How Service Oriented Architecture Improves Business Flexibility · 2010-01-15 · 1 How Service...

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How Service Oriented Architecture Improves Business Flexibility

WebSphere - 01 How SOA Improves Business Flexibility 2

�Revenue growth with cost containment

�Key competency: responsiveness�Critical success factor:

enable effectiveness of people and processes

Source: CEO Study of 456 WW CEOs IBM Corporation - 2004

What’s on the Minds of 450 of the World’s Leading CEOs

Source: Operating Environment Market Drivers Study, IBM Corp. 2004

CEO needs

�Aligning IT and business goals to grow revenue and contain costs

�Building responsiveness and agility into the organization through IT

�How can IT help enable people and teams to be more effective

CIO challenges

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Answering These Three Challenges is What an On Demand Business is All About

An On Demand Business is an enterprise whose business processes—integrated end-to-end across the company and with key partners, suppliers and customers—can

respond with flexibility and speed to customer demand, market opportunity or external threat.

… multiple companies, seamless process


On Demand Business Characteristics

� Business processes are automated� Customers have online access� Suppliers and business partners are integrated into the

business processes� Business processes are well-defined and execute end-to-end

without interruption

� Business processes are flexible� Quickly created and modified� Responsive to changing customer demand� Replace inefficient existing business processes

Business flexibility is a key characteristic of an on demand business

Let’s take a look at an example…

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Traditional Business ProcessExample: Order to Cash Process

= business function

MarketingInventory Management

Collections

Marketing Application

� Business process is embedded in three separate applications� Business functions are tightly coupled within applications� Business functions have unique and proprietary interfaces, restricting re-use� Manual steps introduce functional gaps in the process� Process cannot be easily measured and managed� Changes to the process are difficult to implement� New processes which are designed this way require long development cycles

Result: Business cannot operate on demand

Order Mgmt Application Fulfillment Application

Manual Steps


Customer

Division

On Demand Flexibility: Customer Self ServiceOrder entry

� Customers now order online using a web browser and the Internet� Business partners can order using a web service call from their own process� Customers are better served

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On Demand Flexibility: Shared Services

SharedServices

Customer

Division

MarketingBilling

Receivables

� Common business functions are shared across the enterprise� Marketing, Billing, and Receivables are handled uniformly� Enterprise can scale across divisions and lower costs


On Demand Flexibility: Vendor Managed Inventory

Supplier

� Minimize or eliminate inventory management function� Costs are reduced because less inventory is needed� Inventory servicing is better because of supplier integration with the process

Inventory Management

SharedServices

Customer

Division

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On Demand Flexibility: Outsource

Outsourced

Supplier

SharedServices

Customer

Division

� Shipping is not a core competency� Shipping companies (e.g. FedEx, DHL, UPS) have more capabilities� Reduce shipping infrastructure and overhead costs

Shipping


On Demand Flexibility: Improve the Process

� Identify and remove bottlenecks in the process� Customize the business rules and policies to better serve customers� A more efficient business process costs less

Outsourced

Supplier

SharedServices

Customer

Division

Removebottleneck

Alternative flow path

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Benefits of Business Flexibility

An on demand business is more competitive

� Better responsiveness to customers� Quickly implement new business processes to support new

products and services� Change existing business processes to serve the customer

better

� Supports a changing business environment� Mergers, acquisitions, divestitures

� Provides an environment that encourages innovation

� Reduces operational costs� Business functions are built once and re-used� Lower maintenance costs� Inefficiencies are easily removed


Let’s begin by defining what Service Oriented Architecture is…

Service Oriented Architecture (SOA) Enables On Demand Business

“A system architecture in which business functions are built as components (services) that are loosely-coupled and well-defined to support interoperability, and to improve flexibility and re-use”

� Business functions are exposed as services� A service has a standardized interface� Services become building blocks that can be reused in

developing other applications� Development focus is on application assembly rather than

on implementation details

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What is a Service?

Service Requester

Service Provider

Service

� A service either provides information to the service requester, or facilitates a change to business data from one valid and consistent state to another

� Web Services Description Language (WSDL) is used to define the service

� Service requesters communicate with services using Extensible Markup Language (XML) messages

� A web service is a specific type of service

� A service is an business function packaged as a reusable component that can be used in a business process


WSDL Provides a Standard Interface

Service Requester

Service Provider

Service

Service Description (WSDL)

Service Description

(WSDL)

� WSDL is an XML document which describes everything a service requester needs to use a service

� Service requester uses WSDL document to bind to the service

� XML messages are passed between the requester and service

� portType - what the service does (list of operations)

� message – description of data used by each operation

� types – data type definitions for messages (usually xsd schemas)

� binding - how the service is invoked (e.g. SOAP/HTTP, SOAP/JMS, etc.)

� port - specifies the address where the service is located

Request (XML)

Response (XML)

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Implementing a Service Oriented Architecture

Marketing Application Order Mgmt Application Fulfillment Application

How do you go from this environment…

Outsourced

Supplier

SharedServices

Customer

Division

There are 4 steps to implementing SOA….

To this environment?


SOA Step 1 - Componentized Business Design

Business Partner

Elements

Enterprise Applications

Elements

DataElements

People and applications

Calculate credit scoreProcess credit application

Place orderCheck shipping status

Customer recordsBilling data

Inventory data

Examples:

� Identify elements of existing business processes� Business functions implemented by applications� Data used by processes� Services provided by systems� Tasks done by people

� Identify consumers of these elements� People� Applications

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Partner ServicesApplication Services Data ServicesPeople and applications

� Expose elements as services that can be invoked

� Define clients for people to consume services� Browsers, fat clients, mobile, and others

� A Web Services Description Language (WSDL) interface is generated for each service

� The data structure used by the service is defined in Extensible Markup Language (XML)

SOA Step 2 – Expose Elements of Business Processes as Services

Service Providers and Consumers

WSDL WSDL WSDLWSDL WSDL WSDL


� Enterprise Service Bus functions� Connects services and service requesters regardless of location, transport,

or organizational boundary� Reliably passes messages between services and service requesters� Mediates between service requested and service provided

− Time, rate, format, location, protocol of requests/responses

SOA Step 3 – Connect Services with an Enterprise Service Bus

Enterprise Service Bus

Partner ServicesApplication Services Data Services


People and applications

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Service Combining Frameworks

SOA Step 4 – Integrate Services Using Service Combining Frameworks

Enterprise Service Bus

PeopleIntegration

Process Integration Information Integration

Partner ServicesApplication Services Data Services


People and Applications


WebSphere Has Built-in Support for SOA

� Tools to create services quickly

� Infrastructure to execute services

� Adapters for services which execute existing application function (i.e. SAP, Siebel, CICS, PeopleSoft)

� Enterprise Service Bus to connect services and service requesters

� Service combining frameworks to integrate services into applications� Deliver services to user desktops

� Assemble services into business processes

� Combine multiple data services into a single data service

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WebSphere Products We Will Discuss Today� Tools

� WebSphere Business Integration Modeler� WebSphere Studio Application Developer Integration Edition

� Web Application Server� WebSphere Business Integration Server Foundation� WebSphere Portal Server� WebSphere Everyplace Access

� Adapters� SAP WebSphere Business Integration Adapter

� Enterprise Service Bus� WebSphere MQ� WebSphere Business Integration Message Broker

� Data Integration� WebSphere Information Integrator� WebSphere Product Center


Today’s Objectives

� Explain and demonstrate WebSphere’s capabilities as an SOA platform

� Compare WebSphere to competitive offerings� Microsoft .NET� SAP NetWeaver� BEA, Oracle, TIBCO

� Prove that WebSphere is the best platform for enabling business flexibility

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Today’s Case Study: On Demand Insurance

� An established insurance company� Wants to be an industry leader at providing customer service� Implementing WebSphere to improve its business


ODI CEO

On Demand Insurance Business Problems

IBM

1. We lose customers because we process new policy applications too slowly.

2. Our Claims Processing is time consuming and inefficient.3. We need to do a better job of attracting new customers.

WebSphere, and its support for Service Oriented Architecture, can help you solve these problems. Let’s see how…..

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Agenda

12:55 – 1:00How to Get Started Today

12:15 – 12:55Why WebSphere Provides a Superior Foundation

11:35 – 12:15Connect Applications and Services Together with the Enterprise Service Bus

10:55 – 11:35Improve Productivity Using Portal and Pervasive Technologies

10:40 – 10:55Break

10:20 – 10:40Simplify Information Access

9:20 – 10:20Create New Business Processes Using Service Oriented Architecture

9:00 – 9:20Introduction – How Service Oriented Architecture Improves Business Flexibility


Developers: http://www.ibm.com/developerworks/

Business Partners: http://www.ibm.com/partnerworld/

Competitive Material (IBM only): http://w3-03.ibm.com/sales/competition/compdlib.nsf/pages/swgcpo

Seminar Materials and Registration: http://www.ibm.com/developerworks/offers/techbriefings/details/websphere.html

IBM

For Additional Information

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The Future is On Demand

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