CBM – SOMA - RUP
Flexible Businesses - IT Services – Development Processes
Jouko Poutanen
IT Architect, IBM Software Group
University of Jyväskylä, 11.03.2011
© 2010 IBM Corporation
Agenda
 Component Business Modeling (CBM)
–  Designing Flexible Businesses
  Service Oriented Modeling and Architecture (SOMA)
–  From business services to SOA services
  Rational Unified Process (RUP) & IBM Practices
–  Rightsizing the process of SW development
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CBM – SOMA – RUP
© 2010 IBM Corporation
Context
~ cost, differentiation, focus
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CBM – SOMA – RUP
© 2010 IBM Corporation
Context
Operations
strategy
source: Slack and Lewis (2008)
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CBM – SOMA – RUP
© 2010 IBM Corporation
Component Business Modeling (CBM) - What for ?
  CBM framework provides the foundation for qualitative and quantitative analyses
that can help enterprises to:
  Identify their key differentiating operations as well as those that contribute only
minimally to their growth and profit
  Identify business-activity consolidation opportunities to create single instance
components to support their business operations
  Prioritize high cost or high capital components as candidates for operational change
  Prioritize transformation initiatives
  Align technology infrastructure investments with business needs
  Define quantitative results for business and technological change initiatives
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CBM – SOMA – RUP
© 2010 IBM Corporation
CBM Framework
Organize activities by accountability level and competency
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CBM – SOMA – RUP
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What is a Business Component ?
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Example CBM Map from Retail Sector
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Heat Maps Identify Hot Areas to Exploit Business Value
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© 2010 IBM Corporation
Applying CBM to Strategy Implementation
Business
Administration
Corporate/LOB
Strategy &
Planning
Direct
Organization &
Process Policies
Alliance
Strategies
Human Capital
Management
Control
Legal &
Regulatory
Business
Performance
Intellectual
Property
Knowledge &
Learning
Execute
Financial
Management
Financial
Planning &
Forecasting
Capital
Appropriation
Planning
Risk
Management
& Internal Audit
Portfolio
Strategy &
Planning
Research &
Development
Marketing
& Sales
Production
Strategy
Customer
Relationship
Strategy
Master
Production
Planning
Demand
Planning
Sales &
Promotion
Planning
Service &
Aftersales
Post
Vehicle Sale
Strategy
Production
Rules & Policies
Program
Management
Production
Scheduling
Supply Chain
Performance
Monitoring
Production
Monitoring
Supplier
Management
Demand
Forecast
& Analysis
Quality
Management
Logistics
Management
Dealer
Management
Inventory
Management
Lease
Management
Parts
Management
Transportation
Management
Order
Management
Vehicle
Service
Procurement
Customer
Relationship
Management
End-of-Life
Vehicle
Configuration
Management
Design
Validation
Change
Management
Cost
Management
Supply
Chain
Supply Chain
Strategy &
Planning
Design Rules
& Policies
Tax
Management
Accounting &
General Ledger
Production
Supplier
Relationship
Planning
Treasury
Building/Facilities
& Equipment
IT Systems
& Operations
Product/
Process
Mechanical
Design
In-vehicle
System Design
Plant
Operations
Process
Design
Tool Design
& Build
Maintenance
Management
Brand
Management
Relationship
Monitoring
Warranty
Management
Strategic Differentiation
Strategic
Competitive Parity
Basic
Quality
Management
1
ref. RBV - capabilitites,
competitive advantage
2
Consolidate
3
Manage as
Utility
4
Achieve
Superiority
Leverage
Specialists
Target operating characteristics
for each component
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CBM – SOMA – RUP
© 2010 IBM Corporation
Smart Cost Reduction by Structural Changes
Rationalization
  Typical initial cost reduction measures
Reduce Capacity
–  Hiring freeze
–  New IT project budget freeze
–  Voluntary departure plans
X
Cost
–  Termination of sub-contracting agreements
x
–  Early retirement
Reduce
FTE,
minimize
overlap,
improve
control
Volume
Structural Change
Increase Productivity
  Typical advanced cost reduction initiatives
x
–  Relocation of resources/applications
–  Strategic alignment & prioritization
–  Maintenance/process outsourcing
–  Process optimization
Cost
–  Central vs. decentralized IT governance
X
Change
operating
model
Volume
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© 2010 IBM Corporation
Direct
Excess capacity
Fit for purpose
Control
Constrained capacity
When considering coverage of
systems, process and information
for a component, three generic
issues tend to arise
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Execution
Product
Management
Advisor/
Intermediary
Administration
Advisor/
Intermediary
Set-up
Regulatory
Reporting
Training
Council
Services
Systems &
Facilities
Helpdesk
End -customer
overmarketing
extension
Product
Development
Campaign
Execution
Channel
Management
-End
Consumer
Sales
Sales
Support
Financial Control
Asset &
Liability
Management
Operational Control
Contract &
Policy Set-up Contact
Servicing
Conservation
Wholesales
Product
Profile
Accounting
&Finance
Planning
Operations
Planning
Service
Management
Campaign
Management
Finance
Management
Manual
Contract
Administration
Alliance
Management
gaps
Customer
Service
Human
Resource
Distribution
Planning
New
Business
Manufacturing
Planning
Sales &
Channel
Management
Business
Planning
Marketing
Asset Mgmt &
Product
Development
Overall operational capacity /
stability for each system, including
possible constraints on future
functional enhancements or capacity
upgrades (integrity and scalability of
code-base and application technical
design)
Business
Administration
Example - Overlay Analysis
Fees &
Commissions
duplication
Claims
processing
In-force
e.g.
Processing
Sys A
Customer
Profile
Contract
Administration
Intelligent
Routing
Contact
Repository
Check
Processing
Correspondence
Trading
Funds
Management
General
Ledger
Treasury
Gaps
No system exists, the system lacks key functionality, or is poorly designed/uses the wrong technology for a specific component
Duplication
Multiple systems compete for the same component, typically adding unnecessary complexity/cost to development,
maintenance and production
Over-Extension
A system designed to support one component is extended to help support others, for which it may not have appropriate
capabilities: Furthermore, as a system gets more diverse/extensive the cost/complexity of its operation increases exponentially
CBM – SOMA – RUP
© 2010 IBM Corporation
CBM Lifecycle
Insight
Architecture
4
1.1 Strategic and Business Objectives
1.2 Business Strategy Summary
1
2
Assess
Business
Strategy
Develop
Business
Component
Model
2.1 Component
Business
Model
2.2 Determine
Business
Processes
2.3 Build Activity
Matrix
3
Identify hot
components
3.1 Define
Evaluation
Criteria
3.2 Attribution and
CBM Heat Maps
Determine
strategic
business
model / value
network
5
4.1 Feasibility and
Readiness
Assessment
4.2 Strategic
Ambition
Statement
6
Define target
component
requirements
Operationalize
strategic
business
model / value
network
mandatory
optional
5.1 Component
Ownership
Statement
7
9
Assess current
component
capabilities
6.1 Component
7.1 Current Cap.
Best Practices
Assessment
6.2 Component
7.2 Status Quo
Collaboration
Opportunities
6.3 Required Cap. 7.3 Overlay Analysis
Assessment
8
Investment
Develop
shortfall impact
Define and
prioritize
opportunities
9.1 Investment
Opportunities
Assessment
9.2 Prioritization
investment
opportunities
9.3 Selective
Project Plan
Development
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Develop
transformation
roadmap
10.1 Business Case
Commitment
10.2 Implementation
Risk Assessment
10.3 Develop
Transformation
Roadmap
8.1 Shortfall impact
8.2 Shortfall Opportunities
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CBM – SOMA – RUP
© 2010 IBM Corporation
Agenda
  Component Business Modeling (CBM)
  Designing Flexible Businesses
 Service Oriented Modeling and Architecture (SOMA)
  From business services to SOA services
  Rational Unified Process (RUP) & IBM Practices
  Rightsizing the process of SW development
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CBM – SOMA – RUP
© 2010 IBM Corporation
Componentized Business and IT Environment Enables
Flexibility
Flexible Business
Transformation
Business Process Outsourcing
Mergers, Acquisitions & Divestitures
Composable
Processes
(CBM)
Component
Business Modeling
Requires
SOMA
Flexible IT
On demand Operating Environment
Service Oriented Architecture (SOA)
Development
Software
Development
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Infrastructure
Management
Integration
Infrastructure
Management
Composable
Services
(SOA)
© 2010 IBM Corporation
SOMA – Bridge Between CBM and SOA
Component Business
Modeling (CBM)
KPI
Metrics
Flows /
Activities
Business Analysis
Map
Attribution
SOMA
Processes
Components
Service-oriented
architecture (SOA)
Use
Cases
BPEL
WSDL
OOAD
Information Technology
Patterns
Services Frameworks
Standards
Programming
Model
  Service-oriented modeling is
necessary to build a serviceoriented architecture
–  SOMA builds on current
techniques
–  Domain Analysis
–  Functional Areas grouping
–  Variability-Oriented Analysis
(VOA)
–  Process Modeling
–  Component-Based Development
(CBD)
–  Object-Oriented Analysis and
Design (OOAD)/Use Case
Modeling
  Service-oriented modeling
introduces new techniques
–  Goal-Service Modeling
–  Service Model creation
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CBM – SOMA – RUP
© 2010 IBM Corporation
Approaches to SOA
CBM
Business process Driven
Top Down
Modeling
to Identify
Business Services
Model Driven
Development
with Intent of Top-down
Service Exposure
Message Driven
( Just integrate
these systems )
Information
Services
(data driven view)
Wrapping System
or Package
for
Service Exposure
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CBM – SOMA – RUP
Legacy
Transformation
(“expose and service-enable
an embedded
Capability”)
© 2010 IBM Corporation
External and Internal Contexts of Services
Direct
Business
& Resource
Admin
New
Business
Development
Product
Delivery
Product
Services
Account
Services
Business
Portfolio
Management
Business
and Resource
Planning
Segment
Analysis &
Planning
Customer
Portfolio &
Analysis
Customer
Sales & Servicing
Planning
Product
Operations
Planning
Product
Services
Planning
Account
Services
Planning
Asset &
Liability Policy
& Planning
Finance
Policies
Business
Policies &
Procedures
Acquisition
Planning
Credit
Policy &
Planning
Product
Oversight
Customer
Behavior
& Models
Sales/
Service
Administration
Product
Operations
Oversight
Product
Services
Oversight
Account
Services
Oversight
Risk/Portfolio
Management
Financial
Control
Relationship
Oversight
Case &
Exception
Handling
Customer Customer Sales
Management
& Servicing
Financial
Management
External
Relations
Business
Architecture
Control
Execute
Business
Unit Tracking
Campaign
Management
Reconciliations
Each
is
Audit/Assur- CBM componentApplication
ance/Legal/
Processing
Compliance
responsible
for business
activities
and
processesCredit
Business
Product
Unit
Development
Administration
& Deployment
Administration
Authorizations
DDA/CheckSpecific
Processing
Inventory
Management
Customer
Accounting
Consolidated
Book/Position
Maintenance
Treasury
Human
Resource
Management
Market
Research
Relationship
Management
Transaction
Consolidation
Retail
Lending
Cash
Inventory
Billing &
Payments
Securitization/
Syndication
Financials
Consolidation
Transaction
Capture
Services
Card-specific
Processing
Market
Information
Collections
& Recovery
Inter-bank
Account
Management
Accounting
General
Ledger
Sales
Card Financial
Capture
Correspondence
Business processes and
Facilities
Product
Collateral
Operation &
activities
areDirectory
automated
Handling
Maintenance
by business (SOA)
Systems
Customer
Development
&
Marketing
Profile
services
Operations
Fixed
Asset Register
Campaign
Execution
These are supported
by
collaborating fine
Production
Assurance
grained
services and
(Help Desk)
object interactions
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Fraud/AML
Detection
CBM – SOMA – RUP
Contact/
Event
History
Document
Management
& Archive
Dialogue
Handler
Smart
Routing
Merchant
Operations
Rewards
Administration
© 2010 IBM Corporation
SOMA Supports Modeling Solutions Based on the Five Main Constructs of SOAServices, Components, Compositions and Flows, Information, Rules and Policies
Consumer Composition via Mashups, Web 2.0 – Allow
composition of services at consumer layer, social software,
(Flows) Business Processes – represent the flows of activities
required to complete a business process. They are compositions of services
targeted to achieve business goals
Services –the main structuring element required by a service consumer,
provided by the service provider. Offers functionality and quality of service, both
of which are externalized within service descriptions/policy. Services could be
atomic or composite
Components – that realize not only the functionality of the services they
expose but also ensure their quality of service (the QoS advertised by the
Service provider implementing (“realizing”) the services
Information – that flows between the layers and within a layer
<<Object>>
<<Object>>
<<Object>>
Rules and Policies – that constraints the services, components, flows
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CBM – SOMA – RUP
© 2010 IBM Corporation
CBM to SOMA Approach
Service Oriented Modeling and Architecture (SOMA)
CBM Driven
Business Architecture
1
Confirm
Business
Components
Service Identification
Component/KPIs
Service
Model
(Identification
Level)
CBM Map
2
Map Business
Capabilities
Service Specification
Target
Capabilities
5
9
Define
Service
Specification
Component /
Capability
Services
Perform
Goal/Service
Modeling
10
Target Capabilities
Enterprise
Processes
& User
Scenarios
Process
Models
3
4
Analyze
Business
Processes
Service
Model
(Specification
Level)
Develop
Low Level
Design
Specifications
13
Perform
Sub-System
Analysis
Business
Activities
Identify
Business
Activities
Development
14
11
Target Process
Models
6
Candidate
Service
List
Identify
Services
(Domain
Decomposition)
8
Document
Candidate
Services
Develop
Component
Specification
15
7
CBM Application
Overlay
Analyze
Existing
Assets
Service to
System
Mapping
12
Perform
Service and
Component
Realization
Code &
Unit Test
Services
Perform
Service
Acceptance
Test
Service Realization
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CBM – SOMA – RUP
© 2010 IBM Corporation
Example Architecture
source: Arsanjani et. al. (2008)
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CBM – SOMA – RUP
© 2010 IBM Corporation
Agenda
  Component Business Modeling (CBM)
  Designing Flexible Businesses
  Service Oriented Modeling and Architecture (SOMA)
  From business services to SOA services
 Rational Unified Process (RUP) & IBM Practices
  Rightsizing the process of SW development
22
CBM – SOMA – RUP
© 2010 IBM Corporation
Process Management
Create, customize, publish, and enact software & systems development processes
according to project needs
Governance
Process Design & Management
Leverage a rich set of
process assets and
guidance to capture &
maintain development,
management, and
governance processes
Automate, integrate, and
govern core business
processes of software and
systems delivery through an
integrated set of proven,
industry leading tools
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CBM – SOMA – RUP
Establish consistent processes
driven by standards and best
practices to support corporate
governance objectives
Process
Library
(with RUP)
Rational Team
Concert / Jazz
Rational
Method
Composer
Manage, author, configure,
and deploy effective
processes tailored to
project needs
© 2010 IBM Corporation
Rational Unified Process (RUP) – Key Concepts
RUP s practices

–  Regular delivery of working software
–  Active stakeholder participation
–  Test-Driven Development (TDD)
–  Collaborative development
–  Continuous builds
–  Early and frequent system-level testing
–  Just enough process
RUP Differentiators – scale agility to complex
situations

–  Executive oversight
–  Application complexity
–  Geographical distribution
–  Large team size
–  Compliance requirements…
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CBM – SOMA – RUP
© 2010 IBM Corporation
RMC and the Rational Software Delivery Platform
  Generate project plans
from your process library
  Integrates with RPM
and 3rd party tools
ess-
Proc
Proce
D
ss-Gu
id
Rational Method Composer
Pla
riven
nnin
g
Rational Project Composer
ed To
ol Be
havio
r
  Process Advisor - relevant
guidance for what you re doing
  Tool Mentors – guidance for
how to implement the process
with tools at hand
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CBM – SOMA – RUP
Rational Team Concert / Jazz
© 2010 IBM Corporation
Practices – the newest part of the Rational Process Library
The industry s most robust collection of best practices guidance
Governance
Governance
Governance
Governance
Process Design & Management
Customizable Process Library
Rational
Unified
Process
IBM
Practices
GDD
ITUP
CMMI
SOA
Gov
Over 100 practices and processes
to leverage & customize…
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CBM – SOMA – RUP
Tooling
  Author
  Manage
  Re-use
  Configure
  Tailor
  Publish
  Reporting
  Deploy
  Estimate
  Rational Process Library
–  IBM Practices
–  Agile Core
–  Governance and Compliance
–  Requirements Definition and
Management
–  Configuration Management
–  Architecture Management
–  Quality Management
–  SOMA v.2.9
–  …
© 2010 IBM Corporation
What are practices?
  A practice can be adopted independently
from other practices
–  Organizations can adopt one or a few practice at a
time
  A practice is a documented approach to
solving one or several commonly occuring
problems
–  Can be informally document through one white
paper, or formally documented through a
combination of training courses, tutorials, process
content, redbooks, etc.
  A practice has a positive impact on one or
serveral business objectives
–  Time-to-Market, Improve Quality, Increase
Innovation,...
  The adoption of a practice, and it's impact
on business objectives, can be effectively
measured
  Practices apply the principles of objectoriented architecture to process
management in order to provide atomic,
reusable "components" of process.
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CBM – SOMA – RUP
© 2010 IBM Corporation
Adopting Practices
Customer Business Challenges
Operational Objectives
Software Delivery Best Practices
Use-case driven development
  Create financial products more quickly
  Reduce time-to-market
  Functionality of customer web falling behind competition
  Improve productivity
Continuous integration
  Inconsistencies with integrated financial reporting
  Increase innovation
Shared vision
  Recent SOX audit failure
  Improve consistency/predictability
  Improve oversight
  Enable flexible/global resourcing
  Satisfy compliance mandate
Whole team
Risk-value lifecycle
2-level project planning
Test-driven development
Asset-based development
RMC
Process
Library
Asset governance
Iterative development
SOMA
Enterprise SOA
SOA governance
Architecture modeling
Security testing
Functional testing
Test management
Structured testing
…
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CBM – SOMA – RUP
© 2010 IBM Corporation
Practices – Flexible Adoption Model
Practices for Agile Business
  Measured Capability Improvement Framework
  Measure value and adoption
  Take corrective actions
 Practice authoring &
tailoring
~CMMI
Lvl 4-5
Practices for Scaling Projects
  Component software architecture
  Requirements definition
  Requirements management
Practices for Small Projects
  Shared Vision
  UC-Driven development
  Risk-value lifecycle
RUP-like
Scrum
29
  Independent testing
  Performance testing
  Security testing
  Test management
  Iterative development
  2-level planning
  Whole Team
CBM – SOMA – RUP
  Evolutionary Architecture
  Evolutionary Design
  Iterative change management
Agile Core
XPish
OpenUP
  Continuous Integration
  TDD
  Rapid Testing
© 2010 IBM Corporation
Case Study
..approach applicable for retail sector - just change ’products’ to more tangible ones..
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CBM – SOMA – RUP
© 2010 IBM Corporation
From here...
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CBM – SOMA – RUP
© 2010 IBM Corporation
..to here
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© 2010 IBM Corporation
More Information
  CBM
–  www-935.ibm.com/services/us/imc/pdf/g510-6163-componentbusiness-models.pdf
  SOMA
  Elements of Service-Oriented Analysis and Design
–  http://www.ibm.com/developerworks/webservices/library/wssoad1/
  Case Study
–  http://www.redbooks.ibm.com/abstracts/REDP4467.html?Open
  IBM Practices, Rational Method Composer, RUP
  Practices Plug-ins for Rational Method Composer
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© 2010 IBM Corporation
References
  Arsanjani, A. et. al. (2008), SOMA: A method for developing service-oriented solutions, IBM
Systems Journal, vol 47, Is 3
  Slack, N. and Lewis, M. (2008), Operations Strategy (2nd edn), London: FT Prentice Hall
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© 2010 IBM Corporation