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IT Unit of the future The 7 th Session - When Does SOA Make $ ense ?

IT Unit of the future The 7 th Session - When Does SOA Make $ ense ?. March 15, 2012 Siamak Amjadi . Agenda for the third class. When does SOA make sense . . . . Why . . . How . . . . Locate SOA in the business architecture Business products, processes & Services Incentives for SOA

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IT Unit of the future The 7 th Session - When Does SOA Make $ ense ?

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  1. IT Unit of the future The 7th Session - When Does SOA Make $ense?

    March 15, 2012 Siamak Amjadi
  2. Agenda for the third class When does SOA make sense . . . Why . . . How . . . Locate SOA in the business architecture Business products, processes & Services Incentives for SOA Business Service or IT Service SOA Building Blocks What is SOA. Does it make Sense? Always? Improving business processes continue to be major areas for investment. The world is dynamic . We need the ability to adapt … fast low-cost. We cannot outshine and outrival in everything. We must co-operate. SOA Blueprint 2.1 (SOA2.1) IT Unit of the future Group Excercizes Group Presentations Why is SOA relevant What is SOA … what is a Service What does it require to operate SOA What is a SOA Center of Excellence Exam . . . Articles What . . . What else . . .
  3. The context for SOA Business Architecture Remember?
  4. External Demands Strategic Direction The Market Promise Customer Value Market Promise Key Characteristics Feelings Emotions Benefits Q4 Supply Supply Supply Offerings Offerings Offerings Value Proposition Value Proposition Value Proposition Demand Demand Demand Q3 Q1 BC Q2 Cost Cost Cost Income Income Income Profit Profit Profit Profit Profit Profit Plan Do Act Check Network Skills &Competencies Goals &Metrics BusinessPlanning Performancemanagement Organisation Business Architecture spans the whole business Business Strategy Business Models Business Processes Management Organisation
  5. SOA and the Business The Business Model Remember?
  6. Supply & Capabilities Offering Demand & Opportunities Value Network Core Processes Value Proposition Customer Relations Customer Segments Core Resources Distribution channels Cost Drivers Profit Income Streams
  7. According to CIO surveys, improving business processes continue to be major areas for investment. SOA and BPM are key enablers for these. In today's economy, how do you justify ongoing SOA investments and ensure SOA success? Centers of Excellence (CoE) for SOA and BPM are cost-effective ways of disseminating methods, techniques, best practices, and educating the wider IT community. CoEs also form a key part of SOA Governance approach. In this session we will outline best practices and Nordea's experience in justifying and running a CoE, and the benefits that have been derived across Nordea. A key focus area for the session will the role of a CoE in driving SOA education. According to CIO surveys, improving business processes continue to be major areas for investment. SOA and BPM are key enablers for these. In today's economy, how do you justify ongoing SOA investments and ensure SOA success? Centers of Excellence (CoE) for SOA and BPM are cost-effective ways of disseminating methods, techniques, best practices, and educating the wider IT community. CoEs also form a key part of SOA Governance approach. In this session we will outline best practices and Nordea's experience in justifying and running a CoE, and the benefits that have been derived across Nordea. A key focus area for the session will the role of a CoE in driving SOA education.
  8. Why SOA, Why BPM For many reasons. Different reasons; depending on the what your Business needs to achieve or avoid: Gain efficiency and excel in business operations Evolution rather then revolution The world is dynamic and ever changing. We need the ability to adapt. Fast and with a minimum of cost – without creating obstacle for the future changes. The competition requires that we excel in our operations. We cannot outshine and outrival in everything. We must co-operate with others and prepare for these kind of cross business co-operations.
  9. The Value Proposition through the Value Chain Pre- Sales Front Office Production Blah Blah Back Office Business Operation 1 Business Operation 2 Business Operation 3 Business Operation … Business Operation n Product Product & Services Lifecycle Product Business services provided by Product operational units in the value chain
  10. Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Business Service Product Lifecycle Business Service Business Service Business services provided by Business Service Business Service various operational units Do we excel? Operational Unit Operational Unit Operational Unit Operational Unit Operational Unit Business Operation 1 Business Operation 2 Business Operation 3 Business Operation … Business Operation n Product Product Product Outsourcing Opportunities
  11. Incentives for SOA Achieving Cross Channel Integration The same process across channels Reuse the same services X-Channel Reuse of Data and host transactions Cross Channel Integration Enabling Business Flexibility Enhance process(es) swiftly Separation of concern, eg., IT vs. Business Reuse of Services and Cost Savings Enabling Business Flexibility And Change Reuse of Services Cost Savings Shorten Time to Marked
  12. When asked what single eventwas most helpful in developing the theory of relativity . . . Albert Einstein is reported to have answered: So what is the problem we want to solve? . . . not the solution “Figuring out how to think about the problem.”
  13. What is a (financial) product? Bank Customer says … Loan, Account, Card, E-bank, etc. Branch office employee My service … the way I interact with the customer IT Developer The Loan System, the Account System, etc Enterprise Architect A mathematical model £ € $ f(x, y, z) = (a, b, c)
  14. SOA and the Business Business Processes versus Products
  15. Running one business process Total Operation Cost Total Operation Cost IT Cost IT Cost Operational Cost … and business processes Total Operation Cost 5 5 30 30 45 45 50 50 IT Cost
  16. What does this mean?
  17. The objectives of the 1st phase of Transformation Branches Call Centres E-channels The Beauty Common Efficient Processes Processes . . . Something in between . . . The Beast Different Back-end Systems Products
  18. Does SOA do Magic? Branches Call Centres E-channels The Beauty Common Efficient Processes . . . Something in between . . . The Beast Different Back-end Systems
  19. SOA from on Conceptual Level Integration Capability Others … security, audit, surveillance, etc … Front-End Talking User Interface FE Application Now we are Business… Business Processes Process Choreography Sentence Common Services Atomic / Composite Word Legacy Applications Alphabet Package Application Custom Application
  20. An example!
  21. Processes … flexibility PoC Loan Application PoC Loan Process No Identify customer Identify Product Make a Loan Application Check Credit OK? Approve Loan Manage Funds Start End Yes Common Services getCustomerDetails getLoanProductLists getLoanProductDetails saveLoanApplication creditCheck getLoanApplication approveLoanDecision printLoanDocuments getFundAccountList manageFunds searchCustomer Service Components Legacy Components
  22. Make it operational! $OA Center of €xcellence
  23. High Level Introduction to SOA Why are we going for SOA in Nordea Business and Technology Context for SOA in Nordea Reference Architecture What are we going to do Architectural details … layer by layer Cookbooks and Guidelines How-to do in each layer Design guidelines Web-Based (Wiki) How-To instructions Reference Applications Two Reference Applications to demonstrate how instructions are materialised. SOA Overview Reference Architecture Reference Applications Design Guidelines and Cookbooks The Blueprint of SOA in Nordea Gover- nance Opreational Processes Tools and Templates
  24. Govern the lifecycle of a service Contribute to and support Change projects Spread know-how on SOA SOA Centre of Excellence SOA Academy: This unit would spread the knowledge of SOA in Nordea. It identifies the Roles and the Skills, which Nordea needs to run SOA. The Academy would arrange courses and partner with the vendor on this topic. SOA Academy SOA Support Centre SOA Design, Governance & Policy Body SOA Support Centre (SC): This unit supports the Projects in their initial and critical phases. The members bring back valuable learning points to the CoE and help updating the architecture. They play an active role in SOA Academy. SOA Governance: This unit would quality assure and approve/disapprove the SOA design in various front-end programmes. Furthermore, it owns and is responsible for maintaining the SOA documents and guidelines, due to best practice, learning points form projects and emerging technologies. SOA Centre of Excellence
  25. SOA Support Center. Support as a part of Governance
  26. CoE will Allocate one Lead Architect to each Project. Up to 80% allocations Option of allocating several resources depending on the context Providing documentation on architecture and guidelines Providing tools and features Developing the Enterprise Architecture for the projects Add hoc problem solving Support in Executing the Projects Project Performance Project Life Time
  27. Architecture Governance There are Two major approaches for architects to involve in governance processes: The Collaborative model that applies proactive guidance via architect consulting and The Review model that creates an architecture review board at the (NIIDS) project gates in the development and implementation process. EA groups should ensure that they are involved with governance at multiple levels (as described in previous slides) The Collaborative approach is much more value adding process to the business. (See the SWOTs on the following slides.) Hope is good … but it is no Strategy The key to EA efficiency is governance. The key to governance is the right level of intervention in IT projects.
  28. Collaborative Governance Approach Collaborative Governance Approach Strengths Weaknesses Collaboration eliminates the “us and them” symptom. Involvement in early phases of a change reduces risks, redo-s and leads to more intelligent designs EA gains influence and leads Nordea towards the business targets proactively Reduces the need of review and bottlenecks atthe project gates. Streamlining use of technology. Challenges in sponsorship of the architects May require a LOB for the architects Enterprise Architects learn more about thebusiness (due to early involvement in thechange planning process). Achieve technical consistency Limit architectural and technical risk. Projects may attempt (mis)use the architects as ordinary project resources. Opportunities Risks
  29. Review Governance Approach Review Governance Approach Strengths Weaknesses Projects get reviewed their design prior to the construction phase. No immediate need for sponsorship as a organisational line. EA cannot act proactively Potential design problems are identified after the finalisation of the design process. Redo of design affects the time plan of the projects. Could lead to “Us and Them” atmosphere. EA would not get the opportunity to evangelisethe strategies during the design phase. Easy to invoice the projects. Streamlining use of technology. Involvement in early phases of a change reduces risks, redo-s and leads to more intelligent designs Could lead to “Us and Them” crisis. Opportunities Risks
  30. SOA in Operation And the Governance Go to funding
  31. Business Need Occurs Process Description & Modelling Information and Data Modelling Sevice & Component Modelling Back-end Design S e r v i c e D e v F r o n t- E n d Execution steps through the Governance Model From when a Business Need occurs till The Solution is deployed Execution Steps through the Governance Model Hall of the Governance fame . . . Deploy
  32. Process Information Service
  33. The Management Team (and Line Organisations) Senior Management Communication Planning & BC Management Business Process Governance & Support IT-Architecture Governance & Support Methodology Coherence CIO Co-ordination & Release mgmt. Vendor/Partner Co-ordination Step 4: Back-End Design Step 3: Service Modelling Back-end Programmes Foundation Programmes Front-end Programmes Step 2: Information Modelling Internet & Mobile client solutions Step 1: Process Modelling New Back-end Modules Infrastructure What are basic steps? Corp Netbank Estab. Process Impact Estab. Process Context Back-end Encapsulation Master Data Design Future State Process Test the Process Private Netbank Document Mgmt Branch, CC & BO Client solutions Which roles to engage? Process Owner N-CMS Data Modeller SOA CoE Line of Business SOA Architect PSD + Teller How is the process governed? Business Intelligence 10 M€ Responsible Consulted Accountable Inform MSA Support Control Templates, artefacts and tools? Credit Process Context Report Process Score card Front-End ”infrastructure”/Int. Layer Process Gap Analysis Common Services Execution organisation The Execution Organisation (Including Programmes & Projects)
  34. Step 3: Service Modelling Step 1: Process Modelling What are basic steps? Service Identification Requirements Gathering Estab. Process Impact Estab. Process Context Executable Process Analysis Project Continuation Sign-off Design Future State Process Test the Process Process Analyst Which roles to engage? Software Architect Business Analyst BPM Designer Process Owner Process Modeller Data Modeller SOA CoE Line of Business SOA Architect Responsible Consulted How is the process governed? Responsible Consulted Support Inform Accountable Inform Accountable Support Templates, artefacts and tools? Use Case Service Portfolio Executable Process Model Process Context Report Process Score card Process Gap Analysis Processes … Steps … Roles … Skills … Deliveries S k i l l s / R o l e s Activities Tasks Deliverables Activity … and the involved Roles/Mandates Methodology Coherence Step 4: Back-End Design Step 3: Service Modelling Step 2: Information Modelling Service Identification Requirements Gathering Executable Process Analysis Project Continuation Sign-off Process Analyst Software Architect Business Analyst BPM Designer Process Modeller Responsible Consulted Support Inform Accountable Use Case Service Portfolio Executable Process Model
  35. An Operational ViewTrack – Activity – Role – Responsibility Matrix
  36. How to put SOA on the Agenda of the Business?
  37. Hook your best architects into large intiatives and transformations SOA as a change enabler. Transformation Initiatives Projects Projects Initiatives Projects Projects Projects Small Scale Large Scale Characteristics: Discrete Localized Stable Tactical Short Term Characteristics: Breakthrough Enterprise Destabilizing Strategic Medium Term Characteristics: Continuous Ubiquitous Routine Visionary Longer Term They will be making decisions with little understanding of long- term dependencies or implications. Decisions are based on mid-term horizons and implications. Tend to reuse existing assets & introduce a few new. Long-term decisions, competitive advantages, innovative, build bridges and pave the way for the rest of Nordea.
  38. When does SOA make sense An overview of the SOA Building Blocks
  39. When does SOA make sense Business Repository Business Services Service Modelling Architecture Blueprint SOA Tools and Technologies Architecture Academy & Support Reference Applications Service & Process Development Quality of Services Packaged Infrastructure SOA System Management Environments & Roll-out Architecture Skills
  40. When does SOA make sense SOA Governance Model is not one model
  41. Project Justifications and Goals Enterprise Designs Trans- formation Projects Road maps Capabilities Interdependencies Resources Implementation Project priority & scope Roadmaps for business units Other initiatives . Ensure Consistency. Provide insights . Design Standards Design Elements Project Designs Project Linkages Perspectives in SOA Governance Business Strategy and Planning Vision Culture Values Opportunities Strategies Goals Options Priorities Directions Guidelines Align project execution with Nordea overall Business Goals. Design and Feedback Loop to Nordea Enterprise Architecture Collaboration, Support, Education, Review Where the rubber hits the ground! Innovation and value guiding principles Enabling architectural and technical capability Portfolio Management and Alignment Architecture & SOA Design Link Enterprise Architecture & Business Plans to IT actions Business Project Selection & execution
  42. Story …. Marriage between Business and IT Innovative Thinking Strategic Planning Execution Know Anticipate Business Needs Understand Technology Impact Know what to do Think, Rethink, Decide, Anchor, Communicate Organise to do it People, Skills, Ownership, Anchor Responsibilities, Roles Lead the Execution Processes, Decision Path, Execute, Monitor, Re-evaluate Deliver to the life Deploy, Anchor, Implement, Run, Evaluate the Vision and the Goals Set Business Goals Run Project 1 Organise Business Design Business Process Set Common Principals Find Sponsor- ship Deliver to the Business Vision Organise And start Programmes Set Technology Goals Organise IT Design Architecture Run Project n Governance Governance Governance
  43. Facing the Business Facing the Technology Match up Business Domains with (Business) Services domains. Pro-actively Change and Comfirmation Management Service Release Management Pro-actively discover & document the capabilities in the services. Aling to SOA Framework Releases Maintain and update Service repository. Align the Service Repository with Nordea EA Visions. ESB Config. & Support BPM Config. & Support Review Service Specification before they are developed and when they are improved. ALRR Config. & Support Match up Business Domains with (Business) Services domains. Pro-actively Ensure proper and managed releases of improved services Service Release Management Service Domain Management Service Mgmt Technical Support and Service Management Service Portfolio Management Service Component Maintenance & Improvement Improvement and maintenance of the services is the primary task of the Service Management. Delivering Business Capability Delivering Technical Capability
  44. Some pre-conditions Some post-conditions Some agreements Some contract f(x, y, z) = (a, b, c) This service does blah blah blah blah blah blah blah blah blah blah blah blah blah blah Signature Input: x, y, z Output:a, b, c, Error Code A Service f(x, y, z) = (a, b, c) Contract Service Interface Implementations a = x + y b= y – z c = (x + y) * z a = z-+ y b= y / z c = (42 + x) * z
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