Achieving ROI from SOA
Graham Massey
CTO Accenture UK/I
British Computer Society – Jersey
January 2008
Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Agenda
Recap and levelling on Vision for SOA
Market trends in SOA adoption
ROI from SOA
Accenture Investments around SOA
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3
Vision for SOA
Automotive - “platform engineering”
Differentiation
Seat Altea
VW Touran
Seat Marbella
Skoda Octavia
Audi A3
Original VW Beetle
Original Fiat Panda
VW New Beetle
Manufactured
Assembly
Platform
Simplification
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4
Vision for SOA
Business process and IT
CEO Challenges
• Economic value
• Sustainable growth opportunities
• Cost structure & performance management
Differentiation on the outside
CIO Challenges
Simplification on the inside
Execution mastery
• Reduce systems complexity
• Improve service reliability
COO Challenges
• Process excellence and consistency
• Improve service culture
• Exploit synergies and economies of scale
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5
Vision for SOA – What’s new ?
Composite Solutions
SOA delivers differentiated business capabilities or products through
the composition (orchestration) of reusable, standards-based,
interoperable, autonomous business functions/systems (primarily
delivered through Web Services)
Business
Capabilities
Apply for a new Credit Card
Instant Credit
Check Customer
Credit
Marketing
Systems
Verify Customer
Address
Sales &
Acquisition
Systems
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Risk
Systems
Apply for a Mortgage Loan
Processes
(Assembled &
Orchestrated
Services)
Process Mortgage Loan
Conduct Fraud
Check
Corporate
Systems
Underwrite
Product
Customer
Data
Warehouse
Set-up Account
Business
Units
Trading
Partners
(Business)
Services
Existing
Systems
6
Vision for SOA
Technology overview
Presentation
only
Light-weight GUI
(web interface)
End-to-end
process
monitoring
Business Activity Monitoring
Business Process Orchestration (Service Consumers)
End-to-end
process
management
Service Bus
Transformation
Messaging & Routing
Standards-based integration fabric
Security
Common Services
Registry
Service bus
manages the
interchange of
requests between
service consumers
and providers
Service Providers (and Consumers)
Legacy
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DW
ERP
CRM
Business logic in
custom and
packaged
applications
exposed as
business services
7
Vision for SOA
Key technology elements
There are 4 major technology enablers behind SOA:
Standard-based
(WS-*) Communication
Web Services XML, SOAP, UDDI
Allows standardized
point-to-point communication
between systems through
widely accepted open standards.
ESB
BPM
BAM
Enterprise Service Bus
Business Process Managememt
Business Activity Monitoring
Allows a network of disparate
systems to interact as one
unified enterprise system
by resolving differences in
system HW, SW, networks,
and location.
Allows automated integration
of separate services to
create integrated enterprise
level business processes.
Provides End-to-End process
performance monitoring
Real-time insight and control
of business.
Interface Contract (WSDL)
Web Service Provider
(Existing System)
Request Message
Web Service
Consumer
Web Service
HTTP XML SOAP
Interface
Code
getBiographics
`
Client Code
getBiographics
Interface Contract
(WSDL)
queryWatchList
Business
Logic
Can also call:
SOAP XML HTTP
Response Message
Database
Operating System
Message Queue
Active Directory
Etc...
You don’t need all 4 key enablers to have an SOA, but each of them is
important to fully realize the expected benefits.
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8
The promises of SOA
-
Simplification via standards-based interfaces
Extend the life of applications via integration
Maturity of SOA Strategy and Implementation
Technolog
y
and IT
Autonomy of services via loose-coupling
Driven
Projects
Reduced TCO via simplification and reuse
Business
Rapid development, reduced time-to-market
Driven
Improve business agility
Projects
Differentiation via customization
+
0
Percent of Solution
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100
9
The promises of BPM
-
End-to-end process control
Foundatio
n
Maturity of BPM-Based Solutions
Visibility to key process metrics
capabilitie
s
Metrics and data in context
Role-focused composite applications
Advanced
Capabilitie
s
Predictable change via simulation
Flexible, rapidly changeable processes
+
0
Percent of Solution
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100
10
Agenda
Recap and levelling on Vision for SOA
Market trends in SOA adoption
ROI from SOA
Accenture Investments around SOA
Copyright © 2008 Accenture All Rights Reserved.
11
Market trends in SOA adoption
Contemporary forces acting on SOA
Business and Operational Drivers
Technology Trends
 Time-to-market and project cost for new capability within and across
businesses
 Process and organisational flexibility
 Technical flexibility – renewal and operating cost reduction
 Sourcing flexibility
 SOA technology maturity: software
development patterns (custom +
package vendors)
 RIA
 Integration market moving to broadly
SOA approaches
 Real Time Analytics (BPM/BAM)
Green IT`




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Global warming
Rising energy cost
Regulatory risk
Corporate Image
People - Rise of
Gen-Y
 Changing expectations of web
generation customers and
employees
 War for employee talent inside and
outside the organisation
Substitution - Utility
& Cloud computing
 Maturing of SaaS
 Commodity infrastructure
offerings from the global web
properties
 Another generation of web
ASP and BPO
12
IT-driven and Business-driven SOA
opportunities
Serviceoriented
BPR
New
enterprisewide EAI
Strategic
projects
Existing
integration
“re-factoring”
as SOA
Strategic
AR
Program
WSenablement
of existing
apps
Tactical
projects
Point-to-point
application
integration
IT-driven
projects
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Business
process
automation
Data
sharing &
single Data
view
Business
partner
integration
Composite
Solutions
Portal &
Workbench
projects
Compliance &
assurance
Business-driven
projects
13
Adoption Styles
Maturity and value – IT bottom up
Value
Business
Insight/Predictive
IT/Utility/Cross
Enterprise
Integration
Substitution
Transformation level
business change –
process driven
architecture +
Knowledge Worker application renewal
workbenches &
New Businessed
Portals
building from the
start with BPM
Telecoms billing and
operational
Orchestrate
fulfillment
SOA with
Business Partner
Business
integration
Create ESB
Customer & Citizen
eServices
EAI consolidation
Create SOA WS &
Expose Externally
Create SOA WS &
Expose Internally
Maturity
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14
Adoption Styles
User & Information centric (Portals redux)
healthcareprovider
Healthcare Provider
Health
insurance
account
processing
Access to
all business
functions
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Workflow
15
Adoption styles
High Performance – Top Down - Process led
Industry by Industry Accenture is approaching the High Performance
agenda at a business level working top down …
Insightful collection of thought
leadership papers covering industry
trends and 20+ topical aspects of
banking industrialisation, e.g. HPB &
SOA, HPB and Back Office
Manufacturing and HPB & Core
Banking
Powerful collection of reusable
business design components:
• Logical operating model
• Logical process architecture, with
1,600+ capabilities
• 5+ typical operating model
configurations
• Capability maturity model
• Logical Product Architecture
(planned)
• Organisation design
(planned)
Proven outsourcing capability across
Application Process and Business
Process Outsourcing, e.g.
Procurement
Industry-wide Perspective
Strategy and Economics of High Performers
Library of global high performance
case studies and high performance
benchmark database, includes value
drivers (metrics that matter).
Operating Model
Banking Processes (horizontal and vertical)
IT Frameworks and Technologies
Extensive repository of detailed
process models spanning the entire
banking organisation, with well over
1,400 processes documented in a
relationship based BPM application
Services
High
Performance
Consumer
Banking
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High
Performance
Lending
High
Performance
Asset
Financing
High
Performance
Payments
High
Performance
Corporate
Banking
The High Performance Bank
High
Performance
Wealth
Management
Fully integrated link of process design
components to IT frameworks:
• Logical IT architecture
Components
• Service Model
• Business Object Model
Proprietary Software solutions
(Alnova) as well as strategic alliances
(e.g. SAP) that are pre-configured to
enable a suite of business processes
16
Adoption
Four stage maturity model
Organizations typically move through four distinct phases
Phase 4
Phase 3
Phase 2
Phase 1
Organize and
strategize
Management buyin and business
needs.
SOA readiness
assessment
Planning for SOA
transformation
Initial
Deployment
First SOA
projects.
Convert
applications into
web-services
Composed
services to create
business
processes.
0-18 months
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ESB- Based
Solution and
SOA Platform
Emphasis on
strategic and
business services.
Consolidation of
processes and
services in creating
an ESB
Service oriented
design and
development using
SOA tools
SOA is
industrialized
Services - fabric
of business
operations
Cross enterprise
processes
Federation
Utility and
services
infrastructure
Predictive IT
Business Insight
Near real time
18–30 months 30–48 months
17
Backpressure on IT
CIO Challenges of SOA
10 CIO Challenges
Platform Competency
Architectural Standards and Interoperability
Data Architecture
Infrastructure and Operations
Application Rationalization
IT Organization and Enterprise Architecture
Methods and Tools
Testing
Security
Training
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18
Market trends / Adoption
Some personal reflections …
Copyright © 2008 Accenture All Rights Reserved.
.NET
Application
J2EE
Application
Legacy
Application
SOAP/HTTP
JMS/JCA
JCA / MQ
Gateway
SOAP/HTTP
SOAP/HTTP
Adapters
Partner
Web Service
Enterprise
Apps
Enterprise
Apps
Distributed
Query
Engine
Database
Database
19
Agenda
Recap and levelling on Vision for SOA
Position and velocity – market trends in SOA adoption
ROI from SOA
Accenture Investments around SOA
Copyright © 2008 Accenture All Rights Reserved.
20
Achieving ROI from SOA
What’s holding back enterprise adoption ?
• Some organisations are getting stuck in or choosing) to stay at
Phases1,2
Phase 4
Phase 3
Phase 2
Phase 1
Organize and
strategize
Management buyin and business
needs.
SOA readiness
assessment
Planning for SOA
transformation
Copyright © 2008 Accenture All Rights Reserved.
Initial
Deployment
First SOA
projects.
Convert
applications into
web-services
Composed
services to create
business
processes.
ESB- Based
Solution and
SOA Platform
Emphasis on
strategic and
business services.
Consolidation of
processes and
services in creating
an ESB
Service oriented
design and
development using
SOA tools
SOA is
industrialized
Services - fabric
of business
operations
Cross enterprise
processes
Federation
Utility and
services
infrastructure
Predictive IT
Business Insight
Near real time
21
Achieving ROI from SOA
Success factors to build credibility
• Incremental approach – with well aligned business + IT expectations;
governance reality check - metrics
• Initial efforts focused around a new business capability or product line
with a good intrinsic top line growth case
• Some enterprises have found a pure IT cost business case to get started
and establish architecture elements and skills
• CIO’s also report “Beta” exploratory applications on alternative
technologies in suitable niches
• Starting small and scaling fast
• Pragmatic alignment of IT and SOA strategy with strategic vendor (ERP,
platform, OSS) roadmaps
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22
Achieving ROI from SOA
Common challenges that drain credibility
• Too much depth of Process and Service modelling in isolation before
delivering anything
• Excessive IT focus on product selection v.s. prioritisation and goal
alignment around genuine business imperatives
• Platform incontinence – a new architecture per project or phase
• Selling SOA architecture cost solely on “reuse” jam tomorrow
• Tactical investments straying into business criticality without the
operational and governance models to sustain success
• Insufficient focus on training traditional business analysts
• Failure to manage expectations and train project managers
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23
Achieving ROI from SOA
Maturity at the process layer
Keys to Success
• Start small
Phase 1
Phase 2
Phase 3
Phase 4
Basic
Emerging
Managed
Process Excellent
Business BPM Maturity Model
Continuous
improvement
• Identify high-value opportunities
• Process owners are key
Processes measurement drives
business innovation
• Be flexible – the goal is to
improve processes for the
greater good
Processes drive business
• Scale rapidly
Identify Process Owners
Target high value processes
Processes are accessible
• Work closely with the business
• Make processes accessible
Processes are meaningful and reusable
• Start identifying services early
in the lifecycle
Processes are measurable
• Align services to business
functions
Application data and functions are
readily accessible via standards
• Leverage existing tooling where
possible
IT BPM Maturity Model
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IT is Agile and
Adaptable
24
Agenda
Recap and levelling on Vision for SOA
Position and velocity – market trends in SOA adoption
ROI from SOA
Accenture Investments around SOA
Copyright © 2008 Accenture All Rights Reserved.
25
Accenture Investments around SOA
• High Performance Process
Excellence
• Metrics, Models, IT
Frameworks
• Accenture Delivery
Architecture and
methodologies
• Accenture Technology
Laboratory research:
• Knowledge Discovery
• RIA
• Gen-Y
• ATL – India
Copyright © 2008 Accenture All Rights Reserved.
• Vendor innovation centers with
IBM, Microsoft/Avanade, Oracle,
SAP
• Alliances with other SOA
technology providers – BEA,
TIBCO, Software AG etc.
• Mammoth initiative on Secure
SOA and Identity Management
with Sun.
• Tarpon – SOA Infrastructure and
cross enterprise BPM
26
In conclusion
• Thank you for your attention
• Q&A
For more information:
graham.massey@accenture.com
rahul.jayawant@accenture.com
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27