Accelerating Your SOA

Implementation

Bret Dixon
SVP, Professional Services
BEA Systems

November 7th, 2006

BEA Confidential. | 1
Agenda

The Market Today

Moving To The Next Stage of SOA Implementation
Summary
Agenda

The Market Today

Moving To The Next Stage of SOA Implementation
Summary
 The Debate Is Over: A New Approach For
Delivering IT Applications Has Been Embraced
Sales Engineering Service Customers

“Role-based” B2E B2C Partners

Composite
Applications…
Non-Functional
Composite Applications Requirements

Services Management

Infrastructure Layer
…connect to business

Common Services
Standards
services, built and Presentation Services

Service Bus

Service
Development
managed with an Tools
Shared Business Services
integrated suite on Configuration
Management
open standards, with System
supporting Information and Access Services Management

infrastructure… Network
Management

Enterprise
Data and Middleware Provisioning
Information Systems
…using content from Business
Activity
Monitoring
“Vanilla” ERP and
MiddleWare Directories
legacy applications Custom Applications Databases
Interactions
(TUXEDO, MQ Patterns
Third Party Products (Erp, CRM, etc.) Series,ect.)
The Stakes Couldn’t Be Higher
In Enterprise Software

“ It seems that if SOA really takes

over, the software that links
applications together, rather
than the applications themselves,
will become the most important
strategic decision that CIOs
make.”
- Christopher Koch
Executive Editor, CIO Magazine
February 2006
SOA Starting Points
High

Business-Led Mega
Projects Projects
Business Sponsorship

Process IT-Led
Projects Projects

Low

Low SOA Complexity High

 The Next Big SOA Challenge
Moving Past the Division
Enterprise level
services
SOA
Maturity Cross divisional SOA
Level services Optimized

Division level
services SOA
Managed
Project level
services SOA
Repeatable

No
SOA
implementations
Defined

SOA
Ad Hoc

No SOA

Exploring Expanding Exploiting

Companies Are Moving Forward
Now With SOA
Enterprise-wide 16% Enterprise-wide
SOA 8% SOA up 200%
Department-wide 12% Department-wide
SOA 4% SOA up 300%,
28%
Pilot Projects
13%

25%
Evaluation
20% 2006
2005
Not Planning to 7%
Deploy 21%

12%
Don't Know
32%

Q: What Stage Is Your Company Currently In

With Respect to SOA?
BEA SOA Cost Benefits
Deployment Status High number of
Enterprise-wide
deployments

30% Deployed in one pilot project

36%

Deployed beyond pilot phase to

deployment on 2-3 projects
Deployed enterprise-wide

34%

US Europe
19% 25%
43% 45%

38% 30%

Indicate the status of SOA deployment in your organization.

Agenda

The Market Today

Moving To The Next Stage of SOA Implementation
Summary
Plan for SOA in Multiple Dimensions
The BEA SOA Domain Model
©

Business
Strategy and
Process

Costs &
Architecture
Benefits

Organization &
Governance
Organization & Building Blocks
Governance

Projects and
Applications
Moving To The Next SOA Stage
Six Key Initiatives Business

Connect the
Business to the
Capability
Benefits Architecture

Define & Establish An

Capture Your Enterprise
Benefits Architecture

Organization
Align The& Make Service
Governance
Organization for Engineering a
Shareholder Discipline
Organization Value Building Blocks

Build A Stream
of Connected
Projects

Projects
Moving To The Next SOA Stage
3 Types Of Leadership
Requires
Developmental
Leadership
Business
Strategy &
Connect
Process the
Business to the
Capability
Costs &
Benefits
Define & Establish An
Capture Your Enterprise
Benefits Architecture
Requires Requires
Organization &
Operational Governance Architectural
Leadership Align The Make Service Leadership
Organization for Engineering a
Shareholder Projects Discipline
Value &
Applications

Build A Stream
of Connected
Projects
Moving To The Next SOA Stage
Meeting The Operational Challenges

Costs &
Benefits
Define & How do I justify the
Capture Your costs?
Benefits

Organization &
How do we make
Governance
Align The
SOA O&G work
Organization for between Business
Shareholder
Value
Units, or between
countries?
 BEA SOA Cost Benefits
SOA Barriers Nearly 40% of SOA
projects are impeded
Yes
39% due to lack of SOA
No
61% confidence

Lack of
54%
confidence
Is SOA justification in big payoff

currently impeding the Securing

47%
funding
start or extension of
SOA projects? ROI not strong
Which of the
enough
42%
following are
roadblocks to
Unable to build a
case
34%
justifying
SOA in your
C-level skeptics 31% organization?
 Define & Capture Your Benefits:
Three Levels of Justification

Strategic Soft dollar Hard dollar

 SOA as a matter  SOA costs and  SOA ROI

of fundamental benefits calculated for
business categories specific projects
technology identified
strategy
 SOA  SOA specific
 SOA as core benefits/root
requirement for causes costs quantified
business agility articulated, and offset by
savings range benefits on
indicated specific projects

Mix

Source: Forrester SOA Investment Strategies 2006

BEA SOA Cost Benefits
SOA Reuse Expectations
34%
75% of companies
expect 11- 40% reuse

21%
20%

9%

6%
5% 5%

1%

no reuse 1% to 10% 11% to 21% to 31% to 41% to >50% Unsure

20% 30% 40% 50%

What level of reuse do you expect?

BEA SOA Cost Benefits
SOA Vision
Expected Areas of Impact
IT cost savings
30% Primary Driver

Customer service 65%

improvement 23%

Faster time to 56%

market 21%

Information 53%

visibility 6%

New products or 48%

services 6%
What is the primary driver for the
Regulatory 36% SOA vision in your organization?
compliance 5%

32%
In which areas do you expect to
New channels
5% see impact on your business as a
result of deployment?
Mergers and 25%

acquisitions 4%

Major competitor 16%

has SOA initiative 1%

EMEA Financial Services Customer
Complex Interdependency Between Costs & Benefits
SPL £500k Benefit

Weblogic Strategic
Vestings

MEP E-Enablement
Framework
Equator
£4.1m Benefit

4Front Service
OCDB Differentiation
£5.1m Benefit £250k Benefit
NWW
Atlas2
Smooth
DMR
Scarlett Total Investment =
£200k Benefit £6.2m
£70k Benefit
£325k Benefit Total Benefits =
4 Front Benefits E-Enablement Benefits
£9.7m
• Reduction in avg time to handle a call • Extended services to Financial Planners
• Ease in training, outsource-ability • Extended services to Business Partners
• Increased client satisfaction • Reduced IT project costs by 75%
Moving To The Next SOA Stage
Meeting The Operational Challenges

Costs &
Benefits
Define & How do I justify the
Capture Your costs?
Benefits

Organization &
How do we make
Governance
Align The
SOA O&G work
Organization for between Business
Shareholder
Value
Units, or between
countries?
Organization and Governance Matters

“In 2006, lack of working governance

mechanisms in medium to large (more than 50
services) post-pilot SOA projects will be the
most common reason for project failure (0.8
probability)”

-Paolo Malinverno, Gartner Group

Organization and Governance:
Rationalization
There is no recognized approach to rationalization of shared
components
Business within and across portfolios
Building
Strategy
Organization &
Blocks
• Each Portfolio/LOB has its
& & Process Architectu
Costs
Governance
Benefits
Projects
&
own technology assets that
re
are not used across the
Architecture Applications

Building enterprise
Business Blocks
Strategy &
Process Organization &
Projects Governance
• Within portfolios there are
Costs &
&
Benefits
Application
s multiple instances of
redundant functionality
Organization and Governance: Funding

The funding process IS the governance model

Business
Building
Strategy
Blocks
Organization &
& & Process Architectu
Costs Projects
•Businesses have their own
Governance
Benefits
Architecture re
&
Applications line of credit to choose and
implement ad-hoc solutions
Building
Business Blocks
Strategy &
Process Organization & •Most often ad-hoc solution
Projects Governance
Costs &
&
Benefits selection does not align well
Application
s with the future strategy
Enterprise Implementation Requires an
Enterprise SOA Governance Framework
SOA SOA Principles
Governance High level principals about
Process how SOA is used in the business
Existing Processes and Structures

SOA Business Service Portfolio

SOA Segmentation Decisions
Drives
Supports
SOA Roadmap

Enterprise Decisions
IT Governance

Reference Architecture, Standards

and Influences
Complements

IT Portfolio
and Guidelines that feed into

Influences
SOA SOA Roadmap

Align
Organization
Structure Drives

SOA Services Infrastructure Layer

Utilize
Shared Business, Common Services
and Infrastructure components

Enables

SOA SOA Investment

Communication Which prioritized SOA
and Tools initiatives to invest in
Moving To The Next SOA Stage
Meeting The Architectural Challenges

How do we define an
Enterprise SOA
Reference Architecture
Establish An
Architecture, and Enterprise
what does it contain? Architecture

Building
How do we achieve Blocks
Make Service
consistent service Engineering An
Enterprise
engineering? Discipline

What service
infrastructure do we
need, when?
Establish Your Enterprise Architecture
Example SOA Reference Architecture Table of Contents

Business Context  Data Architecture

 Business Drivers  Integration Architecture
 IT Drivers  Security Architecture
 Prioritized SOA Benefits
Design Guidelines
Reference Architecture  Service Design Guidelines
 Architecture Principles  Information & Access Service
 Definition of a “service” Guidelines
 Architectural Views  Presentation Service Guidelines
Logical view  Service Assembly Guidelines
Implementation View  Service Security Guidelines
Process View
Deployment View
Technology Mapping
 Service Architecture Patterns of Usage
Infrastructure Services
Information & Access Services
Shared Business Services
 Presentation Services
Composition
The Service Engineering Discipline
Enterprise Service Engineering Framework (ESEF)

Enterprise policies & procedures

Specific design guidelines,

Common patterns and examples
SE Policies,
Procedures
& Patterns

Service Enterprise service

identification, Enterprise Service engineering
definition, Engineering disciplines
design Framework
Lifetime service
Enterprise (ESEF) management
interface Common Service Common SE
design
Specifications Disciplines
Establish Your Enterprise Architecture
What makes up a successful SOA Reference
Architecture?
 Authoritative definition of SOA for an organization
Communication vehicle
Compliance tool
Based on well-defined SOA principles and expected benefits

 An architectural blueprint describing

Organization of support for services into categories
Definition of principles and requirements to support each
category and underlying infrastructure
Relationship between SOA and existing architectures
Moving To The Next SOA Stage
Meeting The Developmental Challenges

Connect the
Business to the
Capability
How do I sell the
Business leaders on
the need for a major
change?
How can I connect
them to the
capabilities enabled
by SOA?
Build A Stream
of Connected
Projects
 Example
Alignment of Enterprise SOA
Objectives
Business Objectives IT Principles
Improve Efficiency Ratio Move from Transaction/Product Focus to Customer
 Lending Process Optimization Focus
 Sourcing
Move from Silo LOB Focus to Process/Service Focus
 Call Centre Optimization
Move Towards a Collaborative Development
Grow Revenue – Faster Than Peers in a Sustainable Way Environment
Small to Mid-Size Acquisitions Expose Loosely-Coupled Business Logic to Achieve
Expand Customer Relationships Speed and Flexibility
 Cross-Sell (Internal/External LOB) Reuse Before Extend Before Buy Before Build
 Relationship-based Pricing
IT Costs Aligns with Business Value
Customer Expansion
 Sales Effectiveness (Wholesale Mortgage & Corporate lending)
Adopt a Process View of the Enterprise
 Risk Management * Inherit / Review Existing COIS IT Principles

Prioritized SOA Benefits SOA Architectural Principles

• Guiding methodology that allows IT to deliver both
core system renewals and new solutions in a step-
wise fashion.
• Extensible services beyond and across the enterprise
• Rapid development of solutions
• Consistent, accurate and predictable customer data
• Enablement of Business/IT Alignment
Data is owned by the enterprise
Comply to enterprise & industry standards
Use the DAS layer to access disparate data via a single
consistent access point
Security is designed from the outset
Thou shall Steal & Share – We value reuse
Separation of business logic from underlying
technology and delivery channels
Separate business process from the service
component
Instrumentation, traceability, ‘ilities’
BEA SOA Cost Benefits
SOA Projects Demonstrate the effects of
SOA across multiple
Europe
13% projects
32%

25%

30%

24%
34%
One project
Two projects
Three projects
More than three projects
22%
20%

When you justify costs for SOA, how many projects is the justification
based on?
 Build a Stream Of Connected Projects
Incremental Project Harvesting
Applications Composite Applications

Services Management
A 1 2 3

Infrastructure Layer
Common Services
Presentation Services
B 1 3 4 5

Service Bus
5 8

Service
C 6 7 5
Shared Business Services
9 10 11 12
D 2 7 8 9
7
3
E 7 10 11
Information and Access Services
1 2 4 6
F 8 9 10 11 12

G 1 3 7 9 11

Cost Curve Over

Services Catalog Time
1 2 3 4 5 6
7 8 9 10 11 12
Agenda

The Market Today

Moving To The Next Stage of SOA Implementation
Summary
If You Are Early In Your SOA Journey

High

Business Sponsorship
Business
1 Pick your starting point -Led
Projects
Mega
Projects

Process IT-Led

2 Plan with a 2-3 year vision Projects Projects

Low High
SOA Complexity

3 Execute project-by-project Busine

Business
Strategy
ss
Costs and
& Strate
Process Archite
Costs &
Benefi
Benefits gy & Architecture
cture
Organizati
ts Proces
Buildi
4 Approach SOA on six domains on &
Organization &
Governanc
Governance
s
ng
Building
Blocks
Blocks
e
Projects
and
Applications
SOA – Driving Towards Enterprise
Implementation
“Many IT leaders are seeking guidance on
how to approach pressing issues related to
the business and organizational dimensions
associated with SOA, including changing
roles in the enterprise, governance
procedures and policies, and funding
considerations.”

Sandra Rogers, Director SOA Research, IDC

Moving To The Next SOA Stage
Leadership Required at the Enterprise Level
Requires
Developmental
Leadership
Business
Strategy &
Connect
Process the
Business to the
Capability
Costs &
Benefits
Define & Establish An
Capture Your Enterprise
Benefits Architecture
Requires Requires
Organization &
Operational Governance Architectural
Leadership Align The Make Service Leadership
Organization for Engineering a
Shareholder Projects Discipline
Value &
Applications

Build A Stream
of Connected
Projects
SOA Information Available From BEA

Detailed Infoworld and GCR Survey Results

BEA SOA Readiness Survey

BEA Domain Model Whitepaper

Customer Case Studies

Detail on new SOA Service Offerings

Dev2Dev, Arch2Arch, IT2IT, Exec2Exec

www.bea.com/soa
 Accelerating Your SOA
Implementation

Bret Dixon
SVP, Professional Services
BEA Systems

BEA Confidential. | 38