cbm – soma - rup - jyväskylän yliopisto€¦ · design (ooad)/use case ... processing...

© 2010 IBM Corporation

CBM – SOMA - RUP Flexible Businesses - IT Services – Development Processes

Jouko Poutanen IT Architect, IBM Software Group

University of Jyväskylä, 11.03.2011

CBM – SOMA – RUP © 2010 IBM Corporation 2

Agenda

 Component Business Modeling (CBM) –  Designing Flexible Businesses

  Service Oriented Modeling and Architecture (SOMA) –  From business services to SOA services

  Rational Unified Process (RUP) & IBM Practices –  Rightsizing the process of SW development


Context

~ cost, differentiation, focus


Context

Operations strategy

source: Slack and Lewis (2008)


Component Business Modeling (CBM) - What for ?

  CBM framework provides the foundation for qualitative and quantitative analyses that can help enterprises to:

  Identify their key differentiating operations as well as those that contribute only minimally to their growth and profit

  Identify business-activity consolidation opportunities to create single instance components to support their business operations

  Prioritize high cost or high capital components as candidates for operational change

  Prioritize transformation initiatives

  Align technology infrastructure investments with business needs

  Define quantitative results for business and technological change initiatives


CBM Framework

Organize activities by accountability level and competency


What is a Business Component ?


Example CBM Map from Retail Sector


Heat Maps Identify “Hot” Areas to Exploit Business Value


Applying CBM to Strategy Implementation

Business Administration

Corporate/LOB Strategy & Planning

Organization & Process Policies

Alliance Strategies

Human CapitalManagement

Legal & RegulatoryBusiness

PerformanceIntellectual

Property

Building/Facilities & Equipment

IT Systems& Operations

Knowledge & Learning

Financial Management

Capital Appropriation

Planning

FinancialPlanning &Forecasting

Risk Management

& Internal Audit

Treasury

TaxManagement

Accounting & General Ledger

CostManagement

Product/Process

Portfolio Strategy &Planning

Research &Development

Design Rules& Policies

ProgramManagementConfigurationManagement

DesignValidation

ChangeManagement

MechanicalDesign

In-vehicleSystem Design

Process Design

Tool Design& Build

SupplyChain

Supply ChainStrategy & Planning

DemandPlanning

SupplierRelationship

Planning

Supply ChainPerformanceMonitoring

SupplierManagement

LogisticsManagement

InventoryManagement

TransportationManagement

Procurement

Marketing& Sales

CustomerRelationship

Strategy

Sales & PromotionPlanning

BrandManagement

RelationshipMonitoring

Demand Forecast

& Analysis

DealerManagement

CustomerRelationshipManagement

OrderManagement

LeaseManagement

Direct

Control

Execute

Production

ProductionStrategy

ProductionRules & Policies

Master ProductionPlanning

ProductionScheduling

QualityManagement

PlantOperations

MaintenanceManagement

ProductionMonitoring

Service &Aftersales

Post Vehicle Sale

Strategy

WarrantyManagement

QualityManagement

End-of-LifeVehicle

VehicleService

PartsManagement

Consolidate Achieve Superiority

Manage as Utility

Leverage Specialists

1

Target operating characteristics for each component

Strategic Competitive Parity Basic

Strategic Differentiation

2

4 3

ref. RBV - capabilitites, competitive advantage


‘Smart’ Cost Reduction by Structural Changes

  Typical initial cost reduction measures –  Hiring freeze –  New IT project budget freeze –  Termination of sub-contracting agreements –  Voluntary departure plans –  Early retirement

  Typical advanced cost reduction initiatives –  Relocation of resources/applications –  Central vs. decentralized IT governance –  Strategic alignment & prioritization –  Maintenance/process outsourcing –  Process optimization

Structural Change “Increase Productivity”

Cos

t

x

X’

Volume

Change operating model

Rationalization “Reduce Capacity”

Volume

Reduce FTE,

minimize overlap, improve control

X’ x

Cos

t


gaps

Execution

Control

Direct

Bus

ines

s A

dmin

istr

atio

n

Ass

et M

gmt &

Pr

oduc

t D

evel

opm

ent

Sale

s &

C

hann

el

Man

agem

ent

New

B

usin

ess

Cus

tom

er

Serv

ice

Con

trac

t

Fina

nce

Mar

ketin

g

Adm

inis

trat

ion

Operations Planning

Service Management

Contract & Policy Set-up

Channel Management

Campaign Management

Alliance Management

Product Management

Manufacturing Planning

Distribution Planning

Operational Control

Financial Control

Accounting &Finance Planning

Asset & Liability

Management

Funds Management

Trading

General Ledger

Treasury

Claims processing Contact Servicing

In-force Processing

Check Processing

Contract Administration

Correspondence

Intelligent Routing Contact Repository

Customer Profile

Fees & Commissions

End - customer marketing

Campaign Execution

Product Development

Sales Support

Product Profile

End - Consumer

Sales

Conservation

Human Resource

Business Planning

Management Manual

Regulatory Reporting Training Council Services

Systems & Facilities Helpdesk

Advisor/ Intermediary Administration Advisor/ Intermediary Set-up

Wholesales

over- extension

duplication

e.g. Sys A

Example - Overlay Analysis

Gaps

Overall operational capacity / stability for each system, including possible constraints on future functional enhancements or capacity upgrades (integrity and scalability of code-base and application technical design)

Excess capacity

Constrained capacity Fit for purpose

When considering coverage of systems, process and information for a component, three generic issues tend to arise

A system designed to support one component is extended to help support others, for which it may not have appropriate capabilities: Furthermore, as a system gets more diverse/extensive the cost/complexity of its operation increases exponentially

Duplication

Over-Extension

Multiple systems compete for the same component, typically adding unnecessary complexity/cost to development, maintenance and production

No system exists, the system lacks key functionality, or is poorly designed/uses the wrong technology for a specific component


CBM Lifecycle

Investment

Develop transformation

roadmap

Define and prioritize

opportunities

9 10

Insight

Develop Business

Component Model

Identify “hot” components

Assess Business Strategy

1

2

3

Architecture Determine strategic business

model / value network

Operationalize strategic business

model / value network

Assess current component capabilities

4 5

Define target component

requirements

6 7

Develop shortfall impact

8

1.1 Strategic and Business Objectives 1.2 Business Strategy Summary

2.1 Component Business Model

2.2 Determine Business Processes

2.3 Build Activity Matrix

3.1 Define Evaluation Criteria

3.2 Attribution and CBM Heat Maps

9.1 Investment Opportunities Assessment

9.2 Prioritization investment opportunities

9.3 Selective Project Plan Development

10.1 Business Case Commitment

10.2 Implementation Risk Assessment

10.3 Develop Transformation Roadmap

4.1 Feasibility and Readiness Assessment

4.2 Strategic Ambition Statement

5.1 Component Ownership Statement

6.1 Component Best Practices

6.2 Component Collaboration

6.3 Required Cap. Assessment

7.1 Current Cap. Assessment

7.2 Status Quo Opportunities

7.3 Overlay Analysis

8.1 Shortfall impact 8.2 Shortfall Opportunities

mandatory optional


Agenda

  Component Business Modeling (CBM)   Designing Flexible Businesses

 Service Oriented Modeling and Architecture (SOMA)   From business services to SOA services

  Rational Unified Process (RUP) & IBM Practices   Rightsizing the process of SW development


Componentized Business and IT Environment Enables Flexibility

Composable Services

(SOA)

Flexible Business

Transformation Business Process Outsourcing

Mergers, Acquisitions & Divestitures

Flexible IT

On demand Operating Environment

Software Development

Integration

Infrastructure Management

Requires

Development Infrastructure Management

Service Oriented Architecture (SOA)

Composable Processes

(CBM) Component

Business Modeling

SOMA


SOMA – Bridge Between CBM and SOA

  Service-oriented modeling is necessary to build a service-oriented architecture –  SOMA builds on current

techniques –  Domain Analysis

–  Functional Areas grouping –  Variability-Oriented Analysis

(VOA) –  Process Modeling –  Component-Based Development

(CBD) –  Object-Oriented Analysis and

Design (OOAD)/Use Case Modeling

  Service-oriented modeling introduces new techniques –  Goal-Service Modeling –  Service Model creation

KPI Metrics

Flows / Activities

Use Cases OOAD

Processes Components

Business Analysis Information Technology

Map Attribution

SOMA Component Business Modeling (CBM)

Service-oriented architecture (SOA)

Patterns Frameworks

Standards Programming

Model Services

BPEL WSDL


Information Services

(data driven view)

Approaches to SOA

Wrapping System or Package

for Service Exposure

Legacy Transformation

(“expose and service-enable an embedded Capability”)

Message Driven (“Just integrate these systems”)

Business process Driven Top Down Modeling to Identify

Business Services

Model Driven Development

with Intent of Top-down Service Exposure

CBM


Direct

Execute

Control

Financial Management

Business & Resource

Admin

Business Portfolio

Management

Customer Sales & Servicing

New Business

Development

Product Delivery

Customer Management

Product Services

Account Services

Treasury

Accounting General Ledger

Financials Consolidation

Facilities Operation & Maintenance

Systems Development &

Operations

Production Assurance

(Help Desk)

Fixed Asset Register

Business Unit

Administration

Human Resource

Management

Consolidated Book/Position Maintenance

Securitization/ Syndication

Inter-bank Account

Management

Smart Routing

Sales

Transaction Capture Services

Dialogue Handler

Transaction Consolidation

Authorizations Product

Development & Deployment

Market Research

Campaign Execution

Product Directory

Marketing

Merchant Operations

Card Financial Capture

DDA/Check- Specific

Processing

Card-specific Processing

Retail Lending

Contact/ Event

History

Collateral Handling

Customer Profile

Relationship Management

Credit Administration

Rewards Administration

Inventory Management

Cash Inventory

Market Information

Correspondence

Document Management

& Archive

Billing & Payments

Customer Accounting

Collections & Recovery

Finance Policies

Business and Resource

Planning Business Policies &

Procedures

External Relations

Asset & Liability Policy

& Planning Customer

Sales & Servicing Planning

Segment Analysis & Planning

Acquisition Planning

Product Operations Planning

Customer Portfolio & Analysis

Credit Policy & Planning

Product Services Planning

Account Services Planning

Reconciliations

Financial Control

Business Architecture

Business Unit Tracking

Audit/Assur- ance/Legal/ Compliance

Risk/Portfolio Management

Case & Exception Handling

Sales/ Service

Administration

Campaign Management

Product Oversight

Product Operations Oversight

Customer Behavior & Models

Application Processing

Relationship Oversight

Product Services Oversight

Fraud/AML Detection

Account Services Oversight

Each CBM component is responsible for business activities and processes

Business processes and activities are automated by business (SOA) services

These are supported by collaborating fine grained services and object interactions

External and Internal Contexts of Services


SOMA Supports Modeling Solutions Based on the Five Main Constructs of SOA- Services, Components, Compositions and Flows, Information, Rules and Policies

<<Object>> <<Object>>

<<Object>>

Services –the main structuring element required by a service consumer, provided by the service provider. Offers functionality and quality of service, both of which are externalized within service descriptions/policy. Services could be atomic or composite

(Flows) Business Processes – represent the flows of activities required to complete a business process. They are compositions of services targeted to achieve business goals

Components – that realize not only the functionality of the services they expose but also ensure their quality of service (the QoS advertised by the Service provider implementing (“realizing”) the services

Rules and Policies – that constraints the services, components, flows

Information – that flows between the layers and within a layer

Consumer Composition via Mashups, Web 2.0 – Allow composition of services at consumer layer, social software,


Service Realization

Service Specification Business Architecture Development Service Identification

CBM to SOMA Approach

CBM Map

Target Capabilities

Service Model

(Identification Level)

Confirm Business

Components

1

Enterprise Processes

& User Scenarios

Process Models

Map Business Capabilities

2

Identify Services (Domain

Decomposition)

6

Perform Goal/Service

Modeling

5

Document Candidate Services

8

Analyze Existing Assets

7

Define Service

Specification

9

Perform Sub-System

Analysis

10

Develop Component

Specification

11

Perform Service and Component Realization

12

Develop Low Level

Design Specifications

13

Code & Unit Test Services

14

Perform Service

Acceptance Test

15

Target Capabilities

Identify Business Activities

4 Analyze Business Processes

3

Component / Capability Services

Candidate Service

List

Service to System

Mapping CBM Application Overlay

Service Model

(Specification Level)

Service Oriented Modeling and Architecture (SOMA)

Target Process Models

Business Activities

Component/KPIs

CBM Driven


Example Architecture

source: Arsanjani et. al. (2008)


Agenda

  Component Business Modeling (CBM)   Designing Flexible Businesses

  Service Oriented Modeling and Architecture (SOMA)   From business services to SOA services

 Rational Unified Process (RUP) & IBM Practices   Rightsizing the process of SW development


Process Management Create, customize, publish, and enact software & systems development processes according to project needs

Governance

Rational Team Concert / Jazz

Process Library

(with RUP)

Rational Method

Composer

Process Design & Management

Leverage a rich set of process assets and

guidance to capture & maintain development,

management, and governance processes

Automate, integrate, and govern core business

processes of software and systems delivery through an

integrated set of proven, industry leading tools

Manage, author, configure, and deploy effective processes tailored to project needs

Establish consistent processes driven by standards and best practices to support corporate governance objectives


Rational Unified Process (RUP) – Key Concepts

  RUP’s practices –  Regular delivery of working software –  Active stakeholder participation –  Test-Driven Development (TDD) –  Collaborative development –  Continuous builds –  Early and frequent system-level testing –  Just enough process

  RUP Differentiators – scale agility to complex situations

–  Executive oversight –  Application complexity –  Geographical distribution –  Large team size –  Compliance requirements…


RMC and the Rational Software Delivery Platform

Rational Method Composer

Rational Team Concert / Jazz

Rational Project Composer

Process-Guided Tool Behavior

Process-Driven Planning

  Process Advisor - relevant guidance for what you’re doing

  Tool Mentors – guidance for how to implement the process with tools at hand

  Generate project plans from your process library

  Integrates with RPM and 3rd party tools


  Rational Process Library

–  IBM Practices –  Agile Core –  Governance and Compliance –  Requirements Definition and

Management –  Configuration Management –  Architecture Management –  Quality Management –  SOMA v.2.9 – …

Governance Governance

Practices – the newest part of the Rational Process Library The industry’s most robust collection of best practices guidance

Governance Governance

Customizable Process Library

Rational Unified Process

Process Design & Management

IBM Practices

CMMI

GDD

SOA Gov ITUP

Tooling

  Author   Manage   Re-use   Configure   Tailor   Publish   Reporting   Deploy   Estimate Over 100 practices and processes

to leverage & customize…


What are practices?   A practice can be adopted independently

from other practices –  Organizations can adopt one or a few practice at a

time

  A practice is a documented approach to solving one or several commonly occuring problems –  Can be informally document through one white

paper, or formally documented through a combination of training courses, tutorials, process content, redbooks, etc.

  A practice has a positive impact on one or serveral business objectives –  Time-to-Market, Improve Quality, Increase

Innovation,...

  The adoption of a practice, and it's impact on business objectives, can be effectively measured

  Practices apply the principles of object-oriented architecture to process management in order to provide atomic, reusable "components" of process.


Adopting Practices

  Satisfy compliance mandate

  Enable flexible/global resourcing

  Improve oversight

  Improve consistency/predictability

  Increase innovation

  Improve productivity

  Reduce time-to-market

Operational Objectives

  Recent SOX audit failure

  Inconsistencies with integrated financial reporting

  Functionality of customer web falling behind competition

  Create financial products more quickly

Customer Business Challenges Software Delivery Best Practices

Shared vision

Use-case driven development

Whole team

Continuous integration

Iterative development

SOMA

… Structured testing

Test management

Functional testing

Security testing

Architecture modeling

SOA governance

Asset-based development

Test-driven development

2-level project planning

Risk-value lifecycle

Asset governance

Enterprise SOA

RMC Process Library


Practices – Flexible Adoption Model

Agile Core   Iterative development   2-level planning   Whole Team

  Continuous Integration   TDD   Rapid Testing

Practices for Small Projects   Shared Vision   UC-Driven development   Risk-value lifecycle

  Evolutionary Architecture   Evolutionary Design   Iterative change management

Scrum

OpenUP

XPish

Practices for Scaling Projects   Component software architecture   Requirements definition   Requirements management

  Independent testing   Performance testing   Security testing   Test management

RUP-like

  Measured Capability Improvement Framework   Measure value and adoption   Take corrective actions

Practices for Agile Business

~CMMI Lvl 4-5

 Practice authoring & tailoring


Case Study ..approach applicable for retail sector - just change ’products’ to more tangible ones..


From here...


..to here


More Information

  CBM –  www-935.ibm.com/services/us/imc/pdf/g510-6163-component-

business-models.pdf

  SOMA   Elements of Service-Oriented Analysis and Design

–  http://www.ibm.com/developerworks/webservices/library/ws-soad1/

  Case Study –  http://www.redbooks.ibm.com/abstracts/REDP4467.html?Open

  IBM Practices, Rational Method Composer, RUP   Practices Plug-ins for Rational Method Composer


References

  Arsanjani, A. et. al. (2008), SOMA: A method for developing service-oriented solutions, IBM Systems Journal, vol 47, Is 3

  Slack, N. and Lewis, M. (2008), Operations Strategy (2nd edn), London: FT Prentice Hall

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