1
Software architecture adjustments for a changing business
2
Business is Changing
3
Observations
• Business:• Outsourcing Business Processes• Outsourcing IT• Integrating Internal and External Processes• Focus on Core Competence and Compliance• Mergers and Acquisition
• IT• Architecture Innovation (SOA)• Consolidation of Applications• Focus on Integration and Flexibility• Offshore activities
4
Pressure on IT
5
The CIO ChallengePressure from various angles
Reduce IT budget
Ensure
Regulatory
compliance
Provide 360°
view of
business
Deliver new
services, faster
Lines of Business
CFO Auditors
CEO
6
Requirements
• Business Agility requires IT Flexibility
• IT Flexibility requires Flexible infrastructure
• Flexible infrastructure require SOA
• Successfull SOA requires • Standards
• Application Integration Platform
• Data Integration Platform
7
The 3 adjustments for Success
Integration and Innovation Projects
IntegrationCompetency
Center(ICC)
Approach
Long Term Blueprint
(SOA, EDA)
Architecture
Scalable and Flexible Platform
Technology
8
The Evolution of Integration
• Legacy Applications• Key applications functioned independently
• Data and application logic lumped together on isolated systems
• The mainframe era
• Integration not a priority
• ERP Applications• Core back office functionality packaged into customizable modules
• Single-vendor providing tightly coupled applications
• Integration restricted to a few applications (CRM with Financials, etc.)
• Application and Data Integration• Multiple vendors providing different critical application components
• Information assets distributed across heterogeneous systems
• Application and Data Integration become TOP priority
9
Data Integration for the Virtual Enterprise
Legacy Migration Consolidation
Synchronization Master DataManagement
Consolidated View
Single View of Business
CompositeApps
SCM
HR
Custom
PLM
CRM
ERP
In-House
Process Outsourcing: Increases Integration Complexity
Strateg
ic Valu
e of In
form
ation
Query & Reporting,Dashboards
Data Warehouse
Au
tom
atio
n o
f T
ran
sact
ion
s &
Op
erat
ion
s
Sales Force Automation
Payroll
Receivables
Other
Payables
Service Provider
10
Silo based architectures of the past
Mainframe
DB DB DB DB
CRM HR FinOE
Biz Logic
Biz Logic
11
Dependencies between systems grew
Mainframe
DB DB DB DB
CRM HR FinOE
Biz Logic
Biz Logic
12
Resulting in the Accidental Architecture
Mainframe
DB DB DB DB
CRM HR FinOE
Biz Logic
Biz Logic
13
Technology confusion
• Vendors have delivered functionality in various forms and packages to meet these Integration needs over time:
• ETL (Extract, Transform and Load)
• MOM (Message Oriented Middleware)
• EAI (Enterprise Application Integration
• B2B (Business to Business)
• Workflow
• BPM (Business Process Management)
• BAM (Business Activity Management)
• EII (Enterprise Information Integration)
• ESB (Enterprise Service Bus)
What technology or combination of technologies is right for my project?
14
Service-Oriented Architecture
• An integrated software infrastructure and design approach to expose business relevant data and application services in a loosely coupled, standards based form. SOA - • Leverages web computing standards (XML, SOAP, etc.)
• Promotes wrap and reuse of existing IT assets
• Metadata-driven to maximize portability
15
Two Types of Integration
• Enterprises have two major type of IT assets they need to integrate
• These are two different integration problems which require different technologies & approaches
Business Logic Data
Application & Process
IntegrationData Integration
16
ConsolidateCustomerSystems
Outsource HR
Integrate New Merger
Upgrade SalesComp
Systems
Integrate withHewitt
Complex integration environment increases costs and impedes flexibility
UpgradeRisk Mgmt
System
Migrate LegacyFinance App.
ConsolidateRisk Systems
Integrate Customer
Analytics DataIT Initiatives
Requirements for Accessing, Integrating & Moving Data
BusinessInitiatives
Reduce Lending
Risk & Fraud
Increase Customer Cross-
sell & LoyaltyRegulatoryCompliance
MainframeApplications Databases XMLFlat filesMessages Unstructured Data
Enterprise Data
EAIApp
vendor tool FTP
SQL Scripting
Data Integration
Custom code
Hand coding
BI ETL Tool
SQL Scripting
EAIApp
vendor tool
SQL Scripting Custom
code
BI ETL Tool
• Incomplete, inconsistent view of data• Costly, one-off development efforts• High maintenance & administration costs• No reuse of code or skill sets• Brittle infrastructure hard to change
17
The Importance of Data Integration in SOA
• “Companies must build a solid data services layer; Otherwise SOA benefits will NEVER be realized”
• “The vast majority of companies must have a data integration strategy to accommodate change.”
• “SOA’s success is contingent on a data integration strategy”
• “SOA will fail if long-standing data quality, data redundancy and semantic inconsistency issues are not addressed.”
• “Organizations must address data integration issues during their SOA implementations.”
AMR Research “Data Integration, Foundation for SOA”, September 2005
Gartner “Data Integration Is Key to Successful Service-Oriented Architecture Implementations”, October 2005
• “In utilizing service-oriented architectures (SOA) for integration projects, IT departments should seek to avoid two commonly made mistakes: giving insufficient attention to how data will flow over the underlying architecture, and insufficient use of metadata.”
Nucleus Research “SOA: The Two Biggest Mistakes to Avoid”, November 2005
18
Service-Oriented Enterprise Integration
Mainframe
DB DB DBBiz Logic Fin SAP
BackendIT
Assets
Data and Metadata Integration(Data Access, Profiling, Cleansing, Aggregation, Transformation)
Application Integration(Access, Reliable Messaging, Transactions)
Business Processes(orchestration)
Portal
Reusable Data Services(complex transformation, data quality check)
Reusable Application Services(pub/sub channels, transaction monitor)
19
Conclusion
• Business forces IT to innovate
• Outsourcing increases complexity
• Adjustments in IT focus on SOA
• Regulations will push IT even more