Connecting Business and IT

1. Connecting Business and IT Finally (?) deliver on lots of promises?

2. Today

4. 10 Years Later

5. Technology

6. Operating model X-Engineering Corporate Re-Engineering TQM

7. Biz Applications ERP, CRM, SCM MRP, MRP II Finance, HR

8. Destination: Connected Systems?Service-orientation appears to be agreeable to all Biz Applications Technology Operating Model

9. Job Merc. Stage Shuttle Feed Store SQL DSS Cache FTP HTTP SERVERS STORAGE NETWORKING Connected SystemsCreating a living blueprint of a system Create a definition of a new or existing System Operate the System based on its definition Resources Required Operations Capabilities Operational Policies Automatically allocate and configure resources using its definition SDM Document

10. System Definition Model Transparency/Visibility Applications Application Hosting Logical Machines & Network Topology Hardware

11. InfrastructureDesigner CustomDesigners ClassDesigner SOADesigner Domain Specific Tools • Tailored visual designers for problem domains • Rich set of models • Tools and framework available today

12. Types Of Models Business Capabilities System Requirements Architectural Features Business Capabilities Business Processes Service Models Solution Structure Business Processes Business Entities

13. BizTalk Schedules & Rules User InterfaceProcess Logical Business Entities Rules, Operations Deployment Units Models Business Capabilities A Graph of Interrelated Viewpoints Business Processes and Entities Implementable Business Processes and Entities Manual Processes Services, Messages, Applications, Endpoints Logical Data Center Host Software DB Definitions XML, Projects, Configs, Classes, Code Physical Servers and Network Segments

14. Call Center Fulfillment Private / Public Network Legacy systems Securities Backend Middleware Terminal CERTIFICATE OF STOCK 500 Integration Data- mining Private / Public Network Telefon POS Kiosk Conceptualize your business Bank Enterprise Customer Supplier

15. Data Entry Data Entry ProductSelection Collaterals Acquisition Rating First Vote Collaterals Evaluation Final Vote& Decision GetSignature CheckContract Collaterals Registration Payment Product Config-uration Entry inLand Register ProductSelection Collaterals Acquisition Scoring First Vote Product Config-uration Collaterals Evaluation Final Vote& Decision GetSignature CheckContract Entry inLandRegister Payment Scoring ProductSelection Data Entry Scoring Vote Decision GetSignature CheckContract Payment CollateralsEvaluation ProductSelection Decision Check Contract Vote DataEntry Payment Rating GetSignature Scoring CollateralsAcquisition CollateralsRegistration ProductConfiguration CollateralsEvaluation ProductConfiguration ProductSelection The Capabilities Of A Credit Granting Process… Corporate Credit Building Credit Consumer Credit Disaggregation of the value chain

16. Capability View Of The Enterprise Within the traditional bank, operations are captured in 5 areas • Develop Product / Service • Generate Demand • Fulfill Demand • Plan & Manage the Enterprise • Collaboration Outside of the bank, external entities are shown • Customers and Suppliers/Partners • ICT and other Service Providers • Channel Partners • Regulatory Institutions Customer Facing Channel Partners BusinessPartners Customers Banking Business BusinessPartners 1. Develop Product / Service 2. Generate Demand 5. Collaboration 3. Fulfill Demand 4. Plan & Manage Enterprise ICT Providers Regulatory Institutions

17. Business capabilities • Process describes “how” business is conducted, including the people, procedural steps, technology used, and so forth, for example: • Processes can be in-sourced or outsourced, e.g. • Manual and automated are also “how” decisions • Year-over-year, it is common for businesses to change some or all of “how” they do things, making process a relatively unstable view of business • This is a reason that the process flow diagrams so many companies have become so outdated so quickly • We believe that a view of business capabilities offers a significantly more stable view of business • A business capability – a particular ability or capacity that the business relies on for a specific purpose or outcome • What the business does – not how • Usually a simple verb / noun combination such as “pay employees” or “ship product” • Measured through clear Services Levels • Goals, metrics, ownership, escalation points, thresholds, etc. • Encapsulated and addressable Capabilities

18. Motion enables the analytical power of go-in, go-up, go-out and only then… with that context, go-down

19. Bank Business Retail Business 1. Develop Product /Service 1. Develop Product /Service 2. Generate Demand 2. Generate Demand 5. Collaboration 5. Collaboration 3. FulfillDemand 3. FulfillDemand 4. Plan and Manage Enterprise 4. Plan and Manage Enterprise Product Bank Business 1. Develop Product /Service 2. Generate Demand 5. Collaboration 3. FulfillDemand 4. Plan and Manage Enterprise Transaction Bank Business 1. Develop Product /Service 2. Generate Demand 5. Collaboration 3. FulfillDemand 4. Plan and Manage Enterprise Partitioning and ConnectingBanking Industry Example

20. Business Network Market Facing Channel Partners Enterprise Develop Product/ Service Generate Demand Suppliers Collaboration Market/Customers Plan & Manage Enterprise Infrastructure/ Compliance Fulfill Demand Logistics Partners Business Service Providers Capability View Of The Enterprise The enterprise is a • Structure which exposes all capabilities across the business network to leverage into an operating model • Means to componentize performance criteria at the most actionable level of configuration • Framework to leverage technology, information and other resources to decisively manage to predefined outcomes

21. Job Merc. Stage Shuttle Business Network Market Facing Channel Partners Feed Store SQL DSS Enterprise Cache Develop Product/ Service Generate Demand Suppliers FTP HTTP Market/Customers Collaboration Infrastructure/ Compliance Plan & Manage Enterprise Fulfill Demand Business Service Providers Logistics Partners Building Software To Capabilities… • Business capabilities • Processes • Entities • Rules Explicit Mapping Applications User interface Servers and networks Data centers

22. You can’t separate the things you do from the way you do them Your processes are hard-coded into your systems Human behaviors are hard-coded into your systems The things you do are limited by who does them If capability demand exceeds your supply, then what? Customers And SOA • You can project “views” of what your business actually does • Deployed web services as a conceptual model of the business • You can combine what you do with the process that fits your business • Coupling capabilities with participants

23. Service Policy Schema and Contract Service-Oriented Architecture • Service-Orientation • Independent Services • Chunks of Code and Data • Interconnected via Messaging • Four Basic Tenets: • Boundaries Are Explicit • Services Are Autonomous • Services Share Schema and Contract • Not Implementation • Service Compatibility Is Based on Policy

24. Service-A Service-B Services Communicate with Messages • Services Communicate with Messages • Nothing Else • No Other Knowledge about Partner • May Be Heterogeneous

25. Service • Things I’ll Do for Outsiders • Deposit • Withdrawal • Transfer • Account Balance Check Bounding Trust via Encapsulation • Services Only Do Limited Things for Their Partners • This Is How They Bound Their Trust • Encapsulation Is About Bounding Trust • Business Logic Ensures Only the Desired Operations Happen • No Changes to the Data Occur Except Through Locally Controlled Business Logic!

26. Trust and Transactions • Some Propose Atomic Transactions Across Services • E.g. WS-Transactions • Requires Holding Locks • Lots of Trust in Timely Unlock • Doesn’t Sound Autonomous and Independent to me… • Debate Is the Definition of the Word Service • Requires Autonomy and Independence? • Allows Intimacy across Service Boundaries? • There Will Be Code Connected by 2-Phase Commit • Same Service or in Different Services? • Presume No Cross-Service Txs • Simply the Definition of the Word “Service”

27. The Next Breakthrough

28. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.