defining business and operational services
DESCRIPTION
TRANSCRIPT
Yiwei Chen Updated on 2008
DEFINING BUSINESS SERVICES SOA from Corporate & Operation Perspectives
* Keynotes for SOA Conferences and Symposiums in Beijing, Kuala Lumpur, and Dubai during 2007 and 2008
2
HIGHLIGHTS
IT & Business Gap
Defining Corporate Business Services
Defining Business Service Delivery Paradigm Servicing Channels
Operational Services
Role-based Organization
SOA is the Enabler
Merging IT & Business Gap
3
WIRELESS’ SERVICE DISRUPTION
A leading 3G wireless provider in US in 2003
“A major CRM system had crashed during an upgrade, and customer service representatives could not set up or access new accounts. The system breakdowns, which continued through February 2004, swamped other … systems, gridlocked customer service phone banks and sent furious customers scurrying to other providers.”
– CIO Magazine
Acquired by another company soon afterwards
4
WHAT IS SOA?
New IT framework?
New technology?
Integration?
Software as a service?
Web services?
Better Governance?
5
VIEWING FROM A CORPORATE PERSPECTIVE
New IT framework?
New technology?
Integration?
Software as a service?
Web services?
Better Governance?
Can SOA enable the corporate to focus on business, nothing but business?
6
IT CHALLENGES IN BUSINESS’S EYE
Corporate
Business Operation
IT Organization
IT Project
Lack of understanding to evolving business
Business’s blindness into IT systems
SOA perceptions Arbitrariness in defining services
Extremely complex
Simply solving the same old business problems as the old technologies had done
7
IT CHALLENGES IN BUSINESS’ EYES
Lack of understanding to evolving business
Business’s blindness into IT systems
SOA perceptions
Arbitrariness in defining services
Extremely complex
Simply solving the same old business problems as the old technologies had done
Corporate
Show me the real value!
Corporate
Business Operation
IT Organization
IT Project
8
FOCUS ON CORPORATE INTERESTS
Maximize the asset value
Minimize the risks
Manage all key liabilities
Customers
Employees
Users
Suppliers
Investors
Regulators
…
Customers
Corporate
InvestorsEmployees
SuppliersUsers
Regulators
9
BUSINESS SERVICES & PROCESSES
Corporate
Customers
Investors Employees
Suppliers Users
Regulators
Dep
osi
t Pro
du
ct
SOA makes it technically feasible for a corporate to focus on business
10
BUSINESS SERVICES & PROCESSES
SOA makes it technically feasible for a corporate to focus on business
Corporate BusinessServices
Customers
Investors Employees
Suppliers Users
Regulators
Dep
osi
t Pro
du
ct
Corporate business services can be triggered by
Service recipients, or
Internal operations
11
BUSINESS SERVICES & PROCESSES
Corporate business services can be triggered by
Service recipients, or
Internal operations
Business processes drive the corporate business services
A workflow to go through for delivering the corporate business service
Can be managed, automated, and optimized
Business Processes
Corporate BusinessServices
Customers
Investors Employees
Suppliers Users
Regulators
Dep
osi
t Pro
du
ct
12
BUSINESS SERVICES DELIVERY PARADIGM
Operational services orchestrate…
Business processes that drive…
Corporate business services to be delivered to…
Service recipients through…
Servicing channels
Operational services are all other services outside of
corporate business services
13
OPERATIONAL SERVICES
Servicing Channel
Servicing Channel
Corporate Business Service
Corporate Business Service
Operational Service
Operational Service
Operational Service
Operational Service
Business process
Operation
Process
Operation
Process
Corporate Business Service
Servicing Channel
A business process activates operational services
An operational service can initiate a new operational business process
An operational business process may also trigger a corporate business service
Timed billing
Procurement
14
CORPORATE BUSINESS SERVICES VS. OPERATIONAL SERVICES
Service Type Service Recipient
Performer Legal Liability Servicing Channels
Financial Transaction
Corporate Business Service
External entity Corporate Corporate Attended & unattended
Usually happens
Operational Service Internal business process
Individual Principal
None None None
Servicing Channel Service
Servicing channel Individual Principal
None None None
* Servicing channel service is a special type of operational service
Unambiguously defining services
15
DEMAND FOR A ROLE-BASED ORGANIZATION
Qualified principals for performing operational service Employees
Temporary workers
Outsourced staff
External service providers
Enterprise applications
Robots
A true role-based organization Collection of operational service
performer roles
Well managed principal to role assignments
Ensure the business continuity
16
ORGANIZATION PARADIGM SHIFT
- Courtesy of New Yorker
"Dammit, our board has three robots on it, and now one guy is voting with them against the other four humans at the table, resulting in a tie. That makes me scowl."
Human and enterprise applications are
working in together for the same business
process to deliver a corporate business
service.
17
BUSINESS CONTINUITY PLANNING
Reta
inin
g Busi
ness
Process
On-boardin
g Busi
ness
Process
Career
Develo
pm
ent
Operati
onal
Process
Perfo
rm
ance
Operati
onal
Process
Recruit
ing
Corp. Bus. s
ervic
e
Benefi
t Corp. Bus. S
ervic
e
Com
pensa
tion
Corp. Bus. S
ervic
e
Career P
lannin
g O
perati
onal
Servic
e
Train
ing
Operati
onal
Servic
e
CEO
COO
HR Director
Benefi
t A
dm
in.
Recruit
er
Com
pensa
tion
Adm
in.
Career A
dvis
or
On-boardin
g M
gr.
Reta
inin
g M
gr.
Career M
gr.
Perfo
rm
ance M
gr.
Train
ing
Coordin
ato
r
Service Outsourcing
Staff Outsourcing
Service Outsourcing
Staff Outsourcing
Service Outsourcing
3rd Standby
Staff Outsourcing
Employee
Service Outsourcing
Staff Outsourcing
Staff Outsourcing
2nd Standby
Employee
Employee
Employee
Employee
Service Outsourcing
1st Standby
Employee
Enterprise Application
Enterprise Application
Employee
Employee
Active
Benefit Administrator
Recruiter Role
Compensation Administrator
Career Advisor
Training Coordinator
Role
18
SERVICING CHANNELS
Conduit for enterprise to offer corporate business services to recipients
Performers of the servicing channel services are performing corporate business services on corporate behalf
19
INTERACTION MODEL
Consists of
Corporate Business Service
Recipient
Provides Services to
Role-based Organization
Business
Process
Corporate
Business
Service
Servicing
Channel
Servicing
Channel
Service
Servicing
Channel
Service
Performer
Service
Performer
Operational
Service
Is a Kind of
DrivesOrchestrates
Is Provided toRecipientsThrough
Performs
Operates
Performs
Is a Kind of
20
SUPPLY-CHAIN EXAMPLE
Consists of
Corporate Business Service
Recipient
Provides Services to
Role-based Organization
Business
Process
Corporate
Business
Service
Servicing
Channel
Servicing
Channel
Service
Servicing
Channel
Service
Performer
Service
Performer
Operational
Service
Is a Kind of
DrivesOrchestrates
Is Provided toRecipientsThrough
Performs
Operates
Performs
Is a Kind of
Organizational Roles• Procurement Manager
• Logistics Manager
• Cataloguer
• Buyer
• Material Controller
• Dispatcher
Operational Services• Production Planning• Transportation Planning• Logistics Management• Demand Planning• Warehousing• Manufacturing
Business Processes• Plan-to-Produce• Trigger-to-Replenishment• Order-to-Cash• Demand-to-Fulfill• Build-to-Order
Corporate Business Services• Sourcing• Procurement• Order Fulfillment• Invoicing & Settlement• Customized Product Configuration
Servicing Channels• Attended Human Direct
• Attended Human Indirect
• Unattended Portal
• Unattended B2B
Service Recipients• Public
• Customers
• Suppliers
• Employees
• Auditors
21
SOA IS THE ENABLING PARADIGM
SOA encapsulates the corporate business services while
automating the invocation of business processes
SOA makes the business process manageable through
agile workflow
SOA makes role-based organization operationally feasible
SOA makes all services transparent for monitoring and
governance
SOA makes business scalable, highly available, and agile
22
MERGING IT-BUSINESS GAP
Corporate fully owns the corporate business services
Business operation drives the business processes and operational services
IT is part of the business operation
IT builds and supports the SOA infrastructure for enterprise applications and software tools that empowers
Business service management
Business process management
SAAS-nized enterprise applications
Build the new IT-business relationship
23
Business Services ManagementFor
Managing Corporate Business Services
Business Process ManagementFor
Managing Corporate BusinessServices
Business Services ManagementFor
Managing Operational Services
Business Process ManagementFor
Managing Operational Services
BusinessAnalyst
Business/Oper.Manager
Business/Oper.Specialist
Business
ExecutionBusiness
GovernanceBusiness
Strategy
OperationGovernance
OperationStrategy
OperationStrategy
Business
Monito-ring
OperationExecution
OperationGover-nance
OperationStrategy
Business/Oper.Strategist
MERGING IT-BUSINESS GAP
Business Services ManagementFor
Managing IT Operational Services
IT SupportSpecialist
IT SystemAnalyst
IT ArchitectIT Developer IT Manager
IT
Support
ITSupport
IT
Performance
Monitoring
IT
Support
IT
Execution
ITPerformanceMonitoring
ITSupport
ITExection
ITPerformance
Monitoring
ITGovernance
ITStrategy
IT
SupportIT
Execution
ITPerformance
Monitoring
IT
Governance
ITTechnologyMonitoring
IT
Execution
ITGovernance
ITStrategy
Ownership
ITOrganization
BusinessOperation
Corporate
BusinessOperation
BusinessOperation
24
CONCLUSION
SOA streamlines business services in broader sense
Business services are composed of corporate business services and operational services
SOA is the enabling technology for the novel business service delivery paradigm
The novel service delivery paradigm enables IT to well align behind business
The business-IT gap can be eventually merged
Corporate benefits from being able to be business focusing, guaranteed business continuity, and gaining true business agility