Avi Bender - Modernization Through Business and Technology ...

IRS Enterprise Architecture 1

Service Oriented Architecture Discussion

Modernization Through Business and Technology Transformation

Avi BenderDirector, Enterprise Architecture

Department of Treasury, Internal Revenue [email protected]

202-283-0150

IRS Enterprise Architecture 2

The IRS As A Service Oriented Organization

MISSION

Provide American taxpayers top-quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

VISION

The IRS is an agency with the human capital and technology capabilities to effectively and efficiently collect the taxes owed with the least disruption and burden to taxpayers.

STRATEGIC GOALS

Goal #1: Improve Taxpayer ServiceGoal #2: Enhance Enforcement of the Tax LawGoal #3: Modernize the IRS Through its People,

Processes, and Technology

IRS Enterprise Architecture 3

To Put Things in Perspective….

Business METRIC MAGNITUDE

Individual Master File Taxpayer Accounts

220 Million

Business Master File Taxpayer Accounts

43.4 Million

Tax Exempt and Government Entities

(e.g. Federal, state & local governments, federal agencies, charities, Indian tribes, pension plans)

3 Million Entities

Manage over $ 8 Trillion in Assets

Tax Revenues Collected Per Year $ 2.1 Trillion

IRS Employees 99,000

Total IRS Locations Over 1,000

IRS Computing Centers 3

Business Partners Tens of Thousands

IRS Legacy Business Systems > 500

IRS Legacy Data Storage > 100 terabytes

Taxpayer Inquiries per Week 23 Million

Tax Law Changes per Year > 200

IRS Enterprise Architecture 4

Tax Administration Technology Environment

Returns, Payments,Correspondence

Capture Data

From Paper

Daily Daily

Daily/On Demand

RevenueAccountingFinancialReporting

Treasury, GAO

Submissions ProcessingPaper

Electronic Returns, Payments,

Correspondence

Validate &PerfectData

Daily

Daily/On Demand

Workflow, Work Management, Case Management, Pending Updates Customer Communications

Customer Service Systems

Collection Systems

Taxpayer(Telephone & Correspondence)

Criminal Investigation Systems

Examination Systems

Weekly Weekly Weekly

Active Accounts(10% max.)

Taxpayer AccountProcessing(Computing Center)

Corporate FilesOnline

Databases with replicated & new data

Daily/Weekly &On Demand

Internal Management Systems(Human Resources, Internal Financial Management, Records Management, etc.)

Electronic Receipt of

Submissions

Integrated Data RetrievalSystem

Post, SettleAccounts

MasterFiles

The IRS Tax Administration System, which collects more than $2 trillion in revenue every year, is heavily dependent on a wide variety of over 500 computer systems, some were designed in the 1960’s.

Limitations inherent in these systems have created complexity and overhead

IRS Enterprise Architecture 5

Key IRS Business Drivers & Challenges Impact Tax Administration

Business Requirements IRS Context

Simplification • Reduce the complexity of existing systems by decomposing into common services• Reduce the amount of custom code

Service Reuse • Leverage common application and infrastructure services to achieve operational efficiencies, and cost savings

• Lower costs required to maintain complex systems to free capital for value added capabilities• Enable modernized applications to leverage CPE based services

Agility • Create a business and technology architecture that can support changing regulatory, business and customer needs

• Unlock the power of data for transformation of the business• Create a flexible architecture that is aligned with MV&S

Enable Transformation

• Establish a phased modernization (Transformation) that leverages both legacy and new technologies• Proactively blur the legacy and modernization boundaries through enterprise common services• Reduce time to market

Regulatory Requirements

• Federal Enterprise Architecture Service Reference Model• Treasury Enterprise Architecture Service Reference Model• OMB EA Assessments, Clinger Cohen Act, Federal Transition Framework

Security Requirements

• GAO Oversight Findings on Security• Establish Common Security Services• Reduce Complexity of Security Solutions

IRS Enterprise Architecture 6

IRS Mission Drivers for SOA Adoption Are the Same as Private Industry and Other Agencies.

Transformation vs. Rip-n-Replace

Source: Executive Board, 2006

IRS Enterprise Architecture 7

What is SOA?

• SOA is a services driven design approach that integrates business and IT strategies to provide Common Services that leverage existing and new functionality by combining capabilities in new ways

• The strategy of SOA includes:• Integration with IRS strategic Planning (MV&S)• Providing modernization through the sharing & reuse of services across the enterprise• Streamlines existing business processes for greater efficiency and productivity

• The approach for SOA:• Leverage existing IT investments and open standards• Connect applications and data to deliver connectivity and interoperability• Reduce redundancy in functionality and data stores

• Development using SOA:• Shifts the focus from writing and rewriting code to application and service assembly• Promotes the use of consistent design patterns and tools across development efforts

• Standards allow applications to be designed for reuse• Components that can be used over and over again• Standardized interfaces and standard data definitions• Business logic is separated from the infrastructure

IRS Enterprise Architecture 8

Modernization Vision and Strategy:Partnership Organized Around Functional Business Segments – Not Organizations

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Subm

issionP

rocessing

Custom

er Service

Manage T

axpayerA

ccounts

Reporting

Com

pliance

Filing &

Paym

entC

ompliance

Crim

inalInvestigation

InternalM

anagement

Other F

unctionalD

omains

Su

bm

iss

ion

Pro

ce

ss

ing

Cu

sto

me

r Se

rvic

e

Ma

na

ge

Ta

xp

ay

er

Ac

co

un

ts

Re

po

rting

C

om

plia

nc

e

Filin

g &

Pa

ym

en

tC

om

plia

nc

e

Crim

ina

lIn

ve

stig

atio

n

Inte

rna

lM

an

ag

em

en

t

Oth

er F

un

ctio

na

lD

om

ain

s

Business DomainsDefine the

frontline tax administration

functions that are within the scope of

the new MV&S

Wag

e and

Investm

ent

Wag

e and

Investm

ent

Sm

all Bu

siness/S

elf Em

plo

yedS

mall B

usin

ess/Self E

mp

loyed

Tax E

xemp

t/Go

vernm

ent E

ntity

Tax E

xemp

t/Go

vernm

ent E

ntity

Larg

e & M

id S

ized B

usin

essL

arge &

Mid

Sized

Bu

siness

Common Security Services

Crim

inal In

vestigatio

nC

rimin

al Investig

ation

Intern

al Man

agem

ent

Intern

al Man

agem

ent

Infrastructure Services

Data Access & Update Services

Common Business Services

Service Domains

Define the services necessary to support the

effective and secure execution

of the core mission-critical

business functionsCut across multiple

domains

Business Organizations

Define the IRS business

units impacted by the modernization

effort

MIT

SM

ITS

IRS Enterprise Architecture 9

The IRS SOA Framework is Based Upon Three Core Areas: Common Services, Platform and Tooling, and Governance

Enterprise Business Services

Application Services

Infrastructure Services

Application integration / shared services

(ESB/EAI Enabled)

Business units of work resulting from broad

based decomposition

Hardware utility functions and solutionsG

ove

rnan

ce

Platform & Tooling

• There are different types of services, that provide different types of value to the IRS

• All require governance and specialized platform & tooling

• The IRS has initially focused on building out Infrastructure and Application Services, and will advance to Enterprise Business Services (higher value) as SOA maturity increases

SOA enablingTechnology

(middleware)

Dat

a

Current Activities

Common Services

Se

cu

rity

Se

rvic

es

IRS Enterprise Architecture 10

Common Services Are Business Driven by MV&S (Strategic Planning and Investments) and Filtered Through an Evolving Common Services Framework

SIRS

TPOT

EDSS

AMS

ETEC

MeF

TREESIMS

Defin

e, Desig

n,

Bu

ild, D

eplo

yP

lan(M

V&

S)

O&

M

Retrieve Tax Return Data (Raw XML)

Retrieve Transformed Tax Return

(PDF)

• MV&S promotes a business perspective around potential shared services

• Service orientation drives efficiencies and reuse across the Enterprise

• The Common Services Framework will be refined based on lessons learned from MV&S and initial services deployments

Co

mm

on

Services F

ramew

ork

Candidate Services

IRS Enterprise Architecture 11

As Our SOA Strategy Matures We Will Transition From Opportunistic, Project Level, to Enterprise Level Common Business Services

High

Low

HighLow

Sco

pe

Time/Maturity

Enterprise

Opportunistic

Assign PDC Case Legacy Access Provider (LAP) Services

Case Assignment

Case Folder

ReturnRetrieval Tax

Computation

Integration

Account Management Services

Individual Customer Account Services (ICAS)

Get Address Of Record

InfrastructureStorage/DR

SecurityIdentity Management

Send Submission

Send State Submission IRS Acknowledgement

Taxpayer Account Data Services

IRS Enterprise Architecture 12

Common Services Identification and Deployment Require a Broad Based IRS Governance Process

• Impacts People, Process & Technology

• Services are Delivered Through Projects

• Life Cycle Processes are supported by Services Repository

• Development of Services is Guided by IRS Enterprise Life Cycle (ELC)

• Communication & Training are required for people supporting each of the enterprise processes in the lifecycle.

Starts with MV&S business process

requirements

Design service

Testservice

Use/ReuseService

DeployService

Operate / Monitor

Constructservice

Architecturalreview

Measure

Service Repository

Iterative Common Services Life Cycle Service

Requirements

• Governance Organization – Manage & monitor service agreements• Governance Tooling – Not like traditional software development

IRS Enterprise Architecture 13

SOA Platform & Tooling Architectural View – Backbone of a Future Distributed and Interoperable Computing Environment

Business Innovation & Optimization Services

De

ve

lop

me

nt

& T

es

t S

erv

ice

s

Presentation & Portal Services Business Process Services

Information Management Services

Partner Services Application Services Integration & Broker Services

ESB Topology

IT S

erv

ice

Ma

na

ge

me

nt

Data, Infrastructure and Security Services

Current Implementation State, Gaps Exist That Will Need to be Filled

IRS Enterprise Architecture 14

SOA Road Map Implementation Strategy

• Transformation occurs in phases over the next five+ years• Each phase increases scope of adoption and process maturity

Project-centric, Opportunistic Domain-wide, Strategic Enterprise Business TransformationScope of SOA

Adoption

Repeatable Formally Defined Managed OptimizedMaturity Level

MeF, F&PC AMS, CADE, ICAS All Projects in Release Plan

1 - Adoption 2 - Integration 3 - Enterprise 4 - OptimizedPhase

2007 2008 2009 2010 20112006Timeline

Key

Capabilities

• Progress occurs through projects• SOA deployments will be in waves that integrate services, portal and data strategies

IRS Enterprise Architecture 15

In Summary

• Sell the business value of SOA- not SOA• Start with process decomposition to identify common services• Demonstrate success incrementally with a focus on high visibility lower risk• You need exceptional technical talent who have been there and done that• Focus your activities around common services, governance, and platform and

tooling• Weave SOA into the fabric of your enterprise lifecycle management systems• Take a non intrusive and politically astute approach………..

Good Luck and Thank You.