Transcript Document

If SOA* is the answer, what’s the question?
Is it being Adaptative & Cost Advantageous by using new technology?
Or
Creating market Value and Differentiation for the Business?
Andy Mulholland
Global CTO, Capgemini
* Service Oriented Architecture
1
Some points to consider…. and hopefully answer!
• Why are ‘Services’ a recognisable ‘new’ technology wave
• Can we identify a ‘common’ thread or even market
• More importantly is there real Business value in this
• Where are the compelling circumstances
• How and where do you focus to start
• Plus a selection of popular terms;
– Architecture, SOA and SOI
– Open Standards
– Open Source
– Etc
• This not a presentation on the detail of the Technology
but on its application to Business benefits
2
The puzzling disconnect between home and work
The Business Manager
•
•
•
•
•
What are your business ‘services’
How do they differentiate
Who are your customers and suppliers
What are your competitors doing
Your strategy to create success and ‘value’
The Home Internet User
•
•
•
•
•
Finding possible choices
Comparing the options
Listing favourites and registering
Checking out news
Getting better value and wider benefits
3
The
& Web
moves to become Business Technology
TheInternet
Next Major
Transition
CLIENTSERVER
MAINFRAMES MINI-COMPUTERS
1960
1970
PC
1980
SERVICE-ORIENTED
INTERNET
1990
2000
2010
The Service Oriented Enterprise operates using;
• Software and data as services
• Hardware as virtualized resources
• Autonomic data sources
• Occasionally connected usage
• Services that cross firewalls
• But still utilizes existing legacy systems
An Intel diagram of explanation
4
Times and possibilities have and are changing….. fast
• Open Standards;
– a reality, developing faster, supported of by
technology industry and users
• Open Source;
– a mainstream method for sharing common
software and software licence reform
• Open Convergence;
– of technology vendors and users to design
new types of interactive process flows
Key Standards for SOA
• Web Services Definition Language (WSDL)
• Simple Object Access Protocol (SOAP)
• Business Process Execution Language (BEPL)
• Universal Description Discovery & Integration (UDDI)
• Web Service Choreography Interface (WSCI)
• Blocks Extensible Exchange Protocol (BEEP)
• Web Services Addressing (WS-Addressing)
• Security Assertion Markup Language (SAML)
A new technology wave?
• Web Services Distributed Management (WSDM)
• Web Services Trust Language (WS-Trust))
Five of the Ten Most Influential Players in Open Source
Source; Information Age Summer 2005
5
Bridging the disconnect using Business Service examples
Think of the Low Cost Airline vs. Traditional Airline
The connection of the external market for seats and demand to the internal fulfilment with dynamic pricing
Horizontal integration by Process (Service Oriented)
Vertical integration by Data (ERP and EAI)
Think of Choosing on Amazon vs. a Mail Order Bookshop
The ability to view pages in any order to make the process of choice and to read market comments on topics
Choose your own Process (Service Oriented)
Be driven by their requirements (Application)
Think of the Scalability of eBay
120 million users sharing, building and changing processes as and when required with no centralised dependencies
6
Service-Oriented Enterprise
External
Information
External
Actions
Service Oriented
Architecture and
Business Process
Service-Oriented Business
Orchestrating Business Value through Services
Service-Oriented Applications
Orchestrating Software and Data as Services
Service-Oriented Infrastructure
Orchestrating Virtualized Resources
Sensor Technology
Automating Data Collection
Collaborative
optimization
Direct business
value capabilities
Improves flexibility
to "adapt"
Reduces "fixed"
operating cost
Automates data
capture
7
IT does Matter; new areas of value and differentiation
Back Office Applications for ‘Cost’ based automation
versus Front Office ‘Services’ for accessing Business ‘Value’
Competitor
#1
Cost to Provide
Traditional
Applications
Comparison
between Back Office
Operating Costs
Competitor
#2
Value
Captured by
New
‘Services’
Opportunity
Externally
Identified
Competitive
Differentiation in
Responding to Opportunity
Value
Cost to Provide
Captured by
Traditional
New
Applications
‘Services’
Market
Sales
Prospect
Opportunity
Externally
Identified
8
Different People and Reasons for adopting ‘Services’
Market
Back Office
Front Office
Market
Opportunity
Sales
Revenues
And Profit
CFO and CIO
COO & Business Mgr
CEO and COO
Traditional Transaction
Recording Apps/ERP
Business Operating
Efficiency Activities
Shareholder value
Strategic Positioning
Internally focussed on
Automation of Data Mgt
Internal & External
Focus on Information
Market and Ecosystem
Competitive advantage
Cost driven using SOI
Effectiveness driven SOA
Value Driven SOE
9
The ‘edge’ and ‘inter-business’ works differently
Bad News
BIG
B2B
Exchanges
Business
Business
• Large inflexible structures
• Funded by Millions of $
• Monolithic functions
• Supported by big names
• Big investments
• Extension of existing Business
model
IT and MIS
LongMIS
running Projects
IT• and
• Big
ie ERP centric
• applications
Monolithic Application
• Overall• infrastructure
i.e; CommerceOne
• ASP – application service
provider
GoodAny
News
eBay
to SMALL
Any Exchange
Business
Business
– Small agile market based units
• Market place defined by
– Flexible
attributed process
participants
– Small
investments,
payoffs
• Volume
createdquick
by users
• New processes created by users
IT and
• MIS
To suit circumstances
– Small self contained projects
WebMIS
Services
IT– and
– Shared
infrastructure
• Web
Service Architecture centric
•
•
Built in small pieces as required
Orchestration is used to support
endless dynamic change
Internet Connected; Web Service Standardised;
Enterprise Business Vision; User Services Defined
10
… and its already raising many of the current challenges
Need for more flexibility
• Multichannel strategies
• Time to market
• Mergers and de-mergers
Unsupportable Dependancies
• Increasing amount of ‘spaghetti’ linkages
• Too much of the budget spent on maintainance
• Difficulties in staffing for support of legacy systems
Continued cost reduction plus Compliance support
Integration of Web-based channels
• Enterprise portals are no longer stand-alone
• Connection to legacy systems is difficult
• Online systems ‘crash’ with external visibility
Cross-functional processes
• ERP systems have created new ‘silos’
• Need for adaptative processes
• Increasing use of external ‘partners’
Demand for ‘New’ IT services
•
•
•
•
•
•
•
•
Collabration
Communication
Information
‘Services’
Global Data Sync
Mobility
Messaging
....
11
Services offer four compelling reasons for implementing
Number 1 – technology costs and creating ‘Adaptive IT’
• Cost Reduction of Existing IT operation
a technology driven activity of rising popularity over the last few years
– Creation of a common and shared infrastructure to reduce ‘fixed’ costs
= SOI
• Server Virtualisation, Storage Area Networks, …
– Delivery of a complex requirement in a more effective lower cost manner = SOA
• Wide spread adoption of ‘architecture for solutions and enterprises
Legacy
Web
POS
SAP
SAP
PoS
Web
ER
P
Logistics
Legac Logistic
y
s
12
Services offer four compelling reasons for implementing
Number 2 & 3 – Business Value from Market activities
• Strategic Business Advantage; ‘Inside- Out’
A first movers advantage created by seizing a new market position
– The Walmart or Dell positioning at the centre of a ‘joined up ecosystem = SOE
– Creating extended processes that connect ‘Inside’ procedures to ‘Outside’ enterprises
• Tactical Business Advantage; ‘Outside –In’
Responding to the impact of a first mover by joining their ecosystem
– A supplier to Dell or Walmart joining the ecosystem to gain more business
– Connecting procedures from an ‘Outside’ customer to ‘inside’ procedures
The Keystone Advantage
A Harvard Business Press Book
The Keystone supports the arch
A Feature stone attracts
Attention to the arch
A Niche stone is valued
for uniquely fitting
The Foundation stone can
supports multiple arches
13
Lets get Imaginative – a car manufacturer and ‘Inside – Out’
X Motors Manufacturing
X Motors
accessories manufacturers
community
X Motors
Service
Dealer
14
Services offer four compelling reasons for implementing
Number 4 – A Transformational Business Strategy
New Entrant
“New player in a mature industry”
Build SOE platforms from
scratch,
leverage
Do
they
do
Do what
what
theyalliances
do –
–
and cheaper
virtuality (web)
to bust
&
better
cheaper
& scratch,
better
Build process
SOE platforms from
leverage
the
paradigms
of
alliances and virtuality (web) to bust the process
the industry
paradigms
of the industry
Enterprise
Maturity
customers, change as they
Innovate
–
change,
based
on a fully
Innovate
– faster
faster
than
the
others
service
oriented
Process,
than
the
others
Stay close to the customers, change as they
People
&aIT
change,
based on
fullyplatform
service oriented
Process, People
& IT platform
(“Totally
Adaptive”)
(“Totally Adaptive”)
“Established player in a mature
Select sub-processes
in
industry”
specific replacement
lines of business
Gradual
for
Gradual
replacement
for
and
geographies
for SOE
cost/scale
advantage
cost/scale advantage
migration, extend and
integrate on a “proof-ofreturn” basis
Select sub-processes in specific lines of business
and geographies for SOE migration, extend and
integrate on a “proof-of-return” basis
Legacy
“NewStay
player
in an emerging
close
to the
industry”
“Established
an
Configureplayer
newentering
lines of
emerging industry”
business
fornew
massive
Release
the
Release
the
new from
from
startup
on
“pure”
SOE
the
legacies
of
the
old
the
legacies
of thewith
old
platforms,
interface
Configure new lines of business for massive
startup on “pure” SOE platforms, interface with
legacy and push change towards the center
legacy and push change
towards the center
Industry
Maturity
Emerging
15
What the IT element?
16
Today‘s IT landscapes built for yesterdays‘ business processes
• History of IT landscape and current challenges
Does the IT complexity still fit
to our business needs?
Business
Intranet
Impact
CRM
2
CRM 1
(…)
• “Hard-wired”
applications/processes
• Limited flexibility
• Hurdle for growth and
innovation
•Mainframe,
legacy etc.
• Limited business
value through IT
• IT only for few
client needs
1980s
R/3
SCM
• Increasing IT interfaces
& „exploding“ IT costs
• Multitude of IT vendors
1990s
IT
•Singular
applications
(FI/CO, R/2)
• Growing business complexity
• Globalization and mergers
• Existing „IT-silos“ (e.g. vendors,
regional, business units)
2005
•
•
•
•
High integration cost
Speed of change
Poor data quality
People as “human
integrators”
• Create open platform
• Define „Enterprise services“as business & IT
driver
• Enabled internet solutions
17
Service-Oriented Architecture de-couples ‘glue’ that slows change
• Business architecture powered by SOA
Key Characteristics
Finance, Controlling, HR & other support processes
Marketing &
Sales
Order
processin
g
Logistics –
In- and Outbound
Production
Billing
Quality
Mgmt.
Custome
r service
 Extraction of business scenarios
– custom composite/event driven
 Encapsulate existing systems –
loosely coupled
Portal / EAI / Business Process Platform
Marketing /
Sales
TMS1
-Order entry
-Transportation Planning
- Client billing
- Intra-company settlement
Finance & Controlling
Others
Personnel
Reporting & Planning
Purchase & Procurement
Warehousing
Customs Mgmt.
Damage Mgmt.
 Flexibility
 Reduced complexity (content
wise as well as timing)
 Re-usability
 Speed
1 Transport Management System
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SOA: Business Flows into Services through Architecture
Example
Master data
mgmt.
CRM
Order
processing
Order mgmt.
Customer
automation
system
Customer
service
Procurement
Human
resources
Transport planning
Pick-up
execution
Pick-up
depot
Business
intelligence
Transport
Linehaul
Delivery
depot
Track &
trace
Billing
Delivery
execution
Delivery
tour
postoperation
s
Management
undelivered
goods
Pick-up order
registration
Preparation
of pick-up
tours
Return from
pick-up
Freight plan
adaptation
Preparation
of tour
planning
Standard
delivery
Shipment
preparation
Pick-up
Unloading
Network
information
Linehaul
unloading
Collection
C.O.D.
C.O.D.
management
Check
good/info.
Deviations
management
Sorting for
delivery
Special
delivery
Invoicing /
billing
Sorting of
goods and
information
Tour
planning
Unexecuted
delivery
Cost /
partner
settlement
Linehaul
loading
Loading
vehicles
Linehaul
departure
Departure of
delivery tour
Terminal
check
Terminal
check
Pricing &
costing
Scanning
equipment
Sorting
equipment
Weighting
measuring
= TMS core functionality
Quality
mgmt.
Quality
mgmt.
Mgmt. of
operational
performance
Measuremen
t of service
levels
Finance/
accounting
Internal
settlement
= Outside TMS
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Service-Orientation focuses on delivering unique Business Value
• Business Transformation SOE
Unique Value
Proposition
Products/
Services
Encapsulated
layers create
tremendous
Process
Business process execution
Service
Check
customer
address
Verify
customer
credit
Determine
product
availability
Calculate
shipping
charges
flexibility on
each level
Application/
System
Marketing
systems
Sales
systems
Service
systems
Corporate
systems
Business
systems
Trading
Systems
Each level opens up considerable project opportunities – with distinct clients & requirements.
20
Defining the Conceptual Business Structure for SOE
Procedures, Defined Processes, and Ad Hoc Interactions
Understanding the Hubs and Spokes
1
Enterprise
Operations
(“Enterprise Hub”)
4
Departmental
Process
2
Enterprise
Procedure
(“Spokes”)
5 Ad Hoc
Interactions
2. Enterprise Procedures: The
“spokes” serve as vehicles for
delivering data across the company,
typically already exist via current
ERP systems
3. Operational Departments: The
“rim” sees many new department
specific processes defined by dayto-day activities
4. Departmental Process: Essential
to individual departments, they
provide more value to business
owners than to the Enterprise
3
Operational
Departments
(“The Rims”)
1. Enterprise Operations: The “Hub”
of critical corporate data
management and maintenance for
CxO level use, auditors, etc…
5
InterEnterprise
Procedure
5. Inter-Enterprise Procedures / Ad
Hoc Interactions: Additional
processes developed to manage
daily interactions/ requirements
21
Supporting a GTM Initiative with an SoEAI solution stack
The Issue
A compelling reason to act
Service Oriented
Enterprise
Delivery of Business Value
To the Business Owner
Service Oriented
Architecture
The method to deliver the requirement
To the Project Manager
Service Oriented
Infrastructure
The capability to provision technology
Services in a cost effective manner
To the MIS department
22
SOE as a business strategy
A compelling reason to act
1) Insist on redefinition of the business requirement
As a series of granular tasks with a separate flow
2) Restrict the ‘ownership’ to those unique tasks that
Have been defined, recognise the duplicated tasks for reuse
Differentiated and
Unique tasks owned
And directly paid for
By the business unit
The Issue
Service Oriented
Enterprise
Service Oriented
Architecture
Service Oriented
Infrastructure
Move duplicated tasks down
1) Aim to extend the concept of IT ‘utility’ style shared
Services to an increasing number of shared ‘utility’
Supported business services
2) Map business processes for the enterprise and define
Types i.e. enterprise procedure, department process, etc
Move common technology up
1) Continue to apply ‘virtual’ management to shared hardware
And move to introducing ‘shared’ common software as well
2)Introduce horizontal technology layer management with new
Responsibilities, tools and management capabilities
Common and shared
Business tasks
& orchestrated
Procedures
Supplied ‘utility’
Style and Bench
Marked externally
23
How will an Enterprise adopt these new capabilities?
Externally created Value
through more efficient
market interaction
Internal Value created
through process
redesign
License cost
savings
Internal Cost
Reduction by shared
resources
Mobility
Process
based
Services Oriented
Infrastructure
Services Oriented
Architecture
Services Oriented
bEnterprise
 Linux
 Platform
Rationalisation
 Storage Area Networks
 Server Virtualisation
 Grid Computing






Security
Web Services
Business Intelligence
Management tools
Development Tools
Service Orientated Architecture




Mobility
Event Driven
Real Innovation
………… etc
24
Positioning Major Technology Vendors in SOE/SOA/SOI
A technology driven exercise to understand
Current Capabilities and Strategic Directions
25
Some thoughts on major technology players positioning – SOE/SOA/SOI
The Issue
Service Oriented
Enterprise
SAP
Oracle
Microsoft
Service Oriented
Architecture
Service
Oriented
Architecture
IBM
SUN
Service Oriented
Infrastructure
Service
Oriented
Infrastructure
HP
Intel
Cisco
26
Some thoughts on major technology players positioning – SOE/SOA/SOI
The conflicting ambitions to control the SOA layer
The Issue
Service Oriented
Enterprise
SAP
Oracle
Microsoft
Service Oriented
Architecture
Service
Oriented
Architecture
Conflicting Ambitions
IBM
SUN
Service Oriented
Infrastructure
Service
Oriented
Infrastructure
HP
Intel
Cisco
27
Some thoughts on major technology players positioning - SOA Layer
SAP
Mendocino
Moving from Enterprise
Resource Applications through
Middleware to providing
‘Services’
Integrates MS & SAP
Microsoft
IBM
Moving from the
Integrity of enterprise
Applications in the
data centre and
Back office through
EAI towards ‘users’
And ‘services’
SOA Middleware
The controlling
‘Sweet Spot’
Moving from the
Integration of users
Information by
Collaboration
Towards back end
Application
integration
Oracle
Moving from Enterprise
Resource Applications through
Middleware to providing
‘Services’
Computing
Services
Inc EAI etc
Back Office
Applications
inc ERP etc
Front Office
Applications
inc Desktops etc
Services
Interconnecting
everything
28
Some thoughts on major technology players positioning – SOI layer
Google integration
Compliance Manager
WebSphere
Services on Networks
Microsoft integration
SOA Manager
JES Package
IBM
A strongly integrated
Vertical model designed
To optimise the provision
Of ‘independent’ technology
enabling capabilities across
the SOI and the SOA layers
Including database
provisioning and links to
Cisco network based
‘services’
HP
Sun
Neutral to the SOA
layer seen as ‘agnostic’
by SAP, Microsoft,
Oracle, etc
Extensive Horizontal
Software to optimise &
Integrate all SOI resources
Neutral to the business
Services providers
Extensive range of SOI &
SOA JAVA software
Advanced hardware based
Capabilities for high
Performance computing
Cisco
Security manager
Neutral to everyone as the leading
Network provider but repositioning
To be able transport / route around
Services on the network
SOE
Business
Services
SOA
Services
Orchestration
SOI
Technology
Services and
Operational
Enablement
Nokia, Google, etc
Variety of relationships to
Support java based ‘smartphones’
and Internet based services
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