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This Presentation Courtesy of the

International SOA Symposium

October 7-8, 2008 Amsterdam Arena

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Copyright © 2004-2008 by BusinessGlue GmbH

Enterprise SOA

and

Dependency Management

October 2008

Dirk Krafzig

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Slide 3

About the Speaker

Dirk Krafzig

Married, 2 Kids

Promoting SOA since 2000

Enterprise SOA: Krafzig, Banke, Slama, Prentice Hall, 2004.

Today

SOA Coaching

IT Strategy Consulting

Slide 4

Enterprise SOA: Key Statements

SOA is a Framework for the Optimization of Enterprise Application Landscapes

Business-orientation

Enterprise Perspective

Holistic Approach

Key Idea: Shared Services Extract Business Functionality out of the Applications

Provide this Functionality via Self-contained Services

Foster Reuse of Services across various Applications

SOA Covers Various Aspects of an Enterprise includingBusiness, Organization, People

IT Processes, Functional Architecture, Technical Architecture

SOA Value PropositionAgility

Cost Reduction

Transparency

3

Slide 5

Enterprise SOA: Key Statements

SOA is a Framework for the Optimization of Enterprise Application Landscapes

Business-orientation

Enterprise Perspective

Holistic Approach

Key Idea: Shared Services Extract Business Functionality out of the Applications

Provide this Functionality via Self-contained Services

Foster Reuse of Services across various Applications

SOA Covers Various Aspects of an Enterprise includingBusiness, Organization, People

IT Processes, Functional Architecture, Technical Architecture

SOA Value PropositionAgility

Cost Reduction

Transparency

Slide 6

Conceptual SOA Architecture

Frontend

Layer

Process

Layer

Composition

Layer

Basic

LayerContract

OfferProduct

ContactParty

Claims

Workbench

Sales

Portal

Under-

writing ...

Manage

Complaint

Settle

ClaimVerify

Coverage...

Update

Contact

History

Get

Customer

Overview...

...

4

Slide 7

Functional Decomposition

Traditional: Integration SOA: Functional Decomposition

Underwriting Claims

Processing

Contract

Party

Product

Claims

Process-oriented Frontends

Reusable coarse grained backendsUnderwriting CRMClaims

Processing

Slide 8

Isolation vs. Synergy

Project 1

Project 2

Minimizeshort-term

impact Project 1

Project 2

Managelong-termimpact

Traditional: Isolated Projects SOA: Holistic Approach

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Slide 9

Case Study 1

Slide 10

Merger: Insurance Industry

Situation

Merger of Insurance Company A and Insurance Company B

The product portfolios are complementary (~15% overlap)

The post-merger company intends to create an internet portal for direct business

Objective

Achieve synergies

Manage complexity of post-merger situation

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Slide 11

Product

Contract

Payment

Provision

Claims

Customer

Archive

Re-Insurance

…

Product

Contract

Payment

Provision

Claims

Customer

Archive

Re-Insurance

…

Two Application Landscapes

Insurance A

Insurance B

Redundant

Slide 12

Product

Contract

Payment

Provision

Claims

Customer

Archive

Re-Insurance

…

Insurance A

Product

Contract

Payment

Provision

Claims

Customer

Archive

Re-Insurance

…

Insurance B

Even More Redundancy?

Customer

Payment

Product

Contract

…

Sales Portal A+B

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Slide 13

Contract

Management

Application

Frontend Layer

Process Layer

Orchestration Layer

Basic Layer

…Contract

Management New

SalesMedical

Examination

…

Customer

Contract

Product

Offer

…

ContractCreation Tariff

Calculation

…

✄Logical carving up of applications

4 SOA Layers

Slide 14

…

…

…

…Frontend Layer

Process Layer

Orchestration Layer

Basic Layer

Contract Management New

SalesMedical

Examination

Customer

Contract

Product

Offer

ContractCreation Tariff

Calculation

4 SOA Layers

ClaimRegulation

FraudVerification

Customer

Claim

Contract

ClaimRegistration

CoverageVerification

Contract Management ApplicationClaims Application

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Slide 15

20102008

A B ABA B AB

X

X

X

X

X

X

X

X

X

Frontend Layer

Process Layer

Orchestration Layer

Basic Layer

4 SOA Layers

Slide 16

20102008

A B ABA B AB

X

X

X

X

X

X

X

X

X

Frontend Layer

Process Layer

Orchestration Layer

Basic Layer

4 SOA Layers2008① Contract Management

System B will be replaced

by System A

② New Business uses

new portal. Existing

frontends will be

decommissioned.

③ Processes for New

Business (A and B) will be

replaced

④ New product machine

replace old tariff

calculators

⑤ Contracts will be

migrated to database of

System A

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Slide 17

2010

A B AB

X

X

X

X

X

X

X

X

X

4 SOA Layers

Slide 18

Efficient Dependency Management is Key

Process

Catalogue

Project

Portfolio

Show impact of

Projects on

Processes

Enterprise

Milestones

Application

Portfolio

Show milestone

dependencies

against application

roadmap

Project

Portfolio

SOA

Services

Show impact of

projects on SOA

services

…

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Slide 19

Case Study 2

Slide 20

IT Modernization: Media

Situation

Strong market position

IT historically grown

Competitors are entering market

New business ideas

More flexible IT

Objective

Modernize IT systems

Cost reduction

Ability to adopt business processes

IT to drive innovation

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Slide 21

Process Model

1. Sales/Offer 3. Production2. Order 4. Invoicing 5. Reporting

P4.1 Create customer invoice

…

6. A/R & A/P

Management

7. Master Data

Management

Value Chain

Management and Support Processes

Slide 22

P4.1 Create customer invoice (standard case)

User

Frontendsincl. batch & public enterprise services

Process Services

Composite Services

Basic Services

Apps Administration System DMS

Sales Staff

Back-OfficeStaff

Back Office Client

Customer invoicing (batch)

Archived Document

Insertion Customer

Debtor(Advance payment)

Invoiceposting

Create, distributeand archive

customer invoices

Trigger process

3Group insertions into invoices

6 Calculate total

4

Get customer data incl. terms & billing conditions

5 7

2

Get advance payments

Create invoice postings

Output document

8 Create and distribute invoice letters

9 Archive invoice letters

As-is

1

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Slide 23

Transition (Phase 1)

P4.1 Create customer invoice (standard case)

User

Frontendsincl. batch & public enterprise services

Process Services

Composite Services

Basic Services

Apps Administration System SAP FI OMS DMS

Debtor(Advance Payment)

InvoicePosting

Insertion Customer Output document

Debtor(Advance payment)

Invoiceposting

Output Document

Archived Document

Back Office Client

Customer invoicing (batch)

Create, distributeand archive

customer invoices

Sales Staff

Back-OfficeStaff

Slide 24

P4.1 Create customer invoice (standard case)

User

Frontendsincl. batch & public enterprise services

Process Services

Composite Services

Basic Services

Apps Administration System SAP FI OMS DMS

To-be (Phase 1)

Insertion Customer Archived Document

Back Office Client

Customer invoicing (batch)

Create, distributeand archive

customer invoices

Debtor(Advance payment)

Invoiceposting

Output document

Sales Staff

Back-OfficeStaff

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Slide 25

Thank you …