Effective Governance: Empowering Teams to Innovate

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1 Effective Governance: Empowering Teams to Innovate Optimize Development, Speedy Delivery, Simplify Compliance Martin Lee SOA on your terms and our expertise 2007 IBM Corporation

2 Agenda IT Landscape A walkthrough of Service Oriented Architecture SOA Governance IBM Rational SOA Governance Solutions 2 SOA on your terms and our expertise

3 What s on the minds of 450 of the world s leading CEOs? CEO needs Revenue growth with cost containment Key competency: responsiveness Critical success factor: enable effectiveness of people and processes Source: CEO Study of 456 WW CEOs, IBM Corp CIO challenges Aligning IT and business goals to grow revenue and contain costs Building responsiveness and agility into the organization through IT How can IT help enable people and teams to be more effective Source: Operating Environment Market Drivers Study, IBM Corp SOA on your terms and our expertise

4 Consistent imperatives. Flexibility Grow faster Bekins, a moving company, increased revenue by $75M through integration with business partners to serve a new market PineBank increased customer traffic by 300% and revenues by $8M Spend less Efficiency Kookmin Bank should save $250 million from reduction of duplicate processes Volkswagen realized a 20% productivity gain Increase customer satisfaction Responsiveness 4 SOA on your terms and our expertise Dassault Aviation reduced concept-torunway development time by 30% British Petroleum decreased userprovisioning time from 5 days to 10 minutes

5 What the Analysts Are Saying Half of all companies and 77% of large enterprises reported that they are or will be using SOA by the end of Why? Evidence is mounting that SOA provides real benefits for business integration and flexibility. Real-World SOA: SOA Platform Case Studies, Forrester Research, Inc., September 2005 CIOs continue to struggle to align business and IT in meaningful, measurable ways. More effective IT governance processes and tools are becoming top priorities among business-savvy CIOs. Five Ways the Rise of IT Governance Will Change How Enterprises Buy IT, Summit Strategies, December 2005 In 2006, lack of working governance mechanisms in midsize-to-large (greater than 50 services) post-pilot SOA projects will be the most common reason for project failure (0.8 probability). Management Update: Predicts 2006: The Strategic Impact of SOA Broadens, Gartner, Inc., Jess Thompson, Yefim V. Natis, Massimo Pezzini, Paolo Malinverno, November 23, 2005 With the widespread adoption of SOA, the challenges associated with SOA projects are emerging. SOA governance isn't optional it's imperative. Without it, return on investment will be low and every SOA project out of pilot phase will be at risk. Service-Oriented Architecture Craves Governance, Gartner, Inc., Paolo Malinverno, January 20, SOA on your terms and our expertise

6 Agenda IT Landscape A walkthrough of Service Oriented Architecture SOA Governance IBM Rational SOA Governance Solutions 6 SOA on your terms and our expertise

7 SOA in Action It s All About the Business Customer Division Shared Service Supplier Outsourced 7 SOA on your terms and our expertise Change: Process Optimization

8 Why SOA? To keep pace with global competition: We are taking apart each task and sending it to whomever can do it best, and then we are reassembling all the pieces from Thomas Friedman s The World is Flat The standards and technology are finally in place, with broad industry support Availability of best practices for effective governance The necessary software to get started is available today 8 SOA on your terms and our expertise

9 Agenda IT Landscape A walkthrough of Service Oriented Architecture SOA Governance IBM Rational SOA Governance Solutions 9 SOA on your terms and our expertise

10 What is governance? Establishing chains of responsibility, authority and communication to empower people (decision rights) Establishing measurement, policy and control mechanisms to enable people to carry out their roles and responsibilities 10 SOA on your terms and our expertise

11 What is Governance? It s all part of Corporate Governance What is IT governance? Establishing decision making rights associated with IT Establishing mechanisms and policies used to measure and control the way IT decisions are made and carried out What is SOA governance? Extension of IT governance focused on the lifecycle of services to ensure the business value of SOA SOA Governance is a catalyst for improving overall IT governance 11 SOA on your terms and our expertise

12 Why SOA Governance matters Realize business benefits of SOA Business process flexibility Improved time to market Mitigate business risk and regain control Maintaining quality of service Ensuring consistency of service Improved team effectiveness Measuring the right things Communicating clearly between business and IT 12 SOA on your terms and our expertise

13 SOA Governance Challenges Establishing decision rights Defining high value business services Managing the lifecycle of assets Measuring effectiveness 13 SOA on your terms and our expertise

14 Agenda IT Landscape A walkthrough of Service Oriented Architecture SOA Governance IBM Rational SOA Governance Solutions 14 SOA on your terms and our expertise

15 Scenario: Establishing decision rights Scenario: SOA initiative already underway Services shared across lines of business Challenges: No clear decision maker or owner Confusion about funding of shared services Standards for services QoS ill defined 15 SOA on your terms and our expertise

16 Customize the Governed Process Define the SOA Development Process Define & Prioritize Governance Processes, Controls, & Process Framework Define and Model New Development Business Process (Service Spec) SOA Project Office Model & Publish Governed RUP-SOMA Delivery Method 16 SOA on your terms and our expertise

17 Scenario: Defining high value business services Scenario: Limited visibility to information about service value & cost Services deployed according to IT cost savings instead of business value Challenges: Lack of clear understanding of business value No clear success factors defined for LOB Who decides which services are shared and how are costs shared across Lines of Business (value vs. cost based models) 17 SOA on your terms and our expertise

18 Model the business (& identify the services) Service Planning & Identification Create, Simulate & Analyze As-Is Business Model Create, Simulate, Analyze and Optimize To-Be Business Model Business Analyst UML Create Financial Reports & ROI Estimates Process Create & Manage System Requirements Business Analyst Trace Requirements & Create System Use Case Realizations Model Services Architect Java Developer 18 SOA on your terms and our expertise

19 Scenario: Managing the lifecycle of assets Scenario: Different LOB has implemented different SOA models Each LOB has separately funded initiatives and are resistant to change Challenges: Little insight into change management of systems & multiple inter-connected services Unclear policies on how are services owners and users are notified of change No clear understanding if service owners and service subscribers have decision rights when changes occur 19 SOA on your terms and our expertise

20 The underlying service metadata management Manage and Measure Effectiveness of SOA Artifacts Developer/ Architect/ Analyst Search, Consume, And Submit Services Manager Measurement, Audit Impact Analysis Solution Architect Review, Govern Rational Asset Manager (RAM) Federated Search And Publish WebSphere Service Registry And Repository (WSRR) Administer Taxonomy, Users, Access control, and Reviews Development-time Assets/Services Deployed/Runtime Services Review Board Administrators 20 SOA on your terms and our expertise

21 Change Management Change Control and Workflow Version & Workspace Control Change Impact Analysis Change Auditing 21 SOA on your terms and our expertise

22 Test the services & composite application Service Validation Examine Test Plan, Test Case, and Test Execution Suite Service Tester SOA Architect Execute Manual & Automated Testing of Business Process and Services 22 SOA on your terms and our expertise

23 Scenario: Measuring Effectiveness Scenario: LOB and IT not well aligned - lack of common goals or agreed upon success factors Measurements not standardized across LOBs Measurements based on service utilization rates not business value Challenges: Depts or divisions have disparate goals, measurements and success criteria No clear definition of business value and IT goals Costs / benefits not balanced between depts 23 SOA on your terms and our expertise

24 Govern SOA align, execute and control investments Measure Effectiveness of SOA Process CIO Understand Risk, Project Costs, and ROI Project Manager Identify and Manage Projects and Resources 24 SOA on your terms and our expertise

25 Summary: How IBM enables SOA Governance Methods, process, tools and technology for: - Defining/refining governance approach - Identifying high value business services and instantiating policy and standards - Managing the lifecycle of services and other assets - Gaining visibility to performance against goals Services and expertise to assist across the entire service lifecycle 25 SOA on your terms and our expertise

26 26 SOA on your terms and our expertise Martin Lee IBM Rational Consultant