Convergence of BPM and SOA

Description
It gives introduction to SOA, synergy and SOA and BPM, BPM key drivers, role of IT in BPM, realization of BPM through SOA.

Convergence of SOA and BPM

January 2008

Agenda
1. Today's Business computing –
? ? ? ? ? ? ? ? Market forces Operational challenges Technology changes

2. Service Oriented Architecture –

3. Synergy of BPM & SOA –
? ? ? ? ?

Introduction to SOA SOA – Promises Closer look – Internals of SOA Standards Tools Introduction - BPM key drivers Role of IT in BPM BPM - Realization through SOA Best practices Project lifecycle management

4. Q&A, brief case study –

1. Today's Business computing

January 2008

Market forces

Operational challenges ? End-to-end visibility of business processes ? Bringing in innovative mechanisms to stay alive in an ever changing market ? Quicker response to customers ? Enforcing policies, best practices across the enterprise ? Changing compliance needs ? More returns from the investments done ? Handling organizational changes like mergers and acquisitions

Technology changes

? Business – IT alignment ? Disparate technologies, applications and processes ? Workflow automation ? Real time performance monitoring ? Reusing IT investments made ? Resource, programs management ? Abundance of technology choices

2. Service Oriented Architecture

January 2008

Introduction to SOA
? A set of best practices and architectural approaches for organization of the enterprise IT as a set of loosely coupled, shared and standards based services such that they help business leverage more value from the IT investments ? Needs joint ownership of business and IT to succeed

Building a good SOA strategy is about interlinking People, Processes and Technology such that each one leverages the services or functionality of another, at the same time is independent of each other as much as possible so that each one re-aligns easily in reflection to changes in the others.

Introduction to SOA – Industry adoption

? AMR Research study shows an SOA market size of $28 billion to $52 billion ? AMR also predicts at least 77 percent of companies will have SOA initiatives underway by 2012 ? A recent Nucleus Research survey says 37 percent of companies that adopted SOA have started seeing positive ROIs ? From a recent IBM survey - 45 percent of customers indicated they spent between 10 percent and 29 percent of their 2007 IT budgets on SOA ? Gartner predicts by 2010, 80 percent of new mission-critical apps and initiatives will be based on service-oriented architecture

SOA Promises - ROI

? Reduced time to market for products and services ? Increased number of features available to the business ? Reducing cost to deliver solutions ? Reducing time to deliver solutions ? Reducing cost to maintain solutions ? Increased utility from existing investments

Internals of SOA - Services
? Services - building blocks of SOA ? A mechanism by which needs and capabilities are brought together. ? Represent some sort of publicized package of functionality that are composable ? Has different levels of granularity based on the functionality covered
? Fine-grained services - atomic business/ technical functions ? Coarse-grained services – Focused on business functionality, mostly a composite service orchestrated using multiple finegrained services

? Types of services
? ? ? ? ? Presentation Process Business Data Integration

Internals of SOA – Architecture
Consuming Systems – external, management & monitoring etc SOA Infrastructure layer Business Processes, Business Rules Business Services
Messaging & Business event management Application adapters

Service Repository

Business support systems

Business functions

? Infrastructure for catalog, manage, monitor and orchestrate services ? Commonly used infrastructure – an enterprise service bus

Internals of SOA - Features
? Few key characteristics of services ? Composeable ? Discoverable ? Contracts based ? Loosely coupled ? Standards based ? Secure ? Shared ? Key stakeholders ? Providers ? Consumers ? Mediators

Standards
? One of the key promises of SOA is seamless connectivity of enterprise systems through standard interfaces and transport mechanisms ? Many key SOA aspects of soa depend on standardization ? Web services – a set of not mandatory but recommended set of interface definitions and protocols ? Few standards that are being used in service oriented systems
? ? ? ? ? ?

Favorable EAI model or preintegrated suites Low Standards based framework (SOA based) High

Point-topoint Integration

Best of breed COTS products

WSDL – Contract definitions Cost & Implementation SOAP - Transport Risks UDDI – Service cataloging, discovery XML – Data formats HTTP - Transport REST – Document exchange

Unfavorable

Flexibility

Tools & Technology – basic building blocks

Service Registry
1. Register

2. Find

Consumer Consumer Consumer

Producer
3. Invoke

Tools & Technology - ESB ? Enterprise service bus – The most widely used SOA Infrastructure tool ? Mostly built as an abstraction layer on enterprise application integration tools and enterprise messaging platforms ? Acts as an enablement layer for implementing SOA by providing essential service orientation capabilities such as
? ? ? ? Service locating and binding Routing, mediation and messaging Process choreography, service orchestration Management and monitoring

SOA – Management & Governance ? SOA is something that you build not buy ? Success depends on how well its architected, governed and managed
? Lifecycle management of services and related resources ? Dependency management ? Application and management of policies ? Security and runtime policy enforcement ? Service availability ? Service provisioning ? Key aspects of SOA governance ? Policies ? Processes ? Metrics ? Organization

Summary ? A promise from new generation IT to business for improving business agility and business process management ? Unifies business processes by structuring large applications as an ad hoc collection of smaller modules called services ? A design framework for realizing rapid and low-cost system development and improving total system quality. ? Governance – a key element of successful SOA implementation ? Enterprise Service bus – a desired infrastructure for managing a service oriented enterprise

3. Synergy of BPM & SOA

January 2008

Introduction ? Business processes – Activities that produce business outcomes. ? Efficient process management – A key success factor in achieving strategic and short-term business goals ? Process management environment – Managing people, applications, knowledge, infrastructure through coordinated workflows governed by objectives, policies and constraints. ? Business processes include
? A set of activities performed in a specific sequence to achieve a desired business goal ? Activities are performed by systems and people ? Sequence in which the activities are performed are governed by business rules

BPM key drivers ? Factors affecting business agility
? Lack of alignment of strategic vision with operations management ? Challenges brought by mergers, acquisitions, regulations, market changes etc. ? Lack of a flexible and responsive enterprise IT ? Inefficient implementations of business processes as disconnected set of tasks ? Lack of visibility for business into processes and operations ? High cost of maintenance of IT systems ? High levels of dependency on IT for business support.

Role of IT in BPM ? Success of BPM initiatives largely depend on how well business and IT collaborate to achieve defining, building, executing and monitoring business processes ? A collaborative initiative that needs equal ownership between business and IT unlike traditional application development ? Architecting and building systems that assist business in
? Manage and monitor operational process performance ? Change business rules and logic of underlying systems without IT dependency ? Enforce policies, best practices, regulatory requirement ? Ensure accurate and timely completion of tasks ? Able to visualize and optimize business processes before implementing in software systems

Role of IT in BPM – Tools & Infrastructure

Process Execution

Business Systems ERP

Process Dashboards, Monitoring, Analytics

Process Data

Business Services

CRM

Process Engine Modeling & Design tools



Workflows

Business Rules

Users

BPM - Realization through SOA
To achieve true business agility, organizations must separate the processes from the underlying applications using an architectural approach that abstracts the application functionality as services so that the business can compose those services into composite applications in a flexible manner. We call that architectural approach Service-Oriented Architecture (SOA) – ZapThink ? SOA – most effective approach for building a truly agile and responsive BPM environment ? Reusable, shared, standards based business services form the basic building blocks for processes

BPM & SOA – Services and processes
? SOA – Uniting business logic with technology resources ? Build ‘on-demand’ processes from underlying business services

Best practices
? Build a business case, get executive buy-in ? Business case should include
? ? ? ? ? Business benefits Organizational benefits IT benefits Business impact and costs IT costs

? Setup a competency center- responsible for defining the enterprise SOA architecture and roadmap, and managing the SOA’s incremental implementation by working with project groups across the organization. ? Ensure reusability of services ? Adapt an incremental, iterative approach for projects ? Focus more on long term benefits.

Project lifecycle management
Different from traditional software projects management Focus on larger organizational goals Consider business factors like cost optimization, agility Key priority is building the services layer on which business processes can be orchestrated. ? Top down approach – Create models of business processes, and drill down to build services ? Bottom up approach – Establish framework of business services, orchestrate them to create business processes ? Focus on optimizing the processes and assets at every stage of project lifecycle ? ? ? ?

Project lifecycle management - Phases

Monitor & Control Deploy & Execute Optimize

BPM BPM Lifecycle Lifecycle
Design & Implement Simulate Model

Discover

Summary ? Business process management through IT – maximum value when built on service orientation principles ? Service orientation ensures ? Process agility ? Reuse and cost optimization ? Design consistency, standardization ? Improved monitoring, optimization ? Process management – successful implementation depends on how well business and IT collaborate



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