1. Copyright © 2008 Accenture. All rights reserved. SOA: Challenges in an ungoverned environment Esteban Sabadotto Senior Manager SI-Oracle, UK/I Integration Capability Lead Open Standards Forum 2008

2. 2 Copyright © 2008 Accenture All Rights Reserved. How Far Are Telcos in Adopting SOA? Level 1 Plan & Organize Level 2 Deploy Level 3 Architected Level 4 Industrialized Get buy-in and assess organisation readiness for SOA transformation Quick Wins Enterprise Services and Processes SOA is industrialized Emergence of projects based on SOA principles Services are composed together to complete a task or create business processes Emphasis on consolidation of strategic and business services Design and development are services & processes oriented Services are part of the fabric of business operations Cross enterprise processes. Predictive IT. Business Insight The maturity model can be used to benchmark an organizations SOA capability and progress towards industrialization. A roadmap will help develop the SOA capability across your organization. The maturity model can be used for planning roadmap activities. Organise and strategise

3. 3 Copyright © 2008 Accenture All Rights Reserved. Why is it Proving Difficult? Risks: The business case and value proposition of SOA are not well defined resulting in a failure to achieve the business value for adopting SOA The roadmap for SOA is not clearly defined and the long-term execution managed resulting in a failure to achieve the broader goals The Service Identification process is not standardized and Architecture reviews are not performed resulting in a poorly defined target SOA Service development practices are not standardized and policies are not enforced resulting in poorly implemented services

4. 4 Copyright © 2008 Accenture All Rights Reserved. How Should Telcos Speed Up Their Adoption of SOA Define governance framework and identify key roles as a first priority (IT and Business) Define the strategic goal and roadmap to achieve the end goal Identify key quick wins that will bring out most of the benefits in a short period of time to gain buy-in Speak to sponsors in terms of benefits and ROI rather than how cool the technology and latest tools are Ensure benefits are clearly defined upfront and there is a tracking mechanism in place in order to measure benefits once projects are delivered Avoid tactical fixes whenever possible as they are likely to stay there for longer than anticipated and there will be a resistance to change them later on.

5. 5 Copyright © 2008 Accenture All Rights Reserved. For more information Esteban Sabadotto Senior Manager SI – Oracle UK/I Integration Capability Lead Tel: +44 20 7844 9891 Email: esteban.p.sabadotto@accenture.comesteban.p.sabadotto@accenture.com

6. 6 Copyright © 2008 Accenture All Rights Reserved. Appendix

7. 7 Copyright © 2008 Accenture All Rights Reserved. Composite Applications (Establishing Business Solutions) SOA – Common Challenges Challenges for Adoption: Business do not understand the SOA paradigm No strategic view of the architecture blueprint – architecture being driven by tactical requirements Segregate Business Units – No view of benefits outside their area No overall governance function – Only disparate IT teams managing delivery Funding models make initial delivery of business value too difficult /risky (e.g. 90 cycles) SOA is an enabling platform for achieving a high performance end state that is compromised of process-centric, metrics-enabled composite business solutions. Level of sophistication Custom, Packaged and Legacy Systems (Preserving existing investments) Business Services Layer (coarse and fine-grained services) World Class Processes and Process Control (Providing market differentiation) Business-Level Management and Visibility (Responding to the competitive landscape) SOA Foundation Process Excellence

8. 8 Copyright © 2008 Accenture All Rights Reserved. Potential Risks with Ungoverned SOA RiskImpact The business case and value proposition of SOA are not well defined resulting in a failure to achieve the business value for adopting SOA Misalignment of Business and IT Objectives due to a lack of common goals being communicated Opportunity Cost for not achieving the maximum ROI from SOA The roadmap for SOA is not clearly defined and the long-term execution managed resulting in a failure to achieve the broader goals Loss of Momentum in making progress to achieve the long term goals of SOA, including potential project abandonment Opportunity Cost for not achieving the maximum ROI from SOA Deterioration in Architecture and a potential increase in cost due to a lack of long term management The Service Identification process is not standardized and Architecture reviews are not performed resulting in a poorly defined target SOA Lack of Interoperability due to siloed business services Lack of Reuse due to an proliferation of single-use services and a tightly coupled & inflexible architecture Unnecessary Development Expenditure due to service rework and repair Service development practices are not standardized and policies are not enforced resulting in poorly implemented services Lack of Reuse due to unpredictable service quality and services not conforming to Service Level Agreements Potential Loss of Revenue due to a higher frequency of service outages Higher Support Costs due to poor service quality and higher frequency of outages While there are various approaches to managing SOA adoption, there are some serious risks to consider if an active SOA governance approach is not enlisted.

9. 9 Copyright © 2008 Accenture All Rights Reserved. Delivering SOA Adopting SOA does not only requires re-tooling of existing disciplines across the Business and IT, but also establishing an SOA Governance function. Service-Oriented Architecture requires collaboration with and between several existing enterprise capabilities Service-Oriented Architecture, in the long term, must be developed with a broad view of business capabilities if it is to be successful Service-Oriented Architecture will live in harmony with other architectures already in place (Batch, Client/Server, etc) Strategy And Governance Business Process Acumen Enterprise Architecture Solution Delivery Service Oriented Architecture An enterprise scale delivery capability for SOA should include all disciplines.

10. 10 Copyright © 2008 Accenture All Rights Reserved. SOA Adoption - Capability Framework An overall framework is required for SOA adoption and the development of an SOA capability. The level of impact will depend on the individual organization. While not all aspects need to be addressed at the onset, all areas are eventually required to be successful. Business Strategy Drives the need for a Service Oriented Architecture These disciplines are required to deliver SOA. SOA Governance is a new discipline comprised of Business and IT leadership ensuring an SOA vision is defined and achieved. The other existing disciplines will require some change to adopt SOA and ensure successful delivery. SOA Capability SOA Governance Solution Delivery Enterprise Architecture Integration Business Process Acumen CustomPackaged Methodology & Delivery Tools Business Architecture Application Architecture Technology Architecture Composite Process Modeling Capability Blueprint Process Optimization SOA Strategy & Roadmap Service Life Cycle Mgmnt Capability Development Journey Mgmnt & Communication Information Architecture A capability is made up of people, process and technology Process Architecture Developer Support Operations Technology Infrastructure SLA / OLA Monitoring / Reporting

11. 11 Copyright © 2008 Accenture All Rights Reserved. SOA Governance Defined SOA Governance is a management capability responsible for overall adoption of Service Oriented Architecture. This function ensures a strategy is established and executed in order to realize measurable benefit. At a high-level this capability is meant to:  Manage the journey: setting a strategy, managing progress and ensuring value is realized  Evolve the enterprise capabilities to adopt, build and support an SOA  Migrate the organization from being application-centric to service-centric  Establish and manage business & technology alignment Current Architecture Roadmap DecDec NovNov OctOct SeptSept AugAug JulyJuly JunJun MayMay AprApr MarMar FebFeb JanJan Project 1 Proje ct 1a Proje ct 1b Project 2 Proje ct 2a Proje ct 2b Project 3 Proje ct 3a Proje ct 3b SOA Program Management Project 1 Project 2 Project n … Target Architecture … Benefit Realized

12. 12 Copyright © 2008 Accenture All Rights Reserved. The SOA Capability Maturity Model Level 1 Plan & Organize Level 2 Deploy Level 3 Architected Level 4 Industrialized Organize and strategize Tactical implementations Enterprise Services Bus and SOA Platform SOA is industrialized The first step has to do with management (buy- in) and business needs (get business people involved). Special attention will be put on planning and assessing of the organization to prepare for an SOA transformation and foundation enablement. This phase, which can be iterative, will see the emergence of the first projects based on SOA principles. Start to make applications available as Web Services. Services start to be composed together to complete a task or create business processes. Emphasis on strategic and business services. Focus on the consolidation of the process and services architecture in creating an enterprise services bus. Design and development are services oriented and process oriented leveraging a set of SOA tools. Services are part of the fabric of business operations. Cross enterprise processes. Federation. Virtual enterprise becomes a reality. Utility and services infrastructure. Predictive IT. Business Insight. Near real time and process oriented. The maturity model can be used to benchmark an organizations SOA capability and progress towards industrialization. A roadmap will help develop the SOA capability across your organization. The maturity model can be used for planning roadmap activities.

13. 13 Copyright © 2008 Accenture All Rights Reserved. Strategy & Roadmap Identify Drivers (Business Value) Assess Enterprise Readiness (Arch / Org) Define SOA Strategy & Roadmap Execute SOA Roadmap Govern SOA Journey Identifying the business drivers and assessing the organizational readiness will help determine the appropriate strategy and ultimately the most effective roadmap. Strategy – Articulates the business objectives and capability development needs for adopting SOA and the resultant value to be achieved. Roadmap – Defines how the strategy should be executed over time to be successful.

14. 14 Copyright © 2008 Accenture All Rights Reserved. SOA Business Case SOA adoption should be executed in the context of a business case that can demonstrate measurable value with an acceptable return on investment. Target Initiatives / Business Priorities Potential SOA Benefits & Costs High Level Fit Assessment (Identified Benefits) High Level Capability & Infrastructure Needs Assessment (Identified Costs) Business Case Development ROI Model Development High Level Business Case Development Process Business Case: Describes overall scope and target value Articulates both quantitative and qualitative value levers Summarizes costs and benefits (leveraging ROI Model) ROI Model: Focuses on quantitative value levers (benefits) Estimates capability and infrastructure costs Provides the detail to support the business case Calculates Payback Period and Net Present Value