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© 2006 IBM Corporationhttp://www.computants.org/

1.519.702.0311 / +44 20 3014 4113 / +91 9220 537 569

Dom Fernandez Principal [email protected]

Solving Business Problems through Service Oriented Architecture

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© 2006 IBM Corporation

http://www.computants.org/ +91 9220 537 569, [email protected]

Agenda

What issues does your business face?

How can SOA improve your business?

What value is there in SOA based solutions?

How can we help you get started?

73% of Mid-market companies already using Web Services

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What is …..?

… a service?

A repeatable business task – e.g.,

check customer credit; open new

account

… service oriented architecture (SOA)?

An IT architectural style that supports

integrating your business as linked

services

"SOA impacts every aspect of IT and business.”

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Flexibility allows innovation to meet top business challenges

Improve operational efficiency

Reduce administrative costs

Improve customer retention

Improve employee productivity

Improve employee access to information

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Why should you care about SOA for business flexibility?

Businesses need flexibility

Economics: Globalization demands flexibility

– Information: Greater availability

– Operational Efficiency: Productivity

Growth: at the top of the CEO agenda

– Business processes: Changing quickly

Reusable assets: Can cut costs

SOA helps to create flexibility

Bottom line: Flexible business requires flexible IT*Sources: CBDi

Traditional Business*

Today’s World-Class Business*

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Flexible business requires flexible IT

Process to optimize

Creating IT flexibilityIBM SOA Foundation

Skills &Support

Software

Traditional Business

Call Center

Case Study: Customer Order & Fulfillment

CRM Service

ERP System

Call Center

Supplier

Outsourced Shipping, Credit Check

Case Study: Customer Order & Fulfillment

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IBM SOA Foundation

Supports complete lifecycle with a

modular approach

Extends value of your existing investments, regardless of vendor

Scalable; start small and grow as fast as

the business requires

Extensive business and IT standards support; facilitating

greater interoperability & portability

Integrated, open set of software, best practices, and patterns

Software

Skills &Support

This Foundation Provides what you need to get started with SOA

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Deliver trusted information to provide business insight to enable innovation

Enable human and process interaction with consistent levels of service

Achieve greater efficiency and effectiveness with business model innovation

“Pick business processes with pain points that the business clearly recognizes — processes for which the business most clearly needs end-to-end visibility, control, insight, and flexibility”

Business centric SOA starts with top business pains Entry points: People, Process, Information

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And SOA lifecycle is the key to successful projectsEntry points: Reuse, Connectivity

Gather requirementsModel & SimulateDesign

Integrate peopleIntegrate processesIntegrate information

Manage IT resourcesManage servicesMonitor business metrics

DiscoverConstruct & TestCompose

Share & reuse servicesEstablish decision rights Policies, measurement and control for SOA oversight

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SOA helps you solve top business challengesCreating or improving IT solutions by leveraging IBM SOA Foundation

Process

Productivity

People

Customer retention

Information

Access information

Connectivity

Cost reduction

Operational efficiency

Reuse

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SOA Entry Point: Reuse

Improve operational efficiency Taking advantage of information and business tasks provided by others

Reduce errors, cost and time associated with manual processes

Improve satisfaction by interacting real-time with customers and partners

Increase customer loyalty by providing value-add services

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SOA Entry Point: Connectivity

Integrate nearly anything with consistent interfaces across 80+ operating systems

Eliminate errors introduced by re-keying information

Enable IT to be more responsive and flexible to changing business demands

Reuse existing assets and applications

Easily add, remove, and change applications as required

Reduce administrative costs Reduce cycle time, increase throughput and enhance partner interactions

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SOA Entry Point: People

Enhance customer satisfaction through self-service

Improve access to applications and content

Providing customer choice and flexibility

Deliver consistent customer service

Improve customer retention Provide role-based information access for employees, partners & customers

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SOA Entry Point: Process

Integration implemented with flexibility that is easy to adapt as business changes

Leverage existing business critical legacy systems and custom business applications

Improved Productivity and Responsiveness

Improve employee productivity Automate work and make it easier to make improvements

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SOA Entry Point: Information

Lower costs by supporting a single version of a business function

New business opportunities by making existing business functions available to new users or channels

Extend value of existing assets through reuse to deliver new business value

Improve employee access to informationAddress new markets by expanding access to existing applications

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Reduced costs, increased customer satisfaction

600 person lender gets credit reports via Web

Provide vets with 24-hour reliable access; reduced ratio of returned goods

36 person firm extends ordering to Veterinary application via Services

Automated data transfer cut workload, increased revenues

Facilitate realtime donations in 400 person non-profit organization

Expecting to yield a 25% increase in revenue

Collaboration for 20 person eCommerce consulting firm

Radio Frequency Identification package tracking

30% reduction in cost for mishandled packages

SMB Customers gain value through Entry Points

Customer ValueCustomer Example

SVS Veterinary Supplies

Services; reviews loans in 15 minutes

People

Information

Process

Connectivity

Reuse

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23% reduction in resolution time for customer calls; ROI in less than two months

720 employee firm automated application

Loans in hours instead of daysAutomate loan process in 725 person firm from students to lenders

Expecting a 20% increase in customer satisfaction and a 15% increase in new business

adds multichannel eCommerce integrated with backend systems

Increase workload without adding people, with no compromise on service levels

90 person ISV reuses collaboration tools for employees and for customer service People

Information

Process

Connectivity

Reuse

SMB Customers gain value through Entry Points

Customer Value

Reduced costs and made it a great deal easier for travelers at the station

Consolidated view across bus operators; Reuse to see via cell phonesSofia Bus

Station

Customer Example

Vormittag Associates, Inc

750 person ISV

process; Reuse services in call center

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Align Business and IT with SOA Governance

What is SOA Governance?– Decision making rights, measurements, and

controls throughout the lifecycle of services

What is the value of SOA Governance?

– Realize business benefits of SOA

– Mitigate business risk; regain control

– Improved team effectiveness

"IBM's approach aligns with Gartner’s view of SOA governance, and we believe it is likely to be more effective than narrower approaches.”

Gartner, "IBM Takes Another Step Toward Its SOA Governance Vision", Michele Cantara et al, March 28, 2006.

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Why SOA Governance matters

Realize business benefits of SOABusiness process flexibilityImproved time to market

Mitigate business risk and regain controlMaintaining quality of serviceEnsuring consistency of service

Improved team effectiveness Measuring the right things Communicating clearly between

business and IT

Professional investors are willing to pay premiums of 18-26% for stock in firms with high corporate governance.Source: McKinsey Quarterly

"firms with above average IT governance... had more than 20% higher profits than firms with poor governance following the same strategy"

Source: Peter Weill and Jeanne W. Ross, Harvard Business School Press 2004

"Effective IT Governance is the single most important predictor of value an organization generates from IT.” Source: Peter Weill, MIT Sloan School of Management’s Center for Information Systems Research

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Business Services ecosystem announcement highlightsIndustry specific assets and expertise from Business Partners and IBM

SOA Business Catalog

– Contains SOA Specialty Partner and IBM content

– Promotes, facilitates, and enables the ecosystem

– Total Assets – 3110

• Partners – 62%• IBM – 38%

– 12,000 Downloads

Industry-specific business services

– Healthcare and Insurance available now

– Banking (payments) available 4Q

Global Business Solution Center

– Capturing industry-specific best practices for global delivery

Business Partner SOA Industry Solutions

– "Ready for SOA" mark

71% from

partners

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Web Services are a good start…

Business applications and their interfaces become reusable

Decouples the interfaces from the business applications

The number and complexity of the interfaces is reduced

Rich business abstractions describe the application interface

But separate connection points still leaving bloated interfaces ….

Turn this … …into this (web services).

= Interface

Service

= Application

Service Service Service


= Interface = Service

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The Enterprise Service Bus shrinks those interfaces further

RESULT Greater Business Responsiveness

Allows for dynamic selection, substitution, and matching

Enables you to find both the applications and the interfaces for re-use

Decouples the point-to-point connections from the interfaces

Enables more flexible coupling and decoupling of the applications

Turn this (web services)… …into this (SOA)

Enterprise Service Bus

Service Service Service Service


= Interface = Service

Service Service Service Service


= Service= Interface

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Why us for SOA?

•Gartner leaders’ quadrant

•100’s of pre-built portlets ready for SOA dashboards

•2,500+ Channel Partners & Solutions

•3000+ SOA assets for BPM

•500 industry specific process models

•Best Enterprise Information Integration (Intelligent Enterprise Reader’s Choice Awards)

•15K practitioners, expected to grow by 65% next three years

•Potential savings of 2x-4x vs. custom built or FTP•The market leaders in extending asset value for customers•87K+ customers for connectivity & reuse offerings

•Over $1B/yr invested in SOA•SOA consultants, architects and IT specialists •Leadership in open standards •300+ SOA-related patents

“BPM from IBM leads in Market share”

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SMB References

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Take Action NowEncourage innovation with a focused SOA project

Contact us, an IBM Business Partner to help prove your ROI !

1. Understand the value of SOA It’s not just Web Services It’s not just technology, but joining technology

with business insight and thought leadership

2. Select your top business challenge and your entry point (Reuse, Connectivity, People, Process, Information)

3. See the related Web cast for your top business challenge

4. Conduct an SOA workshop to develop your plan and determine ROI

“While deploying technology is certainly key to a successful

SOA integration, it is the maximizing of the people,

process and information elements that are truly core

to the SOA process.” Judith Hurwitz

President, Hurwitz & Assoc.

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