1. Service Oriented Enterprises Dr. Setrag Khoshafian VP of BPM Technology Pegasystems Inc. www.pega.com

2. 2  Pegasystems 2006

3. 3 What are Service Oriented Enterprises (SOEs)? You have a technology perspective:  Loosely couple applications, trading partners, and organizations Invoke via service calls.  Services involved in processes with human participants Provides even greater value than the sum of component services.

4. 4  Pegasystems 2006 What are SOEs? You also have a cultural perspective:  Each party sees herself as a service provider as well as a service consumer  Focus on serving various communities: Customers Shareholders Trading Partners Employees Government

5. 5  Pegasystems 2006 Community Customers Shareholders Partners Government Employees SOE Service Oriented Enterprises (SOE)

6. 6  Pegasystems 2006 SOE Goal Align Business and IT ITBusiness SOA Technology Alone Will Not Do It

7. 7  Pegasystems 2006 Sales Service Operations Compliance Partners Management Goals Sales Service Operations Compliance Partners Systems Sales Service Operations Compliance Partners Sales Service Operations Compliance Partners The SOE Challenge…Execution Gaps! Management Goals Systems

8. 8  Pegasystems 2006 Business Changes Worsen Execution Gaps Sales Service Operations Compliance Partners Management Goals Sales Service Operations Compliance Partners Systems The SOE Challenge…Execution Gaps!

9. 9  Pegasystems 2006 Solution: SOE Architecture SOE Architecture= Performance Management + Business Process Management + IT SOA Architecture (ESB)

10. 10  Pegasystems 2006 The Service Oriented Enterprise IT Service Infrastructure Service Oriented Architecture IT Service Infrastructure IT

11. 11  Pegasystems 2006 Service Infrastructure Loose Coupling Standards Based (WS-*) Discovery Service Composition Enterprise Service Bus

12. 12  Pegasystems 2006 Loose Coupling isolated from the details of the service’s implementation language, platform, location, or other details Internet GET/POST Request HTML Response Server (s) Internet SOAP Request SOAP Response Server (s) Client

13. 13  Pegasystems 2006 Service Transport: HTTP/HTTPS Remote Service Request/Response: SOAP Service Description: WSDL Service Transactions: WS-Transaction/WS-Coordination Quality of Service: WS-Security, WS-ReliableMessaging Business Processes and Rules: BPMN, WS-BPEL, WS-CDL Service Management: WSDM Service Content and Portals: WSRP

14. 14  Pegasystems 2006 Capabilities and Features of an ESB Message Transformation Protocol Transformation Message Routing Security Transaction Orchestration Service Registry Consumer Services requests use a transport protocol (e.g. JMS) different from the protocol (e.g. HTTP) of the Provider Transform Provider message format to Consumer message format and vice versa (XML to ASCII, XML to XML, etc.) Content based routing of Consumer messages to appropriate Provider & Vice Versa. Support for rules based routing Support for WS-Security, SAML, encryption, Authentication and Authorization Support for WS-AtomicTransaction, WS-Coordination, WS-BusinessActivity Micro-Flow Orchestration & Choreography

15. 15  Pegasystems 2006 The Service Oriented Enterprise Enterprise Performance Management Service Performance Business

16. 16  Pegasystems 2006 Strategic Methodology Financial Internal Learning CustomerVision Enterprise Performance Management Business Activity Monitoring Business Intelligence Business Process Management System Enterprise Service Bus CI Methodology

17. 17  Pegasystems 2006 Enterprise Performance Management Service Performance The Service Oriented Enterprise IT Business Service Oriented Enterprises, Dr. Khoshafian Service Oriented Architecture IT Service Infrastructure Business Process Management Suite Service Integration

18. 18  Pegasystems 2006 BPM Suite Workflow BPM BPM Suite Modeling and Simulation Business Rules Business Activity Monitoring Solution Frameworks SOA support Alignment of business & IT Integration: System Participants Trading Partner Participants Process Portals Organizational Model Rich Process Data Model Human Participants Flow automation Flow status management Document and Content Centric Workflow Reference Architecture Evolution of BPM Suites

19. 19  Pegasystems 2006 Enterprise Policies and Procedures Policies Procedure Policies Procedure Modeled Policies and Procedures Strategy and Vision Models Process Models Business Policy Models (business rules) Information & Integration Model Organization Model Modeled And Automated Policies and Procedures Modeled And Automated Policies and Procedures

20. 20  Pegasystems 2006 BPM Suite BusinessProcess Monitoring & Analytics BusinessRules Workflow SolutionFrameworks Enterprise Application Integration Business To Business Integration

21. 21  Pegasystems 2006 System/Partner and Human Participants Orchestrate BuyerSellerShipper Choreography SellerBuyer Shipper

22. 22  Pegasystems 2006 RemitterBeneficiaryBeneficiary Bank (Using Smart Investigate) Remitting Bank  Parse message  Check for duplicate cases  Create case & route  Attach message  Locate & attach payment transaction  Evaluate transaction  Status=Complete?  STP?  Look up customer record  Issue notification of assignment  Contact remitting bank  Schedule chasers  Assign SLA  Parse message  Check for duplicate cases  Create case & route  Attach message  Locate & attach payment transaction  Evaluate transaction  Status=Complete?  STP?  Look up customer record  Issue notification of assignment  Contact remitting bank  Schedule chasers  Assign SLA Unable to Apply1 Notification of Assignment3 Unable to Apply2 4 Notification of Assignment5  Update case  Attach message  Issue notification of assignment  Update case  Attach message  Issue notification of assignment Notification of Assignment6  Send chaser Case Status Request7 Case Status Response8  Update case  Attach message  Update case  Attach message Resolution of Investigation9 Resolution of Investigation10  Resolve case  Attach message  Send resolution message  Levy service fee  Resolve case  Attach message  Send resolution message  Levy service fee Resolution of Investigation11 STP Unable to Apply Example of SWIFTNet E&I Straight-Through Process

23. 23  Pegasystems 2006 BPM Suite BusinessProcess Monitoring & Analytics Business Rules Workflow SolutionFrameworks EnterpriseApplicationIntegration Business To BusinessIntegration

24. 24  Pegasystems 2006 Example IF Dispute Amount is less than $51; AND Transaction is not disputed as a fraudulent transaction; AND The customer has disputed less than two transactions this year; Write-Off? Yes No Selection: World MasterCard VIP Customer THEN Fully credit the customer without even initiating the dispute i.e. Write-off the transaction.

25. 25  Pegasystems 2006 Tasks Participants Rules

26. 26  Pegasystems 2006 BPM Suite BusinessProcess Monitoring & Analytics BusinessRules Workflow Solution Frameworks EnterpriseApplicationIntegration Business To BusinessIntegration

27. 27  Pegasystems 2006 Healthcare Member Extensions Customer Process Management Framework BPM Solution Development Customer Processes and Rules Customer Profile Customer Entitlement Cross Sell Customer Dispute Agreement Renewals Customer Interaction Insurance Customer Relationship Banking Customer Relationship Enterprise Application Integration Business To Business Integration Business Process Monitoring & Analytics Business Rules Workflow Solution Frameworks BPM Suite Greater speed to market and use of best practices enable faster achievement of competitive advantage

28. 28  Pegasystems 2006 BPM Suite Business Process Monitoring & Analytics BusinessRules Workflow SolutionFrameworks EnterpriseApplicationIntegration Business To BusinessIntegration

29. 29  Pegasystems 2006 Enterprise Service Bus Enterprise Application Integration Business To Business Integration Business Process Monitoring & Analytics Business Rules Workflow Solution Frameworks BPM Suite Analytic Measures Business Activity Monitoring Business Intelligence Strategic Methodology Example: Balanced Scorecard

30. 30  Pegasystems 2006 Link Executing Processes To Strategies  Connecting measurable objectives to executing processes and rules, and continuously improve them – in real time. Customer Satisfaction Index

31. 31  Pegasystems 2006 Strategic Methodology Financial Internal Learning CustomerVision Enterprise Performance Management Business Activity Monitoring Business Intelligence Business Process Management System Enterprise Service Bus CI Methodology

32. 32  Pegasystems 2006 Continuous Improvement LifeCycle Agents Six Sigma Black Belt Process Architect Business Analyst

33. 33  Pegasystems 2006 BPMS ROI Expenses IT Business Staffing Revenue New Products New Processes Customer Retention Up Sell Cross Sell M & A

34. 34  Pegasystems 2006 High Level StructuredProgramming Object Oriented Programming BPMS X2 to X3 X5 to X10 X2 to > X10 Assembly Productivity Gains

35. 35  Pegasystems 2006 Service Operations Compliance Management Goals Service Operations Compliance Systems Sales Service Operations Compliance Partners Sales Service Operations Compliance Partners BPM Suites for the SOE Challenge… Management Goals Systems Business Process Management Suite Service Integration

36. 36  Pegasystems 2006 Local Community Customers Shareholders Partners Government Employees SOE Competitive Advantages for all Communities

37. 37  Pegasystems 2006 Conclusion SOE can serve their communities through:  Directly Capturing requirements: Executable processes and rules  Identify measurable KPIs: strategic methodology  Tying these KPIs to modeled and executing business processes and policies  Continuously monitoring and improving the implementation to meet the needs of the communities … while leveraging the underlying IT SOA infrastructure