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The Challenges of Service Evolution The Challenges of Service Evolution THE CHALLENGES OF SERVICE EVOLUTION Mike P. Papazoglou Services Science Institute.

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Presentation on theme: "The Challenges of Service Evolution The Challenges of Service Evolution THE CHALLENGES OF SERVICE EVOLUTION Mike P. Papazoglou Services Science Institute."— Presentation transcript:

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2 The Challenges of Service Evolution The Challenges of Service Evolution THE CHALLENGES OF SERVICE EVOLUTION Mike P. Papazoglou Services Science Institute Tilburg University, The Netherlands email: mikep@uvt.nl http://infolab.uvt.nl/people/mikep

3 2 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

4 WHAT IS MEANT BY SERVICES? All economic activity whose output is not a physical product or construction (Brian et al, 1987) All economic activity whose output is not a physical product or construction (Brian et al, 1987) An activity or series of activities… provided as solution to customer problems (Gronroos, 1990) An activity or series of activities… provided as solution to customer problems (Gronroos, 1990) A service is all intangible effect that is the result of a client interaction that creates & captures value (anonymous) A service is all intangible effect that is the result of a client interaction that creates & captures value (anonymous) In economics and marketing, a service is the non-material equivalent of a good (Wikipedia, 2006) In economics and marketing, a service is the non-material equivalent of a good (Wikipedia, 2006) Not only are enterprises increasingly offering services instead of products, they are managing themselves as a portfolio of internal services, in many cases deciding which services they perform best, & which could be handled better by an external specialist partner. Not only are enterprises increasingly offering services instead of products, they are managing themselves as a portfolio of internal services, in many cases deciding which services they perform best, & which could be handled better by an external specialist partner. 3 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

5 SERVICE INNOVATION IS INHERENTLY MULTI-DISCIPLINARY 4 Services depend critically on people, technology, & co-production of value Services depend critically on people, technology, & co-production of value People work together with technology & with organisations to provide/create value for clients People work together with technology & with organisations to provide/create value for clients A service system is a complex socio-techno-economic system A service system is a complex socio-techno-economic system Business & Management Business Innovation Science & Engineering Technology Innovation Courtesy of Jim Spohrer, Director, Almaden Service Research Economics & Markets Demand Innovation Social & Cognitive Sciences Social Innovation SERVICE- ORIENTED COMPUTING Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

6 SERVICE AS A SYSTEM OF RELATIONSHIPS 5 A. Service Provider -Individual -Organisation A. Service Provider -Individual -Organisation C. Service Target: The reality to be transformed or operated on by A, for the sake of B -People, dimensions of -Business, dimensions of -Products & technology artifacts -Information, codified knowledge C. Service Target: The reality to be transformed or operated on by A, for the sake of B -People, dimensions of -Business, dimensions of -Products & technology artifacts -Information, codified knowledge B. Service Client - Individual - Organisation - Public or Private B. Service Client - Individual - Organisation - Public or Private Forms of Ownership Relationship (B on C) Forms of Service Relationship (A & B co-create value) Forms of Responsibility Relationship (A on C) Forms of Service Interventions (A on C, B on C) Graphics based on J. Gadrey 2002 The misuse of productivity concepts in services: lessons from a comparison between France and the United States. Productivity, Innovation and Knowledge in Services : New Economic and Socio-Economic Approaches. The changing landscape of business can be described, for the purpose of increasing service innovation, as a very large global service system. Made up of: MMMMany smaller service systems (individuals, enterprises, government agencies) interacting via value propositions to exchange service for service & to co-create value during the process. Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

7 WHAT ARE SOFTWARE SERVICES?  Software services are self-contained, platform-agnostic computational elements that support rapid, low-cost and easy composition of loosely coupled distributed software apps.  Services are described, published, discovered & can be assembled to create complex service-based systems and applications. – They help integrate applications not written with the intent to be easily integrated with other applications & define architectures to build new functionality while integrating existing application functionality. define architectures to build new functionality while integrating existing application functionality.  Service-based apps are developed as independent sets of interacting services offering well-defined interfaces to their potential users using the principle of loose coupling. 6 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

8  Web services share the characteristics of more general services: – expose their features programmatically over the Internet (or intra-net) via standard XML-based languages & protocols, and are implemented via a self-describing interface based on open Internet standards.  Web services can vary in function: – from simple requests, e.g., credit checking and authorization, pricing enquiries, inventory status checking, or a weather report. – to complete business applications that access & combine info. from multiple sources, e.g., an insurance brokering system, an insurance liability computation, a package tracking system, etc. 7 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 WHAT ARE SOFTWARE SERVICES? (cntd)

9 Typical Example of Service-based Application Michael P. Papazoglou © “Service Science, Technologies and Architectures Workshop”, Sydney, 12-13 May 2008 8 OEM inventory confirmation ship notice Semi-Public (abstract) process Public (abstract) process Private (executable) processes Suppliers Distributors Logistics customer invoice forecast-ship notice Contract manufacturers Contract manufacturers payment order

10 9 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

11 WHAT IS SERVICE EVOLUTION? Service evolution is the continuous process of development of a service thro’ a series of consistent and unambiguous changes. Service evolution is the continuous process of development of a service thro’ a series of consistent and unambiguous changes. Service evolution is expressed thro’ the creation & decommission of different versions during its lifetime. Service evolution is expressed thro’ the creation & decommission of different versions during its lifetime. Versions must be aligned with each other in a way that would allow a service designer to track service modifications & their effects on the service. Versions must be aligned with each other in a way that would allow a service designer to track service modifications & their effects on the service. A robust versioning strategy is needed to support multiple versions of services. A robust versioning strategy is needed to support multiple versions of services. 10 Miichael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

12 SERVICE EVOLUTION DRIVERS & TRIGGERS 11 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 Technologicaladvancements Cross-organizational service networks New market opportunities Regulation Corporate & business strategy decisions => Redesign of business models models Corporate & business strategy decisions => Redesign of business models models Globalization Innovation in products & processes Extended products Continuous Need for Service Evolution! Continuous Need for Service Evolution!

13 Change Content SERVICE EVOLUTION CONTEXT 12 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 Change Process Develop change methodology Build team & build case for change Examine architecture and infrastructure Define new business process Select and test new technology Define new roles and organization structures Pilot and roll out new business process Pilot and roll out new technology Pilot and roll out new roles and organization structures Implement continuous improvement Implement ongoing support Install new performance measures aimed at new structure Organization & people ServiceTechnology BusinessProcess Develop and Implement Change Sustain Improved Performanc e Compelling Case and Strategy for Change Design Change Program ChangeContext Adapted from Gartner, “Change Management”

14 EVOLUTION OF SERVICES: REQUIREMENTS Routine process changes usually lead to possible reorganization and realignment of many businesses processes and increase the propensity for error. Routine process changes usually lead to possible reorganization and realignment of many businesses processes and increase the propensity for error. Eliminating spurious results and inconsistencies that occur due to uncontrolled changes is necessary condition for services to evolve gracefully, ensure stability & handle variability. Eliminating spurious results and inconsistencies that occur due to uncontrolled changes is necessary condition for services to evolve gracefully, ensure stability & handle variability.  Changes must be applied in a controlled fashion to minimize inconsistencies & disruptions by guaranteeing seamless interoperation of services that may cross enterprise boundaries when they undergo changes. 13 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

15 Service changes can be classified wrt their nature as: Structural changes (signature & interfaces) Structural changes (signature & interfaces) Business protocol changes (external messaging behaviour of services) Business protocol changes (external messaging behaviour of services) Policy induced changes (changes in policy assertions, business rules, & regulatory compliance) Policy induced changes (changes in policy assertions, business rules, & regulatory compliance) Operational behaviour changes (effects of changing the meaning & behaviour of service operations – operational semantics) Operational behaviour changes (effects of changing the meaning & behaviour of service operations – operational semantics) 14 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 CLASSIFICATION OF SERVICE CHANGES - I

16 CLASSIFICATION OF SERVICE CHANGES - II Service changes can be classified wrt their effects as: Shallow changes: small-scale incremental changes localized to a service or are restricted to the clients of that service. Shallow changes: small-scale incremental changes localized to a service or are restricted to the clients of that service.  structural level and business protocol changes. Deep changes: large-scale transformational changes cascading beyond the clients of a service possibly to entire value-chain (end-to-end processes) - clients of affected services e.g., outsourcers or suppliers. Deep changes: large-scale transformational changes cascading beyond the clients of a service possibly to entire value-chain (end-to-end processes) - clients of affected services e.g., outsourcers or suppliers.  operational behaviour, policy & regulatory compliance induced changes. 15 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

17 16 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

18 SHALLOW SERVICE CHANGES 17 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 adapter Client Databases Legacy Applications ERP CRM CRM Content r Web Service Web Service Container u1u1u1u1 Databases Legacy Applications ERP CRM CRM Content r Web Service Web Service Container Provider v1v1 v2v2 contract

19 18 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

20 Service compatibility: allows message exchanges between a service provider & a service client despite service changes that may occur to their definitions. Service compatibility: allows message exchanges between a service provider & a service client despite service changes that may occur to their definitions. Version compatibility: when we can introduce a new version of either a provider or client of service messages without changing the other. Version compatibility: when we can introduce a new version of either a provider or client of service messages without changing the other.  Backward compatibility: when a new version of a message client is introduced the message providers are unaffected.  Forward compatibility: when a new version of a message provider is introduced the message clients who are only aware of the original version are unaffected. 19 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 SHALLOW SERVICE CHANGES: SERVICE COMPATIBILITY

21 SERVICE COMPLIANCE: CONTRACTS Backward-compatibility misses the possibility that a new version of a client may add a new feature where the client needs to reject messages that might have previously been acceptable by the previous version. Backward-compatibility misses the possibility that a new version of a client may add a new feature where the client needs to reject messages that might have previously been acceptable by the previous version. ➭ Need a contract to formalize the details of a service in a way that it meets the mutual understandings & expectations of both the service provider & the service client. A contract specifies:  Functional requirements.  Non-functional requirements.  Rules of engagement (policies). 20 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

22 SERVICE CONFORMANCE In addition to the notion of contracts service evolution requires dealing with service arguments and return values. In addition to the notion of contracts service evolution requires dealing with service arguments and return values. Service conformance is when a service can substitute an older version without causing any problems to its service clients. Service conformance is when a service can substitute an older version without causing any problems to its service clients.  Argument contra-variance: if we redefine the argument of a service the new result type must always be an extension (generalization) of the original one.  Result co-variance: if we redefine the result of a service the new result type must always be a restriction (specialization) of the original one. 21 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

23 22 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

24 BUSINESS PROTOCOL EVOLUTION Business protocols evolve over time due to the development of new applications, new business strategies, changing compliance, QoS requirements. Business protocols evolve over time due to the development of new applications, new business strategies, changing compliance, QoS requirements. Static protocol evolution: a set of change operations to allow the incremental modification of an existing protocol without the need of redefining it from scratch. Static protocol evolution: a set of change operations to allow the incremental modification of an existing protocol without the need of redefining it from scratch. Dynamic protocol evolution: changing a long running protocol in the midst of its execution. Dynamic protocol evolution: changing a long running protocol in the midst of its execution. ➭ requires a protocol to migrate active instances running under a old protocol version to meet the new protocol requirements. 23 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

25 24 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

26 REGULATORY COMPLIANCE Compliance regulations, such as HIPAA, Basel II, Sarbanes-Oxley (SOX) and others require all organizations to review their business processes and ensure that they meet the compliance standards set forth in the legislation. This can include: Compliance regulations, such as HIPAA, Basel II, Sarbanes-Oxley (SOX) and others require all organizations to review their business processes and ensure that they meet the compliance standards set forth in the legislation. This can include:  Data acquisition and archival,  document management,  data security,  financial accounting practices,  shareholder reporting functions, &  to know when unusual activities occur.

27 DEEP CHANGES: COMPLIANCE TO REGULATIONS 26 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 AccountsProcessesApplicationsInfrastructure Materiality and Risk Processes generating account balances (Process, Business, Site) Applications supporting processes Infrastructure supporting applications (Data Centers, Networks, Service Platforms, Security) InboundOutbound Purchasing Order Entry Receiving Inventory Invoicing/billing Accounts payable Settlement Sales Credit Order Entry Inventory Shipping Invoicing/billing Accounts receivable Settlement Customer service common examples of processes that impact financial reporting SOX Financial Reporting puts into place requirements and penalties to ensure that companies' financial statements accurately represent their business position.

28 EXAMPLE: SOX SECTION 404 Section 404 mandates that well-defined & documented processes & controls be in place for all aspects of a company operations that affect financial reporting. Requires: Section 404 mandates that well-defined & documented processes & controls be in place for all aspects of a company operations that affect financial reporting. Requires:  Documenting of processes & internal controls (risk, control, responsibility)  Management’s evaluation of effectiveness (audits and self assessments)  Attestation by external auditor Internal control is used to deliver assurances regarding the achievement of objectives in the following categories: Internal control is used to deliver assurances regarding the achievement of objectives in the following categories:  Reliability of financial reporting  Operating efficiency and effectiveness  Compliance with applicable laws and regulations Causes a need for automation, standardization & communication of business processes throughout the enterprise & routing info. to /from the right individuals at the right time. Causes a need for automation, standardization & communication of business processes throughout the enterprise & routing info. to /from the right individuals at the right time.. 27 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

29 APPROACH TO SOX READINESS ApproachOutcomes Goals from Sarbanes- Oxley Efforts Value Added Approach – seek out operating improvements and identify best practices Avoid “process fatigue” & improve process efficiency Appropriate Control Documentation Formal management process to maintain compliance throughout organization Opportunity for ROI via improved controls Enabling TechnologyUse technology throughout organization to facilitate assessment and communication Compliance would add recurring costs  Recommend a Sound but Practical approach  Maximise what has already been achieved and is internally available  Document & evaluate business processes  Remediate & improve control systems  Anticipate upcoming Changes Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

30 THE COSO FRAMEWORK 29 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 Monitoring  Assessment of a control system’s performance over time  Combination of ongoing and separate evaluation  Management and supervisory activities  Internal audit activities Information & Communication  Pertinent information identified, captured and communicated in a timely manner  Access to internally and externally generated information  Flow of information that allows for successful control actions from instructions on responsibilities to summary of findings for management action Control Environment  Sets tone of organization, influencing control consciousness of its people  Factors include integrity, ethical values, competence, authority, responsibility, organization structure, HR policies and IT control environment  Foundation for all other components of control Control Activities  Policies/procedures that ensure management directives are carried out  Range of activities including approvals, authorizations, verifications, recommendations, performance reviews, asset security and segregation of duties Risk Assessment  Risk assessment is the identification and analysis of relevant risks to achieving the entity’s objectives – forming the basis for determining control activities COSO is a standard ICT framework providing guidance on organizational governance, business ethics, internal control, enterprise risk management, fraud, & financial reporting.

31 30 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

32 DEEP CHANGES: NON-FUNCTIONAL CHANGES Deal with non-functional changes & guarantee end- to-end consistency. Typical KPIS include: Deal with non-functional changes & guarantee end- to-end consistency. Typical KPIS include: Translate into SLAs, predict impact of KPI changes to process structure & detect KPI violations during run-time. Translate into SLAs, predict impact of KPI changes to process structure & detect KPI violations during run-time. 31 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008  Delivery performance  Fill rates  Order fulfilment  Production efficiency  Logistic costs to sales  Inventory days of supply  Quality thresholds  Service velocity  Service volumes  Transaction volumes  Cost baseline  Six - Sigma  Yield mgt  Asset turn over ratio

33 Innovation driven by an entire supply-chain may result in introducing new services: Innovation driven by an entire supply-chain may result in introducing new services:  Determine that overall KPI meets internal company KPIs  Find out which public process fragments are affected by introduction of new service(s). Innovation driven by a firm within the supply-chain which may introduce new services: Innovation driven by a firm within the supply-chain which may introduce new services:  Determine that potential change of internal KPI meets overall KPI  Find out which public process fragments are affected by introduction of new service. 32 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 DEEP CHANGES: NON-FUNCTIONAL CHANGES

34 33 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

35 Analyze impact of changes CHANGE –ORIENTED SERVICE LIFE CYCLE 34 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 Need to Evolve Decide to iterate again or transfer to new service design Determine causes Scope extend of change Identify services in-scope Collect detailed service metrics Understand Change Logic Operational Service Align Refine Define Design new service Analyze changes Determine functionality Determine changes to inter- dependent processes Determine whether KPIs are satisfied Determine compliance with regulations, business-rules Estimate costs (ROI) Change Impact Analysis Test service interfaces Define/refine interfaces & points of integration Align with other services Measure alignment with strategy Run simulation & monitor performance Broader Change Context Decide

36 PROCESS REDESIGN METHODOLOGY 35 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 UnderstandEnterpriseContextModelEnterpriseProcessesDefinePerformanceMeasuresDefineProcessGovernanceManageEnterpriseProcesses UnderstandApplicationContextAnalyzeBusinessProcessRedesignBusinessProcessImplementRedesignedProcessRoll-outRedesignedProcessExecuteProcess VariousServiceApplications AlignArchitecture Business Process Architecture Methodology Define & prioritize applications Monitor & report Process Performance (KPIs) Business Process Redesign Methodology On-goingexecution Enterprise Level Execution Level Process Level Implementation Level Level

37 LEAN SIX SIGMA FOR PROCESS MNGT 36 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008 1. DEFINE (identify core processes & sub-processes) 2. MEASURE (determine KPIs for processes) 3. ANALYZE (find KPI process gaps) 4. IMPROVE (improve processes) 5. CONTROL (integrate activities) Create ROI Sustain the Change Make it Stick Lean Six Sigma for services is a business process improvement methodology that improves process (DMAIC) quality & consistency & enables the reduction of the cost of complexity Create Possibility for Change Engage & Enable the entire Organization Implement & Sustain Process Transformation

38 SERVICE CHANGE ANALYSIS Service change analysis, focuses on the analysis, re-design or improvement of existing services. Service change analysis, focuses on the analysis, re-design or improvement of existing services.  It provides an in-depth understanding of the functionality, scope, reuse, and granularity of services that are identified for change. To analyze & assess the impact of changes an "as- is” & a "to-be" service model is used rather than applying the changes directly on operational services. To analyze & assess the impact of changes an "as- is” & a "to-be" service model is used rather than applying the changes directly on operational services. To determine the differences between the two models a gap analysis model is used. To determine the differences between the two models a gap analysis model is used.  It sets priorities & improvements & measures the impact of service changes. 37 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

39 TYPICAL PROBLEMS Service flow problems: problems with the logical Service flow problems: problems with the logical completeness of a service upgrade, problems with sequencing and duplication of activities, decision-making problems and lack of service measures. completeness of a service upgrade, problems with sequencing and duplication of activities, decision-making problems and lack of service measures. Service control problems: problems with policies and business rules and problems with external services. Service control problems: problems with policies and business rules and problems with external services. Overlapping services functionality: a service-in-scope may (partially) share identical business logic and rules with other related services. Overlapping services functionality: a service-in-scope may (partially) share identical business logic and rules with other related services. Conflicting services functionality: (including bottlenecks / constraint violation in the service value stream) Conflicting services functionality: (including bottlenecks / constraint violation in the service value stream) Service input and output problems: e.g., QoS i/p or o/p is low, and timeliness i/p or o/p problems where the needed inputs/outputs are not produced when they are needed. Service input and output problems: e.g., QoS i/p or o/p is low, and timeliness i/p or o/p problems where the needed inputs/outputs are not produced when they are needed. 38 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

40 39 OUTLINE OVERVIEW – DEFINING THE DOMAIN OVERVIEW – DEFINING THE DOMAIN SERVICE EVOLUTION SERVICE EVOLUTION SHALLOW CHANGES SHALLOW CHANGES SERVICE COMPATIBILITY & CONFORMANCE SERVICE COMPATIBILITY & CONFORMANCE BUSINESS PROTOCOL CHANGES BUSINESS PROTOCOL CHANGES DEEP CHANGES DEEP CHANGES REGULATORY COMPLIANCE REGULATORY COMPLIANCE END-TO-END NON-FUNCTIONAL CHANGES END-TO-END NON-FUNCTIONAL CHANGES CHANGE-ORIENTED SERVICE LIFECYCLE CHANGE-ORIENTED SERVICE LIFECYCLE SUMMARY SUMMARY Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

41 SUMMARY Routine process changes usually lead to possible reorganization. Changes can be: Routine process changes usually lead to possible reorganization. Changes can be: small-scale incremental & localized small-scale incremental & localized  Use of formal theories & mathematical models addresses most of the problems. large-scale transformational changes large-scale transformational changes  Structural, behavioural, regulatory & non-functional changes that affect end-to-end process constellations  Need a change-oriented life cycle  Rely on proven standard process improvement methodologies, e.g., Lean Six-Sigma 40 Michael P. Papazoglou © “Keynote: 20th International Conference on Advanced Information Systems Engineering” Montpellier, 18 June 2008

42 41 S-CUBE: SOFTWARE SERVICES AND SYSTEMS NETWORK Mike P. Papazoglou Klaus Pohl Scientific DirectorNetwork Coordinator Tilburg Univ.Univ. of Duisburg-Essen Mike P. Papazoglou Klaus Pohl Scientific DirectorNetwork Coordinator Tilburg Univ.Univ. of Duisburg-Essen www.s-cube-network.eu

43 42 S-CUBE Partner Institutes University of Duisburg-Essen Tilburg UniversityCity University London Lero INRIA MTA SZTAKI University of Crete Université Claude Bernard Lyon Universidad Politécnica de Madrid University of Stuttgart Vienna University of Technology Politecnico di Milano Consiglio Nazionale delle Ricerche (CNR) Center for Scientific and Technol. Research (FBK)


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