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© 2006 IBM Corporationhttp://www.computants.org/
1.519.702.0311 / +44 20 3014 4113 / +91 9220 537 569
Dom Fernandez Principal [email protected]
Solving Business Problems through Service Oriented Architecture
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Agenda
What issues does your business face?
How can SOA improve your business?
What value is there in SOA based solutions?
How can we help you get started?
73% of Mid-market companies already using Web Services
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© 2006 IBM Corporation
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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
integrating your business as linked
services
"SOA impacts every aspect of IT and business.”
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© 2006 IBM Corporation
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Flexibility allows innovation to meet top business challenges
Improve operational efficiency
Reduce administrative costs
Improve customer retention
Improve employee productivity
Improve employee access to information
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Why should you care about SOA for business flexibility?
Businesses need flexibility
Economics: Globalization demands flexibility
– Information: Greater availability
– Operational Efficiency: Productivity
Growth: at the top of the CEO agenda
– Business processes: Changing quickly
Reusable assets: Can cut costs
SOA helps to create flexibility
Bottom line: Flexible business requires flexible IT*Sources: CBDi
Traditional Business*
Today’s World-Class Business*
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© 2006 IBM Corporation
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Flexible business requires flexible IT
Process to optimize
Creating IT flexibilityIBM SOA Foundation
Skills &Support
Software
Traditional Business
Call Center
Case Study: Customer Order & Fulfillment
CRM Service
ERP System
Call Center
Supplier
Outsourced Shipping, Credit Check
Case Study: Customer Order & Fulfillment
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
IBM SOA Foundation
Supports complete lifecycle with a
modular approach
Extends value of your existing investments, regardless of vendor
Scalable; start small and grow as fast as
the business requires
Extensive business and IT standards support; facilitating
greater interoperability & portability
Integrated, open set of software, best practices, and patterns
Software
Skills &Support
This Foundation Provides what you need to get started with SOA
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© 2006 IBM Corporation
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Deliver trusted information to provide business insight to enable innovation
Enable human and process interaction with consistent levels of service
Achieve greater efficiency and effectiveness with business model innovation
“Pick business processes with pain points that the business clearly recognizes — processes for which the business most clearly needs end-to-end visibility, control, insight, and flexibility”
Business centric SOA starts with top business pains Entry points: People, Process, Information
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© 2006 IBM Corporation
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And SOA lifecycle is the key to successful projectsEntry points: Reuse, Connectivity
Gather requirementsModel & SimulateDesign
Integrate peopleIntegrate processesIntegrate information
Manage IT resourcesManage servicesMonitor business metrics
DiscoverConstruct & TestCompose
Share & reuse servicesEstablish decision rights Policies, measurement and control for SOA oversight
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SOA helps you solve top business challengesCreating or improving IT solutions by leveraging IBM SOA Foundation
Process
Productivity
People
Customer retention
Information
Access information
Connectivity
Cost reduction
Operational efficiency
Reuse
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© 2006 IBM Corporation
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SOA Entry Point: Reuse
Improve operational efficiency Taking advantage of information and business tasks provided by others
Reduce errors, cost and time associated with manual processes
Improve satisfaction by interacting real-time with customers and partners
Increase customer loyalty by providing value-add services
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SOA Entry Point: Connectivity
Integrate nearly anything with consistent interfaces across 80+ operating systems
Eliminate errors introduced by re-keying information
Enable IT to be more responsive and flexible to changing business demands
Reuse existing assets and applications
Easily add, remove, and change applications as required
Reduce administrative costs Reduce cycle time, increase throughput and enhance partner interactions
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SOA Entry Point: People
Enhance customer satisfaction through self-service
Improve access to applications and content
Providing customer choice and flexibility
Deliver consistent customer service
Improve customer retention Provide role-based information access for employees, partners & customers
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SOA Entry Point: Process
Integration implemented with flexibility that is easy to adapt as business changes
Leverage existing business critical legacy systems and custom business applications
Improved Productivity and Responsiveness
Improve employee productivity Automate work and make it easier to make improvements
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SOA Entry Point: Information
Lower costs by supporting a single version of a business function
New business opportunities by making existing business functions available to new users or channels
Extend value of existing assets through reuse to deliver new business value
Improve employee access to informationAddress new markets by expanding access to existing applications
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Reduced costs, increased customer satisfaction
600 person lender gets credit reports via Web
Provide vets with 24-hour reliable access; reduced ratio of returned goods
36 person firm extends ordering to Veterinary application via Services
Automated data transfer cut workload, increased revenues
Facilitate realtime donations in 400 person non-profit organization
Expecting to yield a 25% increase in revenue
Collaboration for 20 person eCommerce consulting firm
Radio Frequency Identification package tracking
30% reduction in cost for mishandled packages
SMB Customers gain value through Entry Points
Customer ValueCustomer Example
SVS Veterinary Supplies
Services; reviews loans in 15 minutes
People
Information
Process
Connectivity
Reuse
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© 2006 IBM Corporation
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23% reduction in resolution time for customer calls; ROI in less than two months
720 employee firm automated application
Loans in hours instead of daysAutomate loan process in 725 person firm from students to lenders
Expecting a 20% increase in customer satisfaction and a 15% increase in new business
adds multichannel eCommerce integrated with backend systems
Increase workload without adding people, with no compromise on service levels
90 person ISV reuses collaboration tools for employees and for customer service People
Information
Process
Connectivity
Reuse
SMB Customers gain value through Entry Points
Customer Value
Reduced costs and made it a great deal easier for travelers at the station
Consolidated view across bus operators; Reuse to see via cell phonesSofia Bus
Station
Customer Example
Vormittag Associates, Inc
750 person ISV
process; Reuse services in call center
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Align Business and IT with SOA Governance
What is SOA Governance?– Decision making rights, measurements, and
controls throughout the lifecycle of services
What is the value of SOA Governance?
– Realize business benefits of SOA
– Mitigate business risk; regain control
– Improved team effectiveness
"IBM's approach aligns with Gartner’s view of SOA governance, and we believe it is likely to be more effective than narrower approaches.”
Gartner, "IBM Takes Another Step Toward Its SOA Governance Vision", Michele Cantara et al, March 28, 2006.
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Why SOA Governance matters
Realize business benefits of SOABusiness process flexibilityImproved time to market
Mitigate business risk and regain controlMaintaining quality of serviceEnsuring consistency of service
Improved team effectiveness Measuring the right things Communicating clearly between
business and IT
Professional investors are willing to pay premiums of 18-26% for stock in firms with high corporate governance.Source: McKinsey Quarterly
"firms with above average IT governance... had more than 20% higher profits than firms with poor governance following the same strategy"
Source: Peter Weill and Jeanne W. Ross, Harvard Business School Press 2004
"Effective IT Governance is the single most important predictor of value an organization generates from IT.” Source: Peter Weill, MIT Sloan School of Management’s Center for Information Systems Research
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Business Services ecosystem announcement highlightsIndustry specific assets and expertise from Business Partners and IBM
SOA Business Catalog
– Contains SOA Specialty Partner and IBM content
– Promotes, facilitates, and enables the ecosystem
– Total Assets – 3110
• Partners – 62%• IBM – 38%
– 12,000 Downloads
Industry-specific business services
– Healthcare and Insurance available now
– Banking (payments) available 4Q
Global Business Solution Center
– Capturing industry-specific best practices for global delivery
Business Partner SOA Industry Solutions
– "Ready for SOA" mark
71% from
partners
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Web Services are a good start…
Business applications and their interfaces become reusable
Decouples the interfaces from the business applications
The number and complexity of the interfaces is reduced
Rich business abstractions describe the application interface
But separate connection points still leaving bloated interfaces ….
Turn this … …into this (web services).
= Interface
Service
= Application
Service Service Service
Service Service Service
= Interface = Service
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
The Enterprise Service Bus shrinks those interfaces further
RESULT Greater Business Responsiveness
Allows for dynamic selection, substitution, and matching
Enables you to find both the applications and the interfaces for re-use
Decouples the point-to-point connections from the interfaces
Enables more flexible coupling and decoupling of the applications
Turn this (web services)… …into this (SOA)
Enterprise Service Bus
Service Service Service Service
Service Service Service
= Interface = Service
Service Service Service Service
Service Service Service
= Service= Interface
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Why us for SOA?
•Gartner leaders’ quadrant
•100’s of pre-built portlets ready for SOA dashboards
•2,500+ Channel Partners & Solutions
•3000+ SOA assets for BPM
•500 industry specific process models
•Best Enterprise Information Integration (Intelligent Enterprise Reader’s Choice Awards)
•15K practitioners, expected to grow by 65% next three years
•Potential savings of 2x-4x vs. custom built or FTP•The market leaders in extending asset value for customers•87K+ customers for connectivity & reuse offerings
•Over $1B/yr invested in SOA•SOA consultants, architects and IT specialists •Leadership in open standards •300+ SOA-related patents
“BPM from IBM leads in Market share”
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
SMB References
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
Take Action NowEncourage innovation with a focused SOA project
Contact us, an IBM Business Partner to help prove your ROI !
1. Understand the value of SOA It’s not just Web Services It’s not just technology, but joining technology
with business insight and thought leadership
2. Select your top business challenge and your entry point (Reuse, Connectivity, People, Process, Information)
3. See the related Web cast for your top business challenge
4. Conduct an SOA workshop to develop your plan and determine ROI
“While deploying technology is certainly key to a successful
SOA integration, it is the maximizing of the people,
process and information elements that are truly core
to the SOA process.” Judith Hurwitz
President, Hurwitz & Assoc.
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© 2006 IBM Corporation
http://www.computants.org/ +91 9220 537 569, [email protected]
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