How Service Oriented Architecture Improves Business Flexibility
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1 How Service Oriented Architecture Improves Business Flexibility What s on the Minds of 450 of the World s Leading CEOs CEO needs Revenue growth with cost containment Key competency: responsiveness Critical success factor: enable effectiveness of people and processes CIO challenges Aligning IT and business goals to grow revenue and contain costs Building responsiveness and agility into the organization through IT How can IT help enable people and teams to be more effective Source: CEO Study of 456 WW CEOs IBM Corporation Source: Operating Environment Market Drivers Study, IBM Corp WebSphere - 01 How SOA Improves Business Flexibility 2 1
2 Answering These Three Challenges is What an On Demand Business is All About An On Demand Business is an enterprise whose business processes integrated end-to-end across the company and with key partners, suppliers and customers can respond with flexibility and speed to customer demand, market opportunity or external threat. multiple companies, seamless process WebSphere - 01 How SOA Improves Business Flexibility 3 On Demand Business Characteristics Business processes are automated Customers have online access Suppliers and business partners are integrated into the business processes Business processes are well-defined and execute end-to-end without interruption Business processes are flexible Quickly created and modified Responsive to changing customer demand Replace inefficient existing business processes Business flexibility is a key characteristic of an on demand business Let s take a look at an example WebSphere - 01 How SOA Improves Business Flexibility 4 2
3 Traditional Business Process Example: Order to Cash Process = business function Manual Steps Marketing Application Order Mgmt Application Fulfillment Application Marketing Inventory Management Collections Business process is embedded in three separate applications Business functions are tightly coupled within applications Business functions have unique and proprietary interfaces, restricting re-use Manual steps introduce functional gaps in the process Process cannot be easily measured and managed Changes to the process are difficult to implement New processes which are designed this way require long development cycles Result: Business cannot operate on demand WebSphere - 01 How SOA Improves Business Flexibility 5 On Demand Flexibility: Customer Self Service Customer Order entry Division Customers now order online using a web browser and the Internet Business partners can order using a web service call from their own process Customers are better served WebSphere - 01 How SOA Improves Business Flexibility 6 3
4 On Demand Flexibility: Shared Services Customer Division Shared Services Marketing Billing Receivables Common business functions are shared across the enterprise Marketing, Billing, and Receivables are handled uniformly Enterprise can scale across divisions and lower costs WebSphere - 01 How SOA Improves Business Flexibility 7 On Demand Flexibility: Vendor Managed Inventory Customer Division Shared Services Supplier Inventory Management Minimize or eliminate inventory management function Costs are reduced because less inventory is needed Inventory servicing is better because of supplier integration with the process WebSphere - 01 How SOA Improves Business Flexibility 8 4
5 On Demand Flexibility: Outsource Customer Division Shared Services Supplier Outsourced Shipping Shipping is not a core competency Shipping companies (e.g. FedEx, DHL, UPS) have more capabilities Reduce shipping infrastructure and overhead costs WebSphere - 01 How SOA Improves Business Flexibility 9 On Demand Flexibility: Improve the Process Customer Remove bottleneck Division Shared Services Supplier Outsourced Identify and remove bottlenecks in the process Customize the business rules and policies to better serve customers A more efficient business process costs less Alternative flow path WebSphere - 01 How SOA Improves Business Flexibility 10 5
6 Benefits of Business Flexibility Better responsiveness to customers Quickly implement new business processes to support new products and services Change existing business processes to serve the customer better Supports a changing business environment Mergers, acquisitions, divestitures Provides an environment that encourages innovation Reduces operational costs Business functions are built once and re-used Lower maintenance costs Inefficiencies are easily removed An on demand business is more competitive WebSphere - 01 How SOA Improves Business Flexibility 11 Service Oriented Architecture (SOA) Enables On Demand Business Let s begin by defining what Service Oriented Architecture is A system architecture in which business functions are built as components (services) that are loosely-coupled and well-defined to support interoperability, and to improve flexibility and re-use Business functions are exposed as services A service has a standardized interface Services become building blocks that can be reused in developing other applications Development focus is on application assembly rather than on implementation details WebSphere - 01 How SOA Improves Business Flexibility 12 6
7 What is a Service? A service is an business function packaged as a reusable component that can be used in a business process Service Requester Service Provider Service A service either provides information to the service requester, or facilitates a change to business data from one valid and consistent state to another Web Services Description Language (WSDL) is used to define the service Service requesters communicate with services using Extensible Markup Language (XML) messages A web service is a specific type of service WebSphere - 01 How SOA Improves Business Flexibility 13 WSDL Provides a Standard Interface Service Requester Request (XML) Response (XML) Service Provider Service Description (WSDL) Service Service Description (WSDL) porttype - what the service does (list of operations) message description of data used by each operation types data type definitions for messages (usually xsd schemas) binding - how the service is invoked (e.g. SOAP/HTTP, SOAP/JMS, etc.) port - specifies the address where the service is located WSDL is an XML document which describes everything a service requester needs to use a service Service requester uses WSDL document to bind to the service XML messages are passed between the requester and service WebSphere - 01 How SOA Improves Business Flexibility 14 7
8 Implementing a Service Oriented Architecture How do you go from this environment Marketing Application Order Mgmt Application Fulfillment Application To this environment? Customer Division Shared Services Supplier Outsourced There are 4 steps to implementing SOA. WebSphere - 01 How SOA Improves Business Flexibility 15 SOA Step 1 - Componentized Business Design Identify elements of existing business processes Business functions implemented by applications Data used by processes Services provided by systems Tasks done by people Identify consumers of these elements People Applications Examples: People and applications Enterprise Applications Elements Calculate credit score Process credit application Business Partner Elements Place order Check shipping status Data Elements Customer records Billing data Inventory data WebSphere - 01 How SOA Improves Business Flexibility 16 8
9 SOA Step 2 Expose Elements of Business Processes as Services Expose elements as services that can be invoked Define clients for people to consume services Browsers, fat clients, mobile, and others A Web Services Description Language (WSDL) interface is generated for each service The data structure used by the service is defined in Extensible Markup Language (XML) Service Providers and Consumers WSDL WSDL WSDL WSDL WSDL WSDL People and applications Application Services Partner Services Data Services WebSphere - 01 How SOA Improves Business Flexibility 17 SOA Step 3 Connect Services with an Enterprise Service Bus Enterprise Service Bus functions Connects services and service requesters regardless of location, transport, or organizational boundary Reliably passes messages between services and service requesters Mediates between service requested and service provided Time, rate, format, location, protocol of requests/responses Enterprise Service Bus WSDL WSDL WSDL WSDL WSDL WSDL People and applications Application Services Partner Services Data Services WebSphere - 01 How SOA Improves Business Flexibility 18 9
10 SOA Step 4 Integrate Services Using Service Combining Frameworks Service Combining Frameworks People Integration Process Integration Information Integration Enterprise Service Bus WSDL WSDL WSDL WSDL WSDL WSDL People and Applications Application Services Partner Services Data Services WebSphere - 01 How SOA Improves Business Flexibility 19 WebSphere Has Built-in Support for SOA Tools to create services quickly Infrastructure to execute services Adapters for services which execute existing application function (i.e. SAP, Siebel, CICS, PeopleSoft) Enterprise Service Bus to connect services and service requesters Service combining frameworks to integrate services into applications Deliver services to user desktops Assemble services into business processes Combine multiple data services into a single data service WebSphere - 01 How SOA Improves Business Flexibility 20 10
11 WebSphere Products We Will Discuss Today Tools WebSphere Business Integration Modeler WebSphere Studio Application Developer Integration Edition Web Application Server WebSphere Business Integration Server Foundation WebSphere Portal Server WebSphere Everyplace Access Adapters SAP WebSphere Business Integration Adapter Enterprise Service Bus WebSphere MQ WebSphere Business Integration Message Broker Data Integration WebSphere Information Integrator WebSphere Product Center WebSphere - 01 How SOA Improves Business Flexibility 21 Today s Objectives Explain and demonstrate WebSphere s capabilities as an SOA platform Compare WebSphere to competitive offerings Microsoft.NET SAP NetWeaver BEA, Oracle, TIBCO Prove that WebSphere is the best platform for enabling business flexibility WebSphere - 01 How SOA Improves Business Flexibility 22 11
12 Today s Case Study: On Demand Insurance An established insurance company Wants to be an industry leader at providing customer service Implementing WebSphere to improve its business WebSphere - 01 How SOA Improves Business Flexibility 23 On Demand Insurance Business Problems 1. We lose customers because we process new policy applications too slowly. 2. Our Claims Processing is time consuming and inefficient. 3. We need to do a better job of attracting new customers. WebSphere, and its support for Service Oriented Architecture, can help you solve these problems. Let s see how.. ODI CEO IBM WebSphere - 01 How SOA Improves Business Flexibility 24 12
13 Agenda Introduction How Service Oriented Architecture Improves Business Flexibility Create New Business Processes Using Service Oriented Architecture Simplify Information Access Break Improve Productivity Using Portal and Pervasive Technologies Connect Applications and Services Together with the Enterprise Service Bus Why WebSphere Provides a Superior Foundation How to Get Started Today 9:00 9:20 9:20 10:20 10:20 10:40 10:40 10:55 10:55 11:35 11:35 12:15 12:15 12:55 12:55 1:00 WebSphere - 01 How SOA Improves Business Flexibility 25 For Additional Information Developers: IBM Business Partners: Seminar Materials and Registration: Competitive Material (IBM only): WebSphere - 01 How SOA Improves Business Flexibility 26 13
14 The Future is On Demand WebSphere - 01 How SOA Improves Business Flexibility 27 14
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