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Software architecture adjustments for a changing business

Software architecture adjustments for a changing business. Business is Changing. Observations. Business: Outsourcing Business Processes Outsourcing IT Integrating Internal and External Processes Focus on Core Competence and Compliance Mergers and Acquisition IT

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Software architecture adjustments for a changing business

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  1. Software architecture adjustments for a changing business

  2. Business is Changing

  3. Observations • Business: • Outsourcing Business Processes • Outsourcing IT • Integrating Internal and External Processes • Focus on Core Competence and Compliance • Mergers and Acquisition • IT • Architecture Innovation (SOA) • Consolidation of Applications • Focus on Integration and Flexibility • Offshore activities

  4. Pressure on IT

  5. The CIO ChallengePressure from various angles Provide 360° view of business Deliver new services, faster CEO Lines of Business Reduce IT budget Ensure Regulatory compliance Auditors CFO

  6. Requirements • Business Agility requires IT Flexibility • IT Flexibility requires Flexible infrastructure • Flexible infrastructure require SOA • Successfull SOA requires • Standards • Application Integration Platform • Data Integration Platform

  7. Integration and Innovation Projects Long Term Blueprint(SOA, EDA) Scalable and Flexible Platform Integration Competency Center (ICC) Architecture Technology Approach The 3 adjustments for Success

  8. The Evolution of Integration • Legacy Applications • Key applications functioned independently • Data and application logic lumped together on isolated systems • The mainframe era • Integration not a priority • ERP Applications • Core back office functionality packaged into customizable modules • Single-vendor providing tightly coupled applications • Integration restricted to a few applications (CRM with Financials, etc.) • Application and Data Integration • Multiple vendors providing different critical application components • Information assets distributed across heterogeneous systems • Application and Data Integration become TOP priority

  9. Service Provider In-House Data Integration for the Virtual Enterprise Sales Force Automation CompositeApps Legacy Migration Consolidation Consolidated View Payroll PLM SCM Receivables Strategic Value of Information Synchronization Master DataManagement Automation of Transactions & Operations Single View of Business CRM Payables HR Other ERP Query & Reporting, Dashboards Custom Data Warehouse Process Outsourcing: Increases Integration Complexity

  10. Silo based architectures of the past Biz Logic Biz Logic OE CRM HR Mainframe Fin DB DB DB DB

  11. Dependencies between systems grew Biz Logic Biz Logic OE CRM HR Mainframe Fin DB DB DB DB

  12. Resulting in the Accidental Architecture Biz Logic Biz Logic OE CRM HR Mainframe Fin DB DB DB DB

  13. Technology confusion • Vendors have delivered functionality in various forms and packages to meet these Integration needs over time: • ETL (Extract, Transform and Load) • MOM (Message Oriented Middleware) • EAI (Enterprise Application Integration • B2B (Business to Business) • Workflow • BPM (Business Process Management) • BAM (Business Activity Management) • EII (Enterprise Information Integration) • ESB (Enterprise Service Bus) What technology or combination of technologies is right for my project?

  14. Service-Oriented Architecture • An integrated software infrastructure and design approach to expose business relevant data and application services in a loosely coupled, standards based form. SOA - • Leverages web computing standards (XML, SOAP, etc.) • Promotes wrap and reuse of existing IT assets • Metadata-driven to maximize portability

  15. Two Types of Integration • Enterprises have two major type of IT assets they need to integrate • These are two different integration problems which require different technologies & approaches Business Logic Data Application & Process Integration Data Integration

  16. Increase Customer Cross-sell & Loyalty Integrate New Merger Outsource HR Reduce Lending Risk & Fraud Regulatory Compliance ConsolidateCustomer Systems Upgrade Sales Comp Systems Integrate with Hewitt BI ETL Tool Hand coding BI ETL Tool EAI EAI SQL Scripting SQL Scripting App vendor tool App vendor tool Custom code Data Integration FTP Custom code SQL Scripting Flat files Mainframe Databases Messages XML Unstructured Data Applications Complex integration environment increases costs and impedes flexibility Business Initiatives Upgrade Risk Mgmt System Migrate Legacy Finance App. Consolidate Risk Systems Integrate Customer Analytics Data IT Initiatives • Incomplete, inconsistent view of data • Costly, one-off development efforts • High maintenance & administration costs • No reuse of code or skill sets • Brittle infrastructure hard to change Requirements for Accessing, Integrating & Moving Data Enterprise Data

  17. “Companies must build a solid data services layer; Otherwise SOA benefits will NEVER be realized” “The vast majority of companies must have a data integration strategy to accommodate change.” “SOA’s success is contingent on a data integration strategy” The Importance of Data Integration in SOA AMR Research“Data Integration, Foundation for SOA”, September 2005 Gartner “Data Integration Is Key to Successful Service-Oriented Architecture Implementations”, October2005 • “SOA will fail if long-standing data quality, data redundancy and semantic inconsistency issues are not addressed.” • “Organizations must address data integration issues during their SOA implementations.” Nucleus Research“SOA: The Two Biggest Mistakes to Avoid”, November 2005 • “In utilizing service-oriented architectures (SOA) for integration projects, IT departments should seek to avoid two commonly made mistakes: giving insufficient attention to how data will flow over the underlying architecture, and insufficient use of metadata.”

  18. Service-Oriented Enterprise Integration Portal Business Processes (orchestration) Reusable Data Services (complex transformation, data quality check) Reusable Application Services (pub/sub channels, transaction monitor) Application Integration (Access, Reliable Messaging, Transactions) Data and Metadata Integration (Data Access, Profiling, Cleansing, Aggregation, Transformation) Mainframe Backend IT Assets Fin SAP Biz Logic DB DB DB

  19. Conclusion • Business forces IT to innovate • Outsourcing increases complexity • Adjustments in IT focus on SOA • Regulations will push IT even more

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