Delivering Enterprise Agility through SOAbased Composite Applications

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Delivering Enterprise Agility through SOA-based
Composite Applications

• Alex Andrianopoulos
• Alex.Andrianopoulos_at_Sun.com
• Product Management, Systems Engineering,
  Standards
• SOA / Business Integration
• Sun Microsystems

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Agenda

• Composite Applications the what and why
• Building Composite Applications with a SOA
  Platform
• Case studies

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Agenda

• Composite Applications the what and why
• Building Composite Applications with a SOA
  Platform
• Case studies

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What is a Composite Application?

• A composite application is
• a collection of existing
• and independently developed applications
• and new business logic
• orchestrated together into a brand new solution
  of a business problem that none alone can solve

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Why Composite Applications?

• Rapidly changing business conditions and
  objectives demand and dictate IT landscape
  modifications and enhancements invariably, IT
  organizations respond with
• Building new custom applications from scratch
• Licensing and implementing new packaged
  applications
• Extending and repurposing existing applications

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Why Composite Applications?

• Well Over 1 Trillion invested in IT annually
• 30 of budget is for failed projects
• 60 of budget is for maintenance of current apps
• Large Applications Backlogs
• IT Portfolio Lifecycle Management Portfolio
  Obesity
• Number of applications
• Size of applications
• Source Robert Handler, Gartner

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Why Composite Applications?

• The reason behind such spectacular failure rate
  is that all three approaches involve pitfalls and
  disadvantages
• Brand new, custom (bespoke) development work is
  inherently expensive in terms of both time and
  effort
• Packaged applications often do not meet the
  enterprises specific needs and objectives
  without extensive and, thus, expensive but
  necessary customization
• Extending existing applications propagates
  inflexible and outdated architectures and is also
  not as easy as it sounds

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Challenges Our Customers Face
How toDevelop deploy and manage applications
better and services faster with lower TCO
How to Leverage data and processes already in
place in legacy systems to build new generation
of services
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Why Composite Applications?

• Composite application development
• combines the benefits of custom development
• a solution customized to the problem at hand
• with those of packaged applications
• pre-built functionality solving a wide array of
  problems based on a common platform
• and does so with the leverage afforded by
  extending existing applications

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Why Composite Applications?

• Composite application development is
  process-driven and based on SOA (Service Oriented
  Architecture) principles as compared to the
  application-centric nature of the old development
  approaches. Such approach
• Separates the business process from the
  underlying systems into its own distinct layer
• Modularizes individual functions or groups of
  functions into self-contained and well-defined
  services
• Provides for better alignment with the business
  goals and operations due to both its
  process-driven nature and its SOA orientation

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Agenda

• Composite Applications the what and why
• Building Composite Applications with a SOA
  Platform
• Case studies

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SOA-based Implementation of Composite Applications
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Building Composite Applications with SOA-based
platforms
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Agenda

• Composite Applications the what and why
• Building Composite Applications with a SOA
  Platform
• Case studies

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HVB Americas

• Composite App Platform Suite SOLUTION
• Focus moved from transaction bus to composite
  application integrating business processes and
  human workflows
• Rapid application integration in a single
  platform, user customizable rules and mappings.
• Real-Time exception notification and management
  dashboard for business users
• Developers work with graphical representation of
  business logic and dont have to write low-level
  code
• Increased transaction throughput and
  significantly reduced cost. Transaction error
  rate dropped to zero
• ROI 3 to 6 months

• Company Brief
• HVB Americas, Inc. part of HVB, 2nd largest bank
  in Germany. Offers corporate clients complex
  financing and investment banking. Focus on money
  markets, interest rate derivatives, FX.

• CHALLENGES
• Business process required plethora of manual
  intervention as a rule rather than exception.
  This led to a high cost base and inability to
  increase throughput
• 30 of transactions contained an error
• Need to increase transaction volumes without cost
  increase
• Consolidated management information

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CalPERS

• Composite App Platform Suite SOLUTION
• New and old systems run in parallel with
  Non-Intrusive transition
• Reduction in Total Cost of Ownership due to
  replacement of legacy systems and migration from
  existing EDI platform
• Improvements in customer satisfaction levels due
  to increased levels of "one and done"
  transactions
• Improved process visibility into business
  transactions
• Flexible and robust B2B capabilities for
  replacement of existing EDI

• Company Brief
• CalPERS is the US largest public pension fund,
  and third largest in the world, with assets
  totalling 165 billion.
• They provide retirement and health benefit
  services to 1.4 million members and over 2500
  companies.

• CHALLENGES
• Need to achieve T0 compliance, as required by
  SEC, for trade data processing.
• Reducing the number of trade transactions that
  fail to process straight-through due to lack of
  or incomplete security master data by 90.
• Standardize on one enterprise wide Integration
  platform by migrating existing System on OAI
  (Oracle) to new solution, including migration of
  EDI translator
• Need flexibility to easily add more partners,
  provide better process visibility and greater
  operational control.

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Aegon TransAmerica

• Company Brief
• Ranked as one of top 5 insurance groups in the
  US. Aegon USA 18.2 billion enterprise. Major
  Acquisitions - Providian Corporation,
  TransAmerica Corporation.

• Composite App Platform Suite SOLUTION
• Create an integrated service oriented
  architecture (SOA) supporting business process
  and presentation channels
• Offer enhanced visibility into processes
  improved decision making and responsiveness to
  KPIs
• Through reuse of services and processes minimize
  impact of changes product, business and
  compliance
• Reduced cost of development and maintenance
• Zero Coding to date
• Reuse business skills of existing programmers on
  new projects

• CHALLENGES
• Managing change in a large, complex IT
  environment
• MA created costly, redundant environment,
  changes expensive, limited reuse three
  architectures
• Inability to get product to market fast enough
• Increased legislative requirements Patriot ACT,
  SOC, Basel II, Market Timing
• Improved customer service and economic pressure

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CenterPoint Energy

• Company Brief
• CenterPoint Energy is the 3rd largest publicly
  traded natural gas delivery company in the U.S.
  with nearly 3 million metered customers in six
  states and assets of nearly 19 billion, and
  annual revenues of more than 10 billion.

• Composite App Platform Suite SOLUTION
• Integrated business functions through B2B Gateway
  on SOA, such as Billing and Usage, Service
  Orders, Enrollment, (Switch, Move-in, Move-out)
  Customer Outage, etc.
• Management of over 80 large trading partners such
  as ERCOT, providing flexible translation and
  validation via SOA
• Over 453,000 B2B business transactions a day
  linked into core business processes via BPM
  orchestrating SOA on ESB
• Composite BAM application dashboards created from
  existing legacy application functionality deliver
  a new flexible, process-centric solution through
  SOA

• CHALLENGES
• Deregulation within industry, severely impacting
  existing business processes
• Move from 11 relationship to 201 relationship
  in new supply model
• Limited applications and could not rip and
  replace them to accommodate market demands
• Requirement to support a new set of standard
  transactions across industry for invoices, usage
  data, payments, switch requests, move-ins,
  move-outs, service orders, etc. Impact across
  multiple internal applications

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DuPont

• Composite App Platform Suite SOLUTION
• B2B Gateway integrated to multiple applications
  through SOA model
• External Portal access to SAP applications
• Phased Harbinger replacement without disruption
  to core business
• Reuse of Amtrix until phased out
• Support for EDI, CIDX, Custom secure HTTP
  messages
• Connection to Omnexus marketplace and Ariba B2B
  procurement
• Global partner connectivity
• Connection to VANs GXS, IBM, MCI
• Leveraging new Internet standards

• Company Brief
• DuPont is a science company, delivering solutions
  in food and nutrition health care apparel home
  and construction electronics and
  transportation. Operates in 70 countries with 135
  facilities and has revenues of over 27 billion
  in 2004.

• CHALLENGES
• Its chemical manufacturing process involves
  procurement on mass scales from global material
  catalogs and suppliers. Batch processing and
  manual data re-entries often result in errors and
  increased costs for DuPont and its customers.
• Real-time data synchronisation the supply chain
• Mergers Acquisitions
• Operational cost reduction

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Emerson

• Company Brief
• Emerson has more than 60 divisions that operate
  approximately 320 manufacturing locations
  worldwide and market products in over 150
  countries. Emerson makes a host of electrical,
  electromechanical and electronic products, many
  of which are used to control gases, liquids and
  electricity. Sales totaled 15.6 billion in 2004
  with 1.26 billion net income.

• Composite App Platform Suite SOLUTION
• Framework to support roll-out of global ERP
  standard while bridging to legacy systems,
  suppliers and trading partners
• A common customer interface to link 20 internal
  and sales-rep systems, an order mgmt system, and
  5 divisional ERP systems
• Dramatic business improvements in areas such as
  inventory management, IT staff utilization and
  cash flow
• Provides business process centric platform,
  driven through hub, to enable future business
  growth and restructuring

• CHALLENGES
• Growth through MA and a decentralized culture
  created an IT infrastructure with many disparate
  legacy systems and disjointed business processes
• No common systems to enable business
  restructuring, growth and e-business programs
• Need to eliminate the inefficiencies of multiple
  business transactions generated by expansive
  global operations
• Need to have 60 different divisions share common
  services
• 1B spent in 3PL as each division has
  relationships streamlined logistics needed

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Suns Software Strategy
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Solaris Enterprise System
Over 1 Million Java ES Subscribers
Java Enterprise System
Composite Application Platform
Communications
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Thank youAlex AndrianopoulosAlex.Andrianopoulo
s_at_sun.com