Defining Business and Operational Services

Yiwei Chen Updated on 2008

[email protected]

DEFINING BUSINESS SERVICES SOA from Corporate & Operation Perspectives

* Keynotes for SOA Conferences and Symposiums in Beijing, Kuala Lumpur, and Dubai during 2007 and 2008

2

HIGHLIGHTS

IT & Business Gap

Defining Corporate Business Services

Defining Business Service Delivery Paradigm Servicing Channels

Operational Services

Role-based Organization

SOA is the Enabler

Merging IT & Business Gap

3

WIRELESS’ SERVICE DISRUPTION

A leading 3G wireless provider in US in 2003

“A major CRM system had crashed during an upgrade, and customer service representatives could not set up or access new accounts. The system breakdowns, which continued through February 2004, swamped other … systems, gridlocked customer service phone banks and sent furious customers scurrying to other providers.”

– CIO Magazine

Acquired by another company soon afterwards

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WHAT IS SOA?

New IT framework?

New technology?

Integration?

Software as a service?

Web services?

Better Governance?

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VIEWING FROM A CORPORATE PERSPECTIVE

New IT framework?

New technology?

Integration?

Software as a service?

Web services?

Better Governance?

Can SOA enable the corporate to focus on business, nothing but business?

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IT CHALLENGES IN BUSINESS’S EYE

Corporate

Business Operation

IT Organization

IT Project

Lack of understanding to evolving business

Business’s blindness into IT systems

SOA perceptions Arbitrariness in defining services

Extremely complex

Simply solving the same old business problems as the old technologies had done

7

IT CHALLENGES IN BUSINESS’ EYES

Lack of understanding to evolving business

Business’s blindness into IT systems

SOA perceptions

Arbitrariness in defining services

Extremely complex

Simply solving the same old business problems as the old technologies had done

Corporate

Show me the real value!

Corporate

Business Operation

IT Organization

IT Project

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FOCUS ON CORPORATE INTERESTS

Maximize the asset value

Minimize the risks

Manage all key liabilities

Customers

Employees

Users

Suppliers

Investors

Regulators

…

Customers

Corporate

InvestorsEmployees

SuppliersUsers

Regulators

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BUSINESS SERVICES & PROCESSES

Corporate

Customers

Investors Employees

Suppliers Users

Regulators

Dep

osi

t Pro

du

ct

SOA makes it technically feasible for a corporate to focus on business

10


SOA makes it technically feasible for a corporate to focus on business

Corporate BusinessServices

Customers

Investors Employees

Suppliers Users

Regulators

Dep

osi

t Pro

du

ct

Corporate business services can be triggered by

Service recipients, or

Internal operations

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Corporate business services can be triggered by

Service recipients, or

Internal operations

Business processes drive the corporate business services

A workflow to go through for delivering the corporate business service

Can be managed, automated, and optimized

Business Processes

Corporate BusinessServices

Customers

Investors Employees

Suppliers Users

Regulators

Dep

osi

t Pro

du

ct

12

BUSINESS SERVICES DELIVERY PARADIGM

Operational services orchestrate…

Business processes that drive…

Corporate business services to be delivered to…

Service recipients through…

Servicing channels

Operational services are all other services outside of

corporate business services

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OPERATIONAL SERVICES

Servicing Channel

Servicing Channel

Corporate Business Service


Operational Service

Operational Service

Operational Service

Operational Service

Business process

Operation

Process

Operation

Process


Servicing Channel

A business process activates operational services

An operational service can initiate a new operational business process

An operational business process may also trigger a corporate business service

Timed billing

Procurement

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CORPORATE BUSINESS SERVICES VS. OPERATIONAL SERVICES

Service Type Service Recipient

Performer Legal Liability Servicing Channels

Financial Transaction


External entity Corporate Corporate Attended & unattended

Usually happens

Operational Service Internal business process

Individual Principal

None None None

Servicing Channel Service

Servicing channel Individual Principal

None None None

* Servicing channel service is a special type of operational service

Unambiguously defining services

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DEMAND FOR A ROLE-BASED ORGANIZATION

Qualified principals for performing operational service Employees

Temporary workers

Outsourced staff

External service providers

Enterprise applications

Robots

A true role-based organization Collection of operational service

performer roles

Well managed principal to role assignments

Ensure the business continuity

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ORGANIZATION PARADIGM SHIFT

- Courtesy of New Yorker

"Dammit, our board has three robots on it, and now one guy is voting with them against the other four humans at the table, resulting in a tie. That makes me scowl."

Human and enterprise applications are

working in together for the same business

process to deliver a corporate business

service.

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BUSINESS CONTINUITY PLANNING

Reta

inin

g Busi

ness

Process

On-boardin

g Busi

ness

Process

Career

Develo

pm

ent

Operati

onal

Process

Perfo

rm

ance

Operati

onal

Process

Recruit

ing

Corp. Bus. s

ervic

e

Benefi

t Corp. Bus. S

ervic

e

Com

pensa

tion

Corp. Bus. S

ervic

e

Career P

lannin

g O

perati

onal

Servic

e

Train

ing

Operati

onal

Servic

e

CEO

COO

HR Director

Benefi

t A

dm

in.

Recruit

er

Com

pensa

tion

Adm

in.

Career A

dvis

or

On-boardin

g M

gr.

Reta

inin

g M

gr.

Career M

gr.

Perfo

rm

ance M

gr.

Train

ing

Coordin

ato

r

Service Outsourcing

Staff Outsourcing

Service Outsourcing

Staff Outsourcing

Service Outsourcing

3rd Standby

Staff Outsourcing

Employee

Service Outsourcing

Staff Outsourcing

Staff Outsourcing

2nd Standby

Employee

Employee

Employee

Employee

Service Outsourcing

1st Standby

Employee

Enterprise Application

Enterprise Application

Employee

Employee

Active

Benefit Administrator

Recruiter Role

Compensation Administrator

Career Advisor

Training Coordinator

Role

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SERVICING CHANNELS

Conduit for enterprise to offer corporate business services to recipients

Performers of the servicing channel services are performing corporate business services on corporate behalf

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INTERACTION MODEL

Consists of


Recipient

Provides Services to


Business

Process

Corporate

Business

Service

Servicing

Channel

Servicing

Channel

Service

Servicing

Channel

Service

Performer

Service

Performer

Operational

Service

Is a Kind of

DrivesOrchestrates

Is Provided toRecipientsThrough

Performs

Operates

Performs

Is a Kind of

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SUPPLY-CHAIN EXAMPLE

Consists of


Recipient

Provides Services to


Business

Process

Corporate

Business

Service

Servicing

Channel

Servicing

Channel

Service

Servicing

Channel

Service

Performer

Service

Performer

Operational

Service

Is a Kind of

DrivesOrchestrates

Is Provided toRecipientsThrough

Performs

Operates

Performs

Is a Kind of

Organizational Roles• Procurement Manager

• Logistics Manager

• Cataloguer

• Buyer

• Material Controller

• Dispatcher

Operational Services• Production Planning• Transportation Planning• Logistics Management• Demand Planning• Warehousing• Manufacturing

Business Processes• Plan-to-Produce• Trigger-to-Replenishment• Order-to-Cash• Demand-to-Fulfill• Build-to-Order

Corporate Business Services• Sourcing• Procurement• Order Fulfillment• Invoicing & Settlement• Customized Product Configuration

Servicing Channels• Attended Human Direct

• Attended Human Indirect

• Unattended Portal

• Unattended B2B

Service Recipients• Public

• Customers

• Suppliers

• Employees

• Auditors

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SOA IS THE ENABLING PARADIGM

SOA encapsulates the corporate business services while

automating the invocation of business processes

SOA makes the business process manageable through

agile workflow

SOA makes role-based organization operationally feasible

SOA makes all services transparent for monitoring and

governance

SOA makes business scalable, highly available, and agile

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MERGING IT-BUSINESS GAP

Corporate fully owns the corporate business services

Business operation drives the business processes and operational services

IT is part of the business operation

IT builds and supports the SOA infrastructure for enterprise applications and software tools that empowers

Business service management

Business process management

SAAS-nized enterprise applications

Build the new IT-business relationship

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Business Services ManagementFor

Managing Corporate Business Services

Business Process ManagementFor

Managing Corporate BusinessServices


Managing Operational Services

Business Process ManagementFor

Managing Operational Services

BusinessAnalyst

Business/Oper.Manager

Business/Oper.Specialist

Business

ExecutionBusiness

GovernanceBusiness

Strategy

OperationGovernance

OperationStrategy

OperationStrategy

Business

Monito-ring

OperationExecution

OperationGover-nance

OperationStrategy

Business/Oper.Strategist

MERGING IT-BUSINESS GAP


Managing IT Operational Services

IT SupportSpecialist

IT SystemAnalyst

IT ArchitectIT Developer IT Manager

IT

Support

ITSupport

IT

Performance

Monitoring

IT

Support

IT

Execution

ITPerformanceMonitoring

ITSupport

ITExection

ITPerformance

Monitoring

ITGovernance

ITStrategy

IT

SupportIT

Execution

ITPerformance

Monitoring

IT

Governance

ITTechnologyMonitoring

IT

Execution

ITGovernance

ITStrategy

Ownership

ITOrganization

BusinessOperation

Corporate

BusinessOperation

BusinessOperation

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CONCLUSION

SOA streamlines business services in broader sense

Business services are composed of corporate business services and operational services

SOA is the enabling technology for the novel business service delivery paradigm

The novel service delivery paradigm enables IT to well align behind business

The business-IT gap can be eventually merged

Corporate benefits from being able to be business focusing, guaranteed business continuity, and gaining true business agility

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Defining Business and Operational Services

Technology

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