Business Process Management for Innovation and Optimisation. David Bate SOA Software Sales Executive IBM Asia Pacific

Transcription

1 Business Process Management for Innovation and Optimisation David Bate SOA Software Sales Executive IBM Asia Pacific

2 Innovation that matters to CEOs and CIOs Top Innovation priorities for CEOs: Extend the ability to collaborate inside & outside Innovate business models & processes Leverage information for business insight Ability to innovate Ability to allocate the best talent Ability to manage a global organisation Ability to allocate capital Ability to manage increasing regulation costs Source: March 2005 McKinsey Quarterly survey of 9,345 global executives 87% of CEOs believe fundamental change is required in next two-years to drive innovation Yet: Only 1 in 10 CEOs believe their organisation has the ability to be very responsive to changing market conditions Source: 2006 IBM Global CEO Survey CIOs and CTOs Recognize Innovation as the Most Important Capability for Growth

3 What are the barriers to innovation and flexibility? Building and maintaining application interfaces is difficult and expensive Point-to-point interfaces result in an everincreasing maintenance burden. Gartner

4 The Vertical Silo Problem Division A Division B Division C Division D Division E

5 .. Starting to Unlock the Conundrum to enable reuse and flexibility... Start is by deconstructing your business model - breaking it down into discrete business processes and functions These processes and functions are what we call service components Each service component serves a unique purpose and interacts with other service components in the business model, using agreed-upon cost structures and service levels

6 Where Are We Heading... an example Case Study: Retail Payments Processing Bank

7 Where Are We Heading... an example Case Study: Retail Payments Processing Customer Change: Browser-based Approvals Change: Clearing Process Optimization Bank Shared Service Change: Shared Service Exception handling, Risk, Mgmt. Bank 2 Supplier Change: Domestic Payments Handled Through Bank 2 Outsourced Change: Check Processing and Image Archiving can be Outsourced

8 Where Are We Heading... an example Case Study: The Lolly Shop Store

9 Where Are We Heading... an example Case Study: The Lolly Shop Customer People Store Shared Service & Information Information Process Process Supplier People

10 What are the implications for IT? Full Business view Your business is only as flexible at your IT Process to optimize Case Study: Payments Processing Customer Bank Shared Service Bank 2 Supplier Outsourced Creating IT flexibility IBM SOA Foundation Software SOA Bridges the gap Skills & Support

11 What is..? a service? A repeatable business task e.g., check customer credit; open new account service orientation? A way of integrating your business as linked services and the outcomes that they bring service oriented architecture (SOA)? An IT architectural style that supports service orientation a composite application? A set of related & integrated services that support a business process built on an SOA

12 Flexibility through Business Services Process logic exists in the form of high value business services that are reusable. more flexible and cheaper to maintain over time, enabling dramatic improvements in responsiveness, cost effectiveness, and profitability. Service Components are reusable building blocks Flexible, componentized business processes

13 SOA builds flexibility into your existing investments The next stage of integration Enterprise Application Integration (EAI) Service Orientated Integration Messaging Backbone Point-to-Point connection between applications Simple, basic connectivity EAI connects applications via a centralized hub Easier to manage larger number of connections Flexibility Integration and choreography of services through an Enterprise Service Bus Flexible connections with well defined, standards-based interfaces As Patterns Have Evolved, So Has IBM

14 IBM s flexible approach to SOA The SOA Lifecycle enables different profiles for different needs Discover Construct & Test Compose Integrate people Integrate processes Manage and integrate information Gather requirements Model & Simulate Design Financial transparency Business/IT alignment Process control Manage applications & services Manage identity & compliance Monitor business metrics

15 IBM s flexible approach to SOA Start Anywhere in the cycle, Use only what you need Clean hand-off to IT with Business Models, Metrics Collaborative Development Integrated deployment of policies, rules, and services based on an SOA platform Business Modeling and Simulation Enabling complete life cycle management and improvement of business processes to drive innovation Business Monitoring, Dashboards and Analytics Workflow and Choreography Content Management Feedback for continuous improvement and optimization Real time collaboration and management of business processes

16 IBM SOA: 3 October Announcements 1. IBM with our Business Partners are the leaders in SOA 3,000 engagements Trained IBM Community grows to over 100,000 Added 1,300 new partners (since April) Ready for SOA mark 2. The SOA Entry Points Business Value Institute of Business Value (IBV) study Over 3,000 assets in the SOA Business Catalog 67 new public references 3. Continued build out of IBM s SOA capabilities: 4 new products, 23 enhanced products and 11 new professional services offerings. New products: Business Services Fabric Service Registry and Repository Dynamic Workload Broker IBM Change and Configuration Database Enhanced products include: WebSphere Process Server with Human Workflow Rational Software Development Platform Workplace Dashboard Framework Services and Methods include: BPM methodology Management of Services for SOA offering SOA Integration Services

17 Defining the capabilities for your SOA environment SOA Reference Architecture Business Services Supports enterprise business process and goals through businesses functional service Interaction Services Process Services Information Svc s Development Services Enables collaboration between people, processes & information Orchestrate and automate business processes Manages diverse data and content in a unified manner Management Services Integrated environment for design and creation of solution assets Enterprise Service Bus Manage and secure services, applications & resources Partner Services Business App Svc s Access Services Connect with trading partners Build on a robust, scaleable, and secure services environment Facilitate interactions with existing information and application assets Apps & Info Assets Infrastructure Services Optimizes throughput, availability and utilization

18 SOA entry points to get you started How IBM can help you towards service orientation Entry point Cross-division/ enterprise level a strategic initiative for application development and integration Component Business Modeling Department level implementation across a set of multiple related projects Client Architecture Readiness Evaluation Single project implementation at single project level. Testing the waters, a gradual adoption approach Project Definition Workshop or Self-Assessment

19 SOA entry points to get you started Both Business Centric and IT Focused

20 SMB Customers gain value through Entry Points What is it? Value Reuse Take advantage of prior work, or work done by others Lower risk and speed work by using proven, time-tested services Connectivity Connect systems, users, and business channels based on open standards Reduce maintenance costs and gain greater reliability and consistency through flexible, any-to-any linkages People Deliver role-based interaction and collaboration through services Improve productivity by putting the user experience within the context of the business process Process Achieve business process innovation by treating tasks as modular services Greater innovation and flexibility due to faster deployment and modification of business processes Information Provide trusted information to people when, where and how they need it More informed decisions, insights, and reduced risk with information delivered in-line and incontext

21 SMB Customers gain value through Entry Points Reuse Customer Example 600 person lender gets credit reports via Web Services; reviews loans in 15 minutes Customer Value Reduced costs, increased customer satisfaction Connectivity SVS Veterinary Supplies 36 person firm extends ordering to Veterinary application via Services Provide vets with 24-hour reliable access; reduced ratio of returned goods People Collaboration for 20 person ecommerce consulting firm Expecting to yield a 25% increase in revenue Process Facilitate realtime donations in 400 person non-profit organisation Automated data transfer cut workload, increased revenues Information Radio Frequency Identification package tracking 30% reduction in cost for mishandled packages

22 SMB Customers gain value through Entry Points Reuse Customer Example 720 employee firm automated application process. Reuse of services in call center Customer Value 23% reduction in resolution time for customer calls; ROI in less than two months Connectivity Automate loan process in 725 person firm from students to lenders Loans in hours instead of days People Vormittag Associates, Inc 90 person ISV reuses collaboration tools for employees and for customer service Increase workload without adding people, with no compromise on service levels Process 750 person ISV adds multichannel ecommerce integrated with backend systems Expecting a 20% increase in customer satisfaction and a 15% increase in new business Information Sofia Bus Station Consolidated view across bus operators; Reuse to see via cell phones Reduced costs and made it a great deal easier for travelers at the station

23 Are Customers Really Deploying It? Or Is It Hype? Companies of all sizes are using SOA today for real business value Company size Not Using SOA Use/Planning to Use SOA 6 to % 44% n = 798 1,000 to 4,999 56% 44% n = 315 5,000 to 19,999 39% 61% n = ,000 or more 38% 62% n = 140 All Respondents 49% 51% n = 1440 Base: North American and European software and services decision-makers Source: Forrester

24 ... and how about SOA Adoption in Asia Pacific? Other reasons Improve organisational competitiveness Optimise IT resources Enable more flexible and reusable services Flexibility to change/create business processes Align IT to business more effecitvely Reduce time and cost of delivering new services 7% 9% 9% 12% 19% 19% 0% 5% 10% 15% 20% 25% Q: what is your organisation s primary reason for investing in SOA? N= 113 (SOA Users) Source: Springboard Research, 8/ % Springboard surveyed 2,615 CIOs and IT Decision Makers in Australia, China, India, and Singapore and found that only 21% were aware of the concept of SOA. From the survey results, IBM had a massive lead over other IT vendors with 50% of organizations planning to implement SOA saying that IBM was the best suited to help them migrate to a service oriented architecture.

25 SOA Delivers Business Value Today Flexibility, Growth, Reuse, Decrease Cost 97% of customers justified their SOA project on cost 100% saw increased business flexibility 51% revenue growth Source: 2006 IBV Business Value Study Top 5 Results From SOA Projects 1. Improved Customer Satisfaction CNH (New Holland & Kobelco) 2. Business Operational Savings TransFonD 3. Increased Competitiveness Pacorini 4. IT Cost Improvement Grohe 5. Reduction in Business Cycle Time Storebrand Group Source: 2006 IBM SOA Technology Study of 137 Companies

26 Align Business and IT with SOA Governance What is SOA Governance? Decision making rights, measurements, and controls throughout the lifecycle of services What is the value of SOA Governance? Realize business benefits of SOA Mitigate business risk; retain control Improved team effectiveness "IBM's approach aligns with Gartner s view of SOA governance, and we believe it is likely to be more effective than narrower approaches. Gartner, "IBM Takes Another Step Toward Its SOA Governance Vision", Michele Cantara et al, March 28, 2006.

27 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 "firms with above average IT governance... had more than 20 percent higher profits than firms with poor governance following the same strategy" Source: Peter Weill and Jeanne W. Ross, Harvard Business School Press 2004 "Effective IT Governance is the single most important predictor of value an organisation generates from IT. Source: Peter Weill, MIT Sloan School of Management s Center for Information Systems Research Professional investors are willing to pay premiums of 18-26% for stock in firms with high corporate governance. Source: McKinsey Quarterly SOA Governance should not be an afterthought

28 Advancing IBM s SOA Governance Story New Method, Tool and Catalog to help get started quickly IBM SOA Governance Method Rational Method Composer SOA Gov Plug-in Allows Client-unique process customisation WebSphere Service Registry and Repository New enabling tool for runtime and discovery Track metadata though the lifecycle SOA Business Catalogue SOA Business Catalogue Shared Services across Business Partners Available though the Web

29 IBM SOA Assessment Tool On line or on site Receive actionable recommendations customized to your level of SOA maturity 3300 already completed! How Do I Get Here? You Are Here Find out at ibm.com/soa or contact soa@us.ibm.com

30 SOA Business Value Assessment Tool Why is ROI Important? With an ROI a project is 60% more likely to be approved (Gartner) ROI can reduce sales cycle by 30-40% (IDC) More than 82% of IT decisions require an ROI (Information Week) SOA Business Value Analyst Tool Questions Generate ROI

31 Sample Report Produced

32 Summary of Customer 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 to enable your journey Project Entry points are important Avoid The Big Bang Approach Governance is a must for success The first step is the most important so plan ahead Find out more at: ibm.com/soa

33 Thank You ibm.com/soa

34 Criteria for consideration as an IBM SOA customer All the companies represented on the list met basic qualifications: customer has implemented or is implementing one or more targeted IBM services engagements for SOA and/or one or more IBM SOA Foundation software products for the purpose of improving service orientation and/or is creating/has created reusable services with welldefined services interfaces (such as through WSDL).