The Business Value of ServiceThe Business Value of Service--

Oriented ArchitectureOriented Architecture

Manoo Ordeedolchest

President, SIPA

Session ObjectivesSession Objectives

�Business Drivers

�Definitions: Services, Service Orientation and Service

Oriented Architecture

�Business Benefits

TodayToday

If You Invest If You Invest ……

Then TomorrowThen Tomorrow

10 Years Later10 Years LaterWhat Actually HappenedWhat Actually Happened

Internet Internet BankingBanking

WirelessWireless

AggregationAggregation

Branch BankingBranch Banking

CRMCRM

Core BankingCore Banking

Wealth ManagementWealth Management

Treasury / Treasury / ForexForex

Trading / Back office Trading / Back office

Payment Systems and Card MgmtPayment Systems and Card Mgmt

3D Secure3D Secure

Business Business IntelligenceIntelligence

EAIEAI

Straight through Straight through ProcessingProcessing

ATM / POSATM / POS

No Application Is An IslandNo Application Is An Island

Where Does Your Process Run?Where Does Your Process Run?

Initiate Initiate

projectproject

ReceiveReceiveReceiveReceive

Discuss commentsDiscuss comments

Discuss requirementsDiscuss requirements

Send POSend POCreate POCreate PO

Approve with Approve with

commentscomments

Send changesSend changesUpdate POUpdate PO

ApproveApproveConfirm POConfirm PO

Status?Status?

Ship noticeShip notice

InvoiceInvoiceClose Close

ProjectProjectClose POClose PO

Dealing With The Supply Demand Dealing With The Supply Demand

ImbalanceImbalance

Impediments to ValueImpediments to Value

Business ImpactBusiness ImpactIssueIssue

Sustaining IT investments crowd out new business value

Unconnected people, processes and information

IT assets are hard to manage

Computing fabric under attack

Integration is difficult, expensive

IT business value overlooked

Diminished insight, oversight, decision-making,

collaboration

Too much low-value admin-istrative work; low

utilization rate

Costly, frequent security updates

Process islands; impedes agility to respond, seize

opportunities

Extracting more Extracting more

value from whatvalue from what’’s s

already therealready there

Extending and Extending and

evolving and what evolving and what

you already haveyou already have

Top Line: RevenueTop Line: Revenue

Bottom Line: CostBottom Line: Cost

Connecting Connecting

into whatinto what’’s s

already therealready there

Business ImperativesBusiness Imperatives

Session ObjectivesSession Objectives

�Business Drivers

�Definitions: Services, Service Orientation and Service

Oriented Architecture

�Business Benefits

Services Formal DefinitionsServices Formal Definitions

�ServiceServiceServiceService� A Component capable of performing a task. A WSDL service: A collection of end points (W3C).

� A software component that is a business-complete logical unit of work, accessible programmatically from independently designed contexts via a direct and openly documented interface. (Gartner)

� A type of capability described using WSDL (CBDI).

�A Service Definition A Service Definition A Service Definition A Service Definition � A vehicle by which a consumer's need or want is satisfied according to a negotiated contract (implied or explicit) which includes Service Agreement, Function Offered and so on (CBDI).

�A Service Fulfillment A Service Fulfillment A Service Fulfillment A Service Fulfillment � An instance of a capability execution (CBDI).

Defining SOADefining SOA

�Service-Oriented Architecture is an approach to organising IT resources in which data, logic and infrastructure resources are accessed by routing messages between networked interfaces

Defining SOADefining SOA

�Basic value proposition is to provide consistent,

stable interfaces in front of diverse or volatile

implementations

� Establish context for information exchange across

organisations

� Encapsulate complexity within organisations

� Enable context-sensitive information processing

Contracts

Conceptual view of ServicesConceptual view of Services

Service

State

Logic

Message2 Message1

Services Communicate with Services Communicate with

MessagesMessages

� Services only communicate with messages

� There is no other interaction besides messages

� The other service is completely abstracted

� It does not have to be the same type of system…

Service-A Service-B

ServiceService--Requests & ServicesRequests & Services--ResponsesResponses

� Service-Requests

� Ask for work from the service

� Service-Responses

� Carry the response to the request

� May Be Other Patterns

� This is the simplest

Request

Response

ServiceLogic

DataSQL

What SOA is notWhat SOA is not

�Services ≠ components

�Services ≠ distributed objects

�SOA ≠Web services

Any Form of Messaging is OKAny Form of Messaging is OK�Many Kinds of Messaging

� Email, IP, TCP/IP, HTTP, MSMQ, MQ-Series, and more

� Advantages and Disadvantages to Each� HTTP is Ubiquitous (Huge Advantage)

� MQ-Series – Lots of Platforms

� Email (Over SMTP) is Ubiquitous (Huge Advantage)

� Ubiquity Is Essential� Connecting Within Your Enterprise

� Connecting With Your Partners

Your PartnersYour PartnersYour EnterpriseYour Enterprise

ServiceService ServiceServiceServiceService ServiceService ServiceService ServiceService

Some Form of Message BusSome Form of Message Bus

ServiceService--Oriented ArchitectureOriented Architecture

� An approach to building systems using services which

adhere to the 4 tenets of Service Orientation:

� Boundaries are Explicit

� Services are Autonomous

� Services share schema and contract, not class

� Service compatibility is determined based on

policy

ServiceService--Oriented ArchitectureOriented Architecture

� Application software topology consisting of services and service consumers (clients) in loosely-coupled 1-1 relationships. (Gartner)

� Provides services to consumers via standards-based, published, and discoverable interfaces

� Elevates abstraction level for code re-use� Applications can bind to services that evolve and improve over time

� No modifications are required to the applications that consume them

� Provides a clear model to integrate software systems� Inside the enterprise, and

� Across organizational boundaries

� Provides the foundation for global-class, connected applications

Service OrientationService Orientation

� Service orientation will encapsulate and componentized

processes and systems

� Help manage complexity

� Permit controlled change

� Support continuous improvement

� Business capabilities and business processes will be

modeled as services

� Organizations will expose touchpoints into these processes to both

internal and extra-organizational actors

� Allows automation of processes that have defied automation until

now

� On the path to the Agile Enterprise

ServiceService--Oriented ArchitectureOriented Architecture

�MetaA general-purpose architecture, inspired by the Internet and

the Web, for enabling extensible, federated interoperability

based on network concepts such as protocols and

intermediaries.

SOA in ActionSOA in ActionNicholas Applegate Capital Management

Before SOA

DataDataDataData DataData

Securities System A Securities System B Securities System C

SOA in ActionSOA in ActionNicholas Applegate Capital Management

After SOA

DataDataDataDataDataData

Securities System A Securities System B Securities System C

Session ObjectivesSession Objectives

�Business Drivers

�Definitions: Services, Service Orientation and Service

Oriented Architecture

�Business Benefits

SOA Business BenefitsSOA Business BenefitsCostCost

�Decreased cost

� Reduces TCO and increase ROI on evolving systems

� Add value to core investments by leveraging existing assets

� New systems can be built faster for less money because

existing services can be more easily reused (Chappell)

� Built for flexibility

� Long term value of interoperability

SOA Business BenefitsSOA Business BenefitsProductivityProductivity

�Increased employee productivity

� Unlock data

� Built on existing skills

� Consolidate Duplicate Functionality

SOA Business BenefitsSOA Business BenefitsPartnershipPartnership

�Built for partnerships

� Standards based

� Deeper engagements

� Business relationships expressed via service interactions

� Integration is driven by what is needed, not what is

technically possible.

SOA Business BenefitsSOA Business BenefitsAgilityAgility

�Agility - Built for change

� Helps applications evolve over time and last

� Abstract the backend and replace over time

� Access to the business value, no matter what technology

delivers it.

� Focusing on core-competencies

� Incremental implementation approach is supported.

� Service Outsourcing – new business model!

SOA Business BenefitsSOA Business Benefits

�Nicholas Gall, MetaGroup� “We believe service-oriented architecture is going to be a trend, and

in fact a disruptive trend.”

�MetaGroup

� Computation Virtualization enables Business Virtualization (Meta)

SOA IT BenefitsSOA IT BenefitsServices ScaleServices Scale

““Scales DownScales Down””to devicesto devices

““Scales InScales In””on a machineon a machine

““Scales UpScales Up””on large on large systemssystems

““Scales AwayScales Away””spans organizations spans organizations and geographiesand geographies

““Scales OutScales Out””by adding by adding machinesmachines

SOA IT BenefitsSOA IT Benefits

FormForm--Factor FriendlyFactor Friendly

Flexible, endFlexible, end--toto--end end

securitysecurity

Unlocks rich Unlocks rich

client assetsclient assets

LowLow--cost devices cost devices

via the PCvia the PC……

Empowers users withEmpowers users with

highhigh--end communicationsend communications

Dynamic protocol Dynamic protocol

negotiationnegotiation

DoesnDoesn’’t require t require

centralized servicescentralized services

SOA Developer BenefitsSOA Developer Benefits

� SOA’s don’t replace OO Development, but they extend the reach of the functionality.

� SOA’s make components reusable at the business level and not the component level.

� Application Location Transparency

� Loose Coupling allows flexibility

� Greater “Potential” for Re-Use� Think Cross Platform Re-Use

� Developer Yellow Pages of Services – UDDI

� Common Services Framework leaves developers to work on business logic. (Routing, Reliability)

� Industry View: Platform Independent Use

� Helps applications evolve over time and last

� Rich tools to Design, develop, debug, deploy services

� Connected systems and business re-engineering combined

delivers true breakthrough value

� Service Orientation is an evolution of Distributed Computing that

results in the following benefits

� Helps applications evolve over time and last

� Facilitates implementation/platform independence

� Independent deployment, versioning, management, etc.

� Promotes technology reuse

� Reduces TCO and increase ROI on evolving systems

� Business relationships expressed via service interactions

� Facilitates outsource and focusing on core-competencies

�Microsoft has a sophisticated existing toolset to help build

Service Orientation today.

SummarySummary

© 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.