CBM SOMA - SCA

Techniques and Standards to Increase Business and IT Flexibility

Jouko Poutanen
Senior IT Architect, IBM Software Group

2008 IBM Corporation

Agenda

Component Business Modeling (CBM)
Drivers: specialization, cost reduction, differentiation, need for flexibility
Concepts
Engagements

 Service Oriented Modeling and Architecture (SOMA)

From business services to SOA services
Process demo

 Service Component Architecture (SCA)

SOA programming model

CBM SOMA SCA

2008 IBM Corporation

Phases of External Specialization

CBM SOMA SCA

2008 IBM Corporation

Stages of Internal Specialization

CBM SOMA SCA

2008 IBM Corporation

Structural Change Is Required to Achieve Further Cost

Reductions
 Typical initial cost reduction measures
(Type 1)

Type 1 Rationalization
Reduce Capacity

Hiring freeze
New IT project budget freeze

Termination of sub-contracting agreements

Early retirement

Cost

Voluntary departure plans

X
Reduce
FTE,
minimize
overlap,
improve
control

 Typical advanced cost reduction initiatives

(Type 2)

Volume

Type 2 Structural Change

Relocation of resources/applications

Transform Fixed into Variable Costs

Central vs. decentralized IT governance

Strategic alignment & prioritization

Process optimization

Cost

Maintenance/process outsourcing
X
Change IT
operating
model

Volume
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CBM SOMA SCA

2008 IBM Corporation

Common Business Challenges Facing Enterprises Today

Demand the Fusion of Business and IT
Increase revenue
Create new routes to market, create
new value from existing systems

Integrate across the enterprise

Integrate historically separate
systems, facilitate mergers and
acquisitions of enterprises

Drive down cost

Eliminate duplicate systems, build
once and leverage, improve time to
market

CBM SOMA SCA

Provide a flexible business

model
React to market changes more
quickly

Each represents a
SOA value
proposition

Reduce cycle times and cost

for external business partners
Move from manual to automated
transactions, facilitate flexible
dealings with business partners

Reduce risk and exposure

Improve visibility into business
operations

2008 IBM Corporation

What is a Business Component ?

CBM SOMA SCA

2008 IBM Corporation

CBM Framework
Make internal and external specialization practical by organizing activities
by accountability level and competency

Operations Management ? Analysing by Four Vs: volume, variety, variation, visibility etc.
Operations and Process Management, Slack et.al, 2006
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CBM SOMA SCA

2008 IBM Corporation

Example CBM Map from Retail Sector

CBM SOMA SCA

2008 IBM Corporation

Heat Maps Identify Hot Areas to Exploit Business Value

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CBM SOMA SCA

2008 IBM Corporation

Phases of CBM Analysis

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CBM SOMA SCA

2008 IBM Corporation

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CBM SOMA SCA

2008 IBM Corporation

There are two levels of deploying CBM, that are both

supported by the CBM framework
 Majority of present CBM assignments use component maps to
Analyze and frame client issues from a new dimension

Classical
organization

Identify and prioritize areas for improvement

 Component map need not to correspond to any existing

organizational structure
 Implementation horizon is typically 0 to 2 years

Transformation
 Incremental or full fledged
 Evaluation criterion differentiation often
as facilitator

Componentized
organization

 New organizational paradigm as CBM end vision: the organization is

a set of components that are networked together
Internally: the networked organization
Externally: the value network

 Interfaces between components have a physical component (services,

products) and a technological component (real time connectivity)
 Implementation horizon is typically 3 to 5 years
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CBM SOMA SCA

2008 IBM Corporation

Scenario: Improve customer service and operational efficiency

Business challenge:
U.S. division of a global insurance
group seeking an operating model that
increases flexibility while freeing up
capital.
CBM

Approach:
Used Component Business Modeling
(CBM) to determine which applications
deliver the most value to the business
and streamline processes that can be
refined, consolidated or eliminated.

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CBM SOMA SCA

Outcomes:
 Identified overlaps and redundancies to
reduce the cost of running and
maintaining the number of applications
by as much as 70%.
 Improved customer service and could
save the company an estimated
US$200M.
 Connected independent agents into its
central system to speed delivery of
policy quotes.
 Next step: Design and implement a
Service-Oriented Architecture (SOA)
to help consolidate costly, redundant
applications. SOMA

2008 IBM Corporation

Agenda
 Component Business Modeling (CBM)
Drivers: specialization, cost reduction, differentiation, need for flexibility
Concepts
Engagements

Service Oriented Modeling and Architecture (SOMA)

From business services to SOA services
Process demo

 Service Component Architecture (SCA)

SOA programming model

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CBM SOMA SCA

2008 IBM Corporation

Business and the Supporting IT Environment Must be

Componentized to Support Flexibility
Flexible Business
Transformation
Business Process Outsourcing
Mergers, Acquisitions & Divestitures

Composable
Processes
(CBM)
Component
Business Modeling

Requires

Flexible IT
On demand Operating Environment
Service Oriented Architecture (SOA)
Development
Software
Development

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CBM SOMA SCA

Infrastructure

Management

Integration

Infrastructure
Management

Composable
Services
(SOA)

2008 IBM Corporation

The use of new design techniques, combined with current approaches and
appropriate standards, is the most successful way to define services
Reasons for SOMA
Component Business
Modeling (CBM)

KPI
Metrics

Flows /
Activities

Business Analysis

Service-oriented
architecture (SOA)

SOMA

Use
Cases

BPEL
WSDL

OOAD

Information Technology

 Object-Oriented Analysis and

Design (OOAD) is necessary to
define object-oriented systems and
component-based development is
used to define component-based
architectures
 Service-oriented modeling is
necessary to build a serviceoriented architecture
SOMA builds on current techniques

Map
Attribution

Processes
Components

Patterns

Services Frameworks

 BPEL: Business Process Execution Language

 WSDL: Web Service Description Language
 SOMA: Service Oriented Modeling and
Architecture
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CBM SOMA SCA

Standards
Programming
Model

Domain Analysis
Functional Areas grouping
Variability-Oriented Analysis
(VOA)
Process Modeling
Component-Based Development
(CBD)
Object-Oriented Analysis and Design
(OOAD)/Use Case Modeling

 Service-oriented modeling
introduces new techniques
Goal-Service Modeling
Service Model creation
2008 IBM Corporation

CBM and the industry models

Direct

Business
& Resource
Admin

New
Business
Development

Product
Delivery

Product
Services

Account
Services

Business
Portfolio
Management

Business
and Resource
Planning

Segment
Analysis &
Planning

Customer
Portfolio &
Analysis

Customer
Sales & Servicing
Planning

Product
Operations
Planning

Product
Services
Planning

Account
Services
Planning

Asset &
Liability Policy
& Planning

Finance
Policies

Business
Policies &
Procedures

Acquisition
Planning

Credit
Policy &
Planning

Product
Oversight

Customer
Behavior
& Models

Sales/
Service
Administration

Product
Operations
Oversight

Product
Services
Oversight

Account
Services
Oversight

Risk/Portfolio
Management

Financial
Control

Relationship
Oversight

Case &
Exception
Handling

Customer Customer Sales

Management
& Servicing

Financial
Management

External
Relations
Business
Architecture

Control

Execute

Business
Unit Tracking

Campaign
Management

Reconciliations

Unit
Administration

Development
& Deployment

Administration

Authorizations

DDA/CheckSpecific
Processing

Inventory
Management

Customer
Accounting

Consolidated
Book/Position
Maintenance

Treasury

Human
Resource
Management

Market
Research

Relationship
Management

Transaction
Consolidation

Retail
Lending

Cash
Inventory

Billing &
Payments

Securitization/
Syndication

Financials
Consolidation

Transaction
Capture
Services

Card-specific
Processing

Market
Information

Collections
& Recovery

Inter-bank
Account
Management

Accounting
General
Ledger

Customer
Profile

Sales

Card Financial
Capture

Correspondence

Contact/
Event
History

Dialogue
Handler

Business processes and

Facilities
Product
Collateral
activities
areDirectory
automated
Operation &
Handling
Maintenance
by business services

Systems
Development &
Operations

Marketing

Fixed
Asset Register

Campaign
These are supported
Execution
by
collaborating
fine
Production
Assurance
grained
services and
(Help Desk)
object interactions

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Fraud/AML
Detection

Each
is
Audit/Assur- CBM componentApplication
ance/Legal/
Processing
Compliance
responsible
for business
activities
and
processesCredit
Business
Product

CBM SOMA SCA

Smart
Routing

Document
Management
& Archive
Merchant
Operations

Rewards
Administration

2008 IBM Corporation

SOA
Web

Collaboration

Device

People
(Service consumers)

Business
Process

External

Services
(Application &
Information)

Operational
Systems
(Application &
Information Assets)

Application

Application
Content

Data

Registry

Connectivity (Enterprise Service Bus)

Infrastructure and Management for SOA
SOA Governance and Lifecycle Management
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CBM SOMA SCA

2008 IBM Corporation

Services have a different level of granularity;

they are aggregated to a business process (flexible workflows)
Business Process





Long running
One or more persons interacting
Multiple valid business process states
Alternative workflows for nonnormal conditions

Business Transaction
 Short term, non-interactive
 One change of business state
 Consumes one or more enterprise
service
 Targeted level of service reuse
 Loose coupling important
 May require compensation

Function Service
 Collaborations to implement a
single web service
 Collaborating apps encapsulated
via web services
 Performance favored over loose
coupling
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CBM SOMA SCA

Member Requests an Rx
Refill (Call Center IVR or
Online)

Request
Denied

PC Physician
Approves or
Denies Request
(WS or Email)

Validate
Member is
Authorized to
Make Request

Member Informed that

Request has been Denied
Rx Dept
Processes
Refill

Member Informed
that Refill is Ready

Request
Approved

Send Request
Notification to
pharmacy

Determine Members Coverages

and Primary Care Physician
WS
Enabled

Send Request
Notification to Notes

Not WS
Enabled

Authorization Service
Email Service

Outpatient Service

Masters Service
Patient
Records

Credit
Verification

Office
Scheduling

Email
System

HR

2008 IBM Corporation

The Process of Service-Oriented Modeling and Architecture

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CBM SOMA SCA

2008 IBM Corporation

Example Case Study

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CBM SOMA SCA

2008 IBM Corporation

Scenario: Enable self-service using existing assets

Business challenge:
Government agency required to comply
with mandate to make 80 percent of its
transactions electronic by 2007.

Outcomes:

Approach:

 By implementing suggested SOAbased solution, client complied with

government mandate and completed
project ahead of schedule.

SOMA

The Service-Oriented Modeling and

Architecture (SOMA) technique was
applied to treat e-filing submissions as a
shared service by building a robust,
scalable SOA-based system linking
external trading partners with new
applications.
The approach leverages existing IT
assets and introduced new application
capabilities.

 Error rates associated with manual

adjustments to transmitted data were
reduced from 25% to 6%.
 Employee productivity increased
through online availability of submission
data.
 Next step: Create customized IT
roadmap to support new information
services identified by SOA model

CIR

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CBM SOMA SCA

2008 IBM Corporation

IBM Techniques to Help Accelerate Business Innovation

24

Business priority

IBM technique

Outcome

Drive growth and achieve

differentiation by leveraging core
competencies

Component Business Modeling

ServicesSM

Developing the business case for

transformation by creating a logical
representation of a business, making
it easier to analyze business process
performance and define
differentiating components

Develop a flexible set of

business-aligned IT services that
collectively fulfill an organizations
business processes and goals while
leveraging existing IT assets

Service-Oriented Modeling
and Architecture

Perform a holistic analysis of the

IT function to make it run as an
integrated and seamless part of the
business

Component Business Modeling

for the Business of IT

Identify changes necessary to

increase IT infrastructure
flexibility and reduce costs, based
on business goals

Component Infrastructure
Roadmap

CBM SOMA SCA

CBM

SOMA

CBM-BoIT

CIR

An SOA design recommendation

that includes a detailed description
of the SOA service model and
solution architecture
An IT process map of the activities
and resources required to run the IT
organization most effectively to
support the organizations business
objectives
An incremental roadmap for IT
based on analysis of current
and desired target state of IT
infrastructure capabilities,
business initiatives and goals
2008 IBM Corporation

Agenda
 Component Business Modeling (CBM)
Drivers: specialization, cost reduction, differentiation, need for flexibility
Concepts
Engagements

 Service Oriented Modeling and Architecture (SOMA)

From business services to SOA services
Process demo

Service Component Architecture (SCA)

SOA programming model

25

CBM SOMA SCA

2008 IBM Corporation

Elements of a SOA Programming Model

 A good SOA programming model supports:

Services as abstract encapsulations of business function.

Building, publishing, discovering and using services.
Assembling solutions from loosely coupled services.
Separation of concerns between business and infrastructure.
Freedom to choose / mix implementations, protocols, policies,

 Core Elements
Service Component Business logic implementation of a service.
Service Assembly Composition of components and services.
Service Data Business data exchanged by services.

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CBM SOMA SCA

2008 IBM Corporation

Open Service Component Architecture

 Developed by OSOA, a consortium of industry vendors.

 Standardization effort under way at OASIS.

 Open-source SCA runtime available in Apache Tuscany.

> 44,000 downloads since early 2007
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CBM SOMA SCA

2008 IBM Corporation

Service Oriented Architecture programming model

Business
Processes

Interface
Maps

 BPEL + Extensions
 SCA

Human
Tasks
Tasks

Business
Business
State
Machines
Machines

Selectors

Business
Object Maps

Service Component
Architecture

Business
Objects

Business
Rules
Rules

Relationships

Common Event
Infrastructure

WebSphere Application Server (J2EE Runtime)

SCA in WebSphere Process Server v6

Business Objects
(SDO-based technology)

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CBM SOMA SCA

Service Component
Architecture (SCA)

2008 IBM Corporation

Goals of the new programming model

 J2EE is too difficult SCA, SDO significantly simplify the programming
model
 Strong isolation between business logic and the technical infrastructure
code
 Dramatically reduced learning curve for classical application developers
 Provides a client programming model allowing client access to service
components
 SCA is a service oriented component model for business services that
publish or operate on business data
 SCA provides a single abstraction for service types that may already be
expressed as

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Session beans
Web Services
Java class
BPEL
etc

CBM SOMA SCA

2008 IBM Corporation

Service Component: Overview

Java

Java

WSDL
Port Type

WSDL
Port Type

Java

Interface

BPEL

State
Machine

Reference

Business
Rules

Human
Task

Selector

Interface
Maps

Implementation Types
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CBM SOMA SCA

2008 IBM Corporation

Service Module: Overview

SCA
SCA

Service Module

Service
Component

Export
Service
Component

non-SCA

SCA

Standalone
Reference
Import

Wire
non
SCA
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CBM SOMA SCA

2008 IBM Corporation

Programming Model
 Modules are contain wired Service Components
 Service Components use SDOs for data
 Solutions are a collections of Modules
Module B
Web Client

Export

Module A

Component

Component
Component

Wires

Interfaces

Import

References

Services

Export

SDO

I
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CBM SOMA n
SCA

t
e

2008 IBM Corporation

SCA Invocation Patterns

SCA
Export

Pseudo Synchronous

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CBM SOMA SCA

SCA
Component

Asynchronous

Import

Callback

2008 IBM Corporation

WebSphere Integration Developer Key Features

Business
Objects

Component
Interfaces

Assembly

Business Event
Monitoring

Selectors

Mapping
Components

Exports

Imports

Business
State
Machines

Business
Rules

Resource
Adaptors

Web Services

EJBs

Java

CBM SOMA SCA

Used in
Component
Creation

Diagram

Human
Tasks

Business
Processes

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Visual
Snippets

Components
Wired in
Assembly
Editor

J2EE
Artifacts
2008 IBM Corporation

Component Assembly Editor

Interface

Reference

Import

Module

Export
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CBM SOMA SCA

2008 IBM Corporation

Composition - Business Process

 WS-BPEL compliant business

process engine
 Simplified Process Editor
Optional

 Generic Business Process

Operations / Parameters
Service Implementation Details hidden

 Transactions / Compensation

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CBM SOMA SCA

2008 IBM Corporation

Integration Developer: Concepts

Module
Module
Module

Shared Library
Shared Library
Interfaces
Business Objects
Business Object Maps
Relationships

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CBM SOMA SCA

2008 IBM Corporation

Module
 Business Integration project type for developing SCA
based applications
 Basic unit of deployment to the runtime environment
A module is packaged in an EAR file

 Contains the following artifacts

SCA resources and module assembly
J2EE projects
Java projects
Dependent libraries

Module

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CBM SOMA SCA

2008 IBM Corporation

How to Build a Process Integration solution using BDD

Run-time Statistics

Rational RequisitePro
Rational Portfolio
Manager
Understand
Risk, Project
Costs, and ROI

Business Measures Model

WebSphere Business Modeler

Create, Simulate &
Analyze As-Is
Business Model

Project
Manager

Create Observation
Model with KPIs &
export to Monitor

services using
BPEL, WSDL,
etc.

Create, Simulate,
Analyze and Optimize
To-Be Business Model

CIO
Identify and
Manage
Projects and
Resources

WebSphere Integration
Developer
Choreograph

Create Financial
Reports & ROI
Estimates

Business
Analyst

BPEL
WSDL

Integration
Developer
Assemble Solution
(BPEL, Human Task
Manager, Business
Rules, etc)

Configure Human
Task Manager
(including Ad-Hoc)
& Client

WSDL
EAR

UML
Rational Data
Architect
Model
Relational
Database
Schemas

Create & Manage

System
Requirements

Trace Requirements
& Create System
Use Case
Realizations

Rational Functional & Performance

Tester
Test

Tester

Model & Implement

Services, & expose as
Web Services

RDB
Mapping

Data
Architect
Architect

Rational
Software
Architect

Develop
Portlets
(App UI
and
Monitor)

Runtime
WebSphere Process Server
WebSphere Portal
WebSphere Business Monitor

WSDL
EAR

Deploy/Run

Monitor

Java
Developer

Portal
Developer

Business
Operations
Analyst

DBA

IBM Rational Team Unifying Platform

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CBM SOMA SCA

2008 IBM Corporation

More Information
 CBM
www-935.ibm.com/services/us/imc/pdf/g510-6163-componentbusiness-models.pdf

 SOMA
Case Study
http://www.redbooks.ibm.com/abstracts/REDP4467.html?Open
Arctile
http://www.ibm.com/developerworks/webservices/library/ws-soadesign1/

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CBM SOMA SCA

2008 IBM Corporation