Aligning business and IT with the Service-Oriented Architecture (SOA)

Transcription

1 Aligning business and IT with the Service-Oriented Architecture (SOA) Terri Bennett Schoenrock Executive Director, Service-Oriented Architecture, HP Services Hewlett-Packard 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2 It bothers me that people talk about the business as if it s some monolithic thing made up of every department that s not IT. CIO Magazine, Editor in Chief Abbie Lundberg 2 October 19, 2006

3 Today SOA implementations Every market segment Supporting key business initiatives Provide more mainstream role for IT Results Better value from IT Increased agility Ability to react to change IT aligned with other business units 3 October 19, 2006

4 Typical non-alignment of business and IT Manufacturing Product development Finance Packaging Marketing Strategic? planning IT 4 October 19, 2006

5 The SOA approach Manufacturing Product development Finance Packaging Marketing IT Strategic planning 5 October 19, 2006

6 6 October 19, % ROI

7 Run IT as a business In companies that have experienced highly successful with SOA transformations Achieving significant ROI Improving customer retention Improving customer satisfaction Increasing revenues Cutting costs You can t tell an IT manager from a line of business manager 7 October 19, 2006

8 Allaying fears about SOA SOA is not a radically new architectural approach. SOA is much more than technology. SOA represents maturation of: Thinking Technology IT Architectures SOA is designed for flexibility. SOA transformation allows the alignment of business and IT. 8 October 19, 2006

9 SOA is driven by business initiatives 9 October 19, 2006

10 SOA adoption 4 5 A virtual, real-time Adaptive Enterprise A shared enterprise-level SOA strategy Web services and business process services executed at the project level Some services and data are shared for departmental applications or solutions SOA education/awareness 10 October 19, 2006

11 HP approach

12 HP SOA Strategy HP Global Capabilities Breadth HP SOA Competency Centers Depth Qualified Personnel HP Products HP SOA Manager HP SOA Partners Methods & Processes HP Services Reach HP SOA Services Choice HP Professions 12 October 19, 2006

13 SOA transformation stages Visioning Capitalizing on change Assessment Business IT aligned 13 October 19, 2006 Full visibility IT Business Realization Governance and enterprise architecture

14 HP SOA Domain Model Business People Program Mgmt. Governance Architecture Enabling technologies Operations & mgmt. The HP SOA domain model outlines the key areas of capability, activity and assets needed to successfully adopt and operate an SOA. Supply & demand 14 October 19, 2006

15 Domain Model think beyond technology 15 October 19, 2006 Skills and expertise Experience Culture Communication Education IT Governance Organization structure Compliance management Portfolio management Service Infrastructure (ESB, Registry, Service hosts, Development Environment, etc ) Legacy migration/integration Technical infrastructure (Servers, Storage, Network, etc ) IT services for business Vendors and suppliers for IT Sourcing strategies Service level contracts, obligations and agreements Business People Program Mgmt. Governance Architecture Enabling Technologies Operations & Mgmt. Supply & Demand Business goals and strategy Business metrics Stakeholder participation Business/IT Synchronization Program management Project management Transformation program POC, pilot and roll-out Assessment & measurement Enterprise Architecture Solution/Service Architecture Principles, Standards and Models Domain Architecture (Security, Management, Network, etc ) Day-to-day service operations Management of SOA IT Integrated management of business & IT

16 SOA Maturity Model SOA Maturity Levels Level 1 Level 2 Level 3 Level 4 Level 5 Ad-hoc Basic Standardized Managed Adaptive Business Minimal business interest in SOA Business is aware of SOA Business generally complies with SOA Business proactively supports SOA SOA is fundamental to business operations Program mgmt. SOA is project focused SOA efforts are business unit based SOA is federated, but not integrated SOA is integrated at corporate level SLA is enterprise-wide and extends to partners Governance Some acknowledgement of governance issues Some governance processes, individual responsibility Governance guidelines defined and integrated into process The value of governance is fully understood Advanced understanding of IT governance SOA Domains Architecture Operations & mgmt. Supply and demand Limited or ineffective architecture No management of services, infrastructure elements only Business needs are all meant using technology components Architecture program exists, and architecture is defined Management of applications and infrastructure in terms of SLAs All services are provided internally All IT initiatives comply with the architecture Management of business services Value based sourcing decisions Architecture is business driven and is auditably linked Proactive management of business services linked to component services Services sourced from multiple providers Architecture and business are executed as integrated Management of business services integrated into business operations Dynamic service sourcing from multiple sources People Staff have little or no knowledge of SOA Understanding of SOA is limited to IT management & architects SOA education is required for all IT staff Ongoing SOA education is attended by all staff SOI is embraced by all staff and actively promoted Enabling technologies There is no service infrastructure in place SOA infrastructure is limited to exposing functionality as services Standardised enterprise-wide SOA infrastructure Large-scale managed SOA infrastructure Integrated, dynamic SOA infrastructure 16 October 19, 2006

17 Maturity levels SOA Domains 17 October 19, 2006 Industry-specific Agility Assessment Agility Analysis Order Handling 5.0 Danger Zone Service Configuration Service Problem Sales Service Planning and Development Resource Planning and Resource Inventory Management Canada Resource Maintenance Thailand 5 and Restoration USA - West Japan Service Quality Management - Central Agility Singapore USA - East Management 4.0 Invoicing and collections Customer QoS Management Problem Handling 3.0 Resource Provisioning Rating and Development Discounting Resource Data Management USA Importance 3 Taiwan Malaysia Australia UK & Ireland Hungary Spain 2 1 Italy Mexico Sweden Netherlands Germany France Sales Order Handling Svc Planning Development Service Configuration Resource Plan. & Dev. Resource Provisioning Problem Handling Customer QoS Management Svc Problem Management Service Quality Management Resource Invent. Mgmt Res. Mtce. & Restoration Invoicing and collections Rating and Discounting Res. Data Management HP SOA Domain Model Current state Desired state Business People Program Mgmt. Governance Architecture Enabling technologies Operations & mgmt. Supply & demand SOA Transformation Roadmap

18 HP experience

19 Hewlett-Packard Company Global provider of technology solutions to consumers, businesses and institutions Challenge HP Partner Direct: customer-facing, eventdriven integrated enterprise Web-based and wireless customer interaction Real-time applied data mining Develop direct sell supply chain Reduce time needed to connect retail partners Solution New solution SOA and web services Service consumer SDKs Web services consumed by all resellers (no 1-1 modifications required) Live verification of order coherence, order confirmation, price and delivery guarantees synchronized with supply chain (SAP to web services) Results/Benefits Lowered total cost of ownership (reduced staff and license costs) Recovered $1M in license fees Responded to change 2 to 5x faster Multiplied business unit s revenues 3x in 6 months 19 October 19, 2006

20 Top six HP post-merger challenges Budget cuts were de rigueur. Employees had to re-think the way they work. HP/Compaq merger was a key impetus of change. Rationalization, consolidation and integration were needed immediately! More than one hundred storefronts existed. Consolidation was mandatory. Consolidation required simultaneous revision of front and back-end systems. Tight coupling would cause repetitive reworking. An eclectic collection of technologies existed. Rationalization and integration were required. Continue to meet business objectives Systems had to remain operational during the change period. 20 October 19, 2006

21 ebusiness SOA approach: SOA rationale HP Global Operations + IT (GO+IT) GO+IT was mandated to provide shared business capabilities across HP organizations worldwide Needed to have regional responsibility and customization Strong SOA appeal since it supported: Simultaneous rationalization and consolidation of customer-facing solutions and back-end systems An ideal approach to the many-to-many integration problem Avoidance of re-integration problem when something changes Need to insulate front- and back-end functionality from technology Consequently support heterogeneous technologies Fit with company s business operating model HP/Compaq merger revised the business operating model 21 October 19, 2006

22 Quantitative results realized using SOA Released more than 30 services accessible via hp.com, marketing sites, e-commerce customer storefronts, Partner Portals, and Direct B2B connections Supported higher volume online interactions 1.2M+ logins per day 5M+ visitors per week $10B revenue handled per year Received SOA support from business, operations and IT sponsors SOA investments over past three years: 65% service production; 35% service consumption (portal and storefront user interfaces) Lowered cost to serve $16M annual asset retirement savings Reduced time to deliver Cut implementation time and cost by as much as 50% for consumers of shared services 22 October 19, 2006

23 The bottom line freeing IT investment for innovation % 23% 5% 45% 55% Application innovation ROI for Business & IT 72% 30% 42% 10% 15% 30% 45% Infrastructure innovation Application maintenance Infrastructure maintenance IT budget as % of revenue Source: HP-IT 23 October 19, 2006

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