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Selling SOA to Your CEO

Selling SOA to Your CEO. Michael Liebow, Vice President Business Development, Global Consulting & SOA IBM Global Business Services. ANALYSIS Quantitative and Qualitative Current behavior Investment patterns Future intent Choices of financial outperformers

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Selling SOA to Your CEO

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  1. Selling SOA to Your CEO Michael Liebow, Vice PresidentBusiness Development, Global Consulting & SOAIBM Global Business Services

  2. ANALYSIS • Quantitative and Qualitative • Current behavior • Investment patterns • Future intent • Choices of financial outperformers • Case studies of excelling organizations • SCOPE & APPROACH • 1130 CEOs and Public Sector Leaders • One-hour interviews • 78% Private, 22% Public Sector • 32 Industries • 33% Asia, 36% EMEA, 31% Americas • 80% Established, 20% Emerging Economies We spoke to 1,130 CEOs and conducted in-depth analysis to determine the characteristics of the Enterprise of the Future How are organizations addressing: • New and changing customers – changes at the end of the value chain • Global integration – changes within the value chain • Business model innovation – their response to these changes

  3. CEOs see significant change and opportunity ahead, and in response radically change their business designs Findings from 1130 interviews CEOs are • Expecting significant change (increased by 33%), while the ability to manage change has not kept pace – 39% feel unprepared • Investing heavily in engaging newly prosperous, more informed and collaborative, and socially aware customers • Moving aggressively toward global business designs, deeply changing their capabilities, partnering more extensively and using M&A to grow • Making bolder moves if they are from financial outperforming companies

  4. Bharti How do you maximize future flexibility and growth potential by adopting a business-driven framework? • Focused on process improvement by consolidating disparate systems • Ensured back-end processes support business goals like improved mobile account activation • Improved enterprise wide business intelligence with an integrated view of the customer to respond to needs more quickly and increase customer satisfaction

  5. Inhibitors for Alignment of Business and IT Differences in • Culture • Languages • Priorities • Complex Infrastructure • No Business Architecture & Blueprint

  6. Companies Want IT to Deliver More Business Value Today’s IT Desired IT 30% New Capability Increase Value Creation 45% New Capability 70% Sustaining & RunningExisting Capability Decrease Maintenance & Delivery 55% Existing Capability

  7. How Can SOA Help Your CEO? • SOA is a Business Based approach to designing IT systems that enables… • 5… Business flexibility • 4… Better business processes • 3… Easier integration • 2… Reuse of assets • 1… Reduction of risk “Anything that changes can do that much better if the system is architected in SOA.” Gartner

  8. Yansha Department StoresHow do you get 1,800 national and international suppliers to buy into a new, more efficient way of doing business? • Reduced order lead time from 2.5 days to 4.5 hours • Improved order acknowledgement rate from 80 to 99% • Reduced order error rate from nine to one percent • Achieved ROI in nine months

  9. Things to Remember When Talking SOA to Your CEO 1 Don’t Call It SOA 2 Pick Projects with Tangible Benefits Focus on Solutions 3 4 Reference Thought Leaders 5 Build a Value Focused Business Case

  10. Don’t Call It SOA – Speak the Right Language 1 Explain the value and benefits in business terms that reflect the organization's goals – • cost reduction • productivity • competitive advantage – before diving into a technical conversation

  11. 12 wks 8 wks 60 days Average time to locate critical skills 21 days 48 hrs Time to establish new risk policy 24 hrs Time between order delivery and order generation Benchmark the Value with Key Agility Indicators 270 KAIs in the Benchmark Wizard

  12. Pick Projects with Tangible Benefits 2 When selecting those small test projects, choose to integrate and automate those business processes that can have the most widespread, positive impact across the organization

  13. Extend End-to-End Adapt Dynamically Foundational Transform Distinct Value with Every StyleRegardless of Where You Choose to Engage For example… Process entry point 80% reduction in time to market for customized services Partner externally in broad processes 98% of transactions in sub-second Greater satisfaction Transform online channel 30% increase in transactions 60% increase in online conversion rate Pursuing acceptance & processing of filings and payments via any time, source or channel

  14. Focus on Solutions 3 Examples Position SOA enabling business solutions that tackle the key challenges faced by your business

  15. Generali GroupInsurance Operations of the Future • Life Insurance division needed increased efficiencies across multiple legacy applications and infrastructure • Business processes optimization and automation, input and work management needed • Key reuse and business flexibility focus – SOA was the how • 20%-30% productivity improvement with SOA implementation

  16. Reference Thought Leaders 4 Cite external views on the growth and adoption of service oriented architectures and point to relevant SOA success stories within your industry (and by your competitors)

  17. Learn How SOA Provides Value to Your Industry Insurance Healthcare Government Supply Chain Management Electronics Biopharmaceutical Retail Banking http://www-935.ibm.com/services/us/index.wss/itservice_library/igs/a1002583

  18. Build a Value Focused Business Case 5 Outline the immediate and long-term results from this strategy while avoiding discussions about specific version numbers and technical jargon

  19. Business needs context and vision to understand your approach to SOA Develop an SOA Strategy, Architecture, Business Case, Governance Framework, and Roadmap to guide the transformation of an organization and systems towards a service-oriented model You need: • Customized Component Business Model Map • SOA Reference Architecture • SOA Vision and Strategy • SOA Business Case • SOA Governance Operating Principles & Framework • SOA Roadmap Guiding principles for applying the SOA benefit framework

  20. Defining an SOA Project with Business Case IBM Industry Roadmap Executive Support WW Experiences Local Expertise IBMWorkshop Business ProblemsDefined Solution Elaborated Process Designed Process Improvement Business Value Quantified Relationship Project Definition Project Implementation WWExperience Sharing Value Assessment Arch Development SOA Rapid Value Assessment Tool

  21. Stop talking about SOA. Start doing it. Contact your IBM representative – They can help!!

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