The Architect’s Planning

Guide for SOA and BPM

Paul C. Brown
Principal Software Architect, TIBCO
In the Beginning, Architecture was Simple…

… and evolved slowly

Transport Technology Helped Communities to Emerge…

… and grow
Better Infrastructure Fostered Denser Communities…

… and more of them

So How Do You Organize and Manage All This?

How do you ensure you get the business results you want?
• The desired business benefit
• Within cost constraints
• While preserving the flexibility to address tomorrow’s needs
- i.e. avoid the “big dig” and evolve gracefully
Enterprises are shifting to cross-functional business processes

Functional Units
Customer Sales and Production Manu- Inventory & Finance & HR
Relationship Marketing Planning facturing Logistics
Management

Sales Proposal Management

Processes

Employee Onboarding

Order to Cash

CRM SFA Product product SCM product DB LMS B2B ERP

Inv
ERP MES
MGMT

Source: Forrester Research

Your business spans your organization

People
NEMS Data North Administrator Supervisor NEMS MBS
Data

Retrieve CSN
Validate Allocate
Transfers Transfers Update Rework Update
Work
MBS Billing

Systems

MS Access SAP Seibel Excel MS Email MS Word

The Challenges Are Diverse

New skill sets required

Enterprise adoption poses many complications

Knowledge is scattered throughout the enterprise

Sponsorship

Ownership and control

Governance, Governance, Governance

Political conflict

Business and IT alignment

Control vs. alignment

IT talks about services

Business talks about processes
Today’s Business Processes Involve Many Systems

EAI and ETL tie systems together

Patterns of interaction define business processes

User Presentation Presentation Presentation

Business Logic EAI Business Logic EAI Business Logic

Data ETL Data ETL Data

Platform Infrastructure
We Tie Them Together But … Where’s the Business Process?

Presentation Presentation Presentation
Anything can talk to

Business Logic EAI Business Logic EAI Business Logic anything, but…
Data ETL Data ETL Data
The relationship
Mainframe Platform Infrastructure
between business
processes and
Presentation Presentation Presentation
E
systems is obscure
Business Logic EAI Business Logic EAI Business Logic A
E I

The IT infrastructure
T
L
Data ETL Data ETL Data has become fragile
Unix Platform Infrastructure • Difficult to manage
Presentation Presentation Presentation • Costly to maintain
Business Logic EAI Business Logic EAI Business Logic
• Difficult to evolve
Data ETL Data ETL Data
IT is perceived as a
Windows Platform Infrastructure
burden, not an asset
SOA and BPM Refine The Systems Structure

Introduces a separation between processes and services

• Explicitly identify a business process as an architectural concept

Processes are assembled from services

• Ideally, the same service gets used in multiple business
processes
For Success, A Total Architecture Perspective is Required

Business Processes
• Sales order management
• Inventory management
• Accounting

People
• Participants in the business
processes

Information
• The information driving the
business processes

Systems
• Computers, networks,
applications, infrastructure
supporting the business
processes

Business Purpose IT can’t do this alone!
• The focal point for all work
TIBCO BPM/SOA Execution Model

Execution Strategy Solutions & Operations

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Define & Analyze
Develop Vision Define & Design,
RepeatBuildfor
Implement Process & Operate the
& Implement & Deploy
Program Organization &
Technical Develop each project
Business Business
Infrastructure & Project
Roadmap Governance Process
Standards Roadmap

Continuous Improvement
Governance
Project Life Cycle Management and Control
Measure Business, IT and Organizational KPIs & SLAs / Analyze ROI
 Vision

Focus on business processes first

• They are the source of business value
• They are the glue that binds the people and systemstogether
Lack of Overall Process Responsibility

Services and Integrations that Span Silos

Shrinking
Time
Frames

Data Center

Front-Office Application Application BPM/SOA Application External

Applications Silo Silo Silo Silo Applications

Communications and Services Infrastructure

 Vision

Separate service access mediation from services

Service access control based on

Security

Quality-of-service agreements

Routing of service requests

Load distribution across multiple service providers

Logging of service utilization

Performance and SLA measurements
Vision

Acknowledge different types of processes

• Unmanaged Processes
- Components/services are “hard wired” together to form the actual process
- One component’s results become the inputs to the next component
- Proactive monitoring and breakdown recovery is required for high availability
• Managed/Orchestrated Processes
- One component coordinates the work of other components and services
- Manager can monitor process status
- The process of starting the manager is always an unmanaged process!
Vision

Separate processes and presentation

• Sometimes you want to make the same process available via
different channels
- Avoid duplicating the business rules
• Some of the channels may not be conventional presentations
- May provide web-service access
• In such cases, you want to make the process itself into a service
- Accessible from a variety of presentation components

Web Browser Interface

Fat client Interface

Presentation Cell Phone/PDA Interface
Presentation
Process EDI Channel Interface
Business Logic
Service Web Services Interface
Data
Data
Platform Infrastructure
Platform Infrastructure
Vision

Embrace total architecture

• SOA and BPM provide many opportunities to organize and
manage the enterprise

The challenges are organizational as well as technical
Web Browser Interface

Fat client Interface

Cell Phone/PDA Interface

EDI Channel Interface

Presentation Web Services Interface

Presentation
Process
Managed Processes (BPM)
Business Logic
Service
Orchestrated Processes (BPEL)
Data
Data
Hard-Wired Processes
Platform Infrastructure
Platform Infrastructure

Service Access Mediation

Service Operations
Energy Australia: Integration with National Energy Markets

Challenges
• Reduce end customer costs
Industry • Manage the complexity of customer participation in deregulated national
 Energy Utility markets
• Reduce the number of exceptions
Products
 TIBCO iProcess Suite • Increase the efficiency of exception handling
 TIBCO Business Works
 TIBCO Adapters (ADB,
SAP)

• More agile business: IT prepared to participate in a new market in just 4-5

months – ahead of business need!
Benefits

• Process automation ensures that the correct business rules, applications

and users are involved to fulfill each request
• Fully managed energy transactions, including:
• Validation, routing, audit trail, exception handling & management,
SLA management
Vision Organization

Many of our development processes have become

degenerate
• They assume a single system is being worked on

Requirements Development QA Production

Vision Organization

Many of our development processes have become

degenerate
• They assume a single system is being worked on

Requirements Development QA Production

Vision Organization

Governance at work!

The intent of this slide is NOT to show process, but only key project roles and activities
Team Members from All Silos Must Be Included

3 key leadership
roles needed on
every project
 Lehman Brothers: Broad Process Improvement Initiative
....1

Processes Challenges
Industry
 Financial Services
• Increase speed and accuracy of processes
• Reduce processing costs
Products
 TIBCO iProcess Suite • Improve visibility and manageability of processes
 TIBCO BusinessWorks
 TIBCO EMS
Impacted Processes (partial list):

Mortgage loan origination, including underwriting

Mortgage loan servicing

Capital market trade approval

Capital market trade processing and settlement
Keys

BPM-Focused CoE
• Lesson learned: partner with IT!

• Cost avoidance – reduce costs associated with untimely issue resolution.

Estimated $600k annual savings.
Benefits

• Cost avoidance – reduce incremental headcount required to support

volume growth. $1.5mm savings over two years.
• Faster and leaner trade approval and confirmation process
• Process improvements driven by KPI analysis
• Increased customer satisfaction through more accurate processing of
loan applications
The Sponsor Does Not Have Time for Many Projects
So what’s needed in terms of organizational structure?

BPM CoE / Project Office
Enterprise Architecture

Has the cross-silo view needed for
Has cross project and process view
solution delivery needed for solution delivery

Manages silo-spanning projects
Responsible for:

Infrastructure architecture

Director must

Systems architecture

Have political clout

Data architecture

Be a mediator who can navigate
the political landscape
Operations architecture

Be empowered to make decisions

Directly liaison with the business

BPM CoE and EA

are both critical groups
in delivering solutions
QWEST: Flexibility In An Evolving Market

Industry •Market pressures require new products and combinations of products

Challenges
 Telecommunications (e.g. VoIP, broadband, TV…) to be delivered quickly, in a cost effective
and high quality manner.
Products
 TIBCO iProcess Suite
 TIBCO BusinessWorks •Inefficient order processing can result in a 10x increase in processing
 TIBCO EMS costs

Processes Order placement and service provisioning for wholesale customers

Special emphasis on handling:
• New product (bundle) introduction
• Execution of special pricing deals
Keys

• Common work consolidated into a BPM and SOA CoE

• Reduced held orders (exception based processes) by 10%

Benefits

• Reduced cycle time by 20%

• Planned 8% reduction in staff
Total Architecture Summary

Keep the business process focus

• It is the source of business value

BPM and SOA provide opportunities

The major challenges are
organizational Web Browser Interface

Fat client Interface

Cell Phone/PDA Interface

EDI Channel Interface

Presentation Web Services Interface

Presentation
Process
Managed Processes (BPM)
Business Logic
Service
Orchestrated Processes (BPEL)
Data
Data
Hard-Wired Processes
Platform Infrastructure
Platform Infrastructure

Service Access Mediation

Service Operations
It’s Not Just TIBCO Customers

BP Trends
Report 2007
For More Information on Total Architecture…

Succeeding with SOA

• The business and organizational
perspective
• For CxOs, managers, architects

Implementing SOA
• Creating the total architecture
• For enterprise and project architects, CTOs

TIBCO Accelerated Value Framework (AVF)

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Define & Analyze
Develop Vision Define & Design, Build
Implement Process & Operate the
& Implement & Deploy
Technical Develop Business
Program Organization & Business
Infrastructure & Project
Roadmap Governance Process
Standards Roadmap
ActiveMatrix available for evaluation download