SOA Best Practices for Smarter Business Outcomes

IBM Smart SOA

Keys to Thriving in Today’s Economy with
SOA Enabled Business Process Management
An approach to driving Smarter Business Outcomes

Presenter: Garry Gomersall, SOA Business Executive, IBM Software

© Copyright IBM Corporation 2009

IBM Smart SOA

Business pressures are compounding as IT constraints are
growing
Launch new Customized
Business and innovative
Shorter
products for niche
Pressures products
change cycles
markets

Agents
Employees

Customers Suppliers

Resellers 3rd Party
Providers

Complex Complex IT budget spent on
IT Constraints processes applications maintenance, not new
and systems and interfaces investments

2 © Copyright IBM Corporation 2009

IBM Smart SOA

Business & IT Need To Align Through BPM & SOA
…To Drive Specific Business Outcomes
Business Process Management Business Outcome

WHAT WHY
? ?

CRM
F&A

Order

Claims
HOW
Check Availability ?
New Customer

Business & IT
Alignment:
Application View: Service Oriented Architecture (SOA)
SOA Composite Business Services
Governance

IBM Smart SOA

Smarter Business Outcomes Through Smart SOA

2 Tame Chaos With 1 Drive Agility into the
Process Organization

3 Meet New 4 Build a ‘Smart’
Customer Needs SOA Foundation


IBM Smart SOA

Smart SOA™: Distinct Value with Every Path
Regardless of Where You Choose to Engage
Value to Greater agility in Optimization and Business model Predictive
Business specific, innovation across innovation to business
departmental end-to-end support the automatically
business areas business processes Globally Integrated responding to
Enterprise market forces
Collaboration Coordination Enterprise-wide Enact significant
Scope within a line of across lines of organizational shifts without direct
business business cooperation IT involvement

Extend Adapt
Foundational End-to-End Transform Dynamically

Value to IT Focused, proven, End-to-end business IT for strategic Technology becomes
high-ROI projects process management advantage and invisible
to innovate and business model
optimize innovation
% functions
expressed as <10% <40% <80% >80%
services
% of services <5% <20% <50% >50%
reused
Based on 5700 customers using our SOA offerings


IBM Smart SOA

Process Integrity Takes SOA to the Next Level
Enabling Integrity of Transactions, Interactions and Information

Extend Adapt
Foundational End to end Transform Dynamically

SOA Entry Points Process Integrity


IBM Smart SOA

Process Integrity is Critical to Advanced SOA Projects
To Achieve Business Agility without Sacrificing Integrity
Critical end-to-end processes require an SOA environment that can provide:
 Full transactional support across distributed systems
 Automated compensation and resynchronization
 Recovery at all levels (service bus, application, database, server…)
 Enterprise-class scalability to handle 1000’s service calls per minute
CRM Supply Chain Supply Chain Financial
(internal) (external)
Application A Application B Application C Application D
End-to-end
Integration

Connectivity (ESB, Messaging, Adapters, Registry/Repository, Standards)
Process

Process Automation (Choreography, Flow Control)

Security Quality of Service


IBM Smart SOA

Extending the SOA Platform

 Robust infrastructure
 “Light weight” for Enterprise QoS  Business in control of
consumer platform  Service management Policy and Rules in
response to Events
and governance
 Facilitates creation  Enables dynamic,
of user-defined  Facilitates creation
industry-specific
situational service- of composite
business services
based applications applications
 Facilitates creation
of next generation
applications

Business Services
Web 2.0 Platform SOA Foundation
Platform


IBM Smart SOA

Extending The SOA Provider Platform: Business Services

Business Level Agility Business
 Dynamic assembly and delivery of services Services
Service based on business context
Oriented  Reusable building blocks at a business level
Applications  Incremental approach to business solutions that
lowers risk
Choreo-
SOA-Enabled Process Automation graphed
Service  Process driven choreography of services Services
Orchestration  Process automation with associated business logic
encapsulated within the business process
 Improved flexibility and manageability with your SOA

Simplify Integration Basic
Standards- Services
 Easier integration and connectivity
based  Standardized components and Web services
Integration  Based on well accepted technical standards

Business Services Platform


IBM Smart SOA
Taking an Architectural view of the Business, Applications, and Technology
Infrastructure…to help bridge the gaps between strategy and
implementation.


IBM Smart SOA

Multiple valid starting points for SOA enabled change
…some example patterns

IT
Transformation Start Business
Business Model Transformation
Start

Information People
as Service Productivity
SOA
Processes Business Process Start Start Start
Roadmap &
Management Governance
Start

IT Applications Start Start
Application Application
Connectivity Reuse

IT Infrastructure Start
Infrastructure
Modernization

11 IBM Internal Use | Oct 6, 2009 © Copyright IBM Corporation 2009

IBM Smart SOA

Service Oriented Analysis, Modeling, and Design

 Top Down Approach – Business Requirements can
be rendered as a Business Process Model
– Articulate and model the business intent as a process
– Process model becomes an input for service design

 Bottom Up Approach – Existing IT assets are
discovered and evaluated as possible services
– Identify existing components as candidate services
– Assets can be transformed into service interfaces and
implementations

 Meet-In-The-Middle Approach – Identification
of business goals and sub-goals
– Goals and sub-goals correlate to candidate services

 UML Profile for Software Services and RUP SOMA
enforces discipline in designing software
services


IBM Smart SOA

A Methodology for Aligning Business Architecture and IT Architecture
• Break down your business into components
• Decide what is strategically important, and what is just operations
in the value chain domains
Business • Analyze the different KPIs attached to these components
Architecture • Prioritize and scope your transformation projects
CBM
• Assess your current SOA adoption maturity level
• Identify the pain points for the scoped projects
• Define the As-Is environment for the scoped projects
Assess & Plan • Define the To-Be environment for the scoped projects
SIMM • Identify the Gaps and build the SOA Roadmap
• Define a Service Model
• Identify your services based on your business components
• Specify the services and components accordingly
Service • Make SOA realization decisions based on architectural
Modeling decisions
SOMA • Implement a Service Model
• Develop a service-oriented architecture to support the
Componentized Business
SOA • Implement service based scoping policy for projects
Realization • Implement appropriate governance mechanism

Business-Aligned IT Architecture


IBM Smart SOA

Smarter Business Outcomes Through a Smart Approach to SOA

 Drive agility into the organization
Select and track a key agility indicator today!

 Tame chaos with process
Utilize BPM Enabled by SOA

 Reach today’s changing customer
Experience SOA extended by Web 2.0

 Build a smart SOA foundation
Take Advantage of SOA – Entry Points
Reuse and Connectivity


IBM Smart SOA

3 Ways BPM Projects Deliver Value

With Customer Examples


IBM Smart SOA

Three Ways BPM Projects Deliver Value

Smart Automation

Smart Insight

Smart Policy & Rules


IBM Smart SOA

Automate Manual Processes to Optimize Costs

 Reduce staffing Manual
Information
Tasks
requirements

 Reduce handling costs
Automated Process
 Support rapid change and
reduce cycle times 3x

 Maximize investments
IT Systems
through reuse

Source: An IBM Customer’s Supply Chain Process


IBM Smart SOA

Retailer Yansha Department Stores Streamlines Processes and Embraces
Supplier Collaboration

Challenge
 Faced with the prospect of having to
compete with highly efficient foreign
competitors, Yansha had to streamline and
automate its business processes
 Yansha needed to find a way to get all 1,800
of its national and international suppliers to
buy into a new, more efficient way of doing Business Benefits
business
 Reduced order lead time from
Solution 2.5 days to 4.5 hours
 Automates supply chain management
processes among people, across multiple
 Improved order
applications and between Yansha and its acknowledgement rate from 80
suppliers. to 99%
 Using a graphical process view Yansha
provided suppliers transparency into  Reduced order error rate from
customer buying behavior, sales trend and nine to one percent
process information enabling them to adjust
and optimize their operations to satisfy  Achieved ROI in nine months
market demand.

© Copyright IBM Corporation 2009

IBM Smart SOA

Smart Supply Chain with Automation

automates logistics to improve operations and
reduce costs
Industry Pains
 Inefficient, manual inventory
and transport processes
 Lack of visibility into supply
chain assets

Real Results
 75% reduction in handling time
 Reduced aircraft production and operating/maintenance costs


IBM Smart SOA

Capture Actionable Insights from Business Events

Business Event Processing
 Leverage insights for
smarter decisions

 Quickly react to threats
and opportunities

 Reduce costly
exceptions

18% of Insurance Payments go to Fraudulent Claims
Sources: North American government tax return process, Insurance Research Council, 2008


IBM Smart SOA

Smart Oil Production Driven by Actionable Insights

rewrites the rules on production efficiency

Industry Pains
 Declining production levels
 High maintenance costs
 Lack of integration risked $10
billion in potential revenue

Real Results
 30% reduction in maintenance cost
 5% higher production efficiency
 Greener energy production with smart sensors


IBM Smart SOA

Use Policies and Rules
…to Make Process Changes without IT Rework

 Reduce the time and cost of change
 Increase revenue and lower costs

Analytics Rules Policies
Sales goals Modify product Change in-flight
are at risk offerings sales promotions
Direct Deploy
“Close the gap” Now
between changes
and the time and
cost it takes to
implement them

Source: North American insurance claims process


IBM Smart SOA

Smart Customer Service using Business Policies

delivers flexible service platform to support
growth plans
Industry Pains
 High support costs inhibit
profitable growth

 90% of support handled
through call center

Real Results
 Reduce customer on-boarding costs with dynamic “self-service”
support channels
 Support 100% growth plan without adding CRM agents


IBM Smart SOA

Building a Smarter Planet…

SMARTER IS … SMARTER IS …
Reducing a city’s traffic Knowing where your in-
congestion and emissions process components are on
through road usage tolls the factory floor
SMARTER IS … SMARTER IS …
Getting real-time line of sight Knowing real-time about
across the transportation inventory changes in your
supply chain supply chain

Stockholm, Sweden: BMW:

An intelligent toll system in the city center resulted in Implemented RFID container tracking system
20% less traffic, 40% lower emissions and 40,000
improving utilization by 10-20%.
additional users of the public transportation system.


IBM Smart SOA

5 Keys To Thriving in Today’s Economy with SOA-enabled BPM

1. Agility Metrics
2. Smart Automation
3. Smart Insight
4. Smart Policy & Rules
5. Smart Skills


SOA Best Practices for Smarter Business Outcomes

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