Carl Bate VP Enterprise Architecture, Capgemini Services Oriented Architecture What? and How? Some Thought Provokers... Carl Bate VP Enterprise Architecture, Capgemini © 2004 Capgemini - All rights reserved

Architecture and Lessons From History Introduction Services Oriented Architecture (SOA) is a great concept SOA is designed to offer significant business benefits highly relevant to today’s markets SOA is designed to increase business agility through IT reduce IT Total Cost of Ownership (TCO), and break beyond traditional organisational borders and extend reach to suppliers and consumers However, most organisations face practical issues to take advantage of the available technologies and approaches This session provides some thought provokers on how to make SOA promises a reality by focusing on two key aspects What is a Service? Architecture and Lessons From History Footer Name of File.PPT © 2004 Capgemini - All rights reserved

So, What is a “Service”? © 2004 Capgemini - All rights reserved

A “Service” is both a strategy, design and planning approach, and implementable technology So to realise SOA benefits we first need to define what a Service is as it relates to business and technology stakeholders, for example: Business Services – a design approach for business operating models combining business processes and business events, and which have defined value contracts; the what not the how Application Services – a design approach to deliver application function supporting Business Services, implemented through a variety of technology solutions and standards Web Services – a special Application Service implemented using Web Services standards for mass access, specifically to receive and return XML documents within a defined contract; pervasive standards make the difference Information Services – a design approach to deliver information to Application Services, implemented through a variety of technology solutions and standards Infrastructure Services – specialised or shared infrastructure services which support Application, Web and Information services Agile design and implementation starts with clearly defined definitions of Services our Stakeholders at all levels can work with (e.g.a business with 2 years of Web services investment primarily with a technology focus – now becoming opaque to business analysis and experienced software engineers) Footer Name of File.PPT © 2004 Capgemini - All rights reserved

SOA benefits come from thinking beyond Web Services alone Visualise your business operating model and IT landscape as Services between consumers and suppliers value contracts value contracts value contracts SOA benefits come from thinking beyond Web Services alone Footer Name of File.PPT © 2004 Capgemini - All rights reserved

For all types of Services there are common leading practices to deliver the benefits of SOA Whatever type of Service we are designing and implementing, certain characteristics help us realise SOA benefits, for example: defining discrete value – measurable and managable as a business and IT asset; something we can have a value contract with loosely coupled and highly cohesive – agile and maintainable; isolating change, but fine vs coarse grain is a real challenge based on pervasive standards – highly accessible to humans and machines non-functional (how well?) definition and management – delivering quality of service transparent to business analysis – propensity to support “top decile” operating models and processes re-use – the mindset and execution to share services virtualisation – separation of application and infrastructure services to reduce fixed asset costs and increase IT responsiveness to demand Leading practices such as these help reduce enterprise complexity into Service simplicity (e.g. a business with c.500+ Web services designed to deliver integration but end-end changes becoming more complex to deliver than with legacy due to duplication of business logic and lack of adopting of leading architecture practices) Footer Name of File.PPT © 2004 Capgemini - All rights reserved

An Enterprise Services Vision and Roadmap is essential to evolve toward SOA effectively Portals Mobility Agents and Process Fitness Optimisation Next Generation Business Intelligence Realtime & Event Driven Enterprise Next Generation ERP Without an Enterprise Services Vision and Roadmap, today’s Services can become tomorrow’s silos Application replatforming Next Generation EAI Data Warehousing New Core Application Infrastructure Master Data Management Our whole approach is based on the Services Architecture Framework, our own unique (and copyrighted) reference architecture. This separates the different service layers and enables us to deal with them on a standalone basis. Once every layer has been fully implemented you will have a true service-oriented approach to architecture in place across the whole enterprise. It has to be stressed again that by treating the architectural landscape as a series of interconnecting layers, it is possible to take an evolutionary approach to implementation. Note that the Adaptive It architectures set out in graphic fashion by many of our main technology partners have a close family resemblance to our own architecture framework. The difference is that we define the framework in service terms and look at the actions necessary to deliver IT functionality to users as services. This is, though compatible with the vision of, for example, HP, Oracle, Microsoft and others, also very different in key respects. It reflects our view of IT as a set of services rather than simple resources and functions. This is also the key to delivering performance improvements fast and efficiently to users. Legacy Stabilisation & Retirement Windows and Open Source Infrastructure consolidation / grid / utility computing Identity Management Capgemini’s Services Architecture Framework © Footer Name of File.PPT © 2004 Capgemini - All rights reserved

1. Summary – What is a Service? Distinguish between SOA as an architecture and design approach and the standards and technologies used to implement solutions Create a definition of “What is a Service?” for business and technology specialists to enable stakeholders to work effectively to design, deliver and manage SOA solutions Whatever type of Service it is, keep leading practice characteristics of what makes a “good” Service front of mind, e.g. too fine versus too coarse grained Services mixing up technology and business needs in a single Service Define an Enterprise Services Vision and Roadmap across all business and technology aspects make it real by tackling cross-enterprise processes, e.g. procure to pay, order to cash Most technology we invest in today has elements of SOA - defining what Services mean to our external and internal stakeholders is now a critical success factor for every IT function Footer Name of File.PPT © 2004 Capgemini - All rights reserved

Architecture and Learning From History “Why, in this field apparently more than almost any other, does there seem to be no ability to learn from history?" G. Robinson, “The Challenges of Complex IT Projects”, BCS © 2004 Capgemini - All rights reserved

Some context - What is the business perception of IT? Despite best intentions, we find IT is often perceived by organisations as being expensive not joined up with business strategy and operations unresponsive to the changing needs of business opaque as an asset, both in terms of financial cost and value, and the capability the asset delivers to the business not living up to its promises, and getting worse Further, the business perceives that when projects are undertaken to implement business change, they are likely to cost more and deliver less value than expected the return on investment and value for money from IT is relatively poor Unresponsiveness and the effectiveness of IT is today seen as a critical Executive issue efficiency and cost pressures are rising This perception has formed despite our continual strive for better, faster and cheaper Footer Name of File.PPT © 2004 Capgemini - All rights reserved

How has this perception been formed? Most business applications have been implemented on a project by project basis for specific purposes Project benefits and success have been measured on the specific project cost, value and time to market without measuring the enterprise or the long term cost and value IT has not been able to articulate the consequences of this short term, project specific approach to business leadership Average 25% of total IT budget on project investment, 75% on BAU operations The business has selected the “wrong” projects, partly as a result of a lack of clear cost drivers and benefits from IT This behaviour has been repeated for the last 30-40 years; we find the “average” business application age c.17 years “IT Strategy” has failed to address the issue (“we’ve got everything”) Technology innovation has tended to deliver specific benefits in the short term, but a long term trend of making things worse e.g. client/server, 4GL, CRM/FET/SCM, Business Intelligence, EAI, Web today have all tended to increase complexity e.g. Web services, mobility, next generation ERP, EAI+, BI, MDM, utility and grid tomorrow? The SOA promise is so compelling it now forms part of most organisations IT strategies, but why do we think this time we will deliver benefits and not significantly add to cost and complexity? Footer Name of File.PPT © 2004 Capgemini - All rights reserved

Business leaders cite 2 core issues to project and TCO dissatisfaction Translating Strategy into Execution Executives focus the blame on poor scoping and sizing – the core issue being translating business and IT strategy into project shaping Governing the project during its lifecycle Many issues are caused during project execution – the core issue being governance during the execute cycle Source: Forrester, “How Companies Govern Their IT Spending”, 2003 Footer Name of File.PPT © 2004 Capgemini - All rights reserved

All organisations face a vision and realisation challenge! "If I was a managing director trained in law or accountancy I wouldn’t ask an engineer to build a 1,000 metre long concrete beam suspended at one end (only) because I know it can’t be done, I have a physical perspective about it. With software (applications), it’s never like that. We don’t have any underlying feel for whether something is even feasible" "It is extremely difficult to represent a specification of what you are trying to do in a precise way – even, I suspect, twins nurtured in exactly the same way would put different interpretations on the document" L. Hatton & J. Millar, “The Challenges of Complex IT Projects” - the report of a working group from The Royal Academy of Engineering and The British Computer Society, April 2004 Footer Name of File.PPT © 2004 Capgemini - All rights reserved

Compounded by the challenges of alignment of business process, organisation and IT! Consider today how you organise the following specific aspects of design and operation both for a single solution and for your enterprise to most effectively deliver your business goals... Business strategy (e.g. PowerPoint and Word) Budget and business case (e.g. Excel) Business operating model (e.g. PowerPoint and Word) IT strategy, standards and operating model (e.g. Word) Business process maps (e.g. PowerPoint swim lanes, package specific process maps, EAI specific process configuration, BPEL Web Services process choreography) Business requirements and functional specifications (e.g. Word) System specifications (e.g. package specific configuration tools, UML use cases, UML data flows, UML entity relationship diagrams, Word integration adapter specifications) Technical specifications (e.g. Word) Component specifications (e.g. platform specific service and class models) Infrastructure topology (e.g. Visio) Service level requirements (e.g. Word) Security policy (e.g. Word) Systems management requirements (e.g. Word) etc... Footer Name of File.PPT © 2004 Capgemini - All rights reserved

A mature Architecture approach helps vision and realisation We find many organisations do not have a consistent point of view “Architecture is the structure of business and IT components, their interrelationships, and the principles and guidelines governing their design and evolution over time” (Open Group) Consider how many different business / IT design deliverables we have for a single application, and how they inter-relate! Principles & Guidelines Tool Support Answers the question Why? What? How? With What? Business Services Processes Operating Model Information Data Flows Sources Sinks Message Formats Entities Relationships Application Specifications Functional Infrastructure Characteristics Service and Distribution Specifications and Technical Topology e.g. Efficiency, Effectiveness, TCO Governance Security Contextual Information/ Knowledge System Conceptual Logical Physical & Application Components Non-functional Footer Name of File.PPT © 2004 Capgemini - All rights reserved

3 core aspects to making Architecture real Architecture Definition, defining how requirements are developed and integrated into the Services Architecture framework. Architecture Governance, controlling how services are managed over time against organisational priorities, principles and standards Support, controlling how the architecture is stored, shared and maintained, how performance data is collected and how optimisation is carried out Category Process Areas Architecture Definition Architecture Framework Architecture Context Service Model Development Component Model Development Architectural Impact Management Verification Validation Architecture Governance Roadmap Development Project Design Oversight Supplier and Product Standards Enterprise Architecture Roadmap Centres of Excellence Technology Risk Management Quantitative Architecture Governance Support Configuration Management Process and Product Quality Assurance Measurement and Analysis Causal Analysis and Resolution Decision Analysis and Resolution Organisational Environment for Integration Footer Name of File.PPT © 2004 Capgemini - All rights reserved

Application–enabled reengineering Competitive Advantage A mature Architecture capability helps business embrace SOA and face up to what they do that’s “different” and what they do that’s “common” Balancing four forces helps becomes key A B C D Business Processes Applications Data Infrastructure Common/Shared “Big” Environment SOA Environment “Different” “Common” Application–enabled reengineering Competitive Advantage Value to Customer Commonality Competitive Advantage Process Best Practice Footer Name of File.PPT © 2004 Capgemini - All rights reserved

Where do the benefits of Architecture come from? Most organisations do “Strategy & Architecture” today, but to deliver SOA benefits, the Enterprise Architecture and Solution Architecture approach needs to provide real financial visibility of IT assets and the value they generate articulate the consequences of potential options to executive and functional leaders provide structured assessment to support fit for purpose benefits definition and tracking, helping the “right” projects to be selected provide traceability and truly aligning business and technology, increasing satisfaction and predictability of project and enterprise outcomes help realise business strategy by enabling vision to be turned into reality, project by project; i.e. architecture content and process allow leading practice design approaches, such as Services Oriented and Event Driven architectures, to be incorporated into the enterprise and per-project design, planning and governance Today the industry average is c.50% project success (on time, on budget, to expectation) We find investing in Architecture leading practices (complementing Solution Delivery leading practices) delivers 90%+ project success on a sustainable basis Footer Name of File.PPT © 2004 Capgemini - All rights reserved

2. Summary – Architecture and Learning From History SOA is embedded in most organisations IT strategy and architecture, yet why do we think this time we will be successful? Enterprise Architecture and SOA is an immature field in the market However, there are maturing frameworks and tools in the market that can help We find a commitment to develop a mature Architecture capability is a key enabler to realising SOA We believe early adopters can generate significant business benefits over their competition We are finding organisations who are not adopting leading practices for Architecture are encountering new issues as they deliver SOA applications SOA needs the “A”! Footer Name of File.PPT © 2004 Capgemini - All rights reserved