Describes an approach using business architecture to identify services to be built (SOA).

1. Using Business
Architecture to Drive
Business Services
David Baker
Chief Architect, Diamond Management & Technology Consultants
david.baker@diamondconsultants.com
March 28, 2007

2. What you can expect to learn
• A holistic service model for the enterprise
• Learn the different roles of technical services and business
services
• Discover the impact your company‟s operating model has on the
definition of services
• Explore the elements of a business architecture meta-model
• Learn how to use business architecture to identify business
services
• Develop a strategy to engage your business counterparts in EA
planning
• Use your EA blueprints to govern your service implementations
• Learn why an SOA business case is the wrong way to justify
business services
Page 2
© 2007 Diamond.

3. But, aren‟t you really talking about SOA?
(short answer)
Yes, but…
(long answer)
SOA is a very broad concept and, as such, “services”
are certainly an important sub-topic. My objective is
to describe how Business Architecture provides a
way to document enterprise capabilities and the
services that enable those capabilities.
I am going to try to NOT say “SOA” again,
no promise though 
Page 3
© 2007 Diamond.

4. There is a continuum from Business Services to
Technology Services
• Presentation: Describe how information is
Presentation captured and presented to the user consistent
Services with their role, function and level of authorization
Business Focus
• Business: Contain the logic and context
Business Services required to successfully execute a business
process by leveraging other available services
• Enterprise: Provide those business functions
Enterprise Services
which are common to multiple processes and
when executed produce a simple pass or fail
Technology Focus
response
Data Services
• Data: Access core data stores to retrieve or set
data grouped into logical objects
Infrastructure
Services • Infrastructure: Provide technical services that
promote reuse of IT infrastructure
Page 4
© 2007 Diamond.

5. Example: Financial asset management company –
transfer agency function
Presentation Business Services Enterprise Services Data Services
Services
Account Master
Account Set-up Apply Validation Edits
Get Account Information
Set Account Information
Capture Data Monetary Transaction Get Transaction Info
Account Maintenance
Edits Set Transaction Info
Change of Trustee Purchase Product Master
Get Product Information
Display Controls
Party Set-up Redemption
Dealer Master
Get Dealer Information
Party Maintenance Settlement
...
Display Results
Workflow Repository
Search Generate Letter
Get Routing Information
Get Workflow Info
Transaction Workflow Set Alert Timing Info
Infrastructure Services
Conceptual Context Diagram - Not Exhaustive
Page 5
© 2007 Diamond.

6. There is an „art‟ to distinguishing Business Services
from Enterprise Services
Business vs. Enterprise Services Leading Questions
• Business Initiated Activity
–Is the service something that would be a reason a
shareholder would call in? – Yes, Business Service
–Can the service be incorporated into the business
driven processes? – Yes, Enterprise Service
Enterprise Services
Fulfills the spirit of
• Reusability
–In detailing the business processes, did the same
a majority of the activity, function or task emerge repeatedly? –Yes,
Enterprise Service Enterprise Service
led questions. –Did a process or function appear to be an outlier,
unrelated to others? – Yes, Business Service
Fulfills the • Scale
spirit of a majority –Do future state scenarios such as a new product
of the Business Service indicate an explosion in a particular type of business
led questions. service? - Yes, Enterprise Service
–Would a service be a candidate for exposure through
a new channel? – Yes, Business Service
Business Services
• Localization
–Would items like regulatory changes require updates
to a large number of services? – Yes, Enterprise
Service
Page 6
© 2007 Diamond.

7. Infrastructure services contain the distributed, shared
enterprise services for technical infrastructure
Five Zone Service Model Infrastructure Service Examples
• Messaging
• Persistence
Five Zone Service Model
• Security
• Directory services
• Business rules
• Workflow engine
Page 7
© 2007 Diamond.

8. These are some likely Infrastructure Services for our
Financial Services example
Presentation Business Services Enterprise Services Data Services
Services
Apply Validation Account Master
Edits Get Account Information
Set Account Information
Sales Web Get Transaction Info
Set Transaction Info
Mutual Fund
Transaction Purchase
Product Master
Get Product Information
Settlement
Infrastructure Services
Security Services Messaging Transaction Broker
Log
Product
e.g. SiteMinder e.g. MQ e.g. WebSphere BoR
Business Integration Fail
EAI Hub
Page 8
© 2007 Diamond.

9. How do you identify (and plan for) business services?
High
Coordination Unification
Shared customers with highly customized Consistent product design and
products, services, and features globally integrated processes for all
customers
Business Process Integration
Focus:
Integration capabilities Focus:
Centrally designed and managed
Diversification Replication
Few shared customers with Few shared customers with
highly variable product design operationally similar product units
Focus: Focus:
Localized development speed and Replication of standard capabilities and
autonomy provision of APIs
Low Business Process Standardization High
Page 9 Source: Jeanne Ross (MIT CISR) - Enterprise Architecture as Strategy, Diamond.
© 2007 Diamond.

10. The choice of operating model is reflected in the level
of service standardization
High Coordination Unification
Prsntn Business Enterprise Data Prsntn Business Enterprise Data
Svcs Services Services Services Svcs Services Services Services
Business Process Integration
Infrastructure Services Infrastructure Services
Diversification Replication
Prsntn Business Enterprise Data Prsntn Business Enterprise Data
Svcs Services Services Services Svcs Services Services Services
Infrastructure Services Infrastructure Services
Low Business Process Standardization High
Not Std Partial Standard
Page 10
© 2007 Diamond.

11. Identification of operating model (and therefore
services) must happen in the planning stage
Business Release Project
IT Strategic Planning Business
Strategic Execution
Planning (Portfolio
(SDLC) Operations
Planning Mgmt)
Prioritize the allocation
of IT resources to Develop projects that
Use enterprise and business unit
achieve business support businesses’ Run the
direction and goals to drive IT
strategy, in alignment annual and strategic business
plans
with enterprise plans
architecture
Portfolio 1 Project
Blueprints
Project
Enterprise Portfolio 2
Filter
Blueprints Blueprints Project
Project
Portfolio 3
Blueprints Project
Multi-Year Plan Budget Cycle Project Cycle Continuous
Page 11
© 2007 Diamond.

12. A business-capability driven blueprint is integral to
planning for business services
Business Architecture
Business Business
Business strategy and Strategy Operations Functional
capabilities are key to decomposition is key
identifying the Desired Business Capabilities to identifying top level
operational model Business Services
Solution Architecture
Service Model
Information System Interface
Model Model Model
Infrastructure Model
Planning
Technology Architecture Building
Data App Development Execution Operations Network Security
Models Models Models Models Models Models Models
Page 12
© 2007 Diamond.

13. Engage the Business by documenting, and driving
additional detail into, the business strategy
Strategic Business Architecture
 A comprehensive statement covering
MISSION the major functions and operations
that the program addresses
KEY DRIVERS & GUIDING
 An inspirational, forward-thinking
VISION view of what the program wants to
achieve
PRINCIPLES
 The top priorities that would achieve
GOAL GOAL GOAL GOAL the vision
 A set of realistic outcomes tracked by
PERFORMANCE performance indicators that
OBJECTIVE INDICATORS collectively support goal attainment
CAPABILITIES
 A description of what the business
needs to do to achieve the objectives
REQUIREMENTS  A description of how the capabilities
should be implemented
Page 13
© 2007 Diamond.

14. Engage the Business by documenting, and avoiding
excessive detail in, the business operations
Operational Business Architecture
BUSINESS CONTEXT
Business Architecture
Functional Diagrams
FUNCTION ORGANIZATION
Business
Level 0
SUB-FUNCTION STAKEHOLDER LOCATION
Process Diagrams
 Process design usually
Process Design
PROCESS / SUB-PROCESS
done AFTER a blueprint
Business
Level 1
exists, as part of a funded
project.
TASK
Page 14
© 2007 Diamond.

15. Example: Our Transfer Agency example model
expressed as a business architecture
Business Context
Business Architecture
Transfer Agency
(partial)
Level 0 Functions == Business & Enterprise Services
Account Set-up Party Set-up Transaction
Apply Validation Monetary Txn
Purchase Generate Letter Settlement Redemption Workflow
Edits Edits
Solution Architecture
(partial)
Master Data == Data Services Infrastructure Services
Account Master Product Rules Engine Workflow Engine
Page 15
© 2007 Diamond.

16. A business architecture helps avoid common pitfalls
when starting a service based architecture
• Start with operational model and capabilities, not
requirements
– Requirements are good for implementation but bog down the
planning process
– Capabilities provide a manageable level of detail for prioritization
and release planning
• Start with functions, not with processes
– Process engineering requires a tremendous amount of detail
– Functions allow coarse-grained prioritization and justification for
follow-on detailed process work
• Hold off on reference architectures until a couple
blueprints exist
– Ensure you are working on the highest priority business and
enterprise services
Page 16
© 2007 Diamond.

17. Business services require greater management
maturity than technical services…
Infrastructure Services Data Services Business &
Such as: Enterprise Services
- Single sign-on - Logging - Create / Read / - Business process
- Standard ETL - Performance Update / Delete support
- Messaging Instrumentation Master Data - Enterprise-wide
process support
SOA Management Maturity
Technology Business
Services Services
Page 17
© 2007 Diamond.

18. … and increased complexity of the underpinning
technology
Level 3:
Business & Enterprise Services
• Service Registry • Version Resolution
• Metadata Mgmt • Extensibility
• Service Aggregation
• Process Mgmt
Level 2: A business service is an
Integration and Data Services implementation of a unit of work that
• Translation • Security • Communication
• Transformation • Quality of • Infrastructure is well defined, self contained and
•
•
Request Routing
Transaction •
Service
Monitoring
does not depend on the context or
Mgmt • Management state of other services. A business
service provides a distinct function
Integration services enable the
Level 1: and has the following technical
Shared Technology Services automatic synchronization of data
characteristics:
• Error Handling • Instrumentation between operational systems using
• Logging • Data Access • discoverable and dynamically
a standardized application
• Security • Robust APIs bound
integration approach. Integration
Shared technology services centrally • self-contained and modular
services also provide the
implement enabling technologies and • stress interoperability
foundational architecture for
tools that can be used by all other • loosely coupled
delivering business services.
services and channels. These include • network-addressable interface
but are not limited to workflow
engines, translation services,
business rules, and communication.
Page 18
© 2007 Diamond.

19. MIT Center for Information Systems Research (CISR)
maturity model
• Capabilities build on
other capabilities
• Ongoing service
delivery is the
required foundation
for all other
capabilities
• Expecting agility
without having the
other capabilities
hurts performance
Page 19 Source: Adapted from “IT Leadership and Agility”, George Westerman, MIT CSR
© 2007 Diamond.

20. CIO/CxO relationship and Governance are key
components enabling business services
 How will SOA impact your IT operations?
Service Similar impacts as moving to shared platforms (servers, etc)
Management
 Do you have the right skills to manage SOA?
 Are your systems meeting expectations?
Project  How should your IT delivery organization change to support SOA
Delivery
 How to economically deliver enterprise-wide services
 Generating line of business (LOB) blueprints and business capability roadmaps
Governance / identifies Business and Enterprise services
Alignment
 How do you use architecture governance to ensure economical re-use?
 How do you build the right service, at the right time, for the right cost?
 How do you use Business Architecture to establish needed CxO / CIO rapport and
CIO / CxO
Relationship trust?
 How do you transform IT to understand the desired business capabilities?
Page 20
© 2007 Diamond.

21. Develop a strategy to engage the business in service
identification*
• IT must have a foundation of trust with the business
– Manage IT assets very well (high uptime, low unit cost)
– Help the business provide effective IT oversight (financial transparency,
performance management, etc)
– Build and continuously enhance credibility and trust
• Importance of a unified IT operating model
– Establish clear business roles in planning, building, and running IT
• Business drives the need (and owns some services)
– Engage the business in THEIR priorities, model solutions using business
architecture
– Establish a business function to own business/enterprise services
• Services cannot come before governance, project delivery, and
these relationships
* Adapted from: “Business Agility and IT Capabilities”, George Westerman, MIT CSR from an analysis of 1400
responses to the Fall 2004 Gartner CIO survey
Page 21
© 2007 Diamond.

22. Services should be integrated with existing EA
governance mechanisms
• Service governance should be integrated into existing
EA governance
– Define a centralized application and architecture design review board
– Enforce consistent standards across development frameworks
– Enforce consistent implementation across applications
– Integrate review process with the IT operating model (plan, build, run)
– Define a centralized operations and architecture design review board
• Service specific technologies can assist the governance
activities
– Share future state models via Enterprise Architecture repository
– Service repository
– Run-time monitoring
Page 22
© 2007 Diamond.

23. Neither business nor technical is a “SOA business
case”
Business-driven
1st Business Domain
business cases
Engage the for business
2nd Business Domain
Business
services
Nth Business Domain
We need
services!
1st Business Services
2nd Business Services
Build services
Nth Business Services
Build and deliver Infrastructure services
Cost-reduction /
avoidance business case
for infrastructure
Page 23
services
© 2007 Diamond.

24. Key Takeaways
• Adopt a holistic model for service identification
– Separate technical infrastructure services from business services
• Use Business Architecture methods to identify business
services
– Engage the business to determine the prevalent operating model
– Helpful to identify business process specific services separate from
enterprise-wide shared business services
• Realize the level of maturity required to reach business
service delivery
– Ability to build and operate services
– Ability to govern identification, development, and use of services
– IT must have a foundation of trust with the business
Page 24
© 2007 Diamond.

25. Thank You
Questions?
Page 25
© 2007 Diamond.