Business Driven Development for Service-Oriented Architectures

Business Driven Development for Service-Oriented Architectures

Agenda • Why SOA? • What is SOA? • SOA and the IBM Rational Software Development Platform • Summary

What’s on the minds of 450 of the world’s leading CEOs? CEO needs CIO challenges • Revenue growth with cost containment • Key competency: responsiveness • Critical success factor:enable effectiveness of people and processes • 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 Source: CEO Study of 456 WW CEOs, IBM Corp. 2004 Source: Operating Environment Market Drivers Study, IBM Corp. 2004

… Increase customer satisfaction Dassault Aviation reduced concept-to-runway development time by 30% British Petroleum decreased user-provisioning time from 5 days to 10 minutes Consistent imperatives …. … Grow faster • Bekins, a moving company, increased revenue by $75M through integration with business partners to serve a new market • PineBank increased customer traffic by 300% and revenues by $8M Flexibility … Spend less • Kookmin Bank should save $250 million from reduction of duplicate processes • Volkswagen realized a 20% productivity gain Efficiency Responsiveness

Business flexibility depends on IT flexibility “Today’s IT architectures, arcane as they may be, are the biggest roadblocks most companies face when making strategic moves.” –McKinsey “Flexible IT, Better Strategy” Why are today’s architectures roadblocks? • Complexity • Monolithic and silo’d applications • Hidden interfaces • Custom coded connections • Not designed for change Actual application architecture for a consumer electronics company

How do I optimize my procurement processes? Change And Improvement Have Been Daunting Traditional Process Implementations Are Expensive And Slow To Change

Service Oriented Architecture: the blueprint for change “Service-oriented architecture deployments are increasing and becoming a mainstream architectural model for developing services, applications and infrastructures.” “Effective Web Services and SOBAs Require Management” Frank Kenney, Gartner September 28, 2004 Why SOA? • Flexibility • Facilitates re-use of existing applications • Supports effective business process implementations • Designed for change Aligns Business and IT goals to grow revenue and contain costs

Evolving Service Orientations vs. Traditional integration Service-Oriented Architecture • Many technology-aware bridges • Complex and expensive to maintain • Single platform-neutral standard • Simplifies and strengthens integration efforts

Service Oriented Architecture • SOA is an approach to IT that builds business processes from reusable component modules or "services" that are independent of applications and the computing platforms on which they run. • Software assets become building blocks that can be reused in developing other applications • Focus is on application assembly rather than implementation details • Can be used internally to create new applications out of existing components • Can be used externally to integrate with applications outside of the enterprise

Division Need for Flexible Business Process

Customer Need for Flexible Business Process Division Change: Customer Order Entry

SharedService Need for Flexible Business Process Customer Division Change: Shared Service – Marketing, Billing, Receivables

Supplier Need for Flexible Business Process Customer Division SharedService Change: Supplier Handles Inventory (VMI)

Outsourced Need for Flexible Business Process Customer Division SharedService Supplier Supplier Change: Shipping by FedEx, DHL, or UPS

Need for Flexible Business Process Customer Division SharedService Supplier Outsourced Change: Collections Outsourced

Need for Flexible Business Process Customer • Order to Cash Process Division SharedService Supplier Outsourced Change: Process Optimization

Customer Division SharedService Supplier Outsourced SOA – Why is IT the choke point for innovation? • Monolithic applications can’t be reused • Ad hoc integration creates connections that are difficult to change/maintain • Lack of standards limits ability to deliver meaningful interoperability • Rigidity of architecture makes small improvements impossible to cost justify

Business Benefits • Flexibility and scalability • Increased time to market Business Driven Development for SOA • Applications Designed for change • Productivity gains

Business Driven Development for SOA Prioritize Plan Manage Measure Business End User Executive Model the Business Define Requirements Optimize Analyst Govern Operations Manager Design Project Manager Architect Manage change & assets Manage Application Support Construction SW Quality & Testing Deploy Developer Deployment Manager Tester Development Operations Optimize Iterate

Rational Portfolio Manager Understand Risk, Project Costs, and ROI CIO Identify and Manage Projects and Resources Project Manager Manage Projects and Portfolios • Prioritize proposed, existing and under-construction services based on business priority, risk and return • Track service level financials • Provide deep insight into SOA development • Manage SOA project-team dependencies • Forecast demand for service creation and updates • Understand the cost of SOA creation, operations and maintenance

WebSphere Business Modeler Create, Simulate & Analyze As-Is Business Model Create Observation Model with KPIs & export to Monitor Create, Simulate, Analyze and Optimize To-Be Business Model Create FinancialReports & ROIEstimates BusinessAnalyst Model the Business • Discover and design key business processes • Determine and allocate required resources • Model the business organization & roles organizational units can play • Determination of any other process/tasks (services) that must be provided by others

Rational Functional & Performance Tester Test Create & Manage SystemRequirements Tester Develop Portlets (App UI and Monitor) Trace Requirements & Create System Use Case Realizations Model & Implement Services, & expose as Web Services Rational Software Architect Java Developer Portal Developer Architect Design, Construct and Test the Services • Trace enterprise requirements to business processes and service implementations • Define detailed system requirements and service implementations • Architect and design the service implementations • Build new services from scratch or enable existing applications for WS-I compliance • Discover and consume existing services • Test functionality • Test performance

WebSphere Integration Developer (3Q05) Choreograph services using BPEL, WSDL, etc. Integration Developer Assemble Solution (BPEL, Human Task Manager, Business Rules, etc) Configure Human Task Manager (including Ad-Hoc) & Client Runtime • WebSphere Process Server • WebSphere Portal • WebSphere Business Monitor Deploy/Run Monitor Business Operations Analyst DBA Assemble and deploy composite application • Implement business processes designed by Business Analysts • Plug in Services • Plug in Human Activities (Staff) • Test business processes and deploy them to the run-time

Run-time Statistics Rational RequisitePro Observation Model WebSphere Business Modeler Rational Portfolio Manager WebSphere Integration Developer Create, Simulate & Analyze As-Is Business Model Choreograph services using BPEL, WSDL, etc. Create Observation Model with KPIs & export to Monitor Understand Risk, Project Costs, and ROI Integration Developer Create, Simulate, Analyze and Optimize To-Be Business Model CIO Assemble Solution (BPEL, Human Task Manager, Business Rules, etc) Configure Human Task Manager (including Ad-Hoc) & Client BPEL WSDL Identify and Manage Projects and Resources Create FinancialReports & ROIEstimates BusinessAnalyst Project Manager WSDL EAR UML Runtime • WebSphere Process Server • WebSphere Portal • WebSphere Business Monitor Rational Data Architect (4Q05) Model Relational Database Schemas Deploy/Run WSDL EAR RDB Mapping Monitor Business Operations Analyst Data Architect DBA IBM Rational Team Unifying Platform Business Driven Development for SOA in Action Rational Functional & Performance Tester Test Create & Manage SystemRequirements Tester Develop Portlets (App UI and Monitor) Trace Requirements & Create System Use Case Realizations Model & Implement Services, & expose as Web Services Rational Software Architect Rational Application Developer Java Developer Portal Developer Architect

The IBM Rational Software Development PlatformTeam Unifying Platform - Roles Deployment Manager Analyst Architect Developer Tester Rapidly construct, transform, integrateand generate code Model, simulate, assemble,and monitor processes Design, create, and execute tests Visuallymodel applications and data Provision, configure, tune and troubleshoot applications • Follow a common process • Manage projects and portfolios • Manage requirements • Manage changeand assets • Manage quality Project Manager • Align investments with business objectives • Analyze and monitor project portfolios IT Executive

The IBM Rational Software Development PlatformTeam Unifying Platform - Products Deployment Manager Analyst Architect Developer Tester Rational Application Developer WebSphere Integration Developer Rational Performance Tester Rational Functional Tester WebSphere Business Modeler Rational Software Architect Tivoli Configuration Manager Tivoli Monitoring • Rational Unified Process • Rational RequisitePro • Rational ClearCase • Rational ClearQuest Project Manager • Rational Portfolio Manager IT Executive

Customers Choosing IBM for Service-Oriented Development “The challenge in today’s IT environment is achieving not just IT efficiency, but rather business effectiveness (doing the right things in the right way). This requires understanding and balancing both the business and IT perspectives of a solution. In our experience, the best way to address this is by adopting a Service Oriented Development paradigm, combined with a model driven approach to describing and implementing solutions. Models must encompass both the business process perspective, the functional perspective and the data perspective of a solution. We have chosen to adopt Rational Software Architect as a key element of this model driven strategy. We expect through better tooling to achieve both efficiency in development and support for the desired effectiveness in merging business and IT.” - Claus Torp Jensen, VP, IT Architecture, Competencies and Methods

GROWTH • Grow revenue • Cost containment Increase IT flexibility Reduce development and maintenance costs EFFICIENCY • Agility • People • Processes Increase success rate Improve quality RESPONSIVE • Respond to customer needs • Change of market demand • Change of business requirements Decrease time to market Summary CEO Challenges SOA Capabilities Tooling Benefits Flexibility Reusability Effectiveness Designed for change

Backup Slides for selected audiences

Business Trends & Pains

Business flexibility is driving the need for IT flexibility • The need for flexibility and innovation is forcing organizations to break their business processes into manageable parts • 85% of CEOs say streamlining or optimizing their business processes are their top priority(1) • Applications mirror this approach, becoming increasingly modular • 48% of CIOs say application integration is their top IT priority(2) • Simplification of underlying IT infrastructure is required to manage and support changes in the business • X% of CEOs see IT as an inhibitor to business responsiveness(3) Sources: (1) Outlook 2004: Priorities 1Q InformationWeek Research, January 2004;(2) Merrill Lynch CIO Survey Results, September 2004(3) IBM Global CEO Study, February 2004 This is part of what IBM calls “On Demand”

IT Pains • Support company growth • Ability to respond rapidly • Alignment of disparate applications • Have applications better fit business processes • Integrate/Enhance Systems and Processes • Align IT and Business Goals • Responsive to business conditions • Capture and utilize customer information for swift decisions • Improve Efficiency of business processes • Increase flexibility of business processes • Work efficiently with suppliers, partners and customers • Building responsiveness and agility into the organization through IT • And many others ! Align business models & processes with strategic objectives Standardize, automate and integrate business processes and IT infrastructure Reuse Standardize Align Extend & reuse existing IT assets

Technology Infrastructure Business and IT processes Business Design Business Flexibility: Becoming an On Demand Business 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 speed to any customer demand, market opportunity or external threat. ENTRY ENTRY

SOA is a key technology that can enable integration and flexibility environment to support growth In a survey of more than 1000 European developers, Evans Data Corp. found that nearly 75% are currently developing or are planning to develop SOA in 2005 Evans Data Corp, Jan 2005 2005 will be the year of the SOA. Mark it down. According to The Yankee Group, 75% of firms plan to invest in the technology and staffing to enable a service-oriented architecture (SOA). Gartner, 2004 Gartner Inc.'s prediction that by 2008, 60% of enterprises will use SOA as their "guiding principle" when creating applications and processes Gartner, 2004 Improving Shared Business Processes - The need to automate common B2B processes is a basic cost-cutting measure that also serves to make supply chains more efficient. This need will continue to drive the industry in the long term. In particular, standards that enable or mandate these shared business processes will provide a focal point to B2B projects. Improving Internal Business Processes - The move to analyze and automate and create new business processes will continue to be a long-term driver. Improving processes is a basic cost-cutting measure as well as a means to increase client satisfaction and gain a competitive advantage. B E N E F I T S Linking Legacy Systems to Current Applications - Each successive wave of technology over the past ten years has brought new applications. Mainframes, client/server databases, ERP, Web applications, Java applications, and soon Web services form a mosaic of applications that will likely be present in most enterprises for the foreseeable future. Each new application requires integration with one or more existing "legacy" application Current Analysis, March 2004

The IBM Rational Software Development PlatformTeam Unifying Platform Deployment Manager Analyst Architect Developer Tester Rapidly construct, transform, integrateand generate code Model, simulate, assemble,and monitor processes Design, create, and execute tests Visuallymodel applications and data Provision, configure, tune and troubleshoot applications • Follow a common process • Manage projects and portfolios • Manage requirements • Manage changeand assets • Manage quality Project Manager • Align investments with business objectives • Analyze and monitor project portfolios IT Executive

Some Key Design & Development Roles for SOA • Model the business • Understand business requirements • Analyze and develop process models • Identify optimum process models to drive services design • Design the services architecture • Model and refine the services architecture • Identify new services needed and existing assets to re-use • Generate services specifications Business Analyst Software Architect • Construct the services • Implement new services & repurpose existing assets as services • Create UI for access via Web or Portal • Validate and test services Developer • Assemble and deploy composite application • View the process model • Choreograph the services and workflows • Assemble and deploy Integration Specialist

Summary

Business Driven Development for Service-Oriented Architectures