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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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    2

    Business Consulting Services

    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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    3

    Business Consulting Services

    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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    Business Consulting Services

    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

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    Copyright IBM Corporation 2003

    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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    Business Consulting Services

    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

    Business Consulting Services

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    Business Consulting Services

    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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    Business Consulting Services

    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

    Business Consulting Services

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    Business Consulting Services

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    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

    Business Consulting Services

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    Business Consulting Services

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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

    Business Consulting Services

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    Business Consulting Services

    Copyright IBM Corporation 2003

    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

    Business Consulting Services

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    Business Consulting Services

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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

    Business Consulting Services

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    g

    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

    Business Consulting Services

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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

    Forillus

    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

    Forillus

    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