Developing an SOA Strategy Jon Plax, salesforce.com Saideep Raj, Accenture Track: IT Executives
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Jon Plax Senior Program Manager, Global Integration Services [email_address] Developing an SOA Strategy Track: IT Executives
What and Why SOA?
Common IT Challenges
Increasing competiveness and rapid change require business agility
Lag time between business needs and IT delivery limits continuous business optimization
Siloed stakeholders and subject matter experts result in long planning and design cycles
IT environments growing more heterogeneous and decentralized
Widespread interdependencies create downstream impacts from changes
Inability to enforce policies system-wide
Processes and data are difficult to monitor or improve
Disconnected activities provide little actionable business intelligence
Poor data quality within and between applications hinders productivity
Constant pressure to lower cost of ownership
Maintenance costs of point-to-point integrations and technologies
Resource-intensive manual processes
The main objective with SOA initiatives is to enable a more agile, flexible and standardized approach to designing, developing and deploying functionality that is often scattered throughout established IT systems. — Gartner, Inc., "Benefits and Challenges of SOA in Business Terms", September 2005
What is Service Oriented Architecture?
A service is a coarsely defined business function, often playing a role in one or more larger business processes, composed of a set of smaller processes or tasks.
Service Oriented Architecture (SOA) is a course of action to align processes, information, and technology with business imperatives by using services as an organizing principle .
SOA is not :
A middleware product
An IT-only initiative
Benefits of SOA
SOA speeds business change. In its core design strategy of packaging applications into business units of work, service orientation reflects and models business processes. As the business changes, developers can more easily map business process changes to applications and then implement the appropriate IT changes.
SOA facilitates business connections. With your business processes packaged as modular, accessible business services, you can connect them where and when they are needed to optimize processes across customers, partners, suppliers, and your own internal applications
SOA enhances business control. Because services model business processes, the flow of data and transactions through service-oriented applications is valuable business data . SOA infrastructure actively manages service flows and can provide flexible and dynamic access to this data, which you can use to analyze and optimize business results and process costs .
-- Forrester, “Your Strategic SOA Platform Vision,” March 2005
Guiding Principles of SOA
Driving to commonality and reuse
Focus on areas of high volatility
Focus on most essential services
Saideep Raj Partner, CRM Global Service Line [email_address] Developing an SOA Strategy Track: IT Executives
SOA: Solving Mission-Critical Business Issues Improve mortgage processing efficiency 20% Requirements and Metrics Process Mortgage Score Application Processes & Segments Conduct Fraud Check Check customer credit Set Up Account Services Data Warehouse CRM System Risk Systems Trading Partners Applications
The SOA trend to SaaS and Composite CRM Accenture CRM Cornerstone Enterprise packages Software as a Service Niche Composite CRM Low High High Low Enterprise Data Density Uniqueness of Business Processes
AppExchange: A key part of an SOA Platform Accenture CRM Cornerstone Enterprise packages Software as a Service Niche Composite CRM Low High High Low Enterprise Data Density Uniqueness of Business Processes
Business Value / TCO Trade-Off Reduction in TCO Business Value Delivered by IT Lower TCO, but loss in differentiated capability Differentiated capability built on common platforms (lower TCO) Custom Apps Packaged Apps Services Composite Apps Ideal
Executive Value of SOA CEO Challenges
Sustainable growth opportunities
Cost structure & performance management
Reduce systems complexity
Improve service reliability
Process excellence and consistency
Improve service culture
Exploit synergies and economies of scale
Simplification on the inside Execution mastery Differentiation on the outside
Different perspectives Systems Integration Technology interoperability; Architecture and Infrastructure Services Standardization Software Engineers Services Layer Standardization of services Reducing code-based integrations Systems Architects Business Analysts Business Activity Monitoring End-to-end process performance monitoring Real-time insight and control of business Business Strategists Business Strategy Bring new products and services to market Improve operational efficiency Increase business value Execute Business Strategy Leverage existing IT Process Designers Business Process Management Quick delivery of new services Quick automation of business processes
Making It Happen Identify Driver (Process/ Integration) Assess Enterprise Architecture Readiness Define SOA Roadmap Strategy Execute SOA Roadmap Govern SOA Journey
Ten Challenges for the CIO
Architectural Standards and Interoperability
Methods and Tools
IT Organization and Enterprise Architecture
Identify Driver (Process/ Integration) Assess Enterprise Architecture Readiness Define SOA Roadmap Strategy Execute SOA Roadmap Govern SOA Journey
Adoption of SOA is an Incremental Journey Phase 1 Phase 2 Phase 3 Phase 4 Organize and Strategize Tactical Implementations Enterprise Service Bus Based Solution and SOA Platform SOA Is Industrialized 0-18 months 18–30 months 30–48 months
The Accenture commitment to SOA “ Accenture Unveils Initiative to Accelerate Innovation in Service-Oriented Architecture New R&D activity part of $450 million commitment to SOA initiative CHICAGO; July 19, 2006 – Accenture (NYSE: ACN) plans to invest $450 million over the next three years to accelerate the growth of its service-oriented architecture (SOA) capabilities. The effort, aimed at helping companies realize the full benefits of service-oriented architecture, …”
Launch of Accenture SOA Commercial Solutions, teaming with Salesforce.com
Unique SOA solutions in development to drive business value in reporting, analytics, sales advice
Industry Vertical solutions planned
Leverage of the AppExchange Platform
Jon Plax Senior Program Manager, Global Integration Services [email_address] Case Study Developing an SOA Strategy Track: IT Executives
SOA Planning Process
Establish a Business and IT Joint Vision
Assemble steering committee
Conduct collaborative requirements gathering
Mutually commit to goals
Define the SOA Roadmap
Top-Down Analysis: Identify key business pain points
Bottom-Up Analysis: Review current technology infrastructure
Prioritize high value-add processes and identify quick wins
Organize modest releases to maximize incremental value
Launch Detailed Analysis
Evaluate enterprise SOA skillset within IT
Define service-enablement architecture
Model high-level services and data structures
Case Study: Business Problem Customer’s business strategy is to Grow and Improve Productivity by focusing on key sales capabilities, streamlining processes and reducing operational overhead… … however, the legacy Systems Architecture made implementation of this strategy Difficult, Costly, and Time Consuming, and all too often the results were less than optimal. INDUSTRY: High Tech EMPLOYEES: 40,000 GEOGRAPHY: Global Fortune 100 Company PRODUCT(S) USED: SFA # USERS: 5000+
Case Study: Legacy Systems Architecture
Case Study: SOA Vision
Improved responsiveness to business initiatives
Loose coupling reduces vendor lock-in
Lower Implementation Costs
Common services provide rich features such as governance and monitoring capabilities
New composite applications reuse existing business services
Lower Operational Costs
Simplify existing architecture (300+ systems, databases, and point to point connections)
Centralize data quality management
Minimize resource-intensive manual processes
Case Study: SOA Principles in Action
Enterprise-wide IT planning framework
Business-prioritized portfolio management process
Strict project lifecycle management
Best technologies for Data, Process, and Presentation
Business Value Roadmap
Case Study: Enterprise IT Planning Framework
Fixed asset management
Hire to develop / develop to retire
Strategy and planning
Brand / Identify management
Knowledge management / intellectual capital
Product Design Support the Business Value Chain Marketing Quote To Cash Fulfillment Customer Support
Case Study: Business Value Roadmap Reliability, Availability, Scalability Single Sign On Integrated Data Model Application Integration Segmented and Personalized Info Delivery Federated Access Management Business Process Management Workflow/ Business Rules COMPLEXITY BUSINESS VALUE PLATFORM SERVICES TECHNOLOGY SERVICES BUSINESS SERVICES
Case Study: Services Architecture Vision External Interface Business Processes (BPM) Services (SOA) salesforce.com Custom Data Sources Operational Datastore Enterprise Data Warehouse Data Access Layer Quality and Enrichment Security Monitoring Sales Portal Rich User Interface Salesforce .com B2B Process Process Rules Mobile Synchronization Connectivity and Authorization Metadata
Case Study: SOA Pilot Overview
Objective: Prove the benefits of SOA and the underlying technology in the real world.
Problem Domain: Customer data was distributed across many systems. Sales reps had limited visibility and could create new accounts freely, resulting in duplicate records and sales activity.
Goal: Enable and require sales reps to effortlessly search the global account universe before creating new accounts.
Case Study: SOA Pilot Analysis and Design
Search for Duplicates Before Creating Account
Create/Update Account in salesforce.com
Create/Update Account in Account Framework
Account Master Framework
Dunn & Bradstreet
TIBCO Service Bus
J2EE Web Server
Search Customer Accounts Universe
Search Partner Account Universe
Create New Account
Validate New Account
Assign Account Owner
Override “New Account” button in Salesforce.com (Winter ’07)
Punch out to on premise J2EE Web Application
Invoke services on SOA bus
Execute operations on underlying systems
Case Study: SOA Pilot Solution Architecture
Case Study: Results
“ SOA has become a key strategy to reduce implementation and maintenance costs as well as increase agility.”
Business Alignment and Agility
SOA fit the intersection between a business need and an IT strategy
Account services defined in terms of business functions
Service layer hides underlying complexity from consumers
Existing applications don’t go away – but can consume and provide services
Pilot application is under development; target go-live in December
Longer term plan aligned with Business Value Roadmap
SOA is not a technology, but a process for aligning business objectives, technology assets, and IT activities in a way that maximizes incremental improvement , flexibility , and reuse .
Initiating SOA requires understanding the business value of services and combining top-down and bottom-up methods of analysis.
SOA solutions favor technologies emphasizing process focus , agility , loose coupling , and interoperability .
AppExchange eases SOA integration through a standards-based web services API , effortless meta-customization , and sophisticated presentation layer compositing .
Saideep Raj Partner, CRM Global Service Line Jon Plax Senior Program Manager, Integration Services QUESTION & ANSWER PERIOD Accenture salesforce.com Developing an SOA Strategy Track: IT Executives
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