0. Panel on SOA (Service Oriented Architecture)
Session ID: S292868, Moscone West, Room 3007
November 11, 2007
1:30 PM -3:45 PM PST

1. Service Oriented Architecture SIG
The SOASIG represents the interest of Oracle E-Business Suite, PeopleSoft and JDE Applications users worldwide who are interested in taking advantage of the potential of Web Services and the broader scope of Service Oriented Architecture.
Our goal is to provide a forum for the sharing of information and experiences on best practices and effective use of these technologies in an Oracle environment. Also, to provide feedback from the user community to Oracle Corporation as well as to be a conduit for recommended enhancements and influence the future development direction of Web Services in Oracle Applications.
Our mission is to promote the optimum benefit-in-use of Service Oriented Architecture by supporting education and training programs, events associated with its use; and through conferences, publications, and electronic meeting places dedicated to Oracle Service Oriented Architecture.

2. SOA SIG Board
Chairperson/Membership Coordinator Ron Batra, Deloitte US Vice Chairperson Lorne Kaufman, System Efficiency Secretary Kris Gazula Enhancement Coordinator, Darrin Swan, Quest Software Meeting Coordinator, Michael Rulf, USinternetworking, Inc Website Coordinator, Lance Reedy Communication Coordinator, Bipin Raj, eAlliance Newsletter Coordinator T. R. Srikanth, Fluke Corporation Past Chair, Basheer Khan, Innowave Technology Oracle Liaisons, Markus Zirn and Nishit Rao

3. Agenda
Discuss Business/Value Proposition of SOA in an Enterprise, and a cost-benefit calculator
Discuss guidelines to prepare a business case to go SOA from traditional integration methodologies.
Discuss early adoption experiences of Oracle Fusion Middleware and SOA Suite
Discuss best architectural practices and processes in Oracle Fusion Middleware and SOA Suite implementations
Discuss recent advances in Oracle FMW Architecture in relation to integration with Oracle EBS, PSFT and JDE application suites

4. Panel Members Ron Batra, Deloitte Consulting – Panel Moderator
Mike Rulf, US Internetworking
Markus Zirn, Oracle
D’Arcy Mathias, Deloitte Consulting
Nishit Rao, Oracle
Mike Knecht, Innowave Technology

5. Agenda SOA and BPM – Markus Zirn SOA Cost Calculator – Nishit Rao
SOA at USI – Mike Rulf
Business Value and POV on SOA – D’Arcy Mathias
Early Adoption Experiences – Mike Knecht

6. Business Value and POV on SOA
D’Arcy Mathias, Deloitte

7. Agenda SOA Overview Why SOA? SOA Business Perspective
Deloitte’s Point of View
Strengths and Weaknesses of Point-to-Point Integration
Strengths and Weaknesses of SOA Integration
Key Factors for SOA Business Case 7

8. SOA Overview – What is SOA?
A “Service Oriented Architecture” provides an integration framework which can support sharing of business functions as re-useable processes.
A service is the composition of software interactions that provide meaningful value to the business. Service Oriented Architecture (SOA) is a Concept, a Style, and a Strategy, encouraging business model driven development.
A design for linking a collection of services on demand to facilitate a business process
An application function packaged as a reusable component that can be used in a business process
Provides information to the requester, or facilitates a change to business data from one state to another
Implementation agnostic (it does not matter how), as long as the service responds and provides a quality and desired outcome 8

9. Why SOA ? SOA value proposition: Reuse of existing IT assets
Development and maintenance cost reduction – develop once and reuse multiple times
Time to market – New applications can be assembled easily and quickly from existing services
Integrated customer view – reuse of same services in different channels
Technology independent
Reduced complexity

10. SOA Business Perspective
SOA’s value is about reusable business processes
SOA allows organizations to capture and reuse a valuable technological asset: the business process
There are benefits and pitfalls with SOA
SOA can bring benefits such as business agility
SOA can be very costly if not properly planned
SOA can create hard-to-manage dependencies between systems and business groups
SOA governance is a critical success factor
Services need to be provisioned and managed like any enterprise asset
A governance approach such as Deloitte Consulting’s Service Management Framework is needed to manage the dependencies that SOA creates
SOA is not the universal answer
SOA has an important place in the enterprise, but should not be adopted everywhere blindly
SOA for the enterprise should be business-driven 10

11. Managing SOA – Balancing Benefits and Challenges
Service Oriented Architecture claims to provide companies with an IT environment that offers unprecedented levels of control, flexibility and agility for the business and IT. Despite these benefits, SOA brings a new level of complexity, which needs to be managed throughout all stages of the lifecycle.
Managing and supporting such an environment requires a new set of design criteria and operational agreements for both the business and IT. If done well, this tilts the scale and gets the business in control and on top of SOA to reap the maximum benefits it has to offer.
SOA Challenges
Business needs to properly articulate service functionality requirements
New roles and responsibilities between business and IT required
Service based modelling requires new standards for security and authorization
Repositories and models need to be shared between business and IT
Disciplined SOA management maximizes business benefits
SOA Benefits
Increase business agility by composing business defined services into process implementations
Leverage existing (back-office) applications assets and investments
Decrease business dependence on IT through better definition of roles and responsibilities
Free up maintenance costs to support innovation

12. Deloitte’s Business Point of View about SOA
SOA’s value is about reusable business processes
SOA allows organizations to capture and reuse a valuable technological asset: the business process
There are benefits and pitfalls with SOA
SOA can bring benefits such as business agility
SOA can be very costly if not properly planned
SOA can create hard-to-manage dependencies between systems and business groups
SOA governance is a critical success factor
Services need to be provisioned and managed like any enterprise asset
A governance approach such as Deloitte’s Service Management Framework is needed to manage the dependencies that SOA creates
SOA is not the universal answer
SOA has an important place in the enterprise, but should not be adopted everywhere blindly
SOA for the enterprise should be business-driven

13. Deloitte’s Technical Point of View about SOA
SOA is just an architectural approach
SOA is just an architectural approach which builds upon what we learned from objects and components
It is a valuable part of your technology toolkit
It is not a silver bullet, and should not be used everywhere
SOA is not web services;
web services is not SOA
SOA can be achieved with web services, but other transport technologies (e.g. queues, sockets…) can be used as well
Using web services off-the-shelf is not always SOA
Are you exposing a process, or just an API?
Enterprise services should be first class business processes
A service exposed to the enterprise should be a first class business process such as “GetCustomerInfo” or “PlaceOrder”
Consider if your service can be expressed as a VerbNoun
SOA is not middleware
Using middleware tools does not automatically give you SOA
SOA can certainly be realized with middleware

14. Business Integration with Oracle Fusion Middleware
For SOA Integration, Oracle BPEL Process Manager (PM) is the core component in Oracle Fusion Middleware
Oracle BPEL PM offers a comprehensive and easy-to-use infrastructure for creating, deploying and managing cross-application business processes
The diagram on the right illustrates a generic approach in which Oracle BPEL Process Manager is used to orchestrate existing EAI interfaces as well as to integrate new applications

15. Oracle SOA Reference Architecture

16. Strengths and Weaknesses of Point-to-Point Integration
Involves application to application integrations using custom interface code for data integration, process integration, data transformation, and connectivity
Often leads to a complex integration environment i.e. “spaghetti architecture” and typically the only escape route is to build the interfaces from scratch
Strengths
Weaknesses
Ability to minimize short term integration costs
Initial ease of development due to accustomed environment and in-house knowledge
Technical freedom to develop very tailored solutions to meet the business needs
Increases maintenance and support costs
Reduced portability - changes in one system can have a significant impact on all systems that have dependencies to changed system
Limited monitoring and reporting capabilities
Higher maintenance of information quality and integrity
Lack of consistency with design and code; often leads to “band-aid” approach to code changes

17. Strengths and Weaknesses of SOA Integration
Involves the development of enterprise services modeled on existing business processes
Enables loose-coupling of applications through enterprise-wide accessible services, communication, and support to provide improved portability, robustness, extensibility, and flexibility
Strengths
Weaknesses
Lower long-term development costs with ability to leverage reusable business processes
Improved monitoring and reporting services through centralized consoles, lowering maintenance costs
Greater code reuse capabilities for custom functionality
Stronger enforcement of enterprise-wide design and development standards
Loosely coupled architecture to increase flexibility and ease code changes
Higher up-front costs
Requires architecture, infrastructure, and cultural changes across enterprise
Lack of governance model can lead to complex integration platform

18. Key Factors for SOA Business Case
Key SOA Considerations
Cost
Implementation Cost
Support Costs
Additional cost associated with the develop of reusable enterprise business services
Future savings of reusable business services
Business Case
Outlines the cost/benefits analysis of using SOA vs. traditional EBI application integration
Organizational Maturity
Does a governance model exist to manage shared business services throughout their lifecycle?
Do funding models exist to support the cost/benefit drivers?
Has organization adopted a standards-based SOA model?
Reusability
Do reusable services exist in the to-be business process?
Is there an anticipated project that would reuse the potential shared business service?
Alignment of IT with Business Process
How do the existing/to-be IT applications align with the business process?
Monolithic isolated applications vs. shared business services

19. Sample Clients Client Engagement Description Vendor
Consumer Products – Stationary Supplier
Integrated Oracle E-Business Suite with Manugistics resource planning system and supply chain management system using BPEL
Oracle Fusion, Manugistics
Public Sector – Liquor Bureau
Ongoing support and development with Oracle Fusion Middleware using a SOA framework for various projects including integration to Oracle Applications for SCM project
Oracle Fusion
Oil and Gas
Implementation of Oracle BPEL and B2B middleware to integrate a legacy JD Edwards environment to external payroll, treasury, and banking systems
Oracle Fusion, JD Edwards
Home Construction Products
Oracle Fusion Middleware was selected as the SOA integration layer, interfacing various systems including Peoplesoft, Hyperion, Banks, etc.
Oracle Fusion, PeopleSoft, Hyperion
Steel Production
Integrated Oracle EBusiness Suite including Finance and HR modules with external systems using Oracle Fusion Middleware
S – Leveraging Oracle Fusion Middleware Components for the management of SOA Interfaces – 11/15/07, 11:30am – 12:30pm. MW 2014, L2

20. Markus Zirn, Oracle Corporation
SOA and BPM
Markus Zirn, Oracle Corporation

21. SOA & Business Process Mgmt.

22. Process Management Typical Scenario
CRM
Financials
Procurement
HRMS

23. Oracle’s Recommendation Adopt BPM with Oracle’s SOA Suite
Design
Monitor
Optimize
Execute & Optimize Business Processes
Cross-Application
Business Process Automation
Application
Services
CRM
Financials
Procurement
HRMS

24. Business Case Discovery - BPM
Process Mgmt.
What to look for…
What we’ve seen…
Customer satisfaction (process errors)?
Operational visibility across apps?
Process-centric custom apps?
Acquisitions?
Outsourcers/ Biz Partners?
High Turnover (employees, contractors, new products, customers….)?
Paper Processes?
Top Processes:
Order to Cash
Multi-Channel Order Orchestration
On-/Off-Boarding
Concept to Cash (Telco)
Paper Workflow Automation: Imaging/Workflow in AR/AP

25. Data Integration Typical ScenarioUI
Customizations
Financials
CRM
P2P Integr.
(FTP,
PLSQl,
DBLink,…)
Hard to upgrade!
Hard to upgrade!

26. Oracle’s Recommendation Adopt SOA-based Integration with Oracle’s SOA Suite
Error Handling WS WS WS UI WS
Financials
CRM
Customizations
Easy to upgrade!
Easy to upgrade!

27. Business Case Discovery - SOA
What to look for…
What we’ve seen…
Manual data re-entry?
Fax, Phone interactions
Many complementary, heterogeneous apps?
Batch integrations?
Point to Point (FTP, DBLink,…) – hard to maintain & upgrade, error-prone?
Customer & Product data issues?
Easy-to-change, re-usable integrations (SOA-based)
Real-time integrations (instead of batch transfers)
B2B integrations
Master Data Management

28. User Interaction

29. User Interaction Typical Scenario
Biz Intelligence
Call Center
Agent
Content Mgmt.
CRM
SCM
Financials

30. Oracle’s Recommendation Create “Mash Ups” using Oracle WebCenter & ADF
500 units
Share via
Web 2.0
Communities
Call Center
Agent
20 units
Biz Intelligence
Integrate
Apps, Content, Desktop
Map “Mash Up”
Content Mgmt.
CRM
SCM
Financials

31. Extending Applications
SSO
with
Apps 1,
Apps 2
Human WF
Portal UI
BAM
Standards-
Based
SOA
Mid-Tier WS
Process WS WS WS WS UI UI
Apps 1
Logic
Extension
Logic
Extension WS
Apps 2 WS
Logic
Logic
Easy to upgrade!
Easy to upgrade!

32. Business Case Discovery - UI
User Interaction
What to look for…
What we’ve seen…
Manual customer interactions?
Casual ERP users?
Existing Customizations hard to maintain?
Usability: “Swivel chair”? Alt-Tab?
Repetitive tasks?
Spreadsheets?
Customer self-service Online (e.g. Warranty Mgmt.)
User interfaces optimized for “casual users”
Integration “on the glass” (“Hide Complexity”)
Uploading from Spreadsheets
Interaction with processes via BAM
AJAX user interface

33.
NEW

34. Savings Calculator for SOA
Nishit Rao, Oracle Corporation

35. Savings Calculator for SOA
A tool to compute savings in SOA based Integration projects
Nishit Rao Group Product Manager FMW
Markus Zirn
Sr Director, FMW Product Management

36. SOA Savings Calculator computes IT cost savings for integration projects by comparing costs between a SOA/BPEL implementation and a Proprietary Integration Broker implementation over life of solution using TCO.

37. What is value of SOA? Business Value from a SOA Project =
Bottom line benefits + Top Line benefits.
Bottom Line = Cost Saving
Top Line = Higher Revenues
Higher Revenue is (a) difficult to measure and (b) pin the benefits to SOA.
Higher sales, Risk reduction, Time to market etc.
IT Cost Savings is tangible, can be (a) measured *and* (b) pinned to SOA.
Software services, Hardware and software licenses

38. Applied SOA: Measuring Business Value, Michael Barnes Gartner

39. Integration Cost Study : Zapthink

40. Compare TCO over Traditional
Broker based Integration : Data Driven
SOA based Integration : Business Driven
Custom Flows
BPEL
Business User Services
Services
Tightly coupled, zero re-use, function calls
Reusable decoupled
Services
WSDL
WSDL
Custom
Custom
ERP
CRM
ERP
CRM
Many companies have trouble maintaining proprietary integration brokers and point-to-point integrations and grossly underestimate the time, money, and consulting that would be required.
Our findings show that, standards-based integration implemented as SOA orchestrations using BPEL is not only faster to implement, but also faster to change and maintain by IT resources without any prior J2EE development experience.
Standards Based: BPEL & Schemas.
Align to business – high ROI, low risk.
Reusable services.
Custom data, adapters and flows.
Expensive coding, vendor lock in, limited re-use and limited tooling
Low ROI data integration.

41. Underlying Model TCO = A + P.V.  ( Si + Hi + Gi + Ci – Ri ) n i = 1
A = SOA Ramp up costs
P.V. = net present value
Si = Software License and Support costs in year i
Hi = Hardware costs in year i
Gi = Governance Costs in year i
Ci = Services (consultants) costs in year i
Ri = Savings from Reuse in year i
where SOA CapEx acquisition cost includes one time capital expenditure on Software licenses, and Governance Costs includes recurring Architecture, Training and Governance expenditure.
SOA Savings = TCOTRADITIONAL - TCOSOA

42. Inside an Integration Process
Multi Step Process
Bind
Bind
Bind
Interfaces exposed by endpoints
Endpoint
ERP
Custom
Component
CRM
Endpoint
Built by in-house Developers

43. Services Effort Defaults
SOA-BPEL in days
Proprietary Broker in days
Justification
Create new Multi-step process 5 6
Input and output to each step is standardized WSDL and XML.
Endpoint interface WSDL is self descriptive reducing communication errors.
Less training for new hires knowing XML.
Interoperability with diverse systems such as .NET, Mainframe, Databases, Files is made easier by common look and feel and invoking mechanism of WSDL interfaces..
Abstraction of binding type provides flexibility.
XML Schema enforces type and reduces errors
Creating WS interface above component take additional effort
SOA enhances reuse with std interfaces, lookup facilities and governance policies. The reuse rate is with good governance.
Create interface (bind) to endpoint 2 3
Change multi-step process 1
Change interface (binding) when endpoint changes
New Component Development 45 30
Max Reuse Rate
30%
10%
============= E2E Consultants===========
It should not take 15 days to slap a WS on top of a component.
================ Joe Huang=============
Soa adds value when you have more new moving parts.
Highlight scenarios where soa adds value.
Minimize - #1: sites with wM will say they are equally productive.
#3 – when you introduce sometting external to toolset. External partner link.
.NET will take less time(look for a benchmark).

44. SOA Approach saved 28% over traditional methods
Step 3 : Your Savings
SOA Approach saved 28% over traditional methods

45. Change & Maintenance lead in savings
Maintenance accounts for 39% of savings.

46. Feedback: nishit.rao@oracle.comQ
&
Q U E S T I O N S A
A N S W E R S

47. SOA and BPM at USi
Mike Rulf, AT&T Inc

48. SOA and BPM at USi
SOA SIG

49. Developing an ROI Model at USi
REQUIREMENTS
SUPPORTING SYSTEMS
All projects require an 18-month payback on investment
Development labor costs
Recurring maintenance labor
Training costs
Implementation/Support
End-User
Software and recurring maintenance
Hardware & recurring maintenance
CRM link to financial system
Project/case-based financial reporting
Enables capture of delivery labor
Project-based financial reporting
Helps w/ capitalization
Assists in estimation of new projects
ISM
Allocation of DC costs for true hardware support estimates
Burdened labor by category

50. Project Overview BACKGROUND/CHALLENGE SOLUTION and more…. RESULTS
USInternetworking specializes in managed enterprise and eBusiness solutions and on-demand services for Fortune 1000 companies
Streamline operational processes to reduce labor costs and improve
Ensure repeatability and process compliance to support multiple audit standards
HR Onboarding
Identity Management Provisioning
ITIL automation
and more….
RESULTS
Achieved initial consolidation of user information, access mgmt, and provisioning across hosted 11i, PSFT, SEBL and other applications
Reduced “rework” costs and deployment timeframe through automation leading to higher client satisfaction
Leveraging existing code assets increased adoption & reduced deployment timeline

51. Project Benefits Identity Management & Provisioning (S290853)
Leveraged Oracle Identity Management and SOA to provide centralized user management, single sign-on, and provisioning across product and service offerings
Streamlined setup and implementation of security policies using RBAC capability of Oracle Apps
Simplified compliance reporting across multiple audit standards
HR Onboarding (S290854)
Leveraged the web service capabilities of PeopleSoft Integration Broker
Used BPEL to orchestrate and manage multi-product process flow
Utilized human workflow components to track manual tasks for audit compliance
ITIL Automation
Reuse of existing code assets via “wrappers”
ITIL processes often leveraged as part of larger business flows in ERP products

52. Key Learnings Position as a technology solution
DON’T:
DO:
Position as a technology solution
Cost savings through “rapid deployment” or “quicker development”
Focus on business process
Automation of manual or fragmented processes
Reduce cost of compliance through ‘documentation’ of processes and controls
Show value to a key corporate measurement such as margin or revenue
Provide impact at the “C”-level

53. Sessions for Additional Detail
S Oracle Fusion-Ready: Delivering Enterprise Security and User Provisioning
App Tools & Tech Track/Security Focus
Facilitator: Nadia Bendjedou
Thursday 1:00PM-2:00PM Moscone South 104
S Oracle Fusion-Ready: SOA-Based Integration
App Tools & Tech Track/ Integration & Web Services Focus
Tuesday 3:15PM-4:15PM Marriott Golden Gate C2
S The Promise of BPM: Customer Experiences in Adopting Oracle BPM
SOA, BPM & App Server Track/ Integration & Web Services Focus
Facilitator: Harish Gaur
Thursday 8:30AM-9:30AM Moscone South 300

54. Early Adoption Experiences with Oracle SOA
Mike Knecht, Innowave Technology LLC

55. Early Adopter Experiences
Early adopter profile
Large and small companies
Forward-thinking IT management vs. “Just find a way to integrate”
Reasons for adoption are typical
Cost, time, word of mouth, scalability, flexibility, manageability, reliability
Common shortcomings of customer implementations
Exception handling is lacking
Poor early effort at establishing solid data definitions (XSD)
Not taking advantage of the true SOA capabilities
Just replacing traditional solution with a BPEL process
Not utilizing ESB correctly (BPEL used for everything)
No reporting / dashboard management other than Console
BAM
SOA Management Pack
Business Rules are lost in code

56. Early Adopter Experiences
Education is paramount to get the highest ROI from SOA solutions
Put the benefits of SOA into context for customer-specific situations
Walk through “what if” scenarios and compare traditional solution to SOA solution to address
Confusion is common
IT Best Practices seem to change
Old: Single-system consolidation
New: Multi-system integration
Why not build integrations with typical in-house skill sets (FTP, Shell)?
Explain key concepts clearly
Adapters: what are they?
Importance of data definition
Process management
Keep application-specific logic in the application

57. Early Adopter Experiences
Results of early adoption
Great!
Easy to see benefits
Immediate positive impact on maintenance requirements
Subsequent phases scheduled to spread SOA within a company
Common adopter trends
Standards become more important
IT staff embraces SOA approach and technology
Their life is easier!
Basic workshops or training courses are more than enough to get going
Mature, solid, reliable products
As acceptance increases, so will features and functionality
Skill sets becoming more common

58. Oracle Technology Practice Manager
Q & A
Thank you !
Innowave Technology
Mike Knecht
Oracle Technology Practice Manager
Basheer Khan
Founder, CEO, President

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