Transcript SOA, SOA, and more SOA Business Agility thru IT Janell Straach, PhD IBM

SOA, SOA, and more SOA
Business Agility thru IT
Janell Straach, PhD
IBM
CEOs Know Agility is Critical for Smarter Business Outcomes
83%
Expect substantial or
very substantial change
Agile businesses
have 29% higher
earnings per
share.
98%
Plan business model
changes
Source: IBM Global CEO Study 2008
Source: Business Technology Management Institute
The Four Waves of IT
Process Based Computing: Dynamic e-business
2000s
Horizontal Integration, XML, Web Services
Transaction Middleware
Process Driven / Event Driven
Network Based Computing: e-business
1990s
ERP, Internet, Java, e-Commerce, B2B Integration
Connection + Functional Re-Automation
Distributed Computing
1980s
PCs, Client/Server, Relational Database, Networks
Local Empowerment
Centralized Computing
1970s
Batch, OLTP, COBOL
Functional Automation
Service Oriented Architecture (SOA)
Lines of code
The Next Step on the Connectivity Evolution
Direct
Connectivity
Message
Queuing
Connectivity,
Mediation and
Additional Logic
Connectivity Logic
Mediation and
Additional Logic
Application
Application
Message
Brokering
Service
Orientation
Connectivity and
Mediation Logic
Additional Logic
Connectivity,
Mediation and
Additional Logic
Application
Application Services
Degree of Flexibility and Reuse
All connectivity,
mediation and additional
logic buried in the
application
Abstracts the
connectivity
logic from the
application
Abstracts the
connectivity +
mediation logic from
the application
Reduces application
to its core business
functions (i.e. a
service)
What is …..?
… a service?
A repeatable business task
– e.g., check customer
credit; open new account
… service oriented architecture
(SOA)?
An IT architectural style that
supports
service orientation
… service orientation?
A way of integrating your
business as linked services
and the outcomes that they bring
… a composite application?
A set of related & integrated
services that support a
business process built on an
SOA
Why SOA?
 Providing business flexibility
 Enabling rapid change
 Allowing reuse of assets
 Lowering the total cost of
integration
Looking Horizontal and Vertical --Service Oriented Architecture
Customer
Division (s)
Shared
Services
Supplier
Outsourced
Flash Demonstration: What is SOA?
Service-based Development Phases
Analysis &
Design
Development
Testing
Deployment
Service Stubs




Through analysis and
design, common
Enterprise services are
defined
Service consumers focus
on how users access the
services to perform
business functions
Service integrators focus
on how services are
properly found, bound and
invoked
Service providers focus on
exposing the business
services
Service
Service
Service
Service
Service
Service
Call
Service
Routing
Composition
Service
Transformation
Provider
Provider
Provider
Provider
Provider
Provider
Provider
Provider
Data
SOR
Utility
Utility
SOR
Data
How are customers thinking technically about flexible IT through SOA?
The SOA Lifecycle
Discover
Construct & Test
Compose
Gather
requirements
Model & Simulate
Design
Financial transparency
Business/IT alignment
Process control
Integrate
People
Process
Information
Manage applications &
services
Manage identity &
compliance
Monitor business metrics
SOA Entry Points Enable Agility
Solve today’s problems and plan for tomorrow
Traditional Approach (Solve
SOA Approach
for Today)
(Solve for Today and Tomorrow)
Reuse
Create each capability for each
application
Create once and use multiple times across
applications
Connectivity
Proprietary point to point connection.
Open standards allowing any number of
connections
Information
Individual data sets to support each
application
Integrate information invoked when and
where needed across applications
People
Static dashboard interface with
integrated applications
Business-user directed mashups and open
portal applications with reusable portlets
Process
Hard coded automated process
Adjustable automated processes
Analyst Studies Show That SOA Can Save Time and Money
A review of early case studies indicates that organizations that use a serviceoriented architecture (SOA) can reduce integration project development and
maintenance costs by 30% or more. These savings are made possible by the
increased effectiveness of component reuse that SOA enables.
Source: Forrester Research, Inc.
Benefits of a Service oriented approach
1
2
On Demand
Evolution
Dynamic
Modular
Business Flexibility
IT Simplification
3
4
Increased productivity is required to meet the
need for increasingly complex and innovative
solutions
Budgetary pressures require more cost
effective methods for developing solutions
A modular approach can provide parallelism and
flexibility to adapt to an ever-changing IT
environment (products, standards and partners)
Solving common business problems allows
designers and developers to be focused on
unique business requirements
Reuse in Action
Enabling sharing of common applications
Finnish Defense Forces
Industry Pains:
 Deeply entrenched IT system silos
presented barrier to crosscoordination
Smarter Business Outcomes:
 80% reduction in new development time
 75% projected reduction in required infrastructure
 Tighter internal and external coordination and information sharing
Why Smart SOA?
 Service hub enables the sharing of common applications through
dynamic reuse of services
Connectivity in Action
Connecting process framework enhances recovery rate
StatoilHydro
Industry Pains:
Smarter Business Outcomes:
 Need greater production out of existing  5% annual oil and gas production increase
fields
 Reduction in unplanned equipment downtime
 30% cost reduction via predictive maintenance
Why Smart SOA?
 Used ESB to link systems across their rigs, across the globe, and across the
enterprise.
Information in Action
Optimizing and innovating supply chain management
Southside Electric Cooperative
Industry Pains:
 Ability to support expanding service
request volume
Smarter Business Outcomes:
 67% decrease – service order turnaround time
 30% increase – number of daily collections
 Improve efficiency - time and mileage management
Why Smart SOA?
 Real-time information across systems updated as a service
People in Action
Community among distance learners
University of London
Industry Pains:
• Outdated IT systems hamper
process improvements
Smarter Business Outcomes:
 Collaboration tool access from anywhere
 Expected savings of £300,000 per year
 Centralized identity management
Why Smart SOA?
• Simple web portal interface with secure sign-on provides online learning environments, email, and
administrative support to every student
Process in Action
Streamlining and automating business processes
Yansha Department Store
Smarter Business Outcomes:
Industry Pains:
 Cumbersome, manual order fulfillment process  KAIs: Order lead time: 2.5 days4.5 hours
 Key Performance Indicators (KPIs):
–
Order acknowledgement: 80%99%
–
Order errors: 9%1%
 Payback in 9 months
Why Smart SOA?
 Service-enabled supply-chain management solution
 Integrated existing systems with automated processes
SO…..What happens next?
 Business Process Modeling
 Business Activity Monitoring
 Business Event Processing
Questions?
Smarter Planet ….
Our world is becoming
Our world is becoming
All things becoming