the it environment of an on demand business demand... · the it environment of an on demand...

© 2002 IBM Corporation

Business Consulting Services

Ville-Mikko Kanerva | December 1, 2003

E-business on demand

The IT Environment of an on demand Business


E-business on demand | the IT environment of an on demand business | Ville-Mikko Kanerva © 2003 IBM Corporation2

Table of contents

On demand Business Transformation

On demand Operating Environment

On demand Application Environment

On demand Systems Environment

On demand Delivery Environment



Systems Environment

UtilityServices

ApplicationEnvironment

BusinessTransformation

Operating Environment

The Road to Becoming an on demand Business:Business Transformation



The situation in a troubled industry�



Unstoppable Drivers

The change in customer demands, technological innovations and government regulations is increasingly sudden and dramatic

The growth and predictability of revenues and margins becomes even more challenging due to economic uncertainties and demanding investors

Pervasive dangers become real and prevalent as global firms see increased exposure to natural disasters, unstable geopolitics and other market shocks

Due to increasingly transparent markets, competitive intensity is growing in severity as existing players and new entrants scramble to provide value to customers

Unrelenting Financial Pressures

Continuous Discontinuities

UnpredictableThreats

CompetitiveDarwinism



On demand Imperatives

Responsive ResilientVariableFocused

Unstoppable Drivers

on demand Imperatives

Unrelenting Financial Pressures

Continuous Discontinuities

UnpredictableThreats

CompetitiveDarwinism

Seeming almost intuitive in its ability to sense and respond rapidly to unpredictable changes in the market environment and the needs of all its constituents

Able to adapt cost structures and business processes flexibly, in order to reduce risk and to do business at higher levels of productivity, cost control, capital efficiency and financial predictability

Prepared for changes and threats � be they technological, economic, or political �enabling the business to continue operating with consistent availability, security and privacy

Committed to concentrating on differentiating competencies, using tightly integrated strategic partners to manage selected non-differentiating activities



Example

From Helsingin Sanomat on Thursday Nov. 27

! Companies move their production globally at an ever-increasing speed

- Some look for cheap labour � some for better skills- Overall, any production can be moved

! Technology advances used to last for years � not anymore− Process improvements imitated by competition ever more quickly

! Enabled by technology, assisted by freely-moving capital



Systems Environment

UtilityServices




The Road to Becoming an on demand Business:Operating Environment



Business Transformation

On demand Operating Environment

!Enable businessflexibility and responsiveness

!Reduce cost!Align IT processes with business priorities ! Improve asset

utilization

!Address new business opportunities

An on demand business needs an on demand Operating Environment



The on demand Operating Environment Overview

Transactional Processes

Application Development, Deployment & Maintenance

Collaboration Information Management

Integration of People – Process – InformationAnywhere, any time, from any device

Virtualization Engine

StorageServers Distributed Systems Network

Security Optimization Provisioning

Policy-based Orchestration

Availability

Business Objectives

and Policies

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Operating Environment functionality

Virtualization ServicesDynamic hardware virtualization

Clusters Blades Networks Storage

Business Integration Services! Model driven design ! Solution mapping! Solution Deployment

! Process Simulation! Activity Management! Process Management

Common Runtime Services

! Integrated System Console! Security and Identity! Transaction Coordination! Data Persistence

! Workload Management! Workflow! Collaboration! Application Connectivity

Automation Services

! Policy-based orchestration

! Event correlation

! Provisioning

Busi

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Pro

cess

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Systems Environment

UtilityServices




The Road to Becoming an on demand Business:the Application Environment



Business Integration Services enable business flexibilityand focus on core capabilities and dynamically integrate outside services as needed.








Automation Services


! Event correlation

! Provisioning

Busi

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! Model processes! Integrate applications! Connect externally! Monitor processes! Manage business

results

! Standardized access to applications

! Access anytime, anyplace

! Dynamically adaptive role-based workplaces

! Leverage data and content resources

! Access data in place

! Consolidate data! Transform data! Manage data

placement

Integration is about efficient and flexible linking of resources to optimize operations across and beyond the enterprise.

People Processes Information

+ +

With Security and Integrity



?

Sense and Respond Capabilities require new approach to how Applications are built

Process

Access

SecurityLogic

Data

Monolithic Application

Logic

Application

Logic

Application

Process Manager

Process

Security Svcs

Access

Management

DataInformation Mgmt

Analytics

Logic

Application

User Interface

S

D

DD

E



ComponentArchitecture

ServiceArchitecture

ComponentArchitecture

Consum

erProvider

ApplicationArchitecture

New generation Service-Oriented Architecture is a critical pre-requisite to Business Process Integration and thus Business Process Transformation.! A Service-Oriented Architecture (SOA) is one that! 1)Defines functions (that need to be used by more than one system) as "services"! 2)Each has a defined, implementation-independent interface which is common to all clients! 3)Provides one logical instance of each service

Note the implication for business processes:

Service oriented architectures are most consistent with homogenous business processes across the enterprise

Full scale Objective is to simplify and streamline standard business practices, not remove unique implementation

Involves process re-engineering value or discriminator



"Service" Interfaces vs. "API" Interfaces ...

By mail1. Client requests application form2. Provider sends it3. Client fills it in and returns it4. Provider says "yes" or "no"

By phone:1. Client calls provider2. Provider says "Hello, how can we

help"3. "I'd like a mortgage please"4. "What's your name"5. "John Smith"6. "What's the property address"7. "27 ..."8. etc.9. etc.10.etc.11.etc.12. "... OK, I'll your mortgage

agreement number is 12345, I'll mail the rest of the details"

Service-like

API-like

Applying a mortgage



Application Server

But then, what are Web Services?

WebPresentation

BusinessLogic

HTML

FW

HTTP

ExternalApplications

XML

HTTP

Databases

At root, Web Services is a new system-to-system integration protocol that already is or can be supported by anything, and for which the infrastructure already exists!

! Web Services are great, but they're just a communication protocol

! Service Oriented Architectures are great, but they don't addresstechnology interoperability

! Together, they're really something



Systems Environment

UtilityServices




The Road to Becoming an on demand Business:the Systems Environment










Automation Services


! Event correlation

! Provisioning

Busi

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Pro

cess

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Virtualization of the physical infrastructure is the first enabling step required to achieve business flexibility.



Virtualization is about removing �hardwired� links between resources and resource consuming applications and/or systems�

Virtual Resources� Proxies for physical resources: same interfaces/functions, different attributes.� May be part of a physical resource or multiple physical resources.

Virtualization� Creates virtual resources and �maps� them to physical resources.� Primarily accomplished with software and/or firmware.

Physical Resources� Hardware components with architected interfaces / functions.� May be centralized or distributed.� Examples: memory, disk drives, networks, servers.










Automation Services


! Event correlation

! Provisioning

Busi

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Pro

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Automation Services is the main technology solution required for building an on demand business.



Directory Directory and Security and Security

ServicesServicesExistingExisting

ApplicationsApplicationsand Dataand Data

BusinessBusinessDataData

DataDataServerServerWebWeb

ApplicationApplicationServerServer

Storage AreaStorage AreaNetworkNetwork

BPs andBPs andExternalExternalServicesServices

WebWebServerServer

DNSDNSServerServer

DataData

Dozens of systems and applications

Hundreds of components

Thousands of tuning

parameters

Automation is the IBM response to �Dealing with complexity -the single most important challenge facing the IT industry� -Paul Horn, Director of IBM Research�! Tens of thousands of combinations of

interrelated configuration parametersNearly impossible to tune for optimal

performance ! Unknown dependencies creating change risks

Extended change cyclesHigh risk of inadvertent human error

! Hardware and software version control issuesIncompatibilities lead to system failuresExtremely complex pre-req/co-req

situations! Increased security exposures

Creates unacceptable risk! Capacity in the wrong place at the wrong time

Demand peaks cause performance degradation

Demand troughs create under-utilized capacity

! Difficult for humans to consistently make time critical decisions Human errors cause unscheduled

downtime



Systems Environment

UtilityServices




The Road to Becoming an on demand Business:Utility Services



IT as a Utility

Services-based variable costsAsset-based fixed costsCost Profile

Incremental investmentsLarge-scale, up-front investments

Capital Investment

Self-serviceDedicated business analysts

User Management

Usage-based billingEstimated allocationCharge-back

Nominal procurement; short lead times

Varying lead timesCapacity Provisioning

Required usagePeak usageIT Infrastructure

Traditional Computing Utility Services



Agenda

WebSphere StudioAn open comprehensive development environment for building dynamic e-business applications

WebSphere Application ServerA high-performance and extremely scalable transaction engine for dynamic e-business applications

WebSphere Host IntegrationSoftware to leverage and extend legacy assets for new e-business solutions

WebSphere PortalA single point of personalized interaction with applications, content, processes and people

WebSphere EveryplaceSoftware for extending e-business applications to mobile devices

WebSphere CommercePowerful sell-side solutions to handle the challenges encountered in customer and trading partner environments.

WebSphere Business IntegrationSoftware needed to model, integrate, automate, and manage efficient and flexible business processes

WebSphere MQSoftware to connect internal and external applications to exchange information reliably and securely

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