Developing an SOA Strategy

1
Developing an SOA Strategy
Track IT Executives

• Jon Plax, salesforce.com
• Saideep Raj, Accenture

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Developing an SOA StrategyTrack IT Executives
Jon Plax
Senior Program Manager, Global Integration
Services
jplax_at_salesforce.com
4
Agenda

• What and Why SOA?
• Successful Strategies
• Case Study

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Common IT Challenges

• Increasing competiveness and rapid change require
  business agility
• Lag time between business needs and IT delivery
  limits continuous business optimization
• Siloed stakeholders and subject matter experts
  result in long planning and design cycles
• IT environments growing more heterogeneous and
  decentralized
• Rigid architectures require substantial developer
  effort
• Widespread interdependencies create downstream
  impacts from changes
• Inability to enforce policies system-wide
• Processes and data are difficult to monitor or
  improve
• Disconnected activities provide little actionable
  business intelligence
• Poor data quality within and between applications
  hinders productivity
• Constant pressure to lower cost of ownership
• Maintenance costs of point-to-point integrations
  and technologies
• Resource-intensive manual processes

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• The main objective with SOA initiatives is to
  enable a more agile, flexible and standardized
  approach to designing, developing and deploying
  functionality that is often scattered throughout
  established IT systems. Gartner, Inc.,
  "Benefits and Challenges of SOA in Business
  Terms", September 2005

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What is Service Oriented Architecture?

• A service is a coarsely defined business
  function, often playing a role in one or more
  larger business processes, composed of a set of
  smaller processes or tasks.
• Service Oriented Architecture (SOA) is a course
  of action to align processes, information, and
  technology with business imperatives by using
  services as an organizing principle.
• SOA is not
• Web Services
• A middleware product
• An IT-only initiative

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Benefits of SOA

• SOA speeds business change.In its core design
  strategy of packaging applications into business
  units of work, service orientation reflects and
  models business processes. As the business
  changes, developers can more easily map business
  process changes to applications and then
  implement the appropriate IT changes.
• SOA facilitates business connections.With your
  business processes packaged as modular,
  accessible business services, you can connect
  them where and when they are needed to optimize
  processes across customers, partners, suppliers,
  and your own internal applications
• SOA enhances business control.Because services
  model business processes, the flow of data and
  transactions through service-oriented
  applications is valuable business data. SOA
  infrastructure actively manages service flows and
  can provide flexible and dynamic access to this
  data, which you can use to analyze and optimize
  business results and process costs.
• -- Forrester, Your Strategic SOA Platform
  Vision, March 2005

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Guiding Principles of SOA

• Incremental improvement
• Cost-benefit analysis
• Driving to commonality and reuse
• Focus on areas of high volatility
• Focus on most essential services

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Developing an SOA StrategyTrack IT Executives
Saideep Raj
Partner, CRM Global Service Line
saideep.raj_at_accenture.com
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SOA Solving Mission-Critical Business Issues
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The SOA trend to SaaS and Composite CRM
Accenture CRM Cornerstone
Composite
Enterprise
High
packages
CRM
Enterprise Data Density
Software
Niche
as a
Low
Service
Low
High
Uniqueness of Business Processes
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AppExchange A key part of an SOA Platform
Accenture CRM Cornerstone
Enterprise
Composite
packages
High
CRM
Enterprise Data Density
Software
Low
Niche
as a
Service
Low
High
Uniqueness of Business Processes
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Business Value / TCO Trade-Off
Ideal
Custom Apps
Services
Composite Apps
Differentiated capability built on common
platforms (lower TCO)
Business Value Delivered by IT
Packaged Apps
Lower TCO, but loss in differentiated capability
Reduction in TCO
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Executive Value of SOA
CEO Challenges

• Economic value
• Sustainable growth opportunities
• Cost structure performance management

Differentiation on the outside
CIO Challenges

• Reduce systems complexity
• Improve service reliability

Simplification on the inside
Execution mastery
COO Challenges

• Process excellence and consistency
• Improve service culture
• Exploit synergies and economies of scale

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Different perspectives
Business Strategists
Business Strategy Bring new products and services
to market Improve operational efficiency Increase
business value
Execute Business Strategy
Business Analysts
Business Activity Monitoring End-to-end process
performance monitoring Real-time insight and
control of business
Leverage existing IT
Process Designers
Business Process Management Quick delivery of new
services Quick automation of business processes
Services Layer Standardization of
servicesReducing code-based integrations
Systems Architects
Systems Integration Technology interoperability
Architecture and Infrastructure Services
Standardization
SoftwareEngineers
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Making It Happen
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Ten Challenges for the CIO

• Platform Competency
• Architectural Standards and Interoperability
• Infrastructure
• Data Architecture
• Security
• Training
• Application Rationalization
• Methods and Tools
• Testing
• IT Organization and Enterprise Architecture

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Adoption of SOA is an Incremental Journey
Phase 4
Phase 3
Phase 2
Phase 1
Enterprise Service Bus Based Solution and SOA
Platform
Organize and Strategize
Tactical Implementations
SOA Is Industrialized
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The Accenture commitment to SOA

• Launch of Accenture SOA Commercial Solutions,
  teaming with Salesforce.com
• Unique SOA solutions in development to drive
  business value in reporting, analytics, sales
  advice
• Industry Vertical solutions planned
• Leverage of the AppExchange Platform

Accenture Unveils Initiative to Accelerate
Innovation in Service-Oriented Architecture New
RD activity part of 450 million commitment to
SOA initiative CHICAGO July 19, 2006 Accenture
(NYSE ACN) plans to invest 450 million over the
next three years to accelerate the growth of its
service-oriented architecture (SOA) capabilities.
The effort, aimed at helping companies realize
the full benefits of service-oriented
architecture,
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Developing an SOA StrategyTrack IT Executives
Case Study
Jon Plax
Senior Program Manager, Global Integration
Services
jplax_at_salesforce.com
22
SOA Planning Process

• Establish a Business and IT Joint Vision
• Assemble steering committee
• Conduct collaborative requirements gathering
• Mutually commit to goals
• Define the SOA Roadmap
• Top-Down Analysis Identify key business pain
  points
• Bottom-Up Analysis Review current technology
  infrastructure
• Prioritize high value-add processes and identify
  quick wins
• Organize modest releases to maximize incremental
  value
• Launch Detailed Analysis
• Evaluate enterprise SOA skillset within IT
• Define service-enablement architecture
• Model high-level services and data structures

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Case Study Business Problem
Fortune 100 Company
Customers business strategy is to Grow and
Improve Productivity by focusing on key sales
capabilities, streamlining processes and reducing
operational overhead
INDUSTRY High Tech
EMPLOYEES 40,000
GEOGRAPHY Global
USERS 5000
PRODUCT(S) USED SFA
however, the legacy Systems Architecture made
implementation of this strategy Difficult,
Costly, and Time Consuming, and all too often the
results were less than optimal.
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Case Study Legacy Systems Architecture
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Case Study SOA Vision

• Increased Agility
• Improved responsiveness to business initiatives
• Loose coupling reduces vendor lock-in
• Lower Implementation Costs
• Common services provide rich features such as
  governance and monitoring capabilities
• New composite applications reuse existing
  business services
• Lower Operational Costs
• Simplify existing architecture (300 systems,
  databases, and point to point connections)
• Centralize data quality management
• Minimize resource-intensive manual processes

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Case Study SOA Principles in Action

• Business Alignment
• Enterprise-wide IT planning framework
• Business-prioritized portfolio management process
• Strict project lifecycle management
• Differentiated Services
• Best technologies for Data, Process, and
  Presentation
• Incremental Change
• Business Value Roadmap
• End-to-End Pilot

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Case Study Enterprise IT Planning Framework
Product Design
Marketing
Quote To Cash
Fulfillment
Customer Support
Support the Business Value Chain

• Resource Management
• Financial management
• Fixed asset management
• Hire to develop / develop to retire
• Vendor/Partner management
• Data management

• Business Management
• Strategy and planning
• Acquisitions
• Brand / Identify management
• Knowledge management / intellectual capital
• Customer feedback
• Metrics review

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Case Study Business Value Roadmap
Segmented and Personalized Info Delivery
Business Process Management
Federated Access Management
BUSINESS VALUE
Integrated Data Model
Application Integration
Workflow/ Business Rules
Reliability, Availability, Scalability
Single Sign On
TECHNOLOGY SERVICES
PLATFORM SERVICES
BUSINESSSERVICES
COMPLEXITY
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Case Study Services Architecture Vision
ExternalInterface
Salesforce .com
B2B
Mobile
Sales Portal
Rich User Interface
Business Processes(BPM)
Process Rules
Process
Services(SOA)
DataAccessLayer
Security Monitoring
Synchronization
Quality and Enrichment
Connectivity and Authorization
Metadata
Operational Datastore
Enterprise Data Warehouse
Custom DataSources
salesforce.com
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Case Study SOA Pilot Overview

• Objective Prove the benefits of SOA and the
  underlying technology in the real world.
• Problem Domain Customer data was distributed
  across many systems. Sales reps had limited
  visibility and could create new accounts freely,
  resulting in duplicate records and sales
  activity.
• Goal Enable and require sales reps to
  effortlessly search the global account universe
  before creating new accounts.

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Case Study SOA Pilot Analysis and Design

• Coarse-Grained Services
• Search Customer Accounts Universe
• Search Partner Account Universe
• Create New Account
• Validate New Account
• Assign Account Owner
• Interaction Model
• Override New Account button in Salesforce.com
  (Winter 07)
• Punch out to on premise J2EE Web Application
• Invoke services on SOA bus
• Execute operations on underlying systems

• Critical Functions
• Search for Duplicates Before Creating Account
• Create/Update Account in salesforce.com
• Create/Update Account in Account Framework
• Participating Applications
• Salesforce.com
• Account Master Framework
• Dunn Bradstreet
• Territory Management
• TIBCO Service Bus
• J2EE Web Server

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Case Study SOA Pilot Solution Architecture
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Case Study Results

• SOA has become a key strategy to reduce
  implementation and maintenance costs as well as
  increase agility.
• Business Alignment and Agility
• SOA fit the intersection between a business need
  and an IT strategy
• Account services defined in terms of business
  functions
• Differentiated Services
• Service layer hides underlying complexity from
  consumers
• Existing applications dont go away but can
  consume and provide services
• Incremental Change
• Pilot application is under development target
  go-live in December
• Longer term plan aligned with Business Value
  Roadmap

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Summary

• SOA is not a technology, but a process for
  aligning business objectives, technology assets,
  and IT activities in a way that maximizes
  incremental improvement, flexibility, and reuse.
• Initiating SOA requires understanding the
  business value of services and combining top-down
  and bottom-up methods of analysis.
• SOA solutions favor technologies emphasizing
  process focus, agility, loose coupling, and
  interoperability.
• AppExchange eases SOA integration through a
  standards-based web services API, effortless
  meta-customization, and sophisticated
  presentation layer compositing.

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Developing an SOA StrategyTrack IT Executives
QUESTION ANSWER PERIOD
Saideep Raj
Accenture
Partner, CRM Global Service Line
Jon Plax
salesforce.com
Senior Program Manager, Integration Services
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