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SOA Governance.

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Presentation on theme: "SOA Governance."— Presentation transcript:

1 SOA Governance

2 Agenda SOA Governance – the Enterprise Architecture Perspective
SOA Governance Lifecycle SOA Governance Challenges and Capabilities to Address Challenges SOA Governance – the Enterprise Architecture Perspective: What is SOA Governance? Why is SOA Governance needed? What are the benefits of SOA Governance? SOA Governance Framework Organization, Processes, Practices SOA Governance Organization Roles, Teams and Structures needed for SOA Governance SOA Governance Processes How do I make sure projects adhere to SOA? (Compliance Process) How do I keep my SOA current? (Vitality Process) How do I ensure everyone understands SOA? (Communication Process) SOA Governance Practices Leading Practices for SOA Governance

3 SOA Governance is a catalyst for improving overall IT Governance
What is … IT Governance? Establishing decision making rights associated with IT Establishing mechanisms and policies used to measure and control the way IT decisions are made and carried out SOA Governance? Strategic framework. Not day to day management My view should be operated at a level higher or on a par with general IT governance process It must be tightly linked and informed by the business. It must have the same time horisons and knowledge as the business Extension of IT Governance focused on the lifecycle of services to ensure the business value of SOA SOA Governance is a catalyst for improving overall IT Governance

4 Why SOA Governance Matters
BINDS IT Effort to business imperatives Align IT and business priorities Direct the use of IT resources Reduce barriers to adoption Translate and Communicate clearly between business and IT Mitigate business risk and strengthen control Maintaining quality of service Ensuring consistency of service Define service levels etc Technical Benefits: Consistent, distributed, independent, standard based, testable Business benefit: Consistent – extensible “BINDS IT Effort to business imperatives” “Communicates and translates business need into IT framework directives” Risk management Governance controls the approach and strategic nature of the SOA; Modelling, Assembly, Deployment, Management Technical vitality - Funding Introduction of technology Deployment roadmap Monitoring Decision

5 Enterprise Architecture and SOA Governance
Strategy Information Business Business Technology Technology Opportunity Strategy Availability Strategy Enterprise Architecture Ensures Alignment Ensures Vitality Ensures Compliance Enterprise wide focus Business IT Architecture Architecture Planning Processes Applications Information Data People Technology Locations Transition Plan Business Operating Environment and IT Infrastructure IT Solutions Slide Objective: This slide shows the relationship between governance and EA The key points to be made: SOA is a key enabler for your enterprise architecture; it is not the whole story. SOA governance should not be side-tracked by desktop refreshes. Successful business has alignment of IT and Business strategy. EA is a structure (tactic) to align IT to business need; (Function) Standards and design principles are used to ensure that the solution is consistent and has the (Form) required. Translation between Business need (Model) -> Architecture and design (Plan) -> execution (Execute) requires alignment with the business and IT goals which is reflects in this diagram through the business and IT strategy IBM’s CBM technique is a unique approach for addressing both business and IT strategies SOA Governance policies must address the political and organisational aspects of this new SOA infrastructure; Boundaries between LOB, Dept, Silo IT, and B2B SOA is disruptive; this must be managed and driven through Slide description An EA must be flexible and evolve constantly if it is to support the business changes needed by an organization. Governance focuses on: Governance of Projects & Programs ”Are we doing these projects the way we said we wanted them done?” An EA must provide an organization and associated architecture governance processes designed to ensure its specifications are either adhered to or – when appropriate – waived and exceptions allowed. “Compliance Process” Governance of the Architecture itself ”Are our target architectures still right?” ”Are we still moving in the right direction?” An EA’s architecture cannot be defined at a single moment in time - there needs to be a vision on how its constituent parts will evolve over the short and long term and how it, as a whole, will change to meet the changing demands of the business – i.e. how it is kept vital and appropriate for the enterprise? “Vitality Process” Enabled by Governance Framework. Project focus Design and Delivery

6 SOA Governance Considerations Processes, Roles and Organization
Business & IT Strategies Business Directions IT Strategies Key Requirements Technology Changes New Requirements & Options IT Investments Compliance Assessment & Impacts Business Value Principles Models Standards Plans Architectural Compliance, Relevance & Value Service Model Roles Definition Organization External Effects Vitality Communication Here we see the key considerations and iterative processes that give the SOA life. The SOA Governance Framework Definition: Aligning business and IT effort Creating common understanding Setting the reach and depth of the SOA (scope) Communication: Polices, Standards, Models (patterns) and best practice Compliance: Governance body monitoring the SOA parts for compliance with their wishes Services and SOA generation of information to inform corporate compliance functions Control variance Vitality: Adoption of new technology Financing general improvements Performance and innovative change New directions and priorities :Represents the interests of The SOA Stakeholders (the business) Business driven solutions IT inspired opportunities Is delivered by the Architecture Management Office Architecture Review Board (ARB) Architecture Manager Enterprise Architects Compliance Architecture Stakeholders

7 SOA Governance Lifecycle
Define the Governance Approach Define/modify governance processes Design policies and enforcement mechanisms Identify success factors, metrics Identify owners and funding model Charter/refine SOA Center of Excellence Design governance IT infrastructure Plan the Governance Need Document and validate business strategy for SOA and IT Assess current IT and SOA capabilities Define/Refine SOA vision and strategy Review current Governance capabilities and arrangements Layout governance plan Enable the Governance Model Incrementally Deploy governance mechanisms Deploy governance IT infrastructure Educate and deploy on expected behaviors and practices Deploy policies Current approaches to SOA Governance: Deploy SOA technology like service registries and SOA management solutions Registries needed to manage services at runtime but not sufficient on its own Management is most effective when done in the context of governance Fragmented, uncoordinated activities around SOA Inconsistent approaches that result in limited ability for reuse Business as usual Treat SOA projects same as others SOA governance planning What is needed: Comprehensive approach encompassing entire services lifecycle with multiple entry points Best practices, methodology and processes and tools and technology Monitor and Manage the Governance Processes Monitor compliance with policies Monitor compliance with governance arrangements Monitor IT effectiveness metrics

8 SOA Governance Lifecycle
Plan the Governance Need Document and validate business strategy for SOA and IT Assess current IT and SOA capabilities Define/Refine SOA vision and strategy Review current Governance capabilities and arrangements Layout governance plan Define the Governance Approach Define/modify governance processes Design policies and enforcement mechanisms Identify success factors, metrics Identify owners and funding model Charter/refine SOA Center of Excellence Design governance IT infrastructure Enable the Governance Model Incrementally Deploy governance mechanisms Deploy governance IT infrastructure Educate and deploy on expected behaviors and practices Deploy policies Current approaches to SOA Governance: Deploy SOA technology like service registries and SOA management solutions Registries needed to manage services at runtime but not sufficient on its own Management is most effective when done in the context of governance Fragmented, uncoordinated activities around SOA Inconsistent approaches that result in limited ability for reuse Business as usual Treat SOA projects same as others SOA governance planning What is needed: Comprehensive approach encompassing entire services lifecycle with multiple entry points Best practices, methodology and processes and tools and technology Monitor and Manage the Governance Processes Monitor compliance with policies Monitor compliance with governance arrangements Monitor IT effectiveness metrics

9 SOA Governance Lifecycle
Define the Governance Approach Define/modify governance processes Design policies and enforcement mechanisms Identify success factors, metrics Identify owners and funding model Charter/refine SOA Center of Excellence Design governance IT infrastructure Plan the Governance Need Document and validate business strategy for SOA and IT Assess current IT and SOA capabilities Define/Refine SOA vision and strategy Review current Governance capabilities and arrangements Layout governance plan Enable the Governance Model Incrementally Deploy governance mechanisms Deploy governance IT infrastructure Educate and deploy on expected behaviors and practices Deploy policies Current approaches to SOA Governance: Deploy SOA technology like service registries and SOA management solutions Registries needed to manage services at runtime but not sufficient on its own Management is most effective when done in the context of governance Fragmented, uncoordinated activities around SOA Inconsistent approaches that result in limited ability for reuse Business as usual Treat SOA projects same as others SOA governance planning What is needed: Comprehensive approach encompassing entire services lifecycle with multiple entry points Best practices, methodology and processes and tools and technology Monitor and Manage the Governance Processes Monitor compliance with policies Monitor compliance with governance arrangements Monitor IT effectiveness metrics

10 SOA Governance Lifecycle
Define the Governance Approach Define/modify governance processes Design policies and enforcement mechanisms Identify success factors, metrics Identify owners and funding model Charter/refine SOA Center of Excellence Design governance IT infrastructure Plan the Governance Need Document and validate business strategy for SOA and IT Assess current IT and SOA capabilities Define/Refine SOA vision and strategy Review current Governance capabilities and arrangements Layout governance plan Enable the Governance Model Incrementally Deploy governance mechanisms Deploy governance IT infrastructure Educate and deploy on expected behaviors and practices Deploy policies Current approaches to SOA Governance: Deploy SOA technology like service registries and SOA management solutions Registries needed to manage services at runtime but not sufficient on its own Management is most effective when done in the context of governance Fragmented, uncoordinated activities around SOA Inconsistent approaches that result in limited ability for reuse Business as usual Treat SOA projects same as others SOA governance planning What is needed: Comprehensive approach encompassing entire services lifecycle with multiple entry points Best practices, methodology and processes and tools and technology Monitor and Manage the Governance Processes Monitor compliance with policies Monitor compliance with governance arrangements Monitor IT effectiveness metrics

11 SOA Governance Lifecycle
Define the Governance Approach Define/modify governance processes Design policies and enforcement mechanisms Identify success factors, metrics Identify owners and funding model Charter/refine SOA Center of Excellence Design governance IT infrastructure Plan the Governance Need Document and validate business strategy for SOA and IT Assess current IT and SOA capabilities Define/Refine SOA vision and strategy Review current Governance capabilities and arrangements Layout governance plan Enable the Governance Model Incrementally Deploy governance mechanisms Deploy governance IT infrastructure Educate and deploy on expected behaviors and practices Deploy policies Current approaches to SOA Governance: Deploy SOA technology like service registries and SOA management solutions Registries needed to manage services at runtime but not sufficient on its own Management is most effective when done in the context of governance Fragmented, uncoordinated activities around SOA Inconsistent approaches that result in limited ability for reuse Business as usual Treat SOA projects same as others SOA governance planning What is needed: Comprehensive approach encompassing entire services lifecycle with multiple entry points Best practices, methodology and processes and tools and technology Monitor and Manage the Governance Processes Monitor compliance with policies Monitor compliance with governance arrangements Monitor IT effectiveness metrics

12 SOA Governance & Management Method
Plan Define Enable Measure Determine the Governance Focus Define the SOA Governance Model Implement the SOA Governance Model Refine the SOA Governance Model Understand current governance structures Define and refine governance processes Implement the transition plan Measure effectiveness governance processes Create IT governance baseline Initiate SOA organizational changes Measure effectiveness of organization change Define organizational change Define scope of governance Launch the SOA Center of Excellence IBM also offers a more comprehensive consulting and technology offering called the SOA Governance and Management Method. The SOA Business Governance Method is included in this consulting offering as you can see represented by the first two phases. The GMM also includes governance consulting to help customers establish processes for Service Modeling, Service Implementation and Service Management as well as roadmap for continuous improvement. We also provide support for using and deploying the IBM SWG tools that support each area of governance. Service Planning requires support for decomposing business process and identifying service interfaces – These processes are supported through Rational RequistePro and WebSphere Business Modeler. Establishing funding, project plans and resources is supported through the Rational Portfolio Manager. Within Service Modeling we focus on processes for creating and enforcing enterprise service standards through the use of Rational Unified Process (RUP) and Rational Software Architect (RSA). Service Implementation requires that processes support the development and testing of services. This is supported by Rational ClearCase/ClearQuest and Robot. Service Management requires that the governance process provide support to monitor composite application performance. This allows for the proper tuning and debugging of composite applications. These processes are supported by the Tivoli Monitoring portfolio – for example a best of breed tool is the ITCAM – the IBM Tivoli Composite Application Manager. The evolution of the overall process is supported through Rational Portfolio Manager and the Rational Method Composer. Define IT changes in SOA development Review and refine operational environment Implement infrastructure for SOA Conduct change readiness survey Continuous SOA Governance Process Measurement & Improvement

13 SOA Governance Challenges
Establishing decision rights Defining high value business services Managing the lifecycle of assets Measuring effectiveness journey

14 Challenge: Establishing Decision Rights
Everyone is responsible and no one is responsible LOB IT IT Decides to deliver consistent customer experience across LOBs Uses SOA to build a unified view of customer across LOBs Starts SOA projects to integrate services from every LOB IT IT LOB Deals with issues around funding, ownership, roles & responsibilities and control Cannot deliver results because project stalls Realizes the need for SOA governance Let’s look at a large insurance company with multiple Lines of Business (LOBs), such as home, life and auto insurance, each working with the customer separately. The company wants to implement a common customer service process – a one-stop shopping experience for the customer to fulfill all of their home, life, auto and other insurance needs. (Large insurance company offering a variety of services (e.g. home, life, auto) running on a federated model where each LOB operates autonomously and is supported by its own IT organization and infrastructure. Same business process and supporting applications implemented in many ways. Minimal technology standards has created very diverse environments that don’t interoperate. Company facing increased competitive pressure and looking for ways to remain competitive.) Effective SOA governance can help answer the following: Who decides which existing LOB service has the best customer data for the new shared process to be used by all LOBs? Who owns the shared service(s)? Who should fund it? Who is responsible for upgrades? How to motivate each LOB to reuse the service (rather than their own unique version because they feel they have unique needs)? Who decides who can use the service and how often? This issue is even more complex for consensus style mgmt approaches

15 Challenge: Establishing Decision Rights
Everyone is responsible and no one is responsible LOB IT IT How do I execute quickly? How much will it cost? Who has the best customer data? Who should lead this cross-LOB initiative? Decides to deliver consistent customer experience across LOBs Uses SOA to build a unified view of customer across LOBs Starts SOA projects to integrate services from every LOB IT IT LOB Who should fund this shared service? Who’s responsible to fix it if it breaks? How do we move forward to deliver application? How do we govern this? Who needs to be involved? Deals with issues around funding, ownership, roles & responsibilities and control Cannot deliver results because project stalls Realizes the need for SOA governance Let’s look at a large insurance company with multiple Lines of Business (LOBs), such as home, life and auto insurance, each working with the customer separately. The company wants to implement a common customer service process – a one-stop shopping experience for the customer to fulfill all of their home, life, auto and other insurance needs. (Large insurance company offering a variety of services (e.g. home, life, auto) running on a federated model where each LOB operates autonomously and is supported by its own IT organization and infrastructure. Same business process and supporting applications implemented in many ways. Minimal technology standards has created very diverse environments that don’t interoperate. Company facing increased competitive pressure and looking for ways to remain competitive.) Effective SOA governance can help answer the following: Who decides which existing LOB service has the best customer data for the new shared process to be used by all LOBs? Who owns the shared service(s)? Who should fund it? Who is responsible for upgrades? How to motivate each LOB to reuse the service (rather than their own unique version because they feel they have unique needs)? Who decides who can use the service and how often? This issue is even more complex for consensus style mgmt approaches

16 Challenge: Establishing Decision Rights
SOA Governance Challenges Funding & ownership of shared services Executive commitment to governance Organizational design Capabilities Needed Service portfolio planning Organizational design Governance process for SOA This issue is even more complex for consensus style mgmt approaches

17 SOA Center of Excellence (COE) A Proven Organizational Model for Governance and Management
Provides Project Support Helps Socialize Architecture Provides Skills Transfer & Early Proof of Concepts Provides Architecture Vitality & Thought Leadership Center of Excellence Promotes Asset Adoption Conducts Architecture Reviews Provides Best Practice Policy & Procedures Provides Production Support

18 Challenge: Defining High Value Business Services
Instantiating policy and metrics Business Exec CIO IT Council Announces expansion into Asia Recognizes that IT is not flexible enough to support expansion Determines that Hong Kong & Thailand need customer service system Development Exec Bus. Analyst & Arch. Bus. Analyst & Arch. Decides to use SOA to implement services than can be localized Creates business process and service models Models process and services that maximize commonality but are configurable for each country

19 Challenge: Defining High Value Business Services
Instantiating policy and metrics Business Exec CIO IT Council What’s the revenue opportunity? How much will it cost to get into Asia? How do I support the expansion and provide clear investment value? What are the policies and standards that must be defined and enforced? Announces expansion into Asia Recognizes that IT is not flexible enough to support expansion Determines that Hong Kong & Thailand need customer service system Development Exec Bus. Analyst & Arch. Bus. Analyst & Arch. What business services are needed? What is common between countries? What is the current and desired business process? Who needs to agree on the service model? Which services can be shared? Who makes decisions about sharing services? What do I need to measure? Decides to use SOA to implement services than can be localized Creates business process and service models Models process and services that maximize commonality but are configurable for each country

20 Challenge: Defining High Value Business Services
SOA Governance Challenges Decision rights and governance process for shared services Communicating and enforcing standards, platforms and policies Identifying and implementing shareable services Capabilities Needed Governance process for SOA Method for defining business processes, services and metrics Enterprise view of services & data Best practices for identifying and defining shared services Let’s look at a large bank expanding into new geographies with differing regulatory requirements. An SOA allows shared reusable business services to be bundled or unbundled as required to enable compliance in each geographical area. Effective SOA governance can help answer the following: What common business services are needed? What potential applications (service consumers) will reuse these service(s)? Which policies are common, which are unique? Can the differences be isolated to maximize consistency? What services already exist and are candidates for reuse?

21 Service Identification, Definition and Ownership
Understand the business need Perform service modeling to identify high value business services SOA is a “Service” oriented The Service is the unit of control Governing body interested in emergent characteristics not internals Ownership is assigned on a service by service basis Services should have independent implementation (Reality may dictate otherwise) Don’t try to make everything a service; Some things are tool kits; for example logging, validation Service owners are responsible for changes and adherence to governing policies Governing body must have jurisdiction Slide Objectives: Slide Details: SOA governance enforces the use of discipline to maintain consistency and relevance within the SOA life cycle. SOA governance tries to bridge the gap between business and IT by allowing traceability from business goals down to services and key performance indicators (KPIs) for measuring the results of those services. SOA governance also needs to keep a constant connection between business and IT through the concept of domain ownership. It is the responsibility of the members of the SOA governance council to logically partition the enterprise into a set of managed business services that share a common business context. Business owners and IT owners of a business domain are responsible for maintaining the applications that support the business domain's exposed business services. They are also responsible for maintaining and monitoring the SLAs of their existing business services as well as negotiating SLAs between different domains. The provisioning of metadata for enterprise business services is critical to both business and IT users. The metadata can provide information like WS-* compliance, business criticality, and so on. Based on the metadata, the business services can be monitored and managed.

22 Challenge: Managing the Lifecycle of Assets
Managing services as assets Development Exec. Business Exec. Developer Requires changes to billing service across all LOBs to enforce new policy Finds it difficult to determine which applications and services are impacted by this change Makes changes to known applications and services Operations Bus. & IT Execs Discovers that change to the service has broken the catalog application Needs to identify a more formal approach for managing services Let’s look at a large retailer who is facing increasing competition to its online and catalog sales channels. To increase customer satisfaction, they want to institute a new billing policy within their existing SOA environment. However, the development team finds it hard to identify which applications and services are impacted by the new billing policy. But facing a deadline, changes are made to known areas and put into production. Unfortunately, another LOB was using the previous version causing outages, customer complaints and revenue loss. (Large retailer faced with increasing competition to its online and catalog sales channels institutes a new billing policy. Each LOB has adopted SOA and implemented its own unique solution. It has been determined that this uncoordinated proliferation of services is an impediment to efficiently implementing this new policy) Although the company had an SOA environment, they had not instituted a way to manage changes and determine who was using the shared services. Effective SOA governance can help answer the following: - How to organize the shared services/assets so they can be effectively reused at a later date? - Who is allowed to change a service reused by others? - Who is using a service and what will be impacted by changes to that service? - Who needs to approve any changes? - Who will be responsible for funding upgrades to meet a specific user’s requirements?

23 Challenge: Managing the Lifecycle of Assets
Managing services as assets Development Exec. Business Exec. Developer Why will this change cost so much? Why does a change impact so many IT systems? Why will this change take so long to implement? How do I identify exactly which assets are impacted? Am I allowed to change this online billing service? How do I validate the change? Requires changes to billing service across all LOBs to enforce new policy Finds it difficult to determine which applications and services are impacted by this change Makes changes to known applications and services Operations Bus. & IT Execs What caused this problem? How do I prevent this? Who’s supposed to notify the users? Who owns services? What are the policies for changing shared services? Discovers that change to the service has broken the catalog application Needs to identify a more formal approach for managing services SOA is a style; It addresses aspects of a system and tries to avoid many of the pitfalls indicated above. Policies such as backwards compatibility and “call tracing and monitoring” help to mitigate the compromises made for reality. Let’s look at a large retailer who is facing increasing competition to its online and catalog sales channels. To increase customer satisfaction, they want to institute a new billing policy within their existing SOA environment. However, the development team finds it hard to identify which applications and services are impacted by the new billing policy. But facing a deadline, changes are made to known areas and put into production. Unfortunately, another LOB was using the previous version causing outages, customer complaints and revenue loss. (Large retailer faced with increasing competition to its online and catalog sales channels institutes a new billing policy. Each LOB has adopted SOA and implemented its own unique solution. It has been determined that this uncoordinated proliferation of services is an impediment to efficiently implementing this new policy) Although the company had an SOA environment, they had not instituted a way to manage changes and determine who was using the shared services. Effective SOA governance can help answer the following: - How to organize the shared services/assets so they can be effectively reused at a later date? - Who is allowed to change a service reused by others? - Who is using a service and what will be impacted by changes to that service? - Who needs to approve any changes? - Who will be responsible for funding upgrades to meet a specific user’s requirements?

24 Challenge: Managing the Lifecycle of Assets
SOA Governance Challenges Eliminate and prevent unnecessary service proliferation Change management for shared services Security & authentication Decision rights & process Capabilities Needed Governance process for SOA Change management Policies for publishing, using and retiring services Infrastructure to help organize and discover services assets, govern access and monitor service vitality Let’s look at a large retailer who is facing increasing competition to its online and catalog sales channels. To increase customer satisfaction, they want to institute a new billing policy within their existing SOA environment. However, the development team finds it hard to identify which applications and services are impacted by the new billing policy. But facing a deadline, changes are made to known areas and put into production. Unfortunately, another LOB was using the previous version causing outages, customer complaints and revenue loss. Although the company had an SOA environment, they had not instituted a way to manage changes and determine who was using the shared services. Effective SOA governance can help answer the following: - How to organize the shared services/assets so they can be effectively reused at a later date? - Who is allowed to change a service reused by others? - Who is using a service and what will be impacted by changes to that service? - Who needs to approve any changes? - Who will be responsible for funding upgrades to meet a specific user’s requirements?

25 Tools to Manage Assets and Govern Access
Service Registry and Repository Service Development Lifecycle Service Endpoint Registries / Repositories Discovery Utilities and Integration Change and Release Management Operational Efficiency and Resilience ITSM Processes Composite Application / Service Management Publish, Deploy Discover, Harvest UDDI Discovery, Retrieve Publish Retrieve Operational Policies Service Descriptions Change & Configuration Management Database Development Asset Repository Runtime Access: Search, select, bind, route, filter, transform Tivoli Federated Identity Manager Policy-based integrated security management for federated web services Decrease security integration costs Prevent fraudulent, unauthorized use of Services Automates user provisioning for SOA transactions Unified customer view across SOA Simplifies security integration for cross-domain federated web services Tivoli Access Manager for Business Integration Simplified Security Management across Enterprise Enhance security of Enterprise Service Bus (ESB) processing SOA transactions Application level protection to transactional data Enforce fine-grained authorization on WebSphere MQ Sever resources by WMQ Clients Generates audit data documenting compliance to security policy Tivoli Application Dependency Discovery Manager & Change and Configuration Management Database Discovery and Relationship Management for SOA environments Automated Discovery: Fully automated application and device discovery for unified view of configuration items in an SOA environment Audit and Control: Manage the change process and provide record of change as a checkpoint for compliance and audit requirements Integration: Provides an integration point for other IT Service Management processes and management data

26 Challenge: Measuring Effectiveness
Measuring performance and adjusting Business Exec. CIO Development Team Identifies opportunity to improve value to partners Mandates use of SOA to leverage existing assets Exposes existing business functionality as services Operations Team Bus. Analyst Realizes that increased transaction volumes impact response time Does not have utilization information for service billing and SLA definition Let’s look at a large telecommunications who embraced an SOA strategy in order to improve staff productivity and lower costs. The Commercial division development team made existing functionality available as services. (Residential Division in telecommunications organization wants to launch new offering that requires changes to billing system. The company embraced an SOA strategy in order to improve staff productivity and lower costs. The Residential Division wants to reuse an existing customer information retrieval service currently owned by the Data Division.) Difficulties appeared when the Residential division launched a heavily used new offering which used one of the Commercial division’s services. The increased usage slowed response times for every application using the service. It also increased the Commercial division’s costs. Unfortunately, a Service Level Agreement (SLA) had not been implemented, which would have generated a plan to handle the additional workload. In addition since appropriate monitoring tools were never deployed, the Commercial division was unable to charge any other division for the service usage. Effective SOA governance can help answer the following: - What are the performance goals of a service? - What IT standards are needed for performance metric gathering and monitoring capability? - What Service Level Agreements are needed? - How to gather and monitor performance metrics?

27 Challenge: Measuring Effectiveness
Measuring performance and adjusting Business Exec. CIO Development Team What is the business opportunity? How can I quickly and profitably get this offering to market? How do I bill those third parties? How do I plan resources to ensure quality of service? How do I instrument the service in order to enable measurement of performance? Identifies opportunity to improve value to partners Mandates use of SOA to leverage existing assets Exposes existing business functionality as services Operations Team Bus. Analyst What is the service utilization rate? Who is using it? How do I get the right information to assess whether I’m meeting my SLA obligations? Realizes that increased transaction volumes impact response time Does not have utilization information for service billing and SLA definition Let’s look at a large telecommunications who embraced an SOA strategy in order to improve staff productivity and lower costs. The Commercial division development team made existing functionality available as services. (Residential Division in telecommunications organization wants to launch new offering that requires changes to billing system. The company embraced an SOA strategy in order to improve staff productivity and lower costs. The Residential Division wants to reuse an existing customer information retrieval service currently owned by the Data Division.) Difficulties appeared when the Residential division launched a heavily used new offering which used one of the Commercial division’s services. The increased usage slowed response times for every application using the service. It also increased the Commercial division’s costs. Unfortunately, a Service Level Agreement (SLA) had not been implemented, which would have generated a plan to handle the additional workload. In addition since appropriate monitoring tools were never deployed, the Commercial division was unable to charge any other division for the service usage. Effective SOA governance can help answer the following: - What are the performance goals of a service? - What IT standards are needed for performance metric gathering and monitoring capability? - What Service Level Agreements are needed? - How to gather and monitor performance metrics?

28 Challenge: Measuring Effectiveness
SOA Governance Challenges Measuring service utilization and cost Measuring project cost Measuring business benefit Access and visibility to information Decision rights and governance process Capabilities Needed Governance process for SOA Visibility to usage and project information Business and IT dashboards Let’s look at a large telecommunications who embraced an SOA strategy in order to improve staff productivity and lower costs. The Commercial division development team made existing functionality available as services. Difficulties appeared when the Residential division launched a heavily used new offering which used one of the Commercial division’s services. The increased usage slowed response times for every application using the service. It also increased the Commercial division’s costs. Unfortunately, a Service Level Agreement (SLA) had not been implemented, which would have generated a plan to handle the additional workload. In addition since appropriate monitoring tools were never deployed, the Commercial division was unable to charge any other division for the service usage. Effective SOA governance can help answer the following: - What are the performance goals of a service? - What IT standards are needed for performance metric gathering and monitoring capability? - What Service Level Agreements are needed? - How to gather and monitor performance metrics?

29 Execution of Business Strategy Related to IT Goals
Link IT objectives with concrete business objectives Manage interactions, metrics, and dependencies in real time Rapidly resolve existing and projected gaps in plans Quickly push, reach agreement, and implement modified objectives through a dynamic change management system Correct objective shortfalls through collaborative services Provide consolidated views for each role encourages alignment of resources and plans with organizational objectives and puts you in a position to monitor and drive performance. It helps increase visibility of what individuals and teams are focused on, their current progress and helps to provide the alerts you need to predict, prevent and resolve issues. And it also helps provide individual employees with the critical information they need to help them stay focused and on track with the efforts which matter most. Intuitive collaborative tools facilitate teaming to solve issues that IBM Workplace for Business Strategy Execution helps to make visible. Enables Leaders at Every Level of an Organization to be More Effective, by More easily communicating their strategy Cascading and interlocking on objectives and targets Visualizing status and performance gaps Using built-in collaboration capabilities for rapid plan exception resolution Receiving real time monitoring of internal and external dependency changes Using intuitive navigation through Scorecards and Dashboards Bottom Line Benefits Improved productivity in meeting objectives Business Foresight Timely visibility to potential performance gaps, faster ability to respond

30 Guidelines in Making SOA Decisions Strategic
Business agility for competitive advantage is the fundamental business requirement – and is enabled by SOA The most important and far-reaching SOA Governance best practice is for the CIO to report to the CEO Successful enterprises consistently demonstrate a willingness to sacrifice function to sustain architectural integrity (preserve Structure) Behaviors, not strategies, create value Without an IT investment approval process within an enterprise-wide IT governance plan, IT investments invariably build toward localized rather than enterprise goals If a peer relationship between IT and the business units cannot be forged, SOA will not be successful Rules of thumb from EIS engagements. Best practices in the SOA governance are really “leading” practices that seem to resonate in the – relatively – recent efforts in this area. Most of them represent an evolution of thinking from governance of web services to governance of service oriented architecture. We can group them into three major areas. FUNDING Maintain top-management leadership and financial backing over the long term. Directly address organization culture using champions or executive sponsors. Establish an adequate funding model Line of Business funding Funded corporate-level strategic development groups Plan on and budget for the refactoring of services PROCESSES Create a Web services strategy which specifies implementation and usage to minimize the proliferation of web services Adopt service refactoring as a way of life – reuse incrementally Build for consumability: refactor services so that they are as broadly applicable as practicable Provide for monitoring existing services, define, and authorize changes to within an enterprise Provide for defining and authorizing changes to services within the enterprise Address issues of deployment and operations from the start of service definition Measure reuse progress with metrics and optimize the reuse program. Develop an SOA strategy covering Business context Pain points Reference architectures A living roadmap for SOA adoption (for a line of business and/or the enterprise) Create mechanisms to ensure application of the corporate SOA strategy: Encapsulate key existing or newly acquired functionality as appropriate Make SOA the end state for any legacy transformation project. ORGANIZATION – A.K.A. PEOPLE Assessing Maturity Understand the maturity level of the organisation in executing complex, cross-business integration projects Understand to what degree change is feasible Scope SOA efforts appropriate to the organisational maturity "Incremental" is likely to be more feasible than "big bang“ Understand and prepare for SOA impacts across the organisation: SOA affects business and technology Organisational changes affecting lines of authority and ownership models Choose an overall governance approach: Central Governance Single Governing body Representation from each service domain Representation from subject matter experts for technological components Distributed Governance Governing bodies for each business unit control over service provision within each organization Requires a functional service domain approach A central committee can provide guidelines and standards Understand and staff roles for proper governance Enterprise Architecture Architecture review Enterprise TDA, Operational TDA Best practice authorities, Re-use authorities Establish a SOA Advisory Group to: Track the role of open standards for SOA (both technical and industry) Make recommendations for their adoption in the enterprise Put in place mechanisms to resolve issues and make compromises Between lines of business Across programmes Between projects Source: Service Oriented Architecture Implementation Challenges, E. G. Nadhan, EDS Solutions Consulting Structuring Authority

31 Guidelines in Making SOA Decisions Tactical
Governance is not management. Governance determines who makes the decisions. Management is the process of making and implementing the decisions Within a business process, each interaction with an IT asset is a potential service Vitality depends on financing; SOA can use “pay as you go” self financing A service that mirrors (and executes) a business process, can be used to allocate IT costs and provide IT justification by correlating costs with business process results A company’s SOA gives IT a definitive way to prove business value through business results measurements Competitive business agility is achieved when a change in business process no longer requires a change to application programming logic Business-savvy IT architects are the bridge between IT and the company’s business units Rules of thumb from EIS engagements. Best practices in the SOA governance are really “leading” practices that seem to resonate in the – relatively – recent efforts in this area. Most of them represent an evolution of thinking from governance of web services to governance of service oriented architecture. We can group them into three major areas. FUNDING Maintain top-management leadership and financial backing over the long term. Directly address organization culture using champions or executive sponsors. Establish an adequate funding model Line of Business funding Funded corporate-level strategic development groups Plan on and budget for the refactoring of services PROCESSES Create a Web services strategy which specifies implementation and usage to minimize the proliferation of web services Adopt service refactoring as a way of life – reuse incrementally Build for consumability: refactor services so that they are as broadly applicable as practicable Provide for monitoring existing services, define, and authorize changes to within an enterprise Provide for defining and authorizing changes to services within the enterprise Address issues of deployment and operations from the start of service definition Measure reuse progress with metrics and optimize the reuse program. Develop an SOA strategy covering Business context Pain points Reference architectures A living roadmap for SOA adoption (for a line of business and/or the enterprise) Create mechanisms to ensure application of the corporate SOA strategy: Encapsulate key existing or newly acquired functionality as appropriate Make SOA the end state for any legacy transformation project. ORGANIZATION – A.K.A. PEOPLE Assessing Maturity Understand the maturity level of the organisation in executing complex, cross-business integration projects Understand to what degree change is feasible Scope SOA efforts appropriate to the organisational maturity "Incremental" is likely to be more feasible than "big bang“ Understand and prepare for SOA impacts across the organisation: SOA affects business and technology Organisational changes affecting lines of authority and ownership models Choose an overall governance approach: Central Governance Single Governing body Representation from each service domain Representation from subject matter experts for technological components Distributed Governance Governing bodies for each business unit control over service provision within each organization Requires a functional service domain approach A central committee can provide guidelines and standards Understand and staff roles for proper governance Enterprise Architecture Architecture review Enterprise TDA, Operational TDA Best practice authorities, Re-use authorities Establish a SOA Advisory Group to: Track the role of open standards for SOA (both technical and industry) Make recommendations for their adoption in the enterprise Put in place mechanisms to resolve issues and make compromises Between lines of business Across programmes Between projects Source: Service Oriented Architecture Implementation Challenges, E. G. Nadhan, EDS Solutions Consulting Structuring Authority

32 How IBM Enables SOA Governance
Methods, process, tools and technology for: Defining/refining governance approach Identifying high value business services and instantiating policy and standards Managing the lifecycle of services and other assets Gaining visibility to performance against goals Services and expertise to assist across the entire service lifecycle


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