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Services Thinking:Driving Sustainable Composability
Doug Shoupp
Principal
Deloitte Consulting LLP
April 30, 2008
Sustaining Service Composability — How to create collections of services that can be coordinated and assembled to form different composite services over time.
Is achieving this a technical issue or a business issue?
Is achieving this a technical issue or a business issue?
3Copyright © 2008 Deloitte Development LLC. All rights reserved.
It's a Time Issue
• Speed-to-market pressures
• The need for cross-channel consistency and process integration
• Shareholders demanding improved ROIs
• Competitive pressures for cost reduction and efficiency
• Too much Information to manage and examine effectively
• Requirements change prior to implementation
Getting ahead of the curve requires not just solutions — it requires spending the right amount of time and talent on the big picture, on the future.
Getting ahead of the curve requires not just solutions — it requires spending the right amount of time and talent on the big picture, on the future.
4Copyright © 2008 Deloitte Development LLC. All rights reserved.
How to design for the future?
How do we anticipate the right level of granularity? Will they be still composable when the business shifts? Will we be able to orchestrate?How do we anticipate the right level of granularity? Will they be still composable when the business shifts? Will we be able to orchestrate?
CompositeApplications
TechnicalServices
UI-Benefit UI-Tax Workforce
Bu
sin
ess
Lay
ers
Business Processes/CBS
ManageClaim Intake
Manage Continued Claim
Bu
sin
ess
Ser
vice
s L
ayer
s Business Services Process Claim
Intake
DetermineNon-Monetary
Eligibility
DetermineMonetaryEligibility
Atomic Services Notify Customer
DetermineFinancialEligibility
Tec
hn
ical
Lay
er UpdateBenefit DB
Send FinancialDeterminationTo Employer
Lo
w G
ran
ula
rity
Lo
w G
ran
ula
rity
Hig
h G
ran
ula
rity
Hig
h G
ran
ula
rity
Best-in-Class Approach
• Business and data access logic embedded in the presentation layer
• Interface granularity
• Mixing of synchronous and asynchronous invocation semantics in a single interface
• Organizational structure does not support the services hierarchies
• Governance– Ownership– Development and Maintenance – Framework and Decisions
Common Challenges
5Copyright © 2008 Deloitte Development LLC. All rights reserved.
It takes technology and business
• Rapid reconfiguration of business solutions that includes process and talent issues, not just technology and architecture
• A strong governance framework to drive commitment
• Significant business involvement to ensure solutions are relevant and useable
• Reduced complexity — SOA has no ability to reduce process, organizational, and regulatory complexities
• Clean data — SOA doesn’t address the critical importance of clean data access and cross-organizational process management
Creating sustainable composable services requires addressing the business and technical aspects of services — it means creating business agility.
Creating sustainable composable services requires addressing the business and technical aspects of services — it means creating business agility.
6Copyright © 2008 Deloitte Development LLC. All rights reserved.
Services Thinking - Driving Agility
• Focuses on what capabilities each part of an organization needs to complete, and organizes those capabilities into more manageable, independent pieces
• These pieces enable much more rapid and effective prioritization and alignment
• Services Thinking helps align different interests around a unified view
• Services can be orchestrated, monitored, simulated, and rapidly re-orchestrated to adapt to changes in the business landscape
• Services Thinking embeds business process, organizational considerations, go-to-market strategy, and technology
Conventional Scope of SOAConventional Scope of SOA
7Copyright © 2008 Deloitte Development LLC. All rights reserved.
Services Thinking builds upon Enterprise SOA to generate business value
Traditional Technology View
Traditional Technology View
8Copyright © 2008 Deloitte Development LLC. All rights reserved.
OK — But what does that look like?
9Copyright © 2008 Deloitte Development LLC. All rights reserved.
Let’s try that again…
Dynamic Enterprise Architecture Implementation Solutions
Phase 1Define Vision and Drivers
Phase 2Assessment &
Capabilities
Phase 3Develop
Transformation Architecture,
Model & Roadmap
Phase 4Define & Design
Phase 5Implement
Phase 6Operate
Execute
Current State
IterateIterate
Assess & Prioritize
IterateIterate
Services Thinking ApproachServices Thinking Approach
10Copyright © 2008 Deloitte Development LLC. All rights reserved.
Let’s look harder at the front endS
erv
ice
sT
hin
kin
g
SOA Readiness Assessment
SOA Roadmap
SOA Reference Architecture
Conduct SOAAssessment
Channels
Services Management Environment
Services GovernanceEnvironment
Integration Env. AdaptersServices Env.
Interaction Env. Information Env.Process Environment
BusinessEnvironment
Users
Messaging Business Services Legacy Wrapper/Adapter
Protocols Package Wrapper/Adapter
DB Adapter
Communication Environment
Registry Access Manager Interceptor Access Node
Enterprise Service Bus (ESB)
Intermediary Msg. Formatting Transformation Route/Distribute
UI - User Interaction Bus. Process Mgmt. Master Data Mgmt
Choreography Rules Engine Data Access
Collaboration Data Whse / Reporting
Constituents State Workers IT Developers Business Analyst Partners
Business Modeling Business Activity Monitoring Business Dashboards Business Simulation Business Optimization
Security Management
Monitoring
Asset Management
Policy Enforcement
Event Notification
Self Service Automated Inbound Automated Outbound
Service Repository Policy Establishment Change Management
Configuration MgmtService Lifecycle Stds./Arch Enforcement
Infrastructure Environment
SOAP Server Process Server
Application Server Database Server Content Server
Portal Server
Broker
Assisted
Technical Services
Mediation
Orchestration
Components
Services Development Environment
Art
ifac
t R
epo
sito
ry
Modeling
Discover / Build
Publish & Deploy
Integration
Maintain
Requirements
Testing & Validation
Partner Profile Mgmt.
Channels
Services Management Environment
Services Governance Environment
BusinessEnvironment
Users Constituents Employees IT Developers Business Analyst Partners
Business Process Modeling
Business Activity
Monitoring
Business Dashboards
Business Simulation
Business Optimization
Security Management
Monitoring
Asset Management
Policy Enforcement
Event Notification
Self Service Automated Inbound Automated Outbound
Service Repository Policy Establishment Change Management
Configuration MgmtService LifecycleStds./Arch
Enforcement
Infrastructure Environment
SOAP Server Process Server
Application ServerDatabase Server
Content Server
Portal Server
Assisted
Services Development Environment
Arti
fac
t R
ep
os
ito
ry
Modeling
Discover / Build
Publish & Deploy
Integration
Maintain
Requirements
Testing & Validation
Source: Deloitte Consulting, LLP 2008
Interaction Environment
Services Environment
Process Environment
UI - User Interaction Bus. Process Mgmt. Business Services
Choreography Rules Engine Technical Services
Collaboration ComponentsOrchestration
Communication and Integration Environment
Messaging Protocols
RegistryAccess
ManagerInterceptor Broker
Enterprise Service Bus (ESB)
Intermediary Mediation Transformation Route/Distribute
Partner Profiles
Legacy Wrapper/Adapter DB AdapterPartner Profile Management
Channels
Services Management Environment
Services Governance Environment
BusinessEnvironment
Users Constituents Employees IT Developers Business Analyst Partners
Business Process Modeling
Business Activity
Monitoring
Business Dashboards
Business Simulation
Business Optimization
Security Management
Monitoring
Asset Management
Policy Enforcement
Event Notification
Self Service Automated Inbound Automated Outbound
Service Repository Policy Establishment Change Management
Configuration MgmtService LifecycleStds./Arch
Enforcement
Infrastructure Environment
SOAP Server Process Server
Application ServerDatabase Server
Content Server
Portal Server
Assisted
Services Development Environment
Arti
fac
t R
ep
os
ito
ry
Modeling
Discover / Build
Publish & Deploy
Integration
Maintain
Requirements
Testing & Validation
Source: Deloitte Consulting, LLP 2008
Interaction Environment
Services Environment
Process Environment
UI - User Interaction Bus. Process Mgmt. Business Services
Choreography Rules Engine Technical Services
Collaboration ComponentsOrchestration
Communication and Integration Environment
Messaging Protocols
RegistryAccess
ManagerInterceptor Broker
Enterprise Service Bus (ESB)
Intermediary Mediation Transformation Route/Distribute
Partner Profiles
Legacy Wrapper/Adapter DB AdapterPartner Profile Management
Actionable Activities Deliverables/Benefits Samples
Analyze Business Capabilities Print
SOA Maturity Assessment
SOA Governance Framework
4Risk Management and Compliance
4Quality and Value Management
8Strategic Planning,
Governance and Budgeting
Maturity AssessmentDirect SOA
Impacts
Strategic Functions
4Risk Management and Compliance
4Quality and Value Management
8Strategic Planning,
Governance and Budgeting
Maturity AssessmentDirect SOA
Impacts
Strategic Functions
1 2 3 4 5
Non-Existent World ClassAd Hoc Defined Controlled
1 2 3 4 51 2 3 4 5
Non-Existent World ClassAd Hoc Defined Controlled
PortfolioManagement
Strategic Functions
Strategic Planning, Governance and Budgeting
Quality and Value Management
Risk Management and Compliance
2
IT Administrative Support Functions
HR/PerformanceManagement
Service Provider Performance Management
FinancialManagement
ProviderContractManagement
Physical AssetManagement
FacilitiesManagement
7
Client AccountManagement
DemandPlanning
Business Case Development
PerformanceManagement
Requirements Management
3Client Relationship Management Solution Delivery and Support
Application /InfrastructureDevelopment
6
Application /InfrastructureSupport
Application /InfrastructureMaintenance
Application /InfrastructureDeployment
ProgramManagementOffice
ReleasePlanning andManagement
ProjectManagement
Programand Project Management
5
DemandManagement
Architecture and Intellectual Property Mgmt
ApplicationArchitecture
Architecture Compliance
TechnicalArchitecture
4
Process/Service and Information Architecture
Architecture and Asset Management
Business Services Print
Identifies gaps/pain points in Business strategy, Organization, Governance, and Technology that would be addressed in the roadmap .
Build Reference Architecture
Accelerates identification of potential high-level Business Services.
Defines a robust Architecture baseline for the design, build, integration, and execution of solutions.
Defines a Roadmap that enables a value driven phased approach, focusing on quick hits as it addresses the identified gaps/pain points.
Build Roadmap
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Services Thinking in action
The Approach
• Identified capabilities common to every transaction
– Information needs
– Coordination of tasks
– Audit and controls
• Identified and prioritized business process, organizational, data, and technology services to enable required, scalable foundational capabilities
The Results
• Enabled the organization to meet its immediate objectives and provide the foundation for future adjustments to the market.
• Bottom line business benefits– Improved cycle times– Streamlined processes– An agile technology platform – Scalable delivery capacity
The Challenge A large financial institution needed to create comprehensive approach for managing, marketing, and liquidating the assets received from failed companies.
12Copyright © 2008 Deloitte Development LLC. All rights reserved.
- 12 -
• Conduct frank and productive discussions about opportunities and priorities within the organization — identify like-minded business sponsors
• Make a list of your organizations required capabilities
• Make a list of all the reasons you haven’t been able to make those capabilities a reality
• Identify the components you do have and prioritize for quick wins
• Have a plan for the future and build your capability-driven road map
• Include the business stakeholders every step of the way in the roadmap definition
• Take a multi-dimensional approach on modularity, composability, and interoperability for technical services, business processes, organization, and service delivery
Services Thinking — getting started
13Copyright © 2008 Deloitte Development LLC. All rights reserved.
In conclusion
Sustainable Composability requires new thinking:
• Cross-Domain
• Capabilities
• Dynamic
• Traceability
• Service Objects
• Agility
• Services
14Copyright © 2008 Deloitte Development LLC. All rights reserved.
Question and answer
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
Copyright © 2008 Deloitte Development LLC. All rights reserved. 462890