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Service Oriented Enterprises

Service Oriented Enterprises. Dr. Setrag Khoshafian VP of BPM Technology Pegasystems Inc. www.pega.com. What are Service Oriented Enterprises (SOEs)?. You have a technology perspective: Loosely couple applications, trading partners, and organizations Invoke via service calls.

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Service Oriented Enterprises

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  1. Service Oriented Enterprises Dr. Setrag Khoshafian VP of BPM Technology Pegasystems Inc. www.pega.com

  2. What are Service Oriented Enterprises (SOEs)? • You have a technology perspective: • Loosely couple applications, trading partners, and organizations • Invoke via service calls. • Services involved in processes with human participants • Provides even greater value than the sum of component services.

  3. What are SOEs? • You also have a cultural perspective: • Each party sees herself as a service provider as well as a service consumer • Focus on serving various communities:  • Customers • Shareholders • Trading Partners • Employees • Government

  4. Customers Community Shareholders Employees Partners Government Service Oriented Enterprises (SOE) SOE

  5. SOE Goal • Align Business and IT SOA Technology Alone Will Not Do It IT Business

  6. Management Goals Management Goals Sales Service Operations Compliance Partners Sales Sales Service Service Operations Operations Compliance Compliance Partners Partners Sales Service Operations Compliance Partners Systems Systems The SOE Challenge…Execution Gaps!

  7. Management Goals Sales Service Operations Compliance Partners Sales Service Operations Compliance Partners Systems The SOE Challenge…Execution Gaps! Business Changes Worsen Execution Gaps

  8. Solution: SOE Architecture SOE Architecture= Performance Management + Business Process Management + IT SOA Architecture (ESB)

  9. The Service Oriented EnterpriseIT Service Infrastructure Service Oriented Architecture IT Service Infrastructure IT

  10. Service Infrastructure • Loose Coupling • Standards Based (WS-*) • Discovery • Service Composition • Enterprise Service Bus

  11. SOAP Response Internet HTML Response Internet SOAP Request Client GET/POST Request Server (s) Server (s) Loose Coupling isolated from the details of the service’s implementation language, platform, location, or other details

  12. Service Content and Portals: WSRP Service Management: WSDM Business Processes and Rules: BPMN, WS-BPEL, WS-CDL Quality of Service: WS-Security, WS-ReliableMessaging Service Transactions: WS-Transaction/WS-Coordination Service Description: WSDL Remote Service Request/Response: SOAP Service Transport: HTTP/HTTPS

  13. Capabilities and Features of an ESB Transform Provider message format toConsumer message format and vice versa(XML to ASCII, XML to XML, etc.) • Message Transformation • Protocol Transformation • Message Routing • Security • Transaction • Orchestration • Service Registry Consumer Services requests use a transportprotocol (e.g. JMS) different from theprotocol (e.g. HTTP) of the Provider Content based routing of Consumer messages to appropriate Provider & Vice Versa. Support for rules based routing Support for WS-Security, SAML, encryption,Authentication and Authorization Support for WS-AtomicTransaction,WS-Coordination, WS-BusinessActivity Micro-Flow Orchestration & Choreography

  14. The Service Oriented Enterprise Enterprise Performance Management Service Performance Business

  15. CI Methodology Enterprise Performance Management Business Intelligence Business Activity Monitoring Strategic Methodology Financial Internal Vision Customer Learning Business Process Management System Enterprise Service Bus

  16. The Service Oriented Enterprise Enterprise Performance Management Service Performance Business Business Process Management Suite Service Integration Service Oriented Architecture IT Service Infrastructure IT Service Oriented Enterprises, Dr. Khoshafian

  17. Evolution of BPM Suites BPM Suite BPM • Modeling and Simulation • Business Rules • Business Activity Monitoring • Solution Frameworks • SOA support • Alignment of business & IT • Integration: • System Participants • Trading Partner Participants • Process Portals • Organizational Model • Rich Process Data Model Workflow • Human Participants • Flow automation • Flow status management • Document and Content Centric • Workflow Reference Architecture BPM Suite

  18. Enterprise Policies and Procedures Modeled Policies and Procedures Modeled And Automated Policies and Procedures Policies Procedure Strategy and Vision Models Policies Procedure Process Models Business Policy Models (business rules) Information & Integration Model Organization Model

  19. Workflow BPM Suite Business Rules Business Process Monitoring & Analytics Solution Frameworks Enterprise Application Integration Business To Business Integration

  20. System/Partner and Human Participants Buyer Seller Shipper Choreography Buyer Seller Shipper Orchestrate Orchestrate Orchestrate

  21. Unable to Apply 1 Notification of Assignment Notification of Assignment Resolution of Investigation 11 6 3 Unable to Apply Case Status Request 2 7 Unable to Apply 4 Notification of Assignment Resolution of Investigation Resolution of Investigation Case Status Response 5 9 8 10 Unable to ApplyExample of SWIFTNet E&I Straight-Through Process Remitter Remitting Bank Beneficiary Bank (Using Smart Investigate) Beneficiary • Parse message • Check for duplicate cases • Create case & route • Attach message • Locate & attach payment transaction • Evaluate transaction • Status=Complete? • STP? • Look up customer record • Issue notification of assignment • Contact remitting bank • Schedule chasers • Assign SLA STP • Update case • Attach message • Issue notification of assignment • Send chaser • Update case • Attach message • Resolve case • Attach message • Send resolution message • Levy service fee

  22. Workflow BPM Suite Business Rules Business Process Monitoring & Analytics Solution Frameworks Enterprise Application Integration Business To Business Integration

  23. Write-Off? Yes No Example IF Dispute Amount is less than $51; AND Transaction is not disputed as a fraudulent transaction;AND The customer has disputed less than two transactions this year; Selection: World MasterCard VIP Customer THEN Fully credit the customer without even initiating the dispute i.e. Write-off the transaction. 

  24. Participants Tasks Rules

  25. Workflow BPM Suite Business Rules Business Process Monitoring & Analytics Solution Frameworks Enterprise Application Integration Business To Business Integration

  26. Customer Process Management Framework BPM Solution Development HealthcareMember Insurance Customer Relationship Banking Customer Relationship Extensions Customer Processes and Rules • Customer Profile • Customer Entitlement • Cross Sell • Customer Dispute • Agreement Renewals • Customer Interaction BPM Suite Enterprise Application Integration Business To Business Integration Solution Frameworks Business Rules Business Process Monitoring & Analytics Workflow Greater speed to market and use of best practices enable faster achievement of competitive advantage

  27. Workflow BPM Suite Business Rules Business Process Monitoring & Analytics Solution Frameworks Enterprise Application Integration Business To Business Integration

  28. Example:BalancedScorecard StrategicMethodology AnalyticMeasures BusinessIntelligence Business ActivityMonitoring Enterprise Application Integration Business To Business Integration Solution Frameworks Business Rules Business Process Monitoring & Analytics BPMSuite Workflow Enterprise Service Bus

  29. Link Executing Processes To Strategies • Connecting measurable objectives to executing processes and rules, and continuously improve them – in real time. Customer Satisfaction Index

  30. CI Methodology Enterprise Performance Management Business Intelligence Business Activity Monitoring Strategic Methodology Financial Internal Vision Customer Learning Business Process Management System Enterprise Service Bus

  31. Continuous Improvement LifeCycle Agents Process Architect Business Analyst Six Sigma Black Belt

  32. Revenue • New Products • New Processes • Customer Retention • Up Sell • Cross Sell • M & A BPMS ROI • Expenses • IT • Business • Staffing

  33. Productivity Gains BPMS X2 to > X10 ObjectOriented Programming X2 to X3 High Level Structured Programming X5 to X10 Assembly

  34. Management Goals Management Goals Sales Sales Service Service Operations Operations Compliance Compliance Partners Partners Systems BPM Suites for the SOE Challenge… Business Process Management Suite Service Integration Service Operations Compliance Service Operations Compliance Systems

  35. Customers Local Community Shareholders Employees Partners Government Competitive Advantages for all Communities SOE

  36. Conclusion • SOE can serve their communities through: • Directly Capturing requirements: • Executable processes and rules • Identify measurable KPIs: strategic methodology • Tying these KPIs to modeled and executing business processes and policies • Continuously monitoring and improving the implementation to meet the needs of the communities • … while leveraging the underlying IT SOA infrastructure

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