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

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Phases of External Specialization

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Stages of Internal Specialization

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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 x
Termination of sub-contracting agreements X
Reduce

Cost
Voluntary departure plans FTE,
minimize
Early retirement 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 x
Strategic alignment & prioritization
Maintenance/process outsourcing
Process optimization Cost
X
Change IT
operating
model

Volume
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 Common Business Challenges Facing Enterprises Today
Demand the Fusion of Business and IT

Increase revenue Provide a flexible business

Create new routes to market, create model
new value from existing systems React to market changes more
quickly

Integrate across the enterprise Reduce cycle times and cost

Integrate historically separate for external business partners
systems, facilitate mergers and Each represents a Move from manual to automated
acquisitions of enterprises SOA value transactions, facilitate flexible
proposition dealings with business partners

Drive down cost Reduce risk and exposure

Eliminate duplicate systems, build Improve visibility into business
once and leverage, improve time to operations
market

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What is a Business Component ?

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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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Example CBM Map from Retail Sector

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Heat Maps Identify Hot Areas to Exploit Business Value

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Phases of CBM Analysis

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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

 New organizational paradigm as CBM end vision: the organization is

Componentized a set of components that are networked together
organization
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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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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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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Business and the Supporting IT Environment Must be
Componentized to Support Flexibility

Flexible Business
Composable
Transformation Processes
Business Process Outsourcing (CBM)
Mergers, Acquisitions & Divestitures Component
Business Modeling

Requires
Flexible IT
On demand Operating Environment

Service Oriented Architecture (SOA) Composable

Services
Development Infrastructure Management (SOA)

Software Infrastructure
Development Integration Management

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 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 Service-oriented
Modeling (CBM) SOMA architecture (SOA)  Object-Oriented Analysis and
Design (OOAD) is necessary to
define object-oriented systems and
component-based development is
KPI Flows / Use used to define component-based
OOAD
Metrics Activities Cases architectures
 Service-oriented modeling is
BPEL necessary to build a service-
Business Analysis Information Technology oriented architecture
WSDL
SOMA builds on current techniques
Domain Analysis
Map Processes Patterns Standards Functional Areas grouping
Attribution Components Services Frameworks Programming Variability-Oriented Analysis
Model (VOA)
Process Modeling
Component-Based Development
(CBD)
Object-Oriented Analysis and Design
 BPEL: Business Process Execution Language (OOAD)/Use Case Modeling
 WSDL: Web Service Description Language  Service-oriented modeling
 SOMA: Service Oriented Modeling and introduces new techniques
Architecture Goal-Service Modeling
Service Model creation
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 CBM and the industry models

Business New Business

Customer Customer Sales Product Product Account Financial
& Resource Business Portfolio
Management & Servicing Delivery Services Services Management
Admin Development Management

Business Segment Customer Customer Product Product Account Asset &

and Resource Analysis & Portfolio & Sales & Servicing Operations Services Services Liability Policy Finance
Planning Planning Analysis Planning Planning Planning Planning & Planning Policies
Business
Direct Policies & Acquisition Credit
Policy &
Procedures Planning Planning
External
Relations

Business Customer Sales/ Product Product Account

Product Behavior Service Operations Services Services Risk/Portfolio Financial
Architecture Oversight & Models Management Control
Administration Oversight Oversight Oversight
Business Relationship Case &
Control Unit Tracking Campaign Oversight Exception Fraud/AML Reconciliations
Management Handling Detection
Each
Audit/Assur- CBM componentApplication
is
ance/Legal/
responsible
Compliance for business
Processing

activities
Business and processesCredit
Product DDA/Check- Inventory Customer Consolidated
Unit Development Administration Authorizations Specific Management Accounting Book/Position Treasury
Administration & Deployment Processing Maintenance

Human Market Relationship Transaction Retail Cash Billing & Securitization/ Financials
Resource Research Management Consolidation Lending Inventory Payments Syndication Consolidation
Management
Business processes and
Facilities Transaction Inter-bank Accounting
activities
Operation & areDirectory
automated
Product Collateral
Handling Capture Card-specific
Processing
Market
Information
Collections
& Recovery Account General
Maintenance Services Management Ledger
Execute by business services
Systems Customer Card Financial
Development & Marketing Profile Sales Capture Correspondence
Operations

Fixed Campaign Contact/ Dialogue Document

These are supported
Asset Register Execution Event
History Handler Management
& Archive
by collaborating
Production fine
Assurance Smart Merchant Rewards
grained
(Help Desk) services and Routing Operations Administration

object interactions

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SOA

Web Collaboration Device

People
(Service consumers)

Business
Process

External

Services
(Application &
Information)

Operational
Systems Application Application
(Application &
Information Assets) Content Data Registry

Connectivity (Enterprise Service Bus)

Infrastructure and Management for SOA
SOA Governance and Lifecycle Management

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Services have a different level of granularity;
they are aggregated to a business process (flexible workflows)

Business Process Member Requests an Rx Request Member Informed that

Refill (Call Center IVR or Denied Request has been Denied
 Long running Online) Rx Dept
 One or more persons interacting Processes
 Multiple valid business process states PC Physician Refill
Approves or Member Informed
 Alternative workflows for non- Request that Refill is Ready
Denies Request
normal conditions (WS or Email)
Approved

Business Transaction
Validate
 Short term, non-interactive Member is
Send Request
Determine Members Coverages Notification to
 One change of business state Authorized to and Primary Care Physician pharmacy
 Consumes one or more enterprise Make Request WS
Enabled
service
 Targeted level of service reuse Send Request
Notification to Notes
 Loose coupling important Not WS
Enabled
 May require compensation

Function Service Authorization Service

 Collaborations to implement a Email Service
Outpatient Service
single web service Masters Service
 Collaborating apps encapsulated
via web services Patient Credit Office Email
HR
 Performance favored over loose Records Verification Scheduling System
coupling
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The Process of Service-Oriented Modeling and Architecture

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Example Case Study

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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.
Approach: 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.
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Outcomes:
 By implementing suggested SOA-
based solution, client complied with
government mandate and completed
project ahead of schedule.
 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
2008 IBM Corporation
IBM Techniques to Help Accelerate Business Innovation
Business priority
Drive growth and achieve
differentiation by leveraging core
competencies
Develop a flexible set of
business-aligned IT services that
collectively fulfill an organizations
business processes and goals while
leveraging existing IT assets
Perform a holistic analysis of the
IT function to make it run as an
integrated and seamless part of the
business
Identify changes necessary to
increase IT infrastructure
flexibility and reduce costs, based
on business goals
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IBM technique Outcome
Component Business Modeling Developing the business case for
ServicesSM transformation by creating a logical
representation of a business, making
CBM
it easier to analyze business process
performance and define
differentiating components
Service-Oriented Modeling An SOA design recommendation
and Architecture that includes a detailed description
SOMA of the SOA service model and
solution architecture
Component Business Modeling An IT process map of the activities
for the Business of IT and resources required to run the IT
CBM-BoIT organization most effectively to
support the organizations business
objectives
Component Infrastructure An incremental roadmap for IT
Roadmap based on analysis of current
CIR
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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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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 Service Oriented Architecture programming model

Business
Business
Business Human Business
State
Processes Tasks
Tasks Rules
Rules
Machines
Machines

Interface Business
Selectors Relationships
Maps Object Maps
 BPEL + Extensions Service Component Business Common Event
 SCA Architecture Objects Infrastructure

WebSphere Application Server (J2EE Runtime)

SCA in WebSphere Process Server v6

Business Objects Service Component

(SDO-based technology) Architecture (SCA)

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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
Session beans
Web Services
Java class
BPEL
etc

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Service Component: Overview

Java Java

WSDL WSDL
Port Type Interface Reference Port Type

State Business Human Interface

Java BPEL Selector
Machine Rules Task Maps
Implementation Types
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Service Module: Overview

SCA
SCA
Service Module

Export Service
Component

Service
Component SCA

Standalone
Reference
non-SCA Import

Wire
non
SCA

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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

Services
Export
Import

Wires Interfaces References SDO

I
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SCA 2008 IBM Corporation
t
e
SCA Invocation Patterns

SCA SCA
Export Component Import

Pseudo Synchronous Asynchronous Callback

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WebSphere Integration Developer Key Features

Used in
Business Component Visual Business Event
Objects Interfaces Snippets Monitoring Component
Creation

Assembly Diagram

Business Human Mapping Components

Selectors Components
Processes Tasks Wired in
Assembly
Business
Exports Imports State
Business Editor
Rules
Machines

Resource J2EE
Web Services EJBs Java
Adaptors Artifacts

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Component Assembly Editor

Interface

Reference Import

Module

Export

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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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Integration Developer: Concepts
Module
Module
Module

Shared Library
Shared Library
Interfaces
Business Objects
Business Object Maps
Relationships

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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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 How to Build a Process Integration solution using BDD
Run-time Statistics
Rational RequisitePro Business Measures Model

Rational Portfolio WebSphere Business Modeler WebSphere Integration

Manager Create, Simulate & Developer
Create Observation Choreograph
Analyze As-Is Model with KPIs & services using
Understand Business Model export to Monitor BPEL, WSDL,
Risk, Project etc. Integration
Costs, and ROI Developer
Create, Simulate,
CIO Analyze and Optimize
To-Be Business Model Configure Human Assemble Solution
Task Manager (BPEL, Human Task
Identify and BPEL (including Ad-Hoc) Manager, Business
Manage
Projects and Create Financial WSDL & Client Rules, etc)
Resources Business Reports & ROI
Project Analyst Estimates
Manager
UML WSDL
Rational Functional & Performance Runtime EAR
Rational Data Tester
Architect Create & Manage WebSphere Process Server
System Test WebSphere Portal
Requirements WebSphere Business Monitor
Model Tester
Relational
Database
Schemas Trace Requirements Develop WSDL Deploy/Run
Model & Implement Portlets
& Create System
Services, & expose as (App UI EAR
Use Case
Web Services and
Realizations
RDB Monitor)
Mapping
Rational Business
Data Monitor
Architect
Software Operations
Architect Analyst
Java Portal DBA
Architect Developer Developer
IBM Rational Team Unifying Platform

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

 SOMA
Case Study
http://www.redbooks.ibm.com/abstracts/REDP4467.html?Open

Arctile
http://www.ibm.com/developerworks/webservices/library/ws-soa-
design1/

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