Case Study: Adoption of SOA at the IRS

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1 Case Study: Adoption of SOA at the IRS Nitin S. Naik Director, Enterprise Architecture October 2, 2012

2 Agenda Overview of IRS IT Shared Services Vision SOA Roadmap and Maturity Levels Where Do We Stand Today Some Key Challenges Q&A 2

3 Overview of the IRS Enterprise Business METRIC Individual Master File Taxpayer Accounts Business Master File Taxpayer Accounts Tax Exempt and Government Entities (e.g. Federal, state & local governments, federal agencies, charities, Indian tribes, pension plans) Tax Revenues Collected Per Year MAGNITUDE 220 Million 43.4 Million 3 Million Entities Manage over $ 8 Trillion in Assets $ 2.5 Trillion IRS Employees 100,000+ Total IRS Locations Over 1,000 IRS Computing Centers 3 Business Partners Tens of Thousands IRS Legacy Business Systems > 500 IRS Legacy Data Storage > 100 terabytes Taxpayer Inquiries per Week 23 Million Tax Law Changes per Year > 200 IRS is a large, highly complex environment and plays a critical role in the US Government. 3

4 Technology Challenge of Tax Administration Reporting Workflow, Work Management, Case Management, The IRS Tax Administration System, which collects more than $2 trillion Returns, Payments, Correspondence Revenue Accounting Financial Daily/ in revenue every year, is heavily dependent on over 500 computer On Demand Capture systems, some were designed in the 1960 s Data From Paper Submissions Processing Paper Daily/ On Demand Daily Validate & Perfect Data Master Files Weekly Weekly Weekly Post, Settle Accounts Active Accounts (10% max.) Daily/Weekly & On Demand Integrated Data Retrieval System Treasury, GAO Pending Updates Customer Communications Taxpayer (Telephone & Correspondence) Customer Service Systems Examination Systems Electronic Returns, Payments, Correspondence Electronic Receipt of Submissions Taxpayer Account Processing (Computing Center) Corporate Files Online Collection Systems Criminal Investigation Systems Dail y Dail y Databases with replicated & new data Internal Management Systems (Human Resources, Internal Financial Management, Records Management, etc.) Master File Application Programs embed the logic for thousands of business processes IRS has the equivalent of a Y2K every year All IT that supports filing season must be delivered before next tax season 4

5 SOA Adoption Maturity 1 SOA Management Define vision and strategy; establish funding mechanisms (as part of projects) Refine vision and strategy; establish funding mechanisms (as part of programs) Refine vision and strategy; services are managed as business assets 2 Framework & Processes Extended ELC processes are available for services development Extended ELC processes are available for services O&M processes after deployment Separate solutions development lifecycle and service development lifecycle defined SOA Roadmap Key Components Projects & Program Organization Service Architecture Operational Infrastructure Services are identified as part of projects for agility, repeatability and cost savings Define SOA Governance Operating model (low on adoption) Define Service Architecture (project level policies including security) Deploy infrastructure to support SOA (ESB, Service Registry and other tools) Achieve cross program project planning and collaboration to develop and reuse services Adopt SOA Governance Operating model Update Service Architecture (Enterprise policies including security) Policy driven use of SOA infrastructure by multiple programs in a shared environment Program planning based on service portfolio and policy driven reuse Business goals include agility related rewards/recognition Service architecture supports Enterprise Level Service Portfolio Plan Business/IT convergence Service is a business resource 7 Lifecycle Infrastructure Services are project level assets; Developed and deployed as part of projects Governance through Enterprise level service registry and run-time monitoring Governance over usage and federated permissions Level 1 (Low) Level 2 (Medium) Long Term View (Level-3) SOA Adoption Maturity Levels 5

6 Layered Service Architecture Vision Apply Automation Solutions that best support IRS Business Processes to increase staff productivity. Provides common user interface to system services Aligns with user tasks and Business Domains Provides external (public or partner) access to selected system services The business process service layer is derived from the EA Business Architecture The primary input is a Business Process Model Provides process specific context (e.g., business rules, user ontology) Business has ownership, IT has stewardship Provides business alignment. Critical link in support of Business/IT linkage Orchestrates services in other layers being used to support business process steps and workflows Data centric view derived from a domain model (class diagram) or Logical ERD Captures enterprise business rules for objects of interest Aggregates data from multiple data stores. Responsible for keeping disparate data stores consistent These services enable rapid assembly at the business process service layer in support of specific business process steps and workflows Business Vocabulary Enables enterprise standardization. Highest level of reuse Allows a single implementation to support multiple business concepts Provides commoditization of software functionality across the enterprise Security Insulates application from heterogeneous technologies and provides insulation from external technologies. Hides complexity for highly generic components Enables containment of legacy functionality Facilitates COTS or 3rd party service usage Orchestration Messaging Mediation Registry Service Management Infrastructure (Services that enable the SOA) Compliance Service Monitor 6

7 Shared Services Architecture Adoption Guidance Documentation and Groundwork Comprehensive technical guidance for developing Shared Services has been provided to all programs and implemented in Affordable Care Act. Comprehensive and growing XML vocabulary built at the enterprise-level for use by all projects. A big milestone achievement towards applying the first principle of Service- Orientation, i.e. Standardized Service Contract Infrastructure/Tools Built and deployed supporting infrastructure that includes an ESB from Software AG called WebMethods 7.1.2, WebSphere MQ Broker, and a Service Registry product also from Software AG called Centrasite Deployed Services Developed and deployed 12 Common Services Java wrapped 18 Command Codes Developed a Shared Services Identification framework for identifying highly reusable common business services applied this framework to the IMF Transformation (CADE2) program identifying 23 candidate-services 7

8 Challenges Ahead! Funding Challenge: The existing Project Based funding model is non-conducive for Shared or Common Services adoption as it leaves little incentive for them to look at the bigger picture, and produce Composable Service Components for future reuse. Technical Challenges: SOA is a non-trivial, highly technical design paradigm which is not yet widely accepted at IRS. SOA adoption at IRS requires substantial field-guidance; helping the projects make the right architectural decisions, on the spot, at the right time. Service Development Lifecycle is not incorporated into the existing ELC Building Common Services requires additional steps and roles beyond what is covered under our standard ELC. The new steps like, Service Inventory Analysis, Service Modeling, Service-Oriented Design, Service Usage Monitoring, Service Discovery and Service Versioning needs to be incorporated in our existing ELC. Organizational Challenge: Who will be the custodian of a Shared Service once it s completed and delivered? 8

9 Q&A Thank You 9

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