SOA Consortium Promoting Business-Driven SOA "Executive Suite ...

Where SOA Means Business

Page: 1

©2007 Object Management Group

SOA Consortium Promoting Business-Driven SOA

“Executive Suite SOA”Case Study Summary

Amit Sinha – SAPFillmore Bowen - IBM

June 28, 2007http://www.soa-consortium.com/

SOA is a Business Strategy

Ele me ntal LinksPage: 2


The SOA Consortium mission, strategies, and tactics center on the following premises:

• Service Oriented Architecture adoption is a key enabler for the 21st century enterprise

• Achieving the benefits of Service Oriented Architecture requires significant changes for both IT and business executives

• Service Oriented Architecture is perceived by business executives as an IT integration and productivity story, rather than a business agility story

• Enterprise SOA practitioners would greatly benefit from a vibrant practitioner community to drive local, business-driven, SOA success, and to spur broader enterprise, and industry-wide, SOA adoption.




The SOA Consortium is working to achieve the following goals by 2010, that:

• 75% of the Global 1000 self-proclaim SOA Success• 75% of Major Government Agencies self-proclaim

SOA Success• 50% of mid-size businesses self-proclaim SOA

Success

The SOA Consortium defines SOA success in terms of business value generation, business agility, IT agility, IT productivity, and business and IT collaboration.




Search for the path for SOA AdoptionAdoption Paths follow Business Strategies

Source: 175 SAP NW and Enterprise SOA Roadmaps

23%

Cost Containment

14%

Business Process Innovation

Create new products or services

10%

Enter new markets, segments, channels

8%

Compliance

5%

Mergers, acquisitions & divestures

23%

Managing Relationships

10%

– Common paths not found for • size, industry, geographical

dimensions

– Repeatable paths seen for differing business strategies

• Companies typically focus on 1-2 key business strategies

• Path consists of 5-6 IT steps across 2.5 years



SOA SolutionsCategorized Case Studies

Proof of Concept

IT-Led

Mega

Bus

ines

s Sp

onso

rshi

p

High

Low

Low HighSOA Complexity

Business-Led • Most successful SOA initiatives are low-complexity business driven X

X

X

X

X X

X X

XX X X

X

X

X

X

XX XXX

XX



Summary: SOA provides business value

Business Need: ! Profit margin pressure and requirement for lower cost solutions ! More competitors and needed to comply with changing regulations ! Need to increase revenue ! Faster time to market! Present single view to employees and customers

Use Case: ! Implement scalable and adaptable processes ! Develop Governance process and policies ! Create Center of Excellence ! Shorten integration/update cycles! Create employee and customer portals

Results: ! Reduced business process improvement costs and time ! Improve business flexibility through creating fewer, faster business processes! Reduce business expenses through consolidation and reduced redundancy ! Faster time-to-market for new business solutions ! Reduced development expenses and decreased development time

Common themes and messages across case studies

Where SOA Means Business

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Promoting Business-Driven SOA

SOA is a Business Strategy

Case Studies



Business Need: " Company had different infrastructures from acquisitions, along with redundant business rules

across numerous legacy gateway integration solutions " Transform point-to-point infrastructure so various operating companies can function and

compete as a joint company" Continue to innovate online customer service to reduce support calls while presenting a

consistent experience across acquisitionsUse Case: " Mega SOA project to support company’s initiative to transform the IT organization" Implementing first SOA project to enable high-volume customers to verify addresses, print

labels, schedule pickups and other services " Multiple services implemented on new SOA infrastructure, using AquaLogic Service Bus as

the single point of integration" Center of Excellence to support management of BEA technologies, with SOA Assessment,

SOA Workshop, and SOA Foundation Service " Organization and Governance to support versioning strategy and consistent, correct use of

services

Results: SOA Value Delivered" Flexibility and speed in providing new services to customers and grow higher margin

businesses in areas such as Freight and Ground & grow their business overseas " Reduced support costs for supporting fragmented infrastructure for internal/external

customers" Easier integration of acquisitions though a common core set of services

Innovating the Customer ExperienceTransportation

Mega



Business Need: " Company was facing more competitors and needed to comply with government mandate to

capture customer identities for pre-paid mobile services" Improve IT response to business needs so that the carrier could be first to market with new

products and services" Change the infrastructure to support faster time to market and convergence, which led them to

SOAUse Case: " IT-led project SOA entry point" Building information access services to service enable existing enterprise systems using

AquaLogic Data Service Platform, then integrate those services with AquaLogic Service Bus" Reference architecture and transformation services work to support SOA vision" Establish Governance team to oversees services catalogue and provides guidance on service

development and reusability

Results: SOA Value Delivered" Faster time-to-market for new services" Seamless migration to their convergent system of pre-paid and post-paid customers" Lower maintenance costs" Improved scalability

Increase Revenue with Converged Services Telecommunication Carrier in Asia-Pacific

Business



Business Need: " Company wanted to cut $4 billion in costs and improve employee productivity" Accelerate the drug development process by enabling better information sharing and

coordination" Provide better visibility and more accurate time-to-market predictions for new drugs going to

market " Improve business efficiency by automating and consolidating processes, applications, and

systems into one shared platform

Use Case: " IT-led project to create a common platform for the Application Service Delivery (ASD) project,

to share infrastructure across departments" SOA Organization and strategy developed and ASD reference architecture developed with

guidance from BEA" Self-service environment for business units to develop their own portals, using the same

common infrastructure and backend, built on WebLogic Portal

Results: SOA Value Delivered" Improve visibility into product line resulting in business agility to take pharmaceutical products

market " Cost savings and reduced headcount, driving towards $4 billion in savings" Better use of core architecture, improved data integration and management, more reusability" Achieving 99.999% uptime on a stable platform

Making Business Process More Efficient Pharmaceutical

Business



Business Need: " Present a unified look and feel to teclecommunication carrier’s internal and external customers,

despite the multitude of acquisitions" Dramatically reduce the cost of operations and eliminate duplication of effort enterprise-wide by

focusing on the core 400 activities used to run the business" Leverage reusable services with backend systems, based on business rules around the 400

activitiesUse Case: " Mega project to develop “One” architecture, integrating all backend legacy systems from

acquisitions, then abstracting the data using AquaLogic Data Services Platform" 450 applications built on common Infrastructure, used across billing, organization, provisioning

and customer care" SOA portal enabling developers to review top services consumed, review library of services, and

review tips and tools" Establish Multiple Centers of Excellence, roadmap efforts, training, etc.

Results: SOA Value Delivered" Reduced network outages to zero" Stronger focus on strategic initiatives, with only 30% of IT spend on operations (vs. 85% - 95%)" More transparency by masking systems complexity from users" $80 million in value over two years, from improved efficiency, responsiveness, and adaptability

of the organization

Streamlining Business Operations Telecommunications Carrier in North America

Mega



Business Need: " One of the Latin-America divisions (country) wanted to introduce innovations to market more

quickly to counteract competitive threats and provide more value to merchants and member banks

" Develop IT infrastructure to support multiple types of transactions on the POS (point-of-sale) network

" Open legacy systems and service-enable their existing platform to respond more quickly to business needs

Use Case: " Initial IT-led project for creating and implementing the SOA approach " Developed a services gateway to open and connect COBOL-based legacy systems to newer

applications, using Tuxedo, WebLogic Integration and WebLogic Server" Enhanced POS network functionality to support cash and card-based bill payment by merchants " Created an Online portal customizable for customers, suppliers and stakeholders, using

WebLogic Portal

Results: SOA Value Delivered" Shortened project development times and faster time to market – projects that used to take a

year to complete now completed in three to six months" Maintaining 30% growth for the next 5 – 10 years and increasing revenue from new products" Higher customer satisfaction" Reduced costs for customers to use services

Introducing New Services to Market Credit Card Company IT



Business Need: " Continue to meet business needs throughout M&A activities" Re-vamp IT infrastructure to lower operational costs and support integration of recent and

future acquisitions" Build reusable services to make IT predictable and consistent in the delivery of services

Use Case: " IT-led project to develop the Enterprise Services Platform (ESP), a central platform supporting

all business units leveraging reusable services" Services are to be shared across the enterprise using AquaLogic Service Bus and classifying

the services based on taxonomies using AquaLogic Service Registry" First applications migrated to ESP include call center application, digital phone service, and

mobile phone provisioning " SOA strategy developed in collaboration with BEA and implemented by a large SI

Results: SOA Value Delivered" Lowered mobile phone provisioning costs by 67% due to ESP migration (from $15 to $5)" Reduced cost of third-party development bid by 50% due to SOA environment" Faster development times (hours vs. weeks) due to SOA environment and automated tools

created" Anticipated benefits include operational savings for IT development and maintenance and

increased IT flexibility due to services reusability

Improve IT Responsiveness North American Wireless Carrier IT



Business Need: " Operation in 46 states; 13,000 employees " Due diligence on customers as required

by Know Your Customer provision of the Patriot Act

" Needed an accurate and cost-effective program

" Required management tools to monitor and measure the performance of third party service providers participating in the process

Use Case: " Automated data collection, quality control,

exception handling, and reporting" Created work items for data entry service

provider" Data entry into KYC data store was made

easy" Ability to experiment with ‘what if’

scenarios and model

Decrease business costs First Horizon Case Study

Financial Services

Results: SOA Value Delivered" Reduced personnel costs associated with manual processing by 40%

Business



Business Need: " Serve half of all the large commercial engines" Engine maintenance accounts for a significant

amount of the total maintenance cost" Each engine has 30,000 components—100 of which

are required to be actively tracked" Speedy delivery of engine maintenance data" Single point of access to online services

Use Case: " Create composite apps using AquaLogic Interaction,

Collaboration and Process" Establish granular security rights and

personalization to support competing" Customers on the same platform" Organize information around unique engine

numbers

Improve Customer Satisfaction Pratt & Whitney Case Study

Transportation

Results: SOA Value Delivered" Tripled customer satisfaction with largest customers; $500,000 savings per repair

Business



Business Need: " Support 69,000 independent insurance

agents " Standardize communication with 7,000

employees of varying technical sophistication

" Disjointed set of intranets Data spread across multiple back-office systems; not easy to find data when needed

" Insurance regulations require tight data security

Use Case: " SOA-based MyAflac employee portal

unifies, organizes & secures access to data

" Simplified new-customer enrollment; automated payment to agents

" Employee and agent self-serve functionality replaced many print/mail processes

Improve Productivity AFLAC Inc. Case Study

Financial Services

Results: SOA Value Delivered" Productivity up 50%; hard costs down $3.2M/year; call-center activity down 30%

Business



Business Need: " Serve 15 million people " Drive costs out of operations" Streamline regulatory compliance " Minimal support for customer self-

service" CSRs lacked 360 view into customer data " Limited leverage of IT assets; many silos" Proprietary technology; slow change

Use Case: " Enterprise-wide SOA supports billing,

customer care, automated meter reading, customer self-service, CSR desktop, audit compliance, supply chain integration

" Reach, usage and value of legacy assets (e.g., ERP system) extended

Develop new Business Services Pacific Gas & Electric Company Case Study

Utilities

Results: SOA Value Delivered" Infrastructure costs cut by millions annually; innovative services developed rapidly

Mega



Business Need: " Operations in 67 countries " Rapidly changing industry (new media,

digital content, mobile devices, changing biz models

" Integration across platforms and between LOBs

" Slow development/change methodology" Ability to support digital studio initiatives" Wireless content distribution

Use Case: " SOA infrastructure for Portal Foundation

and Application & Integration Foundation

" Management of finance, business operations, talent, B2B integration, and assets

" New fulfillment systems, new cash-to-contract system, global identity management

Service Consolidation Sony Pictures Entertainment Case Study

Entertainment

Results: SOA Value Delivered" 11 rights systems consolidated into one; year-end close accelerated by 50%

IT



Business Need: " Manage world’s largest office products

company" Communicate with worldwide staff " Ensure positive, consistent customer

experience" Mass emails to employees ineffective" Product databases not centralized,

synchronized" Reporting systems unwieldy, not scalable,

and unable to provide timely information

Use Case: " Staples@Work enterprise portal provides

unified access to reports, product & promotional information, self-serve HR tools, company news, helpdesk, and more

" SOA allows enterprise apps to be service-enabled and presented as portlets

" Role-based access for effective security, optimal employee productivity

Business Cost Reductions Staples Case Study

Retail

Results: SOA Value Delivered" Saving thousands of hours and millions of dollars monthly across 1,884 locations

Business



SOA GovernanceIBM CIO’s office

Business Need: : • IBM adopted Service-Oriented Architecture (SOA), to enable better flexibility, increase

reuse, and respond quickly to changing business needs, • IBM needed effective policies, processes and tools to capitalize on the potential of SOA

across the enterprise.

Use Case: : • Assigning decision rights • Implementing measurements and control • Integrating the people, processes, information and assets

central to SOA initiatives.

Results: • Align IT initiatives with business needs, • Enable business transformation, • Simplify end-to-end enterprise integration, • Maximize the value of its investment in SOA.

IT



Business View Diagram Business Need: " Cross Silo End-to-End Application

Development " Automated Policy enforcement " Fast response to business requests

Use Case: Policy requirements " Policy Creation " Service Publication and Discovery" Policy Enforcement " Policy Management " Policy Storage

Results: SOA Value Delivered" Immediate value from Policy Libraries " Continuous enforcement ensures services are built right from day one " Acceleration of the design, development and delivery of new services

SOA Governance Driving out costs and improving business agility

Financial Industry

- Business Services

Project 1

Project 2

Project N

QA Deployment OperationsDevelopment

Policies

management

Internal Clients External Clients

Business Logic

HR

Business Logic

Finance

Business Logic

CRM

Business Logic

ERP

Business Logic

Legacy

new business processes

Maintenance

Con

form

ance

- Governance

POC



Business View Diagram Business Need: " “We need to increase customer

satisfaction and decrease operation cycle time.”

" “We need flexible systems to meet changing business needs quickly.”

Use Case: Organizational Impacts " Adoption of definition of a long-term

SOA technology roadmap" Leverage of existing skills, knowledge

and policies" Organizational changes to support " Active Transition Management based on

effective communication

Results: SOA Value Delivered! Improving customer satisfaction (sales and delivery to support cycle)

! Reducing customer data duplication and providing near real time access to vehicle information

! Increasing agility through a governance focus! driving shared infrastructure and services across the organization! ease of partner integration (e.g. Dealer access to vehicle or customer information

SOA GovernanceIncreasing agility through a governance focus

Automobile Manufacturer

Visibility

Accountability

Traceability Predictability

Agility

ICE Delivery

Excellence Thought

Leadership Governance

Visibility

Accountability

Traceability Predictability

Agility

ICE Delivery

Excellence Thought

Leadership Governance

Mission & VisionESB Services

Governance ModelOrganizational

Model

TMS VerticalRepresentation

Executive Sponsor

TMS HorizontalRepresentative

Other C-level ITexecutives

Director

BusinessService Analyst (s)

IntegrationSpecialist (s) –

ESB

IntegrationArchitect (s) –

ESB

Service Registrar / Libratian

Lead Architect (s)

Knowledge &Asset Manager Project

Coordinator

Director

BusinessService

Champion

ChiefArchitect

ICE Leadership

Team

Frameworks

InfrastructureArchitect (s)

TMSOperations

TMSSecurity

InfrastructureArchitect (s)

ICE Advisory Committee

TMS Horizontal and Vertical IS

Organization

ICE Core Team

Executive Sponsor

Predominantly Business Role

Predominantly IT Role

Sr, Executive Level / Business andIT Composite Role

DataArchitect (s)

Business



Self Service Permit

ConstituenciesMinistry

Harbor Entry

Taxi Permit

...

Business Need: Change in Public Sector" Decreasing budgets require optimized

resource allocation and usage" Public pressure to increase

responsiveness to business and citizens" Agility to adopt changing priorities

Use Case: Self Services for Permits" Responsiveness to citizens, e.g. ship

captains gets permits faster" Scalable and adaptable process across

other permit types" More capabilities for budget allocation

to increase overall service

Results: SOA Value Delivered" Rapid transformation and reuse of processes and services (e.g. taxi permit, harbor entry

license, “any” permit)" Automated process eliminates errors and shorten the response cycles" End-to-end process integration (e.g. financials) on the same platform allows to scale the

usage of self services to a significant extent (e.g. 30,000 permits/year to grow up to 800,000 permits/year

Managing RelationshipsResponsive End-to-End Citizen Self Service

Ministry of Transportation and Water Management, PS

Business



360°View

360°View

360°View

Enterprise SOA Enables a 360º Customer View

Managing Relationships360° customer view of processes and data

Standard Bank South Africa

Business Need: Change in Banking" Retail bank customer mix is more

demanding while less loyalty" Revenue growth through customer

oriented offerings

Results: Enterprise SOA Value Delivered" Improved customer management (e.g. cross selling, loyalty management through 360º view

on customers" Reduced processes complexity by referring only to one central source of customer data –

“one version of truth”" Increased stability, adaptiveness and control in changing banking processes

Use Case: One Customer View across all processes" Shift from a product focus to a customer

centric strategy" Harmonizing the needs of the customers" Long-term customer relationships

Mega



AR Clerk Cash ManagerCustomer

Invoice Review Authorize Pay Settle

Analyze

Enterprise SOA Enables a Shorter Invoice-Cash Cycle

Business Process Innovation: Enabling a New Business Model

GISA GmbH

Business Need: Managing Growth

" Highly competitive market" Strong growth strategy until 2011" Current process of invoice management is

not adjusted to support this growth

Use Case: Shorter Invoice Cash Cycle " Reduce Days of Sales Outstanding

(DSO) and improved liquidity" Process efficiency in invoice processing" Improve customer service quality

Results: Enterprise SOA Value Delivered" Built on SAP Enterprise Services for electronic bill presentment and payment " Saved process cost through closer customer involvement and streamlined process " Shorter invoice-cash cycle by improved customer services (Access to relevant info)" Rapid implementation (two weeks) " Flexibility to integrate other services, 3rd party systems and to enhance the process

IT



Out-tasked (optional)

Services

3rd party devices

devices

Asset Lifecycle Mgmt

Customer

Enterprise SOA Enables Extension of the Value Chain

Business Process Innovation:Evolving from, Product Vendor to Solution Provider

Endress & Hauser (IM&C Industry)

Business Need: Change in IM&C" Product commoditization" IP and parts piracy threat" Decreased customer loyalty

Results: Enterprise SOA Value Delivered" Centralized asset lifecycle management of E&H and 3rd party devices" Flexible deployment options – out-tasked, customer portal, SAP composite application" 2x revenue growth rate versus market in 2005 " 30% internal cost reduction through standardized architecture and communication

Use Case: Aftermarket Service Opportunity" Regain customer loyalty" New revenue streams" Innovative solution offering

Business



Business Process Innovation:Process Masters Share ProcessesHubert Burda Media (Media Industry)

Business Need: Change in Media" Lower print circulation due to internet" Higher advertising sales competition" Extensive margin pressure

Use Case: Out-Tasking of Distribution Chain" New revenue streams" Requirement: Cut cost by 20% to reach

competitive pricing

Enterprise SOA Enables ExternalUsage of the Distribution Value Chain

3rd Party Publisher

Hubert Burda

Results: Enterprise SOA Value Delivered" Automated processes eliminate high cost manual collaboration" Modularized processes enable flexibility to offer out-tasking" Flexible IT landscape shareable with 3rd party publishers" Stepwise project – first “go live” in only 6 months

Business



Enterprise SOA Enables Faster Consolidation of Operations

Valero

Acquired Company

…

Mergers and Acquisitions:Bringing Acquisitions Online Faster

Valero Energy (Oil and Gas)Business Need: Change in Oil and Gas" Limitations on access to reserves and remote

exploration opportunities " Margin pressure and risk through market

volatility

Use Case: Shorten Acquisition Cycles" Faster growth and value chain presence by

mergers and acquisitions" Minimize business disruption and cost in post

merger activities" Requirement: Shorten post merger integration

cycles from 6 months down to 2-8 weeks

Results: Enterprise SOA Value Delivered" Flexibility and speed in making changes to business processes, for example customers

obtain price information faster at terminals" Business optimization and risk mitigation: accurate real time commercial, financial and

profitability data across the value chain" System reliability: simplification of interfaces by duplicate master data reduction

Business



Integrated Management ConsoleBusiness Need: Improve Interoperability within & across organizations" Meet the emerging mission-critical needs

of our customers" Improve collaboration with customers &

business units" Provide interoperable industry platform

Use Case: Elements of the Platform" Rich User Experience" Data-Driven Architecture" User-Driven Emergency Applications" Low-Cost Deployment and Management

Results: SOA Value Delivered" Deliver enhanced functionality, intelligence and interoperability that today’s complex events

demand" Provide modular industry platform to build “as-needed” safety and security solutions" API family enables connectivity to Federal Signal products and solutions as well as industry

solutions from other providers " Easier integration and support of new products and services with single platform

Business-Driven SOABuilding an Interoperable Industry Platform for Public Safety, Security, and Well-being

Federal Signal

Business



FS Codespear SmartMsgBusiness Need: Fail-safe communication for everyone" Overcome barriers of disparate hardware,

communication mediums and native languages " Fully redundant for first responder

communications during emergency situations" Bridge communications with other agencies on

demand

Use Case: Full communications interoperability and alert notification" Leverages/utilizes existing Infrastructure" Real-Time communication across all

devices" Targeted mass alert notification " IP-based & highly scalable" Secure & encrypted

Results: SOA Value Delivered" Software architecture provides flexibility for quick device updates which allows for faster time-

to-market for new solutions " Reduced development expense and time by leveraging modular architecture for enabling all

Federal Signal products and services" Messaging interface leverages Federal Signal’s industry platform to communicate

with products & services and can be managed via Integrated Management Console

Business-Driven SOA Interoperable communications platform that works any time, any place, and with any device

Federal Signal

Business

SOA Consortium Promoting Business-Driven SOA "Executive Suite ...

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