Dc OCFO SOA/ESB Success Story - FTA 2010


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Dc OCFO SOA/ESB Success Story - FTA 2010

  1. 1. DC OCFO’s ESB Success Story Mike Teller, DC OCFO Chief Information Officer Jim Hightower, Tax Systems Group Director
  2. 2. Agenda 1. Business Drivers 2. Technical Challenges 3. The Vision: Service Oriented Architecture 4. The Solution: Enterprise Service Bus 5. Implementation: DC OCFO’s ESB Applications 6. Future: Lesson Learned; Leveraging ESB foundation
  3. 3. Business Drivers <ul><li>DC Legislation - “City Clean Hands” </li></ul><ul><ul><li>Deny District licenses and permits for customers possessing </li></ul></ul><ul><ul><li>aggregate debt greater than $100.00 </li></ul></ul><ul><li>Revenue Pressures </li></ul><ul><ul><li>Reduce program costs and raise Compliance revenues </li></ul></ul><ul><li>Fraud </li></ul><ul><ul><li>Reduce cost of refund cheats </li></ul></ul><ul><li>Reduce Tax Administration and IT Costs </li></ul><ul><ul><li>Increase transparency of tax debt </li></ul></ul><ul><ul><li>Increase transparency of IT processes – “Tame the complexity” </li></ul></ul><ul><ul><li>Ensure tax data security </li></ul></ul>
  4. 4. Technical Environment
  5. 5. Technical Challenges
  6. 6.
  7. 7.
  8. 8. The Vision <ul><li>What Was Needed? </li></ul><ul><ul><li>Loosely Coupled Systems </li></ul></ul><ul><ul><li>Reusable Code </li></ul></ul><ul><ul><li>Service Oriented Architecture </li></ul></ul><ul><li>Why? </li></ul><ul><ul><li>Expand Tax Data Access while Maintaining Security </li></ul></ul><ul><ul><li>Increase Fraud Detection and Prevention Without Increasing </li></ul></ul><ul><ul><li>Workforce </li></ul></ul><ul><ul><li>Reduce Costs to Implement and Maintain Automated Interfaces </li></ul></ul>
  9. 9. The Solution – An Enterprise Service Bus Source: SYSNET International Inc <ul><ul><li>Forrester Research defines an ESB as “ An intermediary that provides core functions to make a set of reusable services widely available, plus extended functions that simplify the use of the ESB in a real-world IT environment.” </li></ul></ul>
  10. 10. Core Functions of the ESB <ul><li>Support of multiple protocols </li></ul><ul><li>Protocol conversion </li></ul><ul><li>Data transformation and data-based (content-based) routing </li></ul><ul><li>Lightweight Orchestration </li></ul><ul><li>Support of multiple standard business file formats </li></ul><ul><li>Support for both synchronous and asynchronous operations </li></ul><ul><li>Integrated security features </li></ul><ul><li>Error handling mechanism </li></ul>
  11. 11. ESB Applications Implementations
  12. 12. <ul><li>Business Need: </li></ul><ul><ul><li>Returns for refunds had no SSN validity check. </li></ul></ul><ul><ul><li>Strapped returns processing staff had no capacity to </li></ul></ul><ul><ul><li>validate. </li></ul></ul><ul><ul><li>Thousands of questionable refunds mailed each year. </li></ul></ul><ul><li>Challenge: </li></ul><ul><ul><li>Mainframe to Oracle D/W in “right time”. </li></ul></ul>Automated Fraud Prevention
  13. 13. <ul><li>Solution: </li></ul><ul><ul><li>Use the ESB and expose a web service to the </li></ul></ul><ul><ul><li>mainframe DB2. </li></ul></ul><ul><li>Benefit: </li></ul><ul><ul><li>Process implemented in 4 weeks; just in time for 2008 Filing </li></ul></ul><ul><ul><li>Season. </li></ul></ul><ul><ul><li>Appx.1 /3 development time (reduces costs) </li></ul></ul><ul><ul><li>In first year thousands of questionable refunds identified; </li></ul></ul><ul><ul><li>Approximately $5.3M in fraudulent returns. </li></ul></ul><ul><ul><li>Strong fraud deterrent message sent to the community. </li></ul></ul>Automated Fraud Prevention
  14. 14.
  15. 15. Automated Fraud Prevention
  16. 16. <ul><li>Business Need: </li></ul><ul><ul><li>DC tax office requirement that all employers with over 50 employees submit employee W2 information electronically. </li></ul></ul><ul><ul><li>Current manual process to load CDs no longer viable </li></ul></ul><ul><li>Challenge: </li></ul><ul><ul><li>Substantial security and transparency risk </li></ul></ul>Employer Submission of W2 Data
  17. 17. <ul><li>Solution: </li></ul><ul><ul><li>Enable businesses to enter their W2 data or submit files online </li></ul></ul><ul><ul><li>Use the ESB to load the data to the tax data warehouse. </li></ul></ul><ul><li>Benefit: </li></ul><ul><ul><li>Eliminates FTP processing for over 1,000 files </li></ul></ul><ul><ul><li>Provides audited workflow -increases transparency </li></ul></ul><ul><ul><li>Provides submission status - increases transparency </li></ul></ul><ul><ul><li>Guarantees data delivery </li></ul></ul><ul><ul><li>Significantly reduces cost and increases data security </li></ul></ul>Employer Submission of W2 Data
  18. 18. Employer Submission of W2 Data ESB Components Audit Data
  19. 19. <ul><li>Business Need: </li></ul><ul><ul><li>DC Council Mandate – Enable agencies to maintain and access up-to-date debt information. </li></ul></ul><ul><ul><li>Deny licenses and permits for customers possessing an aggregate debt > $100. </li></ul></ul><ul><li>Challenge: </li></ul><ul><ul><li>Original solution more and more costly and time-consuming to maintain. </li></ul></ul><ul><ul><li>Most agencies lacked technical expertise so did not participate </li></ul></ul><ul><ul><li>Agencies pushed paperwork to the tax office for manual compliance </li></ul></ul>City Clean Hands
  20. 20. <ul><li>Solution: </li></ul><ul><ul><li>ESB Debt Data Update </li></ul></ul><ul><ul><li>ESB Compliance Check </li></ul></ul><ul><li>Benefit : </li></ul><ul><ul><li>More agencies providing debt data, increasing DC revenue collections. </li></ul></ul><ul><ul><li>Cost to implement additional debt data feeds significantly reduced. </li></ul></ul><ul><ul><li>At least 3 tax office resources freed up to work on much needed revenue initiatives. </li></ul></ul><ul><ul><li>Significantly shortens procurement elapsed times </li></ul></ul>City Clean Hands
  21. 21. City Clean Hands – Debt Data Update ESB Components Polling for files
  22. 22. City Clean Hands – Compliance Check ESB Components Decision Making
  23. 23. Sonic ESB Lightweight Orchestration GUI
  24. 24. DC OCFO ESB Applications
  25. 25. <ul><li>Services are not completely “discreet” and do not fully embrace the concept of abstraction </li></ul><ul><ul><li>The Transmitter Service for Employer W2 combines functions, violating SOA principle of discreteness </li></ul></ul><ul><ul><li>The Database Service contains application-specific SQL, violating SOA principle of abstraction </li></ul></ul><ul><ul><li>Each source and target app should have its own set of app-specific web services </li></ul></ul><ul><ul><li>Lack of governance </li></ul></ul>Lessons Learned
  26. 26. Future Implications <ul><li>Enables loosely-coupled systems architecture </li></ul><ul><li>Facilitates management of reusable services </li></ul><ul><li>Guarantees data delivery </li></ul><ul><li>Supports configurable process workflow (Lightweight Orchestration) </li></ul><ul><li>Reduces maintenance costs </li></ul><ul><li>Increases data security </li></ul><ul><li>Positions the District for the replacement of 2 major revenue </li></ul><ul><li>systems with COTS products </li></ul>The District’s implementation of these initial ESB services and processes substantiate the advantages of an ESB.
  27. 27. DC OCFO’s ESB Success Story