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Slide 1: Business Consulting Services Nuernberger Kreis – Softwaretag: 7. May 2004 Methodology: From Component Business Model to Service Oriented Architecture Karin Duermeyer Distinguished Engineer & IBM Academy of Technology Member IBM Web Services Technology Council Member IBM Global Services © Copyright IBM Corporation 2004
Slide 2: Business Consulting Services Agenda  Component Business Modeling - Motivation Definitions, Metamodel Industry CBM Maps: Define the logical path for change Operating Environment Architecture -  From Component Business Model to Service Oriented Architecture - What is SOA Roads to SOA SOMA: Service oriented Method and Architecture SIMM: Service Integration Maturity Model  Service Offerings, Products and Education are available 2 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 3: Business Consulting Services Greater Flexibility Required From Business Models And The Supporting IT Architecture Flexible Business Transformation Business Process Outsourcing Mergers, Acquisitions & Divestitures Requires Composable Processes (CBM) Component Business Modeling Flexible IT On demand Operating Environment Service Oriented Architecture (SOA) Development Software Development Infrastructure Integration Management Infrastructure Management Composable Services (SOA) 3 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 4: Business Consulting Services To address our clients’ business issues, we developed an approach that effectively links business and technology Companies Business Model Business Model Component Business Model (CBM) POV Business Issue Business Process CBM + Operating Environment Integrated Response Technology Operating Environment Infrastructure 4 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 5: Business Consulting Services We have defined Component Business Maps for multiple industries. They are used to frame many different questions What are the priorities for Technology? Where are the core and noncore activities? Planning & Analysis What shape is my organisation in the future? Customer Accounting Financial Management Customer Accounting Policies Risk Management Business Administration Product Management Sector Marketing Plans Acquisitions Customer Portfolio Management Customer Portfolio and Analysis Customer Service and Sales Product Operations Business Planning Customer Servicing and Sales Planning Product Operations Management Business Architecture Managing Products Acquisition Planning and Oversight Credit and Risk Management Business Unit Administration Checks & Controls Manage Alliance Relationships Policy & Procedure Manuals Application Processing Product Development and Deployment Securitization Case Handling Administration Operations Reconciliations Financial Control Customer Behavior Decisioning Service/ Sales Administration HR Management Sales and CrossSell Customer Profile Financial Capture Payments Authorizations Billing Treasury Administer Alliance SLAs Target Lists (Prospecting) Marketing Where are the key programmes impacting? Audit/ QA/ Legal Financial Consolidation Execution Facilities Market Research Develop and Operate Systems Product Directory Campaign Execution Contact/ Event History Servicing (Dialogue Handler) Product Processing Customer Account Rewards Management Collections and Recovery Correspondence Accounting and G/L Smart Routing Inventory Management Merchant Operations What are the current business priorities Who do I partner with to deliver the end to end value? 5 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 6: Business Consulting Services A component business map is a tabular overview of a business A Business Component is a part of an enterprise that has the potential to operate autonomously, for example, as a separate company, or as part of another company. Business Administration New Business Development Columns are Business Competencies, defined as large business areas with characteristic skills and capabilities, for example, product development or supply chain. Relationship Management Servicing & Sales Product Fulfillment Financial Control and Accounting An Operational Level characterises the scope of decision making. The three levels used in CBM are direct, control and execute.  Direct is about strategy, overall direction and policy.  Control is about monitoring, managing exceptions and tactical decision making  Execute is about doing the work Direct Business Planning Sector Planning Sector Management Product Management Product Directory Account Planning Relationship Management Credit Assessment Sales Planning Fulfillment Planning Portfolio Planning Control Business Unit Tracking Staff Appraisals Compliance Sales Management Fulfillment Planning Reconciliation Staff Administration Execute Production Administration Sales Product Fulfillment Customer Accounts Credit Administration Marketing Campaigns Customer Dialogue Contact Routing Document Management General Ledger 6 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 7: Business Consulting Services Example component business model for the credit card industry: 7 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 8: Business Consulting Services A Business Component is a part of an enterprise that has the potential to operate semi-independently, as a separate company, or as part of another company.  A business component - Services Used Component Name Market Segment Planning Description To analyze markets and derive targets - Services Offered - Has discrete boundaries, defined by the services that it uses as inputs and offers as outputs Includes the resources, people, technology and know-how necessary to deliver some value Is ‘black box’ in that the users don’t need to see the business activities that are inside Can be (mostly) neatly separated—provides logical ‘cleave points’ Can have attributes, such as cost, revenue, importance to the business, etc.  Business services - are goods or services that a business component offers to other business components and/or to external parties 8 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 9: Business Consulting Services A business process can be represented as a collaboration among business components. New product idea Or Competitive business need Component Name Business Strategy Description Define business strategy To “Product Management” business component Business Plans Product Portfolio Updates Component Name Market Segment Planning Description To analyze segments and derive targets Product Portfolio Updates Market Events Tracking Models & Targets Component Name Segment Tracking Description Track target segments 9 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 10: Business Consulting Services An initial metamodel of CBM has been defined to strengthen further development. 1 Business 1 contains 1 contains 0..n 0..n Business Process 0..n Operational Level 1 Business Competency 1 consists of 0..n 0..n classifies 0..n 0..n classifies 0..1 0..n Business Component may be built from Business Activity strategy enabled by 0..n 0..n 1 uses provides 0..n 0..n evaluated by Evaluation Criterion Strategic Capability 0..n Business Service 10 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 11: Business Consulting Services Key “Services” provided by a Business Component can be leveraged by multiple Business Processes that cut across the enterprise. Loan Origination and Servicing Portfolio/Risk Management Reconciliatio n and Settlements Customer Relationship Management Accounting and Audit Finance Planning & Analysis Credit Risk Management Portfolio Risk Management Bank Policies and Procedures Market Risk Management Research Analytics Operational Control Compliance Guidelines & Control Budgeting & Forecasting Accept Loan Application Loan Underwriting Check Loan Application Status Monitor & Control Pipeline Management Collateral Analysis Trading Management Portfolio Management and Hedging Credit Analysis Operations & Execution Marketing and Syndication Trade Execution Collateral Management Customer Relationship Loan Portfolio Acquisition Loan Underwriting Loan Servicing & Administration Reconciliation and Control Treasury Management Regulatory & Compliance Management Reporting Pricing Cash Control Loan Funding & Setup Document Management Financial Reporting GL & Accounting  In this example, Loan Underwriting business component, provides two Business Services namely Accept_Loan_Application & Check_Loan_ Application_Status.  Both of these Services can be leveraged by multiple variations of Loan_Application_Submission process executed by various actors including Call Center Operators, Customers who are performing Self-Service on the Web, or Data entry professionals who scan and OCR loan applications submitted by snail mail. 11 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 12: Business Consulting Services According to the strategic goals, different attribution should be applied Concept of Component Attribution Business Component “Heat Maps” Business Administration Asset Mgmt & Product Development Sales & Channel Management Marketing New Business Customer Service Business Activity Level Planning Analysis & Refinement Business Planning Manufacturing Planning Distribution Planning Operations Planning Finance Accounting &Finance Planning Financial Control Asset & Liability Managemen t Claims processing Inforce Processing Trading Funds Management General Ledger Treasury Accounting &Finance Planning Financial Control Asset & Liability Managemen Trading t Claims processing Inforce Processing Funds Management Accounting &Finance Planning Financial Control Asset & Liability Managemen Trading t Claims processing Inforce Processing Funds Management Finance Finance The Value Chain Goal: Quick financial wins Monitor and Manage Human Resource Managemen t Manual Advisor/ Intermediary Administratio Advisor/ n Intermediar y Setup Regulatory Reporting Training Council Services Systems & Facilities Helpdesk Business Component Model Business Customer Customer Product Administratio Acquisitions Portfolio Service and Management n Management Sales Planning & Analysis Business Planning Business Architecture Business Unit Administration Manage Alliance Relationships Policy & Procedure Manuals  Value driver  Capabilities  Redundancies Alliance Management Campaign Managemen t Product Management End-customer marketing Campaign Execution Channel Managemen t EndConsumer Sales Service Management Operational Control Contact Servicing Customer Profile Product Developmen t Contract & Policy Setup Execution and (S)TP Conservation Wholesales Product Profile Implementatio n Sales Support Fees & Commission s Contract Administratio Intelligent n Routing Contact Repository Check Correspondenc Processing e Business Administration Product Operations Customer Financial Accounting Management Risk Management Sector Marketing Plans Managing Products Customer Portfolio Analysis Credit and Risk Management Application Processing Customer Servicing and Sales Planning Product Operations Management Customer Accounting Policies Planning and Oversight Checks & Controls Case Handling Service/ Sales Administration Sales and Cross-Sell Securitization Operations Administration Reconciliations Financial Control Treasury Financial Consolidation HR Management Administer Alliance SLAs Audit/ QA/ Legal Product Development and Deployment Goal: Focus on Core competencies  Strategic values  Differentiating activities Business Activity Level Planning Analysis & Refinem ent Business Planning Manufacturing Planning Distribution Planning Operations Planning Credit Decisioning M onitor and M anage Human Resource Managemen t Manual Authorizations Financial Capture Billing Payments Alliance Management Campaign Managemen t Product Management t Channel Managemen Service Management Operational Control Contact Servicing Target Lists Marketing Customer Profile Execution Facilities Market Research Develop and Operate Systems Accounting and G/L Product Directory Campaign Execution Contact/Event History Correspondence Servicing Product Processing Rewards Management Inventory Management Customer Account Collections and Recovery Execution and (S)TP Advisor/ End Intermediary End customer Consumer Administratio marketing Sales nAdvisor/ Product Intermediar Developmen y Setup Campaign t Regulatory Execution Reporting Conservation Training Council Services Systems & Facilities Helpdesk Product Profile Sales Implementatio Support s Wholesales Contract & Policy Setup Customer Profile Smart Routing Merchant Operations n Fees & Commission e Contract Administratio General Intelligent n Ledger Routing Contact Repository Check Correspondenc Processing Customer Service New Business The Value Chain Business Administration Marketing Business Activity Level Goal: Strategic Flexibility  External relationships  Impact on Time-to-market Source: IBM Institute for Business Value 12 CBM-SOA_KD(05052004).ppt | 5. May 2004 Planning Analysis & Refinem ent Business Planning Manufacturing Planning Distribution Planning Operations Planning M onitor and M anage Human Resource Managemen t Manual Advisor/ Intermediary Administratio nAdvisor/ Intermediar y Setup Regulatory Reporting Training Council Services Systems & Facilities Helpdesk Alliance Management Campaign Managemen Product Management t Channel Managemen Service Management Operational Control Contact Servicing Product Developmen End customer marketing Campaign Execution End Consumer Sales Contract & Policy Setup Execution and (S)TP Conservation Wholesales Customer Profile n Product Profile Sales Implementatio Support s Fees & Commission e Contract Administratio General Intelligent n Ledger Routing Contact Repository Check Correspondenc Processing Customer Service New Business The Value Chain © Copyright IBM Corporation 2004 Contract Administration Asset Mgmt & Product Development Sales & Channel Management Contract Administration Asset Mgmt & Product Development Sales & Channel Management Marketing Contract Administration
Slide 13: Business Consulting Services Example path for change: Consumer goods industry Product Management Customer Relationship Customer Relationship Strategy Customer Relationship Planning Assessing Customer Satisfaction Customer Insights Manufacturing Manufacturing Strategy Supplier Relationship Management Supply Chain & Distribution Supply Chain Strategy Business Administration Corporate Strategy Corporate Planning Alliance Management Transformational View Seek external provider / external utility Consolidate and/ or create internal utility Integrate and redesign No action Category/Brand Strategy Strategy Category/Brand Planning Brand P&L Management Supply Chain Planning Production and Materials Planning Distribution Oversight Manufacturing Oversight In-bound Logistics Out-bound Logistics Line of Business Planning Business Performance Management External Market Analysis Organization and Process Design Legal and Regulatory Compliance Treasury and Risk Management Tactics Matching Supply and Demand Marketing Development & Effectiveness Account Management Product Ideation Concept/Product Testing Product Development Supplier Control Make Products Value-Added Services Customer Account Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Assemble/Pkg. Products Plant Inventory Management Manufacturing Procurement Distribution Center Operations Accounting and GL Indirect Procurement Facilities and Equipment Management HR Administration Execution Product Management Marketing Execution Consumer Service Product Directory Transportation Resources En route Inventory Management IT Systems and Operations 13 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 14: Business Consulting Services We have defined a draft version of the Component Business Maps for 17 industries. They are used as references in customer engagements Life Sciences (Pharma) Electronics Banking Financial Markets Telecommunication Automotive Retail Consumer Packaged Goods Media & Entertainment Insurance Travel & Transportation Government (Steuerwesen) Healthcare Education Aerospace & Defense Chemical & Petroleum Utilities 14 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004 We have used the CBM Maps in engagements by: - Allianz - Dresdener - Nestle - Züricher Kantonalbank
Slide 15: Business Consulting Services There are several architectural building blocks that need to be provided to establish an On Demand operation environment (ODOE) Application Services Component Business Services Business Service User Access Services User Interaction Services U S E R Business Process Choreo graphy Services Business Function Services Common Services Information Management Services Information Integration Information Access Analytics Adaptation Interaction Connectivity Collaboration Presentation Choreography Business Rules Packaged Applications Custom Applications Reporting Acquired Services Personalization Business Service … … … Mediation, Messaging, Events … … Metadata … B U S I N E S S Business Performance Management Enterprise Service Bus Business Connections Business Service Metering Services Utility Business Services Rating Billing Peering Settlement … Data Placement Service Level Automation and Orchestration Services Problem Management Business Service Server Storage Security Services Workload Services Configuration Services Availability Services … … Resource Virtualization Services Network Resource Mapping Information Infrastructure Services Source: IBM BCS, Technology as the Catalyst: “On Demand Technology Architecture Overview”, September 2003 15 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 16: Business Consulting Services The CBM and ODOE has been connect to define a logical path for change Application Services Component Business Services Business Service User Access Services User Interaction Services U S E R Business Process Choreo graphy Services Business Function Services Common Services Reporting Information Management Services Information Integration Information Access Analytics Adaptation Interaction Connectivity Collaboration Presentation Choreography Business Rules Packaged Applications Custom Applications Acquired Services Personalization Business Service … … … Mediation, Messaging, Events … … Metadata …  Start with a “hot” component area – product identification  Define a model (e.g. with WBI Modeler) of the component to be transformed  Understand the underlying applications infrastructure and how it needs to change  Identify and design the required supporting infrastructure 16 B U S I N E S S Business Performance Management Enterprise Service Bus Business Connections Business Service Metering Services Utility Business Services Rating Billing Peering Settlement … Data Placement Service Level Automation and Orchestration Services Problem Management Business Service Server Storage Security Services Workload Services Configuration Services Availability Services … … Resource Virtualization Services Network Resource Mapping Information Infrastructure Services CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 17: Business Consulting Services Agenda  Component Business Modeling - Motivation Definitions, Metamodel Industry CBM Maps: Define the logical path for change Operating Environment Architecture -  From Component Business Model to Service Oriented Architecture - What is SOA Roads to SOA SOMA: Service oriented Method and Architecture SIMM: Service Integration Maturity Model  Service Offerings, Products and Education are available 17 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 18: Business Consulting Services Service-oriented Architecture (SOA) is supported by a service oriented infrastructure. SOA can mean slightly different things, but definitions are converging… SOA can be expressed as  a set of architectural principles which address characteristics such as modularity, encapsulation, loose coupling, separation of concerns, composable and single implementation.  an architectural style which requires a service provider, requestor and a service description.  as a programming model complete with standards, tools, methods and technologies such as web services.  Or, a set of business aligned I/T services that support an organization’s business process goals and objectives ……using interface-based service descriptions that decouple the provider and consumer through open standards and protocols… 18 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 19: Business Consulting Services Elements Of An SOA Examples Expose legacy CICS daily trading results data as a service BUILD Creating services from new or existing application functionality Making services available for use Using services individually or in combination DEPLOY Make the service available through an application server USE Utilize service to incorporate CICS data as part of an executive dashboard User Authentication and management of Service Transactions © Copyright IBM Corporation 2004 MANAGED & SECURE ENVIRONMENT 19 CBM-SOA_KD(05052004).ppt | 5. May 2004
Slide 20: Business Consulting Services IBM is Working with Customers at All Levels of SOA 4 Adoption CBM Entry Points Based On Business Priorities Broad transformation of existing business models or the deployment of new business models On Demand Business Transformation 3 Integrating services across multiple 2 applications inside and outside the enterprise for a business objective Service Oriented Integration of Business Functions Creating services from tasks 1 contained in new or existing applications 20 Implementing Individual Web Services CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004 Business Value An architected implementation enabling integration across business functions throughout an enterprise Enterprise Wide IT Transformation
Slide 21: Business Consulting Services An SOA Requires Multiple levels in its architecture Presentation Architecture Business Process Architecture 5 Portlets 4 6 7 Process Choreography Integration Architecture (Service Integration Bus) 3 QoS Management & Monitoring Service-Oriented Architecture Composite Services 2 Component-based Architecture Enterprise Components 1 Business Intelligence CRM, ERP CICS/COBOL Mainframe IBM AS/400 Object-oriented Operational Systems 21 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 22: Business Consulting Services The SOA architecture Application Architecture Business Process Architecture Service Architecture Component Architecture 22 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 23: Business Consulting Services Roads to Service-Oriented Architecture Top Down Modeling to Identify Business Services Application Renovation for Service Exposure Wrap Legacy Systems or Packages by Service Exposure Model Driven Development with Future Intent of Service Exposure © 2004 IBM Corporation 23 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 24: Business Consulting Services Service-oriented Method and Architecture (SOMA) CBM Business Vision SOMA combines Business Vision with Modern and Legacy Assets Service-oriented Architecture To achieve an SOA for On-demand 1 Model-driven: “Let the tools do the walking” WBI-Modeler WSAD-IE Modernization Workbench 24 Top-down: business-driven Process, event and variation analysis 3 Business Services linked To Business Goals 4 Specify IT Components, their services and flow 5 Map components & Services to best technology, Meeting QoS needs; Assemble worklfow 2 Bottom-up: Leverage Legacy thru understanding and transformation Legacy CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 25: Business Consulting Services Service Oriented Method & Architecture (SOMA) takes the initial partitioning of functional areas from CBM and uses subsequent steps to map to an SOA. SOMA is identifying business aligned services that leverage legacy and are tied to business goals and choosing appropriate product and technology mappings Business Administration Product Management Sector Marketing Plans Acquisitions Customer Portfolio Management Customer Portfolio and Analysis Customer Service and Sales Product Operations Customer Accounting Financial Management Business Planning Planning & Analysis Customer Servicing and Sales Planning Product Operations Management Customer Accounting Policies Risk Management Fill gap Business Architecture Managing Products Acquisition Planning and Oversight Credit and Risk Management Business Unit Administration Checks & Controls Manage Alliance Relationships Policy & Procedure Manuals Application Processing Product Development and Deployment Securitization Case Handling Administration Operations Reconciliations Financial Control Customer Behavior Decisioning HR Management Service/ Sales Administration Administer Alliance SLAs Audit/ QA/ Legal Marketing Target Lists (Prospecting) Sales and CrossSell Customer Profile Authorizations Billing Treasury SOMA 1 Domain Decomposition Subsystem Analysis Flow Composition SOA Financial Capture Payments Financial Consolidation Execution Facilities Market Research Develop and Operate Systems Product Directory Campaign Execution Contact/ Event History Servicing (Dialogue Handler) Product Processing Customer Account Rewards Management Collections and Recovery Correspondence Accounting and G/L Smart Routing Inventory Management Merchant Operations 2 3 4 5 6 7 Goal Model Creation (Goal-Service Graphs ) Service Allocation Components Specification Flow Allocation Internal/External Flow Specification Structuring Enterprise Components and Process Modules Technology Realization Mapping Leverage Assets 25 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 26: Business Consulting Services Service Oriented Method & Architecture Combines top-down and bottom-up approaches to achieve an SOA  Top-down is the business driven part providing a holistic analysis driven by business needs  A blueprint for enterprise component services is created that is then realized by a combination of existing legacy functionality and new development efforts Domain Decomposition Subsystem Analysis Flow Composition (Goal-Service Graphs ) Goal Model Creation  Goals, processes, rules and services are taken into account Bottom-up part of the approach uses a characterization of the existing systems and components and how they map back to business function to help outline the assets available to realize each of the components. Service Allocation Components Specification Flow Allocation Internal/External Event And Flow Message Spec Specification  Structuring Enterprise Components and Process Modules Technology Realization Mapping Leverage Assets 26 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 27: Business Consulting Services SOMA is a Process with Seven Major Steps 1 Domain Decomposition Subsystem Analysis Flow Composition Business eco-system or value chain; Functional areas of the business Description; Decompose domain into subsystems (Business Context) Analyze subsystems into business and Technology components and services And compose the flow for subset of process Determine business goals, sub-goals and Services required to fulfill objectives Assign services and flow to components; Refactor components as needed; Extricate logic and rules; partition (Legacy Code Assessment) Specify details of components and Services and flows Use design and architectural patterns and Best-practices to design internals of service Components (Responsibility Matrix) Build vs. Buy vs. Subscribe vs. Transform Vs. Wrap; how will I realize my services Component functionality? (Migration Matrix) Leverage existing assets : legacy, package Etc. © Copyright IBM Corporation 2004 2 3 Goal Model Creation (Goal-Service Graphs ) 4 5 Service Allocation Components Specification Flow Allocation Internal/External Flow Specification 6 7 Structuring Enterprise Components and Process Modules Technology Realization Mapping Leverage Assets 27 CBM-SOA_KD(05052004).ppt | 5. May 2004
Slide 28: Business Consulting Services SOMA flow in a typical project Current Business and Technical Architecture Decompose Business Domain 1a Identify Subsystems, 2 Components, use cases Create Business Goal/ Service Model 3 Analyze Existing Assets Componentize Legacy Systems 1b Bottom-up Top-down Specify Enterprise Components Structure Enterprise Components using Patterns Allocate Services to Coarse-grained Components 4 5 6 7 Service Repository Leverage Component Service repository Technology Realization Mapping: Map Components, Services to Implementation Future Enterprise and Application Architecture 28 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 29: Business Consulting Services Use Service Integration Maturity Model (SIMM) Process to map CBM to SOMA Business Administration Product Management Sector Marketing Plans Acquisitions Customer Portfolio Management Customer Portfolio and Analysis Customer Service and Sales Product Operations Customer Accounting Financial Management Business Planning Planning & Analysis Customer Servicing and Sales Planning Product Operations Management Customer Accounting Policies Risk Management Fill gap Business Architecture Managing Products Acquisition Planning and Oversight Credit and Risk Management Business Unit Administration Checks & Controls Manage Alliance Relationships Policy & Procedure Manuals Application Processing Product Development and Deployment Securitization Case Handling Administration Operations Reconciliations Financial Control Customer Behavior Decisioning HR Management Service/ Sales Administration Administer Alliance SLAs Audit/ QA/ Legal Marketing Target Lists (Prospecting) Sales and CrossSell Customer Profile Authorizations Billing Treasury SOMA 1 Domain Decomposition Subsystem Analysis Flow Composition SOA Financial Capture Payments Financial Consolidation Execution Facilities Market Research Develop and Operate Systems Product Directory Campaign Execution Contact/ Event History Servicing (Dialogue Handler) Product Processing Customer Account Rewards Management Collections and Recovery Correspondence Accounting and G/L Smart Routing Inventory Management Merchant Operations 2 3 4 5 6 7 Goal Model Creation (Goal-Service Graphs ) Service Allocation Components Specification Flow Allocation Internal/External Flow Specification Structuring Enterprise Components and Process Modules Technology Realization Mapping Leverage Assets 29 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 30: Business Consulting Services Levels of Service-oriented Computing Maturity Service Oriented Computing Interface Based Computing 30 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 31: Business Consulting Services Levels of Service-oriented Computing Maturity  Stage 1: Service Identification - Integration and Wrapping Service Description Componentization of existing functionality and integration with new component-based technologies Repository of common services and components Reusability within the line of business Business architecture and business modeling Orchestration and choreography of services Reusability at the enterprise level Autonomic Virtualization Utility Services Dynamically re-configurable © Copyright IBM Corporation 2004  Stage 2: Line of Business Services -  Stage 3: Enterprise Wide Services -  Stage 4: Services on Request 31 CBM-SOA_KD(05052004).ppt | 5. May 2004
Slide 32: Business Consulting Services Services Integration Maturity Model (SIMM) EAI Stove Top Applications Integrated Applications Component Applications Service Oriented Applications Service Orchestration Virtualized Services Dynamically Configurable Services Configurable Business Processes Configurable Business Processes Product Line 1 Line Specific Silos Specific and Shared Non Redundant Shared Services Coordinated Services Autonomous Infrastructure Product Line 2 Silos Specific and Shared Non Redundant Shared Services Coordinated Services Autonomous Infrastructure Product Line 3 Silos Silos Specific and Shared Non Redundant Shared Services Coordinated Services Autonomous Infrastructure Configurable Business Processes Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 32 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 33: Business Consulting Services Description of Levels of Maturity Dynamically Configurable Services Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Just-in-time integration and composition of services; Transaction-based billing; End-to-end extended enterprise integration; outsourcing transparent (outsourcing “interface”) A utility-based model; usage billing with variable price structure; pay-as-you-go On demand versus product purchase Business Process Orchestration with BPEL; Call/Invoke services provided by one component and required by the next; Externalize services for extra-organizational characteristics Identify / specify and build components and their services across product lines; build the provider side; web services when many suppliers need access Free up I/T spending on Maintenance for Enhancements; Consolidation/Migration, Web Enablement, Componentization, Wrapping with WS; Workflow; Coordinate Information Flow Harmonize information Flow through message-oriented EAI approaches; leverage legacy systems and Functions through legacy integration & transformation Silos, batch, Applications stove-piped to one business line Lots of redundancy; very low or non-existent reuse or common services. Information interchange a major challenge © Copyright IBM Corporation 2004 Virtualized Services Service Orchestration Service Oriented Applications Component Applications Integrated Applications Stove Top Applications 33 CBM-SOA_KD(05052004).ppt | 5. May 2004
Slide 34: Business Consulting Services Recent work has identified the need for intermediate step(s) in moving from a business component to a service oriented architecture Feedback from monitoring & management Consumer Relationship Customer Relationship Manufacturing Supply Chain & Distribution Business Administration Corporate Strategy Supply Chain Strategy Corporate Planning Supplier Relationship Management Supply Chain Planning Line of Business Planning Production and Materials Planning Distribution Oversight Business Performance Management External Market Analysis Customer Insights Manufacturing Oversight Organization and Process Design Account Management Product Ideation Make Products Concept/Product Testing Product Development Value-Added Services Customer Account Servicing Retail Marketing Execution Marketing Execution Consumer Service Product Directory In-store Inventory Mgmt Manufacturing Procurement Customer Directory En route Inventory Management Assemble/Pkg. Products Distribution Center Operations Accounting and GL Indirect Procurement Plant Inventory Management Facilities and Equipment Management HR Administration IT Systems and Operations Treasury and Risk Management Supplier Control In-bound Logistics Out-bound Logistics Legal and Regulatory Compliance Alliance Management Category/Brand Strategy Customer Relationship Strategy Manufacturing Strategy Strategy Category/Brand Planning Customer Relationship Planning Brand P&L Management Matching Supply and Demand Marketing Development & Effectiveness Assessing Customer Satisfaction Tactics 1 Validate Static CBM 2 Create Dynamic CBM 3 Execution Product Management Transportation Resources Create Business Process Model 4 Create Solution Architecture 5 Deploy Solution ? Coarse-grained Services Fine-grained Services SOA Elaboration Target Business Services identified Collaborations, Activity Interactions, KPIs, Inputs, Outputs, Events, Triggers, & QoS data identified Business Process Definitions Flows & Services Portfolio created Conceptual & Specification level Solution Architecture created Currently the 5 step process begins with the validation of the static model. It is possible that once CBM is formalized and operationalized, this step may not be necessary. 34 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 35: Business Consulting Services Agenda  Component Business Modeling - Motivation Definitions, Metamodel Industry CBM Maps: Define the logical path for change Operating Environment Architecture -  From Component Business Model to Service Oriented Architecture - What is SOA Roads to SOA SOMA: Service oriented Method and Architecture SIMM: Service Integration Maturity Model  Service Offerings, Products and Education are available 35 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 36: Business Consulting Services Service Offerings, Products and Education are available: Products IBM WebSphere Business Integration Modeler IBM Rational Rose XDE Education Services IBM Component Business Modeling IBM Application Portfolio Rationalization IBM Assessments for Web Services IBM Architecture & Planning Services for Web Services IBM Strategy & Planning Services for Service Oriented Architecture IBM Assessments for Service Oriented Architecture IBM Application Renovation IBM Application Integration IBM Infrastructure Readiness Assessment IBM Infrastructure Strategy © Copyright IBM Corporation 2004 Build Deploy Use IBM WebSphere Business Integration Message Broker IBM DB2 Information Integrator IBM Lotus Workplaces IBM Tivoli Identity Manager IBM Tivoli Business System Manager IBM Tivoli Monitoring for Business Integration IBM WebSphere Business Integration Monitor Product Specific Training SOA Training Redbooks SOA Roadmap of Best Practices Manage & Secure 36 CBM-SOA_KD(05052004).ppt | 5. May 2004
Slide 37: Business Consulting Services New Educational Offerings  Patterns: Service Oriented Architecture and Web Services  WebSphere Web Services Information Roadmap  Using Web Services for Business Integration  WebSphere Version 5.1 Application Developer 5.1.1 Web Services Handbook  SOA Architect Training – Q3       UNIT 1:Value Sell UNIT 2 Assessment UNIT 3 Design UNIT 4 SOA Technology and Standards UNIT 5 IBM Assets and Resources UNIT 6 Implementation Training IBM Executive Technical Summit on SOA Topics will include:  The Value of the On Demand Operating Environment  Service Oriented Architectures: A Plan for Implementation  Web Services: Speeding up Return On Investment  Industry Roadmaps: Realizing Benefits with Real Customers  Building the Skills Inside and Outside Your Organization 37 CBM-SOA_KD(05052004).ppt | 5. May 2004  SW255 – Basic Web services - Available  SW422 - Advanced Web services – Update  Speed-start Web services Tutorials Updated  Speed-start Web services Technical Briefings  SOA and Web services Zone SOA Roadmap to Best Practices SOA Project Blueprints SOA Reference Architecture Enterprise Solution Templates Organizing for Successful SOA Projects SOA Quality of Service Engagement Definitions and Pain Points Assessment Tools SOA Design Examples         © Copyright IBM Corporation 2004
Slide 38: Business Consulting Services For More Information …  on demand Operating Environment and SOA  http://www.ibm.com/software/info/openenvironment/soa/  SOA and Web services Zone  http://www.ibm.com/developerworks/...  Redbooks  http://publib-b.boulder.ibm.com/Redbooks.nsf/redbooks/  Speed-start Web services  http://www.ibm.com/developerworks/offers/ws-speed-start/ 38 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 39: Business Consulting Services Many thanks for your attention 39 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 40: Business Consulting Services In Financial Services, we are helping clients enable the integration of new channels for self-service and partners for compliance Best Practices in SOA and Web Services in Financial Services Firm Brokerage Description of Initiative  IGS leveraged existing systems and grid technology to provide an integrated client experience in a Service Oriented Architecture Solution Benefits  Shortened time to market  Dramatically reduced processing time  Reduced development and maintenance costs Financial Services  IGS developed a Service Oriented Architecture  Costs reduced by $200M  Most disputes are resolved in one billing cycle to integrate banks and automate a dispute resolution process  IGS developed a Service Oriented architecture to support the banks goal of providing an innovative mix of banking channels  IGS teamed partnered to build a B2B system that automatically converts electronic communications to a HIPAA-compliant format  Lowered development and maintenance costs  Streamlined operations  Increased cross-sell opportunities  Projected savings of $170M in three years  Eliminated need for clearinghouse  Reduced customer service costs Bank Insurance Bank  Overall customer satisfaction improved by 1.6%  IGS partnered to develop a cross-channel  Customer retention up 12% solution for providing a consistent customer experience that captures customer data across  Household checking acquisitions up 19% channels 40 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004
Slide 41: Business Consulting Services Thoughtful coordination is required for appropriate leverage of these various approaches towards a cohesive capability Consumer Relationship Customer Relationship Manufacturing Supply Chain & Distribution Business Administration Corporate Strategy Supply Chain Strategy Corporate Planning Supplier Relationship Management Category/Brand Planning Customer Relationship Planning Production and Materials Planning Distribution Oversight Supply Chain Planning Line of Business Planning Alliance Management Category/Brand Strategy Customer Relationship Strategy Manufacturing Strategy Strategy Brand P&L Management Assessing Customer Satisfaction Business Performance Management External Market Analysis Tactics Matching Supply and Demand Marketing Development & Effectiveness Customer Insights Manufacturing Oversight Organization and Process Design Account Management Product Ideation Supplier Control In-bound Logistics Out-bound Logistics Legal and Regulatory Compliance Treasury and Risk Management Business Transformation Solutions BTS Business Operations Model BOM Make Products Concept/Product Testing Product Development Value-Added Services Customer Account Servicing Retail Marketing Execution Marketing Execution Consumer Service Product Directory In-store Inventory Mgmt Manufacturing Procurement Customer Directory En route Inventory Management Assemble/Pkg. Products Distribution Center Operations Accounting and GL Indirect Procurement Execution Product Management Plant Inventory Management Transportation Resources Facilities and Equipment Management HR Administration IT Systems and Operations ? Research SWG WBI Service Oriented Method & Architecture Modeler IGS SWG 41 CBM-SOA_KD(05052004).ppt | 5. May 2004 © Copyright IBM Corporation 2004