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Business Consulting Services

Service-Oriented Modeling and Architecture:


from Business Intent to IT Realization
OMG SOA/WS/MDA workshop
Orlando, FL, March 21-24 2005

Luba Cherbakov, Distinguished Engineer


IBM Global Services

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Business Consulting Services

Agenda

Bridging Business-IT Gap


-

Component Business Modeling


SOA

Service Oriented Modeling and Architecture Overview


-

Overview
Example

Q/A

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Greater flexibility is required from business models and the supporting IT.
Service-Oriented Modeling and Architecture (SOMA) provides in-depth guidance
on how to move from business models to the models required by an SOA

Flexible Business
Transformation
Business Process Outsourcing
Mergers, Acquisitions & Divestitures

Composable
Processes
(IBM
Component
Business Modeling)
ServiceOriented
Modeling

Requires

Flexible IT
On Demand Operating Environment
Services Oriented Architecture (SOA)

Development

Infrastructure

Management

Software
Development

Integration

Infrastructure
Management

Composable
Services
(SOA)

Copyright IBM Corporation 2003

Business Consulting Services

(IBM
Component
Business Modeling)
ServiceOriented
Modeling

Agenda

Composable
Processes

Bridging Business-IT Gap


-

Composable
Services
(SOA)

Component Business Modeling


SOA

Service Oriented Modeling and Architecture Overview


-

Overview
Example

Q/A

Copyright IBM Corporation 2003

Business Consulting Services

A component is a business in microcosm. It has activities, resources, applications,


infrastructure. It has a governance model. It provides goods and services (business
services)

(IBM
Component
Business Modeling)
ServiceOriented
Modeling

The IBM Component Business Modeling (CBM) framework is an


alternative to traditional views of a business - the building block of a
component business model is a business component

Composable
Processes

Composable
Services
(SOA)

Business Component Elements


Business Component

Resources

Each business component has


differentiated capabilities

Each business component defines


and decides on the use of all
resources needed to perform the
defined activities

Applications
Infrastructure

Business Services

Activities

Component Governance

Business Purpose

Each business
component has
business services
which form the
interfaces to other
business
components

Each business component has a


governance structure within which it
manages its activities
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A Business Component is a part of


an enterprise that has the potential to
operate independently, in the extreme
as a separate company, or as part of
another company.

Columns are Business Competencies,


defined as large business areas with
characteristic skills and capabilities, for
example, product development or supply
chain.

(IBM
Component
Business Modeling)
ServiceOriented
Modeling

We use a Business Component Map as a tabular view of the


business components in scope

Composable
Processes

Composable
Services
(SOA)

An Accountability Level
characterizes the scope and intent of
activity and decision-making. The
three levels used are Directing,
Controlling and Executing.
Directing is about strategy, overall
direction and policy.
Controlling is about monitoring,
managing exceptions and tactical
decision making
Executing is about doing the work

Example component business model for the credit card industry

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CBM can be very helpful in framing client issues

(IBM
Component
Business Modeling)
ServiceOriented
Modeling

Example 2: sourcing

Composable
Processes

Example component business model for the credit card industry

BTO

Composable
Services
(SOA)

1. We can highlight nondifferentiated capabilities


that present potential
opportunities for
alternate sourcing
strategies
2. We can identify
candidates for Business
Transformation
Outsourcing

BTO
BTO
Utility
Utility

Utility

3. We can identify
candidates where there
are Utility offerings
4. We can identify partners
with better capabilities

2004 IBM Corporation

Copyright IBM Corporation 2003

Business Consulting Services

(IBM
Component
Business Modeling)
ServiceOriented
Modeling

CBM can be very helpful in framing client issues


Example 3: technology

Composable
Processes

Composable
Services
(SOA)

Example component business model for the credit card industry

1. We can map existing


applications infrastructure
onto the business map
2. We can identify where there
are systems duplications
3. We can highlight where there
are gaps
4. We can highlight where
systems have been
overextended

Copyright IBM Corporation 2003

Business Consulting Services


(IBM
Component
Business Modeling)
ServiceOriented
Modeling

Agenda

Composable
Processes

Bridging Business-IT Gap


-

Composable
Services
(SOA)

Component Business Modeling


SOA

Service Oriented Modeling and Architecture Overview


-

Overview
Example

Q/A

Copyright IBM Corporation 2003

Business Consulting Services

What is Service-Oriented Architecture?


Business

SOA in context

a set of services that a business wants to expose to their customers and partners,
or other portions of the organization

SOMA focus

Architecture

an architectural style which requires a service provider, requestor and a service


description
a set of architectural principles, patterns and criteria which address characteristics
such as modularity, encapsulation, loose coupling, separation of concerns, reuse,
composability and single implementation

a programming model complete with standards, tools and technologies such as


Web Services
Implementation

10

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Composable
Processes

An SOA is composed of multiple layers that decouple the


provider and consumer views

ServiceOriented
Modeling

(IBM
Component
Business Modeling)

Composable
Services
(SOA)

Composite service
Atomic service

Data Architecture

business processes

Quality of Service

Integration

Service Consumer

process choreography

services
atomic and composite

Service Provider

SOMA focus
11

consumers

components

existing applications

Custom
Custom
Application
Application

Package
Package

Copyright IBM Corporation 2003

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Agenda

Bridging Business-IT Gap


-

Component Business Modeling


SOA

Service Oriented Modeling and Architecture


-

Overview
Example

Q/A

12

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Business Consulting Services

At the heart of SOMA is the identification and specification of processes (flows),


services, and components that will realize them

<< Input from: Business Componentization/Analysis >>

Identification
of candidate Services, Components, and Flows

Specification
of Services, Components, Flows

Realization
Decisions
<< Output to: SOA Implementation >>

SOMA activities are grouped into three major steps

13

SOMA Identification discovers candidate services, enterprise components and flows


SOMA Specification makes service exposure decisions, and specifies the services and enterprise
components to realize them
SOMA Realization captures realization decisions

Copyright IBM Corporation 2003

Business Consulting Services

Agenda

Bridging Business-IT Gap


-

Component Business Modeling


SOA

Service Oriented Modeling and Architecture


-

Overview
Example

Q/A

14

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Rent-a-car hot components


Marketing & Customer Mgt.

Products

Rentals management

Customer Segmentation

Rental Product Strategy

Location & Channel Strategy

Rental Fleet Logistics

Business Administration

Fleet Strategy

Corporate / LOB Strategy

Fleet Planning

Financial Management & Planning

OEM Relationship Planning

Real Estate Planning

Location Design & Layout


Direct

Customer Relationship Strategy


Product Development / Design
Channel Design & Layout

Marketing Strategy & Planning

Alliance Management

Customer Behavior Modeling

Promotions Management

OEM Performance Management


Business Performance Reporting

Market & Competitor Research


Location Operations Management

Legal & Regulatory Compliance

Pricing Management

Control

Real Estate & Construction


Management

Reservations Management

Risk Management

Call Center

Workforce Management
Stock Ledger
HR Management (Career Dev.,
Training, Recruiting)

Campaign Management

Customer Service
Preferred Member Mgmt
Execute

For illustration only

In-bound Logistics
Segmentation Management

E X A M P L E

Channel & Location Profitability

HR Administration / Payroll

Purchasing / Sourcing

Rentals & Reservations

Location Operations

Time & Attendance

Fleet Servicing

Corporate Audit

Demand Forecasting

Corporate Accounting (GL, AP,


A/R, Treasury, etc.)

Customer Communications
Indirect Procurement
Mass Marketing & Advertising

Target Marketing

15

Fleet Management

PR & Investor Relations

IT Systems & Operations

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Rent-a-car Rentals and Reservations hot component with collaborating


components, component descriptions and business process
Offered Service
Consumed Service

Vehicle Availability

Rent Vehicle
Location
Information

Vehicle
Availability

Check Rates

Management

Check-In Vehicle
Rentals & Reservations

Location Promotions

Promotions

Check-Out Vehicle

Customer Profile

Location Promotions

Customer Profile

Customer
Service

Rentals &
Reservations

Execute level Biz component; Provides business services related


to vehicle rental reservations; Provides support for both the
reservations and rentals business processes

Customer Service

Execute level Biz component; Responsible for servicing the


customer; Offers, among other things, services relating to
maintenance of customer profile

For illustration only

Management

E X A M P L E

Reserve Vehicle

Fleet
Location Information

Rent Vehicle
Business Process

Promotions
Management

Control level Biz component; Responsible for the management of


promotions across the board

Fleet Management

Execute level Biz component; Responsible for providing services


around Fleet management, Fleet availability, etc

16

Reserve
Vehicle

Check-out
Vehicle

Check-in
Vehicle

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Rent-a-car Goals and Key Performance Indicators (KPIs)

Time to deliver a new business service = 2


wks

Streamline processes to reduce


operating costs

Operating cost reduction from July 2004 levels


= Reduce by 20% after deployment of
services platform

Increase Revenue by 20% by the end


of FY2005

Revenue increase in FY2005 over FY2004 =


20%

For illustration only

Increase the speed and agility in


delivering new business services

Goal:
KPI:

17

KPI

E X A M P L E

Goal

Business aspiration, usually highlevel


Measurable Objectives

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SOMA identifies services through three complementary techniques


Identification

Domain Decomposition (Top Down Analysis)


Existing Asset Analysis (Bottom-up Analysis)
Goal-Service Modeling
Top Down
Analysis
Domain
Decomposition

Specification
Realization

Align Services
with Business Goals
Goal-Service
Modeling

Existing Asset
Analysis

Helps Scope Service


Identification Process

Bottom-up
Analysis
Service Specification

18

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Rent-a-car Domain Decomposition Analysis

Identification
Specification

Domains

Realization

Functional Areas
Products

Functional
Area

Customer
Service

Promotions
Management

Rental
Fleet Logistics

Rentals
Management

Fleet
Management

Rental

Reservations

Pricing

0.Rent Vehicle
1.1
Reserve
Vehicle

1.3
Check-in
Vehicle

1.1.1

1.1.2

1.2.1

1.2.2

1.2.3

1.2.4

1.3.1

1.3.2

1.3.3

1.3.4

Check
Rates

Make
Reservation

Locate
Reservation

Modify
Reservation

Create Rental
Agreement

Sign-out
Vehicle from Lot

Locate Rental
Agreement

Process Return
Information

Process
Payment

Return
Vehicle to Lot

1.1.1.1
Get Location
(pick-up/
drop-off)

1.1.1.2
Get Date / time
(pick-up/
drop-off)
1.1.2.1
Confirm
Rental
Information

19

1.2
Check-out
Vehicle

1.1.1.3
Choose
Vehicle

1.1.2.2
Get Customer
Information

1.1.1.4
Get Options
Information

1.1.2.3
Get Payment
Information

1.1.1.5
Check Vehicle
Availability

1.1.2.4
Confirm
Reservation

E X A M P L E

Marketing &
Customer
Management

For illustration only

Domain

1.1.1.6
Offer Rates
For Selection

1.1.2.5
Create
Reservation

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Rent-a-car Top-Down service identification

Identification
Specification
Realization

atomic and composite

components

For illustration only

services

Check-in Vehicle

E X A M P L E

Reserve Vehicle

Data Architecture

Check-out Vehicle

Quality of Service

Rent Vehicle

process choreography

Integration

business processes

existing applications

20

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Identification

Rent-a-car Goals, sub-goals as recorded in the Goal-Service


Model, and services identified for sub-goals

Specification
Realization

Goal-Service Model
Increase Revenue by 20% by the end of FY2005

Introduce New Products


Introduce New Channels
Increase Revenue per transaction

21

For illustration only

Up-sell higher class vehicle


- Understand Customer Profile
- Determine types of Up-sell vehicles
- Check vehicle availability
Cross-sell additional options
- Purchase options individually
- Purchase option packages
Cross-sell Partner services
- Reserve Hotel rooms
- Reserve Airline tickets
- Book destination attractions
- Sell Navigation equipment post-rental

E X A M P L E

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Identification

Rent-a-car Existing Asset Analysis examines existing applications


to discover functions that may become service realizations

Specification
Realization

Check-in Vehicle

services
atomic and composite

existing applications

For illustration only

components

???
Display
Cancel
Modify
Create
Reservation Reservation Reservation Reservation

Rate
Shop

IMS Transactions
IMS DB

22

E X A M P L E

Reserve Vehicle

Data Architecture

Check-out Vehicle

Quality of Service

Rent Vehicle

process choreography

Integration

business processes

dip into
realization

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Identification

Rent-a-car Specification and Realization activities complete


analysis and design

Specification
Realization

Check-in Vehicle

atomic and composite


Create
Reservation

Modify
Cancel
Rate
Display
Reservation Reservation Reservation Shop
Transaction
Mgmt.
Component

components
Reservation Enterprise Component

Customer
Component
Vehicle Component

Permissions
Component
Rating Component

Log
Component

Data Access
Component
Event
Audit
Notification Component
Component
Persistence
Component

existing applications

Display
Cancel
Modify
Create
Reservation Reservation Reservation Reservation

Rate
Shop

IMS Transactions
IMS DB

23

For illustration only

Session
Management
Component

services

E X A M P L E

Reserve Vehicle

Data Architecture

Check-out Vehicle

Quality of Service

Rent Vehicle

process choreography

Integration

business processes

Permissions
Component

Queue
Mgmt.
Component

Copyright IBM Corporation 2003

Business Consulting Services

Agenda

Bridging Business-IT Gap


-

Component Business Modeling


SOA

Service Oriented Modeling and Architecture


-

Overview
Example

Q/A

24

Copyright IBM Corporation 2003