IBM SOA Customer Experience Sharing - Operationalizing SOA ... · Best Practices for Operationalizing SOA Business Transformation 1. Take on a Program Approach for your SOA Implementation

IBM Global Services

© Copyright IBM Corporation 2005

IBM SOA Customer Experience Sharing- Operationalizing SOA Business Transformation

Jenny ChoyDistinguished EngineerIBM Global Services

[email protected]

I Taiwan SOA Summit – Sept 2005 2

IBM Global Services


Agenda

The Business Motivation of SOA

Best Practices for Operationalizing SOA Business Transformation

1. Take on a Program Approach for your SOA Implementation

2. Use a Business Architecture to Provide Guidance for Technical Solution Designs

3. Build an SOA Transformation Technology Architecture

4. Create Pragmatic Roadmap and Demonstrate Continuous Progress

5. Cross Project Service Reuse planning

6. Pay Attention to implementing products and tools for Common Services

7. Special Care with Coexistence and Migration of Existing Applications


IBM Global Services


Our clients face a complex array of challenges

Drive down costEliminate duplicate systemsImprove IT and operations

efficiencyReuse current functionsBuild once and leverageImprove time to market

Provide a flexible business modelRespond to market changes more

quickly

Increase revenueIncrease customer profitabilityCreate new routes to marketCreate new value from existing systems

Reduce cycle times and cost for external business partnersMove from manual to

automated transactionsFacilitate flexible dealings

with business partners

Integrate across the enterpriseIntegrate historically separate

systemsFacilitate mergers and

acquisitions of enterprisesSynchronize common

information across all systems

Reduce risks and exposureImprove visibility into business

operationsRegulatory complianceAlign IT Processes and systems

management Improve Business resilienceSecurity

SOA TransformationRequires

Tightly Integrated Business and IT


IBM Global Services


Leading companies are adopting a more componentized approach, realizing substantial changes

The evolution of business structure – tomorrow

CEO NeedsRevenue growth with cost containmentKey competency: responsiveness Critical success factor: enable effectiveness of people and processes

Source: CEO Study of 456 WW CEOs, IBM Corp. 2004

CIO ChallengesAligning IT and business goals to grow revenue and contain costsBuilding responsiveness and agility into the organization through ITHow can IT help enable people and teams to be more effective

Source: Operating Environment Market Drivers Study, IBM Corp. 2004

Dynamically configurable architecture with business service provisioning


IBM Global Services


The Business Motivation of Service Oriented Architecture (SOA)Improve Business agility- Faster Delivery of New Products Functions and Services

Flexible business infrastructure- Ability to support Mergers / Acquisition- Allow Incremental Transformation without interrupting business

Enable Streamlined Processes- Continuous Business Process Improvement- Business Process visibility- Better, Risk-Mitigated Decisioning- Reduced Costs- Improve financial reporting and business operations

Higher Customer Satisfaction- Support multiple devices in multiple business channels using same application base- Better customer service- Buy application components (e.g. Rules Engines, Rating Engines) vs. build- Ability to choose vendors and suppliers

Better IT Services- Allow for more consistent, sharable Infrastructure through standards and shared services- Reduce overall development, integration and maintenance complexity and costs- Faster Functional Development

Leverage Existing Assets and Asset Reuse- Reuse of business services, application services and technical infrastructure services


IBM Global Services


The Concepts of Componentization and Service Orientation supportdynamically configurable business services

Operating Environment

Business Need Necessary Functions & Services Composite Application(s)

1. Decompose the Business Need into its necessary function and services (Separation of Concerns)

2. Reuse/Create Business Application Specific function and services(Create/reuse services)

3. Utilize common services provided by the Operating Environment (Leverage Infrastructure)

RESULT: Implemented Composite Application representing a business process

1 2

3

By decomposing business needs into necessary services and composing combinations of existing and newly created services that represent business processes …


IBM Global Services


The Reality – Transformation speed is hindered by existing Business, Application and Infrastructure environments

BU

SIN

ESS

USE

R

Enterprise Service Bus

BusinessServices

Infrastructure Services

Business Performance Management

Application Services

Process Services

Interaction Services

InformationServices

Resource Virtualization Services

Utility Business Services

Service Level Automation and Orchestration


Utility Business Services


DevelopmentServices

Enterprise IT Portfolio

Management

E01-EDI

Data Warehouse(Interfaces to and from the

Data Warehouse are notdisplayed on this diagram)

DRAFT Best Buy - Application Diagram V4 DRAFTNovember 10, 1999

G02 - GeneralLedger

A05 - AP

S01 - SalesCorrections

I01 POReceiving

I03 Return toVendor

I06 WarehouseManagement

Mainframe apps - BluePC/NT apps - GreenUnix apps - Yellow3rd party interface - OrangeLines: Colors have no special meaning.They are to help make the diagram easier toread.For More Information: See the databasecontaining information about eachapplication: Application V4.mdb

S06 - Credit App

P15 EES EmployeeChange Notice

OTHER APPS - PCAP - Collections/Credit

TM - Credit Card DB

ACCTS REC APPS - PC990CORBad Debt

Benefical FeesBeneficial Reconcil

JEAXFJEBFAJEBKAJEDVAJESOAJEVSAJEVSF

NSFTeleCredit Fees

INVENTORY CONTROL APPS - PCCode Alarm

Debit ReceivingsDevo Sales

Display InventoryIn Home

JunkoutsMerchandise Withdrawl

Promo CreditsRTV Accrual

ShrinkAP Research - Inv CntrlAP Research-Addl Rpts

Book to Perpetual InventoryClose Out Reporting

Computer Intelligence DataCount Corrections

Cross Ref for VCB DnldsDamage Write OffDebit Receivings

DFI Vendor DatabaseDisplay Inventory ReconcilDisplay Inventory Reporting

INVENTORY CONTROL APPS - PCDPI/CPI

IC BatchingInventory Adj/Count CorrectInventory Control Reports

Inventory LevelsInventory Roll

Merchandise WithdrawlOpen ReceivingsPI Count Results

PI Time Results from InvPrice Protection

Sales Flash ReportingShrink Reporting

SKU Gross MarginSKU Shrink Level Detail

USMVCB Downloads

Journal Entry Tool Kit

Scorecard - HR

L02-ResourceScheduling(Campbell)

P09 - P17Cyborg

M02 - Millennium

M03 - Millennuim 3.0

Banks - ACH and Pos toPay

Cobra

B01 - StockStatus

S03-Polling

P14 On-line NewHire Entry

CTS

Plan Administrators(401K, PCS, Life,

Unicare, SolomonSmith Barney)

D01 Post LoadBilling

I04 HomeDeliveries

I02 -Transfers

Arthur Planning

I07 PurchaseOrder

I12 EntertainmentSoftware

I05Inventory Info

E13E3 Interface

S04 - Sales Posting

V01-Price ManagementSystem

I10 Cycle PhysicalInventory

I55 SKUInformation

K02Customer Repair

Tracking I35 Early WarningSystem

B02 MerchandiseAnalysis

I13- AutoReplenishment

U18 - CTO

Intercept

I09 Cycle Counts

E02-EmployeePurchase

Texlon 3.5

ACH

Stock Options

I17 Customer PerceivedIn-Stock

U16-Texlon

SiteSeer

C02 - CapitalProjects

F06 - FixedAssets

US Bank ReconFile

Star Repair

EDICoordinator

Mesa DataNEW Soundscan

NPD GroupAIG Warranty Guard

Resumix

Optika

Store BudgetReporting

P16 - Tally Sheet

Cash Receipts/Credit

S05 - HouseCharges

Ad Expense

L01-PromoAnalysis

V02-PriceMarketingSupport

BMP - Busperformance Mngt

StoreScorecard

I11 PriceTesting

Valley Media

P09Bonus/HR

I15 Hand ScanApps

Roadshow

POS

S08 - VertexSalesTax

A04 - CustRefund Chks

Equifax

ICMS Credit

CellularRollover

S09 - DigitalSatelliteSystem

NPD,SoundScan

Sterling VANMailbox (Value)

I18SKU Rep

X92-X96Host to AS400

Communication

S02 -Layaways

Washington,RGIS,

Ntl Bus Systems

V04-SignSystem

I14 Count CorrectionsNARM

P01-EmployeeMasterfile

I06 - CustomerOrder

FrickCo

UAR - Universal AccountReconcilliation

DepositoryBanks

S07 - CellPhones

S11 - ISPTracking

AAS

Fringe PO

Cash Over/Short

L60 MDFCoop

SKU SelectionTool

SKUPerformance

SupplierCompliance

1

I35 - CEIASIS

Misc Accounting/Finance Apps - PC/NTCOBA (Corp office Budget Assistant)PCBS(Profit Center Budget System)

Merchandising Budget

AIMSMerch Mngr Approval

Batch ForcastingAd Measurement

AIMS Admin

AIMSReportingAd

Launcher

V03- MktReactions

SpecSource

CTO2.Bestbuy.com

RebateTransfer

SignSystem

CopyWriter'sWorkspace

ELTPowerSuite

StoreMonitor

AIS Calendar

Stores & Mrkts

Due Dates

Smart Plus

InsertionsOrders

BudgetAnalysis Tool

Print CostingInvoice App

AIS Reports

BroadcastFilter

Smart PlusLauncher

GeneralMaintenance

Printer PO

PrinterMaintenance

VendorMaintenance

Vendor Setup

Connect 3

Connect 3Reports

Connect 3PDF Transfe

Spec SourceSKU Tracking

S20-SalesPolling

Prodigy

PSP

In-HomeRepair

WarrantyBillingSystem

Process Servers(Imaging)

Prepared by Michelle Mills

Page 1 of 2

On DemandOperating

Environment

DevelopmentDevelopment

Infra

stru

ctur

e

Man

agem

ent

Infra

stru

ctur

e

Man

agem

entIntegration

Integration

PeopleProcessesTechnology

Legacy SpaghettiComplexity of enterprise application portfolioDisjointed business processesDisjointed integration approachesLimited and diminishing skills in core applicationsEmbedded processes and rulesOld and inflexible IT systems that still runsHigh cost of running the existing IT infrastructureDifferent Development methodologies

The concepts of a Service Oriented Architecture (SOA) will require a corresponding On Demand Operating Environment (ODOE)

Each element of the architecture is a service that together supports the SOA Transformation


IBM Global Services


Agenda





3. Build a Prescriptive SOA Transformation Technology Architecture






IBM Global Services


Business-focused Implementation of SOA will put the output from SOMA into an integrated project (or groups of projects) context

SO

MA

focus

Enterprise P

rogram or P

roject focus

BusinessApplication & PresentationLayer

Existing Application Resources

Package

Services

Business Process

Components

QoS, Security, M

anagement &

Monitoring (Infrastructure Service)

Process Choreography

Simple and Composite Services

Enterprise Components

Custom Application

Package

Integration Architecture / Enterprise Service B

us

External Applications &

Services

EnterpriseData

<< Output to: SOA Implementation >>

RealizationDecisions

Specificationof Services, Components, Flows

Identificationof candidate Services and Flows

<< Input from: Business Componentization/Analysis >>

<< Output to: SOA Implementation >>

RealizationDecisions

Specificationof Services, Components, Flows

Identificationof candidate Services and Flows

<< Input from: Business Componentization/Analysis >>


IBM Global Services


Business-Focused SOA Implementation Programs may involve simultaneous execution of one or more project elements

DataTransformation

Business process Driven

Top DownModelingto Identify

Business Services

Model DrivenDevelopmentwith Intent of

Top-downService Exposure

InfrastructureTransformation

Wrapping Legacyor

PackagedApplications for

Service Exposure

LegacyComponentization

forService Exposure

IntegrationTransformation Development &

Testing Transformation

BusinessApplication & PresentationLayer

Existing Application Resources

Package

Services

Business Process

Components

QoS, Security, M

anagement &

Monitoring (Infrastructure Service)

Process Choreography

Simple and Composite Services

Enterprise Components

Custom Application

Package

Integration Architecture / Enterprise Service B

us

External Applications &

Services

EnterpriseData


IBM Global Services


Enterprise SOA Business Case & ROILarge scale programs for SOA require more planning and justification- May appear to take longer, Higher Risks, Higher Costs- Need an incremental transformation strategy

Higher Benefits of SOA occur at the enterprise level- Small, web services projects provides limited business gains- Large scale implementations will drive strategic, high value impact for the enterprise- Need Governing Program level Architecture to govern technical investments

Need to establish metrics for other tangible and intangible gains- Difficult to justify business case if only on cost cutting - Must also plan for gains from Revenue Generation functions such as multi-channel enablement

Process improvements and reduction of required support (e.g. less calls at helpdesk) Reused servicesDevelopment efficiency and downstream maintenance reductionPlatform simplifications

Need to establish project level process and governance for metrics and estimating models (both forecast & actual) for on going transformation- Incremental projects must have a quantifiable business benefit ,and within each SOA Transformation step- Projects should roll up to program level

Initial budget must include one or more pilot applications - Do not forget foundational shared services projects costs and spread - Cannot burden all SOA infrastructure set up costs to one single project- Some overhead must be included to cover learning curve, reusability assessment & design, addition of new infrastructure, tools, etc.

Don’t forget Costs of integration costs and Costs for Co-existence


IBM Global Services


Scope Analysis is required in early days (and continuously) to ascertain where the greatest value can be achieved

Stra

tegi

c V

alue

econ

omic

val

ue /

ease

of c

hang

e Program ROI Thresh

Lesser Value IIscope too wide to get

organizational tractioncomplexity of requirements and

business structure overwhelms program

Knowing where to ‘cut-off’ depth of enterprise infrastructure is as much ‘art as science’

Lesser Value Iscope too narrow to drive large $

savingsenterprise infrastructure too

expensive for in-scope operationsif scope can’t be expanded, best

tackled through incremental and tactical change

Greatest Valuefocusing on the areas which drive value and are most

likely to be successfulNeed to look across the businesses and consider all

transformational elements (ie imaging, document management, STP, workflow, etc.)

Area of diminishing returns may still be attractive

old

Minimum Transformation

Enterprise TransformationScope of Operations


IBM Global Services


A Program View for SOA Transformation will provide a consistent view of Project Implementation, balancing Value, Time & Costs

DepthOf TransformationExecution Incremental

Project # 1Phase 1

Transformation Program Management

ServicesDefinitions

(from SOMA)

ServicesDefinitions

(from SOMA)

BusinessArchitectureBusiness

Architecture

BusinessComponent

Model(CBM)

BusinessComponent

Model(CBM)

IncrementalProject #2Phase 1

FoundationInfrastructure

Phase1

IncrementalProject #1 Phase 2


Phase3

CommonServicePhase 2


CommonService #2Phase 1



Phase 2Proof of Concept

B Project B

CommonService #2Phase 1



On Dem andOperating

Environm ent

DevelopmentDevelopment

Infra

stru

ctur

e

Man

agem

ent

Infra

stru

ctur

e

Man

agem

entIntegration

Integration

PeopleProcessesTechnologySolution

ArchitectureSolution

ArchitectureTechnical

ArchitectureTechnical

ArchitectureProject

ManagementProject

ManagementGovernance

& Monitoring

Governance &

Monitoring

Proof of Concept

A

Process &Environment

Setup

EnvironmentSetup Tooling

Transformation Completeness


IBM Global Services


Program Management and Governance is key to success

Overall Program Vision need to continuously govern the transformation initiatives- Must manage to Business Case Critical Success Factors

Program Management- Multiple project streams running in parallel will require tighter coordination and management.- Require linkage of high level program management through to project management- Program communication is key- Each initiative need to consider impact on business from organization perspective

Governance- Traceability and follow through of program framework and established guiding principle

Business and IT need to collaborate as a program- Both business and IT need to understand why they are doing this.- Project teams must be aligned with overall SOA vision

Program Infrastructure need to be established, with clear accountability, roles and responsibilities- Program (business stakeholders, executives, program management, project management)- business (business users, business analysts)- Technical team (architect, designers, developers)- Experienced larger scale program management skills required

Iterative development – but make sure you have governance in place first


IBM Global Services


Implementing Multiple, Cross-functional SOA Projects require a disciplined approach

Pilot SOA Project(s)- Must be small, but visible- Business Benefit delivery within 6-9 months with initial launch- Establish measurement & criteria

Establish standard templates and metrics for project business case and estimating methodology- Top down Estimating will provide a quicker estimate for budgeting purposes- Bottom-up estimate will take too long

Do not be tempted to allow different development groups use own estimating methodology“Not invented here” must be discouraged and fully justified

- Include efforts for new service design, development, training for each project

Development Approach, Code Configuration, Tooling, Repository should be standardardized

Need to consider sufficient Infrastructure and Testing Environment across projects and releases- Development- Development Integration Test – Key for multiple component development streams- Systems Integration Test- User Acceptance Test- Performance and Load, - Staging & Production environments


IBM Global Services


A Governance Framework should indicate an organization’s vision for centralized activities at the “enterprise” level, and decentralized activities, at the “Competency” level

1. Strategic Governance is responsible for strategy, funding and setting the direction of the program.2. Technology Governance is responsible for technology aspects from both the enterprise and function

perspectives.3. Services (COE) Governance is responsible for the specific technology view and is generally

TechnologyGovernance and Design Authority

Services (COE)Governance

Enterprise

Strategic Governance

Executive Sponsors

Steering Committee

Program Management Office

Advisory Board

Line of Decentralization

Function orCompetency


IBM Global Services


In order to achieve the desired business benefits, a holistic view needs to be taken. This means a single design authority, an end-to-end design method and overall program management

Des

ign

Aut

horit

y

Build OperateDesign

Programme Management

Common Technical Services

Common Business Services

BusinessProject

BusinessProject

BusinessProject

BusinessProject

End to End Design Method


IBM Global Services


Agenda











IBM Global Services


Successful SOA Implementation must consider all 3 Key Domains –Business Application and Infrastructure

A Technical ArchitectureTechnical Architecture that Facilitates Infrastructure Design and support efficient Operations

An Application ArchitectureApplication Architecture that facilitates Business Solution Design- Focusing on Application Components in the context of Legacy Transformation, Custom Development, and Package Selection

A Business ArchitectureBusiness Architecture that facilitates Business Design- Focusing on Business Components, Process, and Data

Application Transformation

Infrastructure Transformation

Business Architecture

Domain

Application Architecture

Domain

TechnicalArchitecture

andOperations

Domain

Realign key parts of the business around the component model

Re-engineer high impact business processes to support the institution’s

strategies

Insure that the information required across the

organization is timely, accurate and consistent

Provide a consistent vocabulary and vision to support transformation within and across domains

Provide a set of development tools to support the institution

Provide application functions that align with

the business focus

Establish a set of reusable services that support rapid

implementation of business functions

Develop plans to address the incompleteness,

inaccuracies and inconsistencies in the

institution’s data

Provide a flexible technical base for internal and external user access.

Provide technical capabilities enabling

integration of process elements

Provide a flexible technical base supporting institution

access to all data

Provide overall access to and control of the resources in the institutions infrastructure

Provide flexible physical infrastructure through out the institution

Business Transformation


IBM Global Services


There need to be a tight alignment between Strategy, Architectures and Implementation

Enterprise Strategy

Enterprise Architecture

Business Operating Environmentand IT Infrastructure

Prog

ram

foc

usEn

terp

rise

wid

e fo

cus

Strategy

Planning

Design andDelivery

TransitionPlanning

G r o u p I T A r ch i te ctu r e D efin i ti o n

In fr a str u ctu r e D es ig n & P la n n in g

E sta b li sh I T C o m p e te n c y C en tr e

En d U s er In fr astr u c tu re U p g r ad e

In te r -c o m p an y W A N (im p l e. )

O u ts o u r ce N e w C o re s yste m s

O u ts o u r ce H elp d es k a n d D es kto p

O u ts o u rc e n e tw o r k

O u tso u rc ing In it ia t iv e s

C o m p e te n c y C e n tr e In it iat iv es

E lec tro n ic S er vic e D e liv er y

D ata W ar eh o u se

C u s to m e r Se rv ic e C en tr e

WA N i n fra s tr u ct u re

I n tr an e t/ Ma il in fr a st ru c tu re

C us t om e r S e r vi ceD a ta Wa r eh o u s e

Gr a ph i ca l IS

B . U .

B .U .

Do c u me n t Ma n a g em en t

Sy s te ms Ma n ag e me n t

M id d le wa re

NE TW O R K

P la nn ing /D e s ign Init ia tiv e s

In fra s tru ctu re Init ia t iv e s

O th erBu sine ss Un i t S ystem sKio sksTele m etr y s ystem setc

In it ia t iv es fo cu s ed o n m ig r ati n g to th e n e w d eli ve ry en v ir o n m e n t

P lann in g /D es ignIn f ras tru ctu reO u ts ourc ing

In it ia t iv es fo cu s ed o n im p l em en tin g th e vis io n

P lann in g /d esi gnIT C om petenc y c en t re

K e y G ro u p D e c is ion P o in ts

ArchitectureGovernance

BusinessArchitecture

ITArchitecture

AEICorporate

YankeeGroup

SaturnGroup

YarnDivision

KnitsDivision

SenecaPlant

RaleighPlant

CashManagement

Shipping

Accounting

ComponentDesign

Yarn Buying

Order Entry

ComponentScheduling

YarnDyeing

Inventory

AssortmentPlanning

ComponentKnitting

Tagging & Packing

Business

Structure

Business

Locations

Change Programs

Soln Outline Macro Design Micro Design Devt, etc.

Programme ArchitectureG r o up IT Ar c h it ec tu r e D ef in it io n

In f r as t ru c t ur e D es ig n & P l an n in g

E st ab l is h IT C o m p et e n cy C e nt r e

En d Us er I nf r a st r u ct u re U p gr a d e

I n te r -c o m p a ny W AN (i m p le .)

O u t so u r ce N e w C o r e sy st e m s

O u t so u r ce H e lp d es k an d D e sk to p

Ou t s ou r c e n et w o rk

O utso ur cin g In i ti at i ves

C o m pe te ncy C en tre In it i at ive s

Ele ct r o n ic Ser v ic e De li ve r y

D at a Wa r e ho u s e

C us t o m er Se r vi ce C en t r e

WAN inf rast ruct ureIntr ane t/Ma il in fras truc tureCus tom er S erv iceD ata W are hou se

Gr aph ical IS

B.U . B .U.

D ocu me nt M an age men t

Sy ste ms Ma nag eme nt

Mi ddle wa re

N E TW O RK

P l ann in g/ D esi gn In it i at ive s

I nfra struc tu re I ni ti at i ves

O th e rB usi ness U nit S ystem sK ios ksTe lemetr y syste mset c

I ni ti at iv es f o cu s e d o n m i g r at in g t o th e n e w d e liv e ry e n vi r o nm en t

Planning/D es ignInfras truc tu reOu ts ourc ing

I ni ti at iv es f o cu s e d o n i m p le m en t in g t h e vi si o n

Planning/de signIT C om petenc y c entr e

K ey Group D ec i si on P oi nts

Soln Outline Macro Design Micro Design Devt, etc.

Programme ArchitectureG r o up IT A r c h it ec tu r e D ef in it io n

In f r as t ru c t ur e D es ig n & P l an n in g

E st ab l is h IT C o m p et e n cy C e nt r e

E n d U s er I nf r a st r u ct u re U p gr a d e

I n te r -c o m p a ny W A N (i m p le .)

O u t so u r ce N e w C o r e sy st e m s

O u t so u r ce H e lp d es k an d D e sk to p

O u t s ou r c e n et w o rk

O utso ur cin g In i ti at i ves

C o m pe te ncy C en tre In it i at ive s

E le ct r o n ic S er v ic e D e li ve r y

D at a W a r e ho u s e

C us t o m er S e r vi ce C en t r e

WAN inf rast ruct ureIntr ane t/Ma il in fras truc tureCus tom er S erv iceD ata W are hou se

Gr aph ical IS

B.U . B .U.

D ocu me nt M an age men t

Sy ste ms Ma nag eme nt

Mi ddle wa re

N E TW O RK

P l ann in g/ D esi gn In it i at ive s

I nfra struc tu re I ni ti at i ves

O th e rB usi ness U nit S ystem sK ios ksTe lemetr y syste mset c

I ni ti at iv es f o cu s e d o n m i g r at in g t o th e n e w d e liv e ry e n vi r o nm en t

Planning/D es ignInfras truc tu reOu ts ourc ing

I ni ti at iv es f o cu s e d o n i m p le m en t in g t h e vi si o n

Planning/de signIT C om petenc y c entr e

K ey Group D ec i si on P oi nts

Enterprise Architecture= “the city plan”

System Design= “the buildings”

Strategy= “the city’s purpose

& goals”TechnologyAvailability

BusinessOpportunity Business Strategy IT Strategy


IBM Global Services


Transformation Projects must always have line of sight of the Business Architecture and Business Strategy

Example:Key business strategy provide business context for SOA target architecture:- Expectations of Multi-channel, device usage (Portal,

Fat, Thin, Rich, Voice, Wireless, Kiosk)

- Visibility into Business Processes and workflow

- Customer centricity and Segmentation

- Vision and use of Client Information File (CIF)

- Enterprise Document Management- Data management needs & how data are to be

shared

- Reusability vision of business and technology services

- Business Rules Engine as a service

Why the focus on Business Architecture?

A Business Architecture (BA)- Provides the framework that reflects both

current and future business environments

- Identify critical issues and areas of focus for business change

- Guide decisions for use of process, information/knowledge, organization and technology

- Ensures that any tactical decision making is aligned with the overall business goals and objectives

- Provides a business driven framework for subsequent definition of IT Architecture


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A Business Architecture bridges the Component Based Model to Technical Audiences

ChannelsChannels Self-serveSelf-serveAssisted MobileAssisted MobileAssisted ConnectedAssisted Connected

User Presentation ServicesUser Presentation ServicesExternalExternalMobile EmployeesMobile EmployeesEmployeesEmployees

Investment Retirement Planners

Investment Retirement PlannersPersonal

BankersPersonal Bankers

Personal Financial Service Rep


Mortgage Specialist

Mortgage SpecialistClient Admin

OfficerClient Admin Officer

Service Delivery

Service Delivery

Royal Direct

Royal Direct

Rich ClientRich Client Disconnected Rich ClientDisconnected Rich Client Thin ClientThin Client IVRIVR

3rd Party3rd Party ClientsClients

User Interaction and Business ServicesUser Interaction and Business ServicesFinancials & Portfolio Management

Financials & Portfolio Management

Customer ManagementCustomer ManagementSalesSales Fulfilment & MaintenanceFulfilment & Maintenance

Client Communications


Client AnalysisClient Analysis

Client ProfileClient Profile Client ArrangementClient ArrangementClient Acceptance

Client Acceptance

Sales Administration


Needs Assessment

Needs AssessmentSolution Presentment

Solution Presentment

Bank DecisioningBank Decisioning FinancialsFinancials

Information ValidationInformation Validation

Handling DocumentHandling Document

Collateral Administration

Collateral AdministrationCollections & RecoveryCollections & Recovery

TreasuryTreasury

General Ledger & Account Reconciliation


Business Support Services and Enterprise Systems ServicesBusiness Support Services and Enterprise Systems Services

Infrastructure ServicesInfrastructure Services

Thin ClientThin Client








Mortgage Specialist



Service Delivery

Service Delivery

Royal Direct

Royal Direct



User Interaction and Business ServicesUser Interaction and Business ServicesFinancials & Portfolio Management

Financials & Portfolio Management

Customer ManagementCustomer ManagementSalesSales Fulfilment & MaintenanceFulfilment & Maintenance



Client AnalysisClient Analysis

Client ProfileClient Profile Client ArrangementClient ArrangementClient Acceptance

Client Acceptance



Needs Assessment

Needs AssessmentSolution Presentment

Solution Presentment

Bank DecisioningBank Decisioning FinancialsFinancials

Information ValidationInformation Validation

Handling DocumentHandling Document


Collateral AdministrationCollections & RecoveryCollections & Recovery

TreasuryTreasury





Thin ClientThin Client

Business Administration

Business Development Customer Management Sales

Fulfillment & Maintenance

Financials & Portfolio Mgmt

Business Unit Planning Product Planning Financial Planning

External Relationship Assessment Market Planning Asset & Liability Policies

Treasury

Portfolio Tracking

Efficiency Tracking

Valuations

Staff Administration Product Management Client Profile Bank Decisioning

Financials

Non-financials

Compliance & Validation

Handling Document


Collections & Recovery


TradingSolution

Presentment

Fulfillment & Maintenance Planning

Operations Management

Process & Workflow Management

Sales Planning


Client Acceptance

Needs Assessment

Campaign Execution

Relationship Planning

Customer Analysis


Contact Routing

Contact History

Campaign Administration

Product Tracking

Market Research

Mass Communication

Direct

Control

Execute

Business Architectures

Audit & Compliance

Physical Channels Administration

Strategic Sourcing

Develop & Operate IT Systems

Business Architecture provides a bridge from Strategy to Technology Vision

Business ComponentModel provides the Business Strategy


IBM Global Services


Business services can also be described in the context of a specific Business scenario and bridge into a conceptual solutions architecture

User Interaction and Business ServicesUser Interaction and Business Services

Portfolio/Offering ManagementPortfolio/Offering Management


Portfolio/Offering ManagementPortfolio/Offering Management

Portfolio 2Portfolio 2Portfolio 2 Portfolio nPortfolio nPortfolio nPortfolio 1Portfolio 1Portfolio 1

Product ManagementProduct ManagementMortgagesMortgages RCLRCL LoansLoans DepositDeposit InvestmentInvestment

Portfolio/ Offering

Configurator Rules

Service

Portfolio/ Offering

Configurator Rules

Service

Client A

nalyticsC

lient Analytics

Customer Needs, Scoring, Risk Analysis & Segmentation

Service

Customer Needs, Scoring, Risk Analysis & Segmentation

Service

Product Needs

Assessment Service

Product Needs

Assessment Service

Portfolio/ OfferingRecipeService

Portfolio/ OfferingRecipeService

Involved Party ProfileServiceInvolved Party ProfileService

Product Configurator

RulesService

(changeable by business)

Product Configurator

RulesService

(changeable by business)

HLHLPDAPDA

Business

AnalyticsB

usiness Analytics

Enterprise Systems

Enterprise Systems

Portfolio/Offering

Selector Service

Portfolio/Offering

Selector Service

ProductLife Cycle

MgmtService

ProductLife Cycle

MgmtService

Portfolio/ Offering Retrieve/

Activation/ Maintenance/

Closing Service

Portfolio/ Offering Retrieve/

Activation/ Maintenance/

Closing Service

Credit Cards

Credit Cards

Marketing, Sales, Channel,

RelationshipPlanning service

Marketing, Sales, Channel,

RelationshipPlanning service

Portfolio/ Offering Needs

Assessment Service

Portfolio/ Offering Needs

Assessment Service

ProductActivation/

Maintenance/ Closing Service

ProductActivation/

Maintenance/ Closing Service

Product Conditions

ManagementService

Product Conditions

ManagementService

Client CommunicationClient CommunicationClient ProfileClient Profile








Mortgage Specialist



Service Delivery

Service Delivery

Royal Direct

Royal Direct





IBM Global Services


Resulting Business Architecture

Lend MoneyLend Money

Borrow MoneyBorrow Money

Exchange MoneyExchange Money

Move MoneyMove Money

Invest MoneyInvest Money ServicesServices

Manage MoneyManage Money

Protect AssetsProtect Assets

CORE CAPABILITIES

Retail ConsumerRetail Consumer

Private ClientPrivate Client

Small BusinessSmall Business

Mid MarketMid Market

Large CapLarge Cap

Internal customersInternal customers

Branch ATM Mail Telephone

Internet Sales force

Customers

Channels

Shopping forCars

Shopping forCars

New JobNew Job

RetiringRetiring

MovingMoving

New BabyNew Baby GettingMarriedGettingMarried

Starting a Business

Starting a Business

Kids off to University

Kids off to University

Needs

LOBLOB

LOBLOB

LOBLOB

LOBLOB

LOBLOB LOBLOB

LOBLOB

LOBLOB

Organization

Organizational structure is based

on roles, responsibilities

Organizational structure is based

on roles, responsibilities

Syndicated Loans

Syndicated Loans

CommercialLoans

CommercialLoans

PersonalLoans

PersonalLoans

MortgagesMortgages Line ofCredit

Line ofCredit

Letters ofCredit

Letters ofCredit

Credit CardCredit Card

Core Capabilities support multiple products

Process capabilities provide the ability for an an institution to possess core competencies within

Lending Money, borrowing Money etc.

Business Architecture describes the business strategy for a given core competency, and provide the context for further Technical Architecture Decomposition.

12

3

4

5

6

Customer Facing:

- There are multiple customer segments

- Customers have varying needs

- Customers may enter any delivery channel

- Customers expect servicing through their requested delivery channel

Customer Facing:

- There are multiple customer segments

- Customers have varying needs

- Customers may enter any delivery channel

- Customers expect servicing through their requested delivery channel

1244

Institution Facing:

- Institution must develop “Core Competencies”which are in demand by customers

- Institution requires an Organizational structure to manage and control these competencies

- Institution requires internal process capabilities that contribute to building and delivery against these “Core competencies”

Institution Facing:

- Institution must develop “Core Competencies”which are in demand by customers

- Institution requires an Organizational structure to manage and control these competencies

- Institution requires internal process capabilities that contribute to building and delivery against these “Core competencies”

3

5

6

CollectingCollectingMonitoringMonitoringOriginatingOriginating ProcessingProcessing ServicingServicing

Wireless / Mobile / RIM


IBM Global Services


Agenda









7. Special Care with Coexistence and Migration for Existing Applications


IBM Global Services


A Program Level Target Architecture provides a blueprint to govern successful incremental, consistent SOA Project Implementation

DetailedProjectLevel

SolutionArchitecture

Enterprise Architecture

Design/Build/

Integration

DepthOf ArchitecturalAnd TransformationExecution

DetailedProjectLevel


Project levelSolution

Architecture

Design/Build/

Integration

ProjectLevel


Transformation Program Level ArchitectureArchitecture

OverviewArchitecture

Overview

Application ArchitectureApplication Architecture

IntegrationArchitectureIntegration

Architecture

Process MgmtArchitecture

Process MgmtArchitecture

Data / InformationArchitecture

Data / InformationArchitecture

•System Context•Solution Architecture Overview•Use Case List•Project Finer Grained Services•Component Relationship •Scenario Interaction Diagram•Services Model•High level Estimates•Initial Phasing

ComponentArchitectureComponentArchitecture

Guidelines & Principles

Guidelines & Principles

InfrastructureArchitecture

& Operational Model

InfrastructureArchitecture

& Operational Model

Project levelSolution

Architecture

ServicesDefinitions

(from SOMA)

ServicesDefinitions

(from SOMA)

BusinessArchitectureBusiness

Architecture

BusinessComponent

Model(CBM)

BusinessComponent

Model(CBM)

Transformation Initiatives Completeness


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The On Demand Operating Environment (ODOE) provides a framework for the technology architecture

Application Services

Business FunctionServices

Business Support Services




InformationManagemen

tServices

Process Management

Services

Third Party

Enterprise Information

Systems

Middleware Services

User Interaction Services

Integration Services

Channels

PDA

Mobile


BusinessServices

BusinessServices

BusinessServices

BusinessServices

Utility Services

Enterprise Services Bus


IBM Global Services


Mortgage Architecture OverviewChannels

PDA

Mobile

Credit

Bureau

Third PartyLaw

yer

MiddlewareServices

Application ServicesBusiness FunctionServices

Business Support Services

Enterprise Service Bus


Utility Services


Peering SettlementBillingMetering Services

Workload Services Configuration Services

Security Services

Problem Manageme

nt

Server Storage Resource MappingNetwork

Rating

Availability Services


InformationManagement

Services

Integration Services

Security ServicesEncryptionAuthentication Authorization Non-Repudiation Firewalls User Management

Process Management

Services

LoggingApplication

AlertsCachingTransactionManagement

Session Management

Enterprise Information

Systems

AuditingBusiness Activity

Monitoring

Anti-Intrusion



BusinessServices

BusinessServices

BusinessServices

BusinessServices

InformationManagement

Services

Business Connections JCA, JDBC,

JMSWeb

Services

Mediation Events TCP IP/SNA

Dataflows

Client Profile

Content Manager

Reporting(management)

Reporting External

Data Management

DataMovement

Metadata Services

DataRecovery

Loan application

Email

Printing

MortgageCollaboration Open

RenewRefinance

Score

RulesGetMortgageConditions

Match

Credit Application

CRUD Services

Document Assembly

NBSM

SRF

CRM

TransactClient Profile

Sales Session

Lawyer Portal

PVR

URF

Credit Application

Publish –Subscribe

Cross-Referencing

EDW Services

ODS Services

Application Connectivity Services


IBM Global Services


A Prescriptive Technical Architecture Model and Templates are key for Development Consistency

Solution Architecture Models must be prescriptive and implementable• Include Application and Infrastructure levels • Technical Architecture need to be specify how to apply the model and technology• Include guidance on how to support the functional needs of projects in the enterprise• Consistent use of object modeling• Maximize reusability across all layers• Provides consistent application design templates that supports the business in a cost

effective , operationally efficient wayExample:

Services Accessible to User Interaction Tier


Client ChannelsSmart Connected

ClientSmart Mobile

Client

Smart Connected Serv Provider

Thin Client Serv Provider

Smart Mobile Serv Provider

Entterprise Infomation Service Provider

BusRules

Micro Process

Macro Process

Thin ClientExternal Requestor

Infomation Management Service Provider

Business Function or Business Support Service Provider

invoke

eventInvoke

invoke

invoke

invoke

event

invoke

event

event

invoke

event

event

Human Workflow

Process Automation-1 Process Automation-m

Service-1-1

Service-1-i

Service-n-1

Service-n-j

Service-n

Business Function ServicesBusiness Support Services

Enterprise Information Servicesor External Systems

Process Management

Request

Response/E

vent

UserInteractionServices

Proc

ess

Task

Man

agem

ent

Interaction with Business

and Support Function

DatabaseInformation

Management Services

From BusinessFunction or

SupportFunctionServices

Rules

RulesEngine

Enterprise InformationSystems

FromEnterpriseInformation

Services

Other ExternalProcesses or

Systems

Template for Workflow and Process-Oriented Application

Template for Multi-channel AccessApplication


IBM Global Services


SOA Operationalization require Architect and Technical Teams to possess new skills

The SOA Architecture team at the program level require different skill sets- Must be able to understand the broader business picture, the different SOA layer,

and how they interact

Enterprise Architecture and Design authority must be continuously involved in the SOA Architecture design and implementation

Need to have Transformational Architecture competencies- Implementation Experience is important - Pragmatism over ‘purist’- Need people that has done it before- Require depth in particular technologies- Understanding of reference architecture and patterns- Business Domain Knowledge are important as SOA requires much more business

context- Need more Systems Integration Experience and skills- Understanding of Operational and Non-functional Requirements-

Architects require consulting, presentation & selling skills- Sustaining transformation program require conscious and continuous selling to the

business


IBM Global Services


Agenda




2. Understand your Business Strategy

3. Build a SOA Transformation Technology Architecture




7. Special Care with Coexistence and Migration for Existing Applciations


IBM Global Services


Putting it all together—SOA Implementation Phasing


BusinessFunction Services

CommonIT Services

Information Services

Identify required capabilities and initiatives

Determine future state

Develop Phasing Roadmap

Scope and Comprehensiveness of Services

Dom

ain

of C

apab

ility

Cross-domain enablers

Cross-domain enablers

Customer Business Goals and Imperatives

Implementation Phasing Development Thought ProcessThis analysis identifies current states and desired target states based on business goals. Incremental roadmaps are developed to achieve these states.

Assess current state


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Business Focused SOA Implementation Roadmap Considerations

Do simple scenario first and add-on complexity vs. most complex scenarioFoundational components must be done SOA Infrastructure need to be

added incrementallyAdding or dropping functions/projects must understand inter-

dependencies

Pragmatic vs. “boiling the ocean”

Must take into consideration business and technology infrastructure already in place Coexistence & Migration costs and efforts should not be overlooked

There is no “pure SOA”green field installation

Keep track of project status and continue to fine-tune expectationsEstablish key milestones & expected outcome, entrance and exit criteria

Project Status & Expectation Management

Cross referencing service components needed for each project, inter-dependency of projects need constant validations

- Be careful when spreading cost and value of common services components across projects – may lose estimated efforts

- Pure SOA infrastructure Service interspersed with Transformationprojects that can bring value

Cross Reference Services for each project

Roadmap must be synchronized with other sustaining business initiativesSynchronize with otherEnterprise Initiatives


IBM Global Services


Agenda









7. Special Care with Coexistence and migration for non-interrupted business


IBM Global Services


Reusing Services for multiple projects require thorough planningand decision process

Need to analyse behavioural requirements of the candidate application contexts at the same level of detail.- Business Processes (e.g. Loan Origination, Request to

quote) - Business Services (e.g. Pricing engine, Product

configurator)- Embedded Services (e.g. check price, check availability)

Bottom up approach - Faster initial deployment- Fine-grained services & code requires thorough

planning- What it will be used for- How it is to be done

- Difficult to instill flexibility in the wrapper for all situationsTop down approach

- Must combine with an overall architecture to guide the decision

- Start with coarse grained business processes- Will provide higher probability of reuse

Systems Management and Security of Service components also critical- How to monitor the services?- How to roll back and recover when business process if

spread over multiple services?- If monitored at too low a level, can be very expensive

Source: Organic Business, Forrester Research


IBM Global Services


EXISTING SYSTEMS

LEGACY 1LEGACY 2

GET IP…

…

…

……

PROCESS ACTIVITIES

BUSINESS SERVICES

INTERMEDIATE SERVICES

BUSINESS PROCESS

EVAL. CUST. RELATIONSHIP

RETRIEVE I.P.

…

GATHER CUST. DETAILS

EVAL CUST. REL.

iD CUST. REQMT. …

Fast Track to Design Reusable Process Components


IBM Global Services


Reusability Analysis Process and Relative Accuracy in the Project Lifecycle

In order to develop potentially reusable services, a business application project should perform the following process:

1. Identify Services (employ SOMA analysis techniques)

2. Categorize Services3. Identify Reusable Services (via Decision

Model)4. Identify Appropriate Build Strategy for

Reusable Services (via Decision Model)5. Develop Reusable Services as per build

strategies.6. Integrate Services7. Test and Deploy

Accurate service identification truly begins in the Analysis and Design phaseEach reusable Service should have its own Transformation Strategy


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Buy vs. Build vs. Refactoring of Service Components

Pre-requisite : Avoid Jumping into Coding!!Factors for driving Buy / Build/ Refactor Decisions- Total Cost of Ownership

Design and Development Costs- Application Architecture- Application Functionality

Integration CostsTrainingMaintenanceSystems Management & Operations cotsLicenseOpportunity Costs

- Amount of ReuseEnterprise / Departmental / Project level of Reuse

A Hybrid approach will probably be the most likely scenario


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Services Reuse and Transition Considerations

What is the lowest functional services that can be created and used by the various business componentsWhat is the next phase services (enhanced functionality) and when is the

best time to deploy?How to deploy these services without impacting production operations of

multiple processes?How does a business process decide when or how to adopt?

The Services defined need to have its own transition strategy

Too much exception process may also kill your reusability schemeDo not only consider happy path

Multiple processes and multiple applications will need attention to governance, technical specifications, and full end to end considerations.Need to consider how services design can accommodate changing

business requirementNeed to consider traceability of all servicesOnce identified all services, need to have a way to group, regroup and re-

aggregate to be used in multiple projects

One time deployment on a single application is simple

Versioning and configuration management of services & services cataloguePerformance, system testing and regression testing implications need to

be understoodTesting & Performance

Consideration


IBM Global Services


Agenda











IBM Global Services


Process Choreography is one of the most powerful concepts to support an SOA Composite Application

Process choreography essentially knits together processes executing in a SOA infrastructure, such as process execution engines and applications that encapsulate process, to provide an end-to-end view of a business process.

Business TransactionShort term, non-interactiveOne change of business state Consumes one or more enterprise serviceTargeted level of service reuseLoose coupling importantMay require compensation

Function ServiceCollaborations to implement a single web serviceCollaborating apps encapsulated via web servicesPerformance favored over loose coupling

Business ProcessLong runningOne or more persons interactingMultiple valid business process statesAlternative workflows for non-normal conditions

Member Requests an Rx Refill (Call Center IVR or Online)

Request Denied Rx Dept

Processes RefillPC Physician

Approves or Denies Request (WS or Email)

Member Informed that Refill is Ready

Validate Member is Authorized to Make Request

Determine Member’s Coverages and Primary Care Physician

Send Request Notification to pharmacy

Send Request Notification to Notes

Patient Records

Member Informed that Request has been Denied

Request Approved

WS Enabled

Not WS Enabled

CreditVerification

Office Schedulin

g

Email System

Authorization ServiceEmail Service

Outpatient ServiceMasters Service

HR


IBM Global Services


Business Process Management Implementation for SOA ConsiderationsDecide whether you need business performance monitoring, or workflow BPM enables easier transition and workflow but not a silver bulletBPMS provides the Business monitoring and simulation functions for

business

Business Process Management and BPMS are not the same

May force high level of custom code and very expensiveNot just a workflow managerRequire careful analysis of legacy application if plan to use in parallelShould not custom built Integration code Use Standard Integration Software, out-of-the-box tooling and standard

API open standards preferred

Do not use BPM as Integration hub

Some BPM tools require more custom coding

Synchronization problems caused - Forward State Management to BPM is easier- Reverse State Management (to update legacy systems) is very

difficult and may cause data integrity issues Make sure you BPM provides compensation transaction function

Adapt a progressive workflow strategy- Only automate what you must. Keeping something manual is OK- Do not try to choreograph to too fine-grain (unless you understand

how you want to manage it)Use of ISV packages does not make BPM work easier

Adopt a progressive workflow strategy

Understand where is the control between the new flow and the old application flow

Development concept very different than traditional application development

Do lots of prototypes before commiting designs


IBM Global Services


Full STP

Progressive STP

A Proven Successful Workflow Strategy takes a route of end to end management control before turning to progressive complexity

Refine and Extend Key Processes with defined Benefits, Service Oriented Processes

Progressive Selection of Straight Through Processes, Optimize Flow

Maximize Automation

Intermediate Automation

Recommendation:•Light-weight workflow deployment and progressive STP (Straight Through Processing) to maximize benefit realization, process efficiency and reusability

•Rationalization of cross product business process rather than specific product processes (e.g. Open Process)•Consistent use of utility processes (e.g. Document Capture process) for cross product process reuse •Rules and Business Logic to be associated with process components•Business Benefits analysis before jumping to automation

Process Re-design / Simplification / Reusability Design, Business Modelling

Workflow Lite

Process

Process MonitoringProcess Monitoring

Process MonitoringProcess Monitoring

T e c h n o l o g y

P r o c e s s M o n i t o r i n gP r o c e s s M o n i t o r in g

P ro c e ss M o n ito rin gP ro c e ss M o n ito rin g

P rocess M on ito ringP rocess M on itoring

Technology

Process MonitoringProcess Monitoring Process MonitoringProcess MonitoringT e c h n o l o g y

P r o c e s s M o n i t o r i n gP r o c e s s M o n i t o r i n g


IBM Global Services


Rules Engine Implementation for SOA Considerations

•Not always feasible to externalize rulesRules are mostly embedded in code

May need different rules strategy and tool for different rule typesRequire careful categorization, Maintenance strategy

Competing workflowMay have several specialized rules engine (e.g. Product Configurator

Rules Engine, Rating Rules Engine, Decision Engines)

Some rules engine have BPM workflow engines attached to it (and vice versa)

Business Rules usage and deployment strategy central to SOA transformation

Each process can involve lots of trips to the rules engineMay cause too many hops and multiple points of failure

Performance considerations for using Rules Engines


IBM Global Services


Agenda











IBM Global Services


Incremental Transformation of Monolithic Applications require extreme care

Breaking up an Existing code is harder than expectedLegacy code generally not modularized- Including Client/Server and 1st Generation OO technologies

Big Bang Conversion is not possibleIncremental Transformation require old and new systems to co-exist and work together for a long time- Navigation between old screens and new screens within a process difficult (e.g. in

case of Account Open which is part of highly intertwined processes)- Keeping state between old and new systems is important but has to be selective - Extracting single process out of old app. is very difficult

Do not rush out to get a tool- There is no perfect code generators - converting bad code to a new bad code is not recommended- Use of a Business Process Engine and a new UI may help- Use of a tool to help with Application Mining is also helpful

Have to do focused mining Do not expect the tool to do it all


IBM Global Services


Summary










IBM Global Services


Thank You !

Documents

IBM SOA Customer Experience Sharing - Operationalizing SOA ... · Best Practices for Operationalizing SOA Business Transformation 1. Take on a Program Approach for your SOA Implementation