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Connecting Business and IT. Finally (?) deliver on lots of promises?. Today. 10 Years Later. Technology. Operating model. X-Engineering. Corporate Re-Engineering. TQM. Biz Applications. ERP, CRM, SCM. MRP, MRP II. Finance, HR.

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connecting business and it

Connecting Business and IT

Finally (?) deliver on lots of promises?

slide6

Operating model

X-Engineering

Corporate

Re-Engineering

TQM

slide7

Biz Applications

ERP, CRM, SCM

MRP, MRP II

Finance,

HR

destination connected systems service orientation appears to be agreeable to all
Destination: Connected Systems?Service-orientation appears to be agreeable to all

Biz Applications

Technology

Operating Model

connected systems creating a living blueprint of a system

Job

Merc.

Stage

Shuttle

Feed Store

SQL

DSS

Cache

FTP

HTTP

SERVERS

STORAGE

NETWORKING

Connected SystemsCreating a living blueprint of a system

Create a definition of a new or existing System

Operate the System based

on its definition

Resources

Required

Operations

Capabilities

Operational

Policies

Automatically allocate and configure resources using its definition

SDM Document

transparency visibility

System

Definition

Model

Transparency/Visibility

Applications

Application

Hosting

Logical Machines & Network Topology

Hardware

domain specific tools

InfrastructureDesigner

CustomDesigners

ClassDesigner

SOADesigner

Domain Specific Tools
  • Tailored visual designers for problem domains
  • Rich set of models
  • Tools and framework available today
types of models
Types Of Models

Business Capabilities

System Requirements

Architectural Features

Business Capabilities

Business Processes

Service Models

Solution Structure

Business Processes

Business Entities

models

BizTalk

Schedules & Rules

User InterfaceProcess

Logical Business Entities

Rules, Operations

Deployment Units

Models

Business

Capabilities

A Graph of

Interrelated

Viewpoints

Business Processes and Entities

Implementable Business Processes and Entities

Manual Processes

Services,

Messages, Applications, Endpoints

Logical Data Center

Host Software

DB

Definitions

XML, Projects,

Configs, Classes, Code

Physical Servers and Network Segments

conceptualize your business

Call

Center

Fulfillment

Private /

Public

Network

Legacy

systems

Securities

Backend

Middleware

Terminal

CERTIFICATE OF STOCK

500

Integration

Data-

mining

Private /

Public

Network

Telefon

POS

Kiosk

Conceptualize your business

Bank

Enterprise

Customer

Supplier

the capabilities of a credit granting process

Data

Entry

Data

Entry

ProductSelection

Collaterals Acquisition

Rating

First Vote

Collaterals Evaluation

Final Vote& Decision

GetSignature

CheckContract

Collaterals Registration

Payment

Product Config-uration

Entry inLand Register

ProductSelection

Collaterals Acquisition

Scoring

First Vote

Product Config-uration

Collaterals Evaluation

Final Vote& Decision

GetSignature

CheckContract

Entry inLandRegister

Payment

Scoring

ProductSelection

Data

Entry

Scoring

Vote

Decision

GetSignature

CheckContract

Payment

CollateralsEvaluation

ProductSelection

Decision

Check

Contract

Vote

DataEntry

Payment

Rating

GetSignature

Scoring

CollateralsAcquisition

CollateralsRegistration

ProductConfiguration

CollateralsEvaluation

ProductConfiguration

ProductSelection

The Capabilities Of A Credit Granting Process…

Corporate Credit

Building Credit

Consumer Credit

Disaggregation of the value chain

slide16

Capability View Of The Enterprise

Within the traditional bank, operations are captured in 5 areas

  • Develop Product / Service
  • Generate Demand
  • Fulfill Demand
  • Plan & Manage the Enterprise
  • Collaboration

Outside of the bank, external entities are shown

  • Customers and Suppliers/Partners
  • ICT and other Service Providers
  • Channel Partners
  • Regulatory Institutions

Customer Facing Channel Partners

BusinessPartners

Customers

Banking Business

BusinessPartners

1. Develop

Product /

Service

2. Generate

Demand

5. Collaboration

3. Fulfill

Demand

4. Plan &

Manage

Enterprise

ICT Providers

Regulatory Institutions

business capabilities
Business capabilities
  • Process describes “how” business is conducted, including the people, procedural steps, technology used, and so forth, for example:
    • Processes can be in-sourced or outsourced, e.g.
    • Manual and automated are also “how” decisions
  • Year-over-year, it is common for businesses to change some or all of “how” they do things, making process a relatively unstable view of business
    • This is a reason that the process flow diagrams so many companies have become so outdated so quickly
  • We believe that a view of business capabilities offers a significantly more stable view of business
  • A business capability – a particular ability or capacity that the business relies on for a specific purpose or outcome
    • What the business does – not how
      • Usually a simple verb / noun combination such as “pay employees” or “ship product”
    • Measured through clear Services Levels
      • Goals, metrics, ownership, escalation points, thresholds, etc.
    • Encapsulated and addressable

Capabilities

motion enables the analytical power of go in go up go out and only then with that context go down
Motion enables the analytical power of go-in, go-up, go-out and only then… with that context, go-down
partitioning and connecting banking industry example

Bank Business

Retail Business

1. Develop

Product /Service

1. Develop

Product /Service

2. Generate

Demand

2. Generate

Demand

5. Collaboration

5. Collaboration

3. FulfillDemand

3. FulfillDemand

4. Plan and

Manage

Enterprise

4. Plan and

Manage

Enterprise

Product Bank Business

1. Develop

Product /Service

2. Generate

Demand

5. Collaboration

3. FulfillDemand

4. Plan and

Manage

Enterprise

Transaction Bank Business

1. Develop

Product /Service

2. Generate

Demand

5. Collaboration

3. FulfillDemand

4. Plan and

Manage

Enterprise

Partitioning and ConnectingBanking Industry Example
capability view of the enterprise

Business Network

Market Facing Channel Partners

Enterprise

Develop Product/ Service

Generate Demand

Suppliers

Collaboration

Market/Customers

Plan & Manage Enterprise

Infrastructure/

Compliance

Fulfill Demand

Logistics Partners

Business Service Providers

Capability View Of The Enterprise

The enterprise is a

  • Structure which exposes all capabilities across the business network to leverage into an operating model
  • Means to componentize performance criteria at the most actionable level of configuration
  • Framework to leverage technology, information and other resources to decisively manage to predefined outcomes
building software to capabilities

Job

Merc.

Stage

Shuttle

Business Network

Market Facing Channel Partners

Feed Store

SQL

DSS

Enterprise

Cache

Develop Product/ Service

Generate Demand

Suppliers

FTP

HTTP

Market/Customers

Collaboration

Infrastructure/

Compliance

Plan & Manage Enterprise

Fulfill Demand

Business Service Providers

Logistics Partners

Building Software To Capabilities…
  • Business capabilities
  • Processes
  • Entities
  • Rules

Explicit Mapping

Applications

User interface

Servers and networks

Data centers

customers and soa
You can’t separate the things you do from the way you do them

Your processes are hard-coded into your systems

Human behaviors are hard-coded into your systems

The things you do are limited by who does them

If capability demand exceeds your supply, then what?

Customers And SOA
  • You can project “views” of what your business actually does
    • Deployed web services as a conceptual model of the business
  • You can combine what you do with the process that fits your business
    • Coupling capabilities with participants
service oriented architecture

Service

Policy

Schema and

Contract

Service-Oriented Architecture
  • Service-Orientation
    • Independent Services
      • Chunks of Code and Data
    • Interconnected via Messaging
  • Four Basic Tenets:
    • Boundaries Are Explicit
    • Services Are Autonomous
    • Services Share Schema and Contract
      • Not Implementation
    • Service Compatibility Is Based on Policy
services communicate with messages

Service-A

Service-B

Services Communicate with Messages
  • Services Communicate with Messages
    • Nothing Else
  • No Other Knowledge about Partner
    • May Be Heterogeneous
bounding trust via encapsulation

Service

  • Things I’ll Do for Outsiders
  • Deposit
  • Withdrawal
  • Transfer
  • Account Balance Check
Bounding Trust via Encapsulation
  • Services Only Do Limited Things for Their Partners
    • This Is How They Bound Their Trust
  • Encapsulation Is About Bounding Trust
    • Business Logic Ensures Only the Desired Operations Happen
    • No Changes to the Data Occur Except Through Locally Controlled Business Logic!
trust and transactions
Trust and Transactions
  • Some Propose Atomic Transactions Across Services
    • E.g. WS-Transactions
  • Requires Holding Locks
    • Lots of Trust in Timely Unlock
    • Doesn’t Sound Autonomous and Independent to me…
  • Debate Is the Definition of the Word Service
    • Requires Autonomy and Independence?
    • Allows Intimacy across Service Boundaries?
    • There Will Be Code Connected by 2-Phase Commit
      • Same Service or in Different Services?
  • Presume No Cross-Service Txs
    • Simply the Definition of the Word “Service”
slide28

© 2004 Microsoft Corporation. All rights reserved.

This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.