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Realizing a healthy SOA system to deliver business value quickly

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  1. Marie Wieck Vice President, IBM Middleware and SOA Services IBM Global Technology Services Realizing a healthy SOA system to deliver business value quickly


  3. The CIO Implications of the CEO Study… Role of CIO as Change Leader Success in a global economy requires diversification and integration Mature versus emerging markets Existing versus new clients Organizations are recognizing the need to manage differently and invest in new techniques for communications and collaboration Aging workforce, availability of skilled resources Explosion of mobile employees Increased use of global resourcing Regulatory compliance requirements Market demand for corporate social responsibility is forcing a hard look at ‘green’ IT Global energy crisis Exponential growth in data volume, network sprawl and mobile devices Aging data centers ….the compounding effect is forcing change 3 Global CEO Study 2008 | April 2008

  4. SOA is a Core Enabler of the Enterprise of the Future Core Traits How SOA Can Help? 1. Hungry for change 2. Innovative beyond customer imagination 3.Globally integrated 4. Disruptive by nature 5. Genuine, not just generous Source: IBM Global CEO Study 2008

  5. HUNGRY FOR CHANGE INNOVATIVE BEYOND CUSTOMER IMAGINATION GLOBALLYINTEGRATED DISRUPTIVE BY NATURE GENUINE, NOT JUST GENEROUS Three common business goals and related SOA benefits Providing new services to customers and/or partners • Benefit: increased revenue from new channels and services Attaining a single view of the customer • Benefit: • Higher customer satisfaction • Higher revenue through better cross-sell/up-sell activities and customer loyalty/value/buying habits analysis Integrating and automating processes • Benefit: • Faster process cycle times • Alleviation of manual intervention and its associated errors • Lower costs for maintaining redundant systems supporting redundant processes • Faster time to market with newly acquired services

  6. Extend End-to-End Adapt Dynamically Foundational Transform Smart SOATM leverages IBM’s client experiences Driving the transformation of SOA Services IBM Academy of Technology deep dive analysis of 100 case studies selected from over 250 submissions: • 750 Lessons Learned • 650 Best Practices Valuable regardless of Where You Are in the SOA Continuum Experience based on 6550 customers across Smart SOA* *# of Customers using our SOA offerings SOA Best PracticesWhite Paper Now Available

  7. Follow Proven Best Practices Develop an architecture with a vision for the future Linking business and IT from the beginning Maintain end-to-end operational visibility Built on skills within culture and governance Scalability and process integrity are key

  8. Aberdeen Group Study: Organizations not adopting SOA - Can’t justify the investment or don’t have the skills Source: How SOA Is Changing IT – What CIOs Should Know Aberdeen Group

  9. IBM can help build a business case to establish and measure the ROI and value gained A step-by-step approach that is: • Demonstrable • Quantitative • Focused on Metrics • Flexible

  10. How to build a case for improvement? • Determine the area for greatest impact • Benchmark against others in your region or industry • Align to business initiatives • Determine Savings others have seen • Determine your state of maturity • Determine the savings metrics for your organization • Risk Adjusted Return on Investment (RA ROI) • Return on Investment (ROI) • Net Present Value (NPV) savings • Internal Rate of Return (IRR) • Payback period • Create your own business case based on your data

  11. IBM can help you establish target KPI benchmarks for the project with the IBM Benchmark Wizard • Based on real client experiences • Allows for industry specific views • Provides real average results and target benchmarks • Covers multiple project domains • Cost, time, efficiency, quality and agility metrics

  12. SOA deployments are delivering measurable returnsCompanies globally are realizing . . . An electronics companyreduces IT Costs by 7% by deploying a flexible SOA infrastructure • Insurance company reduces • application integration cost • by leveraging SOA integration University increase collaboration, responsiveness and student moral from Portal and SOA integration • Automotive company expect • 20% cost reduction of IT Operations during • next 5 years due to new SOA Infrastructure • A chemical and petroleum company • 5 percent increase in oil and gas production • 30 percent reduction in costs • Municipal government improves citizen • services via SOA integration of 27 • departments’ application platforms • Retailer of home improvement • products • Has 286% ROI on SOA project • A major Bank estimates avoidance of US$1 • billion in IT costs due to SOA approach

  13. MOST IMPORTANTLY - BSNL GIVES BACK TO THE COMMUNITY At affordable price high speed connectivity to the most rural parts of the country Provides opportunity to consumers to collaborate and learn Methods to deliver remote education over secure VPN Leveraging SOA to deploy multi-play solutions Connect 10M customers in 910 cities and extend reach to rural areas • Extend multiple services across new, connected broadband network • single touch activation capability from time of ordering to activation of subscriber services : ñ customer satisfaction ò call center load • Scalable network to handle 50% growth • Leveraged IBM SOA Integration services

  14. Infrastructure Business Services Process Services Information Services Interaction Services Enterprise Service Bus ServiceManagement DevelopmentServices Partner Services Business App Services Access Services Infrastructure Services Design Projects with the SOA Reference Architecture

  15. Applications and Services Healthchecks for SOA Infrastructure Healthcheck for SOA Establish and Maintain your SOA Health ServiceManagement FlexibleInfrastructure Middleware • Workshops • Assessments • Specialized Diagnostics Service Use and Governance Application Reuse Infrastructure Architecture Healthcheck for SOA Security

  16. SOA architecture decision acceleratorFaster time to value, less risk through proven recommendations • Repository of Architectural Decisions • Decision Tree based • Navigation/search by role, project phase, scope, etc. • Decision identification and making based on prefilled alternatives • Patented web 2.0 approach • Governance on accepted architecture decisions • IBM Global Services architecture decision accelerator for SOA • 100 practitioners involved • Over 320 decisions captured • Architectural Decision Knowledge Wiki for Clients • Web 2.0 tool & model for capturing decision available on alphaWorks with 20 sample decisions: • Can address any IT domain including SOA

  17. Process Integrity for the Stresses of Volume and Time • WebSphere Virtual Enterprise • WebSphere eXtreme Scale • SOA Integration Services for Process Integrity White Paper: “Realizing business value from an integrated service-oriented architecture system in a multivendor world

  18. IBM Global Technology Services announces:IBM SOA Integration Services for Process Integrity • IBM SOA Integration Services - • Connectivity and Reuse Create a robust, scalable runtime SOA infrastructure that can effectively enable and support SOA applications and Web services • Portal Infrastructure Services Design and implementation services to engineer an integrated, flexible and reusable portal infrastructure to support Web, SOA, and Java applications • Web Application Server Engineer an integrated, flexible and reusable application infrastructure that supports Web, Java or SOA applications • Web Optimization and Virtualization Optimize and virtualize a client’s IBM WebSphere Application Server and non-IBM application server

  19. Process Integrity In Action: Order Management Services from Customer Management, Provisioning, & Billing Systems Major European Telecom Company 14,000 Service-Calls/Min 100,000 completed orders / Day Through WebSphere Process Server

  20. The New Enterprise Data Center – built on an SOA infrastructure New economics Rapid service delivery Aligned with business goals

  21. IT energy crisis has data centers at a tipping point IT energy use doubling every 9 – 24 months By 2011, clients will spend $1 on power & cooling for every $1 on hardware 100 units of energy production 3 units for productive IT IT accounts for 2% of anthropogenic CO2 emissions

  22. Stages of Adoption Highly responsive and business goal driven Rapid deployment of new infrastructure and services Drives IT efficiency

  23. This transformation spans across people, process, information . . . and technology • Skills shift from operations (break / fix) to IT Business Analysts • Break down silos and organize around IT service delivery • Paradigm shift toward shared environment • Standardization • Disciplined • Repeatable and documented processes • Change and configuration management • Process automation • Leverage information for business optimization • Deliver trusted information real time and in context • Reduce risk and improve visibility into business operations • Open standards • Open management across server, storage, and networking • Open networking standards • Role of systems & networking in recentralization • Automation

  24. Decouple application logic from infrastructure Relieve constraints Business compliance Simplify & save money Deliver quality service Virtualization / Consolidate Business Resiliency / Security Service Management Flexible Infrastructurefor SOA Green Our experience points out 5 key “focus areas” Focus Area / Pain Points Priority: Getting Started: • Security Assessment • Resiliency Assessment & Planning • Service Mgmt Strategy & Planning • Business of IT Exec. Dashboard • Infrastructure Health Check for SOA • Infrastructure Readiness Assessment for SOA • IT Optimization Strategy & Planning • Virt./ Consolidation Assessments • Data Center Energy Efficiency Assessment • Data Center Rationalization Services

  25. IBM’s own data center transformation 1997Today IBM Data Center Evolution • Dramatic reduction in operational costs thru consolidation, virtualization, optimization CIO’s 128 1 Host data centers 155 7 Web hosting centers 80 5 Networks 31 1 Applications 15,000 4,700 Project Big Green • 2X capacity, no increase in consumption or impact • $1 saved on energy $6-$8 operational savings The New Enterprise Data Center • Increased quality of service delivery • ROI of less than 2 years • A service oriented approach to data center design

  26. Results customers have realized * • Provision new services in minutes • Triple asset utilization • System outages down 58% • Reduce floor space by 80% • Reduce power usage by 40% • Up to 60% heat reduction

  27. IBM Service Management for SOA Control Automation Visibility Monitor SOA Services, Events and Dependencies Provide Secure and Compliant Quality SOA Service Delivery Support Dynamic Runtimes and Service Lifecycles

  28. Strategize and plan Design Implement Run Service management strategy and planning • Service management design Service management implementation services Managed services • IT Asset Management • Help Desk • Self-enablement portal Service management implementation –accelerators for service and asset management Business of IT executive workshop Business of IT dashboard IBM’s Service Management CapabilitiesCombined expertise in service management and SOA • Strategy and planning creates an approach that’s aligned with business objectives • Design and implementation is based on a proven approach and framework • Proven reference architectures and leading practices accelerate the design process • Driving results (on average) • 58% reduction in System Failures • Downtime reduction of 80%

  29. Clients describe the key benefits they derive from leveraging IBM implementation services • Quicker Time to Benefit • Labor Savings • Quality Improvement • Process Savings • Performance Enhancement Labor Savings 33% Quality Benefits 39% Productivity Improvements 28%

  30. Major airlines reduces IT outages to improve operationsCombined expertise in service management and SOA “Thanks to this new information, never before available, we were able to dramatically demonstrate the importance of improved monitoring and management of the airline’s IT systems to the business side of the enterprise.” • Dramatically improved overall quality of service - reducing system failures 58 percent, IT interruptions 39 percent, and downtime 80 percent • Improved overall quality of service by reducing outage-related operational delays • Provided JAL management with greater understanding of how IT affects its business through unprecedented visibility into the current state of its IT systems Masayuki Kurosawa, Vice President, IT Service and Planning

  31. Companies in every industry are exploiting advanced technology to gain competitive advantage Infrastructure and information complexity are driving a change to Service Oriented Architecture and leveraging Agility to drive Innovation for the business Summary IBM has the experience and knowledge to help you realize more quickly the full value of your SOA deployments

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

  33. Thank you