SeeBeyond Confidential and Proprietary

Building an SOA on Your Existing Infrastructure

Dr. Ian Howells

VP Worldwide Marketing

SeeBeyond Confidential and Proprietary

Agenda

History

Drivers for 2005

New Breeds of Application

Service Oriented Architecture– Business Process Management– Integration– Master Data Management

Composite Applications

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The Impact of Infrastructure on ApplicationsComposite Applications of the Future – The Past

1980 1984 1988 1992 1996 2000 2004

RDBMSPlatforms

CustomSolutions

Apps

AppsSuites

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The Impact of Infrastructure on ApplicationsComposite Applications of the Future

Web

Services

SOA

Custom Composite

Apps

PackagedComposite

Apps

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CIO Magazine Survey September 2004Entry Points

The State of the CIO 2004– Priorities

(1) Increasing business efficiency through IT-enabled process improvement

(5)Controlling or lowering IT spending

62% of CIO Report Application Backlog as Significant

There’s no consensus on what the next killer application will be, but emerging service oriented application architecture will be the foundation for a new generation of software applications

Future components will be developed from within the IT departments,… - The future of Software, Information Week December 2004

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IDC Survey

43.7%

49.5%

49.7%

49.7%

50.6%

53.8%

56.8%

58.8%

0% 20% 40% 60%

Replace oudated systems

Integrate processes or systems with externalparties

Increase revenue

Cost reduction

Manage customer relations or improvecustomer-facing processes

Comply with government regulations

Streamline core business processes withinthe company

Provide better visibility and control acrossdifferent locations

Based on 526 responses

Source: IDC, 2004

•Applications don’t support processes across functions

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62% of CIO’s Report Application Backlog as SignificantCIO Magazine Poll September 2004

• Application Backlog – What Type of Application – Healthcare – Better Patient Care– Retail – Reduce Out-of-Stocks– Manufacturing – Inventory Management/Supply Chain Visibility– Financial Services – Reduce Trade Errors/Management

Dashboards– Government – Find and Track Terrorists Across Systems– Compliance – Employee On-Ramping/Off-Ramping

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Radiology

GP “System”

The World’s Largest Integration Project A National “Spine” for a Single Patient View

Patient Record

Test Request

Test Request

Clinical Noting

Test Result

Pathology

National Service

“Community”

Patient Record

Encounter Record

Blood Sample

Test Request

Radiology Booking

Test Result

Test Request Radiology

Booking

Test Result

Booking Service

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Single Entity View is Needed EverywhereMaster Data Management

Single Patient View

Single Customer View

Single Company View

Single Employee View

Single Product View

Single Terrorist View

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Loan Approval Process: Required Capabilities

ETL

ETL

Matching

Matching

BAM

BAM

Workflow

Workflow

Portal

Portal

B2B

B2B

B2B

B2B

A2A

A2A

A2A

CompositeApplication

CA

CA

CA

CA

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Financial ServicesStraight Through Processing

From– Simply Linking Systems

To– Business Process

Visibility Across Front, Middle and Back Office

– Management Dashboards

Results– Transaction Error Rate

Dropped from 30% to Zero

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RFID/EPC Transforming the Supply ChainIt’s Not About Tags

A.T. Kearney (ATK) and Kurt Salmon Associates (KSA)

It’s About Process Driven Composite Applications

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Composite Applications

Composite applications represent a means of constructing new applications with very rich functionality in a much reduced timescale and cost. At the highest level a composite application may directly implement an entire end-to-end business process

There is widespread recognition that composite applications will become an essential and long-lasting feature of the IT landscape. Existing implementations have shown that the promise of reuse is genuine and achievable

Source: IDC, 2004, Composite Applications – delivering business agility without massive reinvestment

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SOA

Service Oriented Architecture (SOA) enables the reuse of existing IT software investments by exposing them as a set of services with defined interfaces. SOA is the enabling infrastructure behind composite applications

Source: IDC, 2004, Composite Applications – delivering business agility without massive reinvestment

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Service Oriented Architecture Orchestrating Business Processes via Dynamic Component Assembly

Packaged Apps

Operating Systems

ApplicationPlatforms

HardwarePlatforms

Custom Apps

Databases & Warehouses

TradingPartners

Business Units

IntegratedEnterpriseEcosystem

Get Order Quote Manage Exception OrdersSubmit / Change Order Presentation,Application

Assembly &Orchestration

Order Fulfillment ProcessGenerate Quote ProcessConsolidate Order

for Shipment Process

IntegratedBusinessServicesValidate Order Check Credit Schedule ShipmentCheck Inventory Create Invoice

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Open Standards for a SOAPlatform for building Composite Applications

Packaged Apps

Operating Systems

ApplicationPlatforms

HardwarePlatforms

Custom Apps

Databases & Warehouses

TradingPartners

Business Units

Order Fulfillment ProcessGenerate Quote ProcessConsolidate Order

for Shipment Process

Validate Order Check Credit Schedule ShipmentCheck Inventory Create Invoice

BPEL, BPMN

SOAP, WSDL,UDDI, EJB,ebXML

Get Order Quote Manage Exception OrdersSubmit / Change Order JSP

OAG,Java, XSLTJ2EE

JMX

, SN

MP

, MIB

JMX

, SN

MP

, MIB

StandardsSupported

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STP Magazine Dec/Jan 2004

STP magazine in Dec/Jan 2003/2004 publication interviewed a banking client who admitted:

“for every new corporate client it’s relationship manager had to enter name and address details 53 times so that it could be loaded into a possible 58 processing and monitoring systems. Surely there must be a better way”

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Simple Composite Applications

View CustomerRecord

New CustomerRecord

DeleteOrder

UpdateRecords

TrackOrder

Update Address ProcessUpsell / Gross Sell Process View Revenue Process

Upsell/Cross Sell Activity View Revenue by CustomerUpdate Address

Marketing Systems

Customer DataWarehouse

Corporate Systems

SalesSystems

Service Systems

TradingPartners

Business Units

Assembly &Orchestration

BusinessServices

CompositeApplications

Systems

Upsell/Cross Sell Activity View Revenue by Customer

Upsell / Gross Sell Process View Revenue Process

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Architecting a Composite Application - CA

Packaged CA

CA Generation

SOA

Integration

•Families of CA•Dashboard•Single View•Business Process•B2B

•PCA•Often Vertical

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The Application Shift - Phase 1The Shift to Composite Applications

Siloed and Database Centric Applications

Composite Applications– BPM Driven– B2B Driven

SupplyChain1

Supply Chain4

2

Submit Order Submit OrderCreate Product New Customer

CRM WarehouseManagement

HROrder

managementCRMOrder

managementLegacyCRM

New Customer

Create Product Create Customer Create Order

WebCall

Centeremail Post

Partners

Create CustomerCreate FXCustomer

To

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The Application Shift - Phase 2From Suites to Networks of Composite Applications

Database Centric Application Composite Application

Change Database Structure Change Web Service

Change Coded Logic Change Business Process Logic

Hard-Coded Workflow Screens Drag and Drop Workflow

Unable to Change Interface Customize Portal Interface

Separate Inconsistent Exception Handling

Consistent Cross Application Exception Handling

No Auditability Process Driven Auditability/Compliance

   

Database Centric Suite Integrated Composite Application Network

Submit OrderNew Customer

To

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Composite Applications and ReuseLevels of Reuse Previously not Thought Possible       

"We built an application for evaluating policies, and that application has seven different services orchestrated within its process”

“Three of those services will be used by 281 different programs at latest count, and we've been able to retire seven different programs from the mainframe"

The three services getting so much reuse are "get policy information," "get producer information," and "do data transformation."

– Jeff Gleason, Director of IT strategies for the Financial Markets Division, AEGON / Transamerica– Web Services Pipeline, Transamerica Streamlining Business Processes Through SOA

Insurance Giant Using SeeBeyond’s EAI platform to Service-Enable Backoffice SystemsSeptember 30, 2004

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Summary

The Next Killer App will be a Composite App There is a fundamental mismatch between app

functionality and their core business requirements

Companies Developing Composite Apps Internally

Packaged Composite Applications (PCA) is a $1bn to $1.5bn market

Companies have experienced 80% productivity improvements through reuse

SeeBeyond Confidential and Proprietary

Building an SOA on Your Existing Infrastructure

Dr. Ian Howells

VP Worldwide Marketing