November 17, 2008

Great Expectations Can SOA Deliver?

Bart Narter Orlando, Florida

A member of the Oliver Wyman Group

CONFIDENTIAL | www.oliverwyman.com
Document number

Great Expectations: Can SOA Deliver?

Agenda
What is SOA? Technical details What does it do for me?

How do I deploy it?

2008 Oliver Wyman www.oliverwyman.com

Document number

What is SOA?

Loosely coupled modular services to support both business and IT requirements.

So what does that mean?

2008 Oliver Wyman www.oliverwyman.com

Document number

Loosely coupled

Services are independent. They dont know or care whether the service is: Running on Windows, J2EE or a Mainframe Written in assembler, C, Java, or COBOL. Running on a machine in the U.S., India, or China Being served by a CRM system, a DDA system, or a database So what does that do for me? Enables a myriad of different (legacy) systems to supply information in a consistent way using SOA.

2008 Oliver Wyman www.oliverwyman.com

Document number

Modular

Services are no longer monolithic applications, but broken into compound and granular services.
Example: Initiating a transfer is a compound service, that might comprise the following granular services: Find customer Authenticate customer Find all accounts and balances (for display) Find account (the funding account) Get account balance (to verify availability of funds) Find account (the receiving account) Debit account (the funding account) Credit account (the receiving account) Find all accounts and balances (for re-display)

2008 Oliver Wyman www.oliverwyman.com

Document number

So what does modular do for me?

Note that in the previous example we reused a number of services within the compound service. Other compound services will reuse these services as well, driving consistency (= lower risk), lower cost, and flexibility.

2008 Oliver Wyman www.oliverwyman.com

Document number

SOA is an IT architecture consisting of loosely coupled modular services to support both business and IT requirements.

Loosely coupled: runs on a myriad of applications, systems, platforms and locations to tie together new and legacy systems Modular: broken into compound and granular services to enable reuse Business and IT: across the entire organization.

2008 Oliver Wyman www.oliverwyman.com

Document number

SOA from a technical viewpoint

Today SOA is used to broadly define a set of products and services that range from data conversion services, to portal tools, which is why it is very difficult to answer the question, Do you use SOA? A map of SOA components on the next slide should clarify.

2008 Oliver Wyman www.oliverwyman.com

Document number

Great Expectations: Can SOA Deliver?

Agenda
What is SOA? Technical details What does it do for me? How do I deploy it?

2008 Oliver Wyman www.oliverwyman.com

Document number

A Map of SOA Components

Web Portals Registry and Repository Manage and monitor Human Business Process Management (BPM)

Security

Enterprise Service Bus (ESB)

Data Services

Process Services Business Logic Orchestration System BPM

Databases

Systems of Record

2008 Oliver Wyman www.oliverwyman.com

Document number

10

Design SOA

Portal Design tool Registry and Repository Manage and monitor BPM Modeling and Simulation Tool for business analyst Connection, routing tool for architect

Security

Data Mapping and Conversion Tool

Process Services Business Logic written in Java, C, C++, etc. Low level Service Orchestration Tool for developer

Databases
2008 Oliver Wyman www.oliverwyman.com

Systems of Record
Document number

11

Banking Examples of SOA Internet Banking Registry and Repository: Find Stop Payment Service, Charge Fee service Security: Authenticate user

Manage and monitor

Business Process: Stop Payment

ESB: Routes to appropriate core system

Data Services

Process Services
Business Logic: If Customer_Status = Gold Service_Fee = $8 else Service_Fee = $20

Orchestration:

Fee database

DDA / Current Account

2008 Oliver Wyman www.oliverwyman.com

Document number

12

Web Portals A Map of SOA Components

Web Portals provide a single user interface to multiple back end systems via a service oriented architecture and HTML. Portals can hold multiple service requests and display them in portlets. An example would be with internet banking displaying a customers - banking products - Investments - credit card balance (from another LOB or monoline) - mortgage information (from another LOB or monoline)

2008 Oliver Wyman www.oliverwyman.com

Document number

13

Portal Example

Portlet to credit card company

2008 Oliver Wyman www.oliverwyman.com

Document number

14

Business Process Management can be broken into three parts

Design: Usually with graphical eclipse based tools Execute: Monitor: Make sure that SLAs are met.

2008 Oliver Wyman www.oliverwyman.com

Document number

15

Example of BPM: Open New Checking Account

Human Business Process Management (BPM)

Existing Customer?
Yes

No

Scan KYC Information

Run ChexSystem

Result OK?

Features of Human BPM: It involves human interaction (such as scanning KYC information) It uses external processes such as Chex System. It can be used to standardize business processes and reduce operational risk.

2008 Oliver Wyman www.oliverwyman.com

Document number

16

Enterprise Service Bus (ESB) is the communication backbone of SOA.

Enterprise Service Bus (ESB)

It generally supports the following functionality: Message transmission, routing, queuing, and monitoring Synchronous, asynchronous, point-to-point, and publish/subscribe messages XML and SOAP messages Adapters to legacy systems

It also supports services which are called out in other modules: Data Services Process Services

2008 Oliver Wyman www.oliverwyman.com

Document number

17

Put all the pieces together to get a Services Oriented Architecture

Web Portals Registry and Repository Manage and monitor Human Business Process Management (BPM)

Security

Enterprise Service Bus (ESB)

Data Services

Process Services Business Logic Orchestration System BPM

Databases

Systems of Record

2008 Oliver Wyman www.oliverwyman.com

Document number

18

Great Expectations: Can SOA Deliver?

Agenda
What is SOA? Technical details What does it do for me? How do I deploy it?

2008 Oliver Wyman www.oliverwyman.com

Document number

19

What does SOA do for me?

Enables abstraction of core systems for isolation and potential replacement. Enables efficient messaging and business processes from the front end channels. Enables reuse of common business processes for greater efficiency.

2008 Oliver Wyman www.oliverwyman.com

Document number

20

Enables abstraction of core systems for isolation and potential replacement.

Web Portals Registry and Repository Manage and monitor Human Business Process Management (BPM)

Security

Enterprise Service Bus (ESB)

Data Services

Process Services Business Logic Orchestration System BPM

Databases

Systems of Record

2008 Oliver Wyman www.oliverwyman.com

Isolate this system by accessing only via data services and process services.
Document number

21

Enables efficient messaging and business processes from the front end channels. . Web Portal: Internet Banking Web Portal: Teller Web Portal: Call Center Web Portals: Sales Platform

IVR

Registry and Repository

Manage and monitor

Security

Enterprise Service Bus (ESB)

Data Services

Process Services Business Logic Orchestration System BPM

2008 Oliver Wyman www.oliverwyman.com

Databases

Systems of Record

Document number

22

Enables reuse of common business processes for greater efficiency.

Web Portals Registry and Repository Manage and monitor . Human Business Process Management (BPM)

Security

Enterprise Service Bus (ESB)

Data Services

Process Services Business Logic Orchestration System BPM

Databases

Systems of Record

2008 Oliver Wyman www.oliverwyman.com

Document number

23

Great Expectations: Can SOA Deliver?

Agenda
What is SOA? Technical details What does it do for me? How do I deploy it?

2008 Oliver Wyman www.oliverwyman.com

Document number

24

How do I deploy it?

Channel driven LOB driven IT driven

2008 Oliver Wyman www.oliverwyman.com

Document number

25

Channel driven SOA is the most common

A single channel can create an SOA for itself and then share it later.or not. Wide adoption across the bank isnt guaranteed.

2008 Oliver Wyman www.oliverwyman.com

Document number

26

LOB driven SOA

An LOB might need functionality that isnt available without integrating multiple systems or creating a new system to assist in a business goal.

2008 Oliver Wyman www.oliverwyman.com

Document number

27

IT driven SOA

This is a pure plumbing play and is difficult to drive across the bank. Who pays for these projects?

2008 Oliver Wyman www.oliverwyman.com

Document number

28

National City Business Drivers

Single view of the customer Customer Management Objectives (CMO) drive customer experience Call center ATM Statement messaging Branch

2008 Oliver Wyman www.oliverwyman.com

Document number

29

From old architecture

Channels
Integration Layer CIF Pricing Pricing Pricing Pricing Analytics Later Data Warehouse

Posting Ledgers

Posting Ledgers

Posting Ledgers

...

Posting Ledgers

Campaigns Later
2007 Celent LLC

Notcs

Stmts

General Ledger
2008 Oliver Wyman www.oliverwyman.com

Stmts

Bills

30
Document number

30

To new.
Channels Service Enabled Integration Integration Layer Layer Contain CIF Leverage Pricing Pricing Pricing CIF Pricing

Analytics

Posting Ledgers

Posting Ledgers

Posting Ledgers

Posting Ledgers

...

Near Real Time

Data IDH Warehouse Warehouse

Notcs

Contain Leverage General Ledger

Stmts

Stms

Bills

Campaigns
2007 Celent LLC

Correspondence 31
Document number

Data

2008 Oliver Wyman www.oliverwyman.com

31

Additional Questions?

Read the Celent Reports A Tale of One City: Core Renewal via SOA at National City Bank - http://www.celent.com/PressReleases/200712122/CoreRenewalNatCity.asp A Christmas Carol: Wells Fargo Sings the Praises of SOA - http://www.celent.com/PressReleases/20071221/WellsFargoSOA.asp Great Expectations: Can SOA Deliver? Part I: Core-Driven SOA (Non-US) - http://www.celent.com/PressReleases/20080516/GreatSOAPartI.asp Great Expectations: Can SOA Deliver? Part II: Core-Driven SOA (US) - http://www.celent.com/PressReleases/200805xx/GreatSOAPartII.asp Great Expectations: Can SOA Deliver? Part III: Front End SOA Great Expectations: Can SOA Deliver? Part IV: Platform SOA To ESB or not To ESB

Or Contact
Bart Narter (bnarter@celent.com) San Francisco

2008 Oliver Wyman www.oliverwyman.com

Document number

32