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Selling SOA to
Your CEO
Michael Liebow, Vice President
Business Development, Global Consulting & SOA
IBM Global Business Services
IBM SOA
We spoke to 1,130 CEOs and conducted in-depth
analysis to determine the characteristics of the
Enterprise of the Future
How are organizations addressing:
 New and changing customers – changes at the end of the value chain
 Global integration – changes within the value chain
 Business model innovation – their response to these changes
ANALYSIS
SCOPE & APPROACH
1130 CEOs and Public Sector Leaders
Quantitative and Qualitative
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One-hour interviews
78% Private, 22% Public Sector
32 Industries
33% Asia, 36% EMEA, 31% Americas
80% Established, 20% Emerging
Economies
Current behavior
Investment patterns
Future intent
Choices of financial outperformers
Case studies of excelling organizations
IBM SOA
CEOs see significant change and opportunity ahead, and in
response radically change their business designs
CEOs are
Findings from 1130 interviews
 Expecting significant change (increased by 33%), while the ability to manage change has
not kept pace – 39% feel unprepared
 Investing heavily in engaging newly prosperous, more informed and collaborative, and
socially aware customers
 Moving aggressively toward global business designs, deeply changing their capabilities,
partnering more extensively and using M&A to grow
 Making bolder moves if they are from financial outperforming companies
IBM SOA
Bharti
How do you maximize future flexibility and growth potential by
adopting a business-driven framework?
 Focused on process improvement by
consolidating disparate systems
 Ensured back-end processes support
business goals like improved mobile
account activation
 Improved enterprise wide business
intelligence with an integrated view of
the customer to respond to needs
more quickly and increase customer
satisfaction
IBM SOA
Inhibitors for Alignment of Business and IT
Differences in
 Culture
 Languages
 Priorities
 Complex Infrastructure
 No Business Architecture
& Blueprint
IBM SOA
Companies Want IT to Deliver More Business Value
Today’s IT
30%
New
Capability
70%
Sustaining &
Running
Existing
Capability
Desired IT
Increase
Value Creation
Decrease
Maintenance &
Delivery
45%
New
Capability
55%
Existing
Capability
IBM SOA
How Can SOA Help Your CEO?
SOA is a Business Based
approach to designing IT systems
that enables…
5… Business flexibility
4… Better business processes
3… Easier integration
2… Reuse of assets
1… Reduction of risk
“Anything that
changes can do
that much better if the
system is architected
in SOA.”
Gartner
IBM SOA
Yansha Department Stores
How do you get 1,800 national and international suppliers to buy into
a new, more efficient way of doing business?
 Reduced order lead time from 2.5 days to
4.5 hours
 Improved order acknowledgement rate
from 80 to 99%
 Reduced order error rate from nine to one
percent
 Achieved ROI in nine months
IBM SOA
Things to Remember When Talking SOA to Your CEO
1
Don’t Call It SOA
2
Pick Projects with Tangible Benefits
3
Focus on Solutions
4
Reference Thought Leaders
5
Build a Value Focused Business Case
IBM SOA
Don’t Call It SOA – Speak the Right Language
Explain the value and
benefits in business terms
that reflect the organization's
goals –
 cost reduction
 productivity
 competitive advantage
– before diving into a
technical conversation
1
IBM SOA
Benchmark the Value with Key Agility Indicators
12 wks
8 wks
60 days
21 days
Average time to locate
critical skills
48 hrs
24 hrs
Time to establish new
risk policy
Time between order delivery
and order generation
270 KAIs in the
Benchmark Wizard
IBM SOA
Pick Projects with Tangible Benefits
When selecting those small
test projects, choose to
integrate and automate
those business processes
that can have the most
widespread, positive
impact across the
organization
2
IBM SOA
Distinct Value with Every Style
Regardless of Where You Choose to Engage
Foundational
Extend
End-to-End
Transform
Adapt
Dynamically
For
example…
Process entry
point
80% reduction
in time to
market for
customized
services
Partner
externally in
broad processes
98% of
transactions in
sub-second
Greater
satisfaction
Transform
online channel
30% increase
in transactions
60% increase
in online
conversion
rate
Pursuing
acceptance &
processing of
filings and
payments via
any time,
source or
channel
IBM SOA
Focus on Solutions
3
Examples
Industry
Insurance
Position SOA enabling
business solutions that
tackle the key challenges
faced by your business
Name
Operations of the Future
Insurance Self Service
Chemical &
Petroleum
Information Integration
Framework
Banking
Customer Care & Insight
Energy & Utilities
Intelligent Utilities Network
CBRM - Identity Mgmt
NCO - Mission Execution
Government
Intelligent Transportation
System
Integrated Case Mgmt.
Clinical Information Systems
Healthcare
Pandemic Mgmt
Healthcare Plan
Modernization
Telecommunications
Service Assurance
IBM SOA
Generali Group
Insurance Operations of the Future
 Life Insurance division needed
increased efficiencies across
multiple legacy applications and
infrastructure
 Business processes optimization
and automation, input and work
management needed
 Key reuse and business flexibility
focus – SOA was the how
 20%-30% productivity improvement
with SOA implementation
IBM SOA
Reference Thought Leaders
Cite external views on the
growth and adoption of
service oriented
architectures and point to
relevant SOA success
stories within your industry
(and by your competitors)
4
IBM SOA
Learn How SOA Provides Value to Your Industry
Insurance
Electronics
Healthcare
Supply Chain Management
Government
Biopharmaceutical
Retail
Banking
http://www-935.ibm.com/services/us/index.wss/itservice_library/igs/a1002583
IBM SOA
Build a Value Focused Business Case
Outline the immediate and
long-term results from this
strategy while avoiding
discussions about specific
version numbers and
technical jargon
5
IBM SOA
Business needs context and vision to understand your
approach to SOA
Develop an SOA Strategy, Architecture, Business Case, Governance Framework,
and Roadmap to guide the transformation of an organization and systems towards
a service-oriented model
You need:
 Customized Component Business Model
Map
 SOA Reference Architecture
 SOA Vision and Strategy
 SOA Business Case
 SOA Governance Operating Principles &
Framework
Reduced
Risk
Improved
Flexibility
Increased
Profitability
Compliance
 SOA Roadmap
Guiding principles for applying
the SOA benefit framework
IBM SOA
Defining an SOA Project with Business Case
IBM Industry
Roadmap
WW
Experiences
Executive
Support
Local
Expertise
IBM Workshop
Business
Problems Defined
Solution
Elaborated
Process
Designed
Process Improvement
Residential
customers
Contact Centre
Branch
Channels
Relationship
Business Value
Quantified
CSR
CSR
Teller
Internet Browser
Internet Browser
Internet Browser
Rich client
Internet
Intranet
Portals
Staff Portal
Customer Portal
$40,000,000
$35,000,000
Total Cost
$30,000,000
50
WebSphere
$20,000,000
Current Approach
Time taken to set up
product features
$5,000,000
30
Jun07
g-07
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t-0
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b-08
Ap
r-0
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r-0
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Jun09
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r-1
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Jun10
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Jun11
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10
Quarters
0
1
2
3
4
AsIs vs ToBe
WW Experience Sharing
Offer
Activate
Provide TAO
Application
Offer
Activate
TAO
Application
Relationship
Builder
Fufill
Provide TAO
Application
Completion
Provide
Account
Conditions
IFW (process models, business object models, interface design models)
Customer i.e.
Customer Creation
Marketing
(i.e. Leads, Talking
Points)
ESB
Sales
(i.e. Opportunities
Needs Conversation)
Originations
(i.e. Decisioning,
Applications)
Servicing
(i.e. Account
Maintenance)
Reporting
Finance &
Administration
Human Resources
Service Registry
Time taken to open
account (end to end)
$-
20
Business
Services
Conduct TAO
Needs Based
Conversation
- X
Payments
$15,000,000
$10,000,000
40
De
Time (mins)
60
Project Definition
Provide TAO
Application
Profile
Common models
$25,000,000
SOL
Pre-sales
BPM & Process
Choreography
Time to open an account
70
Internet
- X
Banking
Presentation
Services
Break Even - Total Cumulative Costs
Project Implementation
Customer
Value Assessment
SOA Rapid Value
Assessment Tool
Enterprise Service Bus
EAI Layer
Core
Banking
Systems
Oregon Reference data
New Relationship
System
Origination Data Components Builder
management
& security services
Mainframe
- CIS
- CAFÉ
- Front Office
- Term Deposits (TY)
- Trading Bank (TX)
Arch Development
IBM SOA
Stop talking about SOA. Start doing it.
Contact your IBM representative – They can help!!