Selling SOA to Your CEO

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Selling SOA to Your CEO

• Michael Liebow, Vice PresidentBusiness
  Development, Global Consulting SOAIBM Global
  Business Services

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We spoke to 1,130 CEOs and conducted in-depth
analysis to determine the characteristics of the
Enterprise of the Future

• How are organizations addressing
• New and changing customers changes at the end
  of the value chain
• Global integration changes within the value
  chain
• Business model innovation their response to
  these changes

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CEOs see significant change and opportunity
ahead, and in response radically change their
business designs
Findings from 1130 interviews

• CEOs are
• Expecting significant change (increased by 33),
  while the ability to manage change has not kept
  pace 39 feel unprepared
• Investing heavily in engaging newly prosperous,
  more informed and collaborative, and socially
  aware customers
• Moving aggressively toward global business
  designs, deeply changing their capabilities,
  partnering more extensively and using MA to grow
• Making bolder moves if they are from financial
  outperforming companies

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Bharti
How do you maximize future flexibility and growth
potential by adopting a business-driven framework?

• Focused on process improvement by consolidating
  disparate systems
• Ensured back-end processes support business goals
  like improved mobile account activation
• Improved enterprise wide business intelligence
  with an integrated view of the customer to
  respond to needs more quickly and increase
  customer satisfaction

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Inhibitors for Alignment of Business and IT

• Differences in
• Culture
• Languages
• Priorities

• Complex Infrastructure
• No Business Architecture Blueprint

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Companies Want IT to Deliver More Business Value
Todays IT
Desired IT
30 New Capability
Increase Value Creation
45 New Capability
70 Sustaining RunningExisting Capability
Decrease Maintenance Delivery
55 Existing Capability
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How Can SOA Help Your CEO?
SOA is a Business Based approach to designing IT
systems that enables 5 Business
flexibility 4 Better business processes 3
Easier integration 2 Reuse of assets 1
Reduction of risk
Anything that changes can do that much better
if the system is architected in SOA.
Gartner
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Yansha Department Stores How do you get 1,800
national and international suppliers to buy into
a new, more efficient way of doing business?

• Reduced order lead time from 2.5 days to 4.5
  hours
• Improved order acknowledgement rate from 80 to
  99
• Reduced order error rate from nine to one percent
• Achieved ROI in nine months

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Things to Remember When Talking SOA to Your CEO
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Dont Call It SOA
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Pick Projects with Tangible Benefits
Focus on Solutions
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Reference Thought Leaders
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Build a Value Focused Business Case
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Dont Call It SOA Speak the Right Language
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• Explain the value and benefits in business terms
  that reflect the organization's goals
• cost reduction
• productivity
• competitive advantage
• before diving into a technical conversation

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Benchmark the Value with Key Agility Indicators
270 KAIs in the Benchmark Wizard
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Pick Projects with Tangible Benefits
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When selecting those small test projects, choose
to integrate and automate those business
processes that can have the most widespread,
positive impact across the organization
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Distinct Value with Every StyleRegardless of
Where You Choose to Engage
For example
Process entry point 80 reduction in time to
market for customized services
Partner externally in broad processes 98 of
transactions in sub-second Greater satisfaction
Transform online channel 30 increase in
transactions 60 increase in online conversion
rate
Pursuing acceptance processing of filings and
payments via any time, source or channel
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Focus on Solutions
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Examples
Industry Name
Insurance Operations of the Future
Insurance Insurance Self Service
Chemical Petroleum Information Integration Framework
Banking Customer Care Insight
Energy Utilities Intelligent Utilities Network
Government CBRM - Identity Mgmt
Government NCO - Mission Execution
Government Intelligent Transportation System
Government Integrated Case Mgmt.
Healthcare Clinical Information Systems
Healthcare Pandemic Mgmt
Healthcare Healthcare Plan Modernization
Telecommunications Service Assurance
Position SOA enabling business solutions that
tackle the key challenges faced by your business
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Generali GroupInsurance Operations of the Future

• Life Insurance division needed increased
  efficiencies across multiple legacy applications
  and infrastructure
• Business processes optimization and automation,
  input and work management needed
• Key reuse and business flexibility focus SOA
  was the how
• 20-30 productivity improvement with SOA
  implementation

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Reference Thought Leaders
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Cite external views on the growth and adoption of
service oriented architectures and point to
relevant SOA success stories within your industry
(and by your competitors)
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Learn How SOA Provides Value to Your Industry
Insurance
Healthcare
Government
Supply Chain Management
Banking
Biopharmaceutical
Electronics
Retail
http//www-935.ibm.com/services/us/index.wss/itser
vice_library/igs/a1002583
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Build a Value Focused Business Case
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Outline the immediate and long-term results from
this strategy while avoiding discussions about
specific version numbers and technical jargon
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Business needs context and vision to understand
your approach to SOA
Develop an SOA Strategy, Architecture, Business
Case, Governance Framework, and Roadmap to guide
the transformation of an organization and systems
towards a service-oriented model

• You need
• Customized Component Business Model Map
• SOA Reference Architecture
• SOA Vision and Strategy
• SOA Business Case
• SOA Governance Operating Principles Framework
• SOA Roadmap

Guiding principles for applying the SOA benefit
framework
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Defining an SOA Project with Business Case
IBM Industry Roadmap
Executive Support
WW Experiences
Local Expertise
IBM Workshop
Business Problems Defined
Process Designed
Solution Elaborated
Process Improvement
Business Value Quantified
Relationship
Project Definition
WW Experience Sharing
Project Implementation
Arch Development
Value Assessment
SOA Rapid Value Assessment Tool
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Stop talking about SOA. Start doing it.
Contact your IBM representative They can help!!