SOA, SOA, and more SOABusiness Agility thru IT

Janell Straach, PhD

IBM

Source: Business Technology Management Institute

Agile businesses have 29% higher

earnings per share.

CEOs Know Agility is Critical for Smarter Business Outcomes

83%

98%

Expect substantial or very substantial change

Source: IBM Global CEO Study 2008

Plan business model changes

The Four Waves of IT

Process Based Computing: Dynamic e-business2000s Horizontal Integration, XML, Web Services

Transaction MiddlewareProcess Driven / Event Driven

Centralized Computing1970s Batch, OLTP, COBOL

Functional Automation

Network Based Computing: e-business1990s ERP, Internet, Java, e-Commerce, B2B Integration

Connection + Functional Re-Automation

Distributed Computing1980s PCs, Client/Server, Relational Database, Networks

Local Empowerment

Incr

easi

ng N

eed

for

Inte

grat

ion

Service Oriented Architecture (SOA)The Next Step on the Connectivity Evolution

MessageQueuing

Abstracts the connectivity

logic from the application

MessageBrokering

Abstracts the connectivity +

mediation logic from the application

ServiceOrientation

Reduces applicationto its core business

functions (i.e. a service)

Application Application

Degree of Flexibility and Reuse

DirectConnectivity

All connectivity, mediation and additional

logic buried in the application

Application

Lin

es

of

co

de

Application Services

Connectivity,Mediation and

Additional Logic

Mediation andAdditional Logic

Additional Logic

Connectivity Logic

Connectivity andMediation Logic

Connectivity,Mediation and

Additional Logic

… a service?

A repeatable business task – e.g., check customer

credit; open new account

What is …..?

… service orientation?

A way of integrating your business as linked services

and the outcomes that they bring

… service oriented architecture (SOA)?

An IT architectural style that supports

service orientation

… 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

Outsourced

Supplier

Shared Services

Division (s)

Customer

Flash Demonstration: What is SOA?

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-based Development Phases

Analysis &Analysis &DesignDesign DevelopmentDevelopment TestingTesting DeploymentDeployment

Service

Service

SOR

Service Service

Service

Data

Utility

Service

Service Call

Routing

Transformation

Service

Composition

Provider

ProviderUtility SOR Data

ProviderProvider Provider

Provider Provider

Provider

How are customers thinking technically about flexible IT through SOA?The SOA Lifecycle

Gather requirements

Model & SimulateDesign

DiscoverConstruct & TestCompose

Manage applications & services

Manage identity & compliance

Monitor business metrics

Financial transparencyBusiness/IT alignmentProcess control

IntegratePeopleProcessInformation

SOA Entry Points Enable AgilitySolve today’s problems and plan for tomorrow

Traditional Approach

(Solve for Today)

SOA Approach(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 execution

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 service-oriented 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

Increased productivity is required to meet the need for increasingly complex and innovative solutionsBudgetary pressures require more cost effective methods for developing solutions

3 A modular approach can provide parallelism and flexibility to adapt to an ever-changing IT environment (products, standards and partners)

4 Solving common business problems allows designers and developers to be focused on unique business requirements

On Demand

Dynamic Modular

Business Flexibility IT Simplification

Evolution

Finnish Defense Forces

Reuse in ActionEnabling sharing of common applications

Industry Pains: Deeply entrenched IT system silos

presented barrier to cross-coordination

Why Smart SOA? Service hub enables the sharing of common applications through

dynamic reuse of services

Smarter Business Outcomes: 80% reduction in new development time 75% projected reduction in required infrastructure Tighter internal and external coordination and information sharing

Connectivity in ActionConnecting process framework enhances recovery rate

StatoilHydro

Smarter Business Outcomes: 5% annual oil and gas production increase Reduction in unplanned equipment downtime 30% cost reduction via predictive maintenance

Industry Pains: Need greater production out of existing

fields

Why Smart SOA? Used ESB to link systems across their rigs, across the globe, and across the

enterprise.

Information in ActionOptimizing and innovating supply chain management

Southside Electric Cooperative

Industry Pains: Ability to support expanding service

request volume

Why Smart SOA? Real-time information across systems updated as a service

Smarter Business Outcomes: 67% decrease – service order turnaround time 30% increase – number of daily collections Improve efficiency - time and mileage management

People in ActionCommunity 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 ActionStreamlining and automating business processes

Yansha Department Store

Industry Pains: Cumbersome, manual order fulfillment process

Smarter Business Outcomes: KAIs: Order lead time: 2.5 days4.5 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