Achieving ROI from SOA Graham Massey CTO Accenture UK/I British Computer Society – Jersey January 2008

2. Achieving ROI from SOAGraham Massey CTO Accenture UK/IBritish Computer Society – Jersey January 2008 Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

3. Agenda Recap and levelling on Vision for SOA Market trends in SOA adoption ROI from SOA Accenture Investments around SOA Copyright © 2008 Accenture All Rights Reserved.

4. Seat Marbella Original Fiat Panda Original VW Beetle Vision for SOAAutomotive - “platform engineering” Seat Altea VW Touran Skoda Octavia Audi A3 Differentiation Manufactured VW New Beetle Manufactured Assembly Platform Simplification Copyright © 2008 Accenture All Rights Reserved.

5. Vision for SOABusiness process and IT CEO Challenges • Economic value • Sustainable growth opportunities • Cost structure & performance management Differentiation on the outside CIO Challenges Simplification on the inside • Reduce systems complexity • Improve service reliability Execution mastery COO Challenges • Process excellence and consistency • Improve service culture • Exploit synergies and economies of scale Copyright © 2008 Accenture All Rights Reserved.

6. Business Capabilities Apply for a new Credit Card Apply for a Mortgage Loan Processes (Assembled & Orchestrated Services) Process Mortgage Loan Instant Credit (Business) Services Verify Customer Address Set-up Account Check Customer Credit Underwrite Product Conduct Fraud Check Existing Systems Corporate Systems Marketing Systems Sales & Acquisition Systems Risk Systems Customer DataWarehouse Business Units TradingPartners Vision for SOA – What’s new ?Composite Solutions SOA delivers differentiated business capabilities or products through the composition (orchestration) of reusable, standards-based, interoperable, autonomous business functions/systems (primarily delivered through Web Services) Copyright © 2008 Accenture All Rights Reserved.

7. Vision for SOATechnology overview Presentation only Light-weight GUI (web interface) End-to-end process monitoring Business Activity Monitoring Business Process Orchestration (Service Consumers) End-to-end process management Service Bus Transformation Messaging & Routing Standards-based integration fabric Service bus manages the interchange of requests between service consumers and providers Security Common Services Registry Service Providers (and Consumers) Business logic in custom and packaged applications exposed as business services ERP CRM Legacy DW Copyright © 2008 Accenture All Rights Reserved.

8. Standard-based (WS-*) Communication Web Services XML, SOAP, UDDI Allows standardized point-to-point communication between systems through widely accepted open standards. ESB Enterprise Service Bus Allows a network of disparate systems to interact as one unified enterprise system by resolving differences in system HW, SW, networks, and location. BPM Business Process Managememt Allows automated integration of separate services to create integrated enterprise level business processes. BAM Business Activity Monitoring Provides End-to-End process performance monitoring Real-time insight and control of business. Vision for SOAKey technology elements There are 4 major technology enablers behind SOA: You don’t need all 4 key enablers to have an SOA, but each of them is important to fully realize the expected benefits. Copyright © 2008 Accenture All Rights Reserved.

9. 0 100 Percent of Solution The promises of SOA Simplification via standards-based interfaces Extend the life of applications via integration Autonomy of services via loose-coupling Reduced TCO via simplification and reuse Rapid development, reduced time-to-market Improve business agility Differentiation via customization - Technology and IT Driven Projects Business Driven Projects Maturity of SOA Strategy and Implementation + Copyright © 2008 Accenture All Rights Reserved.

10. 0 100 Percent of Solution The promises of BPM End-to-end process control Visibility to key process metrics Metrics and data in context Role-focused composite applications Predictable change via simulation Flexible, rapidly changeable processes - Foundation capabilities Advanced Capabilities Maturity of BPM-Based Solutions + Copyright © 2008 Accenture All Rights Reserved.

11. Agenda Recap and levelling on Vision for SOA Market trends in SOA adoption ROI from SOA Accenture Investments around SOA Copyright © 2008 Accenture All Rights Reserved.

12. Market trends in SOA adoptionContemporary forces acting on SOA Business and Operational Drivers • Time-to-market and project cost for new capability within and across businesses • Process and organisational flexibility • Technical flexibility – renewal and operating cost reduction • Sourcing flexibility Technology Trends People - Rise of Gen-Y • SOA technology maturity: software development patterns (custom + package vendors) • RIA • Integration market moving to broadly SOA approaches • Real Time Analytics (BPM/BAM) • Changing expectations of web generation customers and employees • War for employee talent inside and outside the organisation Substitution - Utility & Cloud computing Green IT` • Global warming • Rising energy cost • Regulatory risk • Corporate Image • Maturing of SaaS • Commodity infrastructure offerings from the global web properties • Another generation of web ASP and BPO Copyright © 2008 Accenture All Rights Reserved.

13. IT-driven and Business-driven SOA opportunities Service-oriented BPR New enterprise-wide EAI Businesspartnerintegration Existing integration“re-factoring” as SOA Strategicprojects Strategic AR Program Composite Solutions Business process automation Portal & Workbench projects WS- enablement of existingapps Datasharing &single Dataview Tactical projects Point-to-pointapplication integration Compliance &assurance IT-drivenprojects Business-driven projects Copyright © 2008 Accenture All Rights Reserved.

14. Adoption Styles Maturity and value – IT bottom up Business Insight/Predictive IT/Utility/Cross Enterprise Transformation level business change – process driven architecture + application renewal Knowledge Worker workbenches & Portals Value New Businessed building from the start with BPM Telecoms billing and operational fulfillment Business Partner integration Customer & Citizen eServices Orchestrate SOA with Business Create ESB Integration Substitution EAI consolidation Create SOA WS & Expose Externally Create SOA WS & Expose Internally Maturity Copyright © 2008 Accenture All Rights Reserved.

15. healthcareprovider Adoption StylesUser & Information centric (Portals redux) Healthcare Provider Workflow Health insuranceaccount processing Access to all business functions Copyright © 2008 Accenture All Rights Reserved.

16. Adoption stylesHigh Performance – Top Down - Process led Industry-wide Perspective Industry by Industry Accenture is approaching the High Performance agenda at a business level working top down … Strategy and Economics of High Performers Operating Model Banking Processes (horizontal and vertical) IT Frameworks and Technologies Library of global high performance case studies and high performance benchmark database, includes value drivers (metrics that matter). Insightful collection of thought leadership papers covering industry trends and 20+ topical aspects of banking industrialisation, e.g. HPB & SOA, HPB and Back Office Manufacturing and HPB & Core Banking Services Extensive repository of detailed process models spanning the entire banking organisation, with well over 1,400 processes documented in a relationship based BPM application • Powerful collection of reusable business design components: • Logical operating model • Logical process architecture, with 1,600+ capabilities • 5+ typical operating model configurations • Capability maturity model • Logical Product Architecture (planned) • Organisation design (planned) • Fully integrated link of process design components to IT frameworks: • Logical IT architecture Components • Service Model • Business Object Model • Proprietary Software solutions (Alnova) as well as strategic alliances (e.g. SAP) that are pre-configured to enable a suite of business processes High Performance Consumer Banking High Performance Lending High Performance Payments High Performance Asset Financing High Performance Corporate Banking High Performance Wealth Management Proven outsourcing capability across Application Process and Business Process Outsourcing, e.g. Procurement The High Performance Bank Copyright © 2008 Accenture All Rights Reserved.

17. 0-18 months 18–30 months 30–48 months AdoptionFour stage maturity model Organizations typically move through four distinct phases Phase 4 Phase 3 SOA is industrialized Phase 2 ESB- Based Solution and SOA Platform Services - fabric of business operations Cross enterprise processes Federation Utility and services infrastructure Predictive IT Business Insight Near real time Phase 1 Initial Deployment Organize and strategize First SOA projects. Convert applications into web-services Composed services to create business processes. Emphasis on strategic and business services. Consolidation of processes and services in creating an ESB Service oriented design and development using SOA tools Management buy-in and business needs. SOA readiness assessment Planning for SOA transformation Copyright © 2008 Accenture All Rights Reserved.

18. Backpressure on ITCIO Challenges of SOA 10 CIO Challenges Platform Competency Architectural Standards and Interoperability Data Architecture Infrastructure and Operations Application Rationalization IT Organization and Enterprise Architecture Methods and Tools Testing Security Training Copyright © 2008 Accenture All Rights Reserved.

19. Market trends / AdoptionSome personal reflections … Copyright © 2008 Accenture All Rights Reserved.

20. Agenda Recap and levelling on Vision for SOA Position and velocity – market trends in SOA adoption ROI from SOA Accenture Investments around SOA Copyright © 2008 Accenture All Rights Reserved.

21. Achieving ROI from SOAWhat’s holding back enterprise adoption ? • Some organisations are getting stuck in or choosing) to stay at Phases1,2 Phase 4 Phase 3 SOA is industrialized Phase 2 ESB- Based Solution and SOA Platform Services - fabric of business operations Cross enterprise processes Federation Utility and services infrastructure Predictive IT Business Insight Near real time Phase 1 Initial Deployment Organize and strategize First SOA projects. Convert applications into web-services Composed services to create business processes. Emphasis on strategic and business services. Consolidation of processes and services in creating an ESB Service oriented design and development using SOA tools Management buy-in and business needs. SOA readiness assessment Planning for SOA transformation Copyright © 2008 Accenture All Rights Reserved.

22. Achieving ROI from SOASuccess factors to build credibility • Incremental approach – with well aligned business + IT expectations; governance reality check - metrics • Initial efforts focused around a new business capability or product line with a good intrinsic top line growth case • Some enterprises have found a pure IT cost business case to get started and establish architecture elements and skills • CIO’s also report “Beta” exploratory applications on alternative technologies in suitable niches • Starting small and scaling fast • Pragmatic alignment of IT and SOA strategy with strategic vendor (ERP, platform, OSS) roadmaps Copyright © 2008 Accenture All Rights Reserved.

23. Achieving ROI from SOACommon challenges that drain credibility • Too much depth of Process and Service modelling in isolation before delivering anything • Excessive IT focus on product selection v.s. prioritisation and goal alignment around genuine business imperatives • Platform incontinence – a new architecture per project or phase • Selling SOA architecture cost solely on “reuse” jam tomorrow • Tactical investments straying into business criticality without the operational and governance models to sustain success • Insufficient focus on training traditional business analysts • Failure to manage expectations and train project managers Copyright © 2008 Accenture All Rights Reserved.

24. Achieving ROI from SOAMaturity at the process layer Phase 1 Basic Phase 2 Emerging Phase 3 Managed Phase 4 Process Excellent Keys to Success Business BPM Maturity Model • Start small • Identify high-value opportunities • Process owners are key • Be flexible – the goal is to improve processes for the greater good • Scale rapidly Continuous improvement Processes measurement drives business innovation Processes drive business Identify Process Owners Target high value processes Processes are accessible IT BPM Maturity Model • Work closely with the business • Make processes accessible • Start identifying services early in the lifecycle • Align services to business functions • Leverage existing tooling where possible Processes are meaningful and reusable Processes are measurable Application data and functions are readily accessible via standards IT is Agile and Adaptable Copyright © 2008 Accenture All Rights Reserved.

25. Agenda Recap and levelling on Vision for SOA Position and velocity – market trends in SOA adoption ROI from SOA Accenture Investments around SOA Copyright © 2008 Accenture All Rights Reserved.

26. Vendor innovation centers withIBM, Microsoft/Avanade, Oracle, SAP Alliances with other SOA technology providers – BEA, TIBCO, Software AG etc. Mammoth initiative on Secure SOA and Identity Management with Sun. Tarpon – SOA Infrastructure and cross enterprise BPM Accenture Investments around SOA • High Performance Process Excellence • Metrics, Models, IT Frameworks • Accenture Delivery Architecture and methodologies • Accenture Technology Laboratory research: • Knowledge Discovery • RIA • Gen-Y • ATL – India Copyright © 2008 Accenture All Rights Reserved.

27. In conclusion • Thank you for your attention • Q&A For more information: graham.massey@accenture.com rahul.jayawant@accenture.com Copyright © 2008 Accenture All Rights Reserved.