A Smart SOA TM Approach in any Economic Climate

1. A Smart SOATM Approach in any Economic Climate

2. Change…the greatest challenge and the greatest opportunity for CEOs. IBM 2008 CEO Study – Reveals the core traits of the ‘The Enterprise of the Future’ 1 2 3 4 5 Hungry for change Innovative beyond customer imagination Globally integrated Disruptive by nature Genuine, not just generous In-depth study taking the pulse of over 1100 CEOs

3. To Thrive In Future, You Must Survive Today!! Top Concerns for U.S. Businesses: Consumer Demand, Credit Markets / Interest Rates, Housing Market Fallout, Cost of Fuel Duke's Fuqua School of Business, CFO Magazine Business Outlook March 2008 Oil prices, growth fears lead most markets down "... crude oil rocketed past $135 a barrel for the first time, stoking concerns that rising prices will squeeze profits..." The credit crisis: Crunch number “…FEAR of a downward credit spiral hangs over America's economy. " Consumers Glum About U.S. Economy "American consumers believe the United States is in recession and have growing concerns about the weakening economy" Inflation Watch continues this week on Wall Street "...Inflationary pressures have overtaken recession as Wall Street's primary concern..."

4. Business Success Depends Upon Your Ability to Master Agility • Top CFO concerns in enabling the business to be more agile, responsive and competitive: • Driving cost reduction • Identifying and executing growth strategies IBM Global CFO Study 2008 Cost cutting & survival • Innovation & growth Different business scenarios driving to the same core strategic need AGILITY

5. Flexible cost effective processes Cost control through end-to-end connectivity Deliver reusable assets –maximizing return on IT investments Empower the business and differentiate products and service Faster time to value though increased alignment between Business & IT Grain greater visibility and control across processes, and applicatoins Achieve Greater AgilityThrough Service Orientation Cost cutting & survival • Innovation & growth

6. Service Orientation Requires Business and IT Alignment Aligned IT and Business result in DOUBLE the productivity gains of isolated business and IT efforts Source: London School of Economics – McKinsey survey and analysis of 100 companies in France, Germany, UK and US The key is integration across the business & enterprise, finding that right balance between enterprise support and business agility IBM Global CFO Study 2008

7. 6550 Clients Align Business and IT with Service Orientation & SOA Service Managers: A Service A repeatable business task – e.g., check customer credit; open new account Business Managers: Architect: Service Orientation Service Oriented Architecture (SOA) An IT architectural stylethat supports service orientation A way of integrating your business as linked servicesand the outcomes that they bring Source: London School of Economics – McKinsey survey and analysis of 100 companies in France, Germany, UK and US

8. SOA is the Smart, Strategic IT Investment for Any Economic Climate “SOA was born during [the IT recession of 2001-2003] as a way to streamline and cut costs in the post-Y2K, post-dot-bomb era” “…there has been no apparent impact or downturn in support for SOA projects and initiatives.” “SOA offers cost savings and agility, two essential benefits in good times and bad.” Source: How SOA and IT are faring in the ‘unrecession’, ZDNET May 2008

9. "…[prioritize] projects that will turn an ROI faster“ "…address lower-cost projects sooner“ "Choose SOA projects where reuse of established systems is prevalent" Gartner: "Don’t postpone SOA…; Reprioritize Your Road Map" Gartner: Cost Cutting Strategies for SOA; May 6 2008 Roy W. Schulte, Anthony Bradley, Yefim V. Natis

10. Available Now: Telecommunications Energy & Utilities Retail Banking Financial Markets Automotive Electronics Aerospace & Defense Chemicals & Petroleum Healthcare Industry FrameworksAccelerate Service Orientation • Software platforms based on business specific usage pattern: • Standards-based industry-specific extensions • Business Partner-provided assets • Lowers project risk and cost • Accelerates adoption of industry standards Coming Soon: • Manufacturing Integration • Media Hub • Network Centric Operations • Customs, Ports and Borders • Insurance Process Automation • Core Banking Renovation

11. Extend End-to-End Adapt Dynamically Foundational Transform The Smart SOA™ Approach Accelerates Alignment Business IT

12. SOA Entry Points Get You to Value Faster Simplicity with every initiative

13. Connectivity in Action:Staples Reuse and connectivity among existing investments • 30% increase in peak transaction volume with no adverse impact on performance or reliability • Reliable, dependable, and differentiated services • 60% increase in online conversion rate

14. Connectivity in Action:Ball State University Bridging disparate systems & solved key integration issue • Connection of siloed applications without hand-coding • Coordinated over 40 systems to ensure information integrity • Resolved name and address discrepancies in 10 months

15. A set of new Web-based technologies, that enable the web to become a platform for dynamic content creation and distribution A new generation of web-based communities and hosted services — such as social-networking sites, wikis, and folksonomies — which aim to facilitate creativity, collaboration, and sharing between users. Enabling Technologies Social Media Expand SOA Entry Points with Web 2.0 What is Web 2.0? “The point isn't the features, it's the underlying philosophy of relinquishing control."

16. Quickly Create Situational Applications With Web 2.0 and SOA IBM Mashup Center Infosphere MashupHub (Information-centric) Lotus Mashups (Assembly-centric) IBM Mashup Center • Users Quickly Create Their Own Applications Using SOA Sharing + discovery of mashable widgets Unlock information and transform and mix it into new feeds Assemble widgets into dynamic mashups WebSphere sMash WebSphere sMash • Agile development environment • Dynamic Scripting • Widget creation for IBM Mashup Center Deliver Web 2.0 based applications, enabling mashups

17. Web 2.0 and sMash in Action: ZSL Rapidly created SocNet, an internal social networking hub • Accomplished in 3 weeks with inexperienced programmers what would have taken 4-5 months in .NET • Gained greater agility, speed, and reuse • Increased internal collaboration

18. Process Focus Varies by Maturity Adapt Dynamically Extend End-to-End Foundational Transform Multi-Channel BankingPayments Ops Fraud Detection/ Notification Enterprise Risk Mgmt Customized OffersValue-Add Services Adapt Products Dynamically for Local Markets Banking Account Open Call CenterLoan Origination Insurance Policy Status Billing Inquiry Claims Status Multi-Line Quote Policy Administration Claims Lifecycle Agency Mgmt Enterprise Risk Mgmt Multi Line, Multi Channel Self-Service Adapt Products Dynamically for Local Markets

19. 61% Adapt Dynamically Extend End-to-End Foundational Transform 29% <8% <3% Adoption of SOA is Evolving Across the Continuum % of SOA Customers by Approach Large Enterprises Employee Size Medium Businesses Greater than 4,999 Small Between 1,000 and 4,999 Less than 999 Source: IBM 2008 Survey

20. When Inflexible Processes Meet Turbulent Business Conditions… In 2007, a Major U.S. Discount Airline facing inclement weather, but not severe storm … • Stranded customers on planes for 8+ hours … without food, water, and heat • Cancelled >25% of flights days after initial incident • 30M USD in customer refunds • 14% drop in stock price; 400M USD in shareholer value destroyed • CEO relieved of duty “We had a weakness in our system. We were overwhelmed.” David Neeleman, Former CEO JetBlue Airways

21. Manage End-to-End Processes with BPM Enabled by SOA Human Interaction & Collaboration Business Process Modeling & Design Business ActivityMonitoring & Analysis ProcessExecution

22. IBM BPM Suite Starter Sets Accelerate Time-to-Value IBM BPM Suite Foundational Starter Sets Dynamic Business Processes Content-Aware Processes Extended Value Offerings Business Event Processing Asset repository for BPM Collaboration Tools Advanced Analytics Process Accelerators BPM Methodology  BPM Professional Services  BPM Mentoring

23. BPM Enabled by SOA In Action: Cost Effective Processes At StatoilHydro Automated, optimized, and innovated oil exploration and recovery process • 5% increased oil production • 30% maintenance cost reduction • Interdisciplinary collaboration

24. Maintain Quality while Scaling Business Processes • WebSphere Virtual Enterprise • WebSphere eXtreme Scale • SOA Integration Services for Process Integrity

25. Virtualization in Action:Rotech Experiences dramatic performance, efficiency & availability gains while lowering costs • Projected decreases in costs and increase in revenue • Optimized application environment providing flexible, scalable infrastructure with high availability • Allowed for repositioninga number of employees from manual processes & improved automation

26. Infrastructure Business Services Process Services Information Services Interaction Services Enterprise Service Bus ServiceManagement DevelopmentServices Partner Services Business App Services Access Services Infrastructure Services Design With The SOA Reference Architecture

27. Role Based Skills Focused Globally Connected University SOA BPCommunity Architect SOA Space ProjectZero China Pilot Interdisciplinary Skills for the T-Shaped Person Build Skills: Join the SmartSOA Social Network Enhanced NEW • Architect Space • SOA Developer Space • Industry • Business Analyst • Certifications • Onlineclasses • Innov8 Simulator

28. 480+ public customer references World’s largest SOA partner Community Customers across Smart SOA Continuum and Industry Iona 1% Virtria 2% Other 4% Sybase 1% Sun / SeeBeyond 2% Progress Software 4% Microsoft 4% Software AG / webMethods 4% Tibco 7% 64% Oracle/BEA 7% IBM – Leading the way in SOA #1 in Marketshare Unparalleled Client Experience 2007 Total: $2.0B Source: WinterGreen Research, Inc.

29. SOA Helps in ANY Economic Climate Businesses Need: SOA Enables: Business Agility Flexible Processes Everything-to-everything Connectivity Reduced Expense Reusable Services Greater Reuse "… SOA enables businesses to brace themselves for any economic cycle, positioning them for success, not just survival." Source: ZapThink, SOA in any economic climate, 2008