®
IBM Software Group
© (Copyright) IBM Corporation 2005
Changing Business and SoftwareJames Rumbaugh, IBM Distinguished Engineer
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Business is Changing
Monolithic distributed
Tightly controlled open
Stable constantly changing
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Case Study: Procure to Pay Process
Division
Where We Are Heading
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Division
Case Study: Procure to Pay Process
Division
Customer
Change: Customer Order Entry
Where We Are Heading
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Shared Service
Change: Shared Service – Marketing, Billing, Receivables
DivisionDivision
Customer
Where We Are HeadingCase Study: Procure to Pay Process
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Supplier
Change: Supplier Handles Inventory
Shared Service
DivisionDivision
Customer
Case Study: Procure to Pay ProcessWhere We Are Heading
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Outsourced
Supplier
Shared Service
DivisionDivision
Customer
Change: Shipping by FedEx, DHL or UPS
Case Study: Procure to Pay ProcessWhere We Are Heading
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Outsourced
Supplier
Change: Collections Outsourced
Shared Service
DivisionDivision
Customer
Case Study: Procure to Pay ProcessWhere We Are Heading
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More pragmatic approach to re-engineering effortsGradual improvementTied to tangible business benefits
Each function where it best meets business needs:Within the organizationFrom a business partnerCompletely outsourced
Tune ongoing business without widespread disruption
Why is Incremental Change Desirable?
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Monolithic systems and applications can’t be reused
Ad hoc integration is difficult to change/maintain
Lack of standards limits interoperability
Rigidity makes small improvements hard to justify
Outsourced
Supplier
Case Study: Procure to Pay Process
Shared Service
Division
Customer
IT Architecture is a Choke Point for Business
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E01-EDI
Data Warehouse(Interfaces to and from the
Data Warehouse are notdisplayed on this diagram)
G02 - GeneralLedger
A05 - AP
S01 - SalesCorrections
I01 POReceiving
I03 Return toVendor
I06 WarehouseManagement
MaininframePC/NT apps Unix apps3rd Party Interface
S06 - Credit App
P15 EES EmployeeChange Notice
OTHER APPS - PCAP - Collections/Credit
TM - Credit Card DB
ACCTS REC APPS - PC990CORBad Debt
Beneficial FeesBeneficial Reconcile
JEAXFJEBFAJEBKAJEDVAJESOAJEVSAJEVSF
NSFTeleCredit Fees
INVENTORY CONTROL APPS - PCCode Alarm
Debit ReceivingsDevo Sales
Display InventoryIn Home
JunkoutsMerchandise Withdrawal
Promo CreditsRTV Accrual
ShrinkAP Research - Inv CntrlAP Research-Addl Rpts
Book to Perpetual InventoryClose Out Reporting
Computer Intelligence DataCount Corrections
Cross Ref for VCB DnldsDamage Write OffDebit Receivings
DFI Vendor DatabaseDisplay Inventory ReconcileDisplay Inventory Reporting
INVENTORY CONTROL APPS - PCDPI/CPI
IC BatchingInventory Adj/Count CorrectInventory Control Reports
Inventory LevelsInventory Roll
Merchandise WithdrawalOpen ReceivingsPI Count Results
PI Time Results from InvPrice Protection
Sales Flash ReportingShrink Reporting
SKU Gross MarginSKU Shrink Level Detail
USMVCB Downloads
Journal Entry Tool Kit
Scorecard - HR
L02-ResourceScheduling
P09 - P17Cyborg
M02 - Millennium
M03 - Millennium 3.0
Banks - ACH and Pos toPay
Cobra
B01 - StockStatus
S03-Polling
P14 On-line NewHire Entry
CTS
Plan Administrators(401K, PCS, Life,
Unicare, SolomonSmith Barney)
D01 Post LoadBilling
I04 HomeDeliveries
I02 -Transfers
Arthur Planning
I07 PurchaseOrder
I12 EntertainmentSoftware
I05Inventory Info
E13E3 Interface
S04 - Sales Posting
V01-Price ManagementSystem
I10 Cycle PhysicalInventory
I55 SKUInformation
K02Customer Repair
Tracking I35 Early WarningSystem
B02 MerchandiseAnalysis
I13- AutoReplenishment
U18 - CTO
Intercept
I09 Cycle Counts
E02-EmployeePurchase
Texlon 3.5
ACH
Stock Options
I17 Customer PerceivedIn-Stock
U16-Texlon
SiteSeer
C02 - CapitalProjects
F06 - FixedAssets
US Bank ReconFile
Star Repair
EDICoordinator
Mesa Data
NEW SoundscanNPD Group
AIG Warranty Guard
Resumix
Optika
Store BudgetReporting
P16 - Tally Sheet
Cash Receipts/Credit
S05 - HouseCharges
Ad Expense
L01-PromoAnalysis
V02-PriceMarketingSupport
BMP - Busperformance Mngt
StoreScorecard
I11 PriceTesting
Valley Media
P09Bonus/HR
I15 Hand ScanApps
Roadshow
POS
S08 - VertexSalesTax
A04 - CustRefund Chks
Equifax
ICMS Credit
CellularRollover
S09 - DigitalSatelliteSystem
NPD,SoundScan
Sterling VANMailbox (Value)
I18SKU Rep
X92-X96Host to AS400
Communication
S02 -Layaways
Washington,RGIS,
Ntl Bus Systems
V04-SignSystem
I14 Count CorrectionsNARM
P01-EmployeeMasterfile
I06 - CustomerOrder
FrickCo
UAR - Universal AccountReconciliation
DepositoryBanks
S07 - CellPhones
S11 - ISPTracking
AAS
Fringe PO
Cash Over/Short
L60 MDFCoop SKU Selection
Tool
SKUPerformance
SupplierCompliance
1
I35 - CEIASIS
Misc Accounting/Finance Apps - PC/NTCOBA (Corp office Budget Assistant)
PCBS(Profit Center Budget System)Merchandising Budget
AIMSMerch Mngr Approval
Batch ForecastingAd Measurement
AIMS Admin
AIMSReportingAd
Launcher
V03- MktReactions
SpecSource
CTO2
RebateTransfer
SignSystem
CopyWriter'sWorkspace
ELTPowerSuite
StoreMonitor
AIS Calendar
Stores & Mrkts
Due Dates
Smart Plus
InsertionsOrders
BudgetAnalysis Tool
Print CostingInvoice App
AIS Reports
BroadcastFilter
Smart PlusLauncher
GeneralMaintenance
Printer PO
PrinterMaintenance
VendorMaintenance
Vendor Setup
Connect 3
Connect 3Reports
Connect 3PDF Transfer
Spec SourceSKU Tracking
S20-SalesPolling
Prodigy
PSP
In-HomeRepair
WarrantyBillingSystem
Process Servers(Imaging)
Actual Application Architecture for Consumer Electronics Company
Complexity is Forcing Change
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Outsourced
Supplier
Case Study: Procure to Pay Process
Shared Service
Division
Customer
Standards (including open source) for interoperability
Self-defined, loosely coupled interfaces
Tools to visualize and integrate existing assets
Model Driven Architecture (MDA)
Declarative specifications and languages
Compositional techniques like Aspect Oriented Programming
But … Technology Applied Correctly can Pave the Way for successful Business Innovation
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Tying Business Models to the Supporting IT Architecture
TransformationBusiness Process Outsourcing
Mergers, Acquisitions & Divestitures
On Demand Operating Environment
Requires
ComposableServices(SOA)
Service Oriented Architecture
ComposableProcesses
(CBM)Component
Business Modeling
Development Infrastructure Management
Services Oriented Architecture (SOA)
Software Development
Integration InfrastructureManagement
Flexible Business
Flexible IT
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Three Key Concepts
Component Business Modeling (CBM)
Service Oriented Architecture (SOA)
Model Driven Architecture (MDA)
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Identify business transformation opportunities at the business process levelMake new business process composable and flexible Model the business as components with definedservices that the business provides or consumesServices are provided by IT systems, sourced from providers or supported manually
IT Strategy
ProblemHandling and Resolution
Ope
rate
and
exe
cute
Tact
ics
(Dire
ct, R
eact
and
C
ontr
ol)
Plan
ning
and
Ana
lysi
sO
pera
te a
nd e
xecu
teTa
ctic
s(D
irect
, Rea
ct a
nd
Con
trol
)Pl
anni
ng a
nd A
naly
sis
New Product Development Sales
Customer Management
and CareBilling and Collections
Provisioning& Fulfillment
Service Assurance
NetworkResource
Development
Develop New Markets and Products Acquire and Manage Customers Develop and Provide Network Services Manage Enterprise
Billing & Collections
Management
Fulfillment and resource
Planning
Technology and Resource
Strategy and Capacity Planning
Service Testing and
performance management
Rating Customer
Billing
BusinessManagement
Strategic Enterprise Planning
Marketing
Supplier/ Partner
Settlement and Billing
ServiceConfiguration,Activation and Disconnects
Resource Provisioning
Device and Supplier Order Management
CustomerSLA / QoS
Management
ServiceProblem
Management
ServiceManagement
Enable resource provisioning
(Engineering and Construction)
Network Resource
PerformanceManagement
Supplier/ Partner Problem
Reporting &Management
Supplier/ Partner
PerformanceManagement
Service Strategy and Readiness Planning
Product Portfolio Planning
Service Development
and Retirement
Customer Care Strategy
Account Planning
Partner Product Dev.
Strategy
Sales, Channel, and
AllianceManagement
Customer Contact Operations
Market and Brand
Strategy
Brand Management
Marketing Communicatio
ns, Advertising
and Promotion
Marketing Research and
Analysis
Product Development
and Retirement
Sales Channel Strategy
Execute Campaigns an d market fulfillment
Launch Product
Sales
Alliance Strategy
Fina
ncia
l and
Ass
et M
anag
emen
t
HR
Man
agem
ent
Proc
urem
ent
Tech
nolo
gy M
anag
emen
t (IT
, R&
D, D
isas
ter R
ecov
ery)
Stakeholder Mgmt/ Legal and Regulatory
Customer Care
Management
Customer Analytics and
product matching
Order Handling
Inventory Management
Customer Interface Management
Supply Chain/Value Net Strategy
Sales Problem B&C
Loyalty and Retention
Stak
ehol
der a
nd E
xter
nal R
elat
ions
Man
agem
ent
Component Business Models Permit Change
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Business Components
Business performs activitiesEx: Rent vehicle
Activities use resourcesEx: Rental car, parking spot, agent
A business component is a set of activities and resources
Ex: Rental location owns cars and rents and checks in carsIt is a virtual business unit that can operate independently
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Dependencies among Components
Activities depend on other componentsResource usageControl and information flows
Goal: restrict dependencies among componentsRegroup activities and resourcesChannel them through services
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Services
A service is an explicit interface with no “back doors”
Service has a defined contractInputs and outputsInteraction protocolPerformance
Components linked by services are substitutable
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A Business Component offers services to other components
Component NameMarket Segment
Planning
DescriptionTo analyze markets and derive targets
Component NameMarket Segment
Planning
DescriptionTo analyze markets and derive targets
RequiredServices
ProvidedServices
Tracking Models & Targets
Product Portfolio UpdatesBusiness
Plans
Market Events
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Business components use each other’s services.
Component NameMarket Segment
Planning
DescriptionTo analyze segments
and derive targets
Component NameMarket Segment
Planning
DescriptionTo analyze segments
and derive targets
Component NameBusiness Strategy
DescriptionDefine business
strategy
Component NameBusiness Strategy
DescriptionDefine business
strategy
Component NameSegment Tracking
DescriptionTrack target segments
Component NameSegment Tracking
DescriptionTrack target segments
Business Plans
Tracking Models & Targets
Market Events
From “Product
Management”business
component
Product Portfolio Updates
Product Portfolio Updates
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A Business Component Map is a tabular view of the business components in scope.
Contact Routing
General LedgerDocument Management
Customer DialogMarketing
CampaignsProduct Administration
Credit Assessment
Product ManagementStaff Appraisals
Customer AccountsProduct FulfillmentSales
Credit Administration
Product Directory
Staff Administration
Executing
Compliance
ReconciliationFulfillment Planning
Sales Management
Relationship Management
Sector Management
Business Unit Tracking
Controlling
Portfolio PlanningFulfillment PlanningSales PlanningAccount
PlanningSector PlanningBusiness PlanningDirecting
Financial Control and Accounting
Product Fulfillment
Servicing and Sales
Relationship Management
New Business Development
Business Administration
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Step 2: Define a Service Model • Identify services based on business components• Make decisions based on architectural criteria
Step 3: Implement a Service Architecture• Develop a service-oriented architecture to support
the componentized business
Step 1: Break down your business into components• Decide what is strategically important• Prioritize and scope your transformation projectsCBM
Strategy
SOA Realization
ServiceModeling
Business-Aligned IT Architecture
Building an Architecture
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Service Oriented Architecture (SOA)Flexible connectivity:
Represent application or resource as a service with a standardized interfaceEnable exchange of structured information(messages, documents, ‘business objects’)Mediate message exchange through a connectivity layer (enterprise service bus)Provide on-ramps to the bus for legacy application environments
Combines new and existing applications to address changing business needs
Facilitates the management of business performance, quality of service, and dynamic monitoring
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MyValueModule
Service Component Conceptual ModelModule, Import, and Export
ServiceComponentMyValue
ServiceImportCustomerInfo
ServiceExportMyValue
CustomerInfoModule
ServiceComponentCustomerInfo
ServiceExport
CustomerInfo
Web
ServiceImportStockQuote
ESB
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SOA Defining Concepts Universal Connectivity: Integrates most diverse environments, bridging protocols, languages, platforms, APIs and messaging paradigms – providing scale and scope of integration required by today’s extended enterprise
Service Orientation:Facilitates loose coupling
between software components
Incremental Integration: Start small and plug in capability to enrich your implementation as
needs dictate
Open, standards-based:Open APIs and protocols support the interoperability and substitution of middleware from multiple vendors
Event Orientation:Decouples applications that publish business events from
subscribing applications
Flexibility:A variety of options
for persistence, reliability, security,
availability...Deploy where
required, manage centrally
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Existing Resources
A SOA has Multiple Layers
Service Modeling
Services
Business Process
Components
QoS, Security, M
anagement &
Monitoring (Infrastructure Service)
Process Choreography
Simple and Composite Services
Enterprise Components
PackageCustom
ApplicationCustom Application
Package
ServiceC
onsumer
ServiceP
rovider
Integration Architecture
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Model Driven Architecture (MDA)
Build high-level modelsExpressed in domain concepts
Generate platform-specific codeInto specified architectures
Using automated toolsBased on standards
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Domain modelCaptures business knowledge
Implementation profilePlatformTechnology decisions
Design modelCaptures implementation decisionsTranslator incorporates platform knowledge
MDA Approach
Domainmodel
Designmodel
Code
Implementationprofile
Programminglanguage
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MDA Requires
Domain modelsUML or domain-specific language (DSL)
Architecture frameworksMake assumptions about infrastructureUse them to remove details from models
Automated toolsModeling toolsTranslators
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Domain Models
Syntax and semantics for a particular purposeCapture business-level contentMore intuitive syntax
Reduce mindless repetitionPredefined control and data patternsEliminate repetitious control specification
Two approaches:UML ProfileDomain specific language (DSL)
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Architecture
Decomposition into subsystems
Topology
Interaction rules
Data formats
Resource management
Hooks for future extensions
Scaffolding for testing
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Architecture FrameworkFramework = reusable architecture pattern
Includes:Skeleton execution environmentPredefined subsystems and topologyInteraction and data rules, formats, interfacesAttachment points for plug-insComponent libraries of useful functionalitySample applications
Integrated development environments (IDE)Eclipse, .NET, J2EE
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Framework Advantages
Enable domain specific languages (DSL) to optimize repeated patterns
Ensure consistency
Excellent for incremental design
Enforce design trade-offs
Supports static and dynamic analysis
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Automated Tools
Modeling toolsOrganize large modelsCheck correctnessEnable teamwork
TranslatorsApply patternsGenerate repetitious codeKey to MDA
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Iterative Development
start
waterfall process
target
iteration
Iterative process
failure
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Iteration
Common baselineNo divergent versions or schedules
Specific goalsSet priorities by adjusting goals
Specific deadlineAll iterations about the same length
At the end of an iteration:Check in everythingBuild an executable systemTest and examine itReevaluate priorities
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Iterative Development Process
Series of iterations allows mid-course corrections
Executable releases permit constant evaluation
Attacking problems early reduces risk
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Summary
Business is becoming distributedComponent Business Model
IT architecture must support business modelsService Oriented Architecture
Automate business-to-architecture mappingModel Driven Architecture
Avoid monolithic developmentIterative development process