Driving Value for Government The Value of XML and SOA in Data Collection and Processing

1. Driving Value for GovernmentThe Value of XML and SOA in Data Collection and Processing

2. Agenda • Business Issues and IT Market Trends • Key Drivers for Improving Data Collection and Processing • Typical Solutions and Consequence • Rationale for XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration

3. Agenda • Business Issues and IT Market Trends • Key Drivers for Improving Data Collection and Processing • Typical Solutions and Consequence • Rationale for XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration

4. Key Drivers for Improving Data Collection and Processing Cleaner Data Faster The Ideal Solution Easy to Manage Easy for Respondents

5. Issues forcing change – What customers are saying Challenging financial objectives • Increase revenue • Increase profitability • Reduce costs • Manage total costs of operation (TCO) Growing pressures • Enabling innovation: gain business insight • Increasing business flexibility • Constituent expectations • Speed of change • Market place challenges • Better customer service with complete view on customer • Inter-agency collaboration Demanding business issues • Regulation • Compliance • Security • Accountability • Legal • Higher development costs • Applications numbering hundreds, thousands, even tens of thousands • Some monolithic • Some isolated • Some designed and performing well in meeting current business objectives, some not

6. $ $ $ $ Data Collection and Processing - Electronic Tax Filing Issues forcing change Better customer service with more focus on constituents needs Need to develop on-line mechanism to reduce paperwork and improve services levels Operational ineffectiveness incurred by length of time to complete submission process Demand from constituents to improve accessibility to services Need to reduce paper handling, management and storage costs Processing paper forms is labor intensive, inefficient and slow

7. Typical Solutions for Data Collection and Processing Spreadsheets, Word Processing, and Other Office Documents PDF / Paper Documents Relational Database Application Infrastructure Client / Server Applications HTML / Web Browser

8. XML Traditional Forms and Relational Databases Traditional applications shred form data to pre-defined columns in relational tables Sometimes the application generates XML but still needs to shred to persist in relational databases Application XML or Non-XML Shred Fixed Mapping Form Document Relational Database

9. Disadvantages of Traditional Forms and Relational Databases • Fragile to Develop and Maintain • Changes in forms ripple through to the backend database • Changes in the database ripple through to the forms • One Size Generators makes customization difficult • Data must be normalized to fit pre-defined models • Mapping can get complicated • Monolithic Data Validation locked in server side applications • In the database with stored procedures • In the middle tier with procedural code • Difficult to provide access for end users

10. Agenda • Business Issues and IT Market Trends • Key Drivers for Improving Data Collection and Processing • Typical Solutions and Consequence • Rationale for XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration

11. What is XML? • XML • eXtensible Markup Language • Self-describing data structures • XML tags describe each element and their attributes • Benefits • Flexible • No fixed format or syntax • Structures can be easily changed • Platform Independent • Not tied to any platform, operating system, language or software vendor • XML can be easily exchanged • Fully Unicode compliant <? xml version=“1.0” ?> <purchaseOrder id=“12345” > <customer id=“A6789”> <name>John Smith Co</name> <address> <street>1234 W. Main</street> <city>Toledo</city> <state>OH</state> <zip>95141</zip> </address> </customer> …

12. Industry Trend and IT Challenge • Electronic forms (E-forms) used throughout industry and government to save paper and streamline processes e-tax filing, e-permits and license application, e-grant processing • E-forms are becoming XML based IBM Lotus Forms, XForms • Trying to solve a major issue relative to forms processing • Multiple tax types – corporation, personal, withholding • Forms change from year to year • multiple schema changes • multiple program changes

13. Benefits of XML for Tax Form Solution • Lower Development Costs • XML is self-describing and reduces complexity in application layers and evaluation of tax rules for filings • Improved developer productivity  Quicken solution development and gain cost savings • Greater Business Agility • XML data model is flexible and extensible; easily accommodates changes to data and schemas • Update applications rapidly and reduce maintenance costs  Respond quickly to dynamic conditions and get faster time to value

14. XML is the language of business Banking IFX, OFX, SWIFT, SPARCS, MISMO +++ Retail IXRetail, UCCNET, EAN-UCCePC Network +++ Life Sciences MIAME, MAGE, LSID, HL7, DICOM, CDIS, LAB, ADaM +++ Electronics PIPs, RNIF, Business Directory, Open Access Standards +++ Healthcare HL7, DICOM, SNOMED, LOINC, SCRIPT +++ Insurance ACORD XML for P&C, Life +++ Telecommunications eTOM, NGOSS, etc. Parlay Specification +++ Financial Markets FIXML, MDDL, RIXML, FpML +++ Automotive ebXML, other B2B Stds. Energy & Utilities IEC Working Group 14 Multiple Standards CIM, Multispeak Cross Industry PDES/STEPml SMPI Standards RFID, DOD XML+++ Chemical & Petroleum Chemical eStandards CyberSecurity PDX Standard+++

15. XML - the Fabric of Services Oriented Architectures

16. Service Oriented Architecture (SOA) • Key concept of SOA is to use agreed interfaces between consumers and service providers • Consumers of a service do not need to know the implementations of the service • In typical and historical form solutions, custom programming on the server side of SOA has been devoted to mapping between relational data formats and XML formats • The implications of having XML as both exchange and storage format include the increased ability to create universal services (on the server side) leading to: • Simpler set-up and programming for both service consumer and the service provider • Reusable services mean fewer codes • Increased automation • Opens up systems to quick and straightforward support of forms, Web 2.0, Web Services etc

17. Agenda • Business issues and IT market trends • Key drivers for improving data collection and processing • Typical solutions and consequence • Rationale for exchange and storing XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration

18. <xml> </xml> XML Data Capture and Storage – A New Generation Data Collection Solution XForms XQuery <xml> Business Processes User <xml> Services Interface Services <xml> Analysis, Reports Customers, Employees, Constituents, Suppliers Services Easy for Respondents Easy to Manage Cleaner Data Faster + = DB2 9 and Lotus Forms combine open standards to create a feature-rich, robust data collection architecture for SOA applications

19. DB2 9 – A New Generation Hybrid Data Server SQL Developer "I see a sophisticated RDBMS that also supports XML." XML Developer “I see a sophisticated XML repository that also supports SQL." Familiar Programming Models Mature Services Familiar Tooling Optimized Performance & Scale Optimized Storage Models XML integrated at all levels

20. Lotus Forms – A New Generation XML EForm Presentation Layer • Pixel-perfect for duplicating paper forms • Guided-interview, or wizard, driven Business Logic • Capture forms processes in the form • Integrate business process workflows Data Instances • Embed multiple XML data instances • Validate against external data sources and schemas • W3C XForms Implementation File Attachments • Supplemental or associated eForms • Other documents as part of a transaction Digital Signatures • Sign multiple, overlapping sections or complete form • Use built-in signing, digital certificates or signing pads

21. XML related projects • Tax Implementation Group for Electronic Requirements Standardization (TIGERS) • XML schema for transferring the data from software vendors through IRS master e-file gateway to states client server • Web services to communicate between vendors that submitted the data and states that collected the data • States responsible for client portion of the web services to electronically collect corporate tax data and interface needed to back end systems to process XML data • FedState1120 Project – new architecture for data collection to IRS • Personal Income Tax • Property Tax

22. WP Process Server HTML Render WS Portal Server Web 2.0 Deployment LF Services Platform WS Application Server LF Webform Server Translator Workflow Systems Browser Only Corporate Web Server Rich Client PC <xml> Browsers with WF Viewer LF Designer </xml> Solution Architecture XML Forms/ XML instance DB2 pureXML XML Forms XML Forms/ XML instance WS Application Server Data Web Services Corporate Web Server XForms/XFDL Render Corporate Firewall/Proxy Internet/Intranet Corporate LAN Return

23. XML Data Capture and Storage Joint Benefits

24. XML Data Capture and Storage Joint Benefits

25. XML Data Capture and Storage Joint Benefits

26. New York State Department of Taxation and Finance Simplifying filing of more than 2 million returns already Industry: Government Business challenge With traditional paper-driven processes increasing costs and slowing response times, the NY State Department of Taxation and Finance sought to modernize its tax filing system through the use of e-forms. Because there are thousands of different types of forms to process and many fields are often left blank, the organization needed a consistent way to manage, input and share data while accommodating form and regulation changes. Solution The organization adopted XML as its standard data platform for e-forms. To efficiently manage XML data, the agency uses IBM DB2 9 with pureXML™ capabilities within a SOA. This innovative use of XML enables staff to store forms as-is without having to perform complex data transformations. This has helped greatly reduce the complexity of database design and the time and labor needed to update tax policies and forms. Agency employees can now more easily access federal tax records and support online filing. Benefits • Reduces time and labor needed to update tax policies and forms with 2 million Web filings processed to date • Projects 5 million more filings with addition of two more applications • Decreases data management costs “Through the use of XML data, we have more flexibility in defining new services and can more easily keep up with changing tax policies.” —Jim Lieb, Director of Common Services, New York State Department of Taxation and Finance

27. Usually hundreds-thousands of different tax forms  Schema Diversity Typically not every field in a form is used Sparse Data Many forms change every year Schema Evolution  A case for XML ! Tax Forms

28. Current relational storage,inefficient, anonymous columns, requires complex mappings in the application How did XML solution address this? <form> <wages>134</wages> <date>11/23/05</date> </form> New XML format: XML: Avoids sparsity. Proper data labeling. 2 columns, not 1000. Transformable. Extensible. Simplifies mapping.

29. XML Schema Flexibility/Evolution in DB2 9 Document validation for zero, one, or many schemas per XML column: (a) (b) (c) (d) (e) No Schema One Schema Schema V1 Documents Any mix you want! & Schema V2 w/ and w/o schema Most Databases only support (a) and (b). DB2 9 allows (a) through (e).

30. Benefits of managing XML data with DB2 pureXML for SOA • Supports End-to-End XML for SOA environments • XML is used for message exchange in Web Services and Web 2.0 environments • XML can be persisted and queried easily and efficiently making SOA environments much easier to implement • Encourages the use of Pervasive XML tools and software • Open source software and vendor XML tools are widely available and used • XML tools and software can be used with persisted data reducing the amount of custom code that needs to be developed.

31.  XML Data Management Needs Relational Maturity • XML Data Needs Protection • Backup and recovery features to ensure continuity • Data is protected using database security • Simplified XML Data Access • Centrally store and access difficult to retrieve data • SQL or XQuery can be used to retrieve data • Join XML data with it’s related relational data • Search Speed • Search documents quickly and efficiently using proven search optimization engine of mature database • Optimize Existing Investments • Use existing technology infrastructure and skills to store and manage both relational and XML

32. Agenda • Business Issues and IT Market Trends • Key Drivers for Improving Data collection and Processing • Typical Solutions and Consequence • Rationale for XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration

33. Presentation Presentation Lotus Forms and DB2 : moving from relational (shredding) to pureXML Object Oriented • Relational schema and tables as the choice for XML • Native XML provides a simpler alternative XML Shred to Relational XML Relational SQL, XSLT Join Relational & Publish XML Application Server Database Server Object Oriented XML XML XML XQuery XML Application Server Database Server

34. Application example • Purchase Order example • Create orders • Select products from a product catalog • View existing orders • Based on relational tables • Uses Servlet to receive form data

35. Architecture DataHandler class and DB2Connection class interact with DB2 Server to read and write data to a DB2 database

36. Lotus Forms and relational database example • Maps Order and Product data into relational tables • Workplace Form API generates and consumes XML data to interact with the Form • Which means constant shredding and reconstruction of XML data, to and from the backend database.

37. Impact on application code: Relational vs. pureXML Application parses and shreds XML to fit relational tables Single Insert statement in DB2 9. Database consumes XML Code snippet from Lotus Forms example

38. Impact on application code - contd Application constructs XML Database does the work Code snippet from Lotus Forms example

39. Agenda • Business Issues and IT Market Trends • Key Drivers for Improving Data collection and Processing • Typical Solutions and Consequence • Rationale for XML • Service Oriented Architecture • Data Collection and Processing with DB2 pureXML and Lotus Forms • Solution Overview • Complimentary Components • Architecture • Joint Benefits • Case Study of New York State Department of Taxation and Finance • Related Product Material • DB2 pureXML • Tax Demonstration