SOA Executive Overview Achieve Business Agility, October 23, Ray Daniel, Connectivity and Integration Executive

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1 SOA Executive Overview Achieve Business Agility, October 23, 2012 Ray Daniel, Connectivity and Integration Executive 1

2 2 These trends are changing entire industries Mobile 2 Cloud Big Data Social

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8 8 Expanding from the transactional enterprise to Engaging the World MQTT HTTP HTTP HTTP, SOAP MDM HTTP, SOAP, Big Data protocols MQTT MQ MQ SMS, HTTP, Websockets... File, FTP MQ, MQFTE AS1, AS2, AS3... 8

9 CEOs Know Their Businesses Must Be More Agile Responses show organizations experiencing significant change = to a large or very large extent 87% 86% More Volatile More Uncertain 82% More Complex Source: IBM Institute for Business Value 2010 Global CEO Study 74% Structurally Different We have to be change animals Michele McKenzie President and CEO, Canadian Tourism Commission Agile businesses have: 40% higher EPS growth 45% higher ROI 10% faster revenue growth 2.6X higher return on capital 23% lower valuation volatility than their industry peers Source: 2010 Convergence Index, BTM Institute 9

10 Successful CEOs are Charting Their Roadmap to Agility Accelerate change with optimized Customers processes and decisions E-Banking Business Customers Business Process Management Branch Site Customers Strengthen relationships and integrate with customers, suppliers and partners Customers ATM Government Oversight Commercial Control Customers costs Branch and Site add flexibility 3 rd Party Services with virtualization and Underwriting cloud International Bank Internal Employees Commercial Finance LOB Legal Services Services LOB Home Mtg LOB 3 rd Party Services ATM Service Oriented Architecture Payment Service Providers Dynamic Outsourced Application service Infrastructure providers Mortgage providers Across Their Dynamic Business Network 10

11 Putting enterprises on a path to agility with a clear execution roadmap Business Value Level 4 Dynamic Level 5 Agile Business and IT are converged and have collaborated are prepared to handle unpredicted changes. Agile operating model in place that responds to unpredicted changes in business markets. Dynamic and context aware processes, services, and policies. Continuous Optimization and sustained innovation occurs. Business analytics flag and proactively alert when business results are out of range and dynamically identify what could be changed Business driven process optimization. Business users can make frequent and regular business changes (processes, information, rules, or events). Business performance is measured and updated for continuous improvement. Business and IT can make frequent changes as IT model represents how the business operates Level 3 Standardized Business Architecture defined. Business performance metrics are monitored and measured. Business Processes are standardized, explicit, visible, and reusable. Governance models in place for process management & improvement. Portfolio of business policies, rules, processes and services is managed. Level 2 Awareness Level 1 Initial Some level of process documentation and automation of human tasks. Business process integration is minimal. Execution traceable to strategic objectives. KPI s defined but not adequately leveraged. Governance framework loosely defined. Business processes are ad-hoc and workflows are minimally automated. Business users are dependent on IT to make process changes. Process redundancy is the norm. Business processes locked in application. Processes and KPI s minimally documented. Metrics are not available and rarely used to track performance. Maturity 11

12 Why should business stakeholders care about SOA? 15% 40% % of IT Budget 85% 60% Changing the Business Running the Business Current State Desired State 12 12

13 The Vertical Silo Problem Division A Division B Division C Division D Division E The significant problems that exit in the world today cannot be solved by the level of thinking that created them. - Albert Einstein 13

14 Service-Oriented Architecture (SOA) An approach to designing, implementing and integrating IT systems that Exposes application interfaces as reusable services Makes these services accessible throughout the enterprise Utilizes open standards and Messaging Connectivity for interapplication communication Loosely couples applications through data mediation functions such as routing and transformation Into this 14 14

15 Why SOA? Because a service-oriented enterprise is an adaptable enterprise Services can be used rapidly for business process change and optimization Enterprise shared services lower development and project costs Centralized and standardized services improve service levels and uptime Optimized connectivity lowers operational and capital costs Strategy and Planning Services Business Events and Services Development Services Interaction Services Partner Services Process Services Enterprise Service Bus Business Application Services Asset and Registry Services Information Services Access Services Management Services 15 Infrastructure Services Lifecycle Services

16 What is SOA Connectivity? SOA Connectivity consists of a number of components The underlying Messaging Connectivity The Enterprise Service Bus (ESB), made up of one or more technologies The Enterprise Service Registry and Repository Adapters for connecting to all applications and data in the environment Service Consumers Application A Service Registry Adapter Services Application 1 Application B Application C Enterprise Service Bus Messaging Backbone Application 2 Application 3 Application D Adapter Application 4 16

17 Strengthen relationships and integrate customers, suppliers and partners with Messaging and SOA Connectivity International Bank Internal Employees Customers Maximize service reuse across the enterprise Customers Federate across SOA domains Business including cloud and smart devices E-Banking Enhance flexibility and security across the enterprise Branch Site ATM Customers Customers ATM Government Oversight Commercial Finance LOB Home Mtg LOB 3 rd Party Services Services LOB Payment Service Providers Commercial Customers Branch Site Underwriting 3 rd Party Services Legal Services Outsourced service providers Mortgage providers INTERCONNECTED 17

18 What is Messaging Connectivity and why is it needed? In today s rapidly changing business climate, customers need to get data From any source delivered to any target In any form, from messages to files to special protocols and data formats Reliably, without interruption Securely, with access control, privacy and integrity Efficiently, over any network at high speed The WebSphere MQ family of products is the leader in Messaging Connectivity, providing The ability to connect to almost any source of data, and deliver to unlimited destinations A variety of data delivery mechanisms messages, files, streams The most reliable service levels in the industry Security to meet the highest levels of regulatory compliance Unparalleled performance and scalability MQ 18 18

19 IBM s Universal Messaging Backbone Proven, Flexible, Robust business data delivery from anywhere to everywhere IBM UNIVERSAL MESSAGING Business Transactions MQ Sense and Respond MQ Telemetry Leveraging System z MQ for z/os Web applications MQ HTTP Bridge Managed File Transfer MQ File Transfer Edition Real-time Awareness MQ Low Latency Messaging Extra Data Protection MQ Advanced Message Security Cloud Platform-as-a-Service MQ Hypervisor Edition 19

20 What is an Enterprise Service Bus (ESB)? Connects everything to everything Transforms between different data formats Identifies and distributes Business events ESB Converts between different transport protocols Matches & routes communications between services 20

21 What are the benefits of an ESB? Universal Business Goals Cost Optimization to slash operational and maintenance expense and maximize efficiency necessary for all economic climates + threats Agility to take advantage of new revenue opportunities and address competitive Reduced operational complexity and cost through loose coupling Reduced development time and cost through service re-use Stronger compliance controls through enterprise visibility Improved business agility through service composition Improved technical agility through service abstraction Quick Returns Integrate new customers and partners up to 80% faster Improve performance more than 10x, with lower costs Achieve full ROI within as few as 6 months 21

22 Why Governance is Important A real life scenario Sales Accounting department Legal App. 1 App. 2 Order fulfillment Purchasing Currency conversion service 1. A currency service is created for a specific line of business (LOB) 2. Other LOBs start using the service 3. LOBs increase use of service / quality suffers 4. Service is fixed at provider s expense 5. Fix works temporarily but problem reappears 6. Maintenance costs soar / provider ends service 22

23 The WebSphere Service Registry and Repository provides Value throughout the SOA Lifecycle WebSphere Service Registry and Repository Publish Find Enrich Manage Govern Publish Find Encourage Reuse Find and reuse services for building blocks for new composite applications. Enrich Enhance Connectivity Enable dynamic and efficient interactions between services at runtime. Govern Enable Governance Govern services throughout the service lifecycle Manage Help optimize service performance Enable enforcement of policies. Impact analysis 23

24 Runtime selection and invocation interactions Dynamic selection WebSphere Service Registry and Repository Publish Find Enrich Manage Govern (3) Send request for information (4) Retrieves candidate providers information Message Message ESB Mediation Message Service (1) A Message is received (2) Invokes a selection mediation. (5) Executes matching algorithm to identify the provider service for requestor service (6) Message is transformed and routed to the selected endpoint. 24

25 Pro-actively protect access to services using SLAs Avoid impact to business services availability 2 Messages Per Second 310 Messages Per Per Second Sales Accounting department Legal App. 1 App. 2 Order fulfillment Purchasing Currency conversion service Reject rogue consumers 1. A currency service is created for a specific line of business (LOB) 2. Other LOBs start using the service 3. A policy is defined to reject rogue consumers 4. Legal & Sales negotiate service levels 5. Legal hit max level. Other LOBs unaffected 6. Legal re-negotiate an increased service level 25

26 Hybrid Cloud Connectivity Private Clouds On-premise Applications Public Clouds (SaaS) Companies want to take advantage of best-of-breed SaaS offerings They need to integrate on-premise applications with the Cloud These on-premise apps are often complex, using proprietary formats Integration must be simplified in order to gain the full Cloud advantages 26

27 Why is Hybrid Cloud Connectivity needed? 27 Source: Saugatuck Technology Inc., 2009 Global User Survey; n=1793

28 28 WebSphere Cast Iron Integration: The Leader in Cloud Connectivity Connects Hybrid World of Cloud and On-Premise Applications In Days

29 29 API Management - What s driving the buzz?

30 Enabling the API Economy Strengthen the ecosystem APIs represent a public persona for your business Businesses Are Evolving stores (800) ###s web sites Web APIs are the new, fast-growing business channel Nurture Innovation by exposing key business assets publicly and internally as APIs leverage the large, free and innovative app developers on the web today Expand brand loyalty and open new channels by attracting innovative app developers to leverage APIs establish a app developer community to promote and market the API as a product Empower change and growth by leveraging analytics Gain real-time insight into APIs usage & developer activity to find new opportunities & rapidly react Integration, Assembly, Insight, Control, Security, Reliability, Scalability Developer Communities Developer Portal IBM Web API Management SaaS IaaS BPaaS Web Apps Mobile Business API Insight Assembly & Lifecycle Mgmt Enterprise Boundary Business IT Internal Systems 30

31 The Engaging Enterprise Apps Business Users want to engage Customers in new markets They need to Externalize the Enterprise Business User Enterprise Customer They need to get Apps in front of these Customers Apps need APIs that Externalize the Enterprise App Developers use APIs IT Guy App Developers are now External to the Enterprise The Platform App Developer Enterprises wants to tap into innovation from a large community of developers, not just developers they employ IT Guys need to secure, scale and support the externalized Enterprise Business Users and IT Guys needs Insights so they can respond to business needs 31

32 Business events in the right business context enable proactive management Event POS purchase Event No meter signal Event Parts assembly received Business Context 2nd purchase in a week and total purchases this year > $1000 Business Context Third consecutive period without signal Business Context 3rd late delivery from third party logistics supplier in the last week Action: Offer loyalty program membership before customer leaves the store Action: Trigger automated troubleshooting process Action: Prioritize delivery to installation site and initiate followup process with supplier 32

33 Hindi Teşekkür ederim Turkish Russian Traditional Chinese Gracias Spanish Arabic Grazie Italian Thank You English Danke German Obrigado Portuguese Merci French Multumesc Romanian Simplified Chinese Korean Japanese 33

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