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© Copyright 2016 Applied Technology Solutions, Inc. >ApTSi TM – Applying Technology to Solve Business Problems TM The Open Group Conference, San Francisco 2016 1 >Applied Technology Solutions, Inc.(ApTSi TM ) SOA4BT the maturing of SOA and its role in business enablement and transformation The Open Group Conference, San Francisco 2016 ApTSi TM SOA, Cloud and Business Technology ApTSi TM Applied Technology Solutions, Inc.

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© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

1

>Applied Technology Solutions, Inc.(ApTSiTM)

SOA4BT – the maturing of SOA and its role in business

enablement and transformation

The Open Group Conference, San Francisco 2016

ApTSi TM SOA, Cloud and Business Technology

ApTSiTM

Applied Technology Solutions, Inc.

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

>ApTSi TM – Applying Technology to Solve Business Problems TM

• January, 2016

• Name Title

• Nikhil Kumar President & CEO Co-Chair SOA Reference Architecture Project,

The Open Group

• Sundar Ramanathan Manager, IT Advisory Project Chair SOA4BT Project,

The Open Group

ApTSiTM

Applied Technology Solutions, Inc.

• Leadership

• World Class

Technology

• Experience

• EA & Strategy

• Integration, SOA,

Cloud

• Solutions &

Application

Architecture

• Application

Development &

Reuse

• Big Data, DB, EII &

BI

• Security and

Compliance

Nikhil Kumar President

Email: [email protected]

Blog: http://blogs.ittoolbox.com/emergingtech/nikhil

Phone: (248) 797 8143

Introductions

2

Sundar Ramanthan Manager

Email: [email protected]

Blog http://sundarar1.wordpress.com

Phone: (734) 272-2040

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

3

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Business Ecosystem

4

Business Adoption and Impact of Service Orientation

A world of SOAs

Low High Increasing

… “Service Orientation” is a strategic business PRIORITY

As organizations evolve into Service Oriented Enterprises, Business and IT Management are jointly engaged in the creation of “Business Technology”

Modern SOA

Ecosystem

Legacy APIs (CORBA/DCOM)

EAI

Enterprise SOA

Cloud Computing

Micro Service Architectures/ APIs & IOT

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

5

Overview: Some background

Modern business environments have evolved into ecosystems of SOAs –

internal (traditional or legacy), external or partner ecosystems ‒ These ecosystems often now include the cloud as one of the components

‒ Legacy Modernization is providing a further opportunity as budgets open

Cost, agility, regulatory and market drivers are transitioning organizations

into Service Oriented Enterprises ‒ The ability for SOAs to enable agility are existential capabilities in the modern business

environment

This presentation explains provides the SOA4BT model and how it can be

applied, addressing how Enterprise SOA can be thought of as Business

Technology (the Service Orientation of Business) and the Technical SOA

together

Service Oriented Enterprises are becoming the norm. Organizations have aligned structures on service models and the realization of its impact is becoming more ingrained in business execution.

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Business Executives and Management – Talking SOA to the Board

– Talking to Line-Managers and Mid-Level executives

– Expressing SOA in terms of the Business

– Evolving my business to be more agile and adaptive

• IT Executives and Implementation – How do I apply this to reflect business value?

• Enterprise Architecture – How do I handle this new ecosystem?

– How do I handle the continuous change that SOA and modern business drivers bring?

• For All – How to define the Business Strategy and SOA/ IT Strategy and factor in change, culture, market

while managing impact.

What’s in it for me?!

6

The coalescing of SOA and Business requires stakeholders from both IT and the business to think Service Oriented. This presentation should provide an introduction what is involved.

Overview: So what’s in it for me?

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• SOA4BT – a Business Perspective of SOA – An overview of the Business Aspect of the SOA4BT Reference Model and the 3 pillars (Strategy,

Operations , Operating Models)

• SOA4BT – Application to realizing SOAs – Establishing fit, approach and model to establish a Service Oriented Enterprise, keeping

Business Vision and drivers in context

– How to define a Business Roadmap in terms of capabilities - and translate it into quantifiable

measures and capabilities

– How to translate into actionable business structure, process, functions and services

– How to map that to actionable technology and service orientation

• Application Examples – Banking & Healthcare

What You Will Learn

7

Overview: So what you will learn…

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

8

Some quick terms….

‒ Business Services – services that an organization considers its delivered services. The

organization measures itself in terms of metrics related to these services or consolidated

metrics. Business Capabilities are composed of Business Services

‒ Business Functions – the operational functions which keep the organization running.

Business Functions are composed of Business Processes.

‒ E.g. Provider Servicing with processes for claims submission, claims inquiry, etc.

‒ Business Process – Processes that define the behavior from the „How‟ (how work is done)

perspective.

‒ A Service Oriented Enterprise is an organization that orients itself in a Service Oriented

manner, with the following characteristics

It defines Business Capabilities in terms of Business Services

Business Functions in terms of Business Processes

It measures Business KPIs to determine success

Business Services are what the organization provides. Business Functions

are what it does in order to provide Business Services. Business Processes

are how business functions are done.

“Don't gobblefunk around with words.” .. Roald Dahl

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

9

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

A Reference Model for Business in the context of SOA

The Business Perspective

The 3 pillars of SOA4BT – Strategic, Operational and Operating Model provide a framework for how Business adopts service orientation

10

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• A Service Oriented Enterprise measures how it operates.

• It uses Business Services as a paradigm to determine how and what it does.

• It uses a capability based Strategic Model to determine how it works and an

Operational Model to run the organization.

• It uses the Operating Model to determine prioritization.

Why the pillars matter

The Business Perspective

11

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Coordination – Unique Businesses with a need to know

each others transactions

– Shared information, process & tech.

• Diversification – Independent Businesses units with

different customers and expertise

– Economy of scale without limiting

independence.

• Replication – Independent but similar, often competing

– Flexible sharing at the value chain

• Unification – Single Business, global process

– Enterprise capabilities/ bus. proc,.

A Reference Model for Operating Models in the context

of SOA

Pillar 3: The Operating Model

Operating models in the context of SOA have some unique implications

12

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Scorecards – Rolled up to an enterprise level, typically aligned on a Kaplanesque model to reflect factors of

business importance (customer satisfaction, employee satisfaction, revenue, etc.)

– Business executive stakeholder understand and measure success based on these.

– They can be tactical and strategic

• KPIs and Metrics – KPIs and metrics measurable attributes, typically at unit or program level, that can be rolled up to

the scorecards. They are often used to measure how an organization is aligning with its goals.

• Examples – Common scorecard measures for a Healthcare organization may be patient safety and

satisfaction

– Common KPIs for a Healthcare organization may be raw mortality rate and patient

comorbidity rates

Businesses measure how they are doing..

The Business Perspective

Measuring the right thing at the right level is essential. Recognizing that measurements should not impede change is also essential.

13

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Measuring Things

The Business Perspective

14

The context of the metric and relating them together are critical for the successful use of metrics

Enterprise Strategic Business Architecture

Balanced

Scorecard

BU Balanced

Scorecard

BU Balanced

Scorecard

Scorecard (e.g. Kaplan variant) with “Kaplan” traditional metrics

and industry specific metrics used to rollup into business significant measures:

1. Map to specific organizational needs

2. Reflect „Kaplanesque” attributes

Scorecard (e.g. Kaplan variant) used to

rollup into LOB measures:

1. Map to specif ic LOB needs

2. LOB Strategy

3. LOB goals/ objectives/ KPIs

SOA integration with Business Architecture

KPIs + Metric

SOA Governance

decision process

Architectural

decisions

KPIs/ Objectives:

1. Roll up to organizational/ BU goals

2. Have def ined metrics with units of measure and ways to measure

Maps to SOA governance and

architecture decision points

Tra

ce

abili

ty

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• A common set that applies across all industries – Speed and time to market

• SOA is a key factor through common services reducing redundant activity, improving speed, time-to-market and trust

– Agility • SOA provides a key enabler through reuse, separation of concerns (allowing concurrent portfolio execution) and trustable

services

– Cost • As services and organizational culture, governance and processes mature, the cost benefits of SOA express themselves

• Another view – strategic, market and technical – Strategic Drivers are drivers that determine long-term organizational direction

• Organizations often use tools such as Porter 5-force models and business operating models to determine strategic drivers

– Market drivers can be defined as trends that cause markets to develop and grow • Change market context and constrain organizational strategy

• May be slow-changing or disruptive

• E.g. Regulatory change (the adoption of PCI, or the use of biomarkers); the emergence of renewable energy; the Affordable

Care Act

– Technical drivers are drivers influenced by IT change • Often disruptive

• E.g. – cloud, the internet, NFC, etc.

Understanding Business Drivers

The Business Perspective – a taxonomy of drivers

15

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Regulatory (GRC)

• Disruptive

• Innovation (often leading to disruptive drivers)

• Complementary capabilities through partnerships

• Substitute products (forcing change in business models)

• Established rivals

• New entrants

• Supplier bargaining power

• Customer bargaining power

Understanding Business Drivers

The Business Perspective – a taxonomy of drivers

16

Business drivers form part of the constraints that determine the Roadmap and the changing portfolio

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

17

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

From Strategy to Execution

• Determine Strategy and Roadmap

• Define Business Ops.

• Establish Governance Framework

Build the 3 Pillars and Implement Strategy

Pillar

• Business Services/ Func/ Proc.

• Map Capabilities

• Establish Org. Structure

Implement Operating Model and Operational

Pillars

• Determine Capabilities

• Map to RA

• Define Business Process and Service Catalog

Define SOA

• Capture and Map KPIs

• Implement Services and Infrastructure

Implement SOA

The reality is not a linear but an iterative, road-mapped process. The 3 pillars form the framework for the Business to align against. Business Functions, Services and Organization Structure accompanied by the KPIs and Governance Framework form a framework through which the organization becomes “Service Oriented”. The mapping of Capabilities to the SOA RA forms the point of integration. The TOG SOA RA and the OSIMM form the basis for a definition of the technical components of the SOA infrastructure. Organizations tailor these based on identified capabilities to “Enterprise” SOAs. Business Process and Service catalogs are mapped to enterprise Business Services, Functions and Processes. KPIs and metrics are gathered to feedback to align with the Enterprise Strategy

SOA pervades the Service Oriented Enterprise.. Business

Technology melds the Business and SOA, while the Technical

SOA realizes it..

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Get the Strategy Pillar Right

– Align Executive Management against Enterprise Strategy

• Get the Operational Pillar Right

– Get organizational alignment on the Services Provided by the organization. • i.e. – determine the Business Services and associated KPIs

– Get the Business Functions Right • Align Business Services and Organizational Structure – this is key to map in the KPIs are that are fundamental to SOEs

• Organization structure needs to reflect Business Functions. What the organization does (the Business Functions) in order to

support its services need to be expressed as “service units”.

– Get the Business Processes right – and refactor the capabilities • Business Processes will form the basis of the instantiation and use of the technical SOA – so understanding them is important.

• Capabilities will include both those cross-cutting across business functions and those specific to a business function.

Understanding them is important to defining the right RA and Roadmap

• Get the Operating Model right

– Ensure that the organizational type is aligned against available Operating Models

– Establish a governance framework

Success Factors

Success Factors for Business Technology and an SOE

Moving to a Service Oriented Enterprise is a journey. Getting the Business Technology right is critical.

19

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Business Technology – relationships in the model

Service Orientation provides a unique mechanism for low cost alignment

Business Strategy

Mission/ Vision/ Goal

Business Capabilities

Business Operations

Value Chain/ Supply Chain

Business

Processes

Technical Capabilities

Business

Constraints

Service

Orchestrations

SOA RA

SOA Solution

Architectures

Service

Catalog

Activities +

Org. Struct.

Decision

Rights & Gov.

SOA

GovernanceExecution

Capability and Portfolio based

A combination of capabilities, constraints

drive decisions and help define Solution

Architectures

2Organizations align delivery portfolios on

business and technical capabilities

1

SOA

Governance

ensures

consistency

and alignment

3

Business Operations add

Constraints

Governance

20

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Remember!

– SOA RA is an enabler

– SOA BTMM as a rubric for SOA Business Mapping

– SOA OSIMM as a rubric for Technical Mapping

– SOA4BT involves both the Business Technology and the Technical Implementation

parts of the SOA

Success Factors

Success for a SOE

Moving to a Service Oriented Enterprise is a journey. However, modern business drivers of cost, globalization and agility make this easier to understand and justify

21

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

The Business Perspective

1 Kumar (2012)

• The TOG SOA RA and OSIMM enable Roadmapping – The OSIMM forms a rubric to assess conformance

– The RA provides the what and how

– Used together, you can plot how to evolve an RA and respond to change

Using It! Roadmapping

Business Capabilities

• Align against Business Drivers

Roadmap Business SOA Model

• Use the SOA4BT Maturity Model to roadmap capabilities, KPIs, and business fit to determine the roadmap for a business to become a SOE

• Use driver models as constraints to tailor the business model

Technical Capabilities

• The SOA RA provides an alignment to ABBs and Layers

Roadmap SOA Technical Model

• Express as sets of capabilities

• Aligned to OSIMM dimensions

Phase Execution and Assessment

• Map SOA Cap to RA ABBs

• Derive SBB

• Assess against the OSIMM

• Rebalance and conduct next phase of Roadmap

22

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

The Rubric: The SOA4BTMM

The Business Perspective

1 Kumar (2012)

23

Strategy Pillar –

Mission, Vision and

Metrics

Strategy Pillar –

Capability Mapping

Operational Pillar –

Business Function

Mapping

Operational Pillar –

Business Service &

Process Mapping

Operating Model

Pillar – Governance

Operating Model

Pillar – Cultural

Maturity

Operating Model

Pillar – Operating

Model

SiloShared

Strategy

Evolved

Operational

Model

Defined

Metrics and

Processes

Aligned

Services

Service

Oriented

Enterprise

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

The Rubric: The OSIMM

The Business Perspective

1 Kumar (2012)

Silo

Level 1

Services

Level 4

Composite

Services

Level 5

Virtualized

Services

Level 6 Level 7

Dynamically

Re-Configurable

ServicesComponentized

Level 3

Integrated

Level 2

Modules ServicesProcess Integration

via Service

Dynamic Application

AssemblyComponentsObjectsApplications

Structured Analysis

& Design

Service Oriented

Modeling

Service Oriented

Modeling for

Infrastructure

Business Process

Modeling

Component Based

Development

Object Oriented

ModelingMethods

Isolated Business

Line Driven

Business provides &

consumes services

Outsourced

Services

BPM & BAM

Business capabilities

via context aware

services

Componentized

Business Functions

Business Process

IntegrationBusiness View Composed

Business Services

Service Oriented

Modeling

Applications

comprised of

composite services

LOB Platform

Specific

Project Based SOA

Environment

Virtual SOA

Environment:

Sense and Respond

Context-aware

Event-based:

Sense & Respond

Common Reusable

Infrastructure

Enterprise

StandardsInfrastructure &

Management

Monolithic

Architecture

Emerging

SOAGrid Enabled SOA

Dynamically Re-

Configurable

Architecture

Component

Architecture

Layered

ArchitectureArchitecture SOA

Common SOA

Environment

Ad hoc LOB IT

Strategy and

Governance

Emerging SOA

governance

SOA and IT

Infrastructure

Governance

alignment

Governance via

Policy

Common

Governance

Processes

IT

TransformationGovernance &

Organization

SOA and IT

Governance

Alignment

Application Specific

Data Solution

Information as a

ServiceVirtualized Data

Services

Semantic Data

Vocabularies

Canonical

Models.

LOB Specific

(Data subject areas

established)

InformationEnterprise Business

Data Dictionary &

Repository

Service Foundation Levels

24

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

25

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Acme Banking Enterprise

26

Enterprise

Drivers

1. Agility

2. Cost

3. Innovation

4. GRC

5. Service

provider

models

1. Legacy systems with application

silos

2. Plan as opposed to individual

centricity

3. Tight coupling

4. Technical debt with large

investment in legacy platforms

5. Limited organizational background

of Service Orientation

6. Absence of Master Data

Management and Data Quality

ability leading to “GIGO”

Legacy and Traditional

Constraints

Business Drivers

1. Cost

2. Market segmentation

3. Fluid and complex regulatory

environment

1. PCI and Reg E evolution;

2. CFPB and Dodd Frank;

3. Changes to Basel

4. Need for common understanding of

information across the enterprise

5. Market Consolidation

6. New Supplier

Business Derived and New

Technical Drivers

1. Cloud Computing and IOT

1. BPaaS and SaaS impact

2. NFC channels

3. Social Media

4. Individual centric models

Acme Business Technology and Technical SOA

1. Realigned organization against Services Provided (Service Unit model)

2. Defined KPIs – enterprise and service unit

3. Governance Framework and Operating Model Classification

4. Defined Business Strategy with Mission, Vision, Goal, Capability Map, Roadmap

and Capability based Portfolio

1. ESB & SOA Fabric

2. API Mgmt & Runtime Governance

3. ID Mgmt & Security Centralization

4. Monitoring and Event Based response

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• The Strategy Pillar – What does the Board measure by? (e.g. GAAP measures, non-GAAP measures, Kaplan model)

• At least think about Financial (how do we measure it), Internal Business Process (what do we do well, what is not well, what is

important and how to measure it), Customer, Learning and Growth (organizational capability)

– What is their focus?

– What business drivers exist and need to be factored in?

– What are the key level 1 capabilities and how do they align to mission vision and goal?

– Define a measurement rubric using KPIs, KAIs and scorecards

• The Operational Pillar – Determine key business functions (what), business processes (how) at level 1

– Organizational structural model

• The Operating Model – What quadrant? (Coordination, Diversification, Replication, Unification)

Determine the pillars

Applying the SOA4BT model

Moving to a Service Oriented Enterprise is a journey. However, modern business drivers of cost, globalization and agility make this easier to understand and justify

27

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Coordination – Unique Businesses with a need to know

each others transactions

– Shared information, process & tech.

• Diversification – Independent Businesses units with

different customers and expertise

– Economy of scale without limiting

independence.

• Replication – Independent but similar, often competing

– Flexible sharing at the value chain

• Unification – Single Business, global process

– Enterprise capabilities/ bus. proc,.

What am I?

What am I?

Operating models in the context of SOA have some unique implications

28

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• The Strategy Pillar – Roadmap the Business Roadmap keeping capabilities and drivers as the constraints

– Create a capability portfolio with KPIs

– Express a program portfolio

• The Operational Pillar – Define snapshots by roadmap phase

• The Operating Model – Develop a Governance roadmap

Determine the Capability Maps and build the roadmap

Applying the SOA4BT model

Moving to a Service Oriented Enterprise is a journey. However, modern business drivers of cost, globalization and agility make this easier to understand and justify

29

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• The Strategy Pillar – Define your technical capability catalog

– Map business capabilities to technical capabilities

– Define your service catalog – which will evolve!

– Apply the SOA RA and OSIMM to develop the SOA Roadmap

– Provide the Business and IT with day in the life at each snapshot

• The Operational Pillar – Define snapshots by roadmap phase

• The Operating Model – Develop a Governance roadmap

Define Service Portfolio and Technical SOA Roadmap

Applying the SOA4BT model

Moving to a Service Oriented Enterprise is a journey. However, modern business drivers of cost, globalization and agility make this easier to understand and justify

30

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

31

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Acme Healthcare Enterprise

32

Enterprise

Drivers

1. Quality

2. Agility

3. Cost

4. Innovation

5. Seamless

Partner

Integration

1. Legacy systems with application

silos

2. Plan as opposed to individual

centricity

3. Tight coupling

4. Technical debt with large

investment in legacy platforms

5. Limited organizational background

of Service Orientation

6. Absence of Master Data

Management and Data Quality

ability leading to “GIGO”

7. Intense market change &

competition with key players

migrating to new platforms

Legacy and Traditional

Constraints

Business Drivers

1. Ability to integrate with trading

partners

2. New payment models

3. Wellness Vs symptomatic

4. Evidence based Vs Fee-for-service

5. New players and competitive

operating environment

6. Staggering volume and cost increase

requiring cost-containment

7. Fluid and complex regulatory

environment

8. Need for common understanding of

information across the enterprise

9. Market Consolidation

Business Derived and New

Technical Drivers

1. Adoption of Service Orientation and

an API based architecture

2. Huge volumes of data

3. Diverse sources of data & rapidly

evolving formats (e.g. HIPAA 5010)

4. Complexity in available data –

structured, unstructured, fluid

relationships

5. Evolving business understanding

and use of data (adhoc to silo to

business vision)

6. Need for a common view and

understanding of data (e.g. clinical)

7. Cloud Computing and IOT

8. Individualized Healthcare Paradigm

Acme Business Technology and Technical SOA

1. Realigned organization against Services Provided (Service Unit model)

2. Defined KPIs – enterprise and service unit

3. Governance Framework and Operating Model Classification

4. Defined Business Strategy with Mission, Vision, Goal, Capability Map, Roadmap

and Capability based Portfolio

1. ESB & SOA Fabric

2. API Mgmt & Runtime Governance

3. ID Mgmt & Security Centralization

4. Monitoring and Event Based response

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Healthcare in an Individualized Healthcare World

33

The new world of healthcare is person-centric

Figure from Kumar and Limaye, SCDM 2014

OMICS

IOT, Social Media

Wellness mHealth

Data Analytics

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Acme Healthcare Company

34

The new world of healthcare is person-centric

A Person-Centric model based on seamless interoperability, regulatory compliance and security are the cornerstones of modern healthcare

The Evolving Healthcare Ecosystem

is Person-Centric

Figure from Kumar and Limaye, SCDM 2014

Regulatory and Compliance

Pharma

Companion Dx

Payers

Providers

IDNs

PBM

Pharmacy

Patient

Healthcare IT

Social Media

Internet of

Things (IOT)

ONC Direct Connect

HIPAA Business Associate & Covered Entity

HIMMS & Continuaa introduce personal connected care

BRIDGFHIM focus

Labs

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

Acme Healthcare Company

35

The new world of healthcare is person-centric

As IT comes to the world of Healthcare, data interoperability takes center stage

Interoperability is key

Healthcare IT

Compliance

Pharmaceuticals

Companion

Diagnostics /

Theranostics

Pharma

Pharma, Payers, IDNs and Patients

form the core of the Personalized

Medicine Ecosystem

Patient

Clinical

(Providers/

Physicians)

Clinical (IDN/

ACO/ Medical

Group)

Payers

(Insurance)

PBMs

(Pharmacy

Benefits Mgrs)

Healthcare Delivery

Payers, IDNs and Patients form the core of the

Traditional Healthcare Delivery Ecosystem

Healthcare IT will bridge Drug development and Delivery

Figure from Kumar and Limaye, DIA 2012

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

36

Acme Healthcare Enterprises

Is essentially a payer – that is evolving into the an IDN model ‒ The ability for SOAs to enable agility are existential capabilities in the modern business

environment

It is being severely impacted by change

In this example we are going to define the 3 pillars and map a portion of the

SOA

Due to its nature ( a presentation) there will be a lot of brevity in the content

Service Oriented Enterprises are becoming the norm. Organizations have aligned structures on service models and the realization of its impact is becoming more ingrained in business execution.

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Numerous legacy systems all based on the same model

• Government regulation driving a transition from a symptomatic to a wellness

model

• Regulation rapidly changing

• Security constraints in flux

• Data not available or aligned at an individual level

• Payment shifting from encounter to episode of care

• Payment shifting from fee for service to evidence based

• Business Organization in silos based on the Plan/Member/Employer model – Largest unit is National Acme Retail Corporation based on employer of same name and has

maximum revenue

... The list goes on...

Where Acme is..

The Journey - the Strategy

Acme Organization has to change its Business Technology first..

37

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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• Strategy Pillar

– Scorecards • Financials driven by cost and revenue rolled up based on organizational unit silos

– KPIs and Metrics • KPIs based on Employers, as organization is modeled on a Plan/Member/Employer model

– Mission, Vision and Goals • All need updating

– Roadmap and Capability • No Roadmap

• No Capability Based Model

– Roadmap and Capability • No Roadmap

• No Capability Based Model

Where Acme is..

The Journey - the Strategy

Acme Organization has to change its Business Technology first..

38

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Operational Pillar

– Business Organization in silos based on the Plan/Member/Employer model • Largest unit is National Acme Retail Corporation based on employer of same name and has maximum revenue

– Operational Functions apart from Back Office not defined

– Decisions not data based

– Business Process Models defined – at a silo level

Where Acme is..

The Journey - the Strategy

Acme Organization has to change its Business Technology first..

39

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Operating Model Pillar

– Falls into Diversification Model • This model will not work with modern drivers

– Governance Framework • Defined to meet regulatory criteria

– Decision Rights defined – to meet regulatory criteria and enforce the Diversification

Model

Where Acme is..

The Journey - the Strategy

Acme Organization has to change its Business Technology first..

40

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• Scorecards – Financials driven by cost and revenue rolled up based on service unit silos

– ALSO patient safety and satisfaction;

– incorporate required standards such as STAR and HEDIS

• KPIs and Metrics – KPIs need to be realigned based on regulatory constraints AND a new Business Service Unit

based organizational model

• Capabilities!!! – Roadmap defined on Business and Technical Capabilities and Business Services

• Ability to view and capture individualized profiles across the patients lifetime

– Capability Catalog (both Business and Technical) • E.g. Near Real Time Provider Clinical Engagement; Member Identification Service

– Capability based Portfolio • E.g. Develop Person Data View; Generate STAR profile,; integration into local HIE

The Strategy Pillar first...

The Journey - Changing the BT

Acme Organization has to change its Business Technology first..

41

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Business Services, Functions and Processes – Define what the enterprise does – in terms of services offered

• E.g. Provider and Network Management (Service)

– Define the Business Functions in terms of Functions • E.g. Provider Credentialing

• E.g. Generate Provider Profile

– Define the Business Processes • E.g. Generate Provider Profile

• KPIs and Metrics – KPIs for each Business Service Unit

• E.g. Patient Credentialing quality of service metrics

The Operational Pillar...

The Journey - Changing the BT

Acme Organization has to change its Business Technology first..

42

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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• Operating Model Change – Transition into a Unified Model as that is a better fit for the new market environment

• Organizational Structure – Convert Business Services into Service Units

• Governance Framework – Leverage COBIT and the SOA Governance Framework to define an appropriate governance

framework

– Decision rights in terms of Business Services and cross-unit capability execution

The Operating Model Pillar...

The Journey - Changing the BT

Acme Organization has to change its Business Technology first..

43

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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• Map the technical (and business) capabilities to the SOA RA – E.g. – new ESB

– Use the SOA RA Metamodel to define the Solution Building Blocks • E.g. Acme Service Bus

• Define the operational SOA RA – Define the Business Process Catalog

• E.g. Generate Demographic Profile Business Process (this may be decomposed from the BT Business Process)

– Define the Business Service Catalog • Determine the Service Categories

• Determine cross domain services (e.g. Person Health Model Service)

• Governance Framework – SOA Governance Framework and infrastructure

– Capability mapping built into registry/repository

– Portfolio governance and roadmap based on the SOA RA and OSIMM

The Enterprise SOA Technology Architecture...

The Journey - Mapping to the Technology SOA

Acme Organization has to align and derive its Technical SOA from the SOA RA and the BT….

44

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Enabler: The SOA RA Meta-model

The Business Perspective

1 Kumar (2012)

Curre

nt

Futu

re

Curre

nt

45

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• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

46

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• Completing the mapping to the SOA projects

• Completing the Case Studies

• Completing the implementation models

• …

What’s Next?

What’s Next

47

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>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

48

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Discussion

49

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

>ApTSi TM – Applying Technology to Solve Business Problems TM

• January, 2016

• Name Title

• Nikhil Kumar President & CEO Co-Chair SOA Reference Architecture Project,

The Open Group

• Sundar Ramanathan Manager, IT Advisory Project Chair SOA4BT Project,

The Open Group

ApTSiTM

Applied Technology Solutions, Inc.

Nikhil Kumar President

Email: [email protected]

Blog: http://blogs.ittoolbox.com/emergingtech/nikhil

Phone: (248) 797 8143

Introductions

50

Sundar Ramanthan Manager

Email: [email protected]

Blog http://sundarar1.wordpress.com

Phone: (734) 272-2040

• Leadership

• World Class

Technology

• Experience

• EA & Strategy

• Integration, SOA,

Cloud

• Solutions &

Application

Architecture

• Application

Development &

Reuse

• Big Data, DB, EII &

BI

• Security and

Compliance

© Copyright 2016 Applied Technology Solutions, Inc.

>ApTSi TM – Applying Technology to Solve Business Problems TM

The Open Group Conference, San Francisco 2016

• Overview

• SOA4BT – the 3 pillars

• SOA4BT – from pillar to execution

• An example – the Acme Banking company

• An example – the Acme Healthcare company

• What‟s Next

• Discussion

• Supporting Materials

– The IT Perspective of Service Orientation

>ApTSi TM – Applying Technology to Solve Business Problems TM

Agenda

51

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Enabler: The SOA RA V1

The SOA RA

The SOA RA provides a reusable set of capabilities, architectural building blocks and an underlying framework to make SOA actionable

Consumer

Interfaces

Business

Processes

Services

Service

Components

Operational

Systems

Inte

gra

tion

Qu

ality

of S

erv

ice

Info

rma

tion

Go

ve

rna

nc

e

Consumer

Interfaces

Business

Processes

Services

Service

Components

Operational

Systems

Inte

gra

tion

Qu

ality

of S

erv

ice

Info

rma

tion

Go

ve

rna

nce

The SOA RA consists of 5

“functional” layers and 4 “cross-

cutting” layers

1. The SOA RA1 provides an industry standard

set of capabilities and architectural building

blocks for each layer, based on best

practices and lessons learned from a number

of global organizations of various sizes and

line of business

2. We use the business capabilities, industry

trends and drivers and best practices to

further constrain and define the capabilities to

be supported, and define solution

architectures

3. We use the OSIMM for Roadmapping

52

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Enabler: The SOA RA V1 also be applied to other

parts of the SOA Ecosystem, including the Cloud

The SOA RA and the Cloud Ecosystem

The Cloud is a particular expression of SOA. The SOA RA provides a fundamental fabric around which we can design cloud architectures

1 TOG 2012, Kumar (2012, 2011)

Private Cloud Hybrid Cloud Public Cloud Community

Cloud

BPaaS e.g. Location

Independence,

Elasticity, Multi-

tenancy, Meter for QoS

SaaS E.g. Meter for QoS –

Chargeback

PaaS

IaaS

The TOG SOA RA cross-cuts the matrix.

Map it to your cell/s

Cloud

Service Models

Deployment Models

Consum er I nt er faces

Business Pr ocesses

Ser vices

Ser vice Components

O per at ional Systems

Integration

Quality of Service

Inform

ation

Governance1. Use the Matrix to determine which cell

is appropriate. The Matrix has a set of

characteristics* which typify the Cloud.

These characteristics help identify

which cells apply to you.

2. Use the SOA RA to determine your

capabilities & ABBs

3. Ref ine it by applying the model and

Constraints

53

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The Enabler: The SOA RA can be used to derive

solution architectures1

Actionable Execution

The process of translation to an actionable asset is expressed through the mapping of business capabilities and constraints to the creation of an actionable SOA

1 Kumar (2012)

• Align

• Actionable

Bus Cap.

• Map to RA

• Quantifiable

SOA Cap.

TOG provides normative and prescriptive set

ABB • Map to Soln. Arch

• Constraints SBB

54

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Enabler: The SOA RA Metamodel

A Model

The metamodel provides for the realization of Solution Architectures

1 Kumar (2012), TOG (2011), Kumar & Arsanjani

Capabilities

55

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• Here‟s how you instantiate the SOA RA ….

• KPIs, NFRs and Business Capabilities help Constrain the RA

– They help to come to Architectural Decisions

– You pick Options based on these Constraints

– This helps Determine the required capabilities, ABBs and SBBs

Using It!1

• Align

• Actionable

Bus Cap.

• Map to RA

• Quantifiable

SOA Cap.

TOG provides normative and prescriptive set

ABB • Map to Soln. Arch

• Constraints SBB

The Business Perspective

1 Kumar (2012), Kumar & Arsanjani (2011/2012)

56

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The Rubirc: The OSIMM

The Business Perspective

1 Kumar (2012)

Silo

Level 1

Services

Level 4

Composite

Services

Level 5

Virtualized

Services

Level 6 Level 7

Dynamically

Re-Configurable

ServicesComponentized

Level 3

Integrated

Level 2

Modules ServicesProcess Integration

via Service

Dynamic Application

AssemblyComponentsObjectsApplications

Structured Analysis

& Design

Service Oriented

Modeling

Service Oriented

Modeling for

Infrastructure

Business Process

Modeling

Component Based

Development

Object Oriented

ModelingMethods

Isolated Business

Line Driven

Business provides &

consumes services

Outsourced

Services

BPM & BAM

Business capabilities

via context aware

services

Componentized

Business Functions

Business Process

IntegrationBusiness View Composed

Business Services

Service Oriented

Modeling

Applications

comprised of

composite services

LOB Platform

Specific

Project Based SOA

Environment

Virtual SOA

Environment:

Sense and Respond

Context-aware

Event-based:

Sense & Respond

Common Reusable

Infrastructure

Enterprise

StandardsInfrastructure &

Management

Monolithic

Architecture

Emerging

SOAGrid Enabled SOA

Dynamically Re-

Configurable

Architecture

Component

Architecture

Layered

ArchitectureArchitecture SOA

Common SOA

Environment

Ad hoc LOB IT

Strategy and

Governance

Emerging SOA

governance

SOA and IT

Infrastructure

Governance

alignment

Governance via

Policy

Common

Governance

Processes

IT

TransformationGovernance &

Organization

SOA and IT

Governance

Alignment

Application Specific

Data Solution

Information as a

ServiceVirtualized Data

Services

Semantic Data

Vocabularies

Canonical

Models.

LOB Specific

(Data subject areas

established)

InformationEnterprise Business

Data Dictionary &

Repository

Service Foundation Levels

57

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Business Perspective

1 Kumar (2012)

• The TOG SOA RA and OSIMM enable Roadmapping – The OSIMM forms a rubric to assess conformance

– The RA provides the what and how

– Used together, you can plot how to evolve an RA and respond to change

Using It! Roadmapping

Business Capabilities

• Align against Business Drivers

Technical Capabilities

• The SOA RA provides an alignment to ABBs and Layers

Roadmap

• Express as sets of capabilities

• Aligned to OSIMM dimensions

Phase Execution and Assessment

• Map SOA Cap to RA ABBs

• Derive SBB

• Assess against the OSIMM

• Rebalance and conduct next phase of Roadmap

58

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>ApTSi TM – Applying Technology to Solve Business Problems TM

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The Enabler: The SOA RA Meta-model

The Business Perspective

1 Kumar (2012)

Curre

nt

Futu

re

Curre

nt

59

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60

Overview: a world of SOAs

A slow but relentless revolution in which traditional technology management,

historically delivered only by an IT organization, is changing to be pervasive

technology use managed increasingly outside of IT’s direct control and

measured by boosting business results.

• Business Technology

The coalescing of the Business Ecosystems and SOA Ecosystems are Business Technology real