Implementing an Enterprise Service Bus

Background
The Company X has for some time been implementing various initiatives and
programs to transform its IT platforms into a stack-based industry. One of the
key objectives is to transform the IT landscape moving to a shared Data and
Optimized Process landscape.

Different IT systems within the company have been deployed and

implemented across over the years, however, quite often many of them need
to cross the boundaries of departments and location to obtain information or
data stored in different systems.

To optimally deliver on services that company X offer to its customer, it is

required to retrieve data and conduct transactions across multiple
heterogeneous IT systems. The company is looking to facilitate this cross-
departmental systems integration and make it secure, reliable, scalable and re-
usable.

Business Problem definition

Data producers establish independent one to many connections allowing
them to communicate with various data consumers. The resulting mesh
connections lead to duplication of resources and makes it difficult to manage
all interdependencies.

Depicted below is the current (As-IS) pictorial integration within some of the
Department within the company.

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Project Description
The project intends to establish a National middle Layer Information
Technology infrastructure (GSB) where all public and private institutions will
be connected to allow seamless data exchange using single point of
Connection.

Proposed plan
The following is the proposed plan

Milestone Responsible Target Date

Kickoff meeting Company X & Jan 2021

developer

MVP development Developer Feb 2021

Requirement gathering Developer Business Feb 2021

Analysis

Standardization / Company X & March 2021

interoperability developer
(Data/Information format)
ESB Architecture design Developer May 2021
setup

Define and Map service Company X & June 2021

producers and consumer developer
User Acceptance Test for Company X July 2021
core service producer and
consumer

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 Training and Final Company X & End July 2021
Acceptance developer

Project Governance
The following is the project team both at the develop side as well as company side:

ESB Project Manager

(Company X/John smith)

Project Lead Project Coordinator

(Developer/ Curly briyan) (Company X/ Annet Dig)
X/John smith)

Business analyst/ Architect Non IT staff

(Company X)
Developers X/John smith)
IT staff
(Company X)
UI/UX design
X/John smith)

Quality Assurance Quality Assurance

Strategic goal Alignment

The picture below depict (in green line) what strategic objectives that fit to the
implementation of ESB

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The following benefits also show how the proposed IT solution to this
problem are aligned with the Strategic orientation of the company.

 Data Exchange technology will be harmonized;

 Efficiency and better performance of Data Exchange ;
 Eliminate duplication of resources across Enterprise departments;
 Future growth of interconnections be controlled and made easy.

Economic Analysis and IT investment portfolio

The following tables will explain what investment is going to be and how
company is going to recover the budget. This also try to analyze if the project
is worthy to be done.

The assumption is done as follow:

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VARIABLES & ASSUMPTIONS
Financial
Cost of capital 12.00%

Company IT Operations
Revenue $ 90,765,800
OR Rev (% of total) 35.0%
Procedures 8000
Operating Department 25
Office Locations 5
People to be trained 150
Benefits
IT savings (/service) $ 32.00
Other savings (/service) $ 100.00
Increase in reimbursement 1.2%
Costs
Cost per workstation
Operating department $ 7,000
Office $ 6,000
Cost of software (/workstation) $ 13,000
Cost of Infrastructure $ 25,000
Maintenance / year (%) 18%
Consulting (% of software) 180%
Cost of training/person $ 800
Server $40,000

Then according to the above assumption and variables, we have the following
as the calculation over 10 years:

Year Year 0 Recurrent for year

1 up to year 10
OR workstations $ $
(175,000) (31,500)
OR software $ $
(325,000) (58,500)
Office work stations $ $
(30,000) (5,400)
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Office software $ $
(65,000) (11,700)
Infrastructure $ $
(25,000) (4,500)
Server $ $
(40,000) (7,200)
Consulting and Integration $ NA
(702,000)
Training $ NA
(120,000)
Total Costs $ $
(1,482,000) (118,800)

Savings in IT costs $
256,000
Other savings $
800,000
Increase in reimbursement $
381,216
Total Benefits $
1,437,216

$ $
(1,482,000) 1,318,416

NPV
5,967,346 $
IRR 89%
Then coming tables illustrate the projection analysis

a. Maintenance sensitivity:

With the NPV equal to $ 5,967,346

15% 6,079,220.89
18% 5,967,346.48
20% 5,892,763.53
25% 5,706,306.17
30% 5,519,848.81

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 b. Maintenance cost sensitivity per cost of capital

cost of capital
$ 7% 10% 12% 15%
5,967,346
15% $ $ $ $
Maintenance cost

7,917,071.72 6,740,760.23 6,079,220.89 5,234,198.28

sensitivity

18% $ $ $ $
7,778,004.81 6,619,097.80 5,967,346.48 5,134,826.66
20% $ $ $ $
7,685,293.53 6,537,989.51 5,892,763.53 5,068,578.92
25% $ $ $ $
7,453,515.34 6,335,218.80 5,706,306.17 4,902,959.55
30% $ $ $ $
7,221,737.15 6,132,448.08 5,519,848.81 4,737,340.19

This show that the project is worthy to be implemented.

IT charge plan
Understanding of costs: Good understanding of IT costs and how business unit activities
drive IT costs.
Cost benchmarks can be used to evaluate IT operations. How IT costs are changing with
time, how they compare with market prices.
Chargeback helps develop IT business partnership. Business helps IT understand priorities.
IT helps business understand costs. Together they make better investment decisions

Risk Management & change management

Risk management Strategy to overcome risk
- User department - Awareness/ Training in the
resistance
adoption of the new system
- Lack of involvement in
the implementation - Establishing user support services
process
- Allowing time to experiment with
- Lack of management
the new solution
support:
- Encouraging open communication
- Poor technical quality
between management and
employees;

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- Incorporating user participation into
the design process;
- Documenting standards for the new
solution