soa4 bt 02042015_final

© Copyright 2015 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Diego February 2015

1

>Applied Technology Solutions, Inc.(ApTSiTM)

SOA For Business Technology (SOA4BT)The Open Group Conference, San Diego 2015

ApTSi TM SOA, Cloud and Business Technology

ApTSi TM

Applied Technology Solutions, Inc.





• February, 2015• Name Title• Nikhil Kumar President & CEO

Co-Chair SOA Reference Architecture Project,The Open Group

• Sundar Ramanathan Manager, IT AdvisoryProject Chair SOA4BT Project,The Open Group

ApTSi TM


• Leadership• World Class

Technology• Experience

• Strategy• Integration & SOA• Application

Development &Reuse

• DB, EII & BINikhil Kumar PresidentEmail: [email protected]: http://blogs.ittoolbox.com/emergingtech/nikhilPhone: (248) 797 8143

Introductions

2

Sundar Ramanthan ManagerEmail: [email protected] http://sundarar1.wordpress.comPhone: (734) 272-2040

mailto:[email protected]

http://blogs.ittoolbox.com/emergingtech/nikhil


http://sundarar1.wordpress.com/




• Overview• SOA4BT – the 3 pillars• SOA4BT – from pillar to execution• Success Factors• An example – the Acme Healthcare company• What’s Next• Discussion• Supporting Materials

– The IT Perspective of Service Orientation


Agenda

3




Business Ecosystem

4

Business Adoption and Impact of Service Orientation

A world of SOAs

Low HighIncreasing

… “ServiceOrientation” is astrategic businessPRIORITY

As organizations evolve into Service Oriented Enterprises, Business andIT Management are jointly engaged in the creation of an evolvingcoalesced paradigm of Business Technology

Modern SOAEcosystem

Legacy APIs(CORBA/DCOM)

EAI

Enterprise SOA

Cloud Computing

Micro ServiceArchitectures/ APIs &IOT




Overview: Some background

n Modern business environments have evolved into a ecosystems of SOAs –internal (traditional or legacy), external or partner ecosystems‒ These ecosystems often now include the cloud as one of the components

n Cost, agility, regulatory and market drivers are transitioning organizationsinto Service Oriented Enterprises‒ The ability for SOAs to enable agility are existential capabilities in the modern business

environment

n This presentation is about what makes a Service Oriented Enterprise andthe journey. We provide some foundational concepts and then walk throughan illustrative example.

n An Enterprise SOA can be thought of as Business Technology (the ServiceOrientation of Business) and the Technical SOA together

Service Oriented Enterprises are becoming the norm. Organizationshave aligned structures on service models and the realization of itsimpact is becoming more ingrained in business execution.




• Service Orientation and the Business– Strategy, Operating Models, Operations

• SOA4BT – a Business Perspective of SOA– An overview of the Business Aspect of the SOA4BT Reference Model and the 3 pillars

• SOA4BT – Application to realizing SOAs– Where the 3 pillars map to execution

• Using it– The practical implications – for business and IT alike

• Success Factors

• Application Example– The application of SOA4BT in the Healthcare Sector

What You Will Learn

6

Overview: So what you will learn…




• Business Executives and Management– Talking SOA to the Board– Talking to Line-Managers and Mid-Level executives

• IT Executives and Implementation– How do I apply this to reflect business value?

• Enterprise Architecture– How do I handle this new ecosystem?

What’s in it for me?!

7

The coalescing of SOA and Business requires stakeholders from both ITand the business to think Service Oriented. This presentation shouldprovide an introduction what is involved.

Overview: So what’s in it for me?




Some quick terms….

‒ Business Services – services that an organization considers its delivered services. Theorganization measures itself in terms of metrics related to these services or consolidatedmetrics. Business Capabilities are composed of Business Services

‒ Business Functions – the operational functions which keep the organization running.Business Functions are composed of Business Processes.‒ E.g. Provider Servicing with processes for claims submission, claims inquiry, etc.

‒ Business Process – Processes that define the behavior from the ‘How’ (how work is done)perspective.

‒ A Service Oriented Enterprise is an organization that orients itself in a Service Orientedmanner, with the following characteristics§ It defines Business Capabilities in terms of Business Services§ Business Functions in terms of Business Processes§ It measures Business KPIs to determine success

Business Services are what the organization provides. Business Functionsare what it does in order to provide Business Services. Business Processesare how business functions are done.

“Don't gobblefunk around with words.” .. Roald Dahl







Agenda

9




A Reference Model for Business in the context of SOAThe Business Perspective

The 3 pillars of SOA4BT – Strategic, Operational and Operating Modelprovide a framework for how Business adopts service orientation

10




• Strategic– The Strategic Pillar addresses organizational strategy, orienting the organization around the

organizational mission, vision and goals.

• Operational– The Operational Pillar addresses how an organizational executes. This includes the functions

and organizational structure to run the business. The underlying business processes andservices to run the business.

• Operating Model– The Operating Model Pillar addresses the manner in which an organization is run. The structure

and culture of the organization are factored into this. It is a very effective tool in assessingorganizational readiness to adopt the SOA Ecosystem. Governance, culture and metrics arekey aspects of this.

A Reference Model for SOA in the context of SOAThe Business Perspective

A Service Oriented Enterprise measures how it operates. It usesBusiness Services as a paradigm to determine how and what it does. Ituses a capability based Strategic Model to determine how it works andan Operational Model to run the organization. It uses the OperatingModel to determine prioritization.

11




• Scorecards– Rolled up to an enterprise level, typically aligned on a Kaplanesque model to reflect factors of

business importance (customer satisfaction, employee satisfaction, revenue, etc.)– Business executive stakeholder understand and measure success based on these.– They can be tactical and strategic

• KPIs and Metrics– KPIs and metrics measurable attributes, typically at unit or program level, that can be rolled up to

the scorecards. They are often used to measure how an organization is aligning with its goals.

• Examples– Common scorecard measures for a Healthcare organization may be patient safety and

satisfaction– Common KPIs for a Healthcare organization may be raw mortality rate and patient

comorbidity rates

Businesses measure how they are doing..The Business Perspective

Service Orientation is uniquely positioned as a business and technologyarchitectural style to capture and compose metrics, and measurability isa key factor in modern businesses, especially due to its impact onefficiency and agility 12







Agenda

13




From Strategy to Execution

• DetermineStrategy andRoadmap

• DefineBusiness Ops.

• EstablishGovernanceFramework

Build the 3Pillars andImplementStrategy

Pillar

• BusinessServices/ Func/Proc.

• MapCapabilities

• Establish Org.Structure

ImplementOperatingModel andOperational

Pillars

• DetermineCapabilities

• Map to RA• Define

BusinessProcess andService Catalog

Define SOA

• Capture andMap KPIs

• ImplementServices andInfrastructure

ImplementSOA

§ The reality is not a linear but an iterative, road-mapped process.

§ The 3 pillars form the framework for the Business to align against.

§ Business Functions, Services and Organization Structure accompanied by the KPIs and Governance Framework form aframework through which the organization becomes “Service Oriented”.

§ The mapping of Capabilities to the SOA RA forms the point of integration. The TOG SOA RA and the OSIMM form the basis for a definitionof the technical components of the SOA infrastructure. Organizations tailor these based on identified capabilities to “Enterprise” SOAs.

§ Business Process and Service catalogs are mapped to enterprise Business Services, Functions and Processes. KPIs and metrics aregathered to feedback to align with the Enterprise Strategy

SOA pervades the Service Oriented Enterprise.. BusinessTechnology melds the Business and SOA, while the TechnicalSOA realizes it..




Business Technology – relationships in the model

Service Orientation provides a unique mechanism for low cost alignment

Business StrategyMission/ Vision/ Goal

Business Capabilities

Business OperationsValue Chain/ Supply Chain

BusinessProcesses

Technical Capabilities

BusinessConstraints

ServiceOrchestrations

SOA RA

SOA SolutionArchitectures

ServiceCatalog

Activities +Org. Struct.

DecisionRights & Gov.

SOAGovernanceExecution

Capability and Portfolio based

A combination of capabilities, constraintsdrive decisions and help define SolutionArchitectures

2Organizations align delivery portfolios onbusiness and technical capabilities

1

SOAGovernanceensuresconsistencyand alignment

3

Business Operations addConstraints

Governance

15




Business Technology to Implemented SOA

Service Orientation provides traceability – not for the sake of it, but forthe ease of being able to see the success or failure of it

Enterprise Strategic Business Architecture

BusinessMission &

Vision

TechnologyDriversBusiness Drivers

Enterprise MissionVision and Goalhelps definedrivers

Business and Technology drivers helpdef ine the guidelines and process forthe strategy

SOA integration with Enterprise Strategy

SOA RA SOA Governancedecision process

Architecturaldecisions

Maps to SOA governance andarchitecture decision points

Trac

eabi

lity

Business Architecture andCapability Mapping

Technology Architectureand Capability Mapping

BalancedScorecard

EnterpriseScorecardprovides mapping

Capability &Portfolio Map

Capability &Portfolio Map

SOA SolutionArchitectures

16







Agenda

17




• Get the Strategy Pillar Right– Align Executive Management against Enterprise Strategy

• Get the Operational Pillar Right– Get organizational alignment on the Services Provided by the organization.

• i.e. – determine the Business Services and associated KPIs

– Get the Business Functions Right• Align Business Services and Organizational Structure – this is key to map in the KPIs are that are fundamental to SOEs• Organization structure needs to reflect Business Functions. What the organization does (the Business Functions) in order to

support its services need to be expressed as “service units”.

– Get the Business Processes right – and refactor the capabilities• Business Processes will form the basis of the instantiation and use of the technical SOA – so understanding them is important.• Capabilities will include both those cross-cutting across business functions and those specific to a business function.

Understanding them is important to defining the right RA and Roadmap

• Get the Operating Model right– Ensure that the organizational type is aligned against available Operating Models– Establish a governance framework

Success FactorsSuccess Factors for Business Technology and an SOE

Moving to a Service Oriented Enterprise is a journey. Getting theBusiness Technology right is critical.

18




• Map Strategy Capabilities to Technology SOA Capabilities– The SOA RA provides a good candidate set

• Establish Service and Business Process Catalogs– Use standards

• The SOA RA provides a high level Catalog• One of the deliverables of the SOA4BT project is going to include candidate KPIs and Catalogs

– Industry bodies (AQPC, TOG, etc.) have line of business specific models/catalogs– Get the information model right– Plan to Iterate

• Determine the Implementation Architecture– Use the SOA RA to determine the building blocks– Map using the SOA RA’s metamodel to determine Solution Building Blocks

Success FactorsAligning Business Technology to the Technical SOA

Moving to a Service Oriented Enterprise is a journey. Use the OSIMMand the SOA RA to provide a Roadmap

19




• Remember!

– SOA RA is an enabler

– SOA OSIMM as a rubric

– SOA4BT involves both the Business Technology and the Technical Implementationparts of the SOA

Success FactorsSuccess for a SOE

Moving to a Service Oriented Enterprise is a journey. However, modernbusiness drivers of cost, globalization and agility make this easier tounderstand and justify

20




• Overview• SOA4BT – the 3 pillars• SOA4BT – from pillar to execution• Success Factors• An example – the Acme Healthcare company• Discussion• Supporting Materials



Agenda

21




Healthcare in an Individualized Healthcare World

22

The new world of healthcare is person-centric

Figure from Kumar and Limaye, SCDM 2014

OMICS

IOT, SocialMedia

WellnessmHealth

DataAnalytics




Acme Healthcare Company

23

Regulatory and Compliance

The new world of healthcare is person-centric

A Person-Centric model based on seamless interoperability, regulatorycompliance and security are the cornerstones of modern healthcare

The Evolving Healthcare Ecosystemis Person-Centric

Pharma

CompanionDx

Payers

Providers

IDNs

PBM

Pharmacy

Patient

Healthcare IT

MediaSocialMedia

Things (IOT)Internet ofThings (IOT)

ONC Direct Connect

HIPAA Business Associate & Covered Entity

HIMMS & Continuaa introduce personal connected care

BRIDG FHIM focus

Labs

Figure from Kumar and Limaye, SCDM 2014




Acme Healthcare Enterprises

n Is essentially a payer – that is evolving into the an IDN model‒ The ability for SOAs to enable agility are existential capabilities in the modern business

environment

n It is being severely impacted by change

n In this example we are going to define the 3 pillars and map a portion of theSOA

n Due to its nature ( a presentation) there will be a lot of brevity in the content

Service Oriented Enterprises are becoming the norm. Organizationshave aligned structures on service models and the realization of itsimpact is becoming more ingrained in business execution.




Acme Healthcare Enterprise

25

EnterpriseDrivers

1. Quality

2. Agility

3. Cost

4. Innovation

5. SeamlessPartnerIntegration

1. Legacy systems with applicationsilos

2. Plan as opposed to individualcentricity

3. Tight coupling

4. Technical debt with largeinvestment in legacy platforms

5. Limited organizational backgroundof Service Orientation

6. Absence of Master DataManagement and Data Qualityability leading to “GIGO”

7. Intense market change &competition with key playersmigrating to new platforms

Legacy and TraditionalConstraints

Business Drivers

1. Ability to integrate with tradingpartners

2. New payment models

3. Wellness Vs symptomatic

4. Evidence based Vs Fee-for-service

5. New players and competitiveoperating environment

6. Staggering volume and cost increaserequiring cost-containment

7. Fluid and complex regulatoryenvironment

8. Need for common understanding ofinformation across the enterprise

9. Market Consolidation

Business Derived and NewTechnical Drivers

1. Adoption of Service Orientation andan API based architecture

2. Huge volumes of data

3. Diverse sources of data & rapidlyevolving formats (e.g. HIPAA 5010)

4. Complexity in available data –structured, unstructured, fluidrelationships

5. Evolving business understandingand use of data (adhoc to silo tobusiness vision)

6. Need for a common view andunderstanding of data (e.g. clinical)

7. Cloud Computing and IOT

8. Individualized Healthcare Paradigm

Acme Business Technology and Technical SOA1. Realigned organization against Services Provided (Service Unit model)

2. Defined KPIs – enterprise and service unit

3. Governance Framework and Operating Model Classification

4. Defined Business Strategy with Mission, Vision, Goal, Capability Map, Roadmapand Capability based Portfolio

1. ESB & SOA Fabric

2. API Mgmt & Runtime Governance

3. ID Mgmt & Security Centralization

4. Monitoring and Event Based response




• Numerous legacy systems all based on the same model• Government regulation driving a transition from a symptomatic to a wellness

model• Regulation rapidly changing• Security constraints in flux• Data not available or aligned at an individual level• Payment shifting from encounter to episode of care• Payment shifting from fee for service to evidence based• Business Organization in silos based on the Plan/Member/Employer model

– Largest unit is National Acme Retail Corporation based on employer of same name and hasmaximum revenue

... The list goes on...

Where Acme is..The Journey - the Strategy

Acme Organization has to change its Business Technology first..

26




• Strategy Pillar– Scorecards

• Financials driven by cost and revenue rolled up based on organizational unit silos

– KPIs and Metrics• KPIs based on Employers, as organization is modeled on a Plan/Member/Employer model

– Mission, Vision and Goals• All need updating

– Roadmap and Capability• No Roadmap• No Capability Based Model

– Roadmap and Capability• No Roadmap• No Capability Based Model



27




• Operational Pillar– Business Organization in silos based on the Plan/Member/Employer model

• Largest unit is National Acme Retail Corporation based on employer of same name and has maximum revenue

– Operational Functions apart from Back Office not defined

– Decisions not data based

– Business Process Models defined – at a silo level



28




• Operating Model Pillar– Falls into Diversification Model

• This model will not work with modern drivers

– Governance Framework• Defined to meet regulatory criteria

– Decision Rights defined – to meet regulatory criteria and enforce the DiversificationModel



29




• Scorecards– Financials driven by cost and revenue rolled up based on service unit silos– ALSO patient safety and satisfaction;– incorporate required standards such as STAR and HEDIS

• KPIs and Metrics– KPIs need to be realigned based on regulatory constraints AND a new Business Service Unit

based organizational model

• Capabilities!!!– Roadmap defined on Business and Technical Capabilities and Business Services

• Ability to view and capture individualized profiles across the patients lifetime

– Capability Catalog (both Business and Technical)• E.g. Near Real Time Provider Clinical Engagement; Member Identification Service

– Capability based Portfolio• E.g. Develop Person Data View; Generate STAR profile,; integration into local HIE

The Strategy Pillar first...The Journey - Changing the BT

Acme Organization has to change its Business Technology first..30




• Business Services, Functions and Processes– Define what the enterprise does – in terms of services offered

• E.g. Provider and Network Management (Service)

– Define the Business Functions in terms of Functions• E.g. Provider Credentialing• E.g. Generate Provider Profile

– Define the Business Processes• E.g. Generate Provider Profile

• KPIs and Metrics– KPIs for each Business Service Unit

• E.g. Patient Credentialing quality of service metrics

The Operational Pillar...The Journey - Changing the BT


31




• Operating Model Change– Transition into a Unified Model as that is a better fit for the new market environment

• Organizational Structure– Convert Business Services into Service Units

• Governance Framework– Leverage COBIT and the SOA Governance Framework to define an appropriate governance

framework– Decision rights in terms of Business Services and cross-unit capability execution

The Operating Model Pillar...The Journey - Changing the BT


32




• Map the technical (and business) capabilities to the SOA RA– E.g. – new ESB– Use the SOA RA Metamodel to define the Solution Building Blocks

• E.g. Acme Service Bus

• Define the operational SOA RA– Define the Business Process Catalog

• E.g. Generate Demographic Profile Business Process (this may be decomposed from the BT Business Process)

– Define the Business Service Catalog• Determine the Service Categories• Determine cross domain services (e.g. Person Health Model Service)

• Governance Framework– SOA Governance Framework and infrastructure– Capability mapping built into registry/repository– Portfolio governance and roadmap based on the SOA RA and OSIMM

The Enterprise SOA Technology Architecture...The Journey - Mapping to the Technology SOA

Acme Organization has to align and derive its Technical SOA from theSOA RA and the BT….

33




The Enabler: The SOA RA Meta-modelThe Business Perspective

1 Kumar (2012)

34




• Overview• The Business Perspective of Service Orientation• Alignment• Success Factors• What’s Next• Discussion• Supporting Materials


Agenda

35





• February, 2015• Name Title• Nikhil Kumar President & CEO

Co-Chair SOA Reference Architecture Project,The Open Group

• Sundar Ramanathan Manager, IT AdvisoryProject Chair SOA4BT Project,The Open Group

ApTSi TM


• Leadership• World Class

Technology• Experience

• Strategy• Integration & SOA• Application

Development &Reuse

• DB, EII & BINikhil Kumar PresidentEmail: [email protected]: http://blogs.ittoolbox.com/emergingtech/nikhilPhone: (248) 797 8143

Introductions

36

Sundar Ramanthan ManagerEmail: [email protected] http://sundarar1.wordpress.comPhone: (734) 272-2040


http://blogs.ittoolbox.com/emergingtech/nikhil


http://sundarar1.wordpress.com/




• Overview• The Business Perspective of Service Orientation• Alignment• Success Factors• What’s Next• Discussion• Supporting Materials


Agenda

37




The Enabler: The SOA RA V1The SOA RA

The SOA RA provides a reusable set of capabilities, architecturalbuilding blocks and an underlying framework to make SOA actionable

The SOA RA consists of 5“functional” layers and 4 “cross-cutting” layers

1. The SOA RA1 provides an industry standardset of capabilities and architectural buildingblocks for each layer, based on bestpractices and lessons learned from a numberof global organizations of various sizes andline of business

2. We use the business capabilities, industrytrends and drivers and best practices tofurther constrain and define the capabilities tobe supported, and define solutionarchitectures

3. We use the OSIMM for Roadmapping

38




The Enabler: The SOA RA V1 also be applied to otherparts of the SOA Ecosystem, including the Cloud

The SOA RA and the Cloud Ecosystem

The Cloud is a particular expression of SOA. The SOA RA provides afundamental fabric around which we can design cloud architectures

1 TOG 2012, Kumar (2012, 2011)

39




The Enabler: The SOA RA can be used to derivesolution architectures1

Actionable Execution

The process of translation to an actionable asset is expressed throughthe mapping of business capabilities and constraints to the creation ofan actionable SOA

1 Kumar (2012)

• Align• Actionable

BusCap.

• Map to RA• Quantifiable

SOACap.

TOGprovidesnormativeandprescriptiveset

ABB• Map toSoln. Arch

• ConstraintsSBB

40




The Enabler: The SOA RA MetamodelA Model

The metamodel provides for the realization of Solution Architectures

1 Kumar (2012), TOG (2011), Kumar & Arsanjani

41




• Here’s how you instantiate the SOA RA ….

• KPIs, NFRs and Business Capabilities help Constrain the RA

– They help to come to Architectural Decisions– You pick Options based on these Constraints– This helps Determine the required capabilities, ABBs and SBBs

Using It!1

• Align• Actionable

BusCap.

• Map to RA• Quantifiable

SOACap.

TOGprovidesnormativeandprescriptiveset

ABB• Map toSoln. Arch

• ConstraintsSBB

The Business Perspective

1 Kumar (2012), Kumar & Arsanjani (2011/2012)

42




The Enabler: The SOA RA MetamodelThe Business Perspective

1 Kumar (2012)

43




The Business Perspective

1 Kumar (2012)

• The TOG SOA RA and OSIMM enable Roadmapping– The OSIMM forms a rubric to assess conformance– The RA provides the what and how– Used together, you can plot how to evolve an RA and respond to change

Using It! Roadmapping

BusinessCapabilities

• Align againstBusinessDrivers

TechnicalCapabilities

• The SOA RAprovides analignment toABBs andLayers

Roadmap

• Express assets ofcapabilities

• Aligned toOSIMMdimensions

Phase Executionand Assessment

• Map SOA Capto RA ABBs

• Derive SBB• Assess

against theOSIMM

• Rebalanceand conductnext phase ofRoadmap

44




The Enabler: The SOA RA Meta-modelThe Business Perspective

1 Kumar (2012)

45




Overview: a world of SOAs

A slow but relentless revolution in which traditional technology management,historically delivered only by an IT organization, is changing to be pervasivetechnology use managed increasingly outside of IT’s direct control andmeasured by boosting business results.

• Business Technology

The coalescing of the Business Ecosystems and SOA Ecosystems areBusiness Technology real