Connecting SOA to Business Outcomes

1. Connecting SOA to Business Outcomes Sandy Carter VP, SOA & WebSphere Marketing, Strategy, and Channels

2. Aligning Business and IT Drives Greater Agility BusinessArchitecture Business Processes SOA Foundation & Infrastructure Success requires the alignment of business & IT

3. Agility Leads to Greater Growth and Innovation AGILITY: ability to quickly and effectively respond to changes, opportunities and threats Innovation Growth Acquisitions Organic Agility

4. Agility Boosts Financial Performance 30% higher 29% higher 20% higher 8% higher Net Margin Return on Assets Revenue Growth Earnings Per Share Industry Average Agile Companies Source: MIT Sloan School of Management, 2007

5. Benchmark Agility with Key Agility Indicators 270 KAIs in the Benchmark Wizard

6. IBM Increased Agility through Service Orientation 63% of revenue came from non-US operations 18% growth in BRIC countries 53 acquisitions in software since 2002 8% yr/yr revenue growth

7. 6550 Clients What is… Service Managers: A Service A repeatable business task – e.g., check customer credit; open new account Business Managers: Architect: Service Orientation Service Oriented Architecture (SOA) An IT architectural stylethat supports service orientation A way of integrating your business as linked servicesand the outcomes that they bring

8. Gartner: "Don’t postpone SOA…; Reprioritize Your Road Map" • "…address lower-cost projects sooner" • "…[prioritize] projects that will turn an ROI faster" • "Choose SOA projects where reuse of established systems is prevalent" "… SOA enables businesses to brace themselves for any economic cycle, positioning them for success, not just survival." * Gartner: Cost Cutting Strategies for SOA; May 6 2008 Roy W. Schulte, Anthony Bradley, Yefim V. Natis ZapThink, SOA in any economic climate, 2008

9. The Smart SOA™ Approach: Based on 6550 Customers Business Extend End-to-End Adapt Dynamically Foundational Transform IT A set of guiding principles to extend business value of deployment

10. 61% Adapt Dynamically Extend End-to-End Foundational Transform 29% <8% <3% Adoption of SOA is Evolving Across the Continuum % of SOA Customers by Approach Large Enterprises Employee Size Medium Businesses Greater than 4,999 Small Between 1,000 and 4,999 Less than 999 Source: IBM 2008 Survey

11. Adoption of SOA Varies by Industry SOA Adoption by Industry Extend End-to-End Adapt Dynamically Foundational Transform Financial Services Industrial Public Communications Distribution

12. Process Focus Varies by Maturity and Industry Adapt Dynamically Extend End-to-End Foundational Transform Multi-Channel BankingPayments Ops Fraud Detection/ Notification Enterprise Risk Mgmt Customized OffersValue-Add Services Adapt Products Dynamically for Local Markets Banking Account Open Call CenterLoan Origination Insurance Policy Status Billing Inquiry Claims Status Multi-Line Quote Policy Administration Claims Lifecycle Agency Mgmt Enterprise Risk Mgmt Multi Line, Multi Channel Self-Service Adapt Products Dynamically for Local Markets

13. What Are The Costs of Inflexible Processes? In 2007, a Major U.S. Discount Airline facing inclement weather, but not severe storm … • Stranded customers on planes for 10+ hours … without food, water, and heat • Cancelled >25% of flights days after initial incident • 30M USD in customer refunds • 14% drop in stock price; 400M USD in shareholer value destroyed • CEO relieved of duty “We had a weakness in our system. We were overwhelmed.” David Neeleman, Former CEO JetBlue Airways

14. Boost Flexibility & Agility with BPM Enabled by SOA Human Interaction & Collaboration Business Process Modeling & Design Business ActivityMonitoring & Analysis ProcessExecution

15. BPM Enabled by SOA in Action Achieve greater flexibility by streamlining new and existing business processes • Streamlined processes for 15,000+ customers • 50% increased in customer satisfaction • Increased collaboration between suppliers and partners

16. IBM BPM Suite Starter Sets Accelerate Time-to-Value IBM BPM Suite Foundational Starter Sets Dynamic Business Processes Content-Aware Processes Extended Value Offerings Business Event Processing Asset repository for BPM Collaboration Tools Advanced Analytics Process Accelerators BPM Methodology  BPM Professional Services  BPM Mentoring

17. WebSphere Business Services Fabric Advanced BPM Capabilities for Agility When do you act? What do you do? Business Events Processing Business Policy WebSphere Business Events

18. Business Events Processing Demo

19. 46% YTY customer growth 440+ public customer references Iona 1% Virtria 2% Other 4% Sybase 1% 6550 Clients Sun / SeeBeyond 2% Progress Software 4% Microsoft 4% Software AG / webMethods 4% Tibco 7% 64% Oracle/BEA 7% Partner with a Market Leader SOA Leadership according to WinterGreen Research 76% in India! 2007 Total: $2.0B Source: WinterGreen Research, Inc.

20. SOA Helps in ANY Economic Climate Businesses Need: SOA Enables: Source: ZapThink, SOA in any economic climate, 2008

21. Today's Business Landscape is Undergoing Rapid and Transformative ChangeAre you prepared?

22. Thank you! More information: www.ibm.com/soa