Setting the stage for a new era in Business

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1 IBM SOA Setting the stage for a new era in Sugandh Mehta Distinguished Engineer IBM Global IBM Corporation What is Driving Today? The Changing Landscape in the Globally Integrated Economy Forges a strategy for Componentization Delivers Unique Value Taps into the power of Globalization Early findings from the IBM Global CEO Study to be published Spring

2 The globally integrated enterprise represents the new business design for the 21 st century Globally Integrated Enterprise Geographic Functional 3 lenses Organizational A globally integrated enterprise (GIE) has operations and strategy that is integrated across geographies, functions and organizations. It has globally shared services and assets that can be deployed worldwide allowing it to respond to market demand quickly and efficiently with global synergy and local effectiveness. 3 Sustainable Agility Needs the Power of. service orientation A way of integrating your business as linked services and the outcomes that they bring a service A repeatable business task e.g., check customer credit; open new account service oriented architecture (SOA) An IT architectural style that supports service orientation 4 2

3 Smart SOA Delivers Value to Both and IT Foundational Extend End-to-End Transform Adapt Dynamically IT 5 SOA Represents the Next Evolutionary Step to Improve Agility and Flexibility Source: Gartner 6 3

4 SOA enables IT capabilities to be utilized effectively in offering business solutions Employee Customer Partner Subscribers Solutions Oriented Applications -level "Building Blocks" IT assets exposed as services (Check balance, Check credit) Corporate resource Legacy Applications Existing Infrastructure Web app Packaged Applications Outsourced IT Assets 7 What are our Customers doing with SOA? Oriented Solutions Adaptable/Flexible Apps Based on reusable, business-level building blocks called Dynamic personalization and delivery Most flexibility, responsiveness and reuse Orchestration Process Choreography Process automation with Basic logic encapsulated within the process Some redeployment flexibility and responsiveness Choreographed Standardsbased Integration Simplify Integration Easier integration and connectivity Standardized components and Web services Based on well accepted technical standards Basic 8 4

5 What is a? are business level "building blocks" whose execution can be adapted at runtime based on business policy and user context. Example: "Credit Check" Communication Channels Policies Role-Based Users Web Portal IVR CRM Pre-Approval Policies Risk Assessment Policies CSR Technical and industry standards compliance WS-I for service interfaces MISMO for messages and transactions Consumers Operational Capabilities Credit Lookup: 3 rd Party Credit Eligibility: Legacy System Customer Profile: Packaged CRM Customer Notification: Custom J2EE 9 Understand Where You Are and Where You Are Going Knowing Where Your Industry Will be Helps Set Priorities IBM Industry Thought Leadership Insights into where your customers, competitors and industry are headed with over 35 industry-specific research papers per year CEO Report CFO Report Industry Reports Model Innovation Performance Best Practices May 2008 October, Available now 10 5

6 Operationalize Your Strategy Building Capabilities for Global Integration Delivers Unique Value Manage Value Through a Specialized Ecosystem Effectively Manage Risk and Control Forges a strategy for Componentization Enable Modular Processes Foster Global Collaboration Taps into the power of Globalization Leverage Global Assets Serve Distinct Markets Globally Integrated Enterprise (GIE) Assessment Component Model 11 Distinct Value with Every Path Regardless of Where You Choose to Engage Value to business Scope Greater agility in specific, departmental business areas Collaboration within a line of business Foundational Optimization and innovation across end-to-end business processes Coordination across lines of business Extend End-to-End model innovation to support the Globally Integrated Enterprise Enterprise-wide organizational cooperation Transform Predictive business automatically responding to market forces Enact significant shifts without direct IT involvement Adapt Dynamically Based on 5700 customers using our SOA offerings 12 6

7 Desktop, Fat Client Browser Device External System or External Directory Telephony Client Internet Internet Device Gateway Public or Public or Private Private Network Network Voice and/ Voice and/ or Data or Data Mobile Device Connector Voice Gateway Telephony Connector System Provisioning s Content Adaptation Web Gateway Partner System s Directory and Security Content Mgmt Personalization Collaboration Server Presentation Registry Web Application Server Production Firewall Process Choreography INTERNAL Integration Hub (ESB) Workload Mgmt Process Monitoring Security Mgmt Legacy Applications Enterprise Data Software Development s Architecture Provides a Foundation for the Future Aligning and IT for Agility and Growth Strategy Model Charter Value Drivers Firewall Edge Server Caching Proxy Firewall Integration Hub (ESB) Firewall System Roles, Responsibilities & Accountabilities Meeting Cycle Measures & Metrics Prioritization & Investment Related Processes Policies Organization/ Structure Architecture IT Strategy IT Architecture 13 Selecting the Right Key Agility Indicators How Well Am I Positioned for the Future? Agility and Benchmark Wizard Blueprint for Supply Chain Visibility Measuring agility is critical in setting strategic direction and making informed decisions IBM is pioneering agility performance metrics! Example: Supply Chain Agility efficiency & quality measures Perfect Order Performance Average cycle time in hours between order generation and order delivery. Finished product, first pass quality yield. Demo 14 7

8 Accelerate Deployment of Composite Applications Pre-built Assets and Best Practices for Rapid Value Composite Adaptable packaged industry services & processes IBM is positioned in the leaders quadrant: Gartner, Inc., Magic Quadrant for Application Infrastructure for New -Oriented Application Projects, 2Q07, and Gartner, Inc., Magic Quadrant for Application Infrastructure for Composite- Application Projects, 2Q07 WebSphere Fabric Industry Content Packs Accelerate deployment with new partners through industry standards Gartner, Inc., Magic Quadrant for Application Infrastructure for New -Oriented Application Projects, 2Q07, by Yefim V. Natis, Massimo Pezzini, Jess Thompson, Kimihiko Iijima, Michael Barnes, Daryl C. Plummer, Simon Hayward, 31 May Gartner, Inc., Magic Quadrant for Application Infrastructure for Composite- Application Projects, 2Q07, by Massimo Pezzini, Michael Barnes, Kimihiko Iijima, David Gootzit, Yefim V. Natis, Daryl C. Plummer, Jess Thompson, Dale Vecchio, Janelle B. Hill, Simon Hayward, 7 June The Magic Quadrants are copyrighted 2007 by Gartner, Inc. and are reused with permission, which permission should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner,Inc. s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders quadrant. In some situations, firms in the Visionary, Challenger, or Niche Player quadrants may be the right matches for an enterprise s requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner Research is intended to be one of many 15informationsources, includingother publishedinformation and direct analyst interaction. Gartner, Inc. expressly disclaimsallwarranties, express or implied, of fitness of this researchfor a particular purpose Grace Lewis Senior Member of the Technical Staff, SEI Sugandh Mehta Distinguished Engineer, IBM GBS 8

9 Oriented Enterprises will be successful when and IT are aligned Responsive to business change ROI Governance In place Follow Industry Standards Information as a service Information on Demand How information is stored & used within and outside the enterprise Security Who has access to the information, for what purpose and how are they using that information 17 Some Research Challenges Related to SOA Strategy Strategy Selection -How are SOA strategies matched to business goals? -Are there patterns? ROI on SOA Adoption -How are SOA projects justified, given the intangible benefits of SOA adoption? -What is the best way to create a business case? Metrics -What are good metrics to measure benefits of SOA adoption? 9

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