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This Presentation Courtesy of the
                                                   International SOA Symposium
                                                   October 7-8, 2008 Amsterdam Arena
                                                   www.soasymposium.com
                                                   info@soasymposium.com


                                                                    Founding Sponsors




   Platinum Sponsors




   Gold Sponsors                             Silver Sponsors




                                             Enterprise SOA
                                                  and
                                              Convey‘s Law
                                                           October 2008
                                                            Dirk Krafzig




Copyright © 2004-2008 by BusinessGlue GmbH




                                                                                        1
About the Speaker


             Dirk Krafzig
             Married, 2 Kids
             Promoting SOA since 2000
             Enterprise SOA: Krafzig, Banke, Slama,
             Prentice Hall, 2004.

             Today
                  SOA Coaching
                  IT Strategy Consulting

Slide 3




          Conway’s Law


             Conway„s law: "Organizations which design
             systems are constrained to produce designs
             which are copies of the communication structures
             of these organizations."

             Example:
             Insurance Industry        Sales        Claims    Underwriting   …
                                  Department    Department     Department




                                        Sales       Claims    Underwriting   …
                                  Application   Application    Application




Slide 4




                                                                                 2
Conway’s Law




                              Is that a problem?


             Example:
             Insurance Industry            Sales        Claims    Underwriting   …
                                      Department    Department     Department




                                            Sales       Claims    Underwriting   …
                                      Application   Application    Application




Slide 5




          Re-organization Can Jeopardize IT Structure


                                           Sales        Claims    Underwriting   …



                  ✔
                                      Department    Department     Department




                                            Sales       Claims    Underwriting   …
                                      Application   Application    Application




                                                                                 …


                  ✖
                                          Health           Life          P&C
                                      Department    Department     Department


                                       ?             ?              ?
                                            Sales       Claims    Underwriting   …
                                      Application   Application    Application



Slide 6




                                                                                     3
Re-organization Can Jeopardize IT Structure


                                       Sales             Claims          Underwriting   …



                 ✔
                                  Department         Department           Department




                                        Sales             Claims         Underwriting   …
                                  Application         Application         Application




                                                                                        …


                 ✖
                                     North
                                    America                 EMEA                 APAC


                                   ?                   ?                    ?
                                        Sales             Claims         Underwriting   …
                                  Application         Application         Application



Slide 7




          Re-organization Can Jeopardize IT Structure


                                                Claims Department
                                                                                        …



                 ✔
                                    Simple Cases   Complex Cases     Complains




                                                                                        …
                                                Claims Application




                                                Claims Department
                                                                                        …


                 ✖
                                                   All-round Clerk



                                                       ?
                                                                                        …
                                                Claims Application


Slide 8




                                                                                            4
Re-organization Can Cause The Need For
          Major Change Of IT Applications

                            Expensive                                                       Risky


                Sales        Claims    Underwriting                                                         Health            Life          P&C
           Department    Department     Department                                                      Department     Department     Department




                 Sales       Claims    Underwriting                                                           Health           Life           P&C
           Application   Application    Application                                                      Application    Application    Application




                                                                                  Complex
                               Long Way


Slide 9




          SOA Transformation
                                                                                      Incremental



                Sales        Claims    Underwriting        Sales         Claims       Underwriting
           Department    Department     Department    Department     Department        Department



                                                      Sales App.     Claims App.      Underwriting
                                                                                                        Light-weight
                                                                                                        applications
                 Sales       Claims    Underwriting
           Application   Application    Application




                                                      Customer                          Contract
                                                        Service                          Service
                                                                        Claims
                                                                        Service


                                                                                              Product
                                                          Payment                             Service
                                                           Service
                                                                            Archive
                                                                            Service




               Create reusable IT components
Slide 10




                                                                                                                                                     5
SOA Transformation




                Sales        Claims    Underwriting                      Health             Life             P&C
           Department    Department     Department                   Department      Department        Department



                                                                     Health App.     Life App.         P&C App.
                 Sales       Claims    Underwriting
           Application   Application    Application




                                                                     Customer                            Contract
                                                                       Service                            Service
                                                                                        Claims
                                                                                        Service


                                                                                                              Product
                                                                          Payment                             Service
                                                                           Service
                                                                                             Archive

           Light-weight applications                                                         Service




           can be changed/replaced easily
Slide 11




       Let’s Apply Conway’s Law


                                                      Those Apps are going to
                                                      become monoliths.

                Sales        Claims    Underwriting                      Health             Life             P&C
           Department    Department     Department                   Department      Department        Department



                                                                     Health App.     Life App.         P&C App.
                 Sales       Claims    Underwriting
           Application   Application    Application




                                                                     Customer                            Contract
                                                                       Service                            Service
                                                                                        Claims
                                                                                        Service


                                                                                                              Product
                                                                          Payment                             Service
                                                                           Service
                                                                                             Archive
                                                                                             Service




Slide 12




                                                                                                                        6
Let’s Apply Conway’s Law



                                                       Can those services survive?

                Sales        Claims     Underwriting        Sales         Claims       Underwriting          Health             Life             P&C
           Department    Department      Department    Department     Department        Department       Department      Department        Department



                                                       Sales App.     Claims App.      Underwriting      Health App.     Life App.         P&C App.
                 Sales        Claims    Underwriting
           Application    Application    Application




                                                       Customer                          Contract         Customer                           Contract
                                                         Service                          Service           Service                           Service
                                                                         Claims                                              Claims
                                                                         Service                                             Service


                                                                                               Product                                            Product
                                                           Payment                             Service        Payment                             Service
                                                            Service                                            Service
                                                                             Archive                                             Archive
                                                                             Service                                             Service




                 Can those services evolve?
Slide 13




       Shared Services Need Owners


                                                            Sales         Claims       Underwriting
                                                       Department     Department        Department



                                                       Sales App.     Claims App.      Underwriting




                           CRM
                         Department                    Customer                          Contract
                                                         Service                          Service
                                                                         Claims
                                                                         Service
                                                                                                                  Shared
                                                           Payment
                                                                                               Product
                                                                                               Service            Services
                                                            Service
                                                                             Archive
                                                                             Service
                                                                                                                 Department


                                   Global
                                   Billing
                                 Department
                                                                            SOA
                                                                         Competence
                                                                           Center




Slide 14




                                                                                                                                                            7
Shared Services Need Owners


           Budget
           Incentives
           Proactive planning
           Long-term vs. short-term perspective
            Quality
            Costs




Slide 15




       How To Roll-out SOA

                                     Seems to be fast …
                                     Need enthusiasts that stay for
                                     10+ years in the company



                                     Have you ever seen that?
                                     Need a CIO to that stays for
                                     10+ years in the company



                                     Allow organization to evolve in
                                     manageable steps



Slide 16




                                                                       8
Case Studies

Slide 17




       Case Study 1: Telecommunication


           Global telecommunication company
           High affinity for technology
           Weak IT governance


           Step 1: Launch “SOA Department”
           Step 2: Create technical platform
            Leading edge technology
            Model-driven
           Step 3: Provide SOA middleware for projects
           Thousands of service operations …
           … but yet only very few reusable assets


Slide 18




                                                         9
Case Study 2: Insurance A


           Regional insurance company in Europe
           Have been in a miserable situation after several failed
           “internet” projects

           New CIO used SOA to leverage legacy applications for
           new requirements
           Very successful projects
            Costs
            Speed
           However …
            No business owner
            When CIO left SOA initiative slowed down

Slide 19




       Case Study 3: Insurance B


           Global insurance company
           3 regional SOAs already in place
           Need for a global initiative to support company objectives

           Start the 4th SOA in order to create global platform
           Department for Shared Platforms
            SOA Competence Center
            Email, HR, Finance, Archive …
           Challenges
            Alignment with business lines
            Top management support
            Funding

Slide 20




                                                                        10
Case Study 4: Transportation


           Global transportation firm / Very specialized small market
           4 departments of IT daughter deliver 4 parts of solution
           offering


           Requirements
            More homogeneous product
            Synergies between departments
            Facilitate integration
           1 shared services group
            Infrastructure ESB
            Functional architecture
            Shared components

Slide 21




       Thank you …


Slide 22




                                                                        11

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Dirk Krafzig S O A And Conveys Law

  • 1. This Presentation Courtesy of the International SOA Symposium October 7-8, 2008 Amsterdam Arena www.soasymposium.com info@soasymposium.com Founding Sponsors Platinum Sponsors Gold Sponsors Silver Sponsors Enterprise SOA and Convey‘s Law October 2008 Dirk Krafzig Copyright © 2004-2008 by BusinessGlue GmbH 1
  • 2. About the Speaker Dirk Krafzig Married, 2 Kids Promoting SOA since 2000 Enterprise SOA: Krafzig, Banke, Slama, Prentice Hall, 2004. Today SOA Coaching IT Strategy Consulting Slide 3 Conway’s Law Conway„s law: "Organizations which design systems are constrained to produce designs which are copies of the communication structures of these organizations." Example: Insurance Industry Sales Claims Underwriting … Department Department Department Sales Claims Underwriting … Application Application Application Slide 4 2
  • 3. Conway’s Law Is that a problem? Example: Insurance Industry Sales Claims Underwriting … Department Department Department Sales Claims Underwriting … Application Application Application Slide 5 Re-organization Can Jeopardize IT Structure Sales Claims Underwriting … ✔ Department Department Department Sales Claims Underwriting … Application Application Application … ✖ Health Life P&C Department Department Department ? ? ? Sales Claims Underwriting … Application Application Application Slide 6 3
  • 4. Re-organization Can Jeopardize IT Structure Sales Claims Underwriting … ✔ Department Department Department Sales Claims Underwriting … Application Application Application … ✖ North America EMEA APAC ? ? ? Sales Claims Underwriting … Application Application Application Slide 7 Re-organization Can Jeopardize IT Structure Claims Department … ✔ Simple Cases Complex Cases Complains … Claims Application Claims Department … ✖ All-round Clerk ? … Claims Application Slide 8 4
  • 5. Re-organization Can Cause The Need For Major Change Of IT Applications Expensive Risky Sales Claims Underwriting Health Life P&C Department Department Department Department Department Department Sales Claims Underwriting Health Life P&C Application Application Application Application Application Application Complex Long Way Slide 9 SOA Transformation Incremental Sales Claims Underwriting Sales Claims Underwriting Department Department Department Department Department Department Sales App. Claims App. Underwriting Light-weight applications Sales Claims Underwriting Application Application Application Customer Contract Service Service Claims Service Product Payment Service Service Archive Service Create reusable IT components Slide 10 5
  • 6. SOA Transformation Sales Claims Underwriting Health Life P&C Department Department Department Department Department Department Health App. Life App. P&C App. Sales Claims Underwriting Application Application Application Customer Contract Service Service Claims Service Product Payment Service Service Archive Light-weight applications Service can be changed/replaced easily Slide 11 Let’s Apply Conway’s Law Those Apps are going to become monoliths. Sales Claims Underwriting Health Life P&C Department Department Department Department Department Department Health App. Life App. P&C App. Sales Claims Underwriting Application Application Application Customer Contract Service Service Claims Service Product Payment Service Service Archive Service Slide 12 6
  • 7. Let’s Apply Conway’s Law Can those services survive? Sales Claims Underwriting Sales Claims Underwriting Health Life P&C Department Department Department Department Department Department Department Department Department Sales App. Claims App. Underwriting Health App. Life App. P&C App. Sales Claims Underwriting Application Application Application Customer Contract Customer Contract Service Service Service Service Claims Claims Service Service Product Product Payment Service Payment Service Service Service Archive Archive Service Service Can those services evolve? Slide 13 Shared Services Need Owners Sales Claims Underwriting Department Department Department Sales App. Claims App. Underwriting CRM Department Customer Contract Service Service Claims Service Shared Payment Product Service Services Service Archive Service Department Global Billing Department SOA Competence Center Slide 14 7
  • 8. Shared Services Need Owners Budget Incentives Proactive planning Long-term vs. short-term perspective Quality Costs Slide 15 How To Roll-out SOA Seems to be fast … Need enthusiasts that stay for 10+ years in the company Have you ever seen that? Need a CIO to that stays for 10+ years in the company Allow organization to evolve in manageable steps Slide 16 8
  • 9. Case Studies Slide 17 Case Study 1: Telecommunication Global telecommunication company High affinity for technology Weak IT governance Step 1: Launch “SOA Department” Step 2: Create technical platform Leading edge technology Model-driven Step 3: Provide SOA middleware for projects Thousands of service operations … … but yet only very few reusable assets Slide 18 9
  • 10. Case Study 2: Insurance A Regional insurance company in Europe Have been in a miserable situation after several failed “internet” projects New CIO used SOA to leverage legacy applications for new requirements Very successful projects Costs Speed However … No business owner When CIO left SOA initiative slowed down Slide 19 Case Study 3: Insurance B Global insurance company 3 regional SOAs already in place Need for a global initiative to support company objectives Start the 4th SOA in order to create global platform Department for Shared Platforms SOA Competence Center Email, HR, Finance, Archive … Challenges Alignment with business lines Top management support Funding Slide 20 10
  • 11. Case Study 4: Transportation Global transportation firm / Very specialized small market 4 departments of IT daughter deliver 4 parts of solution offering Requirements More homogeneous product Synergies between departments Facilitate integration 1 shared services group Infrastructure ESB Functional architecture Shared components Slide 21 Thank you … Slide 22 11