Aligning IT with Business Goals through SOA

© 2006 IBM Corporation

IBM SOA Architect Summit

Keynote Presentation:

Aligning IT with Business Goals Through SOA

Garry GomersallSOA Business Executive, North-Europe IOT

[email protected]

3 SOA on your terms and our expertise


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



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



Division “A” Division “B” Division “C” Division “D” Division “E”

The Vertical Silo Problem



Where Are We Heading – Service Oriented Architecture

Outsourced

Supplier

Shared Services

Division(s)

Customer



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



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



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



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



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)



“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?



“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?



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



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



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



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



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



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



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



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.



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



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.



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



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



Thank You

MerciGrazie

Gracias

Obrigado

Danke

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