Dr. Julius PETER SOA Sales Executive, CEMAAS SWG julius_peter@at.ibm

1. Aligning Business with IT: Component Based Modelling & Methodologies Dr. Julius PETER SOA Sales Executive, CEMAAS SWG julius_peter@at.ibm.com

2. Business View Process View IT View A New Approach is needed to extend and enhance existing capabilities and unleash more business value • Deploy on a flexible SOA infrastructure that enables rapid change and incremental deployment without IT systems "rip and replace" • Decompose business capabilities into reusable assets that can be flexibly combined into new products and services • Focus on making business processes dynamic, flexibility and unique rather than simply automating them

3. CBM SOMA SIMM IBM has techniques to help accelerate business innovation

4. Grappling with the essential questions “How can we focus on the pieces of our business that drivegrowth and differentiation?” Q. A. Deconstruct business into components, analyze processes, and distinguish between differentiatingand enabling capabilities.

5. Business Component The IBM Component Business Modeling (CBM) framework is an alternative to traditional views of a business - the building block of a component business model is a ‘business component’ A component is a business in microcosm. It has activities, resources, applications, infrastructure. It has a governance model. It provides goods and services (business services) Business Component Elements Business Services Business Purpose Each business component has business services which form the interfaces to other business components Activities Component Governance Resources Applications Each business component has differentiated capabilities Infrastructure Each business component defines and decides on the use of all resources needed to perform the defined activities Each business component has a governance structure within which it manages its activities

6. We use a Business Component Map as a tabular view of the business components in scope A Business Component is a part of an enterprise that has the potential to operate independently, in the extreme as a separate company, or as part of another company. Columns are Business Competencies, defined as large business areas with characteristic skills and capabilities, for example, product development or supply chain. An Accountability Level characterizes the scope and intent of activity and decision-making. The three levels used are Directing, Controlling and Executing. • Directing is about strategy, overall direction and policy. • Controlling is about monitoring, managing exceptions and tactical decision making • Executing is about doing the work Example component business model for the credit card industry

7. Product Management Customer Relationship Supply Chain & Distribution Business Administration Product Management Product Management Product Management Customer Relationship Customer Relationship Customer Relationship Supply Chain & Distribution Supply Chain & Distribution Supply Chain & Distribution Business Administration Business Administration Business Administration Manufacturing Manufacturing Manufacturing Manufacturing Supply Chain Strategy Supply Chain Strategy Supply Chain Strategy Supply Chain Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Customer Relationship Strategy Customer Relationship Strategy Customer Relationship Strategy Customer Relationship Strategy Manufacturing Strategy Manufacturing Strategy Manufacturing Strategy Manufacturing Strategy Category/Brand Strategy Category/Brand Strategy Category/Brand Strategy Category/Brand Strategy Corporate Planning Corporate Planning Corporate Planning Corporate Planning Supplier Relationship Management Supplier Relationship Management Supplier Relationship Management Supplier Relationship Management Strategy Strategy Strategy Strategy Alliance Management Alliance Management Alliance Management Alliance Management Supply Chain Planning Supply Chain Planning Supply Chain Planning Supply Chain Planning Category/Brand Planning Category/Brand Planning Category/Brand Planning Category/Brand Planning Customer Relationship Planning Customer Relationship Planning Customer Relationship Planning Customer Relationship Planning Line of Business Planning Line of Business Planning Line of Business Planning Line of Business Planning Production and Materials Planning Production and Materials Planning Production and Materials Planning Production and Materials Planning Business Performance Management Business Performance Management Business Performance Management Business Performance Management Brand P&L Management Brand P&L Management Brand P&L Management Brand P&L Management Assessing Customer Satisfaction Assessing Customer Satisfaction Assessing Customer Satisfaction Assessing Customer Satisfaction Distribution Oversight Distribution Oversight Distribution Oversight Distribution Oversight External Market Analysis External Market Analysis External Market Analysis External Market Analysis Manufacturing Oversight Manufacturing Oversight Manufacturing Oversight Manufacturing Oversight Matching Supply and Demand Matching Supply and Demand Matching Supply and Demand Matching Supply and Demand Customer Insights Customer Insights Customer Insights Customer Insights Inbound Logistics Inbound Logistics Inbound Logistics Inbound Logistics Outbound Logistics Outbound Logistics Outbound Logistics Outbound Logistics Tactics Tactics Tactics Tactics Organization and Process Design Organization and Process Design Organization and Process Design Organization and Process Design Marketing Development & Effectiveness Marketing Development & Effectiveness Marketing Development & Effectiveness Marketing Development & Effectiveness Account Management Account Management Account Management Account Management Supplier Control Supplier Control Supplier Control Supplier Control Legal and Regulatory Compliance Legal and Regulatory Compliance Legal and Regulatory Compliance Legal and Regulatory Compliance Product Ideation Product Ideation Product Ideation Product Ideation Make Products Make Products Make Products Make Products Treasury and Risk Management Treasury and Risk Management Treasury and Risk Management Treasury and Risk Management Concept/Product Testing Concept/Product Testing Concept/Product Testing Concept/Product Testing Value-Added Services Value-Added Services Value-Added Services Value-Added Services Distribution Center Operations Distribution Center Operations Distribution Center Operations Distribution Center Operations Accounting and GL Accounting and GL Accounting and GL Accounting and GL Assemble/Pkg. Products Assemble/Pkg. Products Assemble/Pkg. Products Assemble/Pkg. Products Product Development Product Development Product Development Product Development Customer Account Servicing Customer Account Servicing Customer Account Servicing Customer Account Servicing Indirect Procurement Indirect Procurement Indirect Procurement Indirect Procurement Execution Execution Execution Execution Product Management Product Management Product Management Product Management Plant Inventory Management Plant Inventory Management Plant Inventory Management Plant Inventory Management Retail Marketing Execution Retail Marketing Execution Retail Marketing Execution Retail Marketing Execution Transportation Resources Transportation Resources Transportation Resources Transportation Resources Facilities and Equipment Management Facilities and Equipment Management Facilities and Equipment Management Facilities and Equipment Management Marketing Execution Marketing Execution Marketing Execution Marketing Execution Seek external provider In-store Inventory Mgmt In-store Inventory Mgmt In-store Inventory Mgmt In-store Inventory Mgmt HR Administration HR Administration HR Administration HR Administration Manufacturing Procurement Manufacturing Procurement Manufacturing Procurement Manufacturing Procurement Strategic differentiation High capital area Consumer Service Consumer Service Consumer Service Consumer Service En route Inventory Management En route Inventory Management En route Inventory Management En route Inventory Management Consolidate High cost area Competitive parity IT Systems and Operations IT Systems and Operations IT Systems and Operations IT Systems and Operations Customer Directory Customer Directory Customer Directory Customer Directory Product Directory Product Directory Product Directory Product Directory Integrate and redesign High cost & capital area Basic No action Component Business Modeling (CBM) • Analytical technique that breaks business functions into a structured collection of components • “A Business on One Page” • Identifies services areas that are differentiating by applying objective evaluation criteria • Generates views (“heat maps”) that show where transformation opportunities lie • Develops business case for IT and business transformation opportunities * Example of a CBM map for a consumer products company

8. Grappling with the essential questions “How do I begin to understand the maturity level to support our business processes and goals?” Q. A. Examine existing business to Assess your current SOA adoption maturity level Identify the pain points for the scoped projects Define the As-Is environment for the scoped projects Define the To-Be environment for the scoped projects

9. The Service Integration Maturity Model (SIMM) helps define a roadmap for incremental IT transformation linked to business transformation Dynamically Re-Configurable Services Composite Services Virtualized Services Silo Integrated Componentized Services Function Oriented Function Oriented Service Oriented Service Oriented Service Oriented Service Oriented Function Oriented Application Specific Skills IT Transformation IT Governance Technology Adoption Organizational Transformation Cultural & behavioral Transformation Human Service Bus Business View Object Oriented Modeling Component Based Development Service Oriented Modeling Service Oriented Modeling Service Oriented Modeling Grammar Oriented Modeling Structured Analysis & Design Modules Objects Components Services Process Integration via Services Process Integration via Services Dynamic Application Assembly Methods Monolithic Architecture Layered Architecture Component Architecture Emerging SOA SOA Grid Enabled SOA Dynamically Re-Configurable Architecture Applications LOB wide standardized Data vocabularies Application specific data solution Data Subject Areas established Business Data can be shared outside the Silo. Enterprise wide standardized Data vocabularies Flexible Data vocabularies for expansion Data vocabularies are Standards based Architecture Platform Specific Platform Specific Platform Specific Platform Specific Platform Independent Technology Neutral Dynamic Sense & Respond Infrastructure Information Organization Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Service Integration Maturity Model - Matrix

10. Grappling with the essential questions “How do I architect and design a flexible application environment to support our business processes and goals?” Q. A. Examine existing business processes and their related IT assets, prioritize the services that contribute the greatest business value and design through a cost-effective architecture that enables them.

11. Services Oriented Modeling & Architecture (SOMA) End-to-end SOA Method for the identification, specification, realization and implementation of services • A systematic approach: • Top-down domain decomposition to building systems • Existing Asset Analysis (Bottom-up Analysis) • Goal-Service Modeling

12. IBM SOA Design Method – RUP/SOMA • IBM is moving toward a single IBM SOA method that will be delivered as a set of content in RUP derived from existing RUP/SOA and SOMA techniques • The delivery mechanism is Rational Method Composer • There will be additional internal proprietary extensions to that converged IBM SOA method for use by GBS Roadmaps to orient new users Process based upon SOMA Tasks/Products a merge of RUP and SOMA

13. Align business architecture and IT architecture • Break down your business into components • Decide what is strategically important, and what is just operations in the value chain domains • Analyze the different KPIs attached to these components • Prioritize and scope your transformation projects Business Architecture CBM • Assess your current SOA adoption maturity level • Identify the pain points for the scoped projects • Define the As-Is environment for the scoped projects • Define the To-Be environment for the scoped projects • Identify the Gaps and build the SOA Roadmap Assess & Plan SIMM • Define a Service Model • Identify your services based on your business components • Specify the services and components accordingly • Make SOA realization decisions based on architecturaldecisions Service Modeling SOMA • Implement a Service Model • Develop a service-oriented architecture to support the Componentized Business • Implement service based scoping policy for projects • Implement appropriate governance mechanism SOA Realization Business-Aligned IT Architecture