Andrew Howarth SOA Solutions Sales Leader UK, Ireland and South Africa a@uk.ibm

1. Business Process Management Enabled by SOA Andrew Howarth SOA Solutions Sales Leader UK, Ireland and South Africa a@uk.ibm.com

2. Which key business priorities will your IT organization implement or support in 2008? Note: Multiple responses allowed. Data: InformationWeek Research Outlook 2007 study of 300 business technology professionals

3. Business Process Management Overview • Business Process Management... • is a differentiating business capability • combining software capabilities and business expertise • to accelerate process improvements and quality of service • and facilitate business innovation • Expertise that Delivers BPM • Process Knowledge • Industry Methods and Models • Business consulting expertise • Software that Enables BPM • Business Services • Tools, Rules, Servers, Repositories • Business Dashboards, Forms 4

4. 2008: BPM alters Business and IT Collaboration Business View Process View • By 2011, aggressive adoption of BPM, leveraged by emphasizing user-friendly process modeling, will become common and an essential source for business performance improvement, and improved service as well as a critical bridge for communication between the business and IT communities. • By 2012, organizations that continue to view processes within the confines of functional silos will compromise their business performance in comparison to those organizations that have an end-to-end business process perspective. IT View 5

5. SOA in ActionInteraction among different types of services Collaboration Web Device People (Service consumers) Business Process External Services (Application & Information) Operational Systems (Application & Information Assets) Application Application Data Content Registry Connectivity(Enterprise Service Bus) Infrastructure and Management for SOA SOA Governance and Lifecycle Management

6. SOA in ActionInteraction among different types of services Business Events Processing PORTAL Business Activity Monitoring Collaboration Web Device People (Service consumers) BPM Business Process REUSE External Services (Application & Information) IOD Operational Systems (Application & Information Assets) ESB Application Application Data Content Registry Governance SLM Connectivity(Enterprise Service Bus) Infrastructure and Management for SOA SOA Governance and Lifecycle Management

7. Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems SOA Principles Fine Grained Technical Services

8. Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems SOA Principles Composite Services

9. SOA Principles Composite Applications Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems

10. Business Activities Business Processes Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems

11. Service Registry Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems

12. Service Registry Utility Services External Services Access Logging Address Presence Shipping Payments Persistence Procurement Line of Business Systems

13. BPM is Better With SOA • The BPM (top) layer relies on services for implementation and separation of concern, focusing on choreography and the optimization of business and process models • The Operational Systems (bottom) layer exposes already-existing assets that are made available as services for modularity, reuse and improved efficiency (no rip and replace!) • SOA improves how you design, manage, and optimize your business • processes by enabling: • BPM Enabled by SOA • Solution Building Efficiency • Reuse of existing assets • Flexibility in change SOA at the core of BPM: Business Processes External Services (Application & Information) Operational Systems (Application & Information Assets) Application Application Data Content Registry 15

14. Collaborative Development Integrated deployment of policies, rules, and services based on an SOA platform Integration Developer Business Monitor Process Server Business Modeler Clean hand-off to IT with Business Models, Metrics Workflow and Choreography Business Modelingand Simulation Business Monitoring, Dashboards and Analytics Feedback for continuous improvement and optimization Real time collaboration and management of business processes Flexible BPM enabled by SOAFull support for the BPM life cycle IT IT LOB IT/ LOB

15. Model “what if” scenarios Use simulation capabilities to: Assess risk mitigation Make investment decisions Calculate value of improvements Clean Hand off to Implementation Business Level Modeling and Simulation • Use ROI reports to compare and analyze Results Iterative and continuous improvement WebSphere Business Modeler • Import Visio Models

16. Collaboration Work with teams to resolve situations Business Alerts Notification of situations that require response Reports & Analyses Understanding trends by combining real-time performance and historical information External Information Information affecting performance Business Activity Monitoring Scorecards & Dashboards Key Performance Indicators for business units WebSphere Business Monitor

17. CICS IMS Rational WebSphere IM Lotus Tivoli IBM Software Brands Processes Applications Run Manage Build Middleware Environment WebSphere Lotus Tivoli Rational DB2 Linux Unix Windows i5/OS z/OS Systems Environment Servers Storage

18. CICS IMS Rational WebSphere IM Lotus Tivoli IBM Software Brands Processes Applications Component Business Applications Run Manage Build IBM GBS ISV Middleware Environment WebSphere Lotus Tivoli Rational DB2 Linux Unix Windows i5/OS z/OS Systems Environment Servers Storage

19. Consumer Channels Business Process Layer Phone/PDA Fax Integration Services Layer Service Endpoints Gold Silver Bronze Business is complex – Multichannel is a common strategy Customers B2B 3rd Party Service Providers High street Call centre Web Email Text Msg Process Model ESB Business Services Services

20. A naively simple account opening process

21. Business Driven Change #1 - Add Support For Platinum Customers

22. Business Driven Change #2 – Add Geo Specific Support

23. Business Driven Change #4 – Add Support For Gold Customers Manage This!

24. Consumer Channels Role Based Logic Policies Process Logic Business Process Layer Phone/PDA Fax Integration Services Layer Integration Logic Gold Silver Bronze Application Logic Business Services Service Endpoints Gold Silver Bronze Business is complex – Mulitchannel promotes process paralysis Customers B2B 3rd Party Service Providers High street Call centre Web Email Text Msg Process Model ESB Business Services

25. How do we reduce complexity – combine 3 capabilities • SOA-Enabled Business Services • Collections of Business Services ( reusable) that are SOA enabled • Describes a unique Business Function that is placed in the Business process • Understands the context and business variables • Captures the Business Policies and Rules Build Business Services • SOA- Service Governance • Discovery and classification of services web service end points • Discovery and classification of Business Services • Holds details on policy and rules • Provides governance policy around service endpoints Use Registry & Repositories for services • Dynamic Runtime Assembly for maximum flexibility • Provides separation of concerns between process and end points • Enables ease and fast time to value and lower cost of change • Binds, assembles and executes against policy and variation. Dynamic Assembly

26. Business Policies Communication Channels Risk Assessment Policies Pre-Approval Policies Business Service IVR CRM Web Portal Role-Based Users Technical and industry standards compliance • WS-I for service interfaces • MISMO, IFW for messages and transactions CSR Operational Capabilities Consumers Customer Notification: Custom J2EE Eligibility & Underwriting Customer Profile: Packaged CRM Intake: 3rd Party Service Business Service Example The “Credit Check" Business Service represents a discrete business function to determine eligibility for credit of a consumer

27. Policies Gold Silver Bronze Phone/PDA SVC:EndPoints Business Services Meta Data Fax Services Meta Data Business Services Meta Data Gold Silver Bronze Business is complex – Mulitchannel Solutions using Metadata Consumer Customers B2B 3rd Party Service Providers Channels High street Call centre Web Email Text Msg Business Services Repository Business Process Dynamic Assembler Integration Services layer Service Endpoints

28. Policies Gold Silver Bronze Phone/PDA SVC:EndPoints Business Services Meta Data Fax Services Meta Data Business Services Meta Data Gold Silver Bronze Business is complex – Mulitchannel Solutions using Metadata Consumer Customers B2B 3rd Party Service Providers Channels High street Call centre Web Email Text Msg Business Services Repository Business Process Dynamic Assembler Integration Services layer Service Endpoints

29. Service Endpoints Account Inquiry 5am – 9pm 9pm – 5am Type = Home Loan App Status Type = Auto Credit Reports < 30 Seconds < $5.00 < 90 Seconds < $1.00 Dynamic Assembly of Business Services

30. Consumers Type = Home 5am – 9pm 9pm – 5am Branch CSR Type = Auto Customer Branch < 90 Seconds < $1.00 < 30 Seconds < $5.00 Branch Dynamic Assembly of Business Services Service Endpoints Account Inquiry Loan App Status Credit Reports

31. Consumers Service Endpoints Account Inquiry 5am – 9pm 9pm – 5am Type = Home Branch Loan App Status CSR Type = Auto Customer Credit Reports Branch < 30 Seconds < $5.00 < 90 Seconds < $1.00 Branch Dynamic Assembly of Business Services Consumers Channels

32. Consumers Service Endpoints Account Inquiry 5am – 9pm 9pm – 5am Type = Home Branch Loan App Status Policies CSR Type = Auto Business Process Customer Credit Reports Branch < 90 Seconds < $1.00 < 30 Seconds < $5.00 WSRR Core Meta Data Branch Dynamic Assembly of Business Services Consumers Channels Services Infrastructure: Gold Silver Bronze Business Services Repository SVC:EndPoints Business Services Meta Data Meta Data Meta Data Service Details

33. Consumers Service Endpoints Account Inquiry Type = Home 9pm – 5am 5am – 9pm Branch Meta Data Loan App Status Meta Data Policies CSR Type = Auto Meta Data Customer Credit Reports Branch < 30 Seconds < $5.00 < 90 Seconds < $1.00 Buss. Svcs. Dynamic Assembler Branch Dynamic Assembly of Business Services Consumers Channels Services Infrastructure: Gold Silver Bronze Business Services Repository SVC:EndPoints Business Services Business Process Find Bind & Execute Context Content Contract

34. Consumers Service Endpoints Account Inquiry Type = Home 9pm – 5am 5am – 9pm Branch Loan App Status Policies CSR Type = Auto Customer Credit Reports Branch < 30 Seconds < $5.00 < 90 Seconds < $1.00 Buss. Svcs. Dynamic Assembler < 30 Seconds < $1.00 Branch Dynamic Assembly of Business Services Consumers Channels Services Infrastructure: Gold Silver Bronze Business Services Repository SVC:EndPoints Business Services Meta Data Meta Data Meta Data Business Process Find Bind & Execute Context Content Contract

35. 4 Recent Business Case Examples • US Insurer • Traditional “vs” IBM SOA, Wall to Wall Application “vs” reuse of legacy assets in a composite application • 30% Lower TCO, Top Line Growth 14%, 12-18 months Faster delivery • US Bank • Traditional in house development “vs” SOA development • 35% reduced TCO, 80% Faster (Build and Change) • EMEA Telco • Generic SOA “vs” IBM SOA, value of pre-built content and architecture to make SOA better • 64% Faster, 20% TCO Saving, 161% ROI • EMEA Bank • Traditional P2P integration “vs” reuse with IBM SOA using Business Service Abstraction Layer to drive agility • 25%+ TCO Savings

36. EMEA Telco • Problem • Current in house monolithic application not flexible enough to support new business model • Need to support industry standards • Either use Generic SOA or IBM SOA to redeploy applications in an agile environment • Solution • Use IBM Telco Pack to identify business services and composites required and accelerate Time to Value. Use Business Service abstraction for future agility around need for personalisation and roll out across multiple Geographies • Value • IBM SOA with Telco Pack compared to generic SOA is 64% Faster with 20% TCO Saving and 161% ROI

37. EMEA Telco – 64% Time to Value (initial Build) Days Effort Generic SOA Better Reuse Fabric Business Services Rules Model Fabric + Pack Telco Pack Save 29% effort Save 35% effort

38. European Bank • Problem • Need to make Bank more flexible and agile to change • Projects in scope around Payments, Liquidity Management, Single View of Customer and Internet Bank • Subsequent Change Events around New Markets Roll Out (Globalisation), System Migrations, Acquisitions, Regulatory Requirements etc • Either use Traditional P2P approach or IBM SOA • Solution • 39 Business Services Identified covering payments, funds control, balance & transactions, accounting, FX, fees & charging, etc • Build into composites for each project with reuse across projects and further reuse at configuration rather than build level for Change Events • Value • 25%+ TCO Savings over 5 years* *Work in Progress

39. EMEA Bank – Improve TCO by 25%* Business Service Layer 25% TCO Saving Reuse SW Traditional Code Maint HW Offshore Build Metrics IBM SOA Admin *Work in Progress

40. Easy Medium Complex Comparison: SOA Solution with Ongoing Change Key: Generic BPM difficulty Source: IBM SWG Services

41. BPM with EventsValue: New Capabilities for Increased Business Value ProcessExecution Human Interaction & Collaboration Business ActivityMonitoring & Analysis BusinessProcess Modeling & Design Analytics IBM BPM Suite Events Cognos, IBM’s Largest Acquisition WebSphere Business Events WebSphere eXtreme Scale IBM SolidDB Cache Analytics Service Selection Events Policies Rules Active Content

42. IBM BPM Suite and Starter SetsValue: Making it easier to get started IBM BPM Suite Foundational Starter Sets Dynamic Business Processes Content-Aware Processes FileNet Process Designer FileNet P8 BPM FileNet P8 BAM WebSphere Business ModelerWebSphere Business Services Fabric WebSphere Business Monitor Extended Value Offerings Business Event Processing Asset repository for BPM Collaboration Tools Advanced Analytics Process Accelerators Available Starting in Q2

43. Summary : Imagine if you could make processes simple and keep them simple! • Business Services Abstract Complexity Out Of The Process • Tighter collaboration between Business and IT • Flexibility for speed of change and responsiveness • Governance around Services and Service end points • Governance around Service Lifecycle Management • A platform for delivery component applications strategies • Business Flexibility with reduced complexity

44. Thank you Changing the SOA game with fast, flexible business solutions Andrew Howarth : SOA Solutions Sales Leader UK, Ireland & South and Central Africa a@uk.ibm.com , + 44 7710 981507