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Business Consulting Services
Copyright IBM Corporation 2005
Service-Oriented Modeling and Architecture:from Business Intent to IT Realization
OMG SOA/WS/MDA workshop
Orlando, FL, March 21-24 2005
Luba Cherbakov, Distinguished Engineer
IBM Global Services
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Copyright IBM Corporation 2003
Agenda
Br idg ing Bus iness-IT Gap
- Component Business Model ing
- SOA
Service Oriented Model ing and A rch itectu re Overview
- Overview- Example
Q/A
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Copyright IBM Corporation 2003
Greater flexibility is required from business models and the supporting IT.
Service-Oriented Model ing and A rch itectu re (SOMA)provides in-depth guidance
on how to move from business models to the models required by an SOA
Transformation
Business Process Outsourcing
Mergers, Acquisitions & Divestitures
On Demand Operating Environment
Requires
Composable
Services(SOA)
Composable
Processes(IBM
Component
Business Model ing)
Development Infrastructure Management
Services Oriented Architecture (SOA)
Software
DevelopmentIntegration Infrastructure
Management
Servic
e-
Oriented
Modeling
Flexible Business
Flexible IT
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Agenda
Br idg ing Bus iness-IT Gap
- Component Business Model ing
- SOA
Service Oriented Model ing and A rch itectu re Overview
- Overview- Example
Q/A
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
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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
Business Component
Activities
Resources
Applications
Infrastructure
Business Purpose BusinessService
s
ComponentGovernan
ceEach business component has
differentiated capabilities
Each business component defines
and decides on the use of all
resources needed to perform thedefined activities
Each business component has a
governance structure within which itmanages its activities
Each business
component hasbusiness services
which form the
interfaces to other
business
components
Business Component Elements
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)
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
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We use a Business Component Map as a tabular view of the
business components in scope
Example component business model for the credit card industry
Columns are Business Competencies,
defined as large business areas with
characteristic skills and capabilities, for
example, product development or supply
chain.
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
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 ofanother company.
An Accountability Level
characterizes the scope and intent ofactivity 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
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Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
CBM can be very helpful in framing client issues
Example 2: sourcing
Example component business model for the credit card industry
1.We can highlight non-differentiated capabilities
that present potential
opportunities for
alternate sourcing
strategies2.We can identify
candidates for Business
Transformation
Outsourcing
3.We can identifycandidates where there
are Utility offerings
4.We can identify partners
with better capabilities
BTO
BTO
BTO
Utility
Utility
Utility
2004 IBM Corporation
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Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Service-
Oriented
Modeling
CBM can be very helpful in framing client issues
Example 3: technology
Example component business model for the credit card industry
1. We can map existing
applications infrastructure
onto the business map
2. We can identify where thereare systems dupl icat ions
3. We can highlight where there
are gaps
4. We can highlight where
systems have been
overextended
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Agenda
Bridg ing Business-IT Gap
- Component Bus iness Model ing
- SOA
Service Oriented Model ing and A rch itectu re Overview
- Overview- Example
Q/A
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Serv
ice-
Oriented
Modeling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Serv
ice-
Oriented
Modeling
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What is Service-Oriented Architecture?
SOA in context
- a set of services that a business wants to expose to their customers and partners,
or other portions of the organization
- an architectural style which requires a service provider, requestor and a service
description
- a set of architectural principles, patterns and criteria which address characteristics
such as modularity, encapsulation, loose coupling, separation of concerns, reuse,
composability and single implementation
- a programming model complete with standards, tools and technologies such as
Web Services
Business
Implementation
ArchitectureSOMA
focus
B i C l i S i
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An SOA is composed of multiple layers that decouple the
provider and consumer views
SOMA
focus
DataArchitecture
QualityofServic
e
Integration
PackageCustom
Application
Custom
ApplicationPackage
consumers
business processesprocess choreography
servicesatomic and composite
components
existing applications
Composite service
Atomic service
ServiceConsum
er
ServiceProvider
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Serv
ice-
Oriented
Mod
eling
Composable
Services
(SOA)
Composable
Processes(IBM
Component
Business Modeling)
Serv
ice-
Oriented
Mod
eling
B i C lti S i
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Agenda
Br idg ing Bus iness-IT Gap
- Component Business Model ing
- SOA
Service Oriented Model ing and Arch itectu re
- Overview- Example
Q/A
Business Consulting Services
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Copyright IBM Corporation 2003
At the heart of SOMA is the identification and specification of processes (flows),
services, and components that will realize them
>
RealizationDecisions
Specificationof Services, Components, Flows
Identification
of candidate Services, Components, and Flows
>
SOMA act iv i t ies are grouped into three major steps
SOMA Identi f ic at iondiscovers candidate services, enterprise components and flows
SOMA Specif icat ionmakes service exposure decisions, and specifies the services and enterprise
components to realize them
SOMA Realizationcaptures realization decisions
Business Consulting Services
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Agenda
Br idg ing Bus iness-IT Gap
- Component Business Model ing
- SOA
Service Oriented Model ing and Arch itectu re
-
Overview- Example
Q/A
Business Consulting Services
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Copyright IBM Corporation 2003
Rent-a-carhot components
Execute
Control
Direct
Business AdministrationRental Fleet LogisticsRentals managementProductsMarketing & Customer Mgt.
Customer Segmentation
Customer Behavior Modeling
Market & Competitor Research
Segmentation Management
Preferred Member Mgmt
Mass Marketing & Advertising
Customer Relationship Strategy
Channel & Location Profitability
Location Operations Management
Reservations Management
OEM Relationship Planning
Fleet Strategy
Fleet Planning
Call Center
Campaign Management
Customer Communications
Marketing Strategy & Planning
Target Marketing
Product Development / Design
Rental Product Strategy
Demand Forecasting
Purchasing / Sourcing
Location Design & Layout
Location & Channel Strategy
Channel Design & Layout
Time & Attendance
Workforce Management
OEM Performance Management
In-bound Logistics
Location Operations
Fleet Servicing
Corporate / LOB Strategy
Financial Management & Planning
Real Estate Planning
Alliance Management
Business Performance Reporting
Legal & Regulatory Compliance
Real Estate & Construction
Management
Risk Management
Stock Ledger
HR Management (Career Dev.,
Training, Recruiting)
Corporate Audit
Corporate Accounting (GL, AP,
A/R, Treasury, etc.)
HR Administration / Payroll
Indirect Procurement
PR & Investor Relations
Pricing Management
IT Systems & Operations
Rentals & ReservationsCustomer Service
Promotions Management
Fleet Management
E
X
A
MP
L
E
Forillus
trationonly
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Rent-a-carRentals and Reservations hot component with collaborating
components, component descriptions and business process
Fleet
Management
Promotions
Management
Customer
Service
Vehicle Availability
Location Promotions
Customer Profile
Location Information
Rentals & Reservations
Vehicle
Avai labi l i ty
Reserve Vehicle
Check Rates
Check-In Vehicle
Check-Out Vehicle
Customer Prof i le Locat ion Promo t ions
Locat ion
Information
Rent VehicleOffered Service
Consumed Service
EX
A
MP
L
E
Forillus
trationonly
Rentals &
Reservations
Execute level Biz component; Provides business services related
to vehicle rental reservations; Provides support for both the
reservations and rentals business processes
Customer Service Execute level Biz component; Responsible for servicing thecustomer; Offers, among other things, services relating to
maintenance of customer profile
Promotions
Management
Control level Biz component; Responsible for the management of
promotions across the board
Fleet Management Execute level Biz component; Responsible for providing services
around Fleet management, Fleet availability, etc
Rent VehicleBusiness Process
Reserve
Vehicle
Check-out
Vehicle
Check-in
Vehicle
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Rent-a-carGoals and Key Performance Indicators (KPIs)
Goal KPI
Increase the speed and agility indelivering new business services
Time to deliver a new business service = 2wks
Streamline processes to reduce
operating costs
Operating cost reduction from July 2004 levels
= Reduce by 20% after deployment ofservices platform
Increase Revenue by 20% by the end
of FY2005
Revenue increase in FY2005 over FY2004 =
20%
E
X
A
M
PL
E
Forillustrationonly
Goal: Business aspiration, usually highlevel
KPI: Measurable Objectives
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SOMA identifies services through three complementary techniques
Top Down
Analysis
Bottom-up
AnalysisService Specification
Helps Scope Service
Identification Process
Align Services
with Business Goals
Domain
Decomposition
Goal-Service
Modeling
Existing Asset
Analysis
Domain Decomposition (Top Down Analysis)
Existing Asset Analysis (Bottom-up Analysis)
Goal-Service Modeling
Identification
Specification
Realization
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g
Copyright IBM Corporation 2003
Rent-a-carDomain Decomposition Analysis Identification
Specification
Realization
Domains
Functional Areas
Rental ReservationsFleet
ManagementPricing
Promotions
Management
Customer
Service
Functional
Area
Marketing &
Customer
Management
ProductsRental
Fleet Logistics
Rentals
ManagementDomain
E
XA
MPL
E
Forillustratio
nonly
1.2
Check-out
Vehicle
1.3
Check-in
Vehicle
0.Rent Vehicle
1.1.2Make
Reservation
1.1.1Check
Rates
1.2.1Locate
Reservation
1.2.2Modify
Reservation
1.2.3Create Rental
Agreement
1.2.4Sign-out
Vehicle from Lot
1.3.1Locate Rental
Agreement
1.3.2Process Return
Information
1.3.3Process
Payment
1.3.4Return
Vehicle to Lot
1.1
Reserve
Vehicle
1.1.1.1
Get Location
(pick-up/
drop-off)
1.1.1.2
Get Date / time
(pick-up/
drop-off)
1.1.1.3
Choose
Vehicle
1.1.1.4
Get Options
Information
1.1.1.5
Check Vehicle
Availability
1.1.1.6
Offer Rates
For Selection
1.1.2.1
ConfirmRentalInformation
1.1.2.2
Get Customer
Information
1.1.2.3
Get Payment
Information
1.1.2.4
Confirm
Reservation
1.1.2.5
Create
Reservation
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Copyright IBM Corporation 2003
Rent-a-carTop-Down service identification
EX
A
MP
L
E
Forillus
trationonly
Rent Vehicle
Reserve Vehicle Check-in Vehicle
Check-out Vehicle
business processesprocess choreography
servicesatomic and composite
components
DataArchitecture
Quality
ofService
Integrat
ion
existing applications
Identification
Specification
Realization
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21 Copyright IBM Corporation 2003
Identification
Specification
Realization
Rent-a-carGoals, sub-goals as recorded in the Goal-Service
Model, and services identified for sub-goals
Goal-Service Model Increase Revenue by 20% by the end of FY2005
- Introduce New Products
- Introduce New Channels
- Increase Revenue per transaction
Up-sell higher class vehicle
- Understand Custom er Prof i le
- Determin e types of Up -sel l vehic les
- Check vehicle availability
Cross-sell additional options
- Purchase opt ions indiv idual ly
- Purchase opt ion packages
Cross-sell Partner services
- Reserve Hotel rooms
- Reserve Air l ine tickets
- Book dest inat ion attract ions
- Sell Navigat ion equipm ent po st-rental
EX
A
MP
L
E
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trationonly
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22 Copyright IBM Corporation 2003
Identification
Specification
Realization
Rent-a-carExisting Asset Analysis examines existing applications
to discover functions that may become service realizations
Rent Vehicle
Reserve Vehicle Check-in Vehicle
Check-out Vehicle
business processesprocess choreography
servicesatomic and composite
components
DataArch
itecture
Qualityof
Service
Integration
existing applications
IMS DB
IMS Transactions
ModifyReservation
Display
ReservationCreateReservationCancelReservation RateShop
???
dip into
realization
EX
A
MP
L
E
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trationonly
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23 Copyright IBM Corporation 2003
Identification
Specification
Realization
Rent-a-carSpecification and Realization activities complete
analysis and design
Rent Vehicle
Reserve Vehicle Check-in Vehicle
Check-out Vehicle
business processesprocess choreography
servicesatomic and composite
components
DataArchitecture
Quality
ofService
Integrat
ion
existing applications
IMS DB
IMS Transactions
Modify
Reservation
Display
ReservationCreate
Reservation
Cancel
ReservationRate
Shop
Modify
ReservationDisplay
Reservation
CreateReservation
Cancel
Reservation
Rate
Shop
Reservation Enterprise Component
Vehicle Component
Customer
Component
Rating Component
Permissions
Component
Permissions
Component
Event
Notification
Component
Session
Management
Component
Persistence
Component
Queue
Mgmt.Component
Data Access
Component
Transaction
Mgmt.
Component Log
Component
Audit
Component
EX
A
MP
L
E
Forillus
trationonly
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24 Copyright IBM Corporation 2003
Agenda
Br idg ing Bus iness-IT Gap
- Component Business Model ing
- SOA
Service Oriented Model ing and Arch itectu re
- Overview
- Example
Q/A