Service oriented enterprises
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Service Oriented Enterprises. Dr. Setrag Khoshafian VP of BPM Technology Pegasystems Inc. www.pega.com. What are Service Oriented Enterprises (SOEs)?. You have a technology perspective: Loosely couple applications, trading partners, and organizations Invoke via service calls.

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Service oriented enterprises

Service Oriented Enterprises

Dr. Setrag Khoshafian

VP of BPM Technology

Pegasystems Inc.

www.pega.com


What are service oriented enterprises soes

What are Service Oriented Enterprises (SOEs)?

  • You have a technology perspective:

    • Loosely couple applications, trading partners, and organizations

      • Invoke via service calls.

    • Services involved in processes with human participants

      • Provides even greater value than the sum of component services.


What are soes

What are SOEs?

  • You also have a cultural perspective:

    • Each party sees herself as a service provider as well as a service consumer

    • Focus on serving various communities: 

      • Customers

      • Shareholders

      • Trading Partners

      • Employees

      • Government


Service oriented enterprises soe

Customers

Community

Shareholders

Employees

Partners

Government

Service Oriented Enterprises (SOE)

SOE


Soe goal

SOE Goal

  • Align Business and IT

SOA Technology Alone Will Not Do It

IT

Business


The soe challenge execution gaps

Management Goals

Management Goals

Sales

Service

Operations

Compliance

Partners

Sales

Sales

Service

Service

Operations

Operations

Compliance

Compliance

Partners

Partners

Sales

Service

Operations

Compliance

Partners

Systems

Systems

The SOE Challenge…Execution Gaps!


The soe challenge execution gaps1

Management Goals

Sales

Service

Operations

Compliance

Partners

Sales

Service

Operations

Compliance

Partners

Systems

The SOE Challenge…Execution Gaps!

Business Changes Worsen Execution Gaps


Solution soe architecture

Solution: SOE Architecture

SOE Architecture=

Performance Management +

Business Process Management +

IT SOA Architecture (ESB)


The service oriented enterprise it service infrastructure

The Service Oriented EnterpriseIT Service Infrastructure

Service Oriented Architecture

IT Service Infrastructure

IT


Service infrastructure

Service Infrastructure

  • Loose Coupling

  • Standards Based (WS-*)

  • Discovery

  • Service Composition

  • Enterprise Service Bus


Loose coupling

SOAP Response

Internet

HTML Response

Internet

SOAP Request

Client

GET/POST Request

Server (s)

Server (s)

Loose Coupling

isolated from the details of the service’s

implementation language,

platform, location, or other details


Service oriented enterprises

Service Content and Portals: WSRP

Service Management: WSDM

Business Processes and Rules: BPMN, WS-BPEL, WS-CDL

Quality of Service: WS-Security, WS-ReliableMessaging

Service Transactions: WS-Transaction/WS-Coordination

Service Description: WSDL

Remote Service Request/Response: SOAP

Service Transport: HTTP/HTTPS


Capabilities and features of an esb

Capabilities and Features of an ESB

Transform Provider message format toConsumer message format and vice versa(XML to ASCII, XML to XML, etc.)

  • Message Transformation

  • Protocol Transformation

  • Message Routing

  • Security

  • Transaction

  • Orchestration

  • Service Registry

Consumer Services requests use a transportprotocol (e.g. JMS) different from theprotocol (e.g. HTTP) of the Provider

Content based routing of Consumer

messages to appropriate Provider & Vice Versa. Support for rules based routing

Support for WS-Security, SAML, encryption,Authentication and Authorization

Support for WS-AtomicTransaction,WS-Coordination, WS-BusinessActivity

Micro-Flow Orchestration & Choreography


The service oriented enterprise

The Service Oriented Enterprise

Enterprise Performance Management

Service Performance

Business


Service oriented enterprises

CI Methodology

Enterprise Performance

Management

Business Intelligence

Business Activity

Monitoring

Strategic Methodology

Financial

Internal

Vision

Customer

Learning

Business Process Management System

Enterprise Service Bus


The service oriented enterprise1

The Service Oriented Enterprise

Enterprise Performance Management

Service Performance

Business

Business Process Management Suite

Service Integration

Service Oriented Architecture

IT Service Infrastructure

IT

Service Oriented Enterprises, Dr. Khoshafian


Evolution of bpm suites

Evolution of BPM Suites

BPM Suite

BPM

  • Modeling and Simulation

  • Business Rules

  • Business Activity Monitoring

  • Solution Frameworks

  • SOA support

  • Alignment of business & IT

  • Integration:

    • System Participants

    • Trading Partner Participants

  • Process Portals

  • Organizational Model

  • Rich Process Data Model

Workflow

  • Human Participants

  • Flow automation

  • Flow status management

  • Document and Content Centric

  • Workflow Reference Architecture

BPM

Suite


Service oriented enterprises

Enterprise Policies and Procedures

Modeled Policies and Procedures

Modeled

And

Automated

Policies and Procedures

Policies

Procedure

Strategy and Vision Models

Policies

Procedure

Process Models

Business Policy Models

(business rules)

Information & Integration

Model

Organization Model


Service oriented enterprises

Workflow

BPM

Suite

Business

Rules

Business

Process

Monitoring &

Analytics

Solution

Frameworks

Enterprise

Application

Integration

Business To

Business

Integration


Service oriented enterprises

System/Partner and Human Participants

Buyer

Seller

Shipper

Choreography

Buyer

Seller

Shipper

Orchestrate

Orchestrate

Orchestrate


Unable to apply example of swiftnet e i straight through process

Unable to Apply

1

Notification of

Assignment

Notification of

Assignment

Resolution of

Investigation

11

6

3

Unable to Apply

Case Status

Request

2

7

Unable to Apply

4

Notification of

Assignment

Resolution of

Investigation

Resolution of

Investigation

Case Status

Response

5

9

8

10

Unable to ApplyExample of SWIFTNet E&I Straight-Through Process

Remitter

Remitting Bank

Beneficiary Bank

(Using Smart Investigate)

Beneficiary

  • Parse message

  • Check for duplicate cases

  • Create case & route

  • Attach message

  • Locate & attach payment transaction

  • Evaluate transaction

    • Status=Complete?

    • STP?

  • Look up customer record

  • Issue notification of assignment

  • Contact remitting bank

  • Schedule chasers

  • Assign SLA

STP

  • Update case

  • Attach message

  • Issue notification of assignment

  • Send chaser

  • Update case

  • Attach message

  • Resolve case

  • Attach message

  • Send resolution message

  • Levy service fee


Service oriented enterprises

Workflow

BPM

Suite

Business

Rules

Business

Process

Monitoring &

Analytics

Solution

Frameworks

Enterprise

Application

Integration

Business To

Business

Integration


Example

Write-Off?

Yes

No

Example

IF

Dispute Amount is less than $51; AND

Transaction is not disputed as a fraudulent transaction;AND

The customer has disputed less than two transactions this year;

Selection:

World MasterCard

VIP Customer

THEN

Fully credit the customer without even initiating the dispute i.e. Write-off the transaction. 


Service oriented enterprises

Participants

Tasks

Rules


Service oriented enterprises

Workflow

BPM

Suite

Business

Rules

Business

Process

Monitoring &

Analytics

Solution

Frameworks

Enterprise

Application

Integration

Business To

Business

Integration


Customer process management framework bpm solution development

Customer Process Management Framework BPM Solution Development

HealthcareMember

Insurance Customer

Relationship

Banking Customer

Relationship

Extensions

Customer Processes and Rules

  • Customer Profile

  • Customer Entitlement

  • Cross Sell

  • Customer Dispute

  • Agreement Renewals

  • Customer Interaction

BPM Suite

Enterprise

Application

Integration

Business To

Business

Integration

Solution

Frameworks

Business

Rules

Business

Process

Monitoring &

Analytics

Workflow

Greater speed to market and use of best practices enable faster achievement of competitive advantage


Service oriented enterprises

Workflow

BPM

Suite

Business

Rules

Business

Process

Monitoring &

Analytics

Solution

Frameworks

Enterprise

Application

Integration

Business To

Business

Integration


Service oriented enterprises

Example:BalancedScorecard

StrategicMethodology

AnalyticMeasures

BusinessIntelligence

Business ActivityMonitoring

Enterprise

Application

Integration

Business

To

Business

Integration

Solution

Frameworks

Business

Rules

Business

Process

Monitoring &

Analytics

BPMSuite

Workflow

Enterprise Service Bus


Link executing processes to strategies

Link Executing Processes To Strategies

  • Connecting measurable objectives to executing processes and rules, and continuously improve them – in real time.

Customer Satisfaction Index


Service oriented enterprises

CI Methodology

Enterprise Performance

Management

Business Intelligence

Business Activity

Monitoring

Strategic Methodology

Financial

Internal

Vision

Customer

Learning

Business Process Management System

Enterprise Service Bus


Continuous improvement lifecycle

Continuous Improvement LifeCycle

Agents

Process

Architect

Business

Analyst

Six Sigma

Black Belt


Service oriented enterprises

  • Revenue

  • New Products

  • New Processes

  • Customer Retention

  • Up Sell

  • Cross Sell

  • M & A

BPMS

ROI

  • Expenses

    • IT

    • Business

    • Staffing


Service oriented enterprises

Productivity Gains

BPMS

X2 to > X10

ObjectOriented

Programming

X2 to X3

High Level

Structured

Programming

X5 to X10

Assembly


Bpm suites for the soe challenge

Management Goals

Management Goals

Sales

Sales

Service

Service

Operations

Operations

Compliance

Compliance

Partners

Partners

Systems

BPM Suites for the SOE Challenge…

Business Process Management Suite

Service Integration

Service

Operations

Compliance

Service

Operations

Compliance

Systems


Competitive advantages for all communities

Customers

Local

Community

Shareholders

Employees

Partners

Government

Competitive Advantages for all Communities

SOE


Conclusion

Conclusion

  • SOE can serve their communities through:

    • Directly Capturing requirements:

      • Executable processes and rules

    • Identify measurable KPIs: strategic methodology

    • Tying these KPIs to modeled and executing business processes and policies

    • Continuously monitoring and improving the implementation to meet the needs of the communities

  • … while leveraging the underlying IT SOA infrastructure


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