Aligning IT with Business Goals through SOA

© 2006 IBM Corporation
IBM SOA Architect Summit
Keynote Presentation:
Aligning IT with Business
Goals Through SOA
Garry Gomersall
SOA Business Executive, North-Europe IOT
Garry.Gomersall@uk.ibm.com

3 SOA on your terms and our expertise
Innovation that matters to CEOs and CIOs
87% of CEOs believe
fundamental change is
required in next two-years
to drive innovation
Source: 2006 IBM Global CEO Survey
Top Innovation priorities for CEOs:
Extend the ability to collaborate inside &
outside
Innovate business models & processes
Leverage information for business insight
Ability to manage increasing regulation costs
Ability to allocate capital
Ability to manage a global organization
Ability to allocate the best talent
Ability to innovate
0 30 60
Source: March 2005 McKinsey Quarterly survey of 9,345 global executives
CIOs and CTOs
Recognize Innovation
as the Most Important
Capability for Growth
Yet: Only 1 in 10 CEOs believe their
organization has the ability to be very
responsive to changing market conditions

Traditional
Structured
Calculations
Data Processing
Transactions
The Internet
Open Standards
Connectivity
Flexibility
Simplicity
Scalability
On Demand
Rich, Modular Components
Composition/Orchestration
Dynamic Applications
Flexible Business Solutions
Deepening Integration of IT with Business
On Demand Computing Model

Division “A” Division “B” Division “C” Division “D” Division “E”
The Vertical Silo Problem

Where Are We Heading – Service Oriented Architecture
Outsourced
Supplier
Shared
Services
Division(s)
Customer

Monolithic Business Applications – built historically
Must periodically synchronize on inventory information
Pricing information into each inserted differently based on application structure
No common customer database, inventory or flexibility in business processes
Sales Orders
& Supply
Chain
Older Architectures Do Not Support Flexibility
Required by Current Business Environments
Pricing
Web
Orders

Services defined as units of business logic, but…
Flow of control – bound into service logic
Transformation of data formats bound into service logic
Tight coupling between services makes them fragile
Inventory
Sales
Orders
Shipments
Customers
Pricing
Web Orders
Component-based Architecture is Not Enough

Services defined as units of business logic separated from…
Flow of control and routing
Data transformation and protocol transformation
Inventory
Sales
Orders
Shipments
Customers
Pricing
Web Orders
Service Oriented Architecture
Moves IT Logic Out of Services

IBM SOA Foundation
Flexible business requires flexible IT
Bank
Shared
Service
Customer
Bank 2 – “Supplier”
Outsourced
Case Study: Payments Processing
Full Business view
Process to optimize
Creating IT flexibility
Skills &
Support
Software

Profit Outperformers
Focus on Business Model Innovation More Frequently than Underperformers
Business Model Innovation is defined as…
Innovation Type Selections for Out and Under Performers
(Operating Margin CAGR)
Products / Markets /
Services
0%
20%
40%
60%
80%
100%
Under-Performers Out-Performers
%respondentsselecting
eachinnovationpath
Operations
Business Model
Innovation in the structure and/or financial
model of the business
Source: IBM Global CEO Study 2006 (765 CEOs, Business Executives and Public Sector Leaders)

“In the past, IT would say to business, ‘Here’s what
the software can do; now, design your business
process to match those capabilities -- or wait
two years until we can build you something
from scratch.’ Now, business can say, ‘Here’s
what we need,’ and the technology can respond.”
InfoWorld, “SOA: Watch Your Steps”
November 7, 2005
How Does SOA Change the Game?

“SOA is the next-wave architecture to drive the evolution of IT.”
Alex Cullen
Principal Analyst for IT Management, Forrester Research
Standards have been widely
adopted
Software is mature and available
Governance is well-defined
Best practices are in place
Why SOA Now?

IT Sophistication
People
Processes
Information
Collaboration
Role Based Workplaces
Process
Integration
Business
Integration
Data
Warehousing
Information
Integration
Portal
Application
Integration
Data
Replication
Personal
Productivity
Team Productivity
Organizational
Productivity
Achieving Organizational Productivity

Service-oriented
To:
Function-oriented
From:
Business Needs Are Driving a Shift in IT
Implementation abstraction
Structure applications using
services
Orchestrated solutions that work together
Incremental development cycles
Build to change
Known implementation
Structuring applications using
components and objects
Tightly coupled
Application silos
One long development cycle
Build for permanence
Loosely coupled

IBM SOA Maturity Model
Silo
Level 1
Services
Level 4
Composite
Services
Level 5
Virtualized
Services
Level 6 Level 7
Dynamically
Re-Configurable
ServicesComponentized
Level 3
Integrated
Level 2
Modules Services
Process
Integration via
Services
Dynamic
Application
Assembly
ComponentsObjectsApplications
Structured
Analysis &
Design
Service
Oriented
Modeling
Service
Oriented
Modeling
Grammar
Oriented
Modeling
Component
Based
Development
Object
Oriented
Modeling
Methods
Ad hoc IT
Governance
Emerging SOA
Governance
SOA and IT
Governance
Alignment
SOA and IT
Governance
Alignment
Ad hoc IT
Governance
Ad hoc IT
Governance
Organization
SOA and IT
Governance
Alignment
Service
Oriented
Modeling
Process
Integration via
Services
Platform
Specific
Platform
Specific
Platform
Neutral
Dynamic
Sense &
Respond
Platform
Specific
Platform
Specific
Infrastructure
Monolithic
Architecture
Emerging
SOA
Grid Enabled
SOA
Dynamically Re-
Configurable
Architecture
Component
Architecture
Layered
ArchitectureArchitecture SOA
Platform
Specific
Function
Oriented
Service
Oriented
Service
Oriented
Service
Oriented
Function
Oriented
Function
Oriented
Business
View
Service
Oriented
Take stock of where you are and where you want to go

IBM SOA Maturity Model
Level 1 Level 4 Level 5 Level 6 Level 7Level 3Level 2
Applications
Methods
Organization
Infrastructure
Architecture
Business
View
Take stock of where you are and where you want to go
Silo Services
Composite
Services
Virtualized
ServicesComponentizedIntegrated
Business
Domain
IT
Environment
Ad-Hoc Systematic DynamicComposite
You Are
Here How Do
I Get Here?
SOA Project
SOA Project

IBM SOA Assessment Tool
Receive actionable recommendations
Customized to your level of SOA maturity
On-line or on-site
Visit ibm.com/soa or contact soa@us.ibm.com
How Do
I Get Here?
You Are Here

Open Technology Model
LINUX XML
SDO
J2EE
UML
ECLIPSE
TCP/IP
HTML
XHTML
WEB
SERVICES
SCA
Open
Networks
Open
Interchange
Open
Operating
System
Open
Publishing
Open
Information
Open
Programming
Platform Independent
Adaptability is vital
Linux Windows AIX Solaris HP-UX i5/OS z/OS

IBM is the #1
commercial supporter
Open Operating
System Choice Includes Linux
IBM contributed technology to
J2EE & helped form the
Apache Software Foundation
Open Application
Server J2EE and Apache
IBM led or co-led the creation
of SOAP, WSDL, UDDI,
WS-Security, BPEL4WS …
Open Application
Integration Web Services
IBM donated $40M of
initial technology
Open Development
Integration Platform Eclipse
SOA is Based on an Open Platform and Open Standards
IBM invests heavily in providing continuing leadership in standards development e.g.

Defining the capabilities for your SOA environment
Template for designing at a service-level
Interaction Services Information Services
Partner Services Business App Services Access Services
Development
Services
Management
Services
Infrastructure Services
Enables collaboration
between people, processes &
information
Manages diverse data and
content in a unified
manner
Connect with trading
partners
Build on a robust,
scaleable, and secure
services environment
Facilitate interactions with
existing information and
application assets
Integrated
environment
for design and
creation of
solution assets
Manage and
secure
services,
applications &
resources
Optimizes throughput, availability and utilization
Apps&
InfoAssets
Process Services
Business Services
Supports enterprise business process and
goals through businesses functional service
Enterprise Service Bus
Orchestrate and automate
business processes

IBM SOA Business Catalog
Catalog Objectives:
Drive business centric assets
based on industry services
Promotes the value proposition
of SOA – REUSE!
Promotes, facilitates, and
enables the ecosystem
The IBM SOA Business Catalog is a comprehensive, online resource for
reusable SOA content that leverages IBM’s SOA Foundation products.

Types of services and assets
Web Services
Models – Process, Integration, Data
Sample code
Plug-ins
Patterns
Adapters
Connectors
Software Packs
QuickStarts Professional Services
GetStarted Professional Services

Lessons Learned
Based on Customers’ Experiences
SOA is a team sport
– Business Team and IT Team work
hand-in-hand
SOA Foundation is critical
– Establish an enterprise architecture &
infrastructure, based upon SOA principles
Project entry points are important
– Avoid the “Big Bang” approach
Governance is a must for success

Thank You
Merci
Grazie
Gracias
Obrigado
Danke
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Aligning IT with Business Goals through SOA

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