Keys To Successful Governance with SOA

1 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Dr Mohamad AfsharSr. Director, Product Management Oracle Corporation

SessionTitle:Keys to Successful Governance with SOA

Welcome

to Transformation and Innovation 2007 The Business Transformation Conference

Ben MorelandDirector, Foundation ServicesThe Hartford

2 May 22-24, 2007


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“Specifying the decision rights and accountability framework to

encourage desirable behavior in the use of IT.”

Peter Weill Professor, MIT

3 May 22-24, 2007


leadership and organisational structures and processes that ensure that the organisation’s IT sustains and extends the organisation’s strategies and objectives

IT Governance Institute

Delivery of value to the business and mitigation of risk: mitigation through accountability in the enterprise; driven by strategic alignment

Organizational structures and processes that ensure organizations IT sustains and extends the organizations strategy and objectives

Not about making specific IT decisions (management does that), but rather determines which individuals and roles with the company systematically make and contribute to those decisions.

Establish chains of responsibility authority and communication to empower people (decision rights)And establish measurement and policy control mechanisms to enable people to carry out their roles and responsibilities

Governance is about getting people to do the right thing at the right time in the right way

4 May 22-24, 2007


Marks of Good IT Governance With SOA

Differentiated Business Strategies Enabled by SOA

Business Objectives for Evaluating SOA Investments

Executives Engaged and Can Describe Arrangements

Stable with Few Changes Year to Year

Well-Defined Formal IT Exception Processes

Multiple Formal Communications Methods to Engage Business Leaders

5 May 22-24, 2007


Where Do You Stand?

? SOA by Accident

IT Plan Non Existent or Not Aligned with Business PlanIT Reactive to Business InitiativesNo SOA StrategyNo SOA Roadmap Silos of SOA

SOA By Design

IT Plans Aligned with Business Plans and Initiatives SOA Strategy that is Communicated WidelyWell-Defined Business Benefits Sought from SOA StrategySOA Roadmap Aligned to Deliver on Business and SOA Strategy

6 May 22-24, 2007


Delivery With Control &Reduced Risk

Governance with SOA

Governance is Key to Delivering on SOA by Design

Business Strategy

SOA Strategy

SOA Roadmap

Business Plan

EA Strategy

7 May 22-24, 2007


Constituents of a SOA RoadmapSOA Strategy

SOA Roadmap Planning HelpsAvoid Duplicated Effort, Realize SOA Benefits Earlier and Support Improved Ability to Deliver Projects to SOA

Risk Identificationand Mitigation Against them

Capability Developmentto Improve Abilityto Deliver on SOA Project

Leverage Services PortfolioMaximize ReuseAlign with Platform Availability

SOA Requires Competence in a Range of Areas

Source of RiskHow to Lessen Impact

Business ServicesPortfolio Plan

Which Services, When

Buy-in from BusinessLeverage Projects to Build InfrastructureSOA Benefits Expected

Risk Profile For Projects

SOA Requires Capability Planning

Prioritized ProjectsIn Project Portfolio

May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference8

Essence of Governance with SOA

Processes(How)

Decisions(Who)

Policies(What)

GOVERNANCE with SOA ADDRESSES•What decisions must be made for effective management•Who should make those decisions and who has input rights?•How will the decisions be formed and enacted

May 22-24, 2007


Key Leverage Points for SOA Governance | Prevalent View

Financial

PortfolioPeople

Operations

Projects /ServiceLifecycle

Technology Architecture

Service Usage Fees

Service Funding Model

Projects

Applications

Platform Funding Business Services

Roles & Responsibilities

Service Ownership

EA Group

Service & Process Owners

Service Lifecycle Gov

Shared Artifacts

Capacity Planning

Enforce Service Levels

Enforce Policies

Strategic SOA Platform

Shared Foundation Srvcs

Enforce Platform Decisions

Reference Architectures

Architectural Standards

Blueprints & Patterns

DRIVEN BY EXECUTIVES

Information

Data Standards

Data Quality

Data Ownership

May 22-24, 2007


Key Leverage Points for SOA Governance | Full Picture

Financial

PortfolioPeople

Operations

Projects


Service Usage Fees


Projects

Applications



Service Ownership

EA Group



Shared Artifacts

Capacity Planning


Enforce Policies








Information

Data Standards

Data Quality

Data Ownership

11 May 22-24, 2007


Financial SOA may require governance of new policies and

procedures around SOA Funding and Chargebacks

Distribution of Budget– Funding the SOA Journey and Programs

Allocation and Funding of SOA Software License, Hardware– Based on Priorities

SOA Center of Excellence Funding– Allocating cost of SMEs– Covering costs of outside consulting

Defining the Service Usage Fee Model– Chargebacks for shared services usage

• Foundational, architectural services such as Error Handling, Notification, etc.

• Business Services built by projects such as Customer Lookup, Item Validation, etc.

– Allocating support costs (operations, enhancement, bug fix) of shared services

12 May 22-24, 2007


Portfolio Successful SOA Governance requires alignment of

the IT Portfolio with the SOA Strategy and Roadmap

Application Portfolio Planning– Ensure application lifecycles (upgrades, enhancements,

maintenance, sunset) are consistent with the SOA Strategy

Infrastructure and Technology Portfolio Planning– Ensure hardware and software agendas are consistent

with the SOA StrategyProject Portfolio Management

– Create projects to align applications and infrastructure to the milestones and goals of the SOA Roadmap

Services Portfolio Planning– Business Services Portfolio– Foundational/Technical Services Portfolio

13 May 22-24, 2007


People SOA is not only a Technology Shift. Policies governing

employees must be included in SOA Governance

Clarity Around Roles and Responsibilities– Process Ownership – NEW – Service Ownership – NEW– Architecture – Development Approach - NEW– Testing Approach– Operations– Training

Enable and Support People Making the Change- Organize around the SOA Vision

• Knowledge Centers – SOA CoEs• Enterprise Architecture Group• Cross Project Governance Board• Foster Innovation and Creativity

– Demonstrate Leadership• Affirm Executive Buy in and

Support• Monitor progress• Provide Rewards/Incentives

14 May 22-24, 2007


Projects

Project Prioritization– Align with Strategy/Roadmap

Ongoing Service Ownership and Management

Consistency in Service Implementation– Design, Code Reviews

Create, Store, Find Shared Artifacts

Utilization Shared Services

Service Lifecycle Governance

Business Process Lifecycle Governance

Policies, processes and decisions must guide the projects designed to deliver on the SOA Vision

15 May 22-24, 2007


Service Lifecycle

Service Identification and Design– Services Identification Framework– Service Interface Design– Approving a Service

Service Development– Consistency in Service Implementation – Building for Reuse

Service Deployment– Publishing a Service

Service Operations– Policies Relating to Services - Security– Service Change Requests– Service Versioning– Service Retirement/Sunset

Proper Service Lifecycle Governance is a critical component of SOA success. Without this, you may have services and SOA technology, but you will not realize benefits of an enterprise Service Oriented Architecture

16 May 22-24, 2007


Architecture

Standards Compliance– WSDLs WS-I Compliance– Architecture Assessments– Review & Change Processes

Reference Architecture(s)Guidelines

– Service Interface Design– What to Repeat (patterns)– What to Share (reuse)

Blueprints– Multi-Channel

Patterns– Data Integration

Architecture Documents– Goals, Use Cases, Views, Standards

SOA Architecture provides the foundation to ensure consistent, shareable services

17 May 22-24, 2007


Technology

Select technical technical solutions that adhere to industry standards

Platforms and Infrastructures should Evolve

– Aligned with Service Portfolio Plan and SOA Roadmap

Build Consensus to Migrate to an SOA Platform

Enforce Platform Decision Across IT Teams

Manage Timing and Implementation of SOA Platform Enhancements

Design and Build Shared Foundation Services as Part of SOA Infrastructure

Technology must be identified, sourced and managed like any other component of SOA - It is not a one-time “fire-and-forget” decision

18 May 22-24, 2007


Operations

Develop an Operational Model for Services

Formalize Capacity Monitoring and Planning

Control Service Execution– Define/Enforce Service Levels– Define/Enforce Runtime Policies

(Security, Access, Logging, Billing)

SOA Infrastructure Monitoring and Management

Polices for Review and Handling of Exceptions and Violations

Operations of an SOA could be different than standard IT operations. Changes to existing, or even new policies may be needed to govern Operations for a SOA

19 May 22-24, 2007


Information

Establish Data Ownership and Stewardship Model:– Define Roles & Responsibilities for Data

Consumers and Produces

– Set Data Standards

Build a Data Services Architecture

Mandate Data Access:– Schemas for Exchanging Core Enterprise Data

– Services as Single Sources of Truth Key Enterprise Entities

– Policies for Access Control

Policies for Resolving Data Conflicts to Improve Data Quality

Policies for Ensuring Quality of Service

Performance Tuning of Data Services for Multiple Application Scenarios

Unless data quality and interoperability issues are addressed, SOA apps will rest on top of a very weak foundation.

20 May 22-24, 2007


6 Steps to Successful SOA Governance

1. Define Goals and Strategies

3. Define Metrics

5. Analyze and ImproveExisting Processes 4. Put Governance

Mechanisms in Place

2. Define Standards, Policies, Procedures Around Financial, Portfolio, Project, Service, etc

These 6 steps allow a company to incrementally developand mature their overall SOA and thus business goals

6. Refine and Go to the Next Level of SOA Maturity

21 May 22-24, 2007


Goals & Strategies

Business and IT Goals

SOA Strategy

Existing Capabilities

SOA Roadmap

Journey Management

22 May 22-24, 2007


Create Standards, Policies & Processes

Communicate

Executives

Developers

Architects

Administrators

IT Managers

Business Analysts

Feedback & Monitor

EnterpriseArchitects

GovernanceBoard

Policies

Create

Manage

Issues:•Decision Rights•Input Rights•Exception Management

23 May 22-24, 2007


Define Metrics for Success

Why Measure ? –Ensure Business Goals–Deliver SOA Strategy

What to Measure ? –standards, compliance, # of projects adhering to processes, #

of reference architectures, usability of reference architectures, # of exceptions, # of services created, # of reusable services, service reuse metrics, etc

How to Measure ?–What can be automated?–What can be easily captured?

24 May 22-24, 2007


Put Governance Mechanisms in Place1. Decision, Policies, Processes


Financial

PortfolioPeople

OperationsProjects


Service Usage Fees


Projects

Applications



Service Ownership

EA Group



Shared Artifacts

Capacity Planning


Enforce Policies







Information

Data Standards

Data Quality

Data Ownership

25 May 22-24, 2007


Put Governance Mechanisms in Place2. Mechanisms

Vision for Governance Endorsed by Executives – Force Behavioral Change – Ensure Participation of Appropriate People

Awareness– Communication & Collaboration– Center of Excellence

Roles and Responsibilities– Financial, Portfolio, People, Architecture, Projects, Technology, etc– Education Strategies

Processes (Automated) – Capture and Report on Metrics

Administration, Monitoring and Enforcement– Exceptions Handling Mechanisms– Upward Communication when Policies are not followed

27 May 22-24, 2007


Analyze and Improve

Metrics on Governance Process Itself

Metrics on Progress of Goals and Roadmap– How Often are People Going off the Path?– Do they Tell us When they do? – Do we need to change restrictive policies?– Do we need to have stricter enforcement?

What do you do with the Information?

Make Decisions

Create Feedback Loop

28 May 22-24, 2007


Refine and Go to the Next Maturity Level

SOA Strategies, Goals, Objectives Met for this SOA Maturity Level level

Refine SOA Strategies, Goals, Objectives for Current Maturity Level

Create New SOA Strategies, Goals, Objectives for next SOA Maturity Level

29 May 22-24, 2007


30 May 22-24, 2007


31 May 22-24, 2007


The Hartford Financial Services Group, Inc.

Founded in 1810

One of the largest investment and insurance companies in the United States.

Fortune 100 company

30,000 employees

Two Companies:

– Hartford P&C – Auto, Home, Business insurance– Hartford Life – investment plans, Life insurance, Group benefits

32 May 22-24, 2007


Step 1: Goals & Strategies – Level 1

Business Goals– Reduce TCO– Speed To Market– Ease of Doing Business

SOA Roadmap– Project-based (WSM & UDDI Registry selected)

Governance– “Do No Harm”

33 May 22-24, 2007


Step 2: Create Standards, Policies & Processes – Level 1

Standards- SOAP 1.1, XML 1.0, UDDI 2.0, WSDL 1.1

First SOA initiatives were project-based SOA governance was at the project (LOB) level

Governance processes created to assess projects against Reference Architecture (Application)

Aligned LOB architects and project scoring

Created IT Roadmaps and Blueprints

PCAC formed

34 May 22-24, 2007


Step 3: Define Metrics – Level 1

At SOA MM level 1, The Hartford didn’t have any explicit metrics other than project-based metrics

Discussions around SOA metrics began

No reusability at this point

35 May 22-24, 2007


Step 4: Put Governance Mechanisms in Place – Level 1

PCAC put in place to score all projects against Reference Architecture primarily and LOB Roadmap and Blueprint if they existed

Scoring was a learning exercise at level 1

Assessment process being defined

36 May 22-24, 2007


Step 5: Analyze and Improve – Level 1

Analyzed where we were against business goalsFindings:

– Architecture standards applied inconsistently across LOBs– Projects going forward that were not moving the overall architecture

in the right direction.– Initial services deployed showed promise of re-usability with the one

LOB

Are you moving forward or closer to your goals?– The eB&T organization decided:

• Centralize the enterprise architects and SOA practice (Foundation Services group)

• Begin to push back on negatively scored projects• Continue with the SOA initiatives (still project based) due to early

success (primarily insight into SEMCI application)

37 May 22-24, 2007


Step 1: Goals & Strategies – Level 2

Business Goals (same):– Reduce TCO

– Speed To Market

– Ease of Doing Business

SOA Roadmap– Project-based (WS-addressing, WS-Security, Central EA

organization)

– Align LOB project decisions with architecture recommendations

Governance– Score projects to influence business decisions

– Track all projects assessed and not assessed

– Track all projects with and without “architects”

38 May 22-24, 2007


Step 2: Create Standards, Policies & Processes – Level 2

Standards (added)

- WS-Addressing, WS-Security, Reference Architecture 2.0

Governance processes improved to assess projects against the Reference Architecture (SOA based) based on CIOs feedback

Project assessments more mature

Enterprise Architecture group formed under CTO (also new)

SOA governance through EA Foundation Services group, but still project-based

39 May 22-24, 2007


Step 3: Define Metrics – Level 2

# of services (course-grained vs fine-grained)

Service Sharability, Component Reusability

# of projects assessed and not assessed

# of projects with assigned “architects” and without architects

Cost savings on projects based on architecture assessment and re-use

40 May 22-24, 2007


Step 4: Put Governance Mechanisms in Place – Level 2

Central EA organization (ASC) for IT Governance

Projects scored and evaluated to “+”, “0”, “-”

Projects assessed as short term adequate, near-long term adequate and long term adequate

CIOs agree to “tax” if negatively scored project pushed through to delivery

SAD course developed and delivered to all architects

Service Policies

- WS-Addressing and “contract ID” required for all services

41 May 22-24, 2007


Step 5: Analyze and Improve – Level 2

Analyzed where we were against business goals.Findings:

– Architecture standards applied consistently across LOBs– Some projects still being pushed forward with negative scores, but

now high level discussions and justification at executive level– Reusability in certain LOBs very high, others low– Still not addressing “Ease of doing business”– TCO lowered through SOA efficiencies in maintenance

Are you moving forward or closer to your goals?– The eB&T organization decided:

• 5 year business & IT roadmap developed• Foundational projects• Need better metrics

42 May 22-24, 2007


SOA Governance - Level 3

Portfolio transformation program identifying high value business services

Standards committee and Services committee formed to formalize standards maturity and P&C SOA policies and procedures

Service criteria and processes defined

Large number of new metrics with constant feedback from CIOs

No projects may be considered without EA involvement

Need SOA Governance automation to scale

43 May 22-24, 2007


Summary

• Increasing SOA Maturity Only Achievable through SOA Governance

• SOA Governance Requires More than Technology

• Build on Existing IT Governance Mechanisms

• Executive Buy-In Vital to Catalyze Change Required for SOA

• Complexity of SOA Governance Proportional to Company Size

44 May 22-24, 2007


Dr Mohamad AfsharSr. Director, Product Management Oracle Corporation

Contact Information:[email protected]@theHartford.com

Ben MorelandDirector, Foundation ServicesThe Hartford

Thank You

Keys To Successful Governance with SOA

Business

Transcript of Keys To Successful Governance with SOA