SOA, SOA, and more SOA Business 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-business 2000sHorizontal Integration, XML, Web Services Transaction Middleware Process Driven / Event Driven Centralized Computing 1970sBatch, OLTP, COBOL Functional Automation Network Based Computing: e-business 1990sERP, Internet, Java, e-Commerce, B2B Integration Connection + Functional Re-Automation Distributed Computing 1980sPCs, Client/Server, Relational Database, Networks Local Empowerment Increasing Need for Integration

Service Oriented Architecture (SOA) The Next Step on the Connectivity Evolution Message Queuing Abstracts the connectivity logic from the application Message Brokering Abstracts the connectivity + mediation logic from the application Service Orientation Reduces application to its core business functions (i.e. a service) Application Degree of Flexibility and Reuse Direct Connectivity All connectivity, mediation and additional logic buried in the application Application Lines of code Application Services Connectivity, Mediation and Additional Logic Mediation and Additional Logic Connectivity Logic Connectivity and Mediation 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 & Design Development DevelopmentTesting Deployment Deployment Service SOR Service Data Utility Service Call Routing Transformation Service Composition Provider UtilitySOR Data Provider

How are customers thinking technically about flexible IT through SOA? The SOA Lifecycle  Gather requirements  Model & Simulate  Design  Discover  Construct & Test  Compose  Manage applications & services  Manage identity & compliance  Monitor business metrics  Financial transparency  Business/IT alignment  Process control  Integrate  People  Process  Information

SOA Entry Points Enable Agility Solve today’s problems and plan for tomorrow Traditional Approach (Solve for Today) SOA Approach (Solve for Today and Tomorrow) ReuseCreate each capability for each application Create once and use multiple times across applications ConnectivityProprietary point to point connection.Open standards allowing any number of connections InformationIndividual data sets to support each application Integrate information invoked when and where needed across applications PeopleStatic dashboard interface with integrated applications Business-user directed mashups and open portal applications with reusable portlets ProcessHard 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 solutions Budgetary 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 Action Enabling 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 Action Connecting 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 Action Optimizing 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 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, , and administrative support to every student

Process in Action Streamlining and automating business processes Yansha Department Store Industry Pains:  Cumbersome, manual order fulfillment process Smarter Business Outcomes:  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 Process Modeling  Business Activity Monitoring Business Activity Monitoring  Business Event Processing Business Event Processing

Questions?

Smarter Planet …. Our world is becoming All things becoming