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Service Engineering from a Business Perspective
MSI 2008
OldenburgSeptember 24, 2008
Marc LankhorstGroup Leader Service ArchitecturesTelematica Instituut
Agenda
• Introduction
• Trends in the service sector
• Trends in IT
• Service thinking
• Research challenges
• Model-based service engineering
• Conclusions
Telematica Instituut
• Independent, non-profit research institute
• Founded & funded by companies, the Dutch
government, and universities
• To create impact with IT innovation
• By translating fundamental results into practical
applications
• In multi-party projects together with industry and
academia
Service Economy
• Western Europe’s economy is increasingly based on services
– In the Netherlands, 70% of the GNP is service-related
– Trade, logistics, finance, healthcare, legal, consulting, IT, etc. etc.
• EU directive on services (“Bolkestein Directive”) to create a single, EU-wide market for services
– Offers many opportunities
Trends in the Service Sector
• Focus on core competencies
– do what you do best
• Flexibility through sourcing
– global integration
• Agility
– change drives the business
• Differentiation, innovation & disruption
– being first in a market is increasingly important
Trends in Service Sector (cont.)
• “Head+tail” companies (e.g. Nike)– Branding & design = head– Sales = tail– Production, logistics, etc. are all sourced from
others
• Mobile Virtual Network Operators (e.g. Aldi, Tchibo)
• Banks outsource back-offices
• White-label mortgage servicers
• X-ray pictures evaluated in India
• New business models (e.g. iPod+iTunes)
⇒ Highly complex networks of cooperating companies
IT Status Quo
Traditional approach to IT cannot keep up with these business trends
• Slow changes through in-house software development and management
• High maintenance sosts
• Duplication of functionality and data (silos)
• Vendor lock-in
• Closed systems, no online access
• Nearly unmanageable size and complexity
Traditional Silos
Process 1
Application 1
Organization 1
Process n
Application n
Organization n
Process 2
Application 2
Organization 2
Trends in IT
• Enterprise Architecture (EA)
• Business Process Management (BPM)
• Software as a Service (SaaS) / Software + Services (S+S)
• Service-Oriented Architecture (SOA)
• Service technology (Web services, WS-BPEL, ..)
• Model Driven Architecture / Development (MDA, MDD)
Service Oriented Architecture (SOA)
A software architecture style that conforms to the principles of service orientation
• Service as the unit of design
• Aimed at reuse
• Concerns design, not technology
• Demands new design methods
• Impact on IT as a whole and beyond– Not limited to individual projects or applications– Organization structure and culture may even be
impacted
Software as a Service (SaaS)
A model of software delivery in which a service provider takes care of running & maintaining the software and supporting the customer
• Use and management of software over the Web
• Provider owns, deploys and maintains software and often also underlying IT infrastructure (but infrastructure-as-a-service also on the rise…)
• Multi-tenant architecture
• Pay-per-use/user or subscription revenue model
Examples SaaS
Expected Advantages of SaaS
• Predictable and lower costs
• Higher quality
• Shorter time to market
• Lower IT-related risks
• Less need for specialized and scarce IT expertise
• Focus on core competencies
• Greater agility, easier to switch vendors
• Service provider has a direct stake in service consumer’s success (through pay-per-use)
Service and Service
Business trends• Focus on core competencies• Sourcing flexibility• Agility• Differentiation• Efficiency
IT trends• SOA• EA, BPM• MDA• SaaS, S+S• Web services
BusinessService
SoftwareService
Service
“Unit of functionality that offersa relevant added value”
Business trends• Focus on core competencies• Sourcing flexibility• Agility• Differentiation• Efficiency
IT trends• SOA• EA, BPM• MDA• SaaS, S+S• Web services
SoftwareService
BusinessService
Service
Servicecloud
Servicecloud
Service Thinking
Service
demand
supply
SOAprinciples of service orientation
SaaSin-/out-
sourcing
Layers of Cloud Cover
Business servicesBusiness services
Software servicesSoftware services
Business modelsBusiness models
service service
service service
model modelIm
plem
enta
tion
Governance
Conclusions So Far
• Developments in services sector and ITdemand a new approach:
“Service thinking”
• Integrated approach for developing:– business services (customer offerings)– supporting software (and other IT) services
• But how do we get there?– What are the challenges?– What instruments do we need?
Many Challenges
• How do you describe and find services?• How do you reuse services?• Which properties of services are important?• How do you combine and link services in a meaningful
way?• How do you structure a service network?• How do you manage risk in a service ecosystem?• ...
Core Research Issues
• Designing the many aspects of services
– Coherent descriptions needed
• Realizing these services
– Agility is key
• Creating business value with these services
– Abstract from technology issues
• Model-based approach– Higher quality, fewer errors
– Faster implementation: code generation, using models at run-time
– Off-line analysis and testing
Method for Service Development
• Comprises a.o. design of– business models, ecosystems of service providers– collaboration processes, agreements, contracts– software services– information models, semantics– IT infrastructure– and much more
• Simple step-by-step design process• Analysis techniques for costs/benefits, risks, impact of
changes, etc.• Guidelines, best practices, patterns, examples
Many Aspects and Domains
• Many domains and aspects need to be designed• These are not stand-alone, but related in various ways
contract
risk
value
performance implementation execution
constraints
regulations
cost design
revenue requirements
contract
risk
value
performance implementation execution
constraints
regulations
cost design
revenue requirements
contract
risk
value
performance implementation execution
constraints
regulations
cost design
revenue requirements
• Model transformations may contribute to a solution
“Traditional” Model-Driven Development
service specification
service design
service user
transformation specification
transformation specification
Service architect
Service Designer
operational service
Development Dashboard
• Navigating through development process• Coordinating service developers and tools• Managing relations between aspect models• Realizing services in software code, workflow, etc.
Conclusions (1)
• Services offer many opportunities
– to IT
– but especially to the business
• Two trends are converging:
– SOA and SaaS
• Radically new ways of doing business are combined with a distributed, heterogeneous IT environment
• Services have many aspects that need to be addressed in an integrated manner
Conclusions (2)
• Needed:
– A model-based “toolbox” for service design
– A method and coordinated set of software tools
– that integrate the many business and IT aspects
• The Telematica Instituut is working on elements of such a toolbox, with partners from business, academia and government
More information?
Marc LankhorstTelematica InstituutPostbus 5897500 AN EnschedeMarc Lankhorst@telin.nl053-4850485http://www.telin.nlhttp://saas.telin.nl