Accelerating Your SOA Implementation

BEA Confidential. | 1

Accelerating Your SOA Implementation

Bret DixonSVP, Professional ServicesBEA Systems

November 7th, 2006

Agenda

The Market Today

Moving To The Next Stage of SOA Implementation

Summary

Agenda

The Market Today


Summary

The Debate Is Over: A New Approach For Delivering IT Applications Has Been Embraced

Presentation Services

Shared Business Services

Information and Access Services

Se

rvices M

an

ag

em

en

t

Se

rvice B

us

Co

mm

on

Se

rvices

Se

rvic

e In

fras

truc

ture

La

ye

r

Non-Functional Requirements

Sales

B2E

Engineering

B2C

Service

Partners

Customers

Composite Applications

Standards

Development Tools

Configuration Management

System Management

Network Management

Provisioning

Business Activity

Monitoring

Directories

Patterns

Enterprise Information Systems Data and Middleware

Custom Applications

Third Party Products (Erp, CRM, etc.)

Databases MiddleWareInteractions

(TUXEDO, MQ Series,ect.)

“Role-based” Composite

Applications…

…connect to business services, built and managed with an

integrated suite on open standards, with

supporting infrastructure…

…using content from “Vanilla” ERP and legacy applications

“ It seems that if SOA really takes over, the software that links applications together, rather than the applications themselves, will become the most important strategic decision that CIOs make.”- Christopher Koch

Executive Editor, CIO Magazine February 2006

The Stakes Couldn’t Be Higher In Enterprise Software

SOA Starting Points

ProcessProjects

IT-LedProjects

MegaProjects

Bu

sin

ess

Sp

on

sors

hip

High

Low

Low HighSOA Complexity

Business-LedProjects

The Next Big SOA Challenge Moving Past the Division

No SOA

SOAAd Hoc

SOADefined

SOARepeatable

SOAManaged

SOAOptimized

Exploring

SOA MaturityLevel

Noimplementations

Cross divisionalservices

Enterprise levelservices

Division levelservices

Project levelservices

Expanding Exploiting

Enterprise-wide SOA up 200%

Department-wide SOA up 300%,

Companies Are Moving Forward Now With SOA

Q: What Stage Is Your Company Currently In With Respect to SOA?

Don't Know

Not Planning to Deploy

Evaluation

Pilot Projects

Department-wide SOA

Enterprise-wide SOA

20052006

32%

21%

20%

13%

4%

8%

12%

7%

25%

28%

12%

16%

BEA SOA Cost BenefitsDeployment StatusBEA SOA Cost BenefitsDeployment Status

Indicate the status of SOA deployment in your organization.

36%

34%

30% Deployed in one pilot project

Deployed beyond pilot phase todeployment on 2-3 projects

Deployed enterprise-wide

43%

38%

19% 25%

30%

45%

US

High number of Enterprise-wide deployments

Europe

Agenda

The Market Today


Summary

Plan for SOA in Multiple Dimensions The BEA SOA Domain Model

Organization &Governance

Costs & Benefits

Business Strategy and

Process

Architecture

Building Blocks

Projects and Applications

Organization & Governance

©

Moving To The Next SOA Stage Six Key Initiatives


Define & Capture Your

Benefits

Connect the Business to the

Capability

Establish An Enterprise

Architecture

Make Service Engineering a

Discipline

Build A Stream of Connected

Projects

Align The Organization for

Shareholder Value

Business

Architecture

Building BlocksOrganization

Benefits

Projects

Moving To The Next SOA Stage3 Types Of Leadership

Costs & Benefits

Business Strategy &

Process

Projects &

Applications


Projects


Capability

Requires Developmental

Leadership



Benefits


Shareholder Value


Architecture


Discipline

Requires Architectural Leadership

Requires Operational Leadership

Costs & Benefits



Benefits


Shareholder Value

Moving To The Next SOA Stage Meeting The Operational Challenges

How do I justify the costs?

How do we make SOA O&G work between Business Units, or between countries?

BEA SOA Cost BenefitsSOA Barriers

No61%

Yes39%

31%

34%

42%

47%

54%

C-level skeptics

Unable to build acase

ROI not strongenough

Securingfunding

Lack ofconfidence

Which of the following are roadblocks to justifying SOA in your organization?

Is SOA justification currently impeding the start or extension of SOA projects?

Nearly 40% of SOA projects are impeded due to lack of SOA confidence

in big payoff

Strategic Soft dollar Hard dollar

Mix

Define & Capture Your Benefits: Three Levels of Justification

SOA as a matter of fundamental business technology strategy

SOA as core requirement for business agility

SOA ROI calculated for specific projects

SOA specific costs quantified and offset by benefits on specific projects

SOA costs and benefits categories identified

SOA benefits/root causes articulated, savings range indicated

Source: Forrester SOA Investment Strategies 2006

BEA SOA Cost BenefitsSOA Reuse Expectations

What level of reuse do you expect?

1%

5%

21%

34%

20%

9%

5%6%

no reuse 1% to 10% 11% to20%

21% to30%

31% to40%

41% to50%

>50% Unsure

75% of companies expect 11- 40% reuse

BEA SOA Cost BenefitsSOA Vision

1%

4%

5%

5%

6%

6%

21%

23%

30%

16%

25%

32%

36%

48%

53%

56%

65%

Major competitorhas SOA initiative

Mergers andacquisitions

New channels

Regulatorycompliance

New products orservices

Informationvisibility

Faster time tomarket

Customer serviceimprovement

IT cost savingsExpected Areas of Impact

Primary Driver

What is the primary driver for the SOA vision in your organization?

In which areas do you expect to see impact on your business as a

result of deployment?

£4.1m Benefit

Smooth

£200k Benefit

Equator

NWW

Atlas2

Scarlett

£325k Benefit

DMR

£70k Benefit

StrategicVestings

£500k Benefit

ServiceDifferentiation

£250k Benefit

EMEA Financial Services Customer Complex Interdependency Between Costs & Benefits

Total Investment = £6.2m

Total Benefits = £9.7m

E-Enablement

£5.1m Benefit

MEPFramework

Weblogic

OCDB

SPL

4Front

4 Front Benefits

• Reduction in avg time to handle a call

• Ease in training, outsource-ability

• Increased client satisfaction

E-Enablement Benefits

• Extended services to Financial Planners

• Extended services to Business Partners

• Reduced IT project costs by 75%

Costs & Benefits



Benefits


Shareholder Value

Moving To The Next SOA Stage Meeting The Operational Challenges

How do I justify the costs?

How do we make SOA O&G work between Business Units, or between countries?

Organization and Governance Matters

“In 2006, lack of working governance mechanisms in medium to large (more than 50 services) post-pilot SOA projects will be the most common reason for project failure (0.8 probability)”

-Paolo Malinverno, Gartner Group

Organization and Governance: Rationalization

There is no recognized approach to rationalization of shared components within and across portfolios

Organization &

Governance

• Each Portfolio/LOB has its own technology assets that are not used across the enterprise

• Within portfolios there are multiple instances of redundant functionality

Business Strategy

& Process

Architecture

Costs & Benefits

Projects &

Applications

BuildingBlocks

Projects &

Applications

Business Strategy &

Process

Architecture

Costs & Benefits

BuildingBlocks


Organization and Governance: Funding

The funding process IS the governance model

Organization &

Governance

Business Strategy

& Process

Architecture

Costs & Benefits

Projects &

Applications

BuildingBlocks

Projects &

Applications

Business Strategy &

Process

Architecture

Costs & Benefits

BuildingBlocks


•Businesses have their own line of credit to choose and implement ad-hoc solutions

•Most often ad-hoc solution selection does not align well with the future strategy

SOAGovernance

Process

SOACommunication

and Tools

SOA Principles

High level principals abouthow SOA is used in the business

SOA Roadmap

Reference Architecture, Standards and Guidelines that feed into

SOA Roadmap

SOA Services Infrastructure Layer

Shared Business, Common Servicesand Infrastructure components

SOA Investment

Which prioritized SOAinitiatives to invest in

IT G

ove

rnan

ceE

xist

ing

Pro

cess

es a

nd S

truc

ture

s

Co

mp

lem

en

ts

an

d I

nfl

ue

nce

s Influ

en

ce

s

Alig

n

Drives

Drives

Supports

Utilize

Enables

IT P

ortfo

lioE

nterprise Decisions

SO

A B

usiness Service P

ortfolioS

OA

Segm

entation Decisions

SOAOrganization

Structure

SOAGovernance

Process

SOACommunication

and Tools

SOA Principles

High level principals abouthow SOA is used in the business

SOA Roadmap

Reference Architecture, Standards and Guidelines that feed into

SOA Roadmap

SOA Services Infrastructure Layer

Shared Business, Common Servicesand Infrastructure components

SOA Investment

Which prioritized SOAinitiatives to invest in

IT G

ove

rnan

ceE

xist

ing

Pro

cess

es a

nd S

truc

ture

s

Co

mp

lem

en

ts

an

d I

nfl

ue

nce

s Influ

en

ce

s

Alig

n

Drives

Drives

Supports

Utilize

Enables

IT P

ortfo

lioE

nterprise Decisions

SO

A B

usiness Service P

ortfolioS

OA

Segm

entation Decisions

SOAOrganization

Structure

Enterprise Implementation Requires an Enterprise SOA Governance Framework

How do we define an Enterprise SOA Reference Architecture, and what does it contain?

How do we achieve consistent service engineering?

What service infrastructure do we need, when?

Moving To The Next SOA Stage Meeting The Architectural Challenges

Architecture

BuildingBlocks


Architecture

Make Service Engineering An

Enterprise Discipline

Establish Your Enterprise Architecture

Business Context Business Drivers IT Drivers Prioritized SOA Benefits

Reference Architecture Architecture Principles Definition of a “service” Architectural Views

Logical view

Implementation View

Process View

Deployment View Service Architecture

Infrastructure Services

Information & Access Services

Shared Business Services Presentation Services

Composition

Data Architecture Integration Architecture Security Architecture

Design Guidelines Service Design Guidelines Information & Access Service

Guidelines Presentation Service Guidelines Service Assembly Guidelines Service Security Guidelines

Technology Mapping

Patterns of Usage

Example SOA Reference Architecture Table of Contents

Enterprise Service Engineering Framework

(ESEF)

The Service Engineering DisciplineEnterprise Service Engineering Framework (ESEF)

CommonSE Policies, Procedures & Patterns

Specific design guidelines, patterns and examples

Enterprise policies & procedures

Common SE Disciplines

Enterprise service engineering disciplines

Lifetime service management

Common Service Specifications

Service identification, definition, design

Enterprise interface design

Establish Your Enterprise Architecture

What makes up a successful SOA Reference Architecture? Authoritative definition of SOA for an organization

Communication vehicle

Compliance tool

Based on well-defined SOA principles and expected benefits

An architectural blueprint describing

Organization of support for services into categories

Definition of principles and requirements to support each category and underlying infrastructure

Relationship between SOA and existing architectures


Projects


Capability

How do I sell the Business leaders on the need for a major change?

How can I connect them to the capabilities enabled by SOA?

Moving To The Next SOA Stage Meeting The Developmental Challenges

Business Objectives IT PrinciplesImprove Efficiency Ratio

Lending Process Optimization Sourcing Call Centre Optimization

Grow Revenue – Faster Than Peers in a Sustainable Way

Small to Mid-Size Acquisitions

Expand Customer Relationships Cross-Sell (Internal/External LOB) Relationship-based Pricing

Customer Expansion Sales Effectiveness (Wholesale Mortgage & Corporate lending) Risk Management

Move from Transaction/Product Focus to Customer Focus

Move from Silo LOB Focus to Process/Service Focus

Move Towards a Collaborative Development Environment

Expose Loosely-Coupled Business Logic to Achieve Speed and Flexibility

Reuse Before Extend Before Buy Before Build

IT Costs Aligns with Business Value

Adopt a Process View of the Enterprise

* Inherit / Review Existing COIS IT Principles

Prioritized SOA Benefits SOA Architectural Principles1. Guiding methodology that allows IT to deliver both

core system renewals and new solutions in a step-wise fashion.

2. Extensible services beyond and across the enterprise

3. Rapid development of solutions

4. Consistent, accurate and predictable customer data

5. Enablement of Business/IT Alignment

Data is owned by the enterprise

Comply to enterprise & industry standards

Use the DAS layer to access disparate data via a single consistent access point

Security is designed from the outset

Thou shall Steal & Share – We value reuse

Separation of business logic from underlying technology and delivery channels

Separate business process from the service component

Instrumentation, traceability, ‘ilities’

Alignment of Enterprise SOA ObjectivesExample

BEA SOA Cost BenefitsSOA Projects

When you justify costs for SOA, how many projects is the justification based on?

24%

22%

20%

34%One project

Two projects

Three projects

More than three projects

32%

30%

25%

13%

Demonstrate the effects of SOA across multiple projects

Europe

Build a Stream Of Connected Projects Incremental Project Harvesting

Applications

1 2 3 4 5 6

7 8 9 10 11 12

Services Catalog

A

B

C

D

E

F

G

1 2 3

1 3 4 5

6 7 5

2 7 8 9

10 117

8 1210

3 1191 7

119

Cost Curve Over Time

Presentation Services

Shared Business Services

Information and Access Services

Services M

anagement

Service B

usC

omm

on Services

Service

Infrastru

cture L

ayerComposite Applications

1 2

3

4

5

6

7

9

8

10 11 12

Agenda

The Market Today


Summary

If You Are Early In Your SOA Journey

Business

Strategy & Proce

ss

Architecture

Costs &

Benefits Buildi

ngBlocks

Organization &

Governance

Projects and

Applications

Business Strategy

and Process

ArchitectureCosts & Benefits

BuildingBlocks


1 Pick your starting point

2 Plan with a 2-3 year vision

3 Execute project-by-project

4 Approach SOA on six domains

ProcessProjects

IT-LedProjects

MegaProjects

Bu

sin

ess

Sp

on

so

rsh

ip

High

Low HighSOA Complexity

Business-Led

Projects

“Many IT leaders are seeking guidance on how to approach pressing issues related to the business and organizational dimensions associated with SOA, including changing roles in the enterprise, governance procedures and policies, and funding considerations.”

Sandra Rogers, Director SOA Research, IDC

SOA – Driving Towards Enterprise Implementation

Moving To The Next SOA StageLeadership Required at the Enterprise Level

Costs & Benefits

Business Strategy &

Process

Projects &

Applications


Projects


Capability

Requires Developmental

Leadership



Benefits


Shareholder Value


Architecture


Discipline

Requires Architectural Leadership

Requires Operational Leadership

SOA Information Available From BEA

Detailed Infoworld and GCR Survey Results

BEA SOA Readiness Survey

BEA Domain Model Whitepaper

Customer Case Studies

Detail on new SOA Service Offerings

Dev2Dev, Arch2Arch, IT2IT, Exec2Exec

www.bea.com/soa

http://www.bea.com/soa

BEA Confidential. | 38

Accelerating Your SOA Implementation

Bret DixonSVP, Professional ServicesBEA Systems

Documents

Accelerating Your SOA Implementation