Leveraging IBM:

Products, Technology and Services

Business Performance Optimization

Kevin Maier, Business Development Manager

Business Performance Service Optimization team

IBM Software Group

Ljubljana, Slovenia

Agenda

Defining the Business and IT landscape

Customer scenario

Aligning Business and IT

Why IBM?

Beyond SOA, why and how

Questions and Answers

• Business driven project– Driven by validate business goals

– Increase market share, revenue, new function, etc.

– Increased flexibility to respond quicker

– Considered cornerstone of SOA

• IT driven project– Cost reduction, HW, SW, footprint

– Technology refresh, skills, standards, compliance

– Spending the budget, maintenance

– Sandbox studies

• POTs, POCs, Pilot Projects, Production

Customer Scenario

Over the years, evolving business needs had caused this customer to gradually construct a complex, inflexible application architecture which resulted in the inability to have access to an enterprise wide view of products and customer data, and new projects often taking more time and resources than were necessary

IBM engaged on consulting and services to implement ESB and related technologies

To begin unifying its disparate applications and data, the customer embarked on an SOA initiative to implement an enterprise service bus (ESB).

To further streamline its business processes, the customer implemented Business Modeler software which delivers a centralized view that helps them identify inefficiencies in existing processes and create improvements through new models.

WebSphere Registry and Repository (WSRR) product created thru field based development with Ad Tech team to fill a void in the product portfolio.

Accelerated product availability, early skills and integration into new solution.

Deployment was incident free

The SituationOver the years, evolving business needs had caused Toyota Motor Sales (TMS) to gradually construct

a complex application architecture comprising disparate sets of Common Business Oriented Language (COBOL) applications, BEA WebLogic servers and portal applications, and other software products.

The applications and their corresponding data sets had been configured to act independently, meaning that TMS didn't have access to an enterprise wide view of vehicle and customer data.

The architecture had a low level of flexibility, and new projects often took more time and resources than were necessary to complete.

To resolve these issues, TMS needed a solution that would improve the way it managed information and promote stronger integration between its applications and processes.

The SolutionTo begin unifying its disparate applications and data sets, TMS embarked on an initiative to implement an enterprise service bus (ESB) .At the heart of the ESB solution is WebSphere MQ software, which acts as the reliable backbone that establishes universal connectivity between

the applications, routing a staggering total of 6,000 messages per minute. Information and data sets flow seamlessly between applications and systems, thanks to the WebSphere Message Broker for Multiplatforms

software, which translates messages into a common language and routes them to the intended system. Tivoli OMEGAMON XE for Messaging software bolsters the reliability of the solution by monitoring all messages delivered through the ESB. To further streamline business processes, TMS implemented IBM WebSphere Business Modeler V6 software. The application delivers a

centralized view that helps TMS identify inefficiencies in existing processes and create improvements through new models. The client plans to use the WebSphere Business Modeler software to increase business process efficiency in distribution, port management and dealer management. 

The Business Benefits

By implementing a robust ESB built with IBM WebSphere and IBM Tivoli software, TMS has enabled a unified view of its enterprise that will facilitate fast, efficient access to critical business information, and help streamline business processes. With near-real-time access to information, the client can provide quick and accurate responses to customer inquiries. And the solution's flexibility will allow TMS to quickly integrate partners and dealerships, enabling better access to information across the extended enterprise. No longer hindered by an inflexible application architecture, the client can respond to market changes and new business opportunities with speed and agility.

The IBM WebSphere software provides a reliable, available platform that effectively establishes integration and can be used in the future to act as the framework for a service-oriented architecture (SOA), which will allow the client to establish reusable Web services. Using IBM Tivoli OMEGAMON software, TMS can make adjustments to the ESB to ensure that systems are communicating seamlessly.

In addition to being highly satisfied with the robustness and effectiveness of the WebSphere and Tivoli software, the client was also pleased that

IBM was able to deliver an end-to-end solution that will effectively lead the company into the future.   

SOA Business and IT Success

Thialand Bank

SOA Driving Success for customers….

Aligning Business with ITSOA

Day 1

Welcome , set expectations &

Technology overview

BPW Delivery flow & recommended roles & participants

Day 2

Methodology overview & Business overview

Day 3

Final select , the target Business process &

Technology & Business match

Day 4

IBM internal day , analyze the first results

and compile first conclusions

Day 5

Checkpoint on gathered data, present first results

and define next steps

Next 2 weeksReport Writing and Reviewing

PDW closure

Customer formally accepts the BPW Report and agrees

on next steps

Participants Day 1 Participants Day 5Participants Day 4 Participants Day 6 Participants Day 7Participants Day 3Participants Day 2

IBMBD /EM

ArchitectLocal representative’s

CustomerProject SponsorBusiness LOBBusiness Mgr .

Technical leadTechnical team

Business PartnerTechnical leadBusiness lead

IBMBD/EM

ArchitectLocal representative’s

CustomerBusiness LOBBusiness Mgr .Business Team

Technical leadTechnical Team

Business PartnerTechnical leadBusiness lead

IBMBD /EM

PMArchitect

Local representative’s

Customer

Business PartnerTechnical lead

Business lead

IBMBD /EM

PMArchitect

Local representative’s

CustomerProject SponsorBusiness Mgr .

Technical lead

Business PartnerTechnical lead

Business lead

IBMBD/EM

ArchitectLocal representative’s

CustomerBusiness LOBBusiness Mgr .

Business Team

Technical lead

Business PartnerTechnical lead

Business lead

IBMBD /EM

PMArchitect

Local representative’sDraft Report Reviewer’s

CustomerDraft Report Reviewer

Business PartnerTechnical leadBusiness lead

Draft Report Reviewer

IBMBD /EM

PMArchitect

Local representative’s

CustomerProject SponsorBusiness Mgr .

Technical lead

Business PartnerProject Sponsor

Note: The above is a sample Business Pilot Workshop outline. Note: The above is a sample Business Pilot Workshop outline. This is a preferred workshop for aligning Business and IT.This is a preferred workshop for aligning Business and IT.Note: The above is a sample Business Pilot Workshop outline. Note: The above is a sample Business Pilot Workshop outline. This is a preferred workshop for aligning Business and IT.This is a preferred workshop for aligning Business and IT.

Why IBM?

49% Hardware

7% Other

17% Services

27% Software

$62 Billion Revenue

1993

$91.1 Billion Revenue

17% Software

27% Hardware

1% Other

52% Services

3% Finance

2005

49% Hardware

7% Other

17% Services

27% Software

$62 Billion Revenue

1993

$91.1 Billion Revenue

17% Software

27% Hardware

1% Other

52% Services

3% Finance

2005

Over the past 15 years IBM has made a major transformation from a hardware company to a services led business

52%

25%

20%

3%

Global Services

Hardware

Software

Global Financing

98 years in business

Over $91B in sales, 52% from Services

Over 320,000 employees

Full service provider of Business and IT solutions

IBM is Truly a Provider of Enterprise Solutions

World leader in IT services and consulting, with 198,000 services professionals worldwide

World leader in patents for the past seventeen years

Major supporter of Open Standards

Significant leadership in IT Standards Organizations

Incorporates standards in software and as part of consulting engagements

IBM Research – with eight labs worldwide, we have more than 3600 Researchers

high performance/low power VLSI design and tools, system-level power analysis, and new system

architectures

VLSI design, verification technology, storage subsystems, e-business and security, computer systems, programming languages and environments, advanced applications, applied mathematics, multimedia,

and service technologies

software technology, systems technology, pervasive computing, Internet technology and

applications

semiconductors, physical & computer sciences, Life

sciences and mathematics

electronic commerce, media mining, fingerprint matching, speech recognition, weather forecasting and wireless

networks

ZürichBeijing

Austin Delhi Tokyo

communication systems, computer science, selected science and technology projects, and industry solutions and services

research

language processing, speech & handwriting recognition, pervasive computing, mobile computing, multimedia, and e-business

technologies & solutions

computer science, database, user interface, web software, storage systems software & technology, physical sciences, materials science, nanotechnology, life sciences, services

research

AlmadenWatson

Haifa

Why IBM…our key differentiators

• On Demand Services• Reach-back – Behind every

IBMer there are thousands of resources available

• Open Architectures & Open Standards - “we are agnostic to solutions”

• Largest Integrator of ERP & COTS

IBM – “We want to solve yourmost difficult problems”

• We transformed ourselves– SCM & Distribution

– Workforce & Knowledge Management

– Lean Six Sigma & Component Business Model

• Our solutions are built on innovation & best commercial practices; supported by Services Oriented Architectures

Beyond SOA, why and how

In 2010 we will continue our focus on business agility which is the top priority of business leaders

17

“The key to successful transformation is changing our mind-set. For large companies, it is easy to be complacent-we have to change this. Our company culture must have a built-in change mechanism.” - Masao Yamazaki, President and CEO, West Japan Railway Company

*Source: IBM, 2008 Global CEO Study

“We have seen more change in the last ten years than in the previous 90.” - Ad J. Scheepbouwer, CEO of KPN Telecom

*Eight out of ten CEOs said their organizations will be facing substantial or very substantial change over the next three years.

• The latest market opportunity is based on the complete convergence of SOA and BPM

• We will execute against this opportunity in tight lockstep with GBS and will focus our efforts on driving references, building skills, and the creation of hardened solution assets

• Key to this execution is the creation of a Business Performance and Service Optimization Center of Excellence, which will reside in GBS and be strongly supported by SWG

To do that we are bringing a new level of intelligence to our clients targeted at their existing business processes and integrating new capabilities like business rules, events, monitoring, and simulation to drive an increased level of Business

Performance

SOABPM

Business Performance & Service Optimization

+

By design SWG has acquired new capabilities on top of our BPM and SOA foundation that when snapped together drive new levels of capability positioning us for immediate leadership

CrossWorlds

Process Automation & Integration

Jan 2002

CrossWorlds

Process Automation & Integration

Jan 2002

Holosofx

Business Process Modeling and Monitoring

Sept 2002

Holosofx

Business Process Modeling and Monitoring

Sept 2002

Trigo

Information Integration

April 2004

Trigo

Information Integration

April 2004

Cyanea

Problem Determination

& Performance Monitoring

July 2004

Cyanea

Problem Determination

& Performance Monitoring

July 2004

Webify

Composite Business Service Delivery

Aug 2006

Webify

Composite Business Service Delivery

Aug 2006

AptSoft

Business Event Processing

Jan 2008

AptSoft

Business Event Processing

Jan 2008

ILOG

Business Rule Management, Optimization, Visualization, SCM

Jan 2009

ILOG

Business Rule Management, Optimization, Visualization, SCM

Jan 2009

Lombardi

Businesses User-centric BPM

Jan 2010

Lombardi

Businesses User-centric BPM

Jan 2010

Business Performance and Service Optimization

Business Performance and Service Optimization

FileNet

Enterprise Content Management

Oct 2006

FileNet

Enterprise Content Management

Oct 2006

Cognos

Business Intelligence

& Performance Management

Jan 2008

Cognos

Business Intelligence

& Performance Management

Jan 2008

Software

Skills &Support

SOA FoundationSOA Foundation BPM FoundationBPM Foundation

Level 2 Awareness

Some level of documentation and automation of human tasks. Execution is not traceable to strategic objectives.

Level 1 Initial

Business is ad-hoc and variable. Success depends on individual and heroic efforts. Metrics are not available or ignored.

Level 3Standardized

Business Processes are standardized, visible, accessible, and reusable. Business performance metrics are monitored and measured. Governance models in place for process improvement.

Level 4Agile

Business users can make frequent and regular business changes (processes, information, rules, or events). Agile operating model in place that responds to changing business strategy. Business can make frequent changes. Business performance is measured and updated for continuous improvement.

Level 5Dynamic

Agile operating model in place that responds to changing business strategy. Business and IT can make frequent changes as IT model represents how business works. Dynamic and context aware processes and services leveraging rules and event processing. Digital simulation of business models.Business

Value

Maturity

But our clients will require a clear execution roadmap to be successful as we continue advancing the art of the possible

Questions ?

Hvala!