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1 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Dr Mohamad AfsharSr. Director, Product Management Oracle Corporation
SessionTitle:Keys to Successful Governance with SOA
Welcome
to Transformation and Innovation 2007 The Business Transformation Conference
Ben MorelandDirector, Foundation ServicesThe Hartford
2 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
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“Specifying the decision rights and accountability framework to
encourage desirable behavior in the use of IT.”
Peter Weill Professor, MIT
3 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
leadership and organisational structures and processes that ensure that the organisation’s IT sustains and extends the organisation’s strategies and objectives
IT Governance Institute
Delivery of value to the business and mitigation of risk: mitigation through accountability in the enterprise; driven by strategic alignment
Organizational structures and processes that ensure organizations IT sustains and extends the organizations strategy and objectives
Not about making specific IT decisions (management does that), but rather determines which individuals and roles with the company systematically make and contribute to those decisions.
Establish chains of responsibility authority and communication to empower people (decision rights)And establish measurement and policy control mechanisms to enable people to carry out their roles and responsibilities
Governance is about getting people to do the right thing at the right time in the right way
4 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Marks of Good IT Governance With SOA
Differentiated Business Strategies Enabled by SOA
Business Objectives for Evaluating SOA Investments
Executives Engaged and Can Describe Arrangements
Stable with Few Changes Year to Year
Well-Defined Formal IT Exception Processes
Multiple Formal Communications Methods to Engage Business Leaders
5 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Where Do You Stand?
? SOA by Accident
IT Plan Non Existent or Not Aligned with Business PlanIT Reactive to Business InitiativesNo SOA StrategyNo SOA Roadmap Silos of SOA
SOA By Design
IT Plans Aligned with Business Plans and Initiatives SOA Strategy that is Communicated WidelyWell-Defined Business Benefits Sought from SOA StrategySOA Roadmap Aligned to Deliver on Business and SOA Strategy
6 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Delivery With Control &Reduced Risk
Governance with SOA
Governance is Key to Delivering on SOA by Design
Business Strategy
SOA Strategy
SOA Roadmap
Business Plan
EA Strategy
7 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Constituents of a SOA RoadmapSOA Strategy
SOA Roadmap Planning HelpsAvoid Duplicated Effort, Realize SOA Benefits Earlier and Support Improved Ability to Deliver Projects to SOA
Risk Identificationand Mitigation Against them
Capability Developmentto Improve Abilityto Deliver on SOA Project
Leverage Services PortfolioMaximize ReuseAlign with Platform Availability
SOA Requires Competence in a Range of Areas
Source of RiskHow to Lessen Impact
Business ServicesPortfolio Plan
Which Services, When
Buy-in from BusinessLeverage Projects to Build InfrastructureSOA Benefits Expected
Risk Profile For Projects
SOA Requires Capability Planning
Prioritized ProjectsIn Project Portfolio
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference8
Essence of Governance with SOA
Processes(How)
Decisions(Who)
Policies(What)
GOVERNANCE with SOA ADDRESSES•What decisions must be made for effective management•Who should make those decisions and who has input rights?•How will the decisions be formed and enacted
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference9
Key Leverage Points for SOA Governance | Prevalent View
Financial
PortfolioPeople
Operations
Projects /ServiceLifecycle
Technology Architecture
Service Usage Fees
Service Funding Model
Projects
Applications
Platform Funding Business Services
Roles & Responsibilities
Service Ownership
EA Group
Service & Process Owners
Service Lifecycle Gov
Shared Artifacts
Capacity Planning
Enforce Service Levels
Enforce Policies
Strategic SOA Platform
Shared Foundation Srvcs
Enforce Platform Decisions
Reference Architectures
Architectural Standards
Blueprints & Patterns
DRIVEN BY EXECUTIVES
Information
Data Standards
Data Quality
Data Ownership
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference10
Key Leverage Points for SOA Governance | Full Picture
Financial
PortfolioPeople
Operations
Projects
Technology Architecture
Service Usage Fees
Service Funding Model
Projects
Applications
Platform Funding Business Services
Roles & Responsibilities
Service Ownership
EA Group
Service & Process Owners
Service Lifecycle Gov
Shared Artifacts
Capacity Planning
Enforce Service Levels
Enforce Policies
Strategic SOA Platform
Shared Foundation Srvcs
Enforce Platform Decisions
Reference Architectures
Architectural Standards
Blueprints & Patterns
DRIVEN BY EXECUTIVES
Information
Data Standards
Data Quality
Data Ownership
11 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Financial SOA may require governance of new policies and
procedures around SOA Funding and Chargebacks
Distribution of Budget– Funding the SOA Journey and Programs
Allocation and Funding of SOA Software License, Hardware– Based on Priorities
SOA Center of Excellence Funding– Allocating cost of SMEs– Covering costs of outside consulting
Defining the Service Usage Fee Model– Chargebacks for shared services usage
• Foundational, architectural services such as Error Handling, Notification, etc.
• Business Services built by projects such as Customer Lookup, Item Validation, etc.
– Allocating support costs (operations, enhancement, bug fix) of shared services
12 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Portfolio Successful SOA Governance requires alignment of
the IT Portfolio with the SOA Strategy and Roadmap
Application Portfolio Planning– Ensure application lifecycles (upgrades, enhancements,
maintenance, sunset) are consistent with the SOA Strategy
Infrastructure and Technology Portfolio Planning– Ensure hardware and software agendas are consistent
with the SOA StrategyProject Portfolio Management
– Create projects to align applications and infrastructure to the milestones and goals of the SOA Roadmap
Services Portfolio Planning– Business Services Portfolio– Foundational/Technical Services Portfolio
13 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
People SOA is not only a Technology Shift. Policies governing
employees must be included in SOA Governance
Clarity Around Roles and Responsibilities– Process Ownership – NEW – Service Ownership – NEW– Architecture – Development Approach - NEW– Testing Approach– Operations– Training
Enable and Support People Making the Change- Organize around the SOA Vision
• Knowledge Centers – SOA CoEs• Enterprise Architecture Group• Cross Project Governance Board• Foster Innovation and Creativity
– Demonstrate Leadership• Affirm Executive Buy in and
Support• Monitor progress• Provide Rewards/Incentives
14 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Projects
Project Prioritization– Align with Strategy/Roadmap
Ongoing Service Ownership and Management
Consistency in Service Implementation– Design, Code Reviews
Create, Store, Find Shared Artifacts
Utilization Shared Services
Service Lifecycle Governance
Business Process Lifecycle Governance
Policies, processes and decisions must guide the projects designed to deliver on the SOA Vision
15 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Service Lifecycle
Service Identification and Design– Services Identification Framework– Service Interface Design– Approving a Service
Service Development– Consistency in Service Implementation – Building for Reuse
Service Deployment– Publishing a Service
Service Operations– Policies Relating to Services - Security– Service Change Requests– Service Versioning– Service Retirement/Sunset
Proper Service Lifecycle Governance is a critical component of SOA success. Without this, you may have services and SOA technology, but you will not realize benefits of an enterprise Service Oriented Architecture
16 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Architecture
Standards Compliance– WSDLs WS-I Compliance– Architecture Assessments– Review & Change Processes
Reference Architecture(s)Guidelines
– Service Interface Design– What to Repeat (patterns)– What to Share (reuse)
Blueprints– Multi-Channel
Patterns– Data Integration
Architecture Documents– Goals, Use Cases, Views, Standards
SOA Architecture provides the foundation to ensure consistent, shareable services
17 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Technology
Select technical technical solutions that adhere to industry standards
Platforms and Infrastructures should Evolve
– Aligned with Service Portfolio Plan and SOA Roadmap
Build Consensus to Migrate to an SOA Platform
Enforce Platform Decision Across IT Teams
Manage Timing and Implementation of SOA Platform Enhancements
Design and Build Shared Foundation Services as Part of SOA Infrastructure
Technology must be identified, sourced and managed like any other component of SOA - It is not a one-time “fire-and-forget” decision
18 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Operations
Develop an Operational Model for Services
Formalize Capacity Monitoring and Planning
Control Service Execution– Define/Enforce Service Levels– Define/Enforce Runtime Policies
(Security, Access, Logging, Billing)
SOA Infrastructure Monitoring and Management
Polices for Review and Handling of Exceptions and Violations
Operations of an SOA could be different than standard IT operations. Changes to existing, or even new policies may be needed to govern Operations for a SOA
19 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Information
Establish Data Ownership and Stewardship Model:– Define Roles & Responsibilities for Data
Consumers and Produces
– Set Data Standards
Build a Data Services Architecture
Mandate Data Access:– Schemas for Exchanging Core Enterprise Data
– Services as Single Sources of Truth Key Enterprise Entities
– Policies for Access Control
Policies for Resolving Data Conflicts to Improve Data Quality
Policies for Ensuring Quality of Service
Performance Tuning of Data Services for Multiple Application Scenarios
Unless data quality and interoperability issues are addressed, SOA apps will rest on top of a very weak foundation.
20 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
6 Steps to Successful SOA Governance
1. Define Goals and Strategies
3. Define Metrics
5. Analyze and ImproveExisting Processes 4. Put Governance
Mechanisms in Place
2. Define Standards, Policies, Procedures Around Financial, Portfolio, Project, Service, etc
These 6 steps allow a company to incrementally developand mature their overall SOA and thus business goals
6. Refine and Go to the Next Level of SOA Maturity
21 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Goals & Strategies
Business and IT Goals
SOA Strategy
Existing Capabilities
SOA Roadmap
Journey Management
22 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Create Standards, Policies & Processes
Communicate
Executives
Developers
Architects
Administrators
IT Managers
Business Analysts
Feedback & Monitor
EnterpriseArchitects
GovernanceBoard
Policies
Create
Manage
Issues:•Decision Rights•Input Rights•Exception Management
23 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Define Metrics for Success
Why Measure ? –Ensure Business Goals–Deliver SOA Strategy
What to Measure ? –standards, compliance, # of projects adhering to processes, #
of reference architectures, usability of reference architectures, # of exceptions, # of services created, # of reusable services, service reuse metrics, etc
How to Measure ?–What can be automated?–What can be easily captured?
24 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Put Governance Mechanisms in Place1. Decision, Policies, Processes
Blueprints & Patterns
Financial
PortfolioPeople
OperationsProjects
Technology Architecture
Service Usage Fees
Service Funding Model
Projects
Applications
Platform Funding Business Services
Roles & Responsibilities
Service Ownership
EA Group
Service & Process Owners
Service Lifecycle Gov
Shared Artifacts
Capacity Planning
Enforce Service Levels
Enforce Policies
Strategic SOA Platform
Shared Foundation Srvcs
Enforce Platform Decisions
Reference Architectures
Architectural Standards
DRIVEN BY EXECUTIVES
Information
Data Standards
Data Quality
Data Ownership
25 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Put Governance Mechanisms in Place2. Mechanisms
Vision for Governance Endorsed by Executives – Force Behavioral Change – Ensure Participation of Appropriate People
Awareness– Communication & Collaboration– Center of Excellence
Roles and Responsibilities– Financial, Portfolio, People, Architecture, Projects, Technology, etc– Education Strategies
Processes (Automated) – Capture and Report on Metrics
Administration, Monitoring and Enforcement– Exceptions Handling Mechanisms– Upward Communication when Policies are not followed
27 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Analyze and Improve
Metrics on Governance Process Itself
Metrics on Progress of Goals and Roadmap– How Often are People Going off the Path?– Do they Tell us When they do? – Do we need to change restrictive policies?– Do we need to have stricter enforcement?
What do you do with the Information?
Make Decisions
Create Feedback Loop
28 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Refine and Go to the Next Maturity Level
SOA Strategies, Goals, Objectives Met for this SOA Maturity Level level
Refine SOA Strategies, Goals, Objectives for Current Maturity Level
Create New SOA Strategies, Goals, Objectives for next SOA Maturity Level
29 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
30 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
31 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
The Hartford Financial Services Group, Inc.
Founded in 1810
One of the largest investment and insurance companies in the United States.
Fortune 100 company
30,000 employees
Two Companies:
– Hartford P&C – Auto, Home, Business insurance– Hartford Life – investment plans, Life insurance, Group benefits
32 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 1: Goals & Strategies – Level 1
Business Goals– Reduce TCO– Speed To Market– Ease of Doing Business
SOA Roadmap– Project-based (WSM & UDDI Registry selected)
Governance– “Do No Harm”
33 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 2: Create Standards, Policies & Processes – Level 1
Standards- SOAP 1.1, XML 1.0, UDDI 2.0, WSDL 1.1
First SOA initiatives were project-based SOA governance was at the project (LOB) level
Governance processes created to assess projects against Reference Architecture (Application)
Aligned LOB architects and project scoring
Created IT Roadmaps and Blueprints
PCAC formed
34 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 3: Define Metrics – Level 1
At SOA MM level 1, The Hartford didn’t have any explicit metrics other than project-based metrics
Discussions around SOA metrics began
No reusability at this point
35 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 4: Put Governance Mechanisms in Place – Level 1
PCAC put in place to score all projects against Reference Architecture primarily and LOB Roadmap and Blueprint if they existed
Scoring was a learning exercise at level 1
Assessment process being defined
36 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 5: Analyze and Improve – Level 1
Analyzed where we were against business goalsFindings:
– Architecture standards applied inconsistently across LOBs– Projects going forward that were not moving the overall architecture
in the right direction.– Initial services deployed showed promise of re-usability with the one
LOB
Are you moving forward or closer to your goals?– The eB&T organization decided:
• Centralize the enterprise architects and SOA practice (Foundation Services group)
• Begin to push back on negatively scored projects• Continue with the SOA initiatives (still project based) due to early
success (primarily insight into SEMCI application)
37 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 1: Goals & Strategies – Level 2
Business Goals (same):– Reduce TCO
– Speed To Market
– Ease of Doing Business
SOA Roadmap– Project-based (WS-addressing, WS-Security, Central EA
organization)
– Align LOB project decisions with architecture recommendations
Governance– Score projects to influence business decisions
– Track all projects assessed and not assessed
– Track all projects with and without “architects”
38 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 2: Create Standards, Policies & Processes – Level 2
Standards (added)
- WS-Addressing, WS-Security, Reference Architecture 2.0
Governance processes improved to assess projects against the Reference Architecture (SOA based) based on CIOs feedback
Project assessments more mature
Enterprise Architecture group formed under CTO (also new)
SOA governance through EA Foundation Services group, but still project-based
39 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 3: Define Metrics – Level 2
# of services (course-grained vs fine-grained)
Service Sharability, Component Reusability
# of projects assessed and not assessed
# of projects with assigned “architects” and without architects
Cost savings on projects based on architecture assessment and re-use
40 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 4: Put Governance Mechanisms in Place – Level 2
Central EA organization (ASC) for IT Governance
Projects scored and evaluated to “+”, “0”, “-”
Projects assessed as short term adequate, near-long term adequate and long term adequate
CIOs agree to “tax” if negatively scored project pushed through to delivery
SAD course developed and delivered to all architects
Service Policies
- WS-Addressing and “contract ID” required for all services
41 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Step 5: Analyze and Improve – Level 2
Analyzed where we were against business goals.Findings:
– Architecture standards applied consistently across LOBs– Some projects still being pushed forward with negative scores, but
now high level discussions and justification at executive level– Reusability in certain LOBs very high, others low– Still not addressing “Ease of doing business”– TCO lowered through SOA efficiencies in maintenance
Are you moving forward or closer to your goals?– The eB&T organization decided:
• 5 year business & IT roadmap developed• Foundational projects• Need better metrics
42 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
SOA Governance - Level 3
Portfolio transformation program identifying high value business services
Standards committee and Services committee formed to formalize standards maturity and P&C SOA policies and procedures
Service criteria and processes defined
Large number of new metrics with constant feedback from CIOs
No projects may be considered without EA involvement
Need SOA Governance automation to scale
43 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Summary
• Increasing SOA Maturity Only Achievable through SOA Governance
• SOA Governance Requires More than Technology
• Build on Existing IT Governance Mechanisms
• Executive Buy-In Vital to Catalyze Change Required for SOA
• Complexity of SOA Governance Proportional to Company Size
44 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Dr Mohamad AfsharSr. Director, Product Management Oracle Corporation
Contact Information:[email protected]@theHartford.com
Ben MorelandDirector, Foundation ServicesThe Hartford
Thank You