E-business on demand. The IT Environment of an on demand Business. Business Consulting Services. Ville-Mikko Kanerva December 1, 2003

Transcription

1 E-business on demand The IT of an on demand Business Ville-Mikko Kanerva December 1, IBM Corporation

2 Table of contents On demand Business Transformation On demand Operating On demand Application On demand Systems On demand Delivery 2

3 The Road to Becoming an on demand Business: Business Transformation Business Transformation Application Systems Operating Utility Services 3

4 The situation in a troubled industry 4

5 Unstoppable Drivers Competitive Darwinism Continuous Discontinuities Unrelenting Financial Pressures Unpredictable Threats Due to increasingly transparent markets, competitive intensity is growing in severity as existing players and new entrants scramble to provide value to customers The change in customer demands, technological innovations and government regulations is increasingly sudden and dramatic The growth and predictability of revenues and margins becomes even more challenging due to economic uncertainties and demanding investors Pervasive dangers become real and prevalent as global firms see increased exposure to natural disasters, unstable geopolitics and other market shocks 5

6 On demand Imperatives Unstoppable Drivers Competitive Darwinism Continuous Discontinuities Unrelenting Financial Pressures Unpredictable Threats Focused Responsive Variable Resilient Committed to concentrating on differentiating competencies, using tightly integrated strategic partners to manage selected nondifferentiating activities Seeming almost intuitive in its ability to sense and respond rapidly to unpredictable changes in the market environment and the needs of all its constituents Able to adapt cost structures and business processes flexibly, in order to reduce risk and to do business at higher levels of productivity, cost control, capital efficiency and financial predictability Prepared for changes and threats be they technological, economic, or political enabling the business to continue operating with consistent availability, security and privacy on demand Imperatives 6

7 Example From Helsingin Sanomat on Thursday Nov. 27! Companies move their production globally at an ever-increasing speed - Some look for cheap labour some for better skills - Overall, any production can be moved! Technology advances used to last for years not anymore Process improvements imitated by competition ever more quickly! Enabled by technology, assisted by freely-moving capital 7

8 The Road to Becoming an on demand Business: Operating Business Transformation Application Systems Operating Utility Services 8

9 An on demand business needs an on demand Operating Business Transformation! Align IT processes with business priorities! Enable business flexibility and responsiveness! Reduce cost! Improve asset utilization! Address new business opportunities On demand Operating 9

10 The on demand Operating Overview Integration of People Process Information Anywhere, any time, from any device Open Standards-based Business Objectives and Policies Collaboration Availability Transactional Processes Information Management Application Development, Deployment & Maintenance Policy-based Orchestration Security Optimization Provisioning Virtualization Engine Servers Storage Distributed Systems Network 10

11 Operating functionality Business Integration Services Open Standards-based Grid Services J2EE Web Services Business Process Integration IT Resource Integration! Model driven design! Solution mapping! Solution Deployment! Process Simulation! Activity Management! Process Management Common Runtime Services! Integrated System Console! Security and Identity! Transaction Coordination! Data Persistence Virtualization Services Dynamic hardware virtualization! Workload Management! Workflow! Collaboration! Application Connectivity Clusters Blades Networks Storage Automation Services! Policy-based orchestration! Event correlation! Provisioning 11

12 The Road to Becoming an on demand Business: the Application Business Transformation Application Systems Operating Utility Services 12

13 Business Integration Services enable business flexibility and focus on core capabilities and dynamically integrate outside services as needed. Business Integration Services Open Standards-based Grid Services J2EE Web Services Business Process Integration IT Resource Integration! Model driven design! Solution mapping! Solution Deployment! Process Simulation! Activity Management! Process Management Common Runtime Services! Integrated System Console! Security and Identity! Transaction Coordination! Data Persistence Virtualization Services Dynamic hardware virtualization! Workload Management! Workflow! Collaboration! Application Connectivity Clusters Blades Networks Storage Automation Services! Policy-based orchestration! Event correlation! Provisioning 13

14 Integration is about efficient and flexible linking of resources to optimize operations across and beyond the enterprise. + + People Processes Information! Standardized access to applications! Access anytime, anyplace! Dynamically adaptive rolebased workplaces! Model processes! Integrate applications! Connect externally! Monitor processes! Manage business results With Security and Integrity! Leverage data and content resources! Access data in place! Consolidate data! Transform data! Manage data placement 14

15 Sense and Respond Capabilities require new approach to how Applications are built Logic Access Security Informati on Mgmt Analytics Data Process Logic Logic Logic Data? Monolithic Application Application Application Application Access Management Security Svcs S E D D D Process Manager User Interface Process 15

16 New generation Service-Oriented Architecture is a critical pre-requisite to Business Process Integration and thus Business Process Transformation.! A Service-Oriented Architecture (SOA) is one that! 1)Defines functions (that need to be used by more than one system) as "services"! 2)Each has a defined, implementation-independent interface which is common to all clients! 3)Provides one logical instance of each service Consumer Provider 16 Application Architecture Component Architecture Note the implication for business processes: Service oriented architectures are most consistent with homogenous business processes across the enterprise Service Architecture Full scale Objective is to simplify and streamline standard business practices, not remove unique implementation Involves process re-engineering value or discriminator Component Architecture

17 "Service" Interfaces vs. "API" Interfaces... Applying a mortgage Service-like By mail 1. Client requests application form 2. Provider sends it 3. Client fills it in and returns it 4. Provider says "yes" or "no" API-like By phone: 1. Client calls provider 2. Provider says "Hello, how can we help" 3. "I'd like a mortgage please" 4. "What's your name" 5. "John Smith" 6. "What's the property address" 7. "27..." 8. etc. 9. etc. 10.etc. 11.etc. 12."... OK, I'll your mortgage agreement number is 12345, I'll mail the rest of the details" 17

18 But then, what are Web Services? At root, Web Services is a new system-tosystem integration protocol that already is or can be supported by anything, and for HTML Web Presentation which HTTP the infrastructure already exists!! Web Services are great, but they're just a communication protocol! Service Oriented Architectures are great, but they don't address technology interoperability External XML Business! Together, they're really something Applications Logic HTTP Databases FW Application Server 18

19 The Road to Becoming an on demand Business: the Systems Business Transformation Application Systems Operating Utility Services 19

20 Virtualization of the physical infrastructure is the first enabling step required to achieve business flexibility. Business Integration Services Open Standards-based Grid Services J2EE Web Services Business Process Integration IT Resource Integration! Model driven design! Solution mapping! Solution Deployment! Process Simulation! Activity Management! Process Management Common Runtime Services! Integrated System Console! Security and Identity! Transaction Coordination! Data Persistence Virtualization Services Dynamic hardware virtualization! Workload Management! Workflow! Collaboration! Application Connectivity Clusters Blades Networks Storage Automation Services! Policy-based orchestration! Event correlation! Provisioning 20

21 Virtualization is about removing hardwired links between resources and resource consuming applications and/or systems Virtual Resources Proxies for physical resources: same interfaces/functions, different attributes. May be part of a physical resource or multiple physical resources. Virtualization Creates virtual resources and maps them to physical resources. Primarily accomplished with software and/or firmware. Physical Resources Hardware components with architected interfaces / functions. May be centralized or distributed. Examples: memory, disk drives, networks, servers. 21

22 Automation Services is the main technology solution required for building an on demand business. Business Integration Services Open Standards-based Grid Services J2EE Web Services Business Process Integration IT Resource Integration! Model driven design! Solution mapping! Solution Deployment! Process Simulation! Activity Management! Process Management Common Runtime Services! Integrated System Console! Security and Identity! Transaction Coordination! Data Persistence Virtualization Services Dynamic hardware virtualization! Workload Management! Workflow! Collaboration! Application Connectivity Clusters Blades Networks Storage Automation Services! Policy-based orchestration! Event correlation! Provisioning 22

23 Automation is the IBM response to Dealing with complexity - the single most important challenge facing the IT industry - Paul Horn, Director of IBM Research! Tens of thousands of combinations of interrelated configuration parameters Nearly impossible to tune for optimal performance! Unknown dependencies creating change risks Extended change cycles High risk of inadvertent human error! Hardware and software version control issues Incompatibilities lead to system failures Extremely complex pre-req/co-req situations! Increased security exposures Creates unacceptable risk! Capacity in the wrong place at the wrong time Demand peaks cause performance degradation Demand troughs create under-utilized capacity! Difficult for humans to consistently make time critical decisions Human errors cause unscheduled downtime 23 Dozens of systems and applications DNS Server Data Web Server Directory and Security Services Hundreds of components Data Web Server Application Server Existing Applications and Data BPs and External Services Business Data Thousands of tuning parameters Storage Area Network

24 The Road to Becoming an on demand Business: Utility Services Business Transformation Application Systems Operating Utility Services 24

25 IT as a Utility Traditional Computing Utility Services IT Infrastructure Peak usage Required usage Capacity Provisioning Varying lead times Nominal procurement; short lead times Charge-back Estimated allocation Usage-based billing User Management Capital Investment Dedicated business analysts Large-scale, up-front investments Self-service Incremental investments Cost Profile Asset-based fixed costs Services-based variable costs 25

26 Software for the on demand business Ville-Mikko Kanerva December 1, IBM Corporation

27 Agenda WebSphere Commerce Powerful sell-side solutions to handle the challenges encountered in customer and trading partner environments. WebSphere Everyplace Software for extending e-business applications to mobile devices WebSphere Portal A single point of personalized interaction with applications, content, processes and people WebSphere Business Integration Software needed to model, integrate, automate, and manage efficient and flexible business processes WebSphere MQ Software to connect internal and external applications to exchange information reliably and securely WebSphere Studio An open comprehensive development environment for building dynamic e-business applications WebSphere Application Server A high-performance and extremely scalable transaction engine for dynamic e-business applications WebSphere Host Integration Software to leverage and extend legacy assets for new e-business solutions 27