Innovation with SOA - IBM · Case Study: Payments Processing ... Restru cture A pplica tions Business Process Flexibility ... Case Management Provider Enrollment &

IBM Software Group

© 2006 IBM Corporation

Software Innovation with Services Oriented Architecture (SOA)

Hubert LalanneExecutive IT ArchitectIBM Software Group

IBM Software Group


Agenda

� Why SOA?

� What for?

� Which roadmap to SOA ?

� How to Implement the SOA Infrastructure ?

� Conclusion

IBM Software Group


Agenda

�Why SOA?

� What for?



� Conclusion

IBM Software Group


From siloed applications to a modular model …Providing flexibilty and interoperability

SOABank

Shared Service

Customer

Bank 2 – “Supplier”

Outsourced

Case Study: Payments Processing

An architecture model (and a set of principles) in which, business functions

are exposed as services (or components), reusable and composable

To increase interoperability and improve flexibility of Information Systems

SOA (Architecture Principles)

= Modularity, Flexibility

Web Services (Standards)

= Interoperability

IBM Software Group


Is SOA a new story ? � 1970 : CICS/IMS and their API , LU6.2 …………. Not universal

enough

� 1980 : Remote Procedure Calls (RPC)……………. Unix only

� 1985 : DCE procedures…. …………………………. Complex

� 1990 : Distributed Objects (Corba)……………… Very complex, noreal interoperabilitylimited investmentof SW Editors

� 1992 : Client/Server………………………………… Irrelevant goodidea

� 1996 : SOA is intoduced by Gartner :

Service-oriented architecture (SOA) is a client/server software design approach in which

an application consists of software services and software service consumers (also known

as clients or service requesters). SOA differs from the more general client/server model in

its definitive emphasis on loose coupling between software components, and in its use of

separately standing interfaces.

IBM Software Group


Service

Provider

Service

Requester

<DemandeStock>

<Piece>iPod</Piece>

<Type>Nano>/Type>

</DemandeStock>

<EtatStock>

<Nombre>234</Nombre>

</EtatStock>

Web Services – Basic principles

URL

Port

Input

Output

….

WSDL

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Why Web Services are succesful ?

� A real Standard – introduced by IBM and Microsoft

� A smart Simplicity

� Independance to implementation technologies :

– Interoperability Java – MS .Net

– Independant of languages ( Java, Cobol, php, C#), Component models ( J2EE,

.Net…), middlewares (CICS, IMS…), Operating Systems…

� Interface Contract ( WDSL) allow to automate the implementation

– Automatic generation of client stub, Server wrapping code, unit test sequence …

� Use of a universal transport protocol : http

– Permet de traverser les Firewall

� And above all, success of initial projects on the Web

– « act small , think Big »

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Web and Web Services : « mash-up »

Maps and Geo data

server

(Google)

Pictures server

(Flickr)

Commerce Server

(eBay)

www.mapetite-entreprise.com

Web Services

calls

Advanced Web Client

Inetrafce

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Strategic Importance of SOA…… according to Analysts

� Adoption of an SOA leads to an adaptive enterprise built from reusable components. Analysts predict widespread use of SOAs within two years.

� By 2006, more than 60% of enterprises will consider SOA a guiding principle in designing mission-critical applications and processes (Gartner)

Early majority adoption of

SOA by 2005

Source: ZapthinkSOA Drivers

• Increasing complexity of enterprise application

portfolios.

- There is a growing need for application interconnectedness

and business optimization

• Drive for Multi-channel Applications

- By 2009, over 40% of interactive apps will be designed for

multi-channel deployment.

• Market Hype

- Industry discussion prompts firms to consider SOA.

• Close to 80% of organizations currently implementing SOA

components aim to “Create Efficiencies across Business

Processes” and “Improve Access to Corporate

Information” (Yankee Group CIO Survey 2004)

SOA is driven by the Business

• 63% respondents agree SOAs are

driven by the business, whereas

previous IT architectures were driven by

IT (Cutter Benchmark Survey, 2004)

• 60% respondents agree that SOA must be

based on a comprehensive business model of

the enterprise (Cutter Benchmark Survey,

2004)

IBM Software Group


Reusable

SOA is about flexible access to existing business domains

Visible to SOA

Invisible to SOA

Business Domain

Business Entity

Business Service

Business Process

SOA focuses on exposing some of the business domain to provide dynamicity and flexibility using:

- loose-coupling, - protocol independence- location independence

Granularity

CompositionPrivate

Business Entity

Business Service

Business Process

But what should be made visible that has Business value ?

Adaptation to

standards

Standard but Flexible“The business & IT expansion join”

Services

EAI, EII,

Adapters,

etc..

IBM Software Group


Agenda

� Why SOA?

� What for?


� Which IT Infrastructure for SOA ?

� Conclusion

IBM Software Group


Traditional Way to implement new Applications

Existing Applications

Function

Function

Fonction

Fonction

Function

Data

Data

Data

Data

Use of various ways to

integrate the new

application in the

Information System

Batch Programs

New application

Software package or specific development

Files Transfer

Function

EAI

extra

ct

transform

load

extra

ct

transform

load

extra

ct

transform

load

Data

ETL

IBM Software Group


As Patterns Have Evolved, So Has IBM

Flexibility

�Point-to-Point connection

between applications

�Simple, basic connectivity

Messaging Backbone

�EAI connects applications

via a centralized hub

�Easier to manage larger

number of connections

Enterprise Application

Integration (EAI)

� Integration of services through

an Enterprise Service Bus

� Flexible connections with well

defined, standards-based

interfaces

Service Orientated Integration

SOA and EAI

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The SOA Approach


Function

Function

Function

Function

Function

Data

Data

Data

Data

New Application

Based on SOA …Function

Data

Significant functions and data of existing applications

& tools are exposed as services …

Application logic

New application logic is

calling services exposed

by other applications …

Additional functions can be

developped and … exposed

as services

IBM Software Group


What enterprises are doing with SOA ?Adapt and Innovate, focusing on heterogeneity (current or future)

Adapt for broader

connectivity and increased

revenues.

e.g. Telco operators, Insurance

companies, Automotive

industry, Pharmaceutics,

Airline companies

Innovate by restructuring

applications for greater

flexibility and lower costs.

e.g. Banks, Container Shipping,

Heavy industry,

Mergers & acquisitions

New interaction models

Restruc

ture Ap

plicatio

ns

Business Process Flexibility

Business Value

Adaptive

Enterprise

IBM Software Group


SOA Components as it relates to Value

Business Value

IT Value

Services

Composite

ServicesService

Connectivity

Integration

of

Services

Business

Process

Manageme

nt (BPM)

Information

as a

Service

Direct – SOA components provide

out-of-box functions to deliver

business value

Indirect – applications must use

services in a way that will deliver

business value

IBM Software Group


Agenda

� Why SOA?

� What for?

�Which roadmap to SOA ?


� Conclusion

IBM Software Group


SOA Roadmap The necessary focus areas

Models

ArchitectureMethods

Organization

�Cross LOB Management leadership

�Financial support

�SOA Governance

�Business Domain models

�Business Processes

�Business Information

�Business modeling

�Service Identification, Specification

�SOA Realization

�Solution layering

�Flexible infrastructure, ESB

�Standards (SCA, SDO, BPEL, WS-I)

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Establishing SOA Governance domains

Organizational Change for Service Orientation

IT Processes for Service Orientation

IT Mechanisms for Service Orientation

Business Services

Portfolio ManagementService Oriented

Development ManagementService O

peratio

nal

Management

Service Quality of Service and SLA Management

Service Change Management

Service Security Management

Service Modeling Techniques

Service Development Standards

Service Development Guidelines

SOA

Governance

IBM Software Group


Service Registry Vision

Service RegistryService Registry

Search, Select, Bind, Search, Select, Bind,

Route, Filter, TransformRoute, Filter, Transform

Bus Mediation

Candidate endpoints

and policies

Operational Efficiency & ResilienceOperational Efficiency & Resilience

Operational

Monitoring &

Mgmt Tool

Operational

policies & service

descriptions

Governance function

Operational

Data

Reference

Life Cycle Management Life Cycle Management

& SOA Governance& SOA Governance

Lifecycle

Management

ToolGovernance function

Config/

Deploy Tool

Candidate

endpoints

and policies

Service

Config

Config

Items

Reference

Develop, ReuseDevelop, Reuse

Development

Tool

Governance function

Candidate

services to use

Description of

new service,

reuse record

Assets

Reference

SOA Infrastructure

Service Oriented

Development Management

Business Services

Portfolio Management

Service Operational Management

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The SOA Layered Model

Unit Service Composite Service Referential

Servicesatomic and composite

Operational Systems

Components

users

Business ProcessesComposition; choreography; business state machines

Services Providers

Services requesters

Integration (Enterprise Service Bus)

QoS(Sécurité

, Management &

Monitoring Infrastructure Services)

Architecture de Données(meta-data) &

Business Intellig

ence

Governance

PackagedApplication

CustomApplication

OOApplication

Applications B2B End Users/Multi Channel

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Design & Development

methods

Design & Design & DevelopmentDevelopment

methodsmethods

SOA and MethodsBusiness Process

Modeling

Business Process

Modeling

Information System

Modeling & Design

Information Information SystemSystem

ModelingModeling & Design& Design

Identification Identification andand SpecificationSpecification ofof ServicesServices

L3G or OO design &

development

L3G or OO design &

development

Enterprise

Architecture Design

EnterpriseEnterprise

Architecture DesignArchitecture Design

To be

adapted

To To bebe

adaptedadaptedTo be

reused

To be

reusedNewNew

Definition of Operation

Processes

DefinitionDefinition ofof OperationOperation

ProcessesProcesses

IT Gouvernance

IT Gouvernance

IT Gouvernance

Application Portfolio

Management

Application Portfolio

Management

Service Design Service Design andand

Service Service

CompositionComposition

CBM

SOMA

GovernanceManagement Method

Infrastructure DesignInfrastructure DesignInfrastructure Design

Processes

Information and functions

Applications

Infrastructure

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City Mapping: Component Business Modeling

Version 1.0 March 1, 2005

Policy

and

Strategic

Planning

Oversight

and

Account-

ability

Service

Delivery

Policy

Analysis

Customer

Segmentation

Community

Engagement

Strategy

Reporting

Performance

Management

Outcome

Evaluation

Legislation

Support and

Management

Policy

Interpretation

Program

Planning

Product

Design

Product

Administration

Product

Implementation

Campaign

Planning

Campaign

Administration

Prospect

Identification

Marketing and

Advertising

External

Campaign

Execution

Records Management

AppealsMonitoring

Case Supervision

Outcome Management

Case Account Management

Benefit Eligibility Determination

Service Eligibility Determination

Assessment

Service Plan / Corrective Action Plan

Recertification

Referral

Validation

Payment

Instruction

Financial

Delivery

IT Delivery

HR Delivery

Financial

Management

IT

Management

HR

ManagementProcurement

/ Logistics

Mgmt

Financial

Strategy

IT Strategy

HR Strategy

Operations

Planning

Quality & Performance

Mgmt

Litigation &

Legal

Information

Technology

Facility Mgmt

Renewal

Mgmt

Fraud Control

Funds Mgmt

Admin

HAS, FSA, HRA

Audit and

Claims Tracking

Client Services

Management

Market

Research

Social

Marketplace

Social Program

DevelopmentOutreach

Care Plan

Management

Case

ManagementCustomer

Operations

Medicaid

OperationsBusiness

Service

Discovery

Capacity

Building

Community

Building

Vendor

Strategy

Privacy

Strategy

PrivacyManagement

EDI & Vendor

Mgmt

Audit Delivery

Medical

Management

Strategy

Service

Delivery

Strategy

ActivityManagement

Provider Relations

& Network

Management

Disease

management

PharmacyBenefits

Management

Prevention &

Wellness

Programs

Member

Enrollment &

Eligibility

Case

Management

Provider

Enrollment &

Credentialing

Authorization,

Pre-certification

& Referral

Processing

Claims

Strategy

Service

Strategy

Collections

Strategy

Collections

Reconciliation

CustomerServicing

ClaimsProcessing

Consumer Self

Service &

Fulfillment

Document

Management

Recovery / Third

Party Liability

Collections

Compliance

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What we do?

How we do it?

Realization

Decisions

Specification

of Services, Components, and Flows

Identification

of Candidate Services and Flows

Domain

Decomposition

Subsystem

AnalysisService

Specificationmessage & event

specification

component flow

specification

service flow

specification

Realization Decisions

Goal-Service

ModelingExisting Asset

Analysis

Component

Specificationinformation

specification

service allocation

to components

component

layering

technical feasibility exploration

Services Identification and Design :Services Oriented Modeling and Architecture

IBM Software Group


Service exposure decision

Sales Management

– 1.6.1 Prepare Estimate

– 1.6.3 Execute Estimate Approval

– 1.8.1 Prepare Contract Draft

– 1.8.2 Execute Contract Approval

– 1.8.5 Setup Contract

– 1.6.1.1 Prepare Estimate Price/Cost/Risk

– 1.6.3.1 Request Estimate Approval

– 1.6.3.2 Approve Estimate

– 1.8.1.1 Prepare Contract Cost/Price/Document

– 1.8.2.1 Request Contract Approval

– 1.8.2.2 Approve Contract

– 1.8.5.1 Prepare Contract Document

Project Management

– 1.8.5.3 Setup PM Info

– 1.8.5.5 Setup EPMS Info

Financial Management– 1.8.5.4 Setup Accounting Info

Composable, as repeatable tasks

Business Aligned (Verified by goal service modeling)

Stable when facing change?

� Opportunity Management– 0 Opportunity Management

– 1.6 Estimate & Quote

– 1.8 Contract

� Legal Management– 1.8.3 Execute Legal Review

– 1.8.3.1 Request Legal Review

– 1.8.3.2 Review Legal Issue

– Risk Management

– 1.6.2 Execute Estimate VRB

– 1.6.2.1 Request VRB Session

– 1.6.2.2 Initialize VRB Session

– 1.6.2.3 Put Opinion

– 1.6.2.4 Assign Mitigation

– 1.6.2.5 Decide Final Cost

– 1.8.4 Execute Contract VRB

– 1.8.4.1 Request VRB Session

– 1.8.4.2 Initialize VRB Session

– 1.8.4.3 Put Opinion

– 1.8.4.4 Assign Mitigation

– Supplier and Contract Management– 1.8.1.1 Retrieve Material Cost

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Webify SOBAs – Healthcare Example

IBM Infrastructure

IBM Software Group


Agenda

� Why SOA?

� What for?



� Conclusion

IBM Software Group


How to implement the SOA Infrastructure ?

• access

• secure

• log

• route

•Transform

•Orchestrate

Create Order

Produce a service

which is easy to call

Portals

BPM, EAI, EII

Web applications

Dashboards

Legacy Apps

Packaged Apps (Siebel, SAP, Peoplesoft, etc.)

Business Partner Data

Data Warehouses

Master Data Stores

SOA

Service Requesters

Service Providers

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Existing applications

Function

Function

Function

Function

Function

Données

Data

Data

Data

New application

SOA based …Application logic

Enterprise

Service Bus

+ Synchronous, Asynchronous

Event Driven, Pub Sub,

Broadcast …

ServiceRegistry

+ Logging, trace, billing

Workload management and Quality of Service

Mediation

Filtering

Routing

Mediation

Aggregation

TransformationMediationSecurité

Mediation

Non WS

functions

How to build an Infrastructure for SOA ?

IBM Software Group



Function

Function

Function

Function

Function

Data

Data

Données

Data

New Application

SOA based …

From Services Orchestration to Business Process Management

Enterprise Service BusService Registry

Business Process

Workflow/Process server

Portal

Business Process Modeling

Business Process Monitoring

IBM Software Group


SOA Standards – Current and Emerging

Service Composition

Transports

Messaging

Description

Quality ofExperience(QoX)

HTTP/HTTPS SMTP RMI / IIOP

XSD WSDL

SOAPXML WS-Addressing WS-Renewable References

WS-Metadata ExchangeWS-Policy

WS-Service Group

WS-Resource Properties

JMS

WS-Security

WS-Reliable Messaging WS-Transaction

WS-Resource Lifetime

WS-Base Faults

WS-Notification BPEL4WS

Current

Stack

Business

Integration…

Emerging

Stack

Business Web Services (Best Practices) : Service offerings and components (e.g., Book

Flight, Low Fare Search, Update PNR Data, TEA, Request For Design)

Evolving industry semantics

(RosettaNet, AIAG, ACORD, FIXML, OTAXML, UCCnet, etc.)

Service-oriented Business Resource Description & Interaction Patterns (WS-Collab)

IBM Software Group


IBM SOA Architecture Model

Apps &

Info Assets

Business Innovation & Optimization Services

Development

Services

Interaction Services Process Services Information Services

Partner Services Business App Services Access Services

Integrated

environment

for design

and creation

of solution

assets

Manage

and secure

services,

applications

&

resources

Facilitate better decision-making

with real-time business information

Enable collaboration

between people,

processes & information

Orchestrate and

automate business

processes

Manage diverse data

and content in a

unified manner

Connect with trading

partners

Build on a robust,

scaleable, and secure

services environment

Facilitate interactions

with existing information

and application assets

ESBFacilitates communication between services

IT Service

Management

Infrastructure Services

Optimize throughput, availability

and performance

Model

AssembleDeploy

Manage

IBM Software Group


IBM SOA Foundation

Invoke

Invoke

Invoke

Invoke Invoke

Process and Workflow Management

Enterprise Service Bus

Routage Pub/Sub Transformation MediationTransport

Monitoring & Dashboard

112

2

3

4

56

7

8

9

10

11

Appliance DataPower ( XML co-processing, Security, Gateway )

Websphere

Business Modeler

Websphere

Process Server

Websphere

Business Monitor

Websphere

Message Broker

Websphere ESB

Websphere ESB

Tivoli Monitoring

Tivoli Composite

Application Manager

Websphere Integration Developer

Rational Software Development Platform

Modelization and Assembly of Services and Processes

IBM Software Group


Business Service Repository

XSD Classification

WSDLSemanticAnnotation

SCDL WS-Policy

Development Development

AssetAsset RepositoryRepository

Service Development Lifecycle Service Endpoint Registries / Repositories

SAP, CICS, .NET, BEA, Oracle, Partners

Discovery Utilities

Change and Release Management

ITSM Process

Operational Efficiency andResilience

ITCAM / Service ManagementCMDBCMDB

ProcessESB MB WAS Portal

WebSphere Service Registry & Repository

Discover and reuse services that could serve as building

blocks for new composite applications.

Publish newly developed services.

Manage information that Enables dynamic binding of service requestors to service providers and allows the infrastructure to enforce registered policies.

Govern deployed services to ensure changes are authorized

and service integrity is maintained. Notify clients of changes.

Discover services from other registries or

deployed environments ready for

harvesting into the SOA lifecycle.

Manage efficiency by providing detailed information

about service interaction endpoints being monitored.

IBM Software Group


Interaction Services

Task 2

Task 4

Task 3

Task 6

Task 5Send

Invoice

Web

Service

Task 1

Process

Instance

Loan Service Order

Customer

Loan Service Agent

Offering Accept

Underwriter

Pay

Provide

Service

Design

Processing Team

IBM Software Group


Portal as platform for Composite Applications

� Build and deploy composite

applications using portal

services

� New Concepts:

� Portlet Factory

� Templates

� Application Context

� Membership / Community

� Application Roles

IBM Software Group


Extend SOA to the Desktop Lotus Expeditor

37

IBM Software Group


What is an Information Service ?

• access

• validate

• consolidate

• align

• transform

get customer

Produce a service

which is easy to call

Portals

BPM, EAI, EII

Web applications

Dashboards

Legacy Apps

Packaged Apps (Siebel, SAP, Peoplesoft, etc.)

Business Partner Data

Data Warehouses

Master Data Stores

SOA

+ Consistent Information Issues:

– Source of data e.g., which system contains true

address?

– Usage context e.g., local vs. international

addresses

– Structure of service response (XML)

– Governance issues

– Business rules

IBM Software Group


Examples of Information Services

Electronic integration

with partners

Access to

analytical data for

closed-loop processes

Unified access to data

in files, databases,

and applications

Cleanse & match

inbound records to

existing data SWIFT, EDI, HIPAA

Transform and

align data from

different sources

Access to

unstructured information

alongside structured data

Data

Cleansing

Services

Data

Transformation

Services

Partner Data

Integration

Services

Operational

Data Services

Analytical

Data Services

Unstructured

Data Services

Access to and

integration of

master data

Master

Data Services

Validate records

against defined business

rules

Data

Validation

Services

Information Access Services

Information Integration Services

IBM Software Group


IBM Information Services Offering

PeopleProcesse

s

Tools &

Application

s

Information as a ServiceOptimize, Virtualize, Integrate, Accelerate

Data &

Content

Insightful

RelationshipsBusiness

Context

Data Servers & Content Repositories

1Data Complexity,

Inconsistency, &

Inaccessibility

Multiple Versions

of the Truth

2

Unleveraged and

Unexplored Content

3

4Unleveraged and

Unmanaged XML

Information Server

Product Center

Customer Center

IBM Software Group


Agenda

� Why SOA?

� What for?



�Conclusion

IBM Software Group


Web ServicesInteroperability across

Heterogeneous Environments

Service ComponentsSimplified Composition and

Implementation of Services and Data

Business ProcessesBusiness Process Modeling &

Management

SOA Method &

OrganizationGovernance support

SOA projects snapshot

�Parts query

�HR partners

�SOA Method pilot project on “Dockings &

painting protections for new vehicles”

�SOA Center Of Excellence

�Bill of Material process vehicle work in progress

�Airport Ramp Control

�Trucks Customer Order process

�Electronic Industry Contracts management

Container Shipping

�Service registry.

�Dealers Interaction, parts

Business

Technology

IBM Software Group


How to address SOA Roadmap with IBM ?

Models

ArchitectureMethods

Organization

IBM SOA Governance Model IBM Industry Models

Service Oriented Business Applications

Component Business Model

Service Oriented Modeling an Architecture

IBM SOA Software Portfolio

IBM Software Group


Starting with Project Definition Workshop (PDW)to answer the following questions

�Why should “Company” leverage a Service-Oriented

Architecture?

�What are the preferred Business Processes

“Company” wants to leverage a Service Oriented

Architecture on?

�Select the preferred Business process / processes

�What is the architecture approach and roadmap to

move to SOA?

�How do we get started on the selected process?

Documents

Innovation with SOA - IBM · Case Study: Payments Processing ... Restru cture A pplica tions Business Process Flexibility ... Case Management Provider Enrollment &