The Future Of Business InteroperabilityRandy HeffnerVice PresidentForrester Research

May 11, 2006

Download this presentation at: www.forrester.com/oasis

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Major source of business pain: IT responsiveness

• Business is facing:

» Global business models and competition

» Rapid innovation and fast-changing industries

» Regulatory compliance challenges

» Increasing cost pressure

• IT’s response:

» Slow delivery times

» High maintenance costs

» Brittle solutions

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But SOA is the answer, right?

The majority are using SOA

They are quite happy and doing more SOA

They look for it to have a big impact

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Shift to digital: How much IT is in your toothpaste?

Physical world

Digital world

To

tal e

con

om

ic v

alu

e

1950s 2000s

Accounting systemsInventory systems

Scanners

Data warehousesRFID

100% physical

world stuff

. . .

Supply chain mgt

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President& CEO

Marketing Production LegalSales

Americas EMEA Onshore Offshore

R&D People

Rest ofworld

Outsourced

Digital technology covers the business landscape

Business depends on technology

Business is embodied in technology

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10 stories, built 1884–85, ChicagoHome Insurance Company BuildingSource: Encyclopædia Britannica http://www.britannica.com/eb/article-9043525

16 stories, built 1889–91, Chicago Monadnock Building (north half)Source: Wikipedia http://en.wikipedia.org/wiki/Monadnock_Building

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Future structure of IT: Digital Business Architecture

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Traditional solution delivery = frozen processes

Business specs a system

IT

hardcodesProcess

gets frozenCompany becomes

unadaptable

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Digital business delivery = flexibility for change

Business & IT design a process

Business design

encoded as metadata

Metadata drives

technology Making company adaptable

Actively embody your business in your technology

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BUSINESS METADATA CORE

Business Metadata Core: Architectural center

President& CEO

Marketing Production LegalSales

WesternDivison

Eastern Division

Onshore Offshore

R&D People

PartnerChannels

Distribution

Security policyData privacy &

security

Process definitions

Organizational structureMetadata

repositories

Service policy, monitoring, etc.

Standards play: Policy, business models, metadata integration

SOA

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Business Services = your business in the digital world

Standards play: SOA, policy, packaging, versioningB

US

INE

SS

ME

TA

DA

TA

CO

RE

Composite services and data

Digital world

Digital businessservices

Service delivery network

Productinquiry

Reserveinventory

Scheduleshipment

Createcustomer order

Create supplier

order

Scheduleproduction

Services caninitiate

digital processes

Digital businessprocesses

SOA

ERP

CRMVertical

appsCustom

appsSCM

Data gridsRules

engines

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Pervasive Interactions connect digital to physicalStandards play: UI specs, full process, interaction integration

BU

SIN

ES

SM

ET

AD

AT

A C

OR

E

Per

vasi

veIn

tera

ctio

ns

Business Services

Proactive care process

• Medical device• Voice interface• Content mgt• Online charts

End-to-end SCM process

• Point of sale• Web services• RFID• Robots

RFP process

• Collaboration• Word processing• Content mgt• Mobile devices

Movie night process

• Interactive TV• Home content mgt• Calendar• Pizza

Digital home Complex sales Medical delivery Distribution

Unified Communications

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Unified Communications as “just another application”

Standards play: Policy, collab services, channel integration

BU

SIN

ES

SM

ET

AD

AT

A C

OR

E

VoIPCollabor-

ationCore apps

• “Role calling”• IM promote-to-voice

• Auto-mp3 & transcript

“We interrupt for a message about the

Smith proposal”Critical event

capture

Enterprise content

Security

Pervasive Interactions

Unified IP network

Presence-basednotification

Voice + appcollaboration

Video sensorevent

PresenceLocationContextPolicy

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Organic IT: Raise management to the business levelStandards play: Policy-process-resource ties, config mgt

BU

SIN

ES

SM

ET

AD

AT

A C

OR

E

Configuration management

database

Storage

Application server

Digital business services

Firewall

Linux

Digital business processes

Order entry process

Windows

Supply chain process

Server alarm sets off

business alarm

Smart resources for auto-config

Automated management performs auto-recovery

Virtualized resources are flexible and configurable

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The virtual firm: True business interoperability

Company B

Unified Communications

PervasiveInteractions

Organic IT Infrastructure

BusinessServices

Business Metadata Core

Unified Communications

PervasiveInteractions

Organic IT Infrastructure

BusinessServices

Business Metadata Core

Company A

Integrated business services

Interconnected collaboration

networksUnified cross-

boundary processes

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Standards agenda for business interoperability

• Business metamodels and metadata integration

• Comprehensive, cross-boundary process specifications

• Specific policy types

• Deep configuration management and packaging

• Interaction specification and integration

• Collaboration and unified communications

Standards for business embodied in the digital world

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Related Forrester reports

• “Digital Business Architecture: Harnessing IT For Business Flexibility” November 7, 2005, Best Practices

• “Survey Data Says: The Time For SOA Is Now” April 14, 2006, Trends

• “Digital Business Architecture: IT Foundation For Business Flexibility” November 7, 2005, Forrester Big Idea

• “How Composite Apps Will Change Enterprise Application Development” July 20, 2005 Trends

• “Market Update: SLM/BSM Technologies” November 9, 2004, Market Overview

• “The Big Strategic Impact Of Organic Business And Service-Oriented Architecture” June 18, 2004, Trends

• “Organic IT 2004: Cut IT Costs, Speed Up Business” May 18, 2004, Trends

• “Unified Synchronized Communications Arrives” February 24, 2004, Trends

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Randy Heffner

rheffner@forrester.com

www.forrester.com

Thank you

Download this presentation at: www.forrester.com/oasis

Supplementary material

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The mental model shifts of Digital Business Architecture

From: First design your business, then design systems to support it

To: Concurrently design your business and the systems that embody it

From: Write application code to serve dedicated business functions

To: Create digital business capabilities ready to deliver in a digital world

From: Design a user interface for a business function

To: Optimize physical world process endpoints as you connect your digital business to users & devices

From: Find the right network on which to deliver a message

To: Do multi-channel, cross-channel collaboration on a unified network

From: Install my application on a server

To: Allocate resources to my business process

Overall

Business applications

User interfaces & sensors

Communications & collaboration

IT infrastructure

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What do you do about Digital Business Architecture?

STOP START

STOP writing requirements documents for IT.

START cross-boundary process governance, including IT.

START optimizing business process endpoints.

STOP designing user interface screens.

START building process-ready digital business capabilities.

STOP delivering applications for targeted functions.

START joint business-IT analysis of business problems.

STOP treating business and IT as two different worlds.

START using architecture for strategic business flexibility.

STOP using architecture merely for cost-saving standardization.