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High Return SOA Strategies: Realizing the Potential of SOA

DR Donald MowbrayDirector, Emerging Technologies,Oracle Europe Middle East & Africa

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Agenda

• IT Priorities• State of SOA• Path to SOA Success• Oracle’s SOA Offerings• Next Steps

IT Priorities

Shift beyond simply Cost Cutting to prepare for driving Growth & Innovation

New Products & Services

Guarantee Service LevelGrowth Cost

Customer Intimacy

Optimize Value Chain

Self Service

Automation

Consolidation

Source: CIO Magazine, 2009

IT Viewed as Strategic to Business Success More CIOs Report to CEOs than Before

Demand For IT To Improve Processes Increases In Downturn

44%Rising; business units need

help to automate and improve processes

40%Staying the same

16%Dropping; there are fewer

new projects being requested or approved

Source: Information Week; Outlook 2009

BPM & SOA Deliver Operational Efficiencies

Order Management Process

Customer Update

Partner Onboarding

Production Planning Order Entry

Inventory Management Billing

SOA Infrastructure

Shared Services

MAINFRAME

Growth & Innovation

CostReduction

35% reduction in recurring maintenance and support costs

“Agile SOA Methodology” delivers “quote to contract” automation in < 6 months

Saved 60%+ of typical integration costs

Integrate 11 acquisitions and build new business of bundling services with products

Sale have blossomed from $1.8 million in 1999 to $834 million in 2008

Increased customer satisfaction from 47% to 82%

Real Success, Proven Results with Oracle

Challenges

• Costly custom integrations

• Customization of existing processes

• Limited access to business services

Reduce Integration Costs

Challenges

• Measuring Impact Analysis

• Managing SLAs

• Change Management

Manage Growth with

Governance

Path to SOA Success

Challenges

• Multiple Tools Sets

• Multiple Container Deployment and Management

Improve Productivity

Improving Productivity

22” Widescreen LCD Monitor

Wireless Ergonomic Mouse

High Performance

Color Laser Printer

Ergonomic, wireless keyboard

1TB USB Hard Drive

Wireless Internet Video Camera

Imagine if . . .Application assembly was as easy as connecting hardware

• Rapid, Standards-based Development

Unified Customization

Unified Packaging & Lifecycle

Unified DT and RT Metadata

Unified Design Time

Mediation

BPEL orchestrationHuman Tasks

Web servicesand adapters

Business Rules

Spring /Java

SCA Composite Editor

Rules Editor Process Editor Routing Editor

Assembling Composite Applications Simplified Development Environment

11g Service Infrastructure

BusinessRulesMediator

Policy Manager

Optimized binding

BPEL HumanWorkflow

Oracle Service Bus

Common JCA-based connectivity infrastructure

Repository

Applicationcomposers

SOA Operations

IDE

BAM

B2B

Service Assembly, Orchestration

Service virtualization, Shared Service Gateway, Monitoring

Unified Service PlatformReduces Infrastructure Complexity

MAINFRAME

Web-basedconsole

14

BAM Dashboards

ADF (active RCF & DVT)

Mobile Devices

BAMCEPEDN

SOA composite

createSupplier

ADF page flowand BC

event

JMS

EDA delivers real-time event processing for monitoring, analyzing, and acting on business process optimization.

Analytic Views

Exception

Alerts

Integrated

Actions

Pattern

Matching

across

- time

- channels

Context

Enrichment

Pub-Sub

abstraction

Declarative

Rich

subscription

semantics

event

close loop

Other event sources(feeds, etc.)

Unified Platform for Services, Events & ProcessesEnd-to-end Real-Time Agility

Reducing Integration Costs

• 3 – 7x of license spent on services

• Costly Upgrades

• Proprietary skill sets

Integration of IT Systems

Process Management

Service Bus Registry & Repository

Service Management

B2B Integration

Oracle SOA & BPM Infrastructure

Custom, legacy, others, …

Packaged Integration Flows For Specific Applications & Processes

AIA Process Integration Packs

AIA Foundation Packs

Reference Process Models

Common Object Definitions & Standard Shared Services

SOA/BPM Framework & Methodology

Oracle Delivers Sustainable IntegrationOracle Application Integration Architecture (AIA)

AIA Foundation Pack

Pre-built Content(RPM/EBO/EBS)

Pre-Defined Reference Patterns

SOA/BPM Framework and Methodology

FMW Methodology

Integration Governance Tools

Developer Utilities…

5 Core Differentiators

Faster Implementations Reduced Risk Lower Integration Costs

Business Process Driven

Approach

Facilitates Fusion

Applications Adoption

Includes 1000+

Standardized

Services

Works with Any

Application

Proven by Oracle, Used

by Oracle

AIA Foundation PackAccelerates Time to Value

• 100+ Enterprise Business Objects• XSD (XML Schema Definition), • UML (Unified Modeling Language)

• 1000+ Enterprise Business Services• WSDL (Web Services Description Language)• Enterprise Business Messages

• Cross Industry Reference Process Models• Oracle BPA Suite Models (L0, L1, L2 and L3)• VCD, EPC and BPMN type models

• SOA/BPM Framework and Methodology• Business Service Repository• Error Handling and Diagnostic Framework• Test Harness Framework (Comp App Validation

System)• Developer productivity Utilities• Best Practices based programming Model

Cross Industry Foundation Pack

(Base Content and Tools)

Foundation Pack Extension for Comms:• Comms Enterprise Business Objects and related

Services• Industry specific L1-L3 Business Process Models• Industry Standards Compliant

Foundation Pack Extension for Utilities:• Utilities Enterprise Business Objects and related

Services• Industry specific L1-L3 Business Process Models• Industry Standards Compliant

Foundation Pack Extension for Insurance:• Insurance Enterprise Business Objects and related

Services• Industry specific L1-L3 Business Process Models• Industry Standards Compliant

Industry Specific Foundation Pack Extensions

(Industry Specific Process Models & EBO Content)

Available AIA Foundation PacksCross Industry and Industry Specific Foundation Packs

Silo’d E-Business Suite Processes

Silo’d Siebel Processes Example: Oracle AIA Order to Cash“Process Integration Pack”

• Create Opportunity• Create Quote/Order• Confirm Order…• Bill/Payment

• Configure Product• Check Availability• Pick, Pack and Ship• Billing and payment

processing…

Delivers predefined processes and integration flows (average 10-20):• Customer Management (6 integration flows)• Order Management (2 integration flows)• Product Management (3 integration flows)• Price List Management (2 integration flows)• Process Integration for Quotes (1 integration flow)• Services Calls (ATP Check, Credit Check, Payment Auth, Shipping

Charges)• Asset Management (3 integration flows)

Configure Product

Check Availability

Pick, Pack, Ship

Confirm Order

Bill/Payment

Create Quote/Order

AIA Process Integration Packs (PIPs)Designed for Specific Business Process – Reduces Costs & Effort

Process Integration Packs• Design to Release:(Agile PLM to Oracle EBS)• Design to Release:: Agile PLM to JDE E1• Design to Release: (Agile PLM to SAP)• Order to Cash: (Siebel to SAP)• Customer MDM: (UCM to SAP)• Order to Cash: (Siebel CRM to Oracle EBS Order

Management))• Trade Promotions Mgmt: (Siebel CRM to Oracle Trade

Mgmt)• Customer MDM (Siebel, EBS, UCM)• Product MDM (PIM, Siebel, EBS)• Lead to Order: (CRM On Demand to JDE World)• Lead to Order: (CRM On Demand to E-Business Suite)• Lead to Order (Oracle CRM On Demand to JDE E1)• Financial Consolidation (Oracle FAH to PeopleSoft)• Project Mgt: (Primavera to E-Business Suite)• Project Mgt: (Primavera to JD Edwards E1)• Workforce Administration for PSFT HR

Direct Integrations• Order to Ship (Oracle EBS to OTM)• Trade Management (Demantra, Siebel CRM Consumer

Goods)• Oracle Value Chain Planning (Demantra, JDE E1)• Oracle Value Chain Planning (Demantra, PSFT) Enterprise

Cross IndustryProcess Integration Packs• Communications

• Order to Bill (Siebel CRM to Oracle Comms BRM)

• Agent Assisted Billing Care (Siebel CRM to Comms BRM)

• Revenue Accounting (Oracle Comms BRM to Oracle EBS)

• Customer MDM (Siebel Comms, UCM)

• Logistics Service Providers• Financial Management (OTM to Oracle EBS)

• Order Management ( OTM, Oracle EBS and Siebel CRM)

• Driver Management (OTM and Oracle EBS)

• Retail Financial Operations Control • Oracle Retail to PeopleSoft

• Oracle Retail Merchandising to E-Business Suite

• Banking Account Originations (Siebel CRM to i-flex)

• Health Sciences: Oracle Clinical to Siebel Clinical• High Tech / Mfg: Siebel CRM to Oracle Incentive Compensation• Utilities Field Work: CC&B to MWM and WAM

Direct Integrations• Life Sciences: Call to Case (Siebel Life Sciences to Oracle AERS)

• Oracle Utilities : CC&B to PeopleSoft Enterprise Financials & CC&B to Oracle EBS and CC&B to JDE Financials

• Oracle ETM to PeopleSoft Enterprise Financials

• Oracle ETM to Oracle EBS Financials

Industry Specific

Available AIA Integration Packs35+ Cross Industry and Industry Specific Integration Packs

Challenges

Results

• Integrated:• Oracle Siebel CRM 8.0• Oracle Financials• Oracle PeopleSoft Human Resources• Oracle Communications

• Using• Oracle SOA Suite• AIA PIPs for Oracle Communications

• Accelerate time-to-market for Services and Products

• Leverage common services across multiple channels

• Simplify IT landscape and reduce IT costs • Automated Order to Billing Activation

process

• Reduced overall effort to go to market by 10-20%

• Deployment in consumer fiber services division in less than 6 months

• Accelerated time to market for new products and services by 30%

Solution

KPN Drives a Customer-Centric Approach and Simplifies IT Systems with Oracle AIA

Maintain

Upgrade

Implement

*Source: 5 year TCO Oracle Study with Telco Customers, 2008

50% Cost reduction

55% Cost reduction

20% Cost reduction Application Integration Architecture

Traditional custom integration

Average InitialImplementation

Time & Effort

Average Upgrade Time & Effort

AIA Case Study Results*

10 Months

7 Months

3 Months

1.5 Mos

30%

50%

AIA Case Study Results*

Drive Savings Throughout Integration Lifecycle

Managing Growth with Governance

Q: What, if anything, has or will inhibit SOA adoption at your company? (Infoworld)

Base: 592 (Among qualified respondents)

5%

3%

8%

3%

21%

24%

27%

33%

39%

39%

40%

50%

33%

0% 10% 20% 30% 40% 50% 60%

Nothing

Don't know

Other

Funding/budget issue

Identifying the new application or service to build

Difficulty determining where/how to start

No reference architecture

Lack of service infrastructure technology

Unresolved security issues

Incomplete/immature standards

Performance and reliability

Difficulty building an SOA roadmap

Lack of SOA governance

Lack of Governance Inhibits SOA Adoption

Oracle SOA Governance Framework

SOA Governance Definition Method SOA Governance Reference Model

Aligns People, Process, and Technology

Agile, Decision, and Accountability Framework

SOA GovernanceClosed-Loop Lifecycle Control

Develop

Retire Services

Design

Deploy &Secure

Manage Change

Analyze& Model

MonitorPolicies& SLAs

Design Time

SLA Management

Policy Management

Integrated SOA Governance Comprehensive Governance & Policy Management

Publish, Discover, Change Manage

Services

Federated Policy Manager

Provision Services & Monitor SLAs

Registry/Repository Policy Manager SOA Management Pack

Oracle acquires

• Background– In January 2010, Oracle announced the acquisition of SOA management

leader – AmberPoint– The AmberPoint solution has become part of Oracle’s FMW SOA

management and FMW WLS management– Heterogeneous support will be provided via Non-Oracle Middleware

management

• Extends our current SOA Management and WLS Management– Compelling value proposition– Highly differentiated– Complementary to existing Oracle products

• Legal Entity Combination 1st April 2010

SOA Management & Business Transaction Management

• Live tracking of individual transactions• Spans all interacting tiers and applications, beyond a single app server

– Encompasses servers, applications, ESB's, OSB, appliances, and more

• Leverages transaction content for business visibility and interactive management• Non-invasive approach avoids modifying applications or messages

– No "tracers" or headers required– Requires no coding/deployment cycle

• Unique patent pending "fingerprinting“ algorithm– Doesn't disrupt applications or messaging systems– Overcomes "uncooperative" components beyond management control

Process Engine Service Bus

End-to-End, Application Level View

         

6000+ SOA CustomersSample List

Oracle Product OfferingsComplete. Open. Integrated

Unified Events and Services,

Process Execution

Methodology Driven Process Design

Service Registry, Repository, & Management

SOA Building Blocks &

Productized Integrations

SOA Governance

BPA Suite AIA Foundation Packs & PIPS

Application Infrastructure for SOA Composite Projects MQ

Application Infrastructure for Back-End Application Integration Projects MQ

Integrated SOA Governance Technology Sets MQ

Application Infrastructure for New Semantic SOA Application Projects MQ

Best Complex Event Processing Solution

Forrester Wave: Enterprise Service Bus

Leader

“Hands down, the most comprehensive and easy to use SOA product on the market today”

Best Web Services Orchestration Solution

Leader

LeaderLeader

Leader

Oracle SOA & BPM ProductsBroad Industry Recognition for Innovation

Oracle Fusion MiddlewareComplete, Integrated, Hot-Pluggable, Best-of-Breed

Next StepsTake the SOA & BPM Assessments – oracle.com/soa

• Examination– Detailed survey focused on key

process and architecture domains

• Diagnosis– Based on complex analytics results– Compared vs. peer group

• Prescription• Actions to Consider - Go forward

plan based on results• Potential Business Impact - Best

practices identified and utilized