SOA: Overview and Motivations

SOA on your terms and our expertise

2006 IBM Corporation

Innovation that Matters To CEOs

Top Innovation Priorities:

Improve customer-focused,
go-to-market areas

Restructure and extend the

enterprise

Increase effectiveness and

efficiency of core functional
areas

78% of CEOs believe

integrating business and
technology is fundamental
for innovation

The Goal: Strategic Flexibility Through Innovation

Source: IBM Global CEO Survey, March 2006

SOA on your terms and our expertise

CIOs and CTOs Recognize Innovation as the Most

Important Capability for Growth
Ability to innovate
Ability to allocate
the best talent
Ability to manage a
global organization
Ability to allocate
capital
Ability to manage
increasing regulation costs
0

30

60

Source: March 2005 McKinsey Quarterly survey of 9,345 global executives

Yet: Only 1 in 10 CEOs believe their organization has the ability to be

very responsive to changing market conditions
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SOA on your terms and our expertise

The Vertical Silo Problem

Division A

Division B

SOA on your terms and our expertise

Division C

Division D

Division E

Where Are We Heading Service Oriented Architecture

Customer

Division(s)

Shared
Services

Supplier

Outsourced

SOA on your terms and our expertise

What is ..?

a service?

service orientation?

A repeatable
business task e.g.,
check customer credit;
open new account

A way of integrating your

business as linked
services
and the outcomes that
they bring

service oriented
architecture (SOA)?

a composite
application?

An IT architectural
style that supports
service orientation

A set of related &

integrated services that
support a business
process built on an SOA

SOA on your terms and our expertise

Greater Flexibility Is Required

From Business Models and the Supporting IT Architecture

Flexible Business Models
Transformation
Business Process Outsourcing
Mergers, Acquisitions & Divestitures

Composable
Processes
(CBM)
Component
Business Modeling

Requires

Flexible IT Infrastructure
On Demand Operating Environment
Service Oriented Architecture (SOA)

Development

Infrastructure

Management

Software
Development

Integration

Infrastructure
Management

SOA on your terms and our expertise

Composable
Services
(SOA)

Older Architectures Do Not Support Flexibility

Required by Current Business Environments

Pricing

Web
Orders

Sales Orders
& Supply
Chain

Monolithic Business Applications built historically

Must periodically synchronize on inventory information

Pricing information into each inserted differently based on application structure
No common customer database, inventory or flexibility in business processes
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SOA on your terms and our expertise

Component-based Architecture is Not Enough

Pricing

Customers

Web Orders

Inventory
Shipments

Sales
Orders

Services defined as units of business logic, but

Flow of control bound into service logic

Transformation of data formats bound into service logic
Tight coupling between services makes them fragile
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SOA on your terms and our expertise

Service Oriented Architecture

Moves IT Logic Out of Services

Pricing

Customers

Web Orders

Inventory
Shipments

Sales
Orders

Services defined as units of business logic separated from

Flow of control and routing

Data transformation and protocol transformation
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SOA on your terms and our expertise

Business Flexibility Depends on IT Flexibility

But Todays IT Architectures are the Roadblocks

Complexity
Monolithic and siloed applications
Inconsistent information sources
Custom coded connections
Not designed for change

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SOA on your terms and our expertise

Todays IT architectures,
arcane as they may be, are
the biggest roadblocks
most companies face when
making strategic moves.
McKinsey Flexible IT, Better Strategy

Business Needs Are Driving a Shift in IT

13

From:

To:

Function-oriented

Service-oriented

Build for permanence

Build to change

One long development cycle

Incremental development cycles

Application silos

Orchestrated solutions that work together

Tightly coupled

Loosely coupled

Structuring applications using

components and objects

Structure applications using

services

Known implementation

Implementation abstraction

SOA on your terms and our expertise

Why SOA Now?

SOA is the next-wave architecture to drive the evolution of IT.
Alex Cullen
Principal Analyst for IT Management, Forrester Research

Standards have been widely adopted

Software is mature and available
Governance is well-defined
Best practices are in place

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SOA on your terms and our expertise

Leveraging Entry Points to SOA

Consider Your Needs and Capabilities

SOA Entry Points
People Centric Collaboration
Process Centric Approach
Information Centric Approach
Connectivity
Creating and Reusing Services

People

Information
Process

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SOA on your terms and our expertise

SOA Roadmap: A Plan for Adopting SOA

SOA Goal
Market return through transformation: quicker time to production, lower costs,
competitive differentiation
Revenue and Profit

Market Return through Transformation

Strategic Vision

Incremental Adoption
Time

Two Primary Roadmap Perspectives

Strategic Vision

Business and IT statement of direction which can be used as a guideline for decision
making, organizational buy-in, standards adoption

Project Plans

Implementation projects to meet immediate needs of the current business drivers

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SOA on your terms and our expertise

Summary: Lessons Learned

Based on Customers Experiences

SOA is a team sport
Business Team and IT Team work
hand-in-hand

SOA Foundation is critical

Establish an enterprise architecture &
infrastructure, based upon SOA principles

Project entry points are important

Avoid the Big Bang approach

Governance is a must for success

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SOA on your terms and our expertise

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SOA on your terms and our expertise