extracting value from soa
Post on 05-Feb-2016
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Presentation Title | Date | Page 3
Yes14%
No86%
What’s your ROI for SOA?
Have you constructed a solid ROI
Assessment for SOA?
Surveys from attendees to previous
webMethods SOA Masterclass
Presentation Title | Date | Page 4
Business Case Basics …
Vo = Vn – [£ + T + W]
The Value of Opportunity =
+ New Value Created
– Lifecycle Cost of Effort
– Time to Implement
– Waste & Residual Garbage
Presentation Title | Date | Page 5
SOA Promises ... Reduced costs
Vo = Vn – [£ +T + W]Cost ReducedValue Increased
Technical ConsistencyReuse of AssetsLifecycle Cost of Effort reduced
Composition RatherThan Dev
Time to Implement reduced
Reuse Waste & Residual Garbage reduced
Presentation Title | Date | Page 6
The Cost of Delivering Applications with Reuse
Time
Development Cost ($)
App #1 App #2 App #3 App #n
To
tal C
ost
Total Cost
x
“By adopting an SOA platform from webMethods, Superpartners is
benefiting from the ability to re-use a number of services.
We have already seen 30% – 40% re-use of interfaces and services
created along with reduced maintenance costs and effort to
support business change”
- Gary Evans, CIO Superpartners.
Presentation Title | Date | Page 7
SOA Governance Benefits …
Cell entries can be changed to see how they affect results. Cell contains derived results and is locked, but can be copied and pasted into other spreadsheets
Amounts inDesign Time Thousands (1,000)
Productivity Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate SimpleNumber of Services to be Developed 5 15 30 10 30 60 20 60 120 30 90 180 30 90 180Development Effort Each without webMethods SOA (hrs) 697 287 216 697 287 216 697 287 216 697 287 216 697 287 216Reduction in Development Effort Using webMethods SOA (%) 5% 10% 10% 5% 10% 10% 5% 10% 10% 5% 10% 10% 5% 10% 10%Labor Cost ($/hr)Productivity Savings ($K) 13 32 49 27 68 102 58 142 214 91 224 338 95 235 354Total Productivity Savings ($K)
Testing* Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate SimpleNumber of Services to be Developed 5 15 30 10 30 60 20 60 120 30 90 180 30 90 180Testing Effort Each without webMethods SOA (hrs) 349 144 108 349 144 108 349 144 108 349 144 108 349 144 108Reduction in Testing Effort Using webMethods SOA (%) 10% 8% 5% 10% 8% 5% 10% 8% 5% 10% 8% 5% 10% 8% 5%Labor Cost ($/hr)Testing Savings ($K) 13 13 12 27 27 26 58 57 54 91 90 84 95 94 89Total Testing Savings ($K)
Reuse Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate SimpleNumber of Services to be Developed 5 15 30 10 30 60 20 60 120 30 90 180 30 90 180Incremental Portion of Services Reused (%) 5% 10% 20% 5% 10% 20% 5% 10% 20% 5% 10% 20% 5% 10% 20%Development Effort Each without webMethods SOA (hrs) 697 287 216 697 287 216 697 287 216 697 287 216 697 287 216Reduction in Development Effort Using webMethods SOA (%) 5% 10% 10% 5% 10% 10% 5% 10% 10% 5% 10% 10% 5% 10% 10%Development Effort Savings when Reusing a Service (%) 80% 85% 90% 80% 85% 90% 80% 85% 90% 80% 85% 90% 80% 85% 90%Labor Cost ($/hr)Reuse Savings ($K) 11 28 88 22 59 186 47 123 390 74 194 614 77 204 645Total Reuse Savings ($K)
Total Design Time Savings ($K)
Run Time
Operations/Support Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate SimpleNumber of Services in Production 3 8 15 10 30 60 25 75 150 50 150 300 80 240 480Operations/Support Effort Each without webMethods SOA (hrs) 24 8 6 24 8 6 24 8 6 24 8 6 24 8 6Reduction in Ops/Support Effort Using webMethods SOA (%)Labor Cost ($/hr)Operations/Support Savings ($K) 3 2 3 9 9 14 25 25 37 52 52 78 88 88 131Operations/Support Avoidance Due to Reuse ($K) 0 0 1 0 1 3 1 2 7 3 5 16 4 9 26Total Operations/Support Savings ($K)
Maintenance Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate Simple Complex Moderate SimpleNumber of Services in Production 3 8 15 10 30 60 25 75 150 50 150 300 80 240 480Maintenance Effort Each without webMethods SOA (hrs) 240 78 57 240 78 57 240 78 57 240 78 57 240 78 57Reduction in Maintenance Effort Using webMethods SOA (%)Labor Cost ($/hr)Maintenance Savings ($K) 22 19 26 76 74 108 198 193 283 417 406 594 700 683 998Maintenance Avoidance Due to Reuse ($K) 2 3 8 6 11 32 15 29 85 31 61 178 53 102 299Total Maintenance Savings ($K)
Total Run Time Savings ($K) 3,180
259 544 1,142 1,799 1,889
88 343 901 1,893
78 306 803
79 83
1,687 2,835
91
10 37 98
8740%75
40% 40% 40%
Year 5
346
Year 5
206
50% 50%87 91
40%
91
127 267 560
75 79 83 87
882 926
50%75 79 83
50% 50%
Year 1 Year 2 Year 3 Year 4
Year 1 Year 2 Year 3 Year 4
653 685414
SOA Governance Benefits
87 91
Year 2 Year 3 Year 4 Year 5
8375
94
Year 1
79
197
Year 5Year 1 Year 2 Year 3 Year 4
Year 1
75
38
Increased design and development productivity is achieved with SOA governance via role and policy enforcement, service contracts, and easy access to service specifications.
Year 2 Year 3 Year 4 Year 5
278
79 83 87 91
80 168 265
Testing time is reduced due to design policy enforcement and dependency management. Efficiencies in unit testing offset slightly more complicated system testing due to modularity.
Typically the key driver of SOA savings, reuse leverages clear specifications and documentation of granular services to avoid recoding of similar functionality. The amount of services reused will differ by industry.
At run time, support effort is significantly reduced due to more granular visibility, built-in SLA management, load balancing, and controlled access to services. Reuse factors in here too because of common components.
Risk and effort associated with planned maintenance is reduced with SOA governance because of run-time version management, built-in dependency management, access control, and reuse.
Presentation Title | Date | Page 8
SOA – Additional Opportunities
Vo = Vn – [£ + T + W] – Change the balance, change the decision
Multi-channel consistency (web, call centre, mobile ….)
Assist the move to process centric operations => BPMS + SOA
Better context for business users
Eliminate duplicate applications/Enable application replacement
Customer bonding
Presentation Title | Date | Page 10
Improved Information Access
Nissan Europe achieved integrated SOA-based supply chain via a cost-effective multiphase modernization process, and contributed to an overall vehicle inventory reduction of almost 35% within 3 years.
ISSUE:
Accurate Inventory Data
Presentation Title | Date | Page 11
Delivering Business Improvement To Cox
Rapid application delivery
Flexible platform for delivering on competitive improvements made in field service capabilities
The end result – Significant improvement in customer satisfaction and productivity improvement for FSRs
Presentation Title | Date | Page 12
Telecom Financial Services
GovernmentHigh Tech
Solution Focus
Business Process Management
Service Oriented Architecture
Proven Methodolog
y
Learning from Success in Multiple Industries
Presentation Title | Date | Page 14
SOA & IntegrationSOA & Integration
Leave& Layer
BPM Technology: The Catalyst
Process Modeling& Design
Process Modeling& Design
Collaboration, concensus
ProcessSimulationProcess
Simulation
What If?
Process ExecutionProcess
Execution
Automation& CoordinationComposite
ApplicationFramework (CAF)
Composite Application
Framework (CAF)
Codeless Development&
Productive Workspaces
Business RulesBusiness Rules
Automated decision-makingProcess Analytics& Monitoring (BAM)Process Analytics
& Monitoring (BAM)
Real time visibility$
Analytics
Presentation Title | Date | Page 15
Delivering BPM requires access to services
Becoming dependent on a service• Where are they?• How to find the right one?• Is it the right one to use?• Will it meet my projected usage?• Will it it be stable?• Will it be impacted by other consumers?• Can I trust it?
Creating re-usable services• Services need constructing/exposing• Business programme gives visibility to future consumers and
needs
Presentation Title | Date | Page 16
The value of BPM and SOA
Both SOA and BPM have strategic value to an enterprise• But together they provide a more holistic approach to development
and operational management
Both focus on a business value proposition and focus on a business oriented view into their respective worlds
Both create new opportunities for business:• Example: 3 week concept to retirement• Business cannot waste time in requirements documents,
specifications, etc• Losing 1 day to get into production is 5% of overall revenue
• IT must not be in the delivery process• IT must have the governance framework in place to assure success• Operations must have the governance controls to assure production
responsiveness
Presentation Title | Date | Page 17
Agility and flexibility
0% 10% 20% 30% 40% 50% 60% 70% 80%
More rapid and flexible IT response tochanging business needs
Enhanced ability for IT to drive and/orsupport business innovation
Cost savings from more efficient delivery ofIT
Protection of past and future IT investmentsby delaying obsolescence
Improved operational service levels to thebusiness
Experienced adoptersAll respondents
Which of the following would you regard as significant business level drivers for investing in SOA?
Source: Freeform Dynamics/MWD Survey, May/Jun 2006 (Sample 1332)
Presentation Title | Date | Page 18
SOA business value Beyond system flexibility to processes and relationships.
Flexibility
A service-based approach creates modular systems which are easier and quicker to change
1
An architecture approach that promotes service
designs which are business-meaningful
Comprehensibility
A service-based approach enables an environment in which IT capabilities can be easily
understood and specified by business analysts
3
End-to-end management of the service lifecycle which “joins up” activities from
design to operation
Value visibility
A service-based approach enables an environment
in which system value can be readily understood
by the business .
4
Reusability
A service-based approach creates software assets which can be reused across projects, making systems cheaper and lower-risk to build
2
A development lifecycle that promotes
reuse of services
I N C R E A S I N
G V A L U E
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