ronald schmelzer keynote address
DESCRIPTION
Keynote Address given by Ronald Schmelzer, Senior Analyst and Founder of ZapThink, at Transformation and Innovation 2007.TRANSCRIPT
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Copyright © 2007, ZapThink, LLC 1
Finding the Lowest Risk Path to SOA Adoption
Ron SchmelzerSenior AnalystZapThink, LLC
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Copyright © 2007, ZapThink, LLC 2
The Problems of IT are The Problems of Business
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Copyright © 2007, ZapThink, LLC 3
Business Constant: Change
CHANGE
CompetitionCompetition
Changing Changing MarketplaceMarketplace
Customer Customer DemandsDemands
Mergers & Mergers & AcquisitionsAcquisitions
Optimizing Optimizing ProcessesProcesses
New New TechnologiesTechnologies
Business Business PartnersPartners
A Business is Never A Business is Never STATICSTATIC
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Copyright © 2007, ZapThink, LLC 4
We’ve had IT challenges for years …
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Copyright © 2007, ZapThink, LLC 5
… but even after yesterday’s promises…
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Copyright © 2007, ZapThink, LLC 6
… we still have the same IT mess, only worse.
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Copyright © 2007, ZapThink, LLC 7
The Business Inflexibility Trap
• Inflexibility is the Mother of All Business Problems– If you’re flexible enough, you can solve all the other
problems
• Information Technology (IT) is an impediment to business change– It wasn’t supposed to be that way!
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Copyright © 2007, ZapThink, LLC 8
• Companies require Business Agility…
»Responding quickly to change, and
»Leveraging change for competitive advantage
J
Business Agility
Agility is the key to innovationAgility is the key to innovation
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Copyright © 2007, ZapThink, LLC 9
If you are in a Hole, Stop Digging!
• IT Decision Making’s Fatal Flaw:– Choice between “take some extra time & money and do
it right” vs. “give me what I want the cheapest & fastest way” – guess which wins?
• Repeat enough times, leads to the IT “Rat’s Nest”
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Copyright © 2007, ZapThink, LLC 10
The Integration “Rat’s Nest”
FBT PAY GNTS
TRDS
Client
Customs
RREIPS Integrated A/C Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client Staff RemoteStaff
TAXAGENTS
GCI
Call Centers
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Ref material
Bus. Intel
NTS A/c
BEP
CDCCCWMS
BANK
DDDR
1
Data…….
Penalty
Business
IVR
1
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Copyright © 2007, ZapThink, LLC 11
Service Orientation:A Business Approach
• It’s not about connecting things, it’s about enabling business processes & continual change
• The core business motivation is business agility
• Rather than “rip and replace” old systems – make them work better together
• It’s not about technology, integration, or middleware
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Copyright © 2007, ZapThink, LLC 12
SOA shifts the way we think
Architecture makes it workMiddleware makes it work
Leverage Heterogeneous Technology
Favor Homogeneous Technology
Compose ServicesIntegrate Silos
Loosely Coupled, Agile and Adaptive
Tightly Coupled
Designed to changeDesigned to last
Interactive and iterative development
Long development cycle
Metadata OrientedCode Oriented
Service Oriented ApproachTraditional Distributed Approach
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Copyright © 2007, ZapThink, LLC 13
Measuring ROI for SOA
Source: Wipro
• Reduced licensing & configuration costs
• Cost for Maintenance & Changes
• Operations Cost
• Cost of future integrations
• Phased replacement of legacy middleware
Integration Cost Asset Reuse Business Agility Business Risk
• Cost for development of new business process flows and composite applications
• Overall staffing
• Greater ability to outsource
• Portfolio cleanup
• Improved time to market & responsive customer service
• Ability for business users to directly control business process definition & management
• Ability to easily integrate with new business partners and suppliers
• Provide value to the partners and suppliers which could result in new business opportunities
• Ability to capture the new revenue streams
• Improved Business & IT alignment that helps in intelligent planning
• Cost of enforcing & ensuring regulatory compliance
• Reduction of liability
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Copyright © 2007, ZapThink, LLC 14
Many Perspectives on SOA
• All views relevant & important• Service-Oriented Architects must have all
perspectives
Data
Services
TechnologyBusiness Processes
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Copyright © 2007, ZapThink, LLC 15
Web Services are the Trees….
Service Orientation is the Forest
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Copyright © 2007, ZapThink, LLC 16
Traditional EAI, B2Bi Pkg. ImplementationsWeb Services "Adapters"
The Economics of Integration
Initial Costs Customization ChangesMaintenance
Custom Integration
Copyright (C) 2002 ZapThink, LLC
Rel
ativ
e C
osts
The Relative Costs of Different Integration Approaches
Service-Oriented Integration
Service-Oriented Integration
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Copyright © 2007, ZapThink, LLC 17
There’s No Such Thing as a SOA Wizard!
• Click…click…click…done! You now have a SOA!
• Will never happen because…– SOA best practices are too
general– Each organization has a
different environment, both technical and cultural
The architect’s answer is usuallyThe architect’s answer is usually““it depends”it depends”
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Copyright © 2007, ZapThink, LLC 18
SOA Challenges
Source: Wipro
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Copyright © 2007, ZapThink, LLC 19
Challenge: Inertia in the Organization
• Architecture doesn’t have features and business executives pay for features!
• Moving to SOA means breaking down silos and sharing resources
• The technology change is easy – it’s the human change that’s the hard part!
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Copyright © 2007, ZapThink, LLC 20
Challenge: Balancing Control & Empowerment
• Answer: Governance• Establishing, communicating, and
enforcing policies, providing visibility into the levels of compliance, and dealing with issues
• Not just governance of SOA…governance with SOA
• But…avoid “big brother” effect
Who likes to be governed?Who likes to be governed?
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Copyright © 2007, ZapThink, LLC 21
Challenge: Reuse = Sharing
We all learned to share in kindergarten…We all learned to share in kindergarten…
But by the time we get to the working world, we But by the time we get to the working world, we forget how!forget how!
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Copyright © 2007, ZapThink, LLC 22
How Do You Eat an Elephant?
• One bite at a time!
• Don’t expect to have all the answers on day one
• Take a step-by-step approach, but…– Top-down only: have the plan, may not
be able to execute
– Bottom-up only: build Services, may not be reusable
• SOA planning must be both– Develop the vision (but not the details)
ahead of time
– Service development should be iterative
• Show business value at each step
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Copyright © 2007, ZapThink, LLC 23
The ZapThink SOA Roadmap
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Copyright © 2007, ZapThink, LLC 24
ZapThink’s SOA Implementation Roadmap
Heterogeneous Systems with Proprietary Interfaces
Manage Services
Implement the SOA Metamodel
Service-Oriented ProcessSemantic Integration
Dynamic Service Discovery
Secure Service Interfaces
Wrap Legacy Systems in Services Interfaces
Service-Oriented Enterprise
Enterprise SOA Buildout
Mission-Critical SOA
SOA Pilots
“Grass Roots” Web Services Implementations
Create a Governance Framework
Contract-First Development
Cross-Departmental SOA
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SOA Pilots
• A few high ROI Services• Build acceptance for SOA• Get team up to speed• Work out the kinks• Pilot the governance model• Part of an iterative approach to SOA
• Piloting only the Services instead of the architecture• Remember, the pilot is one step on the roadmap
DANGER! Avoid the SOA Pilot PitfallDANGER! Avoid the SOA Pilot Pitfall
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Copyright © 2007, ZapThink, LLC 26
Building SOA the Right Way
• SOA is all about continuous and sometimes unpredictable change
• Development issues
– How to handle versioning?
– How to handle metadata management?
– How to develop changing policies?
• Runtime issues
– Service availability
– Policy enforcement
– Guarantee service-level agreement
– Maintain low TCO
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Copyright © 2007, ZapThink, LLC 27
Role of the Architect
• Where is the architect?– Growth of the Enterprise
Architecture Team
• Should have dotted-line responsibility to the CIO– Avoid the Ivory Tower!
• Become the Master of Best Practices– Know the methodologies and approaches– Best practices, not software, is where the
innovation and opportunities remain!
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Ownership of Services
• Shared Services cross organizational boundaries
• Siloed IT management styles are becoming obsolete
• The new role for enterprise architects
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Copyright © 2007, ZapThink, LLC 29
How do you Budget?
• Who pays for Service development?
• Who pays for Service changes?
• Should architects have their own budget?
Revenge of the Revenge of the chargebacks!chargebacks!
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Copyright © 2007, ZapThink, LLC 30
Planning for Change
• Why middle management is resisting
• How enterprise architecture helps
• Incremental SOA is the way to go!
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Copyright © 2007, ZapThink, LLC 31
Change & Version Mgmt: Multiple Levels
• Loosely-coupled systems: Lots of simultaneous change
• Service Implementation Change– Changing how you build and run the Service
• Service Contract Change– Changing how to define and communicate Service
capabilities• Service Policy Change
– Changing the rules by which you create, access, and compose Services
• Data Schema Change– Changing the language of data
• Service Infrastructure Change– Embracing ongoing heterogeneity
• Business Process Change– The Business keeps changing, so your architecture
needs to keep working!State ofthe Art!
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Copyright © 2007, ZapThink, LLC 32
How to Think Service-Oriented
• Think of IT as an asset and the business as processes composed of Services
• Think of SOA as an approach for dealing with frequent, and often unpredictable change… in both business and IT.
• Think of integration as a byproduct of Service composition
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Thank You!