seamless migration to their convergent system of pre-paid and post-paid customers " Lower maintenance costs " Improved scalability Ele me nta l Links Page: 9 ©2007 Object Management Group
  10. 10. Business Making Business Process More Efficient Pharmaceutical Business Need: " Company wanted to cut $4 billion in costs and improve employee productivity " Accelerate the drug development process by enabling better information sharing and coordination " Provide better visibility and more accurate time-to-market predictions for new drugs going to market " Improve business efficiency by automating and consolidating processes, applications, and systems into one shared platform Use Case: " IT-led project to create a common platform for the Application Service Delivery (ASD) project, to share infrastructure across departments " SOA Organization and strategy developed and ASD reference architecture developed with guidance from BEA " Self-service environment for business units to develop their own portals, using the same common infrastructure and backend, built on WebLogic Portal Results: SOA Value Delivered " Improve visibility into product line resulting in business agility to take pharmaceutical products market " Cost savings and reduced headcount, driving towards $4 billion in savings " Better use of core architecture, improved data integration and management, more reusability " Achieving 99.999% uptime on a stable platform Ele me nta l Links Page: 10 ©2007 Object Management Group
  11. 11. Mega Streamlining Business Operations Telecommunications Carrier in North America Business Need: " Present a unified look and feel to teclecommunication carrier’s internal and external customers, despite the multitude of acquisitions " Dramatically reduce the cost of operations and eliminate duplication of effort enterprise-wide by focusing on the core 400 activities used to run the business " Leverage reusable services with backend systems, based on business rules around the 400 activities Use Case: " Mega project to develop “One” architecture, integrating all backend legacy systems from acquisitions, then abstracting the data using AquaLogic Data Services Platform " 450 applications built on common Infrastructure, used across billing, organization, provisioning and customer care " SOA portal enabling developers to review top services consumed, review library of services, and review tips and tools " Establish Multiple Centers of Excellence, roadmap efforts, training, etc. Results: SOA Value Delivered " Reduced network outages to zero " Stronger focus on strategic initiatives, with only 30% of IT spend on operations (vs. 85% - 95%) " More transparency by masking systems complexity from users " $80 million in value over two years, from improved efficiency, responsiveness, and adaptability of the organization Ele me nta l Links Page: 11 ©2007 Object Management Group
  12. 12. Introducing New Services to Market IT Credit Card Company Business Need: " One of the Latin-America divisions (country) wanted to introduce innovations to market more quickly to counteract competitive threats and provide more value to merchants and member banks " Develop IT infrastructure to support multiple types of transactions on the POS (point-of-sale) network " Open legacy systems and service-enable their existing platform to respond more quickly to business needs Use Case: " Initial IT-led project for creating and implementing the SOA approach " Developed a services gateway to open and connect COBOL-based legacy systems to newer applications, using Tuxedo, WebLogic Integration and WebLogic Server " Enhanced POS network functionality to support cash and card-based bill payment by merchants " Created an Online portal customizable for customers, suppliers and stakeholders, using WebLogic Portal Results: SOA Value Delivered " Shortened project development times and faster time to market – projects that used to take a year to complete now completed in three to six months " Maintaining 30% growth for the next 5 – 10 years and increasing revenue from new products " Higher customer satisfaction " Reduced costs for customers to use services Ele me nta l Links Page: 12 ©2007 Object Management Group
  13. 13. Improve IT Responsiveness North American Wireless Carrier IT Business Need: " Continue to meet business needs throughout M&A activities " Re-vamp IT infrastructure to lower operational costs and support integration of recent and future acquisitions " Build reusable services to make IT predictable and consistent in the delivery of services Use Case: " IT-led project to develop the Enterprise Services Platform (ESP), a central platform supporting all business units leveraging reusable services " Services are to be shared across the enterprise using AquaLogic Service Bus and classifying the services based on taxonomies using AquaLogic Service Registry " First applications migrated to ESP include call center application, digital phone service, and mobile phone provisioning " SOA strategy developed in collaboration with BEA and implemented by a large SI Results: SOA Value Delivered " Lowered mobile phone provisioning costs by 67% due to ESP migration (from $15 to $5) " Reduced cost of third-party development bid by 50% due to SOA environment " Faster development times (hours vs. weeks) due to SOA environment and automated tools created " Anticipated benefits include operational savings for IT development and maintenance and increased IT flexibility due to services reusability Ele me nta l Links Page: 13 ©2007 Object Management Group
  14. 14. Decrease business costs Business First Horizon Case Study Financial Services Business Need: " Operation in 46 states; 13,000 employees " Due diligence on customers as required by Know Your Customer provision of the Patriot Act " Needed an accurate and cost-effective program " Required management tools to monitor and measure the performance of third party service providers participating in the process Use Case: " Automated data collection, quality control, exception handling, and reporting " Created work items for data entry service provider " Data entry into KYC data store was made easy " Ability to experiment with ‘what if’ scenarios and model Results: SOA Value Delivered " Reduced personnel costs associated with manual processing by 40% Ele me nta l Links Page: 14 ©2007 Object Management Group
  15. 15. Improve Customer Satisfaction Business Pratt & Whitney Case Study Transportation Business Need: " Serve half of all the large commercial engines " Engine maintenance accounts for a significant amount of the total maintenance cost " Each engine has 30,000 components—100 of which are required to be actively tracked " Speedy delivery of engine maintenance data " Single point of access to online services Use Case: " Create composite apps using AquaLogic Interaction, Collaboration and Process " Establish granular security rights and personalization to support competing " Customers on the same platform " Organize information around unique engine numbers Results: SOA Value Delivered " Tripled customer satisfaction with largest customers; $500,000 savings per repair Ele me nta l Links Page: 15 ©2007 Object Management Group
  16. 16. Improve Productivity Business AFLAC Inc. Case Study Financial Services Business Need: " Support 69,000 independent insurance agents " Standardize communication with 7,000 employees of varying technical sophistication " Disjointed set of intranets Data spread across multiple back-office systems; not easy to find data when needed " Insurance regulations require tight data security Use Case: " SOA-based MyAflac employee portal unifies, organizes & secures access to data " Simplified new-customer enrollment; automated payment to agents " Employee and agent self-serve functionality replaced many print/mail processes Results: SOA Value Delivered " Productivity up 50%; hard costs down $3.2M/year; call-center activity down 30% Ele me nta l Links Page: 16 ©2007 Object Management Group
  17. 17. Develop new Business Services Mega Pacific Gas & Electric Company Case Study Utilities Business Need: " Serve 15 million people " Drive costs out of operations " Streamline regulatory compliance " Minimal support for customer self- service " CSRs lacked 360 view into customer data " Limited leverage of IT assets; many silos " Proprietary technology; slow change Use Case: " Enterprise-wide SOA supports billing, customer care, automated meter reading, customer self-service, CSR desktop, audit compliance, supply chain integration " Reach, usage and value of legacy assets (e.g., ERP system) extended Results: SOA Value Delivered " Infrastructure costs cut by millions annually; innovative services developed rapidly Ele me nta l Links Page: 17 ©2007 Object Management Group
  18. 18. Service Consolidation Sony Pictures Entertainment Case Study IT Entertainment Business Need: " Operations in 67 countries " Rapidly changing industry (new media, digital content, mobile devices, changing biz models " Integration across platforms and between LOBs " Slow development/change methodology " Ability to support digital studio initiatives " Wireless content distribution Use Case: " SOA infrastructure for Portal Foundation and Application & Integration Foundation " Management of finance, business operations, talent, B2B integration, and assets " New fulfillment systems, new cash-to- contract system, global identity management Results: SOA Value Delivered " 11 rights systems consolidated into one; year-end close accelerated by 50% Ele me nta l Links Page: 18 ©2007 Object Management Group
  19. 19. Business Cost Reductions Business Staples Case Study Retail Business Need: " Manage world’s largest office products company " Communicate with worldwide staff " Ensure positive, consistent customer experience " Mass emails to employees ineffective " Product databases not centralized, synchronized " Reporting systems unwieldy, not scalable, and unable to provide timely information Use Case: " Staples@Work enterprise portal provides unified access to reports, product & promotional information, self-serve HR tools, company news, helpdesk, and more " SOA allows enterprise apps to be service- enabled and presented as portlets " Role-based access for effective security, optimal employee productivity Results: SOA Value Delivered " Saving thousands of hours and millions of dollars monthly across 1,884 locations Ele me nta l Links Page: 19 ©2007 Object Management Group
  20. 20. SOA Governance IBM CIO’s office IT Business Need: : • IBM adopted Service-Oriented Architecture (SOA), to enable better flexibility, increase reuse, and respond quickly to changing business needs, • IBM needed effective policies, processes and tools to capitalize on the potential of SOA across the enterprise. Use Case: : • Assigning decision rights • Implementing measurements and control • Integrating the people, processes, information and assets central to SOA initiatives. Results: • Align IT initiatives with business needs, • Enable business transformation, • Simplify end-to-end enterprise integration, • Maximize the value of its investment in SOA. Ele me nta l Links Page: 20 ©2007 Object Management Group
  21. 21. SOA Governance Driving out costs and improving business agility POC Financial Industry Business Need: " Cross Silo End-to-End Application Business View Diagram Development Internal Clients External Clients " Automated Policy enforcement " Fast response to business requests Development QA Deployment Operations Policies Use Case: Policy requirements Conformance management " Policy Creation Project 1 new business processes " Service Publication and Discovery " Policy Enforcement Project 2 Maintenance Business Business Business Business Business " Policy Management Logic Logic Logic Logic Logic " Policy Storage Project N HR Finance CRM ERP Legacy - Business Services - Governance Results: SOA Value Delivered " Immediate value from Policy Libraries " Continuous enforcement ensures services are built right from day one " Acceleration of the design, development and delivery of new services Ele me nta l Links Page: 21 ©2007 Object Management Group
  22. 22. SOA Governance Business Increasing agility through a governance focus Automobile Manufacturer Business Need: " “We need to increase customer Business View Diagram satisfaction and decrease operation cycle time.” Traceability Predictability " “We need flexible systems to meet ICE Delivery Excellence changing business needs quickly.” Thought Leadership Governance Agility Visibility Use Case: Organizational Impacts Accountability " Adoption of definition of a long-term Mission & ESB Services Organizational SOA technology roadmap Governance Model Vision Model " Leverage of existing skills, knowledge TMS Horizontal Representative Predominantly Business Role Executive TMS Vertical Predominantly IT Role and policies Sponsor Representation Executive Sr, Executive Level / Business and IT Composite Role Sponsor Director Other C-level IT executives ICE Advisory Committee " Organizational changes to support Integration Specialist (s) – ESB Integration Architect (s) – ESB Lead Architect (s) Business Service Analyst (s) ICE Leadership Director Chief TMS Operations Infrastructure Frameworks Data Architect Architect (s) Architect (s) " Active Transition Management based on Service Team Registrar / Business Libratian Service Champion Infrastructure Knowledge & Architect (s) Asset Manager Project TMS Coordinator Security ICE Core Team TMS Horizontal and Vertical IS Organization effective communication Results: SOA Value Delivered ! Improving customer satisfaction (sales and delivery to support cycle) ! Reducing customer data duplication and providing near real time access to vehicle information ! Increasing agility through a governance focus ! driving shared infrastructure and services across the organization ! ease of partner integration (e.g. Dealer access to vehicle or customer information Ele me nta l Links Page: 22 ©2007 Object Management Group
  23. 23. Managing Relationships Business Responsive End-to-End Citizen Self Service Ministry of Transportation and Water Management, PS Business Need: Change in Public Sector " Decreasing budgets require optimized Self Service Permit resource allocation and usage " Public pressure to increase responsiveness to business and citizens Ministry Constituencies " Agility to adopt changing priorities ... Use Case: Self Services for Permits Harbor Entry " Responsiveness to citizens, e.g. ship captains gets permits faster Taxi Permit " Scalable and adaptable process across other permit types " More capabilities for budget allocation to increase overall service Results: SOA Value Delivered " Rapid transformation and reuse of processes and services (e.g. taxi permit, harbor entry license, “any” permit) " Automated process eliminates errors and shorten the response cycles " End-to-end process integration (e.g. financials) on the same platform allows to scale the usage of self services to a significant extent (e.g. 30,000 permits/year to grow up to 800,000 Ele me nta l Links Page: 23 permits/year ©2007 Object Management Group
  24. 24. Managing Relationships Mega 360° customer view of processes and data Standard Bank South Africa Business Need: Change in Banking Enterprise SOA Enables " Retail bank customer mix is more a 360º Customer View demanding while less loyalty " Revenue growth through customer oriented offerings 360° View Use Case: One Customer View across all 360° processes View " Shift from a product focus to a customer centric strategy 360° View " Harmonizing the needs of the customers " Long-term customer relationships Results: Enterprise SOA Value Delivered " Improved customer management (e.g. cross selling, loyalty management through 360º view on customers " Reduced processes complexity by referring only to one central source of customer data – “one version of truth” " Increased stability, adaptiveness and control in changing banking processes Ele me nta l Links Page: 24 ©2007 Object Management Group
  25. 25. Business Process Innovation: Enabling a New Business Model IT GISA GmbH Business Need: Managing Growth Enterprise SOA Enables " Highly competitive market a Shorter Invoice-Cash Cycle " Strong growth strategy until 2011 " Current process of invoice management is not adjusted to support this growth AR Clerk Customer Cash Manager Analyze Use Case: Shorter Invoice Cash Cycle " Reduce Days of Sales Outstanding Invoice Review Authorize Pay Settle (DSO) and improved liquidity " Process efficiency in invoice processing " Improve customer service quality Results: Enterprise SOA Value Delivered " Built on SAP Enterprise Services for electronic bill presentment and payment " Saved process cost through closer customer involvement and streamlined process " Shorter invoice-cash cycle by improved customer services (Access to relevant info) " Rapid implementation (two weeks) " Flexibility to integrate other services, 3rd party systems and to enhance the process Ele me nta l Links Page: 25 ©2007 Object Management Group
  26. 26. Business Process Innovation: Business Evolving from, Product Vendor to Solution Provider Endress & Hauser (IM&C Industry) Business Need: Change in IM&C Enterprise SOA Enables " Product commoditization Extension of the Value Chain " IP and parts piracy threat " Decreased customer loyalty Services Out-tasked (optional) Customer Use Case: Aftermarket Service Opportunity " Regain customer loyalty Asset Lifecycle " New revenue streams Mgmt " Innovative solution offering devices 3rd party devices Results: Enterprise SOA Value Delivered " Centralized asset lifecycle management of E&H and 3rd party devices " Flexible deployment options – out-tasked, customer portal, SAP composite application " 2x revenue growth rate versus market in 2005 " 30% internal cost reduction through standardized architecture and communication Ele me nta l Links Page: 26 ©2007 Object Management Group
  27. 27. Business Process Innovation: Business Process Masters Share Processes Hubert Burda Media (Media Industry) Business Need: Change in Media Enterprise SOA Enables External " Lower print circulation due to internet Usage of the Distribution Value Chain " Higher advertising sales competition " Extensive margin pressure Hubert Burda Use Case: Out-Tasking of Distribution Chain " New revenue streams " Requirement: Cut cost by 20% to reach 3rd Party Publisher competitive pricing Results: Enterprise SOA Value Delivered " Automated processes eliminate high cost manual collaboration " Modularized processes enable flexibility to offer out-tasking " Flexible IT landscape shareable with 3rd party publishers " Stepwise project – first “go live” in only 6 months Ele me nta l Links Page: 27 ©2007 Object Management Group
  28. 28. Mergers and Acquisitions: Business Bringing Acquisitions Online Faster Valero Energy (Oil and Gas) Business Need: Change in Oil and Gas " Limitations on access to reserves and remote Enterprise SOA Enables exploration opportunities Faster Consolidation of Operations " Margin pressure and risk through market Valero volatility Use Case: Shorten Acquisition Cycles " Faster growth and value chain presence by mergers and acquisitions " Minimize business disruption and cost in post merger activities … " Requirement: Shorten post merger integration cycles from 6 months down to 2-8 weeks Acquired Company Results: Enterprise SOA Value Delivered " Flexibility and speed in making changes to business processes, for example customers obtain price information faster at terminals " Business optimization and risk mitigation: accurate real time commercial, financial and profitability data across the value chain " System reliability: simplification of interfaces by duplicate master data reduction Ele me nta l Links Page: 28 ©2007 Object Management Group
  29. 29. Business-Driven SOA Business Building an Interoperable Industry Platform for Public Safety, Security, and Well-being Federal Signal Business Need: Improve Interoperability Integrated Management Console within & across organizations " Meet the emerging mission-critical needs of our customers " Improve collaboration with customers & business units " Provide interoperable industry platform Use Case: Elements of the Platform " Rich User Experience " Data-Driven Architecture " User-Driven Emergency Applications " Low-Cost Deployment and Management Results: SOA Value Delivered " Deliver enhanced functionality, intelligence and interoperability that today’s complex events demand " Provide modular industry platform to build “as-needed” safety and security solutions " API family enables connectivity to Federal Signal products and solutions as well as industry solutions from other providers " Easier integration and support of new products and services with single platform Ele me nta l Links Page: 29 ©2007 Object Management Group
  30. 30. Business-Driven SOA Business Interoperable communications platform that works any time, any place, and with any device Federal Signal Business Need: Fail-safe communication for everyone FS Codespear SmartMsg " Overcome barriers of disparate hardware, communication mediums and native languages " Fully redundant for first responder communications during emergency situations " Bridge communications with other agencies on demand Use Case: Full communications interoperability and alert notification " Leverages/utilizes existing Infrastructure " Real-Time communication across all devices " Targeted mass alert notification " IP-based & highly scalable " Secure & encrypted Results: SOA Value Delivered " Software architecture provides flexibility for quick device updates which allows for faster time- to-market for new solutions " Reduced development expense and time by leveraging modular architecture for enabling all Federal Signal products and services " Messaging interface leverages Federal Signal’s industry platform to communicate Page: 30 with products & services and can be managed via Integrated Management Console Ele me nta l Links ©2007 Object Management Group