Best Practices for Driving Greater Business Value with SOA

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Full webinar video available at http://ow.ly/5xgSa

IT leaders understand that Service-Oriented Architecture (SOA) helps drive competitive advantage for the business. In fact, Forrester’s data shows that 30 to 40 percent of SOA users say they use it for strategic business transformation. The secret of SOA success is to adopt best practices that use SOA to amplify the value of IT to the business.

In this webinar, Forrester’s Randy Heffner shares SOA best practices that you can use to deliver high impact business results for your organization. Manmohan Gupta outlines the most effective approaches to use SOA to reduce time to market for products, improve customer service and create flexible business processes.

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  • Main Point: Organizations world-wide are using the SOA solution from Software AG in driving superior business outcomes. For example, w ith Software AG SOA solution, a large Western Europe telecommunications company realized 180% ROI in the first six months. A multi-national bank is using the solution to double its retail branches in five years. Also, a US based supply chain giant is able to on-board new acquisitions in fewer than three months. In addition to above, we have over 50 partners around the globe that interoperate with our solution or provide added value with products and services.
  • Best Practices for Driving Greater Business Value with SOA

    1. 1. Best Practices for Driving Greater Business Value with SOA
    2. 2. July 5, 2011 | Software AG - Get There Faster | Randy Heffner Research VP & Principal Analyst, Forrester Research Manmohan Gupta Director, SOA Solutions Marketing, Software AG
    3. 3. The SOA Value Chain Applying SOA Principles Lead to Business Value <ul><li>Service orientation </li></ul><ul><li>Separation of concerns </li></ul><ul><li>Loose coupling </li></ul>IT Benefits SOA Principles Business Value <ul><li>Rapid Assembly of Apps </li></ul><ul><li>Reduce IT Redundancies </li></ul><ul><li>Quickly Adapt IT Systems to Needs </li></ul><ul><li>Increased Market Competitiveness </li></ul><ul><li>Higher ROI on IT Investments </li></ul><ul><li>Improved Customer Retention & Service </li></ul>
    4. 4. July 5, 2011 | Software AG - Get There Faster | AUDIENCE POLL
    5. 5. Best Practices for Driving Greater Business Value with SOA <ul><li>Randy Heffner, Vice President and Principal Analyst </li></ul>March 24, 2011
    6. 6. If you want greater business value, focus on the business.
    7. 7. Many SOA users apply SOA for strategic business transformation Base: 55 Current and prospective users of SOA Source: 2011 Global Online Application Architecture & Design Strategies - SOA and Beyond survey How are you currently using SOA?
    8. 8. Those using SOA for strategic business transformation are more satisfied with SOA Which of the following best describes your firm's level of satisfaction with SOA? Expanding use of SOA We are: Not expanding Cutting back Most or all benefits expected Because: Struggling for benefits Little or no benefit Enough benefit to expand Too early to tell Base: Current users of SOA Source: 2011 Global Online Application Architecture & Design Strategies - SOA and Beyond survey 1 N=16 4 N=27
    9. 9. SOA-based process improvement: Queensland Transport <ul><li>Before </li></ul><ul><ul><li>Manual registration </li></ul></ul><ul><ul><li>Only government inspectors </li></ul></ul><ul><li>After </li></ul><ul><ul><li>Automated registration </li></ul></ul><ul><ul><li>Certified external inspectors </li></ul></ul><ul><ul><li>Revenue from public data </li></ul></ul>Government agency cuts vehicle registration cost, broadens access to vehicle inspection, and creates a new source of revenue. Dealer sales Vehicle inspection Manual entry Industry Government Vehicle Registration Inspection Dealer sales Direct integration Vehicle registration Data vendors Gov’t inspector Vehicle inspection Vehicle registration $$$ Public data
    10. 10. SOA-based product innovation: Logistics firm <ul><li>Before </li></ul><ul><ul><li>Slightly customized, large-grained products </li></ul></ul><ul><li>After </li></ul><ul><ul><li>Highly customized, fine-grained, “sticky” products </li></ul></ul>Logistics firm delivers every product “to a market of one,” becoming a transparent part of their customers’ business processes. Order Shipping EDI* SOA-based services Customer Logistics firm Delivery Order Customs Inventory Supply Shipping Delivery Various logistics applications * EDI = Electronic data interchange
    11. 11. SOA-based service improvement: Telecommunications <ul><li>Before </li></ul><ul><ul><li>Associates wrestle with multiple disconnected systems, causing service errors and inconsistencies </li></ul></ul><ul><li>After </li></ul><ul><ul><li>Consistent service enabled by layered SOA service portfolio </li></ul></ul><ul><ul><li>Customer self-service uses the same services </li></ul></ul>SOA enables integrated customer service and bundled selling across three major products: TV, Internet, voice. Order-TV Billing-TV Trouble Tkt Trouble Orders Billing Billing-Inet Bundled UI for orders, products, billing, trouble Billing-Voice Order-Inet Order-Voice Order-TV Order-Inet Order-Voice Billing-TV Billing-Inet Billing-Voice Customer self-service Trouble Tkt Trouble1 Trouble2
    12. 12. Best Practice: SOA as a business process foundation Services can initiate digital processes Source: June 18, 2004, “The Big Strategic Impact Of Organic Business And Service-Oriented Architecture” Digital world: Digital services Digital processes services Physical world : processes Sample process Product inquiry Reserve inventory Create customer order Create supplier order Schedule shipment Schedule production Services correlate to process steps Service delivery network Product inquiry Reserve inventory Schedule shipment Create customer order Create supplier order Schedule production
    13. 13. Best Practice: Use SOA to insulate your business from application silos Sample business process Product inquiry Reserve inventory Create customer order Create supplier order Schedule shipment Schedule production Business service interfaces Existing applications Customer care Order entry Inventory Shop floor Accounting Production Logistics Supply chain Customer care Customer care Supply chain Supply chain Product inquiry Reserve inventory Schedule shipment Create customer order Create supplier order Schedule production
    14. 14. Best Practice: Know your service types — business services are the most important for long-term value Business services Application services Infrastructure services Transactional services Query & content services Analytical services Application integration/ shared services Business units of work Technical utility functions Functional services Data services Common services Source: October 25, 2005, “A Taxonomy Of Service Types For SOA” Forrester report Strategic business focus Internal IT focus
    15. 15. Best Practice: Use a service portfolio to build your business Industry hype: Collect an SOA library Best practice: Invest in an SOA portfolio Service Service Service Service Service Project Project Project Project Project Business capability Service Service Service Service Service portfolio plans Project Project Service Service Service X Business capability Service Service Service Service Business capability Service Service Service Service Business capability Service Service Service Service
    16. 16. Best Practice: Use SOA as a foundation for a much broader shift in business-driven design Human-centric workflow Sample business process Product inquiry Reserve inventory Create customer order Create supplier order Schedule shipment Schedule production Business service interfaces Digital processes Event processing Process dashboard SOA management Business monitoring Event Event Event Probe Probe Probe Event Product inquiry Reserve inventory Schedule shipment Create customer order Create supplier order Schedule production
    17. 17. Best Practice: Business-focused SOA governance for a flexible future for your business capabilities Forrester’s Business Capability Architecture SOA business services: the business design fulcrum of your future architecture SOA management: core touchpoint for business transaction insight SOA policy: business control and visibility SOA service portfolio management: coherent design across your business capabilities Business capability implementation: Customer care Virtualized enterprise data Business services <ul><li>Update customers </li></ul><ul><li>Submit orders </li></ul><ul><li>Schedule shipment </li></ul><ul><li>Finalize compensation </li></ul>Customer Products Sales Sales portal Executive dashboard Service workbench Collab. Rules Events Policies Analytics BPM process flows Edge connectors Social monitoring (covert UI) External data Business capability implementation: Customer care Virtualized enterprise data Business services <ul><li>Update customers. </li></ul><ul><li>Submit orders. </li></ul><ul><li>Schedule shipment. </li></ul><ul><li>Finalize compensation. </li></ul>Customer Products Sales Sales portal Executive dashboard Service workbench Collab. Rules Events Policies Analytics BPM process flows Edge connectors Social monitoring (covert UI) External data
    18. 18. Best Practice: Extend SOA’s business design into cloud platforms On premise IaaS / PaaS SaaS Biz process outsourcing IaaS / PaaS platform control Through the Cloud SOA connections Service delivery network Product inquiry Reserve inventory Schedule shipment Create customer order Create supplier order Schedule production Product inquiry Reserve inventory Create customer order Create supplier order Schedule shipment Schedule production Service delivery network
    19. 19. Best Practice: Use SOA to drive mobile and multimedia <ul><li>Before </li></ul><ul><ul><li>Client service process broken across government office and client location </li></ul></ul><ul><li>After </li></ul><ul><ul><li>Seamless mobile process with rich content </li></ul></ul>Health agency re-centered client service to the client’s physical location. Case mgt Case worker SOA-based services Field work Gov’t office Documentation Case worker Case mgt Documentation Policy manual Policies Audio notes Photo notes Client Client
    20. 20. Recommendations for driving greater business value with SOA <ul><ul><li>Treat SOA first as business design, not application integration </li></ul></ul>It’s about your business <ul><ul><li>Reuse is easy to understand, but the value of business flexibility is more important </li></ul></ul>It’s about flexibility <ul><ul><li>SOA value is fundamentally a portfolio thing, not a project thing </li></ul></ul>Foundation is governance <ul><ul><li>SOA is a foundation for: mobile, cloud, BPM, events, embedded analytics, unified communications, and on and on </li></ul></ul>Result: Business optimization
    21. 21. Thank you <ul><li>Randy Heffner </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>Twitter: @rh_forrester </li></ul></ul><ul><ul><li>www.forrester.com </li></ul></ul>
    22. 22. Common Challenges July 5, 2011 | Software AG - Get There Faster | Valuable functionality is locked up Always re-inventing the wheel Sharing comes with its own risks
    23. 23. Addressing These Challenges Technology Can Help SOA Solution Detail Presentation | Page Create Services Expose Legacy Systems webMethods Integration Server Govern Services Increase visibility & quality CentraSite ActiveSOA Mediate Access to Services Enforce policies & loose coupling webMethods Mediator Monitor Services Ensure SLA’s & avoid disruption webMethods Insight
    24. 24. But Technology Alone Isn’t Enough How do we set up an SOA competency? What is the roadmap of our SOA? What policies & procedures we need? What should be the scope of SOA Gov.? How we measure success with SOA?
    25. 25. ESB, SOA Registry/Repository, Service Mediation & Monitoring SOA Consulting Services Skills & Training SOA Reference Architecture Starter Kit & Templates “ GEAR” for Implementation Best Practices Software AG Provides Technology with Guidance
    26. 26. ESB, SOA Registry/Repository, Service Mediation & Monitoring SOA Consulting Services Skills & Training SOA Reference Architecture Starter Kit & Templates “ GEAR” for Implementation Best Practices Software AG Provides Technology with Guidance
    27. 27. ESB, SOA Registry/Repository, Service Mediation & Monitoring SOA Consulting Services Skills & Training SOA Reference Architecture Starter Kit & Templates “ GEAR” for Implementation Best Practices Software AG Provides Technology with Guidance
    28. 28. ESB, SOA Registry/Repository, Service Mediation & Monitoring SOA Consulting Services Skills & Training SOA Reference Architecture Starter Kit & Templates “ GEAR” for Implementation Best Practices Software AG Provides Technology with Guidance
    29. 29. Organizations world-wide rely on Software AG for their SOA Supported by 50+ Global Partners More case studies at: softwareag.com/soa
    30. 30. What you can do next Read SOA Adoption for Dummies Available at: softwareag.com/soa Download Show Business Value of SOA with KPI’s Try Free CentraSite Download at centrasite.com
    31. 31. Thanks for Attending the Webinar! <ul><li>The session was recorded and all attendees will receive an email with a link to the recorded version. </li></ul><ul><li>Please attend our upcoming webinars – available at www.softwareag.com/webinars </li></ul><ul><ul><li>A New Roadmap for Modernization: The Process-Driven Mandate for Achieving Business Excellence </li></ul></ul><ul><ul><ul><li>March 29, 2011, 11:00 am ET, 17:00 CET </li></ul></ul></ul><ul><ul><ul><li>Register Now! </li></ul></ul></ul><ul><ul><li>Adopting a Process-Driven Approach to Master Data Management </li></ul></ul><ul><ul><ul><li>March 30, 2011, 11:00 am ET, 17:00 CET </li></ul></ul></ul><ul><ul><ul><li>Register Now! </li></ul></ul></ul>
    32. 32. Page Q and A
    33. 33. What you can do next Read SOA Adoption for Dummies Available at: softwareag.com/soa Download Show Business Value of SOA with KPI’s Try Free CentraSite Download at centrasite.com

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