IBM BusinessCentric SOA Event SOA Productivity through Automating

IBM Business-Centric SOA Event Agenda § The Challenge § SOA - an enabler to Change § BPM for SOA Value § Best Practices § Getting Started 2 SOA on your terms and our expertise

IBM Business-Centric SOA Event The top focus for business § Due to competitive and market forces, CEOs plan to radically change their companies in the next 2 years. § > 80% of CEOs stated their organizations have not been very successful at managing change § 78% of CEOs believe integrating business and technology is fundamental for innovation Source: IBM Global CEO Survey, March 2006 The Goal: Strategic Flexibility Through Innovation 3 SOA on your terms and our expertise

IBM Business-Centric SOA Event Business knows what it wants…and what’s preventing progress What businesses want… . . . and the barriers A way to change their operational processes quickly… …processes are inflexible or unclear To deploy automated processes fast… …integration challenges prevent timely implementation A real time view of operations and be able to intervene… …long lag-times and inadequate alerting mechanisms prevent insight or action To see results and value fast… …changes had been expensive with long payback periods Companies Want Change At The Speed Of Business 4 SOA on your terms and our expertise

IBM Business-Centric SOA Event Services Oriented Architecture changes the game SOA allows you To create a set of related and integrated services that support a business process SOA is at the core of BPM SOA improves how you Design, Manage, and Optimize your business processes by enabling: • Solution Building Efficiency • Reuse of existing assets • Flexibility in change 5 SOA on your terms and our expertise

IBM Business-Centric SOA Event SOA Entry Point to a Process Centric Approach Business Process Management for Continuous Innovation 2 Value Innovative business models deployed quickly with flexible and optimized processes Why SOA? Modeled processes, converted into services, are re-used, connected and re-deployed more flexibly and quickly with SOA Start with A single process – Model an underperforming process. Optimize and deploy as enhanced process. Next steps Flexibly link multiple processes across the enterprise & to suppliers / partners. Monitor the process to measure & track performance. 7 SOA on your terms and our expertise “SOA, done right, enables the creation of a common language shared by IT and the broader business stakeholder community. . ” - Neil Ward-Dutton

IBM Business-Centric SOA Event The BPM for SOA Value Proposition from IBM Manage processes, workflows, and documents to improve your business through innovation. For Companies that need to quickly identify and respond to changing market conditions use Business Process Management (BPM) for SOA to improve the efficiency, flexibility, and control of their key business processes. IBM combines expertise in your industry with world-class software to deliver a comprehensive approach to BPM 9 SOA on your terms and our expertise

IBM Business-Centric SOA Event Goals of a BPM for SOA Implementation § Flexibility – Rapidly change process behavior – Adapt to changes with minimal disruption § Responsiveness – Make proactive changes to processes dynamically § Optimization – Powerful tools to improve your business processes – True understanding of business operations § Solution Building Efficiency – Deploy business process solutions at lowest cost – Import and work with business process models directly from the business analyst 10 SOA on your terms and our expertise

IBM Business-Centric SOA Event Best Practices for a successful BPM for SOA implementation 1. Capture and understand your business processes to drive improvement 2. Bridge the gap between the business and IT 3. Build a BPM Framework using SOA 4. Use executive dashboards and scorecards to manange your business 11 SOA on your terms and our expertise

IBM Business-Centric SOA Event Best Practice #1 Capture and modify your business processes to drive improvement 67% of processes fail because their impact was not known prior to execution --Omar Sawy, Redesigning Enterprise Processes For e-business § Identify the core processes that differentiate your business – Import your existing process documentation, or – Create a new process model § Identify the tasks that impact your process performance the most § Modify your process model to create “To-be” scenarios 12 SOA on your terms and our expertise

IBM Business-Centric SOA Event Best Practice #1 cont. § Run simulation to calculate value of improvements – Compare and analyze Results Lower processing time and costs § Publish model for collaboration with the process team –Enable participation in reviews and modifications 13 SOA on your terms and our expertise

IBM Business-Centric SOA Event Best Practice #2 Bridge the gap between the business and IT § Create a process design team: – include both business and IT – assign owners and roles for processes design and management § Tighter alignment assures a seamless handoff from business to IT for assembly and deployment “It is impossible to separate IT and business strategy. IT doesn’t support the business, it is the business. ” –Asiff Hirjim, CIO, Ameritrade 14 SOA on your terms and our expertise

IBM Business-Centric SOA Event Wachovia: Optimize Business Processes with SOA Integrating multiple systems to deliver a single interface Business Challenge §Needed to accommodate growing channels and integrate IT platforms from acquired businesses Benefits § $6 Million Initial Savings § Process activities reduced from 300 to 120, 31 of which were automated § Fee Income collection increased 10 X 15 SOA on your terms and our expertise Action Taken § Transform existing infrastructure to SOA § BPM solution to deliver information to several channels from a single interface

IBM Business-Centric SOA Event Best Practice #3 Build a BPM Framework using SOA § Dramatically reduce process time and deployment costs – Leverage existing and new services – Use a tool for dynamic process assembly § Utilize a single process server for human workflow, process choreography, and information sharing Example: Loan Process 16 SOA on your terms and our expertise

IBM Business-Centric SOA Event Why it is Important to have a Single BPM Framework with SOA? Java Assembling Components used in the Business Process Application get Approved/ Denied Human Workflow Integration with ERP systems If Approved then Send letter offering gold WS-BPEL Business Process 17 SOA on your terms and our expertise If NOT Approved Send letter offering Credit counseling service Business State Machine Business Rules

IBM Business-Centric SOA Event Why it is Important to have a Single BPM Framework with SOA? Java Assembling Components used in the Business Process Application One Tool One Server One vendor get Approved/ Denied Human Workflow Integration with ERP systems If Approved then Send letter offering gold WS-BPEL Business Process 18 SOA on your terms and our expertise If NOT Approved Send letter offering Credit counseling service Business State Machine Business Rules

IBM Business-Centric SOA Event Delaware Electric Coop – Adopting SOA for business flexibility - Agile Processes: make changes on demand Business Challenge Benefits § Improved customer satisfaction using paperless interactions resulting in faster transactions and responses § Open exchange of information to improve customer service representative access to information § Were losing profits and market share because customer satisfaction was poor due to slow, inflexible business processes § Data was fragmented and applications were in silos Action Taken § Integrated 27 disparate legacy systems using SCA based process flows § Implemented a standards based development environment to reuse assets § Reduce cost and leverage investment in technology. 19 SOA on your terms and our expertise

IBM Business-Centric SOA Event Best Practice #4 Use executive dashboards and scorecards to manage your business § View performance of processes through Key Performance Indicators – Track cost, time and resources § Intervene in the process to ensure business is running in compliance § Use data collected for continuous Process Improvement 20 SOA on your terms and our expertise

IBM Business-Centric SOA Event 21 SOA on your terms and our expertise

IBM Business-Centric SOA Event Business achieves its goals with BPM for SOA Customers Understand their processes • Document and validate current business processes, simulate “what-if” scenarios Quickly assemble and deploy solutions • Offers clear understanding of the businesses needs to construct processes on-demand • Allows new and changes to business processes quickly, flexible business Monitor Processes to ensure optimization • Improve business operations through process improvements 23 SOA on your terms and our expertise § Optimize business § Solution Building Efficiency § Reuse existing assets § Flexibility § Responsiveness § Monitor and manage critical business events

IBM Business-Centric SOA Event BPM Methodology is executed with IBM’s SOA Lifecycle Web. Sphere is at the core of BPM Assemble existing and new assets to execute and manage business processes Capture, simulate, analyze, and optimize business models to reduce risk and increase flexibility 24 SOA on your terms and our expertise Deployment of models, policies and assemblies to realize business intent Real-time visibility and analysis of business information for timely and coordinated action

IBM Business-Centric SOA Event Enhanced! SOA Announcements for Process SOA Processes with Built-in Flexibility Business Process Management Web. Sphere Business Modeler § Hundreds of Process templates § Enhanced analysis and simulation capabilities § Process metric definition for Key Performance Indicators § Interoperability with other modeling tools § National language support 26 Web. Sphere DB 2 Process Server and Business Monitor Content Manager Integration Developer § Multiple platforms § Real-time process § Formal, consistent, including System z availability § National language support for BPM § Complete toolbox for building composite SOA applications § Real-time process enhancements; architected for reuse and flexibility SOA on your terms and our expertise visibility and modification § Monitor process metrics and Key Performance Indicators § Event triggers and alerts § National language support repeatable document processes § Integration with Web. Sphere Process Server Quick Start Toolkit SCA components and objects to implement common interaction patterns § Repository services for Workplace Forms § Supports XML APIs

IBM Business-Centric SOA Event Why IBM Web. Sphere software for BPM for SOA? Nobody has the breadth or depth • IBM offers end-to-end BPM based on an SOA infrastructure • IBM’s BPM portfolio delivers rich functionality: • • Sophisticated Modeling/Simulation Closed loop feedback Extensive tooling Best integration engine in the market Nobody can get you started faster • Extensive history and leadership in legacy and application integration—critical aspects of BPM • Leading best practices • Unmatched industry expertise • Hundreds of pre-existing process models to speed time to value Award winning software products BPM from IBM leads in Market share Wintergreen Research, Fall 2005 IBM rated as a leader in BPM technology by Network Computing magazine readers --2005 BPM e-Poll (How to Win at BPM, Network Computing Magazine ) Web. Sphere: "impressive management options, support for Web services and general ease of use…" – Network Computing (February 2005) 27 SOA on your terms and our expertise

IBM Business-Centric SOA Event 28 SOA on your terms and our expertise