High Return SOA Strategies: Realizing the Potential of SOA
1. <Insert Picture Here>
High Return SOA Strategies:
Realizing the Potential of SOA
DR Donald Mowbray
Director, Emerging Technologies,
Oracle Europe Middle East & Africa
2. Agenda
• IT Priorities <Insert Picture Here>
• State of SOA
• Path to SOA Success
• Oracle’s SOA Offerings
• Next Steps
3. IT Priorities
Shift beyond simply Cost Cutting to prepare
for driving Growth & Innovation
Guarantee
Growth Service Level Cost
New Products & Services Self Service
Optimize Value Chain Automation
Customer Intimacy Consolidation
4. IT Viewed as Strategic to Business Success
More CIOs Report to CEOs than Before
Source: CIO Magazine, 2009
5. Demand For IT To Improve Processes
Increases In Downturn
44%
Rising; business units need
help to automate and
improve processes
40%
Staying the same
16%
Dropping; there are fewer
new projects being
requested or approved
Source: Information Week; Outlook 2009
6. BPM & SOA Deliver Operational Efficiencies
Order Management Process
Shared Services
Customer Partner Production Inventory
Update Onboarding Planning Order Entry Management Billing
SOA Infrastructure
MAINFRAME
7. Real Success, Proven Results with Oracle
Growth & Cost
Innovation Reduction
Integrate 11 acquisitions and build new 35% reduction in recurring maintenance and
business of bundling services with products support costs
Sale have blossomed from $1.8 million in 1999 “Agile SOA Methodology” delivers “quote to
to $834 million in 2008 contract” automation in < 6 months
Increased customer satisfaction from Saved 60%+ of typical integration costs
47% to 82%
8. Path to SOA Success
Improve Productivity Reduce Integration Costs Manage Growth with
Governance
Challenges Challenges Challenges
• Multiple Tools Sets • Costly custom integrations • Measuring Impact Analysis
• Multiple Container • Customization of existing • Managing SLAs
Deployment and processes
• Change Management
Management • Limited access to business
services
10. Imagine if . . .
Application assembly was as easy as connecting hardware
Wireless Internet Video Camera
High Performance
22” Widescreen LCD Monitor Color Laser Printer
Ergonomic, wireless keyboard
Wireless Ergonomic Mouse
1TB USB Hard Drive
11. Assembling Composite Applications
Simplified Development Environment
• Rapid, Standards-based Development
Mediation Web services
and adapters
SCA Composite
Editor
BPEL orchestration
Human
Tasks Spring /Java
Business Rules
Unified Customization
Unified Packaging & Lifecycle
Unified DT and RT Metadata
Unified Design Time
Rules Editor Process Editor Routing Editor
12. Unified Service Platform
Reduces Infrastructure Complexity
Application
Service Assembly, Orchestration composers
Repository Business Human
Mediator BPEL IDE
Rules Workflow
BAM 11g Service Infrastructure
Common JCA-based connectivity infrastructure Policy Manager
Optimized
binding
B2B Oracle Service Bus
Web-based
console
MAINFRAME
SOA
Service virtualization, Shared Service Gateway, Monitoring Operations
14
13. Unified Platform for Services, Events & Processes
End-to-end Real-Time Agility
EDA delivers real-time event processing for monitoring, analyzing, and acting on
business process optimization.
EDN CEP BAM
event
createSupplier
ADF page flow Mobile Devices
and BC
BAM Dashboards
event
SOA composite ADF (active RCF & DVT)
Other event
JMS
sources
(feeds, etc.)
close loop
15. Integration of IT Systems
• 3 – 7x of license spent on services
• Costly Upgrades
• Proprietary skill sets
16. Oracle Delivers Sustainable Integration
Oracle Application Integration Architecture (AIA)
AIA Process Integration Packs
Packaged Integration Flows For Specific Applications & Processes
AIA Foundation Packs
Reference Common Object Definitions SOA/BPM Framework
Process Models & Standard Shared Services & Methodology
Oracle SOA & BPM Infrastructure
Process Service Bus Registry & Service B2B Integration
Management Repository Management
Custom, legacy,
others, …
17. AIA Foundation Pack
Accelerates Time to Value
AIA Foundation Pack
Pre-built Content Pre-Defined SOA/BPM Framework
(RPM/EBO/EBS) Reference Patterns and Methodology
FMW Integration Developer
Methodology Governance Tools Utilities…
5 Core Differentiators
Business
Process
Driven
Works with
Any
Application
Includes
1000+
Standardized
Facilitates
Fusion
Applications
Proven by
Oracle, Used
by Oracle
Approach Services Adoption
Faster Implementations Reduced Risk Lower Integration Costs
18. Available AIA Foundation Packs
Cross Industry and Industry Specific Foundation Packs
Cross Industry Foundation Pack Industry Specific Foundation Pack
(Base Content and Tools) Extensions
(Industry Specific Process Models & EBO Content)
• 100+ Enterprise Business Objects Foundation Pack Extension for Comms:
• XSD (XML Schema Definition), • Comms Enterprise Business Objects and related
Services
• UML (Unified Modeling Language)
• Industry specific L1-L3 Business Process Models
• 1000+ Enterprise Business Services • Industry Standards Compliant
• WSDL (Web Services Description Language)
• Enterprise Business Messages Foundation Pack Extension for Utilities:
• Cross Industry Reference Process Models • Utilities Enterprise Business Objects and related
• Oracle BPA Suite Models (L0, L1, L2 and L3) Services
• VCD, EPC and BPMN type models • Industry specific L1-L3 Business Process Models
• Industry Standards Compliant
• SOA/BPM Framework and Methodology
• Business Service Repository
Foundation Pack Extension for Insurance:
• Error Handling and Diagnostic Framework
• Insurance Enterprise Business Objects and related
• Test Harness Framework (Comp App Validation Services
System) • Industry specific L1-L3 Business Process Models
• Developer productivity Utilities • Industry Standards Compliant
• Best Practices based programming Model
19. AIA Process Integration Packs (PIPs)
Designed for Specific Business Process – Reduces Costs & Effort
Silo’d Siebel Processes Example: Oracle AIA Order to Cash
“Process Integration Pack”
• Create Opportunity
• Create Quote/Order
• Confirm Order…
• Bill/Payment Create
Quote/Orde
r
Bill/Payment Configure
Silo’d E-Business Suite Processes Product
Pick, Pack, Check
Ship Availability
Confirm
Order
• Configure Product
• Check Availability Delivers predefined processes and integration flows (average 10-20):
• Pick, Pack and Ship • Customer Management (6 integration flows)
• Billing and payment • Order Management (2 integration flows)
processing… • Product Management (3 integration flows)
• Price List Management (2 integration flows)
• Process Integration for Quotes (1 integration flow)
• Services Calls (ATP Check, Credit Check, Payment Auth, Shipping
Charges)
• Asset Management (3 integration flows)
20. Available AIA Integration Packs
35+ Cross Industry and Industry Specific Integration Packs
Cross Industry Industry Specific
Process Integration Packs Process Integration Packs
• Design to Release:(Agile PLM to Oracle EBS) • Communications
• Design to Release:: Agile PLM to JDE E1 • Order to Bill (Siebel CRM to Oracle Comms BRM)
• Design to Release: (Agile PLM to SAP) • Agent Assisted Billing Care (Siebel CRM to Comms BRM)
• Order to Cash: (Siebel to SAP) • Revenue Accounting (Oracle Comms BRM to Oracle EBS)
• Customer MDM: (UCM to SAP) • Customer MDM (Siebel Comms, UCM)
• Order to Cash: (Siebel CRM to Oracle EBS Order • Logistics Service Providers
Management))
• Financial Management (OTM to Oracle EBS)
• Trade Promotions Mgmt: (Siebel CRM to Oracle Trade
Mgmt) • Order Management ( OTM, Oracle EBS and Siebel CRM)
• Customer MDM (Siebel, EBS, UCM) • Driver Management (OTM and Oracle EBS)
• Product MDM (PIM, Siebel, EBS) • Retail Financial Operations Control
• Lead to Order: (CRM On Demand to JDE World) • Oracle Retail to PeopleSoft
• Lead to Order: (CRM On Demand to E-Business Suite) • Oracle Retail Merchandising to E-Business Suite
• Lead to Order (Oracle CRM On Demand to JDE E1) • Banking Account Originations (Siebel CRM to i-flex)
• Financial Consolidation (Oracle FAH to PeopleSoft) • Health Sciences: Oracle Clinical to Siebel Clinical
• Project Mgt: (Primavera to E-Business Suite) • High Tech / Mfg: Siebel CRM to Oracle Incentive Compensation
• Project Mgt: (Primavera to JD Edwards E1)
• Utilities Field Work: CC&B to MWM and WAM
• Workforce Administration for PSFT HR
Direct Integrations
Direct Integrations
• Life Sciences: Call to Case (Siebel Life Sciences to Oracle AERS)
• Order to Ship (Oracle EBS to OTM)
• Oracle Utilities : CC&B to PeopleSoft Enterprise Financials & CC&B to
• Trade Management (Demantra, Siebel CRM Consumer Oracle EBS and CC&B to JDE Financials
Goods)
• Oracle ETM to PeopleSoft Enterprise Financials
• Oracle Value Chain Planning (Demantra, JDE E1)
• Oracle ETM to Oracle EBS Financials
• Oracle Value Chain Planning (Demantra, PSFT)
Enterprise
21. KPN Drives a Customer-Centric Approach and
Simplifies IT Systems with Oracle AIA
Challenges
• Accelerate time-to-market for Services
and Products
• Leverage common services across
multiple channels Results
• Simplify IT landscape and reduce IT
costs • Automated Order to Billing Activation
process
Solution
• Integrated:
• Reduced overall effort to go to market
by 10-20%
• Oracle Siebel CRM 8.0
• Oracle Financials
• Deployment in consumer fiber
• Oracle PeopleSoft Human Resources services division in less than 6 months
• Oracle Communications
• Using • Accelerated time to market for new
• Oracle SOA Suite products and services by 30%
• AIA PIPs for Oracle Communications
22. Drive Savings Throughout Integration Lifecycle
AIA Case Study Results*
Implement Traditional custom integration
20% Cost reduction Application Integration Architecture
Upgrade
55% Cost reduction
AIA Case Study Results*
Maintain
Average Initial 10 Months
50% Cost reduction Implementation
Time & Effort 7 Months 30%
3 Months
Average Upgrade
Time & Effort
*Source: 5 year TCO Oracle Study with Telco Customers, 2008 1.5 Mos 50%
24. Lack of Governance Inhibits SOA Adoption
Q: What, if anything, has or will inhibit SOA adoption at your company? (Infoworld)
Base: 592 (Among qualified respondents)
Lack of SOA governance 50%
Difficulty building an SOA roadmap 40%
Performance and reliability 39%
Incomplete/immature standards 39%
Unresolved security issues 33%
Lack of service infrastructure technology 33%
No reference architecture 27%
Difficulty determining where/how to start 24%
Identifying the new application or service to build 21%
Funding/budget issue 3%
Other 8%
Don't know 3%
Nothing 5%
0% 10% 20% 30% 40% 50% 60%
25. Oracle SOA Governance Framework
SOA Governance Definition Method SOA Governance Reference Model
Aligns People, Process, and Technology
Agile, Decision, and Accountability Framework
26. SOA Governance
Closed-Loop Lifecycle Control
Design
Develop
Analyze
& Model
Design Time
Deploy &
Secure
Policy Management
Monitor
Policies
Retire & SLAs
Services
Manage Change SLA Management
28. Oracle acquires
• Background
– In January 2010, Oracle announced the acquisition of SOA
management leader – AmberPoint
– The AmberPoint solution has become part of Oracle’s FMW SOA
management and FMW WLS management
– Heterogeneous support will be provided via Non-Oracle Middleware
management
• Extends our current SOA Management and WLS Management
– Compelling value proposition
– Highly differentiated
– Complementary to existing Oracle products
• Legal Entity Combination 1st April 2010
29. SOA Management & Business Transaction
Management
End-to-End, Application Level View
Process Engine Service Bus
• Live tracking of individual transactions
• Spans all interacting tiers and applications, beyond a single app server
– Encompasses servers, applications, ESB's, OSB, appliances, and more
• Leverages transaction content for business visibility and interactive management
• Non-invasive approach avoids modifying applications or messages
– No "tracers" or headers required
– Requires no coding/deployment cycle
• Unique patent pending "fingerprinting“ algorithm
– Doesn't disrupt applications or messaging systems
– Overcomes "uncooperative" components beyond management control
31. Oracle Product Offerings
Complete. Open. Integrated
Methodology Driven Unified Events Service Registry, SOA Building
Process Design and Services, Repository, & Blocks &
Process Management Productized
Execution Integrations
32. Oracle SOA & BPM Products
Broad Industry Recognition for Innovation
Leader Leader
“Hands down, the most Best Complex Event
comprehensive and easy Processing Solution
Application Infrastructure for SOA Application Infrastructure for New to use SOA product on the
Composite Projects MQ Semantic SOA Application Projects MQ market today”
Leader Leader
Leader
Application Infrastructure for Back-End Integrated SOA Governance Forrester Wave: Enterprise Best Web Services
Application Integration Projects MQ Technology Sets MQ Service Bus Orchestration Solution
34. Next Steps
Take the SOA & BPM Assessments – oracle.com/soa
• Examination • Prescription
– Detailed survey focused on key • Actions to Consider - Go forward
process and architecture domains plan based on results
• Diagnosis • Potential Business Impact - Best
– Based on complex analytics results practices identified and utilized
– Compared vs. peer group