Simply Good Design: 2012 IBM SOA Architect Summit. SOA on Your Terms And Our Expertise

Transcription

1 Simply Good Design: 2012 IBM SOA Architect Summit SOA on Your Terms And Our Expertise

2 Business Optimization and Integrity Steve Demuth STSM Decision Management

3 Business Optimization and Integrity How can we improve the value of SOA investments by shifting focus to business process optimization? How do we advance process optimization by holistically leveraging the enablers of business agility within processes? How can we leverage process optimization principles to ensure that our businesses operate with consistent integrity?

4 Agenda Extending the Business Value of SOA to Drive Business Optimization Delivering Greater Process Outcomes with Key Enablers of Agility Driving Business Execution with Consistent Integrity What is on the Horizon? 4

5 Does your architecture allow you to easily improve processes? Critical business processes are often locked in packaged and siloed applications Architecture must enable processes to run flexibly and reliably across application silos

6 Dynamically optimize investments, drive operational excellence and manage business risk Architectural discipline & explicit governance Process analysis & operational excellence Business, system, and application integration

7 Doing SOA and BPM together Extends their value SOA adopter gaining additional benefits from BPM approach Leverage business process analysis and orchestration for agile optimized business solutions. Identify services based on business process understanding. Provide metrics and key performance indicators for business value. Drive optimization of business solutions. Manage business impact and risk via business process risk analysis. BPM adopter gaining additional benefits from SOA approach Consume an optimized portfolio of flexible, well architected and governed building blocks. Orchestrate well architected service and information building blocks. Analyze feasibility of proposed business process changes. Govern and manage combined business and IT solutions. Optimize investments via SOA portfolio management.

8 Some observations about the SOA Marketplace The industry is bifurcating SOA value: A technology initiative to normalize systems integration problems - vs. - A foundation on which to enable business agility and improving business effectiveness.

9 To improve the utility of SOA investments, we need to shift focus on placing reusable component architecture in the context of improving business processes Most services practitioners started here: Service Integration Resulting in: Service proliferation Services built with little business context Service redundancy Little to no focus on portfolio management Market shifting Increasing Value Will get more value from SOA if they get to here: Process Optimization Process Analysis Process Design Process Automation Market Efficiency Business Efficiency Process Efficiency Labor Efficiency Resulting in: Business Effectiveness Process Effectiveness Labor Effectiveness IT Effectiveness An ability to understand the right change to make (effectiveness) to the business based on the underlying forces and to be able to efficiently execute that change.

10 Agenda Extending the Business Value of SOA to Drive Business Optimization Delivering Greater Process Outcomes with Key Enablers of Agility Driving Business Execution with Consistent Integrity What is on the Horizon? 10

11 Business processes are everywhere Account Opening Campaign Management Vendor Onboarding Claims Processing Order Fulfillment Customer Problem Handling

12 To be clear, by business process we don t just mean procedural flow automation... Structured Processes Semi-Structured Processes Adhoc Processes At the end of the day the process is not defined by the technology used, rather it is defined by how business people get things done.

13 Process Innovation in Action Interconnecting the design and execution of business operations Go to Market Dynamic pricing Leverage customer insights for target marketing Go to Market Business Partners Managed Services Product Development Reduce time to market of new products & services Streamline production procurement sourcing Customers Order to Cash Product Development 13 Order to Cash Account opening process automation Automated order processing & fulfillment

14 To optimize processes we need to think beyond just operational automation by combining operating model changes with enhanced flexibility and intelligence. Increase awareness by capturing relevant internal and external events Customer Issue Resolution Competitor Introduces New Product Improve decision making through a better understanding of business conditions Supplier Pricing Trends Changing Customer Buying Patterns Customers Abandon Shopping Carts Deliver greater flexibility and control over and measurement of business activities Introduce Promotional Product Offers

15 To optimize processes we need to think beyond just operational automation by combining operating model changes with enhanced flexibility and intelligence. Connectivity (ESB) Events Services Triggers Invokes Informs Situational Awareness (WODM Events) Responds Invokes Informs Invokes Responds Processes (IBM BPM) Invokes Business Activity Monitoring (Websphere Business Monitor) 15 Predictive Models (SPSS) Responds Decisions (WODM Rules)

16 combining advanced business capabilities to deliver new levels of agility Events Analytics Collaboration Rules Content Monitoring Predictive Analytics Analyze year old customer segment to determine the likelihood of campaign response Product Manager Marketing Manager VP of Marketing Customer Define Marketing Strategy Define Rules If prepaid balance is less than 25%, send offer to load 1000 mins and get 10 mins free Identify Target Customers and Offering Create Campaign Collaborative Process Improvement Add SMS as a new delivery channel to the campaign delivery process Approve Campaign Execute Campaign Dynamically Update Rules If subscriber spends $5 in 1 week on mobile browsing, then receive 5 free SMSs Monitor key KPIs Sales increase % due to loyal customers % of sales lost Events If campaign promotion target is not met, send real-time alerts to market managers and VPs Delivery Channel Monitor & Evaluate Campaign

17 Process shape evolution automated task human task process composition Not many automated steps, little detailed understanding of human steps Human Interactions are ordered and sequenced, but relatively generic, saying Do this Task without a lot of extra help to accomplish it. Many Processes Evolve through continuous process improvement and as they evolve, the number of process instances that execute in a fully automated way increase and the handling of exceptions becomes more structured. time push Structured exception handling, including heavy use of human interactions, but also reusing update services that are used in the automated paths. Humans as part of structured exception Unstructured exception handling Handling this means the use of ad-hoc subprocesses and general case handling as needed in Ad-hoc addition to more reuse of update services used in the automated paths. push time

18 Process shape evolution Questions 1. Which version provides enough value to go live with for the first time? 2. How long will you stay live with a given version V1 V2 V3 Start product usage here to get early value and discover more by executing what you know Notes Some processes start life around V4, because there are already a number of automated tasks that are known There is a corresponding evolution of KPIs, metrics and insights that come as 18processes evolve V4 V5 V6 Do basic modeling and analysis to get from V1 to V4 and then go live Do extensive modeling, analysis and simulation and then go live

19 Agenda Extending the Business Value of SOA to Drive Business Optimization Delivering Greater Process Outcomes with Key Enablers of Agility Driving Business Execution with Consistent Integrity What is on the Horizon? 19

20 Agility doesn t mean giving up on other key attributes

21 Agility without performance & integrity is a fragile value proposition Enabled by a flexible, modular SOA reference model Flawless execution of mission-critical processes Business agility is critical for excellence in managing change, business performance and business integrity are critical for excellence in business execution.

22 End-to-end processes are at the heart of every business Processes are increasingly distributed as companies integrate globally Business processes in the Globally Integrated Enterprise will often cross multiple geographic, corporate and functional boundaries

23 Your business relies on consistent process execution What happens if critical business processes fail? Failure of critical business processes results in lost revenue, decreased customer loyalty, and increased risk Critical end-to-end processes require an SOA environment that can provide: Full transactional support across distributed systems Automated compensation and resynchronization Recovery at all levels (process engine, service bus, database, ) Enterprise-class scalability to handle 1000 s service calls per minute

24 Advanced SOA requires a more comprehensive approach To handle more process, services, information, people End-to-end Process Integration Connectivity (ESB, Messaging, Adapters, Registry/Repository, Standards) Process Automation (Choreography, Flow Control) Security Quality of Service As you become more advanced, the ability to maintain robust end-to-end integration and consistency becomes more challenging Capabilities for process integrity must be built in to the middleware

25 The New Imperative: Horizontal Transaction Processing Business execution Horizontal transaction processing and scaling

26 Process integrity takes SOA to the next level Supporting integrity of transactions, interactions and information Process Integrity is the ability to conduct reliable business activity in a secure, scalable SOA environment with seamless synchronization between: Services Human Tasks Information Domains Users Users Must Be Provided with Up-to-date, Secure Access to Information and Content Transactions Must Execute Consistently with Ability to Recover as Required Information Must be Reliable, Complete and Manageable

27 Transaction integrity assures consistency of execution Enabling consistent transaction processing in an SOA environment Transaction Integrity ensures that individual updates of IT / business resources are linked together and processed as a single unit of work, all completing successfully, or being rolled-back Transaction Integrity must be an integral part of every application that updates critical business resources Business Activities can be long running, lasting seconds or months, and can include multiple atomic transactions Atomic transactions are short-lived and operate on available resources in realtime in a single unit of work Policies

28 Interaction integrity enables people to be productive Providing up-to-date, secure access to information and content Interaction Integrity is the ability to ensure that elements of people s interactions with systems are intact where ever and when ever the interaction occurs Interaction completeness and scalability Policies Personalized context across partners, employees, and customers Content accessibility and manageability - multiple sources, multiple places

29 Information integrity provides consistency of information Delivering reliable, complete and manageable information Information Integrity helps deliver trusted, secured information to business processes, regardless of delivery channel Information from multiple platforms and systems Information with different semantic contexts, formats and lineage Policies Different systems have their own interfaces and business rules for managing information Information integration creates a single view Master data must be maintained for consistency across operational, collaborative, and analytic uses

30 Agenda Extending the Business Value of SOA to Drive Business Optimization Delivering Greater Process Outcomes with Key Enablers of Agility Driving Business Execution with Consistent Integrity What is on the Horizon? 30

31 Why? Achieving business agility with BPM and SOA together - Smart work in the smart enterprise Targets the business-facing part of the organization with a heavy emphasis on business process related rational for BPM and SOA. Deals with integrity primarily in terms of Business Integrity. This paper explains why you want to do BPM and SOA together in business terms. LINK: Business view What? BPM and SOA require robust and scalable information systems Smart work in the smart enterprise Targets the Enterprise and Systems Analysts with an architectural focus on BPM and SOA. This paper focuses heavily on scalability, resilience and integrity at an Information Systems level. This talks about what BPM and SOA are, and creates a strong expectation about the need for integrity in BPM solutions. LINK: Information Systems view How? Creating a scalable and efficient infrastructure for SOA and BPM Smart work in the smart enterprise Targets the Solution Architects and Developers and speaks directly to the capabilities of the IBM software product capabilities in support of scalability, resilience and integrity. This paper explains how our IBM middleware achieves transactional strength, but also infers what that does for BPM based solutions, and why these characteristics are important. LINK: Technology view

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