1

Software architecture adjustments for a changing business

2

Business is Changing

3

Observations

• Business:• Outsourcing Business Processes• Outsourcing IT• Integrating Internal and External Processes• Focus on Core Competence and Compliance• Mergers and Acquisition

• IT• Architecture Innovation (SOA)• Consolidation of Applications• Focus on Integration and Flexibility• Offshore activities

4

Pressure on IT

5

The CIO ChallengePressure from various angles

Reduce IT budget

Ensure

Regulatory

compliance

Provide 360°

view of

business

Deliver new

services, faster

Lines of Business

CFO Auditors

CEO

6

Requirements

• Business Agility requires IT Flexibility

• IT Flexibility requires Flexible infrastructure

• Flexible infrastructure require SOA

• Successfull SOA requires • Standards

• Application Integration Platform

• Data Integration Platform

7

The 3 adjustments for Success

Integration and Innovation Projects

IntegrationCompetency

Center(ICC)

Approach

Long Term Blueprint

(SOA, EDA)

Architecture

Scalable and Flexible Platform

Technology

8

The Evolution of Integration

• Legacy Applications• Key applications functioned independently

• Data and application logic lumped together on isolated systems

• The mainframe era

• Integration not a priority

• ERP Applications• Core back office functionality packaged into customizable modules

• Single-vendor providing tightly coupled applications

• Integration restricted to a few applications (CRM with Financials, etc.)

• Application and Data Integration• Multiple vendors providing different critical application components

• Information assets distributed across heterogeneous systems

• Application and Data Integration become TOP priority

9

Data Integration for the Virtual Enterprise

Legacy Migration Consolidation

Synchronization Master DataManagement

Consolidated View

Single View of Business

CompositeApps

SCM

HR

Custom

PLM

CRM

ERP

In-House

Process Outsourcing: Increases Integration Complexity

Strateg

ic Valu

e of In

form

ation

Query & Reporting,Dashboards

Data Warehouse

Au

tom

atio

n o

f T

ran

sact

ion

s &

Op

erat

ion

s

Sales Force Automation

Payroll

Receivables

Other

Payables

Service Provider

10

Silo based architectures of the past

Mainframe

DB DB DB DB

CRM HR FinOE

Biz Logic

Biz Logic

11

Dependencies between systems grew

Mainframe

DB DB DB DB

CRM HR FinOE

Biz Logic

Biz Logic

12

Resulting in the Accidental Architecture

Mainframe

DB DB DB DB

CRM HR FinOE

Biz Logic

Biz Logic

13

Technology confusion

• Vendors have delivered functionality in various forms and packages to meet these Integration needs over time:

• ETL (Extract, Transform and Load)

• MOM (Message Oriented Middleware)

• EAI (Enterprise Application Integration

• B2B (Business to Business)

• Workflow

• BPM (Business Process Management)

• BAM (Business Activity Management)

• EII (Enterprise Information Integration)

• ESB (Enterprise Service Bus)

What technology or combination of technologies is right for my project?

14

Service-Oriented Architecture

• An integrated software infrastructure and design approach to expose business relevant data and application services in a loosely coupled, standards based form. SOA - • Leverages web computing standards (XML, SOAP, etc.)

• Promotes wrap and reuse of existing IT assets

• Metadata-driven to maximize portability

15

Two Types of Integration

• Enterprises have two major type of IT assets they need to integrate

• These are two different integration problems which require different technologies & approaches

Business Logic Data

Application & Process

IntegrationData Integration

16

ConsolidateCustomerSystems

Outsource HR

Integrate New Merger

Upgrade SalesComp

Systems

Integrate withHewitt

Complex integration environment increases costs and impedes flexibility

UpgradeRisk Mgmt

System

Migrate LegacyFinance App.

ConsolidateRisk Systems

Integrate Customer

Analytics DataIT Initiatives

Requirements for Accessing, Integrating & Moving Data

BusinessInitiatives

Reduce Lending

Risk & Fraud

Increase Customer Cross-

sell & LoyaltyRegulatoryCompliance

MainframeApplications Databases XMLFlat filesMessages Unstructured Data

Enterprise Data

EAIApp

vendor tool FTP

SQL Scripting

Data Integration

Custom code

Hand coding

BI ETL Tool

SQL Scripting

EAIApp

vendor tool

SQL Scripting Custom

code

BI ETL Tool

• Incomplete, inconsistent view of data• Costly, one-off development efforts• High maintenance & administration costs• No reuse of code or skill sets• Brittle infrastructure hard to change

17

The Importance of Data Integration in SOA

• “Companies must build a solid data services layer; Otherwise SOA benefits will NEVER be realized”

• “The vast majority of companies must have a data integration strategy to accommodate change.”

• “SOA’s success is contingent on a data integration strategy”

• “SOA will fail if long-standing data quality, data redundancy and semantic inconsistency issues are not addressed.”

• “Organizations must address data integration issues during their SOA implementations.”

AMR Research “Data Integration, Foundation for SOA”, September 2005

Gartner “Data Integration Is Key to Successful Service-Oriented Architecture Implementations”, October 2005

• “In utilizing service-oriented architectures (SOA) for integration projects, IT departments should seek to avoid two commonly made mistakes: giving insufficient attention to how data will flow over the underlying architecture, and insufficient use of metadata.”

Nucleus Research “SOA: The Two Biggest Mistakes to Avoid”, November 2005

18

Service-Oriented Enterprise Integration

Mainframe

DB DB DBBiz Logic Fin SAP

BackendIT

Assets

Data and Metadata Integration(Data Access, Profiling, Cleansing, Aggregation, Transformation)

Application Integration(Access, Reliable Messaging, Transactions)

Business Processes(orchestration)

Portal

Reusable Data Services(complex transformation, data quality check)

Reusable Application Services(pub/sub channels, transaction monitor)

19

Conclusion

• Business forces IT to innovate

• Outsourcing increases complexity

• Adjustments in IT focus on SOA

• Regulations will push IT even more