Software Industry Trend: Composite Business Applications

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1 Software Industry Trend: Composite Business Applications Bill Fay BPM Specialist IBM ABPMP Fall Mini-Conference September 26, IBM Corporation

2 Here Are Your Take-Aways: BPM is becoming increasingly popular in our industry Composite Business Applications implement a form of BPM BPM and CBAs are SOA based CBAs leverage business (vs. basic) services CBAs enable business and IT agility 2

3 What is BPM? IBM Software Group Business Process Management: IT View: A business centric approach to application development/deployment Begins with a Business Process Model Integration Developers then assemble components which are deployed to a Process Server which can then be monitored in real time in order to optimize the process Done correctly, BPM automates business processes and helps IT better respond to the needs of the business 3

4 What is a CBA? COMPOSITE + BUSINESS + APPLICATION Made up of distinct components + Performs a business task + A computer program with a user interface 4

5 Business Services A Business Service is a business function whose execution can be adapted at runtime based on Business Metadata, Business Policy and User Context. Designed at business level to represent a discrete business function (e.g. check credit, open account) Higher level of abstraction than basic services Can provide flexible, adaptable behavior based on business policy and user context Derived from disparate IT resources Can be combined into loosely coupled Composite Business Applications Composite Business Applications built upon BPM with Business Services as Building Blocks Align Business Intent with IT Execution 5

6 Value of Business Services (vs. basic services) Business Services What Discrete business function assembled from services How Pull business-level usage information into one place Why Easier change and greater flexibility by dynamically adapting the business function's behavior Business Value Choreo-graphed Services Basic Services Process automation using Basic Services An interface to a simple task Pull functionality out of underlying systems and assemble into processes Well accepted technical standards Easier to manage and control the processes Simplify Integration 6

7 Analysts agree composite business applications are the right direction and next evolutionary step for BPM calls them "SOBAs" Service Oriented Business Applications (SOBAs) will enable enterprises to dynamically compose and decompose applications according to business needs. calls them "Dynamic Applications" Dynamic applications software that adds more visibility and collaboration to today's business processes, while adapting more quickly and cost-effectively to their changes represent IT's worthiest hope for enabling real business agility. calls them "Composite Applications" Composite applications logic and data collected from multiple IT sources and harnessed with web services standards are rapidly becoming the development standard of choice in all IT organizations. 7

8 Composite Business Application Platform Roadmaps BEA - September 11, 2007 BEA Systems, Inc., today announced the introduction of a dynamic business application platform initiative that BEA expects to transform software innovation at the application tier. The initiative, code-named Genesis, converges Service-Oriented Architecture (SOA), Business Process Management (BPM), enterprise social computing and other technologies to help enable users as well as IT to deliver dynamic solutions that plug into existing IT application environments. With AquaLogic, we recognized that dynamic business applications could solve this problem. SOA was the first step in that journey. Genesis will be the next step to extend BEA s AquaLogic vision. BEA has the core competencies and vision to deliver the infrastructure needed to create dynamic business applications, Microsoft November 2, 2007 Microsoft announces Oslo roadmap for composite applications. Microsoft has announced a new roadmap, code named Oslo, for the development of composite applications designed to help customers with new workflow foundation models that will be directly executable with the next release of BizTalk, a business process management server. This multiyear, multiproduct effort is planned to be built on the model-driven and service-enabled principles of Microsoft Dynamic IT, and extends the benefit of a service-oriented architecture (SOA). 8

9 Auto Insurance Claims Example Current claims environment is manual and labor intensive impacting ability to be flexible and agile Regional Weather related Event Scheduling Compare claim variables to existing policy Analysis for red flags to identify fraudulent behavior Reconciliation and Claim Payout Claim Submitted / FNOL Assignment Adjudication Fraud Detection Settlement EXAMPLE: Inability to quickly change claims process to handle influx of claims due to regional weather event 9

10 Traditional approach Route to new partner to outsource glass claims in affected area." Agent / Broker Claimant Answer: Embed role-based logic in Portal Add overflow capacity for influx of new claims due to severe weather event. Operational Capabilities Infrastructure Services Auto Claims System Credit Answer: Integration locationslogic coded into ESB or services interface If high value vehicle route to human expert. Answer: New process created in BPM Business Policies Business Services Pre-Approval Policies Application flexibility and change comes at too high a cost Risk Assessment Policies Business and integration logic is fragmented and embedded in multiple Unacceptable time and cost to launch new solutions Disappointing customer experience (limited CRM Home access, Claims inconsistencies, not System personalized) 10

11 Business Services approach: Business Policies Business Services Role-Based Users Interaction Services Agent / Broker Adjudication Business Service Pre-Approval Policies Risk Assessment Policies Dynamically modify normal workflow Claimant Dynamically add claims partner Dynamically increase processing capacity Operational Capabilities Infrastructure Services Auto Claims System Credit CRM Home Claims System 11

12 Bill Fay 12

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