soa4 bt 07242014_0717_og_boston

© Copyright 2014 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, Boston July 2014

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>Applied Technology Solutions, Inc.(ApTSiTM)

SOA For Business Technology (SOA4BT)

The Open Group Conference, Boston 2014

ApTSi TM SOA, Cloud and Business Technology

ApTSi TM

Applied Technology Solutions, Inc.





• July, 2014• Name Title• Nikhil Kumar President & CEO

Co-Chair SOA Reference Architecture Project,

The Open Group

• Sundar Ramanathan Manager, IT Advisory Project Chair SOA4BT Project,

The Open Group

ApTSi TM

Applied Technology Solutions, Inc.

• Leadership• World Class

Technology• Experience

• Strategy• Integration & SOA• Application

Development & Reuse

• DB, EII & BI

Nikhil Kumar President

Email: [email protected]

Blog: http://blogs.ittoolbox.com/emergingtech/nikhil

Phone: (248) 797 8143

Introductions

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Sundar Ramanthan Manager

Email: [email protected]

Blog http://sundarar1.wordpress.com

Phone: (734) 272-2040

mailto:[email protected]

http://blogs.ittoolbox.com/emergingtech/nikhil

mailto:[email protected]

http://sundarar1.wordpress.com/




• Overview• The Business Perspective of Service Orientation• Alignment • Success Factors• What’s Next• Discussion• Supporting Materials

– The IT Perspective of Service Orientation


Agenda

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Business Ecosystem

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Business Adoption and Impact of Service Orientation

A world of SOAs

Low HighIncreasing

… “Service Orientation” is a strategic business PRIORITY

The rapid business adoption of Service Orientation is creating an aligned ecosystem, where the Business Ecosystem is the SOA Ecosystem

Modern SOA Ecosystem

Legacy APIs (CORBA/DCOM)

EAI

Enterprise SOA

Cloud Computing

Micro Service Architectures/ APIs & IOT

SOA RA




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Overview: a world of SOAs

A slow but relentless revolution in which traditional technology management, historically delivered only by an IT organization, is changing to be pervasive technology use managed increasingly outside of IT’s direct control and measured by boosting business results.

• Business Technology

The coalescing of the Business Ecosystems and SOA Ecosystems are Business Technology real




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Overview: Some background

Modern business environments have evolved into an ecosystem of:‒ Internal “SOAs”, driven by internal IT‒ An external “ecosystem” of partners & customers with a Micro Services API environment‒ An external (and sometimes internal) cloud ecosystem of service providers and consumers

Organizations are naturally adopting “Service Orientation” as a way of doing business

‒ They are becoming “Service Oriented Enterprises”

This presentation is about Service Orientation and its:‒ Business & SOA implications ‒ Business and SOA alignment enabled by SOA‒ The impact of Business Structure and Culture SOA adoption

Service-orientation is a thought process closely related to value chain thinking with a focus on Business efficiency & effectiveness




What You Will Learn

• Service Orientation and the Business– Strategy, Operating Models, Operations

• SOA Implications and existing SOA Standards– The SOA Reference Architecture(RA) and SOA Governance Framework(OSIMM)

• Bringing it together – SOA4BT– The SOA4BT reference model

• Using it– The practical implications – for business and IT alike

• Success Factors

• Examples– For a company in the healthcare sector– For a company in the retail sector

What You Will Learn

Overview: So what you will learn…

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• Business Executives and Management– Talking SOA to the Board– Talking to Line-Managers and Mid-Level executives

• IT Executives and Implementation– The SOA RA and OSIMM

• Enterprise Architecture– How do I handle this new ecosytem?

• Systems Integrators– A common understanding that the business and IT customers can share

What’s in it for me?!

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The coalescing of SOA and Business requires stakeholders from both IT and the business to think Service Oriented. This presentation should provide an introduction of the concepts involved.

Overview: So what’s in it for me?




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Some quick terms….

So what is a “Service Oriented Enterprise”?‒ A Service Oriented Enterprise is an organization that orients itself in a Service Oriented

manner, with the following characteristics It defines Business Capabilities in terms of Business Services Business Functions in terms of Business Processes It measures Business KPIs to determine success

"When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean -- neither more nor less.“"The question is," said Alice, "whether you can make words mean so many different things."

A Service Oriented Enterprise (SOE), over time, becomes structured to operate based on services rather than organizational units




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Some quick terms….

Some other terms…

‒ Business Services – those services that an organization considers its delivered services. The organization measures itself in terms of metrics related to these services, or consolidated metrics. Business Capabilities are composed of Business Services

‒ Business Functions – the operational functions which keep the organization running. Business Functions are composed of Business Processes.

‒ E.g. Provider Servicing with processes for claims submission, claims inquiry, etc.

‒ Business Process - A Business Process is defines the behavior from the ‘How’ (how work is done) perspective

Business Services are what the organization provides. Business Functions are what it does in order to provide Business Services. Business Processes are how business functions are done.






Agenda

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• Scorecards– Rolled up to an enterprise level, typically aligned on a Kaplanesque model to reflect factors of

business importance (customer satisfaction, employee satisfaction, revenue, etc.)– Business executive stakeholder understand and measure success based on these.– They can be tactical and strategic

• KPIs and Metrics– KPIs and metrics measurable attributes, typically at unit or program level, that can be rolled up

to the scorecards. They are often used to measure how an organization is aligning with its goals.

• Examples – Common scorecard measures for a Healthcare organization may be patient safety and

satisfaction– Common KPIs for a Healthcare organization may be raw mortality rate and patient

comorbidity rates

Businesses measure how they are doing..

The Business Perspective

Service Orientation is uniquely positioned as a business and technology architectural style to capture and compose metrics, and measurability is a key factor in modern businesses, especially due to its impact on efficiency and agility

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A Reference Model for Business in the context of SOA


The 3 pillars of SOA4BT – Strategic, Operational and Operating Model provide a framework for how Business adopts service orientation

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• Strategic– The Strategic Pillar addresses organizational strategy, orienting the organization around the

organizational mission, vision and goals.

• Operational– The Operational Pillar addresses how an organizational executes. This includes the functions

and organizational structure to run the business. The underlying business processes and services to run the business.

• Operating Model– The Operating Model Pillar addresses the manner in which an organization is run. The

structure and culture of the organization are factored into this. It is a very effective tool in assessing organizational readiness to adopt the SOA Ecosystem. Governance, culture and metrics are key aspects of this.

A Reference Model for SOA in the context of SOA


A Service Oriented Enterprise measures how it operates. It uses Business Services as a paradigm to determine how and what it does. It uses a capability based Strategic Model to determine how it works and an Operational Model to run the organization. It uses the Operating Model to determine prioritization.

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Pillar 1: Business Vision and Strategy

Business Vision & Strategy aligns mission, vision and goals around capabilities and Business Services

Activities + Org. Struct.

Operational Execution defines how an organization is run.

It is the “runtime” expression of a Service Oriented Organization.

In a Service Oriented Enterprise it translates to organizational structure and the business process required to run the organization.

Operational Execution


SOA Governance ensures consistency and alignment.

Business function alignment with the requisite organizational and process structure is enabled through governance frameworks

Alignment

Business Strategy expressed as Mission/ Vision/ Goal

Business Capabilities

Technical Capabilities

Business Vision & Strategy

Business Vision and Strategy in organizations gets defined in terms of organizational mission (the fundamental question of why an organization exists and why it is in business), vision (an aspirational definition of how the organization will approach realizing the mission) and goals (specific, quantifiable targeted activities that need to occur to realize the missions). These goals are expressed in terms of objectives or KPIs or measurable metrics. Strategies require capabilities to be realized, and business strategy can be expressed in terms of the business capabilities required to realize them. From an implementation perspective, there need to be corresponding Technical Capabilities and constraints – and the SOA RA and OSIMM provide a model with which to align with an organizational roadmap to realize organizational strategy – in a quantifiable and agile manner.

SOA RA Technical Capabilities

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• Vision, Mission and Goal– Where the metrics get associated

• Capabilities– Where the strategic functionality is defined

• Business Services – What the organization provides

Pillar 1: SOA4BT Alignment


A Service Oriented Enterprise is uniquely positioned to execute actionable strategy

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Pillar 2: Operational Execution

Size is not a factor. Most if not all business measure success. The How and What may vary.

Business Operations + Value Chain/ Supply Chain

Business Processes (enabled using the SOA RA capabilities)

Invoke Service Orchestrations & Workflows

Using Services from the Service Catalog



In a Service Oriented Enterprise, the business orients itself around processes and Business services, with measurable metrics. Business strategists think in terms of business capabilities, KPIs and how business orientation can lead to business success. Mission, Vision and Goal mapping , measured in terms of KPIs drive this “service orientation”

The SOA RA in particular provides a generic set of technical capabilities by layer.

These capabilities enable the technical and business capabilities required to execute business vision.

The Business Vision and impact.

SOA Governance ensures consistency and alignment.

Business function alignment with the requisite organizational and process structure is enabled through governance frameworks

Operational Execution Alignment

The Operational Business Architecture is defined by the Business Functions required to support the Businesses Operations . The Business Functions are composed of Business Processes and enabling capabilities. The Business Processes in turn invoke Services (or other Business Processes) through orchestrations or workflows.

This is leads to service reuse and the business benefits of agility, cost reduction and information consistency.

Business Functions (in Operational Business Architecture)

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• The Operational Pillar addresses how an organization executes

• Defines Business Functions which express how the organization runs

• Aligns the functional operation of the enterprise in terms of Business Processes and Business Services



The Operational Execution Pillar is how the organization runs as a Service Oriented Enterprise. Its decomposition leads from Business to SOA

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Pillar 3: The Operating Model

Operating Models relate organizational structure and culture, providing a mechanism to assess priorities, and the governance fabric to execute the SOE. The SOA provides the enabling framework.

Activities + Org. Structure

SOA Governance Execution


Operational Execution defines how an organization is run.

It is the “runtime” expression of a Service Oriented Organization.

In a Service Oriented Enterprise it translates to organizational structure and the business process required to run the organization.

Business Vision and Strategy in organizations gets defined in terms of organizational mission (the fundamental question of why an organization exists and why it is in business), vision (an aspirational definition of how the organization will approach realizing the mission) and goals (specific, quantifiable targeted activities that need to occur to realize the missions).

Goals are expressed in terms of objectives, KPIs or measurable metrics.

Strategies involve capabilities to be realized.

The SOA RA and OSIMM provide an initial set of capabilities and a model with which to align an organizational roadmap to realize organizational strategy in a quantifiable and agile manner.

Operating Models provide a background on which to help determine the fit for organizational structure, culture and help focus the areas in the SOA. Compliance and regulatory constraints, coupled with market, technical and business drivers, coupled with organizational cultural maturity help frame an organizational readiness and adoption model and a SOA Governance framework.

This forms the underlying basis for SOA adoption and transformation to a Service Oriented Enterprise.

The third pillar is the basis for the people and process part of SOA4BT – and an integral part of the creation of a successful SOE

Operational Execution

Alignment

Decision Rights & Gov.

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• The Operating Model Pillar addresses the manner in which an organization is run.– Provides a governance fabric

• Fiscal Models– How they spend, who is accountable, and who approves

• Cultural Structure – How does executive management view the organization? How is it measured?


Define the governance framework to define how you will get the “people” part of your organization to execute. Use the operating model to decide what to focus on.

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• Coordination– Unique Businesses with a need to know

each others transactions– Shared information, process & tech.

• Diversification– Independent Businesses units with

different customers and expertise– Economy of scale without limiting

independence.

• Replication – Independent but similar, often competing– Flexible sharing at the value chain

• Unification – Single Business, global process– Enterprise capabilities/ bus. proc,.

A Reference Model for Operating Models in the context of SOA


Operating models in the context of SOA have some unique implications

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Agenda

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Business Technology Alignment

Service Orientation provides a unique mechanism for low cost alignment

Business StrategyMission/ Vision/ Goal


Business OperationsValue Chain/ Supply Chain

Business Processes


Business Constraints

Service Orchestrations

SOA RA

SOA Solution Architectures

Service Catalog


Decision Rights & Gov.

SOAGovernanceExecution

Capability and Portfolio based

A combination of capabilities, constraints drive decisions and help define Solution Architectures

2Organizations align delivery portfolios on business and technical capabilities

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SOA Governance ensures consistency and alignment

3

Business Operations add Constraints

Governance

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Service Orientation provides traceability – not for the sake of it, but for the ease of being able to see the success or failure of it

Enterprise Strategic Business Architecture

Business Mission &

Vision

Technology Drivers

Business Drivers

Enterprise Mission Vision and Goal helps define drivers

Business and Technology drivers help def ine the guidelines and process for the strategy

SOA integration with Enterprise Strategy

SOA RASOA Governance decision process

Architectural decisions

Maps to SOA governance and architecture decision points

Tra

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bilit

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Business Architecture and Capability Mapping

Technology Architecture and Capability Mapping

Balanced Scorecard

Enterprise Scorecard provides mapping

Capability & Portfolio Map

Capability & Portfolio Map

SOA Solution Architectures

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• Traceability from organizational drivers through service orientation starts with alignment on mission, vision and goals

• Vision is aspirational, mission lays out tangible direction and how it will be achieved

• Understanding business drivers is fundamental to effective transformation to a SOE

• Business drivers categories that SOA is especially suited for:– Speed and Time to Market/ Cost/ Agility

Business Drivers and SOA

The Role of Business Drivers in a SOA

Boards do not understand services created or components reused. However, they do understand improved customer service numbers, or improved time to market or cost.

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• Regulatory • Disruptive (either due to technology or business reasons)• Innovation (leading to disruptive drivers)• Complementary capabilities achieved through partnerships (typically

establishing market drivers)• Substitute products (the threat of substitute products forces changes in

business models)• Established rivals (driving competition, threatening margins and value)• New entrants • Supplier bargaining power• Customer bargaining power.

Business Drivers

A Taxonomy of Business Drivers

Business Drivers change how a business must operate. They may change its business services. A Service Oriented Enterprise is uniquely positioned for this change.

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Understanding and aligning business drivers helps bring different stakeholders together and create an organizational perspective

Enterprise Logical Business Architecture


Business Mission & Vision

Technology Drivers

Strategic Drivers

Enterprise Mission Vision and Goal helps def ine drivers

Strategic, Market and Technology drivers form the basis on which business drivers are def ined

Market Drivers

BusinessDrivers

Constraints

Constraints (f iscal, cultural, etc.)

Business Drivers of different types need to be assessed and analyzed to determine a consolidated set of business drivers.

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Agenda

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• SOA RA is an enabler

• SOA OSIMM as a rubric

• SOA4BT to communicate and pervade

Success Factors

Success for a SOE

Moving to a Service Oriented Enterprise is a journey. However, modern business drivers of cost, globalization and agility make this easier to understand and justify

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Agenda

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• Mapping of BT to SOA

• Mapping to existing SOA Standards

• A Taxonomy of Services and Service Catalogs

• How do you do it – specific case studies and tutorials

What’s Next?

The Journey Ahead

Service Orientation is now a part of the Business Ecosystem. It makes concepts such as Value Chains actionable.

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Agenda

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Agenda

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The Enabler: The SOA RA V1

The SOA RA

The SOA RA provides a reusable set of capabilities, architectural building blocks and an underlying framework to make SOA actionable

Consumer

Interfaces

Business

Processes

Services

Service

Components

Operational

Systems

Inte

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tion

Qu

ality

of S

erv

ice

Info

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tion

Go

ve

rna

nc

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Consumer Interfaces

Business Processes

Services

Service Components

Operational Systems

Inte

gra

tion

Qu

ality o

f Se

rvice

Info

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tion

Go

vern

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ce

The SOA RA consists of 5 “functional” layers and 4 “cross-cutting” layers

1. The SOA RA1 provides an industry standard set of capabilities and architectural building blocks for each layer, based on best practices and lessons learned from a number of global organizations of various sizes and line of business

2. We use the business capabilities, industry trends and drivers and best practices to further constrain and define the capabilities to be supported, and define solution architectures

3. We use the OSIMM for Roadmapping

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The Enabler: The SOA RA V1 also be applied to other parts of the SOA Ecosystem, including the Cloud

The SOA RA and the Cloud Ecosystem

The Cloud is a particular expression of SOA. The SOA RA provides a fundamental fabric around which we can design cloud architectures

1 TOG 2012, Kumar (2012, 2011)

Private Cloud Hybrid Cloud Public Cloud Community Cloud

BPaaS e.g. LocationIndependence, Elasticity, Multi-tenancy, Meter for QoS

SaaS E.g. Meter for QoS –Chargeback

PaaS IaaS

The TOG SOA RA cross-cuts the matrix.Map it to your cell/s

Cloud Service Models

Deployment Models

C o n s u m e r I nt er fa ce s

B u s in e s s P r oc e ss e s

S e r v ic e s

S e r v ic e C o m p o ne n ts

O p e r a t io na l S ys te m s

In

te

gr

atio

n

Qu

alit

y

of

Ser

vice

In

fo

rm

atio

n

Go

ve

rn

anc

e1. Use the Matrix to determine which cell is appropriate. The Matrix has a set of characteristics* which typify the Cloud. These characteristics help identify which cells apply to you.

2. Use the SOA RA to determine your capabilities & ABBs

3. Ref ine it by applying the model and Constraints

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The Enabler: The SOA RA can be used to derive solution architectures1

Actionable Execution

The process of translation to an actionable asset is expressed through the mapping of business capabilities and constraints to the creation of an actionable SOA

1 Kumar (2012)

•Align•Actionable

Bus Cap.

•Map to RA•Quantifiable

SOA Cap.

TOG provides normative and prescriptive set

ABB •Map to Soln. Arch•ConstraintsSBB

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The Enabler: The SOA RA Metamodel

A Model

The metamodel provides for the realization of Solution Architectures

1 Kumar (2012), TOG (2011), Kumar & Arsanjani

Capabilities

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• Here’s how you instantiate the SOA RA ….

• KPIs, NFRs and Business Capabilities help Constrain the RA–

They help to come to Architectural Decisions–

You pick Options based on these Constraints–

This helps Determine the required capabilities, ABBs and SBBs

Using It!1

•Align•Actionable

Bus Cap.

•Map to RA•Quantifiable

SOA Cap.

TOG provides normative and prescriptive set

ABB •Map to Soln. Arch•ConstraintsSBB


1 Kumar (2012), Kumar & Arsanjani (2011/2012)

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The Enabler: The SOA RA Metamodel


1 Kumar (2012)

Silo

Level 1

Services

Level 4

Composite Services

Level 5

VirtualizedServices

Level 6 Level 7

DynamicallyRe-Configurable

ServicesComponentized

Level 3

Integrated

Level 2

Modules ServicesProcess Integration

via ServiceDynamic Application

AssemblyComponentsObjectsApplications

Structured Analysis & Design

Service OrientedModeling

Service OrientedModeling for Infrastructure

Business ProcessModeling

Component Based Development

Object OrientedModelingMethods

Isolated Business Line Driven

Business provides & consumes services

Outsourced Services

BPM & BAM

Business capabilities via context aware

services

Componentized Business Functions

Business Process Integration

Business View ComposedBusiness Services

Service Oriented Modeling

Applications comprised of

composite services

LOB Platform Specific

Project Based SOA Environment

Virtual SOA Environment:

Sense and Respond

Context-aware Event-based:

Sense & Respond

Common Reusable Infrastructure

Enterprise Standards

Infrastructure &Management

Monolithic Architecture

Emerging SOA

Grid Enabled SOADynamically Re-

Configurable Architecture

ComponentArchitecture

Layered ArchitectureArchitecture SOA

Common SOA Environment

Ad hoc LOB IT Strategy and Governance

Emerging SOA governance

SOA and IT Infrastructure Governance alignment

Governance via Policy

Common Governance Processes

IT Transformation

Governance & Organization

SOA and IT Governance Alignment

Application Specific Data Solution

Information as a Service

Virtualized Data Services

Semantic Data Vocabularies

CanonicalModels.

LOB Specific(Data subject areas

established)Information

Enterprise Business Data Dictionary &

Repository

Service Foundation Levels

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1 Kumar (2012)

• The TOG SOA RA and OSIMM enable Roadmapping – The OSIMM forms a rubric to assess conformance– The RA provides the what and how– Used together, you can plot how to evolve an RA and respond to change

Using It! Roadmapping


• Align against Business Drivers


• The SOA RA provides an alignment to ABBs and Layers

Roadmap

• Express as sets of capabilities

• Aligned to OSIMM dimensions

Phase Execution and Assessment

• Map SOA Cap to RA ABBs

• Derive SBB• Assess against

the OSIMM• Rebalance and

conduct next phase of Roadmap

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The Enabler: The SOA RA Meta-model


1 Kumar (2012)

Current

Future

Current

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The Joiner: SOA 4BT aligns the Business Vision of the Service Oriented Enterprise & the IT perspective of SOA

The IT Perspective and SOA4BT

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Alignment and Traceability

Size is not a factor. Most if not all business measure success. The How and What may vary.


Balanced Scorecard

BU Balanced Scorecard

BU Balanced Scorecard

Scorecard (e.g. Kaplan variant) used to rollup into business significant measures:1. Map to specific organizational needs2. Reflect Kaplan-esque attributes

Scorecard (e.g. Kaplan variant) used to rollup into LOB measures:1. Map to specif ic LOB needs2. LOB Strategy3. LOB goals/ objectives/ KPIs

SOA integration with Enterprise Strategy

KPIs + Metric

SOA Governance decision process

Architectural decisions

KPIs/ Objectives:1. Roll up to organizational/ BU goals2. Have def ined metrics with units of measure and ways to measure

Maps to SOA governance and architecture decision points

Tra

cea

bilit

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SOA uniquely enables Alignment & Traceability

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