Soa Recession Conference 0309

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Is SOA a means for Leveraging Business development in Recession? their is no one answer fits all. The presentation analyses the factors determining if SOA implementation should be accelerated or delayed

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  • Soa Recession Conference 0309

    1. 1. Is SOA a means for Leveraging Business development in Recession? Avi Rosenthal Blog: http :// avirosenthal . blogspot . com / Business Analysts Conference 23 March 2009 Kfar Hamakabia Ramat-Gan Israel
    2. 2. Presentation Goals <ul><li>Analyzing Current SOA status </li></ul><ul><li>Understanding factors influencing SOA roleout during Recession </li></ul>
    3. 3. Speaker’s Qualifications <ul><li>15 Years experience as consultant </li></ul><ul><li>Technologies and Architectures Consultant for 35+ organizations </li></ul><ul><li>Participated in Consulting assignments behalf of Leading Analysts companies </li></ul><ul><li>20 years of experience as CTO, Technical Manager and Technical Expert </li></ul><ul><li>Moderator of the SOA Forum of The Israeli Association of Information Processing </li></ul><ul><li>Assessed software products initiatives behalf of VCs </li></ul>
    4. 4. Presentation Agenda <ul><li>SOA Current Status </li></ul><ul><li>SOA Value in Nutshell </li></ul><ul><li>IT Trends in Recession periods </li></ul><ul><li>SOA directions in Recession periods </li></ul><ul><li>Summary </li></ul>
    5. 5. Presentation Agenda <ul><li>SOA Current Status </li></ul><ul><li>SOA Value in Nutshell </li></ul><ul><li>IT Trends in Recession periods </li></ul><ul><li>SOA directions in Recession periods </li></ul><ul><li>Summary </li></ul>
    6. 6. SOA is Dead Anne Thomas Manes <ul><ul><li>Long Live Services </li></ul></ul>
    7. 7. ebizQ SOA Market Pulse 2008 Source: ebizQ
    8. 8. ebizQ SOA Market Pulse 2008: number of SOA based efforts Source: ebizQ
    9. 9. ebizQ SOA Market Pulse 2008: SOA Scope Source: ebizQ
    10. 10. ebizQ SOA Market Pulse 2008: SOA penetration Source: ebizQ
    11. 11. ebizQ SOA Market Pulse 2008: Precent of IT budget 2008 Source: ebizQ
    12. 13. SOA penetration in Israel <ul><li>IDC Israel, Information Systems Managers survey Q208 </li></ul><ul><li>Full assimilation 3% </li></ul><ul><li>Partial assimilation 14% </li></ul><ul><li>Plan to begin SOA initiative this year 10% </li></ul><ul><li>Plan to begin SOA initiative in the future 22% </li></ul><ul><li>Do not plan to implement SOA 51% </li></ul>Source: IDC Israel
    13. 14. Current Status - Summary <ul><li>More than 50% start their SOA initiatives </li></ul><ul><li>No clear indication of stage of SOA initiative </li></ul><ul><li>Different SOA definitions </li></ul><ul><li>If Web Services are defined as SOA then survey results shows deeper penetration </li></ul><ul><li>Multiple SOA initiatives in an enterprise </li></ul><ul><li>SMBs and Large Enterprises differences </li></ul><ul><li>Only few enterprises are in final stages of implementation </li></ul><ul><li>Less penetration in Israel </li></ul>
    14. 15. Presentation Agenda <ul><li>SOA Current Status </li></ul><ul><li>SOA Value in Nutshell </li></ul><ul><li>IT Trends in Recession periods </li></ul><ul><li>SOA directions in Recession periods </li></ul><ul><li>Summary </li></ul>
    15. 16. SOA Value Proposition <ul><li>Business and IT alignment </li></ul><ul><li>Reuse </li></ul><ul><li>Flexibility, Adaptability, Agility </li></ul><ul><li>Improved Processes </li></ul><ul><li>Reduced maintenance &development costs </li></ul>Two types of SOA Value propositions: Profitability Value drives, Flexibility value Drives
    16. 17. Justification <ul><li>Business (70%-80%) IT (20%-30%) </li></ul><ul><li>Cascading effects </li></ul><ul><li>Reuse </li></ul><ul><li>Agility </li></ul><ul><li>Productivity </li></ul>Postponing the SOA initiative could negatively influence the company’s competetive position
    17. 18. Presentation Agenda <ul><li>SOA Current Status </li></ul><ul><li>SOA Value in Nutshell </li></ul><ul><li>IT Trends in Recession periods </li></ul><ul><li>SOA directions in Recession periods </li></ul><ul><li>Summary </li></ul>
    18. 19. IT Strategy Celent <ul><li>Get Bigger </li></ul><ul><li>Increase revenues </li></ul><ul><li>Get Leaner </li></ul><ul><li>Reduce costs </li></ul><ul><li>Get Smarter </li></ul><ul><li>Improve data and systems usage </li></ul>Strategy is frequently based on those 3 elements. Elements mix is changed during Recession
    19. 20. IT Strategy in Recession <ul><li>Reduce human resources costs </li></ul><ul><li>cut salaries, reduce work hours per employee, dismiss from jobs </li></ul><ul><li>Focusing on must to do </li></ul><ul><li>Reduce Software and Hardware acquisitions </li></ul><ul><li>Decrease and stop Development Projects </li></ul><ul><li>SOA? Less tolerance for SOA failures </li></ul><ul><li>efficiency </li></ul><ul><li>improved processes, improved systems </li></ul><ul><li>Focus on Short Term ROI </li></ul>
    20. 21. IT in Recession - Considerations <ul><li>Lost skills </li></ul><ul><li>Recovery after Recession </li></ul><ul><li>Positioning after Recession </li></ul><ul><li>How to increase effciency without harming the Business and the IT department? </li></ul><ul><li>Merging and acquisitions </li></ul><ul><li>Recession catalyzing merges and acquisitions </li></ul><ul><li>New regulations </li></ul><ul><li>Recession catalyzing new regulations </li></ul>
    21. 22. IT in Recession - Coping <ul><li>Form a Cost Cutting team ASAP </li></ul><ul><li>Auditing by non-IT expert </li></ul><ul><li>Goals: </li></ul><ul><ul><li>Enterprise wide savings (not IT only savings) </li></ul></ul><ul><ul><li>Visibility </li></ul></ul><ul><li>Short reporting cycle </li></ul>
    22. 23. IT in Recession - Savings <ul><li>Check contarcts with Vendors & Integrators </li></ul><ul><li>Minimize Hardware and Software redundencies </li></ul><ul><li>Cancel unnecessary services </li></ul><ul><li>Reduce Operational Costs </li></ul><ul><li>Purchasing only what you must </li></ul><ul><li>Storage, Analytical BI, Virtualization, </li></ul><ul><li>Security (Data, End Points), Cloud Computing </li></ul>
    23. 24. IT in Recession – How much to cut off? Companies should tighten their belts, not take their pants off. Andrew Reichman, senior analyst, Forrester Research
    24. 25. Presentation Agenda <ul><li>SOA Current Status </li></ul><ul><li>SOA Value in Nutshell </li></ul><ul><li>IT Trends in Recession periods </li></ul><ul><li>SOA directions in Recession periods </li></ul><ul><li>Summary </li></ul>
    25. 26. 60 Seconds on how not to implement SOA <ul><li>No IT & Business alignment </li></ul><ul><li>No adequate Governance </li></ul><ul><li>VDA </li></ul><ul><li>Big Bang </li></ul><ul><li>Ignoring Maturity </li></ul><ul><li>Without Consulting </li></ul><ul><li>A Project instead of an Architecture </li></ul>SOA principles as described above are destinated for failure and termination especially during Recession
    26. 27. Enterprise Architecture (EA) <ul><li>A means for saving </li></ul><ul><li>Leveraging current assets for better future operatrions </li></ul><ul><li>Savings by elimination of redundancies </li></ul><ul><li>Savings by corelation between strategy and applications inventory </li></ul><ul><li>Investing in Architecture is an opportunity for SOA implementation </li></ul>SOA is a type of an Enterprise Architecture
    27. 28. SOA adoption Stages Setup Experiencing expansion Exploitation Enterprise SOA Non-programmatic Preparations Pilot Integration. BPM Management Dynamic Fabric
    28. 29. SOA in Recession Leverage or decelerate - SOA Stage <ul><li>Enterprise SOA  + </li></ul><ul><li>Most of the resources were already invested. Reuse based and other benefits could be realized </li></ul><ul><li>Exploitation  + </li></ul><ul><li>large amount of resources investment had been done. Consider defering some investments. Reuse based and other benefits could be realized. </li></ul><ul><li>Expansion  ? + </li></ul><ul><li>Significant investment had been done. Consider defering some infrastructure investments. Reuse based and other benefits could be realized. </li></ul>
    29. 30. SOA in Recession Leverage or decelerate - SOA Stage (2) <ul><li>Experiencing  X ? </li></ul><ul><li>Few resources were already invested. Depends upon Organization positioning. Proof of quick Value required. Should the organization move to next steps? </li></ul><ul><li>Pilot  X ? </li></ul><ul><li>Stop? Complete Pilot and stop? Error prone process is unacceptable </li></ul>
    30. 31. Factors determining leveraging or decelarating SOA <ul><li>Organizational Maturity Get Smarter </li></ul><ul><li>Pain Points which could be addressed by SOA Get Smarter </li></ul><ul><li>SOA Initiative Management Get Smarter </li></ul><ul><li>Merge or Acquisition is expected? Get Bigger </li></ul>
    31. 32. Factors determining leveraging or decelarating SOA(2) <ul><li>Long Term planning Get Bigger </li></ul><ul><li>Innovations Get Smarter </li></ul><ul><li>Virtual Enterprise Get Smarter, Get Leaner, Get Bigger </li></ul><ul><li>Risk Management Get Smarter </li></ul>
    32. 33. Do Less SOA with More <ul><li>Available budget -> Start a SOA implementation </li></ul><ul><li>Oops … error -> Start again </li></ul><ul><li>Multiple concurrent SOA projects </li></ul><ul><li>Large number of Services </li></ul>The Result: unsuccessful SOA initiative
    33. 34. Do More SOA with Less <ul><li>A SOA Initiative. No money -> Wait </li></ul><ul><li>What to do while waiting -> planning </li></ul><ul><li>A focused and planned endevour </li></ul><ul><li>Measurable benefits </li></ul>The result: Successful SOA implementation
    34. 35. Q&A For additional information http :// avirosenthal . blogspot . com /

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