Document number Bart Narter Orlando, Florida CONFIDENTIAL | Great Expectations Can SOA Deliver? November 17, 2008 A member of the Oliver.

Document number

Bart NarterOrlando, Florida

CONFIDENTIAL | www.oliverwyman.com

Great ExpectationsCan SOA Deliver?

November 17, 2008

A member of the Oliver Wyman Group

2Document number© 2008 Oliver Wyman www.oliverwyman.com

Great Expectations: Can SOA Deliver?

Agenda

What is SOA?

Technical details

What does it do for me?

How do I deploy it?

3Document number© 2008 Oliver Wyman www.oliverwyman.com

What is SOA?

Loosely coupled modular services to support both business and IT requirements.

So what does that mean?

4Document number© 2008 Oliver Wyman www.oliverwyman.com

Loosely coupled

Services are independent. They don’t know or care whether the service is:– Running on Windows, J2EE or a Mainframe– Written in assembler, C, Java, or COBOL.– Running on a machine in the U.S., India, or China– Being served by a CRM system, a DDA system, or a database

So what does that do for me?– Enables a myriad of different (legacy) systems to supply information in a consistent

way using SOA.

5Document number© 2008 Oliver Wyman www.oliverwyman.com

Modular

Services are no longer monolithic applications, but broken into compound and granular services.

Example: Initiating a transfer is a compound service, that might comprise the following granular services:– Find customer– Authenticate customer– Find all accounts and balances (for display)– Find account (the funding account)– Get account balance (to verify availability of funds)– Find account (the receiving account)– Debit account (the funding account)– Credit account (the receiving account)– Find all accounts and balances (for re-display)

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So what does modular do for me?

Note that in the previous example we reused a number of services within the compound service.

Other compound services will reuse these services as well, driving consistency (= lower risk), lower cost, and flexibility.

7Document number© 2008 Oliver Wyman www.oliverwyman.com

SOA is an IT architecture consisting of loosely coupled modular services to support both business and IT requirements.

Loosely coupled: runs on a myriad of applications, systems, platforms and locations to tie together new and legacy systems

Modular: broken into compound and granular services to enable reuse

Business and IT: across the entire organization.

8Document number© 2008 Oliver Wyman www.oliverwyman.com

SOA from a technical viewpoint

Today SOA is used to broadly define a set of products and services that range from data conversion services, to portal tools, which is why it is very difficult to answer the question, “Do you use SOA?” A map of SOA components on the next slide should clarify.

9Document number© 2008 Oliver Wyman www.oliverwyman.com

Great Expectations: Can SOA Deliver?

Agenda

What is SOA?

Technical details

What does it do for me?

How do I deploy it?

10Document number© 2008 Oliver Wyman www.oliverwyman.com

Process Services

Orchestration

System BPM

Business Logic

Databases

Data Services

Enterprise Service Bus (ESB)

Systems of Record

Web Portals

Human Business Process Management (BPM)

Sec

urity

Reg

istr

y an

d R

epos

itory

Man

age

and

mon

itor

A Map of SOA Components

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Databases

Data Mapping and Conversion

Tool

Connection, routing tool for architect

Systems of Record

Portal Design tool

BPM Modeling and Simulation Tool for business analyst

Process Services

Low level Service Orchestration Tool

for developer

Business Logic written in Java,

C, C++, etc.

Sec

urity

Reg

istr

y an

d R

epos

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Man

age

and

mon

itor

Design SOA

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Fee database

Data Services

ESB: Routes to appropriate core system

DDA / Current Account

Internet Banking

Business Process: Stop Payment

Process Services

Orchestration:Business Logic: If Customer_Status = Gold Service_Fee = $8 else

Service_Fee = $20

Sec

urity

: Aut

hent

icat

e us

er

Reg

istr

y an

d R

epos

itory

: Fin

d S

top

Pay

men

t Ser

vice

, Cha

rge

Fee

ser

vice

Man

age

and

mon

itor

Banking Examples of SOA

13Document number© 2008 Oliver Wyman www.oliverwyman.com

Web Portals provide a single user interface to multiple back end systems via a service oriented architecture and HTML.

Portals can hold multiple service requests and display them in portlets. – An example would be with internet banking displaying a customers

- banking products- Investments- credit card balance (from another LOB or monoline)- mortgage information (from another LOB or monoline)

Web Portals

A Map of SOA Components

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Portal Example

Portlet to credit card company

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Business Process Management can be broken into three parts

Design: Usually with graphical eclipse based tools

Execute:

Monitor: Make sure that SLAs are met.

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Example of BPM: Open New Checking Account

Human Business Process Management (BPM)

Scan KYC Information

Run ChexSystem

Existing

Customer?

No

Yes

Features of Human BPM:– It involves human interaction (such as scanning KYC information)– It uses external processes such as Chex System.– It can be used to standardize business processes and reduce operational risk.

Result

OK?

17Document number© 2008 Oliver Wyman www.oliverwyman.com

Enterprise Service Bus (ESB) is the communication backbone of SOA.

It generally supports the following functionality:– Message transmission, routing, queuing, and monitoring– Synchronous, asynchronous, point-to-point, and publish/subscribe messages – XML and SOAP messages– Adapters to legacy systems

It also supports services which are called out in other modules:– Data Services– Process Services

Enterprise Service Bus (ESB)

18Document number© 2008 Oliver Wyman www.oliverwyman.com

Process Services

Orchestration

System BPM

Business Logic

Databases

Data Services

Enterprise Service Bus (ESB)

Systems of Record

Web Portals

Human Business Process Management (BPM)

Sec

urity

Reg

istr

y an

d R

epos

itory

Man

age

and

mon

itor

Put all the pieces together to get a Services Oriented Architecture

19Document number© 2008 Oliver Wyman www.oliverwyman.com

Great Expectations: Can SOA Deliver?

Agenda

What is SOA?

Technical details

What does it do for me?

How do I deploy it?

20Document number© 2008 Oliver Wyman www.oliverwyman.com

What does SOA do for me?

Enables abstraction of core systems for isolation and potential replacement.

Enables efficient messaging and business processes from the front end channels.

Enables reuse of common business processes for greater efficiency.

21Document number© 2008 Oliver Wyman www.oliverwyman.com

Isolate this system by accessing only via data services and process services.

Process Services

Orchestration

System BPM

Business Logic

Databases

Data Services

Enterprise Service Bus (ESB)

Systems of Record

Web Portals

Human Business Process Management (BPM)

Sec

urity

Reg

istr

y an

d R

epos

itory

Man

age

and

mon

itor

Enables abstraction of core systems for isolation and potential replacement.

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.

Process Services

Orchestration

System BPM

Business Logic

Databases

Data Services

Enterprise Service Bus (ESB)

Systems of Record

Web Portal: Internet Banking

Sec

urity

Reg

istr

y an

d R

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Man

age

and

mon

itor

Enables efficient messaging and business processes from the front end channels.

Web Portal: Teller

Web Portals: Sales

Platform

Web Portal:

Call Center

IVR

23Document number© 2008 Oliver Wyman www.oliverwyman.com

.

Process Services

Orchestration

System BPM

Business Logic

Databases

Data Services

Enterprise Service Bus (ESB)

Systems of Record

Web Portals

Human Business Process Management (BPM)

Sec

urity

Reg

istr

y an

d R

epos

itory

Man

age

and

mon

itor

Enables reuse of common business processes for greater efficiency.

24Document number© 2008 Oliver Wyman www.oliverwyman.com

Great Expectations: Can SOA Deliver?

Agenda

What is SOA?

Technical details

What does it do for me?

How do I deploy it?

25Document number© 2008 Oliver Wyman www.oliverwyman.com

How do I deploy it?

Channel driven

LOB driven

IT driven

26Document number© 2008 Oliver Wyman www.oliverwyman.com

Channel driven SOA is the most common

A single channel can create an SOA for itself and then share it later….or not.

Wide adoption across the bank isn’t guaranteed.

27Document number© 2008 Oliver Wyman www.oliverwyman.com

LOB driven SOA

An LOB might need functionality that isn’t available without integrating multiple systems or creating a new system to assist in a business goal.

28Document number© 2008 Oliver Wyman www.oliverwyman.com

IT driven SOA

This is a pure plumbing play and is difficult to drive across the bank.

Who pays for these projects?

29Document number© 2008 Oliver Wyman www.oliverwyman.com

National City Business Drivers

Single view of the customer

Customer Management Objectives (CMO) drive customer experience

– Call center

– ATM

– Statement messaging

– Branch

30Document number© 2008 Oliver Wyman www.oliverwyman.com

© 2007 Celent LLC 30

From old architecture…

General Ledger

CIF

Integration Layer

Channels

Data

Warehouse

Campaigns

Analytics

. . .

Post

ing

Ledg

ers

Pric

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ts

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ing

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s

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ing

Ledg

ers

Pric

ing

Not

cs

Post

ing

Ledg

ers

Pric

ing

Stm

ts

Later

Later

31Document number© 2008 Oliver Wyman www.oliverwyman.com

© 2007 Celent LLC 31

Pric

ing

Pric

ing

Pric

ing

Pric

ing

Stm

ts

Bill

s

Not

cs

Stm

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CIFContain – Leverage

Contain – Leverage

CIF

Data

Warehouse

General Ledger

Integration Layer

Campaigns

Analytics

. . .Po

stin

g Le

dger

s

Post

ing

Ledg

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Post

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Ledg

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ing

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Channels

Data

Warehouse

IDH

Cor

resp

onde

nce

Rewards Consu

merPric

ing

Business

Billing

NearReal Time

Service Enabled Integration Layer Analytics

Campaigns

To new.

32Document number© 2008 Oliver Wyman www.oliverwyman.com

Additional Questions?

Read the Celent Reports

A Tale of One City: Core Renewal via SOA at National City Bank

- http://www.celent.com/PressReleases/200712122/CoreRenewalNatCity.asp

A Christmas Carol: Wells Fargo Sings the Praises of SOA

- http://www.celent.com/PressReleases/20071221/WellsFargoSOA.asp

Great Expectations: Can SOA Deliver? Part I: Core-Driven SOA (Non-US)

- http://www.celent.com/PressReleases/20080516/GreatSOAPartI.asp

Great Expectations: Can SOA Deliver? Part II: Core-Driven SOA (US)

- http://www.celent.com/PressReleases/200805xx/GreatSOAPartII.asp

Great Expectations: Can SOA Deliver? Part III: Front End SOA

Great Expectations: Can SOA Deliver? Part IV: Platform SOA

To ESB or not To ESB

Or Contact

Bart Narter (bnarter@celent.com) San Francisco