Now let’s see what IT technologies you need to streamline this process. You need application-to-application A2A integration capabilities to allow the customer’s files to be retrieved automatically, and the final notice to the customer is automatically archived in a message database. You need business-to-business B2B integration capabilities allow loan applications to be received via an ebXML transaction, credit scores to be obtained with an EDI transaction using AS2 over the internet, and the blue book value to be obtained by invoking a web service at the Kelly Blue Book site. You need workflow and BPM capabilities to track long-lived, semi-automated activities such as the house appraisal and title search for as long as they take, send reminders when necessary. These activities must become part of the personal worklist of the responsible people, with appropriate reassignments and alerts to others in the organization. At this point, the capabilities of traditional EAI have been exhausted. But this process requires a lot more. 4) You need to enable applications to be submitted electronically via a customer self-service Portal 5) You need to automate the laborious effort of matching ambiguous application data with the customer’s records, and you need to keep index of the location of all information about the customer in all systems 6) You need to cleans and load all of the loan information into the corporate data warehouse by with an ETL tool 7) You need to write an application that can access all of the information in every step of the process to make loan decisions and to create custom letters or other notifications. This is what is called a Composite Application. 8) You need to monitor the performance of the process in real time using Business Activity Monitoring (BAM) technology to create web-based custom dashboard that any loan officer can use to see loan processing times. This simple process illustrates many different integration technologies can be needed for to completely optimize a common business process like this.
Explain Service Oriented Architecture and the benefits. Start at the bottom ECOSYSTEM :At the lowest level of an SOA, the unlike components can be connected together and integrated enabling the pieces to talk to one another and be connected. SEEBEYOND has specialised in this kind of integration for many years and we have solid proven technology for doing this. BUSINESS SERVICES: Once you have access to all the unlike components through the integrated eco-system you can combine and reuse stored and accessible combinations and logic in new ways much more flexibly than you previously could. This also enables you to see the impact on other systems of retiring a component or system. ASSEMBLY AND ORCHESTRATION: Once you have your newly accessible combinations of business logic you can combine them together to create new business processes and monitor how they are working through a business process management and orchestration layer. In this way, once an enterprise knows how it wants to perform a certain task, the steps can be modeled, resulting in a flow map that shows what has to happen, the order in which it must occur, and the resources to be used (e.g., applications or humans). Presentation Layer: The presentation layer brings these easily orchestrated and combined services together into a very quickly built view with which a human-being can interact with access to all the existing systems in the company or a whole collection of easy to use newly generated composite applications. Integration today is really about integrating data, processes and user interfaces all at the same time and ICAN is really built upon new principles around service oriented architectures and composite applications. Traditionally you would have just integrated many different systems, you may have integrated SAP to Siebel to BPCS which is common in manufacturing. BPCS is an application that many people want to retire. Part of the problem is that when you switch BPCS off everything fails around you so a different approach to that is to create a set of services on the underlying systems. Things like create new customer,which would go into SAP to create a customer, Siebel to create a customer and BPCS. To create new order which would also go into SAP, Siebel and BPCS. Then you can create a whole series of other simple services and what you can then see is that actually BPCS is only used in two services to create a customer and create an order so if I was going to retire BPCS I can very easily go to the two points and the two services that I need to change. So having services is one thing but you also need a sophisticated repository around that to be able to manage those services. So one of the key things a SOA allows you to do is firstly enable one of the key projects in many organisations called convergence which will reduce the number of applications you’ve got and more smoothly retire old applications. The second thing it can do is make you much, much more productive to create new applications so you have a set of services which you can then orchestrate into more complex services or business processes which you can then present to end users as an application or composite application. And when we look at this, what we can see in the services oriented architecture, is that if we use web services standards what we have here is a web services oriented architecture. So we can start to see the place where web services clearly play because they have a very very important role, but when you think 12 months ago people used to think they do everything including solving world hunger which is obviously not the case, but they have a fundamental role within the services oriented architecture and that is what we are going to expand on.
Today Companies are faced with silos of information. When you look at Carrefour due to mergers and acquisitions that had not 2 or 3 but 42 overlapping supply chain systems and 5 overlapping product databases. The following slides will show a best practices approach to IT operations convergence. Only 2 silos are shown but in reality the problem is much larger. Here we have 42 overlapping, legacy supply chain systems. Build 1 As we can seen these have been developed separately and can be though of as independent silo’ed systems. Build 2 The problems is that the data I not independent. For example order, or customer data may be represented in a different structure with different ways to store address for example. This problem is compounded by the fact that the data is also inconsistent with errors. Build 3 The situation is made worse by the fact that each silo not only has inconsistent data but inconsistent processes to manage that data. For example a process to create an order/customer/product may be different in one system to another. Build 4 The final straw is that in reality you have a series of overlapping systems doing a very similar thing. You may well only need 20% of the functionality of a number of systems. However, you are paying 100% of the cost of each system and to make matters worse paying humans to keep the data consistent. In a nutshell the cost is excessive and an inhibitor to your business doing higher value more strategic projects.
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Building an SOA on Your Existing Infrastructure Dr. Ian Howells VP Worldwide Marketing
Agenda <ul><li>History </li></ul><ul><li>Drivers for 2005 </li></ul><ul><li>New Breeds of Application </li></ul><ul><li>Service Oriented Architecture </li></ul><ul><ul><li>Business Process Management </li></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><ul><li>Master Data Management </li></ul></ul><ul><li>Composite Applications </li></ul>
The Impact of Infrastructure on Applications Composite Applications of the Future – The Past 1980 1984 1988 1992 1996 2000 2004 RDBMS Platforms Custom Solutions Apps Apps Suites
The Impact of Infrastructure on Applications Composite Applications of the Future Custom Composite Apps Packaged Composite Apps Web Services SOA
CIO Magazine Survey September 2004 Entry Points <ul><li>The State of the CIO 2004 </li></ul><ul><ul><li>Priorities </li></ul></ul><ul><ul><ul><li>(1) Increasing business efficiency through IT-enabled process improvement </li></ul></ul></ul><ul><ul><ul><li>(5)Controlling or lowering IT spending </li></ul></ul></ul>62% of CIO Report Application Backlog as Significant <ul><li>There’s no consensus on what the next killer application will be, but emerging service oriented application architecture will be the foundation for a new generation of software applications </li></ul><ul><li>Future components will be developed from within the IT departments,… - The future of Software, Information Week December 2004 </li></ul>
IDC Survey Source: IDC, 2004 <ul><li>Applications don’t support processes across functions </li></ul>
62% of CIO’s Report Application Backlog as Significant CIO Magazine Poll September 2004 <ul><li>Application Backlog – What Type of Application </li></ul><ul><ul><li>Healthcare – Better Patient Care </li></ul></ul><ul><ul><li>Retail – Reduce Out-of-Stocks </li></ul></ul><ul><ul><li>Manufacturing – Inventory Management/Supply Chain Visibility </li></ul></ul><ul><ul><li>Financial Services – Reduce Trade Errors/Management Dashboards </li></ul></ul><ul><ul><li>Government – Find and Track Terrorists Across Systems </li></ul></ul><ul><ul><li>Compliance – Employee On-Ramping/Off-Ramping </li></ul></ul>
The World’s Largest Integration Project A National “Spine” for a Single Patient View Radiology GP “System” Patient Record Test Request Test Request Clinical Noting Test Result Pathology National Service “ Community” Patient Record Encounter Record Blood Sample Test Request Radiology Booking Test Result Test Request Radiology Booking Test Result Booking Service
Single Entity View is Needed Everywhere Master Data Management <ul><li>Single Patient View </li></ul><ul><li>Single Customer View </li></ul><ul><li>Single Company View </li></ul><ul><li>Single Employee View </li></ul><ul><li>Single Product View </li></ul><ul><li>Single Terrorist View </li></ul>
Loan Approval Process: Required Capabilities ETL ETL Matching Matching BAM BAM Workflow Workflow Portal Portal B2B B2B B2B B2B A2A A2A A2A Composite Application CA CA CA CA
Financial Services Straight Through Processing <ul><li>From </li></ul><ul><ul><li>Simply Linking Systems </li></ul></ul><ul><li>To </li></ul><ul><ul><li>Business Process Visibility Across Front, Middle and Back Office </li></ul></ul><ul><ul><li>Management Dashboards </li></ul></ul><ul><li>Results </li></ul><ul><ul><li>Transaction Error Rate Dropped from 30% to Zero </li></ul></ul>
RFID/EPC Transforming the Supply Chain It’s Not About Tags A.T. Kearney (ATK) and Kurt Salmon Associates (KSA) It’s About Process Driven Composite Applications
Composite Applications <ul><li>Composite applications represent a means of constructing new applications with very rich functionality in a much reduced timescale and cost. At the highest level a composite application may directly implement an entire end-to-end business process </li></ul><ul><li>There is widespread recognition that composite applications will become an essential and long-lasting feature of the IT landscape. Existing implementations have shown that the promise of reuse is genuine and achievable </li></ul>Source: IDC, 2004, Composite Applications – delivering business agility without massive reinvestment
SOA <ul><li>Service Oriented Architecture (SOA) enables the reuse of existing IT software investments by exposing them as a set of services with defined interfaces. SOA is the enabling infrastructure behind composite applications </li></ul>Source: IDC, 2004, Composite Applications – delivering business agility without massive reinvestment
Service Oriented Architecture Orchestrating Business Processes via Dynamic Component Assembly Packaged Apps Operating Systems Application Platforms Hardware Platforms Custom Apps Databases & Warehouses Trading Partners Business Units Integrated Enterprise Ecosystem Get Order Quote Manage Exception Orders Submit / Change Order Presentation, Application Assembly & Orchestration Order Fulfillment Process Generate Quote Process Consolidate Order for Shipment Process Integrated Business Services Validate Order Check Credit Schedule Shipment Check Inventory Create Invoice
Open Standards for a SOA Platform for building Composite Applications Packaged Apps Operating Systems Application Platforms Hardware Platforms Custom Apps Databases & Warehouses Trading Partners Business Units Order Fulfillment Process Generate Quote Process Consolidate Order for Shipment Process Validate Order Check Credit Schedule Shipment Check Inventory Create Invoice BPEL, BPMN SOAP, WSDL, UDDI, EJB, ebXML Get Order Quote Manage Exception Orders Submit / Change Order JSP OAG, Java, XSLT J2EE JMX, SNMP, MIB Standards Supported
STP Magazine Dec/Jan 2004 <ul><li>STP magazine in Dec/Jan 2003/2004 publication interviewed a banking client who admitted: </li></ul><ul><li>“ for every new corporate client it’s relationship manager had to enter name and address details 53 times so that it could be loaded into a possible 58 processing and monitoring systems. Surely there must be a better way” </li></ul>
Simple Composite Applications Update Address Process Upsell / Gross Sell Process View Revenue Process Upsell/Cross Sell Activity View Revenue by Customer Update Address Marketing Systems Customer Data Warehouse Corporate Systems Sales Systems Service Systems Trading Partners Business Units Assembly & Orchestration Business Services Composite Applications Systems View Customer Record New Customer Record Delete Order Update Records Track Order Upsell/Cross Sell Activity View Revenue by Customer Upsell / Gross Sell Process View Revenue Process
Architecting a Composite Application - CA <ul><li>Families of CA </li></ul><ul><ul><li>Dashboard </li></ul></ul><ul><ul><li>Single View </li></ul></ul><ul><ul><li>Business Process </li></ul></ul><ul><ul><li>B2B </li></ul></ul><ul><li>PCA </li></ul><ul><ul><li>Often Vertical </li></ul></ul>Packaged CA CA Generation SOA Integration
The Application Shift - Phase 1 The Shift to Composite Applications <ul><li>Siloed and Database Centric Applications </li></ul><ul><li>Composite Applications </li></ul><ul><ul><li>BPM Driven </li></ul></ul><ul><ul><li>B2B Driven </li></ul></ul>New Customer Create Product Create Order To Supply Chain1 Supply Chain 42 Submit Order Submit Order Create Product New Customer CRM Warehouse Management HR Order management CRM Order management Legacy CRM Create Customer Web Call Center email Post Partners Create Customer Create FX Customer
The Application Shift - Phase 2 From Suites to Networks of Composite Applications To Integrated Composite Application Network Database Centric Suite Process Driven Auditability/Compliance No Auditability Consistent Cross Application Exception Handling Separate Inconsistent Exception Handling Customize Portal Interface Unable to Change Interface Drag and Drop Workflow Hard-Coded Workflow Screens Change Business Process Logic Change Coded Logic Change Web Service Change Database Structure Composite Application Database Centric Application Submit Order New Customer
Composite Applications and Reuse Levels of Reuse Previously not Thought Possible <ul><li>"We built an application for evaluating policies, and that application has seven different services orchestrated within its process” </li></ul><ul><li>“ Three of those services will be used by 281 different programs at latest count, and we've been able to retire seven different programs from the mainframe" </li></ul><ul><li>The three services getting so much reuse are "get policy information," "get producer information," and "do data transformation." </li></ul><ul><ul><li>Jeff Gleason, Director of IT strategies for the Financial Markets Division, AEGON / Transamerica </li></ul></ul><ul><ul><li>Web Services Pipeline, Transamerica Streamlining Business Processes Through SOA Insurance Giant Using SeeBeyond’s EAI platform to Service-Enable Backoffice Systems September 30, 2004 </li></ul></ul>
Summary <ul><li>The Next Killer App will be a Composite App </li></ul><ul><li>There is a fundamental mismatch between app functionality and their core business requirements </li></ul><ul><li>Companies Developing Composite Apps Internally </li></ul><ul><li>Packaged Composite Applications (PCA) is a $1bn to $1.5bn market </li></ul><ul><li>Companies have experienced 80% productivity improvements through reuse </li></ul>
US Financial Institution Composite Applications – Graphical Logic Not Code <ul><li>Focus moved from transaction bus to composite application integrating business processes and human workflows </li></ul><ul><li>Requirements – Rapid application integration in a single platform, user customizable rules and mappings. Full transaction process management </li></ul><ul><li>Real-Time exception notification and management dashboard for business users not technologists </li></ul><ul><li>Library of reusable actions </li></ul>Business Benefits <ul><li>Developers work with graphical representation of business logic and don’t have to write low-level code </li></ul><ul><li>Increased transaction throughput and significantly reduced cost. Transaction error rate dropped to zero </li></ul>Solution Overview
Building an SOA on Your Existing Infrastructure Dr. Ian Howells VP Worldwide Marketing