Selling SOA to Your CEO Michael Liebow, Vice President Business Development, Global Consulting & SOA IBM Global Business Services

IBM SOA We spoke to 1,130 CEOs and conducted in-depth analysis to determine the characteristics of the Enterprise of the Future How are organizations addressing:  New and changing customers – changes at the end of the value chain  Global integration – changes within the value chain  Business model innovation – their response to these changes ANALYSIS Quantitative and Qualitative  Current behavior  Investment patterns  Future intent  Choices of financial outperformers  Case studies of excelling organizations SCOPE & APPROACH 1130 CEOs and Public Sector Leaders  One-hour interviews  78% Private, 22% Public Sector  32 Industries  33% Asia, 36% EMEA, 31% Americas  80% Established, 20% Emerging Economies

IBM SOA CEOs see significant change and opportunity ahead, and in response radically change their business designs CEOs are  Expecting significant change (increased by 33%), while the ability to manage change has not kept pace – 39% feel unprepared  Investing heavily in engaging newly prosperous, more informed and collaborative, and socially aware customers  Moving aggressively toward global business designs, deeply changing their capabilities, partnering more extensively and using M&A to grow  Making bolder moves if they are from financial outperforming companies Findings from 1130 interviews

IBM SOA How do you maximize future flexibility and growth potential by adopting a business-driven framework?  Focused on process improvement by consolidating disparate systems  Ensured back-end processes support business goals like improved mobile account activation  Improved enterprise wide business intelligence with an integrated view of the customer to respond to needs more quickly and increase customer satisfaction Bharti

IBM SOA Differences in  Culture  Languages  Priorities  Complex Infrastructure  No Business Architecture & Blueprint Inhibitors for Alignment of Business and IT

IBM SOA Companies Want IT to Deliver More Business Value Today’s IT Desired IT Increase Value Creation Decrease Maintenance & Delivery 30% New Capability 70% Sustaining & Running Existing Capability 45% New Capability 55% Existing Capability

IBM SOA SOA is a Business Based approach to designing IT systems that enables… 5… Business flexibility 4… Better business processes 3… Easier integration 2… Reuse of assets 1… Reduction of risk “ Anything that changes can do that much better if the system is architected in SOA. ” Gartner How Can SOA Help Your CEO?

IBM SOA Yansha Department Stores How do you get 1,800 national and international suppliers to buy into a new, more efficient way of doing business?  Reduced order lead time from 2.5 days to 4.5 hours  Improved order acknowledgement rate from 80 to 99%  Reduced order error rate from nine to one percent  Achieved ROI in nine months

IBM SOA Don’t Call It SOA Pick Projects with Tangible Benefits Focus on Solutions Build a Value Focused Business Case Things to Remember When Talking SOA to Your CEO 1 Reference Thought Leaders

IBM SOA Explain the value and benefits in business terms that reflect the organization's goals –  cost reduction  productivity  competitive advantage – before diving into a technical conversation Don’t Call It SOA – Speak the Right Language 1

IBM SOA Benchmark the Value with Key Agility Indicators 270 KAIs in the Benchmark Wizard Time to establish new risk policy 60 days 21 days Time between order delivery and order generation 24 hrs 48 hrs Average time to locate critical skills 8 wks 12 wks

IBM SOA Pick Projects with Tangible Benefits When selecting those small test projects, choose to integrate and automate those business processes that can have the most widespread, positive impact across the organization 2

IBM SOA Process entry point 80% reduction in time to market for customized services Partner externally in broad processes 98% of transactions in sub-second Greater satisfaction For example… Foundational Extend End-to-End Transform Adapt Dynamically Transform online channel 30% increase in transactions 60% increase in online conversion rate Pursuing acceptance & processing of filings and payments via any time, source or channel Distinct Value with Every Style Regardless of Where You Choose to Engage

IBM SOA Position SOA enabling business solutions that tackle the key challenges faced by your business Focus on Solutions 3 Industry Name Insurance Operations of the Future Insurance Self Service Chemical & Petroleum Information Integration Framework BankingCustomer Care & Insight Energy & UtilitiesIntelligent Utilities Network Government CBRM - Identity Mgmt NCO - Mission Execution Intelligent Transportation System Integrated Case Mgmt. Healthcare Clinical Information Systems Pandemic Mgmt Healthcare Plan Modernization TelecommunicationsService Assurance Examples

IBM SOA Generali Group Insurance Operations of the Future  Life Insurance division needed increased efficiencies across multiple legacy applications and infrastructure  Business processes optimization and automation, input and work management needed  Key reuse and business flexibility focus – SOA was the how  20%-30% productivity improvement with SOA implementation

IBM SOA Cite external views on the growth and adoption of service oriented architectures and point to relevant SOA success stories within your industry (and by your competitors) Reference Thought Leaders 4

IBM SOA Learn How SOA Provides Value to Your Industry Insurance Healthcare Supply Chain Management BankingBiopharmaceuticalElectronicsRetail Government

IBM SOA Outline the immediate and long-term results from this strategy while avoiding discussions about specific version numbers and technical jargon Build a Value Focused Business Case 5

IBM SOA You need:  Customized Component Business Model Map  SOA Reference Architecture  SOA Vision and Strategy  SOA Business Case  SOA Governance Operating Principles & Framework  SOA Roadmap Guiding principles for applying the SOA benefit framework Develop an SOA Strategy, Architecture, Business Case, Governance Framework, and Roadmap to guide the transformation of an organization and systems towards a service-oriented model Business needs context and vision to understand your approach to SOA

IBM SOA WW Experience Sharing Defining an SOA Project with Business Case Project Implementation Relationship Business Value Quantified Business Problems Defined Process Designed IBM Workshop WW Experiences Local Expertise Executive Support IBM Industry Roadmap Process Improvement Arch DevelopmentValue Assessment Solution Elaborated Project Definition SOA Rapid Value Assessment Tool

IBM SOA Contact your IBM representative – They can help!! Stop talking about SOA. Start doing it.