aligning it with business goals through soa
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© 2006 IBM Corporation
IBM SOA Architect Summit
Keynote Presentation:
Aligning IT with Business Goals Through SOA
Garry GomersallSOA Business Executive, North-Europe IOT
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Innovation that matters to CEOs and CIOs
87% of CEOs believe
fundamental change is
required in next two-years
to drive innovation Source: 2006 IBM Global CEO Survey
Top Innovation priorities for CEOs:
� Extend the ability to collaborate inside & outside
� Innovate business models & processes
� Leverage information for business insight
Ability to manage increasing regulation costs
Ability to allocate capital
Ability to manage a global organization
Ability to allocate the best talent
Ability to innovate
0 30 60
Source: March 2005 McKinsey Quarterly survey of 9,345 global executives
CIOs and CTOsRecognize Innovationas the Most Important Capability for Growth
Yet: Only 1 in 10 CEOs believe their organization has the ability to be very
responsive to changing market conditions
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Traditional
Structured
Calculations
Data Processing
Transactions
The Internet
Open Standards
Connectivity
Flexibility
Simplicity
Scalability
On Demand
Rich, Modular Components
Composition/Orchestration
Dynamic Applications
Flexible Business Solutions
Deepening Integration of IT with BusinessOn Demand Computing Model
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Division “A” Division “B” Division “C” Division “D” Division “E”
The Vertical Silo Problem
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Where Are We Heading – Service Oriented Architecture
Outsourced
Supplier
Shared Services
Division(s)
Customer
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Monolithic Business Applications – built historically
� Must periodically synchronize on inventory information
� Pricing information into each inserted differently based on application structure
� No common customer database, inventory or flexibility in business processes
Sales Orders& Supply Chain
Older Architectures Do Not Support Flexibility Required by Current Business Environments
Pricing
WebOrders
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Services defined as units of business logic, but…
� Flow of control – bound into service logic
� Transformation of data formats bound into service logic
� Tight coupling between services makes them fragile
Inventory
SalesOrders
Shipments
CustomersPricing
Web Orders
Component-based Architecture is Not Enough
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Services defined as units of business logic separated from…
� Flow of control and routing
� Data transformation and protocol transformation
Inventory
SalesOrders
Shipments
CustomersPricing
Web Orders
Service Oriented ArchitectureMoves IT Logic Out of Services
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IBM SOA Foundation
Flexible business requires flexible IT
Bank
Shared Service
Customer
Bank 2 – “Supplier”
Outsourced
Case Study: Payments Processing
Full Business view
Process to optimize
Creating IT flexibility
Skills &Support
Software
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Profit Outperformers Focus on Business Model Innovation More Frequently than Underperformers
Business Model Innovation is defined as…
Innovation Type Selections for Out and Under Performers(Operating Margin CAGR)
Products / Markets /
Services
0%
20%
40%
60%
80%
100%
Under-Performers Out-Performers
% respondents selecting
each innovation path
Operations
Business Model
Innovation in the structure and/or financial model of the business
Source: IBM Global CEO Study 2006 (765 CEOs, Business Executives and Public Sector Leaders)
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“In the past, IT would say to business, ‘Here’s what
the software can do; now, design your business
process to match those capabilities -- or wait
two years until we can build you something
from scratch.’ Now, business can say, ‘Here’s
what we need,’ and the technology can respond.”
InfoWorld, “SOA: Watch Your Steps”
November 7, 2005
How Does SOA Change the Game?
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“SOA is the next-wave architecture to drive the evolution of IT.”Alex Cullen
Principal Analyst for IT Management, Forrester Research
� Standards have been widely adopted
� Software is mature and available
� Governance is well-defined
� Best practices are in place
Why SOA Now?
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IT Sophistication
People
Processes
Information
Collaboration
Role Based Workplaces
Process
Integration
Business
Integration
Data
Warehousing
Information
IntegrationPortal
Application
Integration
Data
Replication
Personal
Productivity
Team Productivity
Organizational
Productivity
Achieving Organizational Productivity
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Service-oriented
To:
Function-oriented
From:
Business Needs Are Driving a Shift in IT
Implementation abstraction
Structure applications using services
Orchestrated solutions that work together
Incremental development cycles
Build to change
Known implementation
Structuring applications using components and objects
Tightly coupled
Application silos
One long development cycle
Build for permanence
Loosely coupled
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IBM SOA Maturity Model
Silo
Level 1
Services
Level 4
Composite
Services
Level 5
Virtualized
Services
Level 6 Level 7
Dynamically
Re-Configurable
ServicesComponentized
Level 3
Integrated
Level 2
Modules ServicesProcess
Integration via Services
Dynamic Application Assembly
ComponentsObjectsApplications
Structured Analysis & Design
Service OrientedModeling
Service OrientedModeling
GrammarOrientedModeling
Component Based
Development
Object OrientedModeling
Methods
Ad hoc IT Governance
Emerging SOA Governance
SOA and IT Governance Alignment
SOA and IT Governance Alignment
Ad hoc IT Governance
Ad hoc IT Governance
OrganizationSOA and IT Governance Alignment
Service Oriented Modeling
Process Integration via
Services
Platform Specific
PlatformSpecific
Platform Neutral
DynamicSense & Respond
PlatformSpecific
PlatformSpecific
Infrastructure
Monolithic Architecture
Emerging SOA
Grid Enabled SOA
Dynamically Re-Configurable Architecture
ComponentArchitecture
Layered ArchitectureArchitecture SOA
PlatformSpecific
Function Oriented
ServiceOriented
ServiceOriented
ServiceOriented
Function Oriented
Function Oriented
Business View
ServiceOriented
Take stock of where you are and where you want to go
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IBM SOA Maturity Model
Level 1 Level 4 Level 5 Level 6 Level 7Level 3Level 2
Applications
Methods
Organization
Infrastructure
Architecture
Business View
Take stock of where you are and where you want to go
Silo Services
Composite
Services
Virtualized
ServicesComponentizedIntegrated
Business
Domain
IT
Environment
Ad-Hoc Systematic DynamicComposite
You Are
Here How Do
I Get Here?
SOA Project
SOA Project
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IBM SOA Assessment Tool
� Receive actionable recommendations
� Customized to your level of SOA maturity
� On-line or on-site
� Visit ibm.com/soa or contact [email protected]
How Do
I Get Here?
You Are Here
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Open Technology Model
LINUX XMLSDO
J2EEUML
ECLIPSE
TCP/IP
HTMLXHTML
WEBSERVICESSCA
Open Networks
Open Interchange
Open OperatingSystem
Open Publishing
OpenInformation
Open Programming
Platform Independent
Adaptability is vital
Linux Windows AIX Solaris HP-UX i5/OS z/OS
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IBM is the #1 commercial supporter
Open Operating System Choice Includes Linux
IBM contributed technology to J2EE & helped form the Apache Software Foundation
Open Application Server J2EE and Apache
IBM led or co-led the creation of SOAP, WSDL, UDDI, WS-Security, BPEL4WS …
Open Application Integration Web Services
IBM donated $40M of initial technology
Open Development Integration Platform Eclipse
SOA is Based on an Open Platform and Open StandardsIBM invests heavily in providing continuing leadership in standards development e.g.
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Defining the capabilities for your SOA environment Template for designing at a service-level
Interaction Services Information Services
Partner Services Business App Services Access Services
Development
Services
Management
Services
Infrastructure Services
Enables collaboration
between people, processes &
information
Manages diverse data and
content in a unified
manner
Connect with trading
partners
Build on a robust,
scaleable, and secure
services environment
Facilitate interactions with
existing information and
application assets
Integrated
environment
for design and
creation of
solution assets
Manage and
secure
services,
applications &
resources
Optimizes throughput, availability and utilization
Apps &
Info Assets
Process Services
Business ServicesSupports enterprise business process and
goals through businesses functional service
Enterprise Service Bus
Orchestrate and automate
business processes
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IBM SOA Business Catalog
Catalog Objectives:
� Drive business centric assets
based on industry services
� Promotes the value proposition
of SOA – REUSE!
� Promotes, facilitates, and
enables the ecosystem
The IBM SOA Business Catalog is a comprehensive, online resource for reusable SOA content that leverages IBM’s SOA Foundation products.
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Types of services and assets
� Web Services
� Models – Process, Integration, Data
� Sample code
� Plug-ins
� Patterns
� Adapters
� Connectors
� Software Packs
� QuickStarts Professional Services
� GetStarted Professional Services
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Lessons LearnedBased on Customers’ Experiences
� SOA is a team sport – Business Team and IT Team work
hand-in-hand
� SOA Foundation is critical– Establish an enterprise architecture &
infrastructure, based upon SOA principles
� Project entry points are important– Avoid the “Big Bang” approach
� Governance is a must for success
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Thank You
MerciGrazie
Gracias
Obrigado
Danke
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