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The Open Group SOA Tutorials 1 – The Impact of SOA on Business 2 The Open Group SOA Tutorials 1 – The Impact of SOA on Business 2 – SOA Maturity Assessment using OSIMM 3 – SOA Governance 4 – Architecting SOA 5 – Developing an SOA with TOGAF 6 – Implementing SOA 1 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

The Impact of SOA on Business Created by Chris Greenslade - CLARS 2 Copyright The Impact of SOA on Business Created by Chris Greenslade - CLARS 2 Copyright © 2009 – 2012 The Open Group

Copyright (c) 2009 -2012 The Open Group. All rights reserved. This material ( Copyright (c) 2009 -2012 The Open Group. All rights reserved. This material ("Material") may not be used, copied, distributed, modified, or shown, except under license from The Open Group member organizations are hereby granted a non-exclusive license to use, copy, distribute and show the unmodified material for any purpose, for so long as they are current, paid-up members of The Open Group. Others may use, copy, distribute and show the unmodified material free of charge for non-commercial use. That will usually mean using it inside the organization, and not for commercial exploitation. To use the material for commercial purposes, an organization must apply to The Open Group for a Commercial License. Any modification to the original Material, or any document that contains any portion of the Material shall constitute a derivative work. Anyone may create such derivative works and shall retain all right, title and interest in the changes or additions it makes to the Material, but nothing herein shall be deemed to transfer any right, title or interest in the Material. Furthermore, any derivative work shall always fully acknowledge the right, title and interest of The Open Group in the original Material (together with any contributor acknowledgements), and shall not claim or imply that any derivative work is the official Material. For the avoidance of doubt, creating a derivative work for commercial use shall constitute commercial use of the Material. 3 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

What You Will Learn q q 4 What SOA is and is not Some What You Will Learn q q 4 What SOA is and is not Some basic principles of SOA The current status of SOA standards The impact of SOA on the business The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Definition of SOA (by The Open Group’s SOA Work Group) q q q Service-Oriented Definition of SOA (by The Open Group’s SOA Work Group) q q q Service-Oriented Architecture (SOA) is an architectural style that supports service orientation Service orientation is a way of thinking in terms of services and service-based development and the outcomes of services A service: § Is a logical representation of a repeatable business activity that has a specified outcome § Is self-contained § May be composed of other services § Is a “black box” to consumers of the service 5 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

What SOA Is and Is Not q SOA is: § A style of architecture What SOA Is and Is Not q SOA is: § A style of architecture § It can be applied to architectures at many different levels § Business architecture § Information Systems Architecture § Infrastructure architecture q SOA is not: § An IT system (although systems can be created in accordance with the style) § A product § Always the best solution 6 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

What Next q q 7 What SOA is and is not Some basic principles What Next q q 7 What SOA is and is not Some basic principles of SOA The current status of SOA standards The benefits of SOA to the business The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Some Basic Principles of SOA q A successful implementation based on SOA will impact Some Basic Principles of SOA q A successful implementation based on SOA will impact all of the architectures § Collaboration will be required between those responsible for each architecture q The impact of SOA on the Business Architecture is the most visible § The impact on other architectures may be greater, but is less easy to visualize q There have to be standards if SOA is to succeed § Even at the business level § These are mainly corporate or industry standards 8 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

What Next q q 9 What SOA is and is not Some basic principles What Next q q 9 What SOA is and is not Some basic principles of SOA The current status of SOA standards The benefits of SOA to the business The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

The Current Status of SOA Standards q q q An abundance of SOA open The Current Status of SOA Standards q q q An abundance of SOA open specifications and standards from OASIS, OMG, W 3 C, The Open Group, etc. A joint document “Navigating the SOA Open Standards Landscape Around Architecture” published July 2009 by OASIS, OMG and The Open Group It explains and positions architectural standards for: § § § q q 10 SOA reference models and ontologies Reference architectures Maturity models SOA modelling languages Open standards related to SOA governance Outlines agreement on core SOA and SOA governance concepts The work goes on The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

What Next q q 11 What SOA is and is not Some basic principles What Next q q 11 What SOA is and is not Some basic principles of SOA The current status of SOA standards The benefits of SOA to the business The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

The DDB Group (an imaginary business) q Was formed in 1882 as the Dursley The DDB Group (an imaginary business) q Was formed in 1882 as the Dursley Drill Bit Company § Succeeded due to quality and patented processes § Has grown world-wide by acquisition of other companies § Each acquisition had own production processes that must be retained due to their speciality and excellence § Now produces hi-tech drill bits, cutters, routers, grinders and millers for the machine tool industry q 12 Operated as a loose collection of semi-autonomous specialist companies The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

The DDB Group (an imaginary business) q DDB Group is now the preferred supplier The DDB Group (an imaginary business) q DDB Group is now the preferred supplier to major machine tool manufacturers § Customers are manufactures, users and spares wholesalers § The wide range of specialist products means: § DDB does not hold large stocks § Products only manufactured against verified orders q 13 Time for change The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Transition at DDB q Requirements for change § The Group must present a united Transition at DDB q Requirements for change § The Group must present a united front to the customer § The administrative overhead must be reduced q A business principle § The production processes are a valuable asset and must remain unchanged q State of the transition § Internal business processes have been rationalized § Geographically dispersed § But based on common processes § Using integrated data q The challenge § Rationalization of the business processes after production 14 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Summary of The DDB Group § § History Formed in 1882 Success due to: Summary of The DDB Group § § History Formed in 1882 Success due to: • Quality of products • Patented Processes Global growth by acquisition of similar companies Semi-autonomous operation § § § 15 § § § The Business Challenge United front to customer Establish global branding Reduce administrative overhead Preserve specialist production processes Rationalization of post production processes Current Status Produces hi-tech drill bits, cutters, routers, grinders and millers Customers are manufactures, users and spares wholesalers Preferred supplier to major machine tool manufacturers Products only manufactured against verified orders Rationalized order and production management Rationalized financial control The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

DDB Group – simplified business baseline Traditional Ordering Order Management Production Management Dispatch Management DDB Group – simplified business baseline Traditional Ordering Order Management Production Management Dispatch Management National (van fleets) 16 Online Ordering Financial Control Production Facility International (logistics providers) The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group Intercontinental (air freight agents)

DDB Group - migration step 1 Traditional Ordering Order Management Online Ordering Production Management DDB Group - migration step 1 Traditional Ordering Order Management Online Ordering Production Management Dispatch Management National (van fleets) 17 Financial Control Production Facility Group Dispatch Management International (logistics providers) The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group Possible re-use Intercontinental (air freight agents)

DDB Group - migration step 2 Traditional Ordering Order Management Online Ordering Production Management DDB Group - migration step 2 Traditional Ordering Order Management Online Ordering Production Management Production Facility National (van fleets) 18 Financial Control Group Dispatch Management International (logistics providers) The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group Intercontinental (air freight agents)

DDB Group - migration step 2 Traditional Ordering Order Management Online Ordering Production Management DDB Group - migration step 2 Traditional Ordering Order Management Online Ordering Production Management Production Facility National deliveries 19 Financial Control Group Dispatch Management International deliveries The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group Intercontinental deliveries

Benefits to DDB on Current Transition q q q q q 20 Logical choices Benefits to DDB on Current Transition q q q q q 20 Logical choices for re-use of existing processes Co-existence with legacy processes Gradual replacement of old with new Wrapping of tried and trusted processes Possible service composition for complex events Simplified collection of business performance data enabling dynamic reconfiguration Concealment of detailed processes Service replication for reliability and scalability Possible multi-lingual operation The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

DDB Group - possible future agility Traditional Ordering Online Ordering Order Management Production Management DDB Group - possible future agility Traditional Ordering Online Ordering Order Management Production Management Financial Control Production Facility Group Dispatch Management Outsourced logistics 21 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Future Beneficial Impacts for DDB (1) q Improved flexibility § § q Decreased cost Future Beneficial Impacts for DDB (1) q Improved flexibility § § q Decreased cost § § 22 Easier integration of additional acquisitions Possibility of subcontracting production Possible migration to more modern production facilities Corporate reconfiguration with minimum disruption Reduced administrative overhead Tailor transportation choice to current lowest cost pattern Negotiation of quantity discounts for transportation Centralized and consistent monitoring of costs The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Future Beneficial Impacts for DDB (2) q Reduced risk § Increased reliability in achieving Future Beneficial Impacts for DDB (2) q Reduced risk § Increased reliability in achieving delivery targets § Decreased complexity in monitoring progressing of orders § Greater clarity for future transitions q Increased revenue § Recognition as a reliable supplier § Unified global image 23 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Future Beneficial Impacts for DDB (3) q New products and services enabled § § Future Beneficial Impacts for DDB (3) q New products and services enabled § § q Delivery tracking by customers Predictive inventory control Predictive customer orders JIT reliability Ensured compliance § Consistent compliance with changing import/export regulations § Visible compliance with fiscal regulations § Internal visibility of compliance with targets § Internal identification of fraudulent activities 24 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Future Beneficial Impacts for DDB (4) q Ready for the future § “Cloud” § Future Beneficial Impacts for DDB (4) q Ready for the future § “Cloud” § Employs a service-oriented style of architecture § SOA is a way of preparing for “Cloud” § “Saa. S” § Software as a Service employs a service-oriented style of architecture § SOA is a way of preparing for “Saa. S” 25 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Summary of Business Impacts q Can you quantify the impact on your business of: Summary of Business Impacts q Can you quantify the impact on your business of: § § § q 26 Improved flexibility Decreased cost Reduced risk Increased revenue New products and services enabled Ensured compliance? Can you quantify the cost of transition? The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Summary q q 27 What SOA is and is not Some basic principles of Summary q q 27 What SOA is and is not Some basic principles of SOA The current status of SOA standards The benefits of SOA to the business The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group

Questions please ? 28 The Impact of SOA on Business Copyright © 2009 – Questions please ? 28 The Impact of SOA on Business Copyright © 2009 – 2012 The Open Group