Leveraging IBM: Products, Technology and Services Business Performance Optimization

1. Leveraging IBM: Products, Technology and Services Business Performance Optimization Ljubljana, Slovenia Kevin Maier, Business Development Manager Business Performance Service Optimization team IBM Software Group

2. Agenda Defining the Business and IT landscape Customer scenario Aligning Business and IT Why IBM? Beyond SOA, why and how Questions and Answers

3. Business driven project • Driven by validate business goals • Increase market share, revenue, new function, etc. • Increased flexibility to respond quicker • Considered cornerstone of SOA • IT driven project • Cost reduction, HW, SW, footprint • Technology refresh, skills, standards, compliance • Spending the budget, maintenance • Sandbox studies • POTs, POCs, Pilot Projects, Production

4. Customer Scenario

5. Over the years, evolving business needs had caused this customerto gradually construct a complex, inflexible application architecture which resulted in the inability to have access to an enterprise wide view of products and customer data, and new projects often taking more time and resources than were necessary IBM engaged on consulting and services to implement ESB and related technologies To begin unifying its disparate applications and data, the customer embarked on an SOA initiative to implement an enterprise service bus (ESB). To further streamline its business processes, the customer implemented Business Modeler software which delivers a centralized view that helps them identify inefficiencies in existing processes and create improvements through new models. WebSphere Registry and Repository (WSRR) product created thru field based development with Ad Tech team to fill a void in the product portfolio. Accelerated product availability, early skills and integration into new solution. Deployment was incident free

6. The Situation • Over the years, evolving business needs had caused Toyota Motor Sales (TMS)to gradually construct a complex application architecture comprising disparate sets of Common Business Oriented Language (COBOL) applications, BEA WebLogic servers and portal applications, and other software products. • The applications and their corresponding data sets had been configured to act independently, meaning that TMS didn't have access to an enterprise wide view of vehicle and customer data. • The architecture had a low level of flexibility, and new projects often took more time and resources than were necessary to complete. • To resolve these issues, TMS needed a solution that would improve the way it managed information and promote stronger integration between its applications and processes. The Solution To begin unifying its disparate applications and data sets, TMS embarked on an initiative to implement an enterprise service bus (ESB) . At the heart of the ESB solution is WebSphere MQ software, which acts as the reliable backbone that establishes universal connectivity between the applications, routing a staggering total of 6,000 messages per minute. Information and data sets flow seamlessly between applications and systems, thanks to the WebSphere Message Broker for Multiplatforms software, which translates messages into a common language and routes them to the intended system. Tivoli OMEGAMON XE for Messaging software bolsters the reliability of the solution by monitoring all messages delivered through the ESB. To further streamline business processes, TMS implemented IBM WebSphere Business Modeler V6 software. The application delivers a centralized view that helps TMS identify inefficiencies in existing processes and create improvements through new models. The client plans to use the WebSphere Business Modeler software to increase business process efficiency in distribution, port management and dealer management.  • The Business Benefits • By implementing a robust ESB built with IBM WebSphere and IBM Tivoli software, TMS has enabled a unified view of its enterprise that will facilitate fast, efficient access to critical business information, and help streamline business processes. With near-real-time access to information, the client can provide quick and accurate responses to customer inquiries. And the solution's flexibility will allow TMS to quickly integrate partners and dealerships, enabling better access to information across the extended enterprise. No longer hindered by an inflexible application architecture, the client can respond to market changes and new business opportunities with speed and agility.The IBM WebSphere software provides a reliable, available platform that effectively establishes integration and can be used in the future to act as the framework for a service-oriented architecture (SOA), which will allow the client to establish reusable Web services. Using IBM Tivoli OMEGAMON software, TMS can make adjustments to the ESB to ensure that systems are communicating seamlessly.In addition to being highly satisfied with the robustness and effectiveness of the WebSphere and Tivoli software, the client was also pleased that IBM was able to deliver an end-to-end solution that will effectively lead the company into the future.   

7. Thialand Bank SOA Driving Success for customers…. SOA Business and IT Success

8. Aligning Business with ITSOA

9. Note: The above is a sample Business Pilot Workshop outline. This is a preferred workshop for aligning Business and IT.

10. Why IBM?

11. Over the past 15 years IBM has made a major transformation from a hardware company to a services led business

12. IBM is Truly a Provider of Enterprise Solutions 98 years in business Over $91B in sales, 52% from Services Over 320,000 employees Full service provider of Business and IT solutions World leader in IT services and consulting, with 198,000 services professionals worldwide World leader in patents for the past seventeen years Major supporter of Open Standards Significant leadership in IT Standards Organizations Incorporates standards in software and as part of consulting engagements

14. Watson IBM Research – with eight labs worldwide, we have more than 3600 Researchers Beijing Almaden Zürich communication systems, computer science, selected science and technology projects, and industry solutions and services research computer science, database, user interface, web software, storage systems software & technology, physical sciences, materials science, nanotechnology, life sciences, services research language processing, speech & handwriting recognition, pervasive computing, mobile computing, multimedia, and e-business technologies & solutions semiconductors, physical & computer sciences, Life sciences and mathematics Haifa Tokyo Delhi Austin VLSI design, verification technology, storage subsystems, e-business and security, computer systems, programming languages and environments, advanced applications, applied mathematics, multimedia, and service technologies software technology, systems technology, pervasive computing, Internet technology and applications electronic commerce, media mining, fingerprint matching, speech recognition, weather forecasting and wireless networks high performance/low power VLSI design and tools, system-level power analysis, and new system architectures

15. Why IBM…our key differentiators • On Demand Services • Reach-back – Behind every IBMer there are thousands of resources available • Open Architectures & Open Standards - “we are agnostic to solutions” • Largest Integrator of ERP & COTS • We transformed ourselves • SCM & Distribution • Workforce & Knowledge Management • Lean Six Sigma & Component Business Model • Our solutions are built on innovation & best commercial practices; supported by Services Oriented Architectures IBM – “We want to solve your most difficult problems”

16. Beyond SOA, why and how

17. In 2010 we will continue our focus on business agility which is the top priority of business leaders “We have seen more change in the last ten years than in the previous 90.”- Ad J. Scheepbouwer, CEO of KPN Telecom “The key to successful transformation is changing our mind-set. For large companies, it is easy to be complacent-we have to change this. Our company culture must have a built-in change mechanism.”- Masao Yamazaki, President and CEO, West Japan Railway Company *Eight out of ten CEOs said their organizations will be facing substantial or very substantial change over the next three years. *Source: IBM, 2008 Global CEO Study 17

18. To do that we are bringing a new level of intelligence to our clients targeted at their existing business processes and integrating new capabilities like business rules, events, monitoring, and simulation to drive an increased level of Business Performance Business Performance & Service Optimization + SOA BPM • The latest market opportunity is based on the complete convergence of SOA and BPM • We will execute against this opportunity in tight lockstep with GBS and will focus our efforts on driving references, building skills, and the creation of hardened solution assets • Key to this execution is the creation of a Business Performance and Service Optimization Center of Excellence, which will reside in GBS and be strongly supported by SWG

19. Software Skills & Support By design SWG has acquired new capabilities on top of our BPM and SOA foundation that when snapped together drive new levels of capability positioning us for immediate leadership BPM Foundation SOA Foundation Business Performance and Service Optimization Lombardi Businesses User-centric BPM Jan 2010 ILOG Business Rule Management, Optimization, Visualization, SCM Jan 2009 Cognos Business Intelligence & Performance Management Jan 2008 FileNet Enterprise Content Management Oct 2006 AptSoft Business Event Processing Jan 2008 Webify Composite Business Service Delivery Aug 2006 Cyanea Problem Determination & Performance Monitoring July 2004 Trigo Information Integration April 2004 Holosofx Business Process Modeling and Monitoring Sept 2002 CrossWorlds Process Automation & Integration Jan 2002

20. Level 5 Dynamic Agile operating model in place that responds to changing business strategy. Business and IT can make frequent changes as IT model represents how business works. Dynamic and context aware processes and services leveraging rules and event processing. Digital simulation of business models. Level 4 Agile Business users can make frequent and regular business changes (processes, information, rules, or events). Agile operating model in place that responds to changing business strategy. Business can make frequent changes. Business performance is measured and updated for continuous improvement. Level 3 Standardized Business Processes are standardized, visible, accessible, and reusable. Business performance metrics are monitored and measured. Governance models in place for process improvement. Level 2 Awareness Some level of documentation and automation of human tasks. Execution is not traceable to strategic objectives. Business is ad-hoc and variable. Success depends on individual and heroic efforts. Metrics are not available or ignored. Level 1 Initial But our clients will require a clear execution roadmap to be successful as we continue advancing the art of the possible Business Value Maturity

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