SIM Academic Workshop 2006 Slide 1

ICIS 2006 Conference – SIM Academic Workshop

Leveraging Systems Development and Service Management thru use of Service Oriented Architecture (SOA) and Information Technology Service Management (ITSM)

Marc N. Haines, Ph.D.Assistant Professor Sheldon B. Lubar School of Business University of Wisconsin-MilwaukeeP.O. Box 742Milwaukee WI 53201-0742 phone: (414) 229 3773email: mhaines@uwm.eduWebsite: www.marchaines.com/uwm

Panel Discussion

Ray HovingPrincipal Consultant Ray Hoving Associates LLC

7094 Lentz RdNew Tripoli PA 18066 phone: (610) 298 8167email: ray@rayhoving.comWebsite: www.rayhoving.com

SIM Academic Workshop 2006 Slide 2

Systems Development Service Management Deliver one-time projects Deliver day-to-day services

Make specific applications work Make generic platforms work

Emphasize functionality Emphasize operability

Minimize development costs Minimize operating costs

Introduce change Manage stability

Moves on after application is built

Lives with application until it dies

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Conflicting Roles

SIM Academic Workshop 2006 Slide 3

Systems Development

Service Management

© Ray Hoving Associates LLC

Typical way to bring a system on-line

SIM Academic Workshop 2006 Slide 4

Systems Solutions Services

Purchased or custom-developed software application

Maintained application operating on infrastructure platforms

Functional utility, as seen by the customer, resulting from multiple applications and platforms

Analogy:

A car Car on the road with warranty, maintenance plan, insurance, etc.

Transportation service that gets you where you want to go per defined service levels

© Ray Hoving Associates LLC

Transforming Systems to Services

SIM Academic Workshop 2006 Slide 5

Systems Development

Service Management

Process Bridge

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A better way?

SOA ITSM

SIM Academic Workshop 2006 Slide 6

SOA

SOA Defined Service Oriented Architecture (SOA) is a paradigm

[Based on the OASIS Reference Model For Service Oriented Architecture 1.0]

Service

Interaction

ServiceDescription

Visibility

ExecutionContext

Real WorldEffect

Contract& Policy

- for organizing and utilizing distributed capabilities

- that may be under the control of different ownership domains.

- provides a powerful framework for matching needs and capabilities and

- for combining capabilities to address those needs.

-Services are the mechanism by which needs and capabilities are brought together.

- interface, description - may be used beyond scope originally conceived

SIM Academic Workshop 2006 Slide 7

SOA

SOA Today Organizations are moving to SOA

• Moving from client/server, n-tier, component-based to SOA• Moving from "proprietary SOA" to standards-based SOA• Most recent versions of major application packages are SOA-

enabled

… some are, but most are not there yet• Few organizations have large scale enterprise-level SOA in

production• 5% use a centrally managed service registry (i.e., UDDI registry)• Many organizations still in the pilot stage

"It is fair to say that 80% of the health care transactions in the state of Massachusetts today flow over a SOA architecture"

SIM Academic Workshop 2006 Slide 8

SOA

SOA Today Observed Benefits

• Shorter software development cycles, easier to deploy

• Improved interoperability with business partners

• Improved information visibility and compliance monitoring

• Improved security management

• Promotes "business thinking" among IT people

Anticipated (but not realized) Benefits• Some sharing (reuse) of services, but not as much as expected

• Emergence of new business models

SIM Academic Workshop 2006 Slide 9

SOA

SOA Today Challenges

• Technology / Tools– too many products to realize a SOA– tools for testing

• People / Skills– developers need to adjust to developing in the context of SOA– new "mindset", looking at services as "enterprise assets" rather

than project deliverables

• Organizational– funding process for SOA– need more rapid deployment processes, more agile software

development methodologies

SIM Academic Workshop 2006 Slide 10

SOA

SOA TodayPredictions

• More than 80% of current (2006) production-deployed applications will be partly or fully reengineered by 2011 to participate in the then-prevailing SOA-style business-driven application composition (0.8 probability). [Gartner]

• Service-oriented architecture (SOA) will be used in part in more than 50% of new, mission-critical applications and business processes designed in 2007, and in more than 80% by 2010 (0.7 probability). [Gartner]

• Significant challenges in governance, testing, configuration, version control, general metadata management, service-level monitoring, security, interoperability and other disciplines. These difficulties retard, but will not prevent. [Gartner]

SIM Academic Workshop 2006 Slide 11

SOA

Software development in the context of SOA Is it any different?

• Yes, some attributed to general SOA principles, others related to using open standards

How is it different?• Planning becomes a more emphasized in the context of SOA

– Coordination, communication for "enterprise services"– Silo solutions still possible in a SOA

• Design was the phase where the "most radical changes need to occur"– Pivotal role of service interface

• Testing becomes more challenging, – more integration testing, "unkown clients"

How are organizations responding?• New roles, structures, but little change in processes

SIM Academic Workshop 2006 Slide 12

SOA

SOA – Answer to the IS delivery challenge?

SOA is viewed by many IS professionals, IS researchers, as well as IT vendors as a viable approach to approach this challenge …

SOA is primarily addressing the Design and IT Architecture challenge

Only with appropriate organizational structures and processes (including structures and processes related to software development) can SOA enable improved delivery of IS Services

SIM Academic Workshop 2006 Slide 13

Service Level Management

Availability Management

Capacity Management

Financial Management

Continuity Management

Incident Management

Configuration Management

Problem Management

Change Management

Release Management

Information Technology Infrastructure Library (ITIL):

Source: ITSMF – The IT Service Management Forum Limited

Reference: http://www.itil-itsm-world.com/

Best Practices for IT Service Management

SIM Academic Workshop 2006 Slide 14

Best Practices for IT Service Management

COBIT Control Objectives for Information and related Technology Open international standard for control over information technology,

developed and promoted by the IT Governance Institute (ITGI) Also promoted by Information Systems Audit and Control

Association (ISACA) A reference framework for management, users, and IS audit, control

and security practitioners (third edition 2000) Contains tools (performance measurement elements, critical

success factors, maturity models) to assess and measure the enterprise’s IT capability for the 4 domains, 34 IT processes, and 318 control objectives

COSO In 1992, Treadway Commission (COSO) issued a landmark report:

Internal Control—Integrated Framework Provides a sound basis for establishing internal control systems and

determining their effectiveness Acceptable practices for SOX compliance

Source: IT Governance Institute and Treadway Commission

SIM Academic Workshop 2006 Slide 15

COBIT Domains and Process Areas

Source: IT Governance Institute

SIM Academic Workshop 2006 Slide 16

COBIT and COSO

Source: IT Governance Institute and Treadway Commission

SIM Academic Workshop 2006 Slide 17

SOA

ITIL and COBIT in the context of SOA

Software developers are becoming more service-minded• Easier to bridge systems development and service management

ITIL and COBIT provide proven framework for guiding the service management and governance efforts

• Best practices for Service Management via ITIL / COBIT / COSO should inform how processes for governance, monitoring, management, etc. in the context of SOA are developed

SIM Academic Workshop 2006 Slide 18

Systems Development

Service Management

Process Bridge

© Ray Hoving Associates LLC

The Better Way:Linking Best Practices, Methodologies, and Governance

SOA ITSM