Driving Business Value with IT: The Smart SOA TM Approach. Thomas A Hutchinson ASEAN Executive SOA and Technical Sales IBM Software Group

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1 Driving Business Value with IT: The Smart SOA TM Approach Thomas A Hutchinson ASEAN Executive SOA and Technical Sales IBM Software Group

2 CFO Study Change is at the Heart of Most Businesses A view from over 2500 CXO s Human Capital Study CEO Study

3 Agility is Essential to any Growth Strategy Growth Organic Acquisition s Innovation and companies that demonstrate the highest levels of Agility and Innovation realize the greatest growth Agility

4 Characteristics of a Service Oriented Enterprise Know their customers and their profiles Continually evolve services Drive quality assurance by continuously surveying Drive loyalty by meeting customer expectations Become indispensable not just irreplaceable Create new value offerings to enable up-selling Requires a Stronger Partnership Between Business and IT

5 Benchmark Your Agility with Key Agility Indicators 12 wks 8 wks 21 days 60 days Average time to locate critical skills 48 hrs 24 hrs Time to establish new risk policy Time between order delivery and order generation 270 KAIs in the Benchmark Wizard

6 There are Multiple Onramps to Service Orientation Business Architecture Business Processes SOA Foundation & Infrastructure Success requires the Alignment of Business & IT

7 Driving Differentiation by Linking Business with IT Strategic Business Drivers Deliver Greater Client Value through an integrated solutions approach Industry Solutions Industry Framework SOA Foundation & Infrastructure Speed time-to-value Reduce risk Create a platform for innovation Provide choice through a robust ecosystem Build on what clients have today, with a roadmap for growth Customer Care & Insight Framework Governance

8 IBM Telecom Solutions at Work Scale to meet the needs of 1.5 million new customers per month Activate new mobile accounts: <2 hours vs. days Self-service website: customer satisfaction call center load Improved Business Intelligence SOA standardized platform A Flexible Business Architecture

9 IBM Intelligent Transportation System Solutions at Work City of Stockholm Transportation 25% reduction in traffic 15% reduction in CO 2 emissions $120M/yr in revenue to City of Stockholm; payback in 4 years Congestion charges will fund transit improvements

10 IBM Implemented Service Orientation to Increase Agility 63% of revenue came from non- US operations 8% yr/yr revenue growth 18% growth in BRIC countries 53 acquisitions in software since 2002 To become a Globally Integrated Enterprise

11 Success Requires Focus On Alignment of Business and IT Aligned IT and Business result in DOUBLE the productivity gains of isolated business and IT efforts Source: London School of Economics McKinsey survey and analysis of 100 companies in France, Germany, UK and US

12 Align Business and IT with Service Orientation & SOA Service Managers: A Service A repeatable business task e.g., check customer credit; open new account 6550 Clients Business Managers: Service Orientation A way of integrating your business as linked services and the outcomes that they bring Architect: Service Oriented Architecture (SOA) An IT architectural style that supports service orientation

13 The Smart SOA TM Approach Accelerates Alignment Value to Business Greater agility in specific, departmental business areas Optimization and innovation across endto-end business processes Business model innovation to support the Globally Integrated Enterprise Predictive business automatically responding to market forces Scope Collaboration within a line of business Coordination across lines of business Enterprise-wide organizational cooperation Enact significant shifts without direct IT involvement Foundational Extend End-to-End Transform Adapt Dynamically Value to IT Focused, proven, high-roi projects End-to-end business process management to innovate and optimize IT for strategic advantage and business model innovation Technology becomes invisible

14 SOA Entry Points Get You to Value Faster Enable human and process interaction with consistent levels of service SOA Configurations Deliver trusted information in business context to enable innovation Achieve greater efficiency and effectiveness with business model innovation Reduce solution complexity and improve agility by simplifying solution integration Build solutions better, cheaper and fasted by leveraging existing assets Simplicity with every initiative

15 SOA Entry Points in Action: People, Process, Information 5% increased oil production 30% maintenance cost reduction

16 The Technology Supporting Agility Really Does Matter

17 SOA Reference Architecture: Build for Agility Infrastructure Business Interaction Process Information Development Partner Enterprise Service Bus Business App Access Service Management Infrastructure

18 Your SOA Platform: the Broadest and Deepest Portfolio Infrastructure Business Interaction Process Information Development Partner Enterprise Service Bus Business App Access Service Management Infrastructure Supported by market leading professional services and hardware infrastructure

19 New from across IBM People, Process, & Information Lotus Forms v3.0.1 WebSphere Portal v6.1 Business Process Accelerator InfoSphere Master Data Management Server v8.0 Cognos 8 BI and Platform v3 Info 2.0 a suite of Web 2.0 technologies and patterns Business App Reuse Rational Business Developer v7.1 Rational Developer for System i v7.1 Rational Developer for System i for SOA Construction v7.1 WebSphere Host Access v7.1 Connectivity WebSphere Adapters on WebSphere Application Server v6.1 WebSphere MQ v7.0 WebSphere Message Broker v WebSphere Partner Gateway v6.1.1

20 IBM Clear SOA Leader Value: Trust a technology partner that has solved these problems many times Unparalleled Client Experience #1 in Marketshare 46% YTY customer growth % YTY growth in client speakers public customer references Progress Software 4% Microsoft 4% Software AG / webmethods 4% Sun / SeeBeyond 2% Tibco 7% Oracle/BEA 7% Sybase 1% Virtria Iona 2% 1% Other 4% 64% 2007 Total: $2.0B Source: WinterGreen Research, Inc.

21 Today's Business Landscape is Undergoing More Rapid and Transformative Change Is your business and IT Ready and Agile?