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© 2007 IBM Corporation Presenter’s Name | Business Area Date | Driving Innovation with SOA Dave James – Lead CI Architect Ref: Dr Akram – Bou-Ghannam

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© 2007 IBM Corporation

Presenter’s Name | Business Area

Date |

Driving Innovation with SOA

Dave James – Lead CI ArchitectRef: Dr Akram – Bou-Ghannam

Innovation That Matters

© 2007 IBM Corporation

SOA Introduction• There has been a lot of buzz and hype -- some factual, some

not so well-founded -- surrounding the opportunities presented by Service-oriented Architectures (SOA) and its implementation as Web services. Analysts have predicted, pundits have professed, professors have lectured, companies have scurried to sell what they had, as SOA products -- often missing the point that SOA is not a product. It’s about bridging the gap between business and IT through a set of business-aligned IT services using a set of design principles, patterns, and techniques.

• ZDNet recently said, "Gartner predicts that by 2008, more than 60 percent of enterprises will use SOA as a "guiding principle" when creating mission-critical applications and processes."

IBM SOA

© IBM Corporation 2006

The basics: What is SOA?

… a service?

A repeatable business task – e.g., check customer credit;

open new account

… service oriented architecture (SOA)?

An IT architectural style that supports

integrating your business as linked

services

"SOA impacts every aspect of IT and business.”

IBM SOA

© IBM Corporation 2006

Gather requirements Model & Simulate Design

Integrate people Integrate processes Integrate information

Manage IT resources Manage services Monitor business metrics

Discover Construct & Test Compose

Sharing and reuse of services Establish decision rights Policies, measurement and

control for SOA oversight

Business Centric SOA Starts with Your Most Critical Business Pain and Enables You to Build for Flexibility

Deliver trusted information in business context to enable innovation

Enable human and process interaction with consistent levels of service

Achieve greater efficiency and effectiveness with business model innovation

“Pick business processes with pain points that the business clearly recognizes — processes for which the business most clearly needs end-to-end visibility, control, insight, and flexibility”

IBM SOA

© IBM Corporation 2006

33

11

22

SOA Entry Points Help Customers Get StartedBoth Business Centric and IT Focused

5544

IBM SOA

© IBM Corporation 2006

ValueImprove people productivity by aggregating views that deliver information and interaction in the context of a business process

Start withBuild a view of a key business process by integrating information in front of people to improve decision making

Next stepsManage performance more tightly with alert-driven dashboards tied to processes

People Centric Approach - Greater Value through SOAIntuitive & Adaptive User Experience

Why SOA?Composite applications created, deployed, and updated faster with SOA portlets

11

“Through 2007, an enterprise portal will be the first major application of SOA concepts for more than 50 percent of enterprises (0.6 probability).”

Gene Phifer, Gartner Research; Management Update: A Portal May Be Your First Step to Leverage SOA -Publication Date: 10/12/05

IBM SOA

© IBM Corporation 2006

Web order?

Check order

Shipment status

On time?

Order is delayed

Publish order to back-end

Approve order as is?

Get EDI orders from ERP

Web order?Web

order?Check order

Shipment status

On time?On

time?Order is delayed

Publish order to back-end

Approve order as is?

Approve order as is?

Get EDI orders from ERP

Get EDI orders from ERP

ValueInnovative business models deployed quickly with flexible and optimized processes. Measure performance to drive improvement.

Start withA single process – Model an underperforming process. Optimize and deploy as enhanced process.

Next stepsFlexibly link multiple processes across the enterprise & to suppliers / partners. Monitor the process to measure & track performance.

Process Centric Approach - Greater Value through SOABusiness Process Management for Continuous Innovation

Modeled processes, converted into services, are re-used, connected and re-deployed more flexibly and quickly with SOA

Why SOA?

22

“SOA, done right, enables the creation of a common language shared by IT and the broader business stakeholder community..”

- Neil Ward-Dutton

IBM SOA

© IBM Corporation 2006

ValueImprove business operations and reduce risk with trusted information services delivered in-line and in-context

Start withDiscover and understand information sources, relationships & business context– Choose reusable high value data for first services

Next stepsExpand number and scope of services across internal and external processes

Information Centric Approach – Greater Value through SOADelivering Information as a Service to People and Processes

Information as a Service

Data Content

Processes PeopleApplications

Why SOA?Trusted information packaged as services are embedded inline within processes or delivered to people

33

IBM SOA

© IBM Corporation 2006

*Software Strategies“Enterprise Integration Challenge” 2005

Connectivity - Greater Value through SOAUnderlying Connectivity to Support Business Centric SOA

Value Deliver services through new business channels

for a secure, consistent user experience Service-based connections with trading partners Potential savings of 2X-4X over custom-built

integration or FTP*

Start with Messaging backbone leveraging messaging and

web services protocols as the foundation for SOA connectivity

Enable mediated exchange between services, by leveraging an ESB

SOA appliances for ESB functions in a hardware form factor

44

IBM SOA

© IBM Corporation 200610 © IBM Corporation 2006

* Software Productivity Research (SPR)

“ With reuse, solving the next business problem can be done more quickly and efficiently.”

- Amy Wohl

Creating & Reusing Services - Greater Value through SOACreate Flexible, Service-based Business Applications

ValueFlexibility and elimination of duplication for reduced cycle times

Expanded access to core applications Consultant studies have found it 5X less expensive to re-use existing applications than to write new applications*

Start withWhat services are needed to run your business?Identify high-value existing IT assets and service-enable them for reuse

Fill in gaps by creating new services for today's business needs and future reuse

Registry/repository to facilitate centralized access and control of reusable services

55

IBM SOA

© IBM Corporation 2006

Align Business and IT with SOA Governance

What is SOA governance?Decision making rights, and measurements and controls across the lifecycle of services

Mitigate business risk and maintain control of SOA projects

Improve team effectiveness

Value of SOA Governance

"IBM's approach aligns with Gartner’s view of SOA governance, and we believe it is likely to be more effective than narrower approaches.”

Gartner, "IBM Takes Another Step Toward Its SOA Governance Vision", Michele Cantara et al, March 28, 2006.

IBM SOA

© IBM Corporation 2006

SOA Reference ArchitectureProviding the technical underpinnings for Business Centric SOA

Ap

ps

&

Info

As

sets

Business Innovation & Optimization Services

Dev

elo

pm

ent

Ser

vice

s

Interaction Services Process Services Information Services

Partner Services Business App Services Access Services

Integrated environment for design

and creation of solution

assets

Monitor, manage

and secure services,

applications &

resources

Facilitates better decision-making with real-time business information

Enables collaboration between people,

process & information

Orchestrate and automate business

processes

Connect with trading partners

Build on a robust, scaleable, and secure services environment

Facilitates interactions with existing information and application assets

ESBFacilitates communication between services

IT S

ervi

ceM

anag

emen

t

Infrastructure Services

Optimizes throughput, availability and performance

Manages diverse data and content in a

unified manner

© 2003 IBM CorporationBusiness Driven Development with SOA

Why SOA now?

To keep pace with global competition:

– “We are taking apart each task and sending it … to whomever can do it best, … and then we are reassembling all the pieces” from Thomas Friedman’s ‘The World is Flat’

The standards and technology are finally in place, with broad industry support

Availability of best practices for effective governance

The necessary software to get started is available today

© 2003 IBM CorporationBusiness Driven Development with SOA

What Differentiates SOA from Claims Like This in the Past?

Broadly adopted Web services ensure well-defined interfaces.

Before, proprietary standards limited interoperability

Standards

Business and IT are united behind SOA (63% of projects today are driven by LOB)*

Before, communication channels & ‘vocabulary’ not in place

Organizational Commitment

SOA services focus on business-level activities & interactions

Before, focus was on narrow, technical sub-tasks

Degree of Focus

SOA services are linked dynamically and flexibly

Before, service interactions were hard-coded and dependent on the application

Connections

SOA services can be extensively re-used to leverage existing IT assets

Before, any reuse was within silo’ed applications

Level of Reuse

*Source: Cutter Benchmark Survey

© 2003 IBM CorporationBusiness Driven Development with SOA

SOA Challenges

Governance – Good SOA demands good governance

Complexity – Composing applications of independent and

loosely services increases complexity

Reuse – What do we have and what does it do?

Process – SOA is a new way of thinking and requires

process and process guidance

Team communication – Successful SOA brings LOB and IT closer,

requiring seamless communication

© 2003 IBM CorporationBusiness Driven Development with SOA

Business Benefits of SOA

Business Driven

Development for SOA

Flexibility and scalability Decreased time to market

Applications designed for change

Productivity gains

Reduced cost

Improved quality

© 2003 IBM CorporationBusiness Driven Development with SOA

Key Concepts and Definitions – What is a Service?

Service– From a business adaptability point of view

• A service provides a process neutral capability that can be used in one of several business processes concurrently or over time.

– A service is a software component that is described by meta-data, which can be understood by a program. The meta-data is published to enable reuse of the service by components that may be remote from it and that need no knowledge of the service implementation beyond its published meta-data

– The narrow technical definition• A service has a well-defined interface (with a set of messages that the service

receives and sends, and a set of named operations or verbs), an implementation of the interface, and if deployed, a binding to a documented network address.

Web Service– Service that, at a minimum, defines its interface by using the Web Services

Description Language (WSDL) and is accessible by using a protocol that is compliant with Web Services Interoperability (WS-I)

© 2003 IBM CorporationBusiness Driven Development with SOA

Key Concepts and Definitions – Business & Information Services

Business Service– Service that typically implements a business process or an activity within a

process.

– Belongs to the Business Service Layer (BSL): • A collection of related services for a given business domain (ex. Order fulfillment,

human resources, etc.) that all follow a certain set of conventions and standards relevant to that domain. Services on the BSL could share common:– Business vocabulary and semantics – Elements of Specification – Policies. Ex. Security, SLA

Information Service or Information as a Service– An information service is a service that acts as an abstraction layer between

information consumers and providers for the creation, management, federation, aggregation and access of information.

© 2003 IBM CorporationBusiness Driven Development with SOA

Key Concepts and Definitions – Enterprise Service Bus

Enterprise Service Bus (ESB)

– A flexible connectivity infrastructure (WebSphere) for integrating applications, services, and information.

• Virtualizes the services that are made available through the bus by managing– Meta-data that describes service requestors and providers

– Mediations and their operations on the information that flows between requestors and providers

> Mediations are the means by which ESB can ensure that a service requestor can connect successfully to a service provider

– Registry: Meta-data is managed through a registry that supports

> Configuration, Connection, Matchmaking, and Discovery of service end-points

© 2003 IBM CorporationBusiness Driven Development with SOA

Key Concepts and Definitions – SOA+ and ECBA

SOA+

– Service Oriented Architecture Plus (SOA+) is transforming IBM's internal information technology into a Service Oriented Architecture. The plus (+) signifies how it is also enabling the fusion of business and information technology with methods and tools to integrate IBM's people, process, information, and applications into an on demand business. SOA+ is responsible for driving the overall SOA strategy, direction, and coordination for all IBM internal activity.

– SOA+ is the next generation of the Enterprise Component Business Architecture (ECBA).

ECBA

– ECBA has been a business architecture designed to promote IBM on demand enterprise capabilities to quickly deliver business value through increased productivity and automation. It enables business and information technology functions to work synergistically, creating more fully integrated relationships among processes, applications and data.

– ECBA was originally focused on “componentization with services interfaces” of the enterprise application portfolio. It drove componentization activities with business / application domains and promoted the standardization of interfaces as “services” for services and information integration.

– ECBA's Distributed Components are essentially software applications that are accessed through the network via services interfaces, and can be independently developed, tested, deployed, and maintained. Larger systems can be created though the combination of multiple components, and larger components can be represented by several sub-components (e.g., Component-Service Domains).

© 2003 IBM CorporationBusiness Driven Development with SOA

Key Concepts and Definitions – SOMA and SIMM

Service Oriented Modeling and Architecture (SOMA)– SOMA is a methodology designed to build a complete list of potential services

from a business process and specify those to a level sufficient as input to business requirements and detailed design. SOMA is an analysis technique oriented toward bringing business process insights to a place where the technical roles may start to incorporate the services and components into their designs.

Services Integration Maturity Model (SIMM)

– SIMM is used to conduct assessments and determine level of maturity for an enterprise or line of business and design a plan of action. SIMM helps in:

• Determining current maturity level of integration

• Determining which characteristics are desirable to achieve

• Defining how to achieve them by attaining a new level of maturity.

• Determining whether problems encountered at a given level of maturity can be solved by evolving to a higher level of integration.

© 2005 IBM Corporation

Information as a Service

© 2003 IBM Corporation

Business Problems

Trusted information is not available when & where needed

Inflexibilities make the business slow to respond to changing requirements

Cost of managing IT is too expensive

The full value of information is not being leveraged

© 2003 IBM Corporation

Technical Problems

Information architecture is too complex

Each new process builds expensive custom connections to information

No way to centrally govern information

Can’t reconfigure business processes as needed

© 2003 IBM Corporation

and more…

abc…DB2

IBM ContentManager Oraclexyz…

Heterogeneous Applications & Information

Insight

Information as a ServiceOptimize, Virtualize, Integrate, Accelerate

Data & Content

BusinessContext

InsightfulRelationships

Master Data, Entity Analytics, Decision Portals, Executive Dashboards,Industry Data Models

Extracted or Real-time

Standards-based

e.g., XQuery, JSR170, JDBC, Web Services...

Information as a ServiceMoving From a Project-Based to a Flexible Architecture (SOA)

Processes PeopleTools & Applications

© 2003 IBM Corporation

Information is a Vital Component of SOA Strategy

Information within SOA efforts is often considered only within the context of specific processes

The most anticipated benefit of business investment in IT is information availability

"You will waste your investment in SOA unless you have enterprise information that SOA can exploit."

Gartner, March 2005

Source: Gartner, Service-Oriented Business Applications Require EIM Strategy, Andrew White, Charles Abrams, 30 March 2005, ID Number G00124926

© 2003 IBM Corporation

Tight Coupling of Data to Workflow Locks You In

Inconsistency in the “view” of the data

Inconsistency in sources and how data is derived

Inconsistency in rules applied to data

Multiple points of maintenance

No flexibility to change information sources and formats

CreateQuote

Process Flow

Trigger

CreateEstimate

Process Flow

Trigger

AccessTransformCleanse

AccessTransformCleanse

DataWarehouse

PackagedApplication

LegacyApplication

© 2003 IBM Corporation

Information as a Service Improves Flexibility

Consistent packaging of data

Leverages understanding of metadata relationships

Applies consistent rules to data

Centralized control and maintenance

Flexibility to change information sources and formats

CreateQuote

Process Flow

Trigger

CreateEstimate

Process Flow

Trigger

DataWarehouse

PackagedApplication

LegacyApplication

© 2003 IBM Corporation

Information Services

How Does Information Fit into an SOA?

Generateinvoice

Requestship date

Updateinventory

ProcessCredit

Savequote

Getcustomer

Getprice Select data from source 1

Select data from source 2 Match and link records Transform data to target

Calculatediscount

Calculatequote

Information as a service makesinformation more accessible,consistent, and flexible

Publishing consistent, reusableservices for information that makeit easier for processes to get theinformation they need from acrossa heterogeneous landscape.

© 2003 IBM Corporation

The Information On Demand Maturity ModelAdvanced Stages Rely on Information in SOA

BusinessValue

Information as a Competitive Differentiator

Information to Enable Innovation

Information as a Strategic Asset

Information to Manage the

Business

Data to Run the Business

“Focus on DataAnd Reporting”

“Basic Information Interaction”

“Information In Business Context”

“Information-Enabled Business Innovation”

“Adaptive BusinessPerformance”

Maturity ofInformation Use

© 2003 IBM Corporation

Providing Information as a ServiceKey Technology Objectives

Flexible Architecture– Service orientation provides base for

responsive, flexible business and improved asset utilization

– SOA: Web Services, JMS…Component Applications

Open Standards– Use, Contribute, Lead– SQL, XQuery, JSR170, XML, Web

Services, JMS, JDBC, UIMA…

Shared Services & Metadata– Simplify Infrastructure– Provide Consistency & Control– Speed Development and Deployment– RDA, “xMeta”, Hawk, Info. Server…

Comprehensive Capabilities– Add Value to Information– Ease Integration– Enhance Manageability– Reduce Cost– IBM Information Mgmt. Portfolio...

© 2003 IBM Corporation

Examples of Categories Information Services

Electronic integration with partners

Access toanalytical data for

closed-loop processes

Unified access to data in files, databases,

and applications

Cleanse & matchinbound records to

existing data SWIFT, EDI, HIPAA

Transform and align data from

different sources

Access tounstructured informationalongside structured data

DataCleansingServices

DataTransformation

Services

Partner DataIntegrationServices

OperationalData Services

AnalyticalData Services

UnstructuredData Services

Access to andintegration ofmaster data

MasterData Services

Validate recordsagainst defined business

rules

DataValidationServices

© 2003 IBM Corporation

IBM Services Oriented Reference ArchitectureInformation is Key to SOA

* Source: Gartner Research Service-Oriented Business Applications Require EIM Strategy, Andrew White, Charles Abrams 30 March 2005, ID Number G00124926

“You will waste your investment in SOA unless you have enterprise information that SOA can exploit."

Gartner Research, 2005*

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 34

ObjectivesObjectives

• Gain an understanding of the importance of focusing on information as part of SOA

• Gain an understanding of the IBM products which help leverage the value in customer’s information

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 35

Innovation that Matters to CEOsInnovation that Matters to CEOs

Innovation is all about change… Innovation is all about change… SOA and IOD make it easier to change. SOA and IOD make it easier to change.

• Extend the ability to collaborate inside and outside

• Innovate business models and processes

• Leverage “Information on Demand” for business optimization

Top Innovation Priorities:

87% of CEOs believe fundamental change is required in next two-yearsto drive innovation

Source: 2006 IBM Global CEO Survey

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 36

SOA Enables Dynamic InterchangesSOA Enables Dynamic Interchanges Between People, Process, and InformationBetween People, Process, and Information

CustomersPartners

Employees

Context for Better DecisionsDelivering the right information in context to optimize business processes, applications, and productivity Targeted for results

Use targeted tasks and functions as basis for information and people interactions

Interaction and IdeasEnabling people to virtually interact and collaborate for dynamic decision making

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 37

Sources: IBM Attributes & Capabilities Study, 2005; Client Interviews 2004; IBM CFO Study, 2006

5X More Value creation by organizations effective at using information

60%+ of CEOs say they need to do a better job leveraging information

Information architecture is evolvingInformation architecture is evolving

Dynamically Deliver Master Information

People, Processes, Applications

Repositories, Applications

Integrated Information PlatformIntegrated Information PlatformRich Standards,Flexible

Architecture

70% of people’s time can be spent finding relevant information

Disconnected Silos of Information

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 38

Strategic Initiatives Require Integrated Strategic Initiatives Require Integrated InformationInformation

IT Project Customer ValueStrategic Initiative

CustomerExample

1. Business Intelligence

Demand-Driven Supply

3. InfrastructureRationalization

Mergers and acquisitions consolidation

4. Risk andCompliance

Basel II compliance

5. Business Flexibility

Risk Analysis SOA Services

2. Master DataIntegration

Customer Centricity

Saved $1M per yearin support costs

80% productivity gain on maintenance activities

Reduced duplicate marketing data error rate to under 1%

Reduced inventory by 30% Raised order fill rate to 98%

Enables per-trade risk analysis

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 39

Information Oriented Client Business IssuesInformation Oriented Client Business Issues

• Multiple Versions of the Truth Inability to understand and tailor customer interactions Inability to collaborate effectively with supply chain Difficulty in complying with information-centric regulations

• Need to do a Better Job Leveraging Information Not using demand signals to drive supply chain Not using customer analysis to tailor marketing and sales Not leveraging sources of unstructured information

• Don’t have Trust in Their Information Asking the same question in different places produces different

results

• Don’t Feel like They Have Control Over Information No way to understand or control how information is used No governance of sensitive information on customers or accounts

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 40

The challenge of monolithic solutionsThe challenge of monolithic solutionsTight Coupling of People, Process and information Locks You InTight Coupling of People, Process and information Locks You In

• Inconsistency in the “view” of the

data in sources and how

data is derived in the rules applied to

data

• Multiple points of maintenance

• Little flexibility to change information sources and formats

InvestmentSub-Process

Sales

Agents

Customer

DB2 for z/OS

SQLServer

Oracle

DB2 for z/OS

DB2 LUW

Open a Bank Account

Enter aMortgage

Application

Purchase a Mutual Fund

MortgageSub-Process

InsuranceSub-Process

BankSub-Process

CustomerSub-Process

Investment

Mortgage

Insurance

Bank

CustomerBankOrder

Investment Order

Mortgage Order

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 41

Approaching the Challenges of ComplexityApproaching the Challenges of ComplexityWhere Do “Core Processes” Go to Get Information?Where Do “Core Processes” Go to Get Information?

Core Processes

Focus Priority ProcessesEnable Flexibility

Reuse…

ProcessServer

Core Information Entities

InformationServer

Orthogonal,Complementary

Trusted, Reusable

Business Glossary, Meta Data Driven

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 42

You will waste your investment in SOA unless you have enterprise information that SOA can exploit.

Gartner, March 2005

An enterprise-wide information management strategy increases the chance of success for service oriented

architecture efforts by at least 70%...Gartner, February 2006

42

Information is key to a Service Oriented Information is key to a Service Oriented Architecture Architecture

Build services to integrate content into processes

EnterpriseContent

Serve XML & relational data

Analytical and Data Services

Deliver trusted information as a

service

Data Complexity,& Accessibility

Build master dataservices for productand customer info

Multiple Versionsof the Truth

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 43

Simplify Integration Increase trust and confidence in information

Increase compliance to standards

Facilitate change management & reuseDesign Operational

Enhanced Collaboration & ProductivityEnhanced Collaboration & ProductivityRole-Optimized Tools with Integrated MetadataRole-Optimized Tools with Integrated Metadata

DevelopersSubject Matter Experts

DataAnalysts

Business Users

Architects DBAs

Unified Metadata Management

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 44

Linear Scalability To Support Growth Linear Scalability To Support Growth Parallel Processing & Rich ConnectivityParallel Processing & Rich Connectivity

Unified Metadata Management

Unified Parallel Processing

High Performance Connectivity - Structured, Unstructured, Applications, Mainframe

•Design sequentially, deploy in parallel •Codeless parallelization•Proven linear scalability

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 45

How Does Metadata Make Information Services How Does Metadata Make Information Services Different?Different?

OtherData Sources

ContentRepositories

?

WSDLWSDL

• Provides visibility into lineage, relationships to other systems, and business definition Where does the information come from? What happens to it along the way? How does this fit into how the business defines things? How do I know I’m using the right service?

Traditional Service Information Service

Customer CustomerOrders

Order History ServiceCustomer Order History

CustomerOrders

Order History Service

Metadata

2007 WebSphere Services Technical Conference© 2007 IBM Corporation 46

QuestionsQuestions

•Thank you