bridging the business to it gap
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Bridging the Business to IT Gap. Ray Harishankar Distinguished Engineer & Partner Member IBM Academy of Technology IBM Global Business Services [email protected]. Abstract. - PowerPoint PPT PresentationTRANSCRIPT
Bridging the Business to IT Gap
Ray HarishankarDistinguished Engineer & PartnerMember IBM Academy of TechnologyIBM Global Business [email protected]
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AbstractDuring the last several years, the IT industry has focused significant attention on the problem known as the "Business/IT Gap". This gap is primarily one of semantics, such that business people and IT people appear to speak and think in entirely different languages. IBM has specifically addressed "the Gap" within numerous technical forums and studies. These studies have typically concluded that, while the company and the industry have continued to make significant progress, there is still a long way to go. After studying this subject, and reflecting on the studies themselves, the presenter and his team have reached two, possibly controversial, conclusions. One conclusion discussed will be that there will always be a gap. The other conclusion is that there is not just one gap, but many. Even though the gap is inevitable, the concepts of service orientation when applied at a business level may help bridge the gap significantly and bring business and IT much closer than ever before.
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Topics Covered
The Landscape
Characteristics of the Gap
Service Orientation at the Enterprise Level
References
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Current industry trends point to growth, need for agility and broader innovation. Growth is back on the CEO agenda
8 in 10 view growth as a key focus area
Companies are concerned that they are not agile enough 8 in 10 rate “rapid response” as a high or very high priority
Clients view product & service innovation as a top priority Nearly two-thirds view products/service improvement as one of the greatest
opportunities for revenue growth
Clients seek company wide transformation with a very short time horizon
About 9 in 10 believe they need to achieve their transformation goals in less than 5 years; nearly half think they need to do so in less than 2 years
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Technology has become a key business value enabler. Business is very dependent upon IT, with some businesses being close to 100% IT (e-Bay, Amazon, Schwab, etc.)
The time to implement basic new processes or change existing one is governed by the speed of development: The closer the business representation is to IT’s understanding, the faster it is.
Internet connectivity, new channels-to-market and now the reduced business cycle time and B2B integration have further focused attention on the gap.
Recently it has become increasingly urgent to bridge the Business / IT gap. Trends in the use of IT by business has accelerated the need but also encouraged solutions.
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As enterprises have expanded their geographic, product, and channel breadth, business models have become complex, limiting their flexibility & agility.
The Reality: Disjointed operations, product manufacture, and distribution resulting in hit-or-miss efforts to serve target clients. Overlapping capabilities in the product silos drive an inefficient cost structure.
Product SpecificDelivery
Marketing Sales& Distribution
Operations
SharedFacilities
ProductManufacture
ProductSilo 1
ProductSilo 2
ProductSilo 3
Sub-PrimeSegment
Mass RetailSegment
Mass AffluentSegment
Private BankingSegment
Ultra HighNet WorthSegment
“Simplify to Succeed” - Published in May, 2002, IBM
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Service orientation has become increasingly attractive & has been adopted, primarily as the basis for IT systems.
A service-oriented architecture (SOA) is an architectural framework and approach that takes everyday business applications and breaks them down into individual business functions called services. An SOA lets you build, deploy and integrate these services
independent of applications and the computing platforms on which they run.
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Topics Covered
The Landscape
Characteristics of the Gap
Service Orientation at the Enterprise Level
References
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There are numerous aspects to this gap … Business Speak vs. Technology Speak
Organizational Factors
Business artifacts & Technology artifacts
Roles & responsibilities within business & IT
Culture & the social system
…
1. While we need specialists in business & technology domains, we also need them to connect, communicate & understand each other perfectly.
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Transforming business intent into IT systems & solutions that address them is a multilayered & a multi-dimensional problem
Business Aspect
Service Oriented Architecture
Solutions Realized on an Infrastructure
Operational Aspect
Functional Aspect
Industry hot spots Industry Imperatives Business Solution Priorities
Functionality expressed as Services
Map to Business Processes Based on industry standards
(ACORD, iXRetail, eTOM)
Model Driven Development Middleware and Software Technology Platforms &
Frameworks Network & Hardware
Business Model
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A semantic architecture identifies domain specific business terms from documents & conversations and classifies & links them into meaningful patterns based on pre-defined
business concepts extended by industry-specific and discipline-specific concepts.
What do we need to bridge this gap?
Doug McDavid
A structured view of the business, which both expedites its strategic and operational analysis and is a familiar representation to IT professionals
A rigorous method to translate this structured business view to the evolving, well suited information technologies (SOA)
New build and run time technologies suited to the new design and programming model.
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Topics Covered
The Landscape
Characteristics of the Gap
Service Orientation at the Enterprise Level
References
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Existing business models limit the flexibility & agility of enterprises.
The Reality: Disjointed operations, product manufacture, and distribution resulting in hit-or-miss efforts to serve target clients. Overlapping capabilities in the product silos drive an inefficient cost structure.
Product SpecificDelivery
Marketing Sales& Distribution
Operations
SharedFacilities
ProductManufacture
ProductSilo 1
ProductSilo 2
ProductSilo 3
Sub-PrimeSegment
Mass RetailSegment
Mass AffluentSegment
Private BankingSegment
Ultra HighNet WorthSegment
“Simplify to Succeed” - Published in May, 2002, IBM
Existing business models limit the flexibility & agility of enterprises. They need to deconstruct themselves and re-construct across the value net.
The Vision: Seamlessly integrated operations, product manufacture, and delivery capabilities, cost effectively serving discrete customer segments.
Product SpecificDelivery
Marketing Sales& Distribution
Operations
SharedFacilities
ProductManufacture
ProductSilo 1
ProductSilo 2
ProductSilo 3
Sub-PrimeSegment
Mass RetailSegment
Mass AffluentSegment
Private BankingSegment
Ultra HighNet WorthSegment
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Service Oriented Enterprise – Primary Characteristics Supports a discrete set of business services
Has been deconstructed and componentized
Has discrete self contained components
Has flexible & dynamic business processes
Has alignment between business & IT
Has SOA as the underpinnings of its IT
Has governance for IT & business services
Has services provider and/or consumer relationships with partners
Has organized itself to be optimal and efficient
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Service Oriented Enterprise – Additional Characteristics
Has retrained and retooled its workforce to function efficiently as an SOE.
Has changed its culture or adapted its culture to be an SOE
Has plans and processes in place to match skills to services, redefined metrics to measure performance, etc.
Has strategies and plans to drive increased business value through service orientation & dynamic collaboration
Has adopted standards and best practices at all levels of the organization
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Understanding of collaboration of business services to produce new ones with added business value
Understanding and modeling of business contracts between services
Organizational structures, new roles and responsibilities
Business performance monitoring and measurements
Tools & capabilities required to support such an environment and organization
Realization of a true service oriented enterprise requires research and innovation in several areas
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App
s &
In
fo A
sset
s
Business Innovation & Optimization Services
Dev
elop
men
tSe
rvic
es
Interaction Services Process Services Information Services
Partner Services Business App Services
Access Services
Integrated environme
nt for design and creation of
solution assets
Manage and
secure services, applicatio
ns & resources
Facilitates better decision-making with real-time business information
Enables collaboration between people,
processes & information
Orchestrate and automate business
processes
Manages diverse data and content in a unified manner
Connect with trading
partnersBuild on a robust,
scaleable, and secure services environment
Facilitates interactions with existing
information and application assets
ESBFacilitates communication between services
IT S
ervi
ceM
anag
emen
t
Infrastructure ServicesOptimizes throughput,
availability and performance
Strategy
Tactics
Execution
ConsumerRelationship
CustomerRelationship Manufacturing Supply Chain &
DistributionBusiness
Administration
Category/Brand Strategy
Brand P&L Management
Matching Supply and Demand
Marketing Development & Effectiveness
Product Ideation
Marketing Execution
Product Directory
Category/Brand Planning
Assessing Customer Satisfaction
Customer Insights
Account Management
Value-Added Services
Customer Account Servicing
Retail Marketing Execution
Customer Directory
Manufacturing Strategy
Supplier Relationship Management
Production and Materials Planning
Manufacturing Oversight
Supplier Control
Make Products
Plant Inventory Management
Manufacturing Procurement
Assemble/Pkg. Products
Distribution Oversight
Distribution Center Operations
Transportation Resources
En route Inventory Management
In-bound Logistics
Corporate Strategy
Alliance Management
Line of Business Planning
Business Performance Management
External Market Analysis
Organization and Process Design
Legal and Regulatory Compliance
Treasury and Risk Management
Facilities and Equipment Management
IT Systems and Operations
HR Administration
Customer Relationship Strategy
Customer Relationship Planning
Supply Chain Strategy
Supply Chain Planning
Out-bound Logistics
Accounting and GL
Indirect Procurement
Corporate Planning
Concept/Product Testing
Product Development
Product Management
Consumer ServiceIn-store Inventory Mgmt
Category/Brand Strategy
Brand P&L Management
Matching Supply and Demand
Marketing Development & Effectiveness
Product Ideation
Marketing Execution
Product Directory
Category/Brand Planning
Assessing Customer Satisfaction
Customer Insights
Account Management
Value-Added Services
Customer Account Servicing
Retail Marketing Execution
Customer Directory
Manufacturing Strategy
Supplier Relationship Management
Production and Materials Planning
Manufacturing Oversight
Supplier Control
Make Products
Plant Inventory Management
Manufacturing Procurement
Assemble/Pkg. Products
Distribution Oversight
Distribution Center Operations
Transportation Resources
En route Inventory Management
In-bound Logistics
Corporate Strategy
Alliance Management
Line of Business Planning
Business Performance Management
External Market Analysis
Organization and Process Design
Legal and Regulatory Compliance
Treasury and Risk Management
Facilities and Equipment Management
IT Systems and Operations
HR Administration
Customer Relationship Strategy
Customer Relationship Planning
Supply Chain Strategy
Supply Chain Planning
Out-bound Logistics
Accounting and GL
Indirect Procurement
Corporate Planning
Concept/Product Testing
Product Development
Product Management
Consumer ServiceIn-store Inventory Mgmt
Techniques such as SOMA, which link business intent with its realization through IT help align business and IT and bridge the gap.
Services
Services
ServicesServices
Services
Services
ServicesServices
ServicesServices
ServicesSOMA
Component Business Model
SOA Reference Architecture
SOMA – Service Oriented Modeling & Architecture
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We have made and continue to make progress in bridging the gap
IT continues to become an inextricable part of business
Business Design continues to become more and more sophisticated – thereby increasing the complexity
Are we there yet?
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Topics Covered
The Landscape
Characteristics of the Gap
Service Orientation at the Enterprise Level
References
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References
1. “Impact of Services Orientation at the business level and its influence on IT” - Cherbakov, Galambos, Harishankar and Kalyana. IBM Systems Journal, Nov 2005.
2. “Simplify to Succeed” – May 2003, IBM
3. “The Business-IT Gap; A Key Challenge” – Doug McDavid, IBM
4. “IBM’s Vision of the on demand enterprise” – Michael D. Zisman
5. “Towards a Service Oriented Organization” – Richard Veryard, Jan 2004 CBDI.
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www.oasis-open.org
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