SOA and M&A

SOA and M&A – Breakthrough in Merger and Acquisition Practice? David Sprott Presentation made to Enterprise Architecture Conference Europe London, June 2009

Everware-CBDI ,[object Object],[object Object],[object Object],[object Object],[object Object],SAE Knowledgebase Face to Face and Remote Education Skills Certification Skills Certification Skills Certification eLearning Systems Skills Certification

[object Object],[object Object],[object Object]

M&A Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Need to understand characteristics of M&A ,[object Object],[object Object],[object Object],[object Object],Why did eBay buy Skype?

Airline Case ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The de facto airline industry model doesn’t support reservations and loyalty

RBS and ABN AMRO Case ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Early choice of “business systems “ allows rapid but sub optimal decision making

Why M&A often fails to deliver value (rapidly)? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How does SOA help?

Structural Improvement and Portfolio Rationalization Product System ERP Z CRM System 1 CRM System 2 E.G. Multiple sources of customer details SOA facade pattern reduces need to decide on business system futures, allows rapid delivery of converged functionality Product-Based System Y CRM System X E.G. Yet more sources of customer details as result of M&A Consolidation/ Selection process E.G. Single customer details service Hiding implementation complexity Reducing impact of change Service ERP X Process Z Partner A Process Y Standardizing capabilities Information Consistency

Principle Based Process Existing Landscape Existing Landscape Migration And Integration Plan Integrated Business Architecture Drive landscape decisions from logical architecture to develop realistic Service Portfolio Plan Canonical Model Service Portfolio Plan

Canonical Model realized as Business Type Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Type Model facilitates definition of what aspects of business need to be common, what should be variant.; plus domains and domain policy

Layered Service Architecture – Specification View ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Order Fulfillment Service Products Service Orders Service Process Services Core Business Services Underlying Services Utility Services Address Reformatting Service Accounts Receivable API Logistics Service Capability Services Units of Measure Commodity Custom Common reference architecture for merged business is essential

Start with the Core Business and Underlying Solution Model Domain Model Current Systems Model Process Driven Data Centric Bottom Up Order Fulfillment Service Products Service Orders Service Process Services Core Business Services Underlying Services Accounts Receivable API Capability Model Function Driven Logistics Service Capability Services But focus on identifying Data Centric services and linkages to back end systems

Core Business Service Architecture Drives Landscape Analysis ,[object Object],[object Object],[object Object],To drive “useful” landscape analysis Mapping CRUD CRUD CRUD . . . Mapping CRUD CRUD CRUD TERMS Mapping CRUD CRUD CRUD SUPPLIERS Mapping CRUD CRUD CRUD PRODUCTS Mapping CRUD CRUD CRUD ORDERS Mapping CRUD CRUD CRUD CUSTOMERS Existing Interfaces Business Processes Front End Systems Back End Systems Core Business Type Domain Model Current Systems Model Data Centric Bottom Up Products Service Orders Service Core Business Services Underlying Services Accounts Receivable API

Business Architecture ,[object Object],[object Object],Business Platform Business Model AS-IS Business Model TO-BE Business Requirements Business Integration Plan Business Case Business Service Portfolio Business Model AS-IS Use Service Portfolio Plan as bridge between TO-BE Business Model and Business Plan

Perceived SOA Capability Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],There may be strong push back against using SOA as a key tool

Outline M&A Roadmap DUE DILIGENCE FIRST 100 DAYS LONG TERM INTEGRATION SOA Capability Assessment Service Oriented Business Model & Triage Service Portfolio Plan Infrastructure Plan Governance Framework Service Organization SOA Practices Business Process Design Develop roadmap that brings SOA into play immediately. Short term decisions based on “application components” are going to be suboptimal at best Common Infrastructure Integrated EA, Provisioning Integrated Governance Board Integrated Practices in Projects Infrastructure Gateways Priority 1 Integration Common Reference Architecture SOA Coordination Organization

Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Read my report on SOA & M&A – a methodology for managing IT transformation using SOA

Independent Guidance for Service Architecture and Engineering www.cbdiforum.com www.everware-cbdi.com

SOA and M&A

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