Defining The Value Of Integration

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Defining The Value Of Integration

  1. 1. David S. Linthicum www.davidlinthicum.com david@davidlinthicum.com Defining the Value of Integration
  2. 2. Session Description • The central notion of integration is to create an enterprise that can effectively exchange information and behavior to drive core business processes. While integration is a known science, the business value of integration is something that most have not yet defined, but is critical to the success of any ongoing SOA or integration effort. Indeed, most will find that the value of integration is very high, as is the strategic ability for IT to align effectively with the business. • In this keynote presentation we’ll understand the core concepts around integration, including how it meshes with SOA and enterprise architecture. Moreover, we’ll provide an approach to defining the value of integration, step-by-step. From the alignment with business, to the ongoing efficiencies that integration provides.
  3. 3. New Book 3
  4. 4. So, Why Integration and SOA? • Improved Adaptability and Agility – Respond to business needs in near real-time • Functional Reusability – Eliminate the need for large scale rip and replace • Independent Change Management – Focus on configuration rather than programming • Interoperability instead of point-to-point integration – Loosely-coupled framework, services in network • Orchestrate rather than integrate – Configuration rather than development to deliver business needs
  5. 5. The Value Proposition of a SOA • We implement SOA for two major reasons. – First is the ability to save development dollars through reuse of services. – Second is the ability to change the IT infrastructure faster to adapt to changing needs of the business, or agility. – Enhance, not replace, existing EA. (More on this later)
  6. 6. SOA Meta Model Monitoring/Event Management Process/Orchestration Governance Security Services Data Services/Messaging Data Abstraction Data Data Rep Legacy Legacy New Services Copyright 2007 The Linthicum Group, LLC
  7. 7. The Economics of Integration The Relative Costs of Different Integration Approaches Custom Integration Relative Costs Initial Costs Customization Maintenance Changes Copyright (C) 2002 ZapThink, LLC 7
  8. 8. The Economics of Integration The Relative Costs of Different Integration Approaches Custom Integration Traditional EAI, B2Bi Relative Costs Initial Costs Customization Maintenance Changes Copyright (C) 2002 ZapThink, LLC 8
  9. 9. The Economics of Integration The Relative Costs of Different Integration Approaches Custom Integration Traditional EAI, B2Bi Web Services quot;Adaptersquot; Relative Costs Initial Costs Customization Maintenance Changes Copyright (C) 2002 ZapThink, LLC 9
  10. 10. The Economics of Integration The Relative Costs of Different Integration Approaches Custom Integration Traditional EAI, B2Bi Web Services quot;Adaptersquot; Service-Oriented Integration Relative Costs Initial Costs Customization Maintenance Changes Copyright (C) 2002 ZapThink, LLC 10
  11. 11. The Economics of Integration The Relative Costs of Different Integration Approaches Custom Integration Traditional EAI, B2Bi Web Services quot;Adaptersquot; Service-Oriented Integration Relative Costs Initial Costs Customization Maintenance Changes Copyright (C) 2002 ZapThink, LLC 11
  12. 12. How to Determine ROI
  13. 13. Reuse…Yes Again • Under the concept of service reuse, we have a few things we need to determine to better define the value. These include: – The number of services that are reusable. Complexity of the services. The degree of reuse from system to system. • The number of reusable services is the actual number of new services created, or, existing services abstracted, that are potentially reusable from system to system. • The complexity of the services is the number of functions or object points that make up the service. • Finally, the degree of reuse from system to system is the number of times you actually reuse the services. We look at this number as a percentage. Copyright 2007 The Linthicum Group, LLC
  14. 14. So, What do you Do? • In order to determine their value we must first determine the Number of Services that are available for Reuse (NSR), the Degree of Reuse (DR) from system to system, as well as the Complexity (C) of each service. • The formula to determine value looks much like this: Value = (NSR*DR) * C Copyright 2007 The Linthicum Group, LLC
  15. 15. SOA=Agility • Agility is a strategic advantage that is difficult to measure in hard dollars, but not impossible. We first need to determine a few things about the business, including: • The degree of change over time is really the number of times over a particular period that the business reinvents itself to adapt to a market. • The ability to adapt to change is a number that states the company’s ability to react to the need for change over time. • Finally, the relative value of change is the amount of money made as a direct result of changing the business.
  16. 16. Case Study: ABC Corp • Description: Very simple trading system supporting trade clearing for a private exchange. • (NSR)The number of services that are reusable = 10 (low number relative to industry) (C)Complexity of the services = 50 (object points, low number relative to industry) (DR)The degree of reuse from system to system = 20% (low number relative to industry) • So, considering our formula for reuse: Value = (NSR*DR) * C Value = (10*.2) * 50 Or Value = 100 • When considering best practices, any number over 100 is considered in the zone where reuse will clearly bring at least some ROI, so considering that the assumptions are correct, the value of reuse for this project is right on the border. However, keep in mind that’s but a single metric. 16
  17. 17. Case Study: ABC Corp • However, considering the formula for agility: – The degree of change over time = 7. Change is moderate to high, based on the industry and the state of the business. – The ability to adapt to change = 8. The ability for the staff to adapt to change is moderate to high. – Relative value of change = 8. The value to align the architecture with emerging business opportunities is moderate to high. Thus, the average number (7+8+8)/3 = 7.66 • It’s considered that a score of over 5 in this analysis indicates that the company will benefit from an agile IT architecture…the higher the score above 5, the more the benefit. Clearly, agility is a key value for ABC Corp, and thus the company will befit greatly from an architecture that supports it. 17
  18. 18. How to Approach Integration and SOA
  19. 19. How Do you Build A SOA? Test and evaluate SOA solution. Deploy SOA technology. Select your technology set. Define new processes. Define new services. Understand all processes. Understand all services. Understand all application semantics. Define your problem domain. Understand your business objectives and define success.
  20. 20. Understand your business objectives and define success. ROI Define ROI Business Case Create Business Case Copyright 2007 The Linthicum Group, LLC
  21. 21. Domain Descriptions Define your problem domain System Descriptions System Complexity Analysis POC Results SOA POC Vendors
  22. 22. Understand all application semantics in your domain. SOA Legacy Metadata Metadata Meta data analysis Data Abstraction External Data abstraction Layer Metadata layer definition (B2B) Data Services Data services definition
  23. 23. SOA Metadata Understand all services in your domain. Candidate Legacy Services Services Service analysis Services And External Metadata and Information Services services analysis (B2B) Services And Performance Performance analysis
  24. 24. Understand all processes in your domain. SOA Metadata Candidate Processes Process analysis. Candidate Services Processes, Services, Define metadata, services, And and processes Information External Process Processes Integration (B2B) Process integration Diagrams analysis.
  25. 25. Processes, Services, And Information Candidate Services Define new services. Service Definition SOA Service definition. Metadata Service Candidate Design Processes Service design. Service Implementation Process Integration Service implementation. Diagrams
  26. 26. Processes, Services, And Information Candidate Services Define new processes. Process Definition Metadata Process definition. Process Candidate Design Processes Process design. Process Implementation Process Integration Process implementation. Diagrams
  27. 27. Select your technology set. Technology Requirements Define requirements. Define candidate technology. Technology analysis. Technology solution Technology selection. Technology validation. Vendors
  28. 28. Finding Value in Cloud-to- Enterprise Integration Copyright 2007 The Linthicum Group, LLC
  29. 29. Understand Outside Interfaces SOA Finance/ Operations Sales Order Update New Accounts Commission Calculation Data Cleaning Sales Best Practices as Shared Processes Copyright 2007 The Linthicum Group, LLC
  30. 30. Understanding the Problem • Cloud services must integrate with existing enterprise systems to become more valuable. • However, existing internal integration needs to exist to ensure: – Production and consumption of structured information – Semantic mediation – Security mediation – Service enablement – Firewall management – Transactional integrity – Holistic management of complete integration chain
  31. 31. Getting Ready • So, how do you prepare yourself? I have a few suggestions: – First, accept the notion that it's okay to leverage services that are hosted on the Internet as part of your SOA. Normal security management needs to apply, of course. – Second, create a strategy for the consumption and management of outside-in services, including how you'll deal with semantic management, security, transactions, etc. – Finally, create a proof of concept now. This does a few things including getting you through the initial learning process and providing proof points as to the feasibility of leveraging outside-in services.
  32. 32. Remember, there are a few technical issues that you must address… • Semantic and metadata management, or, the management of the different information representations amount the external services and internal systems. • Transformation and routing, or, accounting for those data differences during run time. • Governance across all systems, meaning, not giving up the notion of security and control when extending your SOA to the global SOA. • Discovery and service management, meaning, how to find and leverage services inside or outside of your enterprise, and how to keep track of those services through their maturation. • Information consumption, processing, and delivery, or, how to effectively move information to and from all interested systems. • Connectivity and adapter management, or, how to externalize and internalize information and services from very old and proprietary systems. • Process orchestration and service, and process abstraction, or, the ability to abstract the services and information flows into bound processes, thus creating a solution Copyright 2007 The Linthicum Group, LLC
  33. 33. Final Thoughts • EA is an evolving discipline. New notions and business events will drive EA activities going forward. • EA=SOA and SOA=EA. We have a tendency to forget that. The “A” in SOA is architecture. • Learn how to see beyond the SOA hype, and make sure to understand your own business issues. • Accept the emerging Web (cloud computing) as a resource that is to be leveraged for the good of the company. There will be much change here. • The enterprise architect should drive change for the good of the company. However, never “manage by magazine.” • It is the most exciting time for enterprise architects. Opportunities are plentiful, but so are pitfalls. • The lines are blurring between enterprise applications and the emerging cloud computing platforms. There is a fundamental shift in how we deploy and manage enterprise applications and services going forward. Copyright 2007 The Linthicum Group, LLC
  34. 34. Thanks! david@davidlinthicum.com • Blogs: – InfoWorld “Real World SOA” – Intelligent Enterprise – eBizq.net • Weekly Podcasts – InfoWorld SOA Report – Cloud Computing Podcast • Columns – SOA Journal – Cloud Computing Journal – eBizq.net – Align Journal – Government Computer News • Follow me on Twitter (DavidLinthicum)

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