SOA Challenges in an ungoverned environment

• SOA: Challenges in an ungoverned environment • • Esteban Sabadotto • Senior Manager SI-Oracle, UK/I Integration Capability Lead • Copyright © 2008 Accenture. All rights reserved. Open Standards Forum 2008

How Far Are Telcos in Adopting SOA? The maturity model can be used to benchmark an organizations SOA capability and progress towards industrialization. Level 2 Level 1 A roadmap will help develop the SOA capability across your organization. The maturity model can be used for planning roadmap activities. Level 4 Level 3 Architected Deploy Plan & Organize Quick Wins Enterprise Services and Processes Organise and strategise Get buy-in and assess organisation readiness for SOA transformation Copyright © 2008 Accenture All Rights Reserved. Industrialized Emergence of projects based on SOA principles Services are composed together to complete a task or create business processes Emphasis on consolidation of strategic and business services Design and development are services & processes oriented SOA is industrialized Services are part of the fabric of business operations Cross enterprise processes. Predictive IT. Business Insight 2

Why is it Proving Difficult? Risks: • The business case and value proposition of SOA are not well defined resulting in a failure to achieve the business value for adopting SOA • The roadmap for SOA is not clearly defined and the long-term execution managed resulting in a failure to achieve the broader goals • The Service Identification process is not standardized and Architecture reviews are not performed resulting in a poorly defined target SOA • Service development practices are not standardized and policies are not enforced resulting in poorly implemented services Copyright © 2008 Accenture All Rights Reserved. 3

How Should Telcos Speed Up Their Adoption of SOA Define governance framework and identify key roles as a first priority (IT and Business) Define the strategic goal and roadmap to achieve the end goal Identify key quick wins that will bring out most of the benefits in a short period of time to gain buy-in Speak to sponsors in terms of benefits and ROI rather than how cool the technology and latest tools are Ensure benefits are clearly defined upfront and there is a tracking mechanism in place in order to measure benefits once projects are delivered Avoid tactical fixes whenever possible as they are likely to stay there for longer than anticipated and there will be a resistance to change them later on. Copyright © 2008 Accenture All Rights Reserved. 4

For more information Esteban Sabadotto Senior Manager SI – Oracle UK/I Integration Capability Lead Tel: Email: +44 20 7844 9891 esteban. p. sabadotto@accenture. com Copyright © 2008 Accenture All Rights Reserved. 5

Appendix Copyright © 2008 Accenture All Rights Reserved. 6

SOA – Common Challenges • SOA is an enabling platform for achieving a high performance end state that is compromised of process-centric, metrics-enabled composite business solutions. Business-Level Management and Visibility (Responding to the competitive landscape) World Class Processes and Process Control (Providing market differentiation) Business Services Layer (coarse and fine-grained services) Custom, Packaged and Legacy Systems (Preserving existing investments) Copyright © 2008 Accenture All Rights Reserved. SOA Foundation Level of sophistication (Establishing Business Solutions) Process Excellence Composite Applications • Challenges for Adoption: • Business do not understand the SOA paradigm • No strategic view of the architecture blueprint – architecture being driven by tactical requirements • Segregate Business Units – No view of benefits outside their area • No overall governance function – Only disparate IT teams managing delivery • Funding models make initial delivery of business value too difficult /risky (e. g. 90 cycles) 7

Potential Risks with Ungoverned SOA While there are various approaches to managing SOA adoption, there are some serious risks to consider if an active SOA governance approach is not enlisted. Risk Impact The business case and value proposition of SOA are not well defined resulting in a failure to achieve the business value for adopting SOA • Misalignment of Business and IT Objectives due to a lack of common goals being communicated • Opportunity Cost for not achieving the maximum ROI from SOA The roadmap for SOA is not clearly defined and the long-term execution managed resulting in a failure to achieve the broader goals • Loss of Momentum in making progress to achieve the long term goals of SOA, including potential project abandonment • Opportunity Cost for not achieving the maximum ROI from SOA • Deterioration in Architecture and a potential increase in cost due to a lack of long term management The Service Identification process is not standardized and Architecture reviews are not performed resulting in a poorly defined target SOA • Lack of Interoperability due to siloed business services • Lack of Reuse due to an proliferation of single-use services and a tightly coupled & inflexible architecture • Unnecessary Development Expenditure due to service rework and repair Service development practices are not standardized and policies are not enforced resulting in poorly implemented services • Lack of Reuse due to unpredictable service quality and services not conforming to Service Level Agreements • Potential Loss of Revenue due to a higher frequency of service outages • Higher Support Costs due to poor service quality and higher frequency of outages Copyright © 2008 Accenture All Rights Reserved. 8

Delivering SOA Adopting SOA does not only requires re-tooling of existing disciplines across the Business and IT, but also establishing an SOA Governance function. Business Process Acumen Strategy And Governance • Service-Oriented Architecture, in the long term, must be developed with a broad view of business capabilities if it is to be successful Service Oriented Architecture Enterprise Architecture • Service-Oriented Architecture requires collaboration with and between several existing enterprise capabilities Solution Delivery • Service-Oriented Architecture will live in harmony with other architectures already in place (Batch, Client/Server, etc) An enterprise scale delivery capability for SOA should include all disciplines. Copyright © 2008 Accenture All Rights Reserved. 9

SOA Adoption - Capability Framework An overall framework is required for SOA adoption and the development of an SOA capability. The level of impact will depend on the individual organization. While not all aspects need to be addressed at the onset, all areas are eventually required to be successful. Business Strategy Drives the need for a Service Oriented Architecture A capability is made up of people, process and technology SOA Capability SOA Governance SOA Strategy & Roadmap Enterprise Architecture Business Architecture Process Architecture Application Architecture Journey Mgmnt & Communication Capability Development These disciplines are required to deliver SOA. Business Process Acumen Capability Blueprint Process Optimization Process Modeling Solution Delivery Composite Integration Methodology & Delivery Tools Technology Architecture Information Architecture Service Life Cycle Mgmnt Custom Packaged Developer Support Operations SLA / OLA Copyright © 2008 Accenture All Rights Reserved. Technology Infrastructure • SOA Governance is a new discipline comprised of Business and IT leadership ensuring an SOA vision is defined and achieved. • The other existing disciplines will require some change to adopt SOA and ensure successful delivery. Monitoring / Reporting 10

SOA Governance Defined • SOA Governance is a management capability responsible for overall adoption of Service Oriented Architecture. This function ensures a strategy is established and executed in order to realize measurable benefit. At a high-level this capability is meant to: J a n F e b M a r A p r M a y J u n J u l y A u g S e p t O c t N o v D e c Project 1 Proje ct 1 a Proje ct 1 b q Manage the journey: setting a strategy, managing progress and ensuring value is realized Project 2 Proje ct 2 a SOA Program Management Proje ct 2 b Project 3 Proje ct 3 a Proje ct 3 b Roadmap Project 1 Project 2 … q Evolve the enterprise capabilities to adopt, build and support an SOA q Migrate the organization from being application-centric to service-centric q Establish and manage business & technology alignment Copyright © 2008 Accenture All Rights Reserved. Project n Target Architecture Current Architecture … Benefit Realized 11

The SOA Capability Maturity Model The maturity model can be used to benchmark an organizations SOA capability and progress towards industrialization. Level 4 Level 2 Level 1 Plan & Organize • A roadmap will help develop the SOA capability across your organization. • The maturity model can be used for planning roadmap activities. Organize and strategize The first step has to do with management (buyin) and business needs (get business people involved). Special attention will be put on planning and assessing of the organization to prepare for an SOA transformation and foundation enablement. Copyright © 2008 Accenture All Rights Reserved. Deploy Tactical implementations This phase, which can be iterative, will see the emergence of the first projects based on SOA principles. Start to make applications available as Web Services start to be composed together to complete a task or create business processes. Level 3 Architected Enterprise Services Bus and SOA Platform Emphasis on strategic and business services. Focus on the consolidation of the process and services architecture in creating an enterprise services bus. Design and development are services oriented and process oriented leveraging a set of SOA tools. Industrialized SOA is industrialized Services are part of the fabric of business operations. Cross enterprise processes. Federation. Virtual enterprise becomes a reality. Utility and services infrastructure. Predictive IT. Business Insight. Near real time and process oriented. 12

Strategy & Roadmap Identifying the business drivers and assessing the organizational readiness will help determine the appropriate strategy and ultimately the most effective roadmap. Govern SOA Journey Identify Drivers (Business Value) Define SOA Strategy & Roadmap Assess Enterprise Readiness (Arch / Org) Execute SOA Roadmap Strategy – Articulates the business objectives and capability development needs for adopting SOA and the resultant value to be achieved. Roadmap – Defines how the strategy should be executed over time to be successful. Copyright © 2008 Accenture All Rights Reserved. 13

SOA Business Case • SOA adoption should be executed in the context of a business case that can demonstrate measurable value with an acceptable return on investment. High Level Business Case Development Process Target Initiatives / Business Priorities High Level Fit Assessment (Identified Benefits) Business Case Development Potential SOA Benefits & Costs High Level Capability & Infrastructure Needs Assessment (Identified Costs) ROI Model Development Business Case: • Describes overall scope and target value • Articulates both quantitative and qualitative value levers • Summarizes costs and benefits (leveraging ROI Model) Copyright © 2008 Accenture All Rights Reserved. ROI Model: • Focuses on quantitative value levers (benefits) • Estimates capability and infrastructure costs • Provides the detail to support the business case • Calculates Payback Period and Net Present Value 14