CBM - SOMA - RUP - Jyväskylän Yliopisto
CBM – SOMA - RUP Flexible Businesses - IT Services – Development Processes Jouko Poutanen IT Architect, IBM Software Group University of Jyväskylä, 11.03.2011 2010 IBM Corporation
Agenda Component Business Modeling (CBM) – Designing Flexible Businesses Service Oriented Modeling and Architecture (SOMA) – From business services to SOA services Rational Unified Process (RUP) & IBM Practices – Rightsizing the process of SW development 2 CBM – SOMA – RUP 2010 IBM Corporation
Context cost, differentiation, focus 3 CBM – SOMA – RUP 2010 IBM Corporation
Context Operations strategy source: Slack and Lewis (2008) 4 CBM – SOMA – RUP 2010 IBM Corporation
Component Business Modeling (CBM) - What for ? CBM framework provides the foundation for qualitative and quantitative analyses that can help enterprises to: Identify their key differentiating operations as well as those that contribute only minimally to their growth and profit Identify business-activity consolidation opportunities to create single instance components to support their business operations Prioritize high cost or high capital components as candidates for operational change Prioritize transformation initiatives Align technology infrastructure investments with business needs Define quantitative results for business and technological change initiatives 5 CBM – SOMA – RUP 2010 IBM Corporation
CBM Framework Organize activities by accountability level and competency 6 CBM – SOMA – RUP 2010 IBM Corporation
What is a Business Component ? 7 CBM – SOMA – RUP 2010 IBM Corporation
Example CBM Map from Retail Sector 8 CBM – SOMA – RUP 2010 IBM Corporation
Heat Maps Identify “Hot” Areas to Exploit Business Value 9 CBM – SOMA – RUP 2010 IBM Corporation
Applying CBM to Strategy Implementation Business Administration Corporate/LOB Strategy & Planning Direct Organization & Process Policies Alliance Strategies Human Capital Management Control Legal & Regulatory Business Performance Intellectual Property Knowledge & Learning Execute Financial Management Financial Planning & Forecasting Capital Appropriation Planning Risk Management & Internal Audit Portfolio Strategy & Planning Research & Development Marketing & Sales Production Strategy Customer Relationship Strategy Master Production Planning Demand Planning Sales & Promotion Planning Service & Aftersales Post Vehicle Sale Strategy Production Rules & Policies Program Management Production Scheduling Supply Chain Performance Monitoring Production Monitoring Supplier Management Demand Forecast & Analysis Quality Management Logistics Management Dealer Management Inventory Management Lease Management Parts Management Transportation Management Order Management Vehicle Service Procurement Customer Relationship Management End-of-Life Vehicle Configuration Management Design Validation Change Management Cost Management Supply Chain Supply Chain Strategy & Planning Design Rules & Policies Tax Management Accounting & General Ledger Production Supplier Relationship Planning Treasury Building/Facilities & Equipment IT Systems & Operations Product/ Process Mechanical Design In-vehicle System Design Plant Operations Process Design Tool Design & Build Maintenance Management Brand Management Relationship Monitoring Warranty Management Strategic Differentiation Strategic Competitive Parity Basic Quality Management 1 ref. RBV - capabilitites, competitive advantage 2 Consolidate 3 Manage as Utility 4 Achieve Superiority Leverage Specialists Target operating characteristics for each component 10 CBM – SOMA – RUP 2010 IBM Corporation
ʻSmartʼ Cost Reduction by Structural Changes Rationalization Typical initial cost reduction measures “Reduce Capacity” – Hiring freeze – New IT project budget freeze – Voluntary departure plans Xʼ Cost – Termination of sub-contracting agreements x – Early retirement Reduce FTE, minimize overlap, improve control Volume Structural Change “Increase Productivity” Typical advanced cost reduction initiatives x – Relocation of resources/applications – Strategic alignment & prioritization – Maintenance/process outsourcing – Process optimization Cost – Central vs. decentralized IT governance Xʼ Change operating model Volume 11 CBM – SOMA – RUP 2010 IBM Corporation
Direct Excess capacity Fit for purpose Control Constrained capacity When considering coverage of systems, process and information for a component, three generic issues tend to arise 12 Execution Product Management Advisor/ Intermediary Administration Advisor/ Intermediary Set-up Regulatory Reporting Training Council Services Systems & Facilities Helpdesk End -customer overmarketing extension Product Development Campaign Execution Channel Management -End Consumer Sales Sales Support Financial Control Asset & Liability Management Operational Control Contract & Policy Set-up Contact Servicing Conservation Wholesales Product Profile Accounting &Finance Planning Operations Planning Service Management Campaign Management Finance Management Manual Contract Administration Alliance Management gaps Customer Service Human Resource Distribution Planning New Business Manufacturing Planning Sales & Channel Management Business Planning Marketing Asset Mgmt & Product Development Overall operational capacity / stability for each system, including possible constraints on future functional enhancements or capacity upgrades (integrity and scalability of code-base and application technical design) Business Administration Example - Overlay Analysis Fees & Commissions duplication Claims processing In-force e.g. Processing Sys A Customer Profile Contract Administration Intelligent Routing Contact Repository Check Processing Correspondence Trading Funds Management General Ledger Treasury Gaps No system exists, the system lacks key functionality, or is poorly designed/uses the wrong technology for a specific component Duplication Multiple systems compete for the same component, typically adding unnecessary complexity/cost to development, maintenance and production Over-Extension A system designed to support one component is extended to help support others, for which it may not have appropriate capabilities: Furthermore, as a system gets more diverse/extensive the cost/complexity of its operation increases exponentially CBM – SOMA – RUP 2010 IBM Corporation
CBM Lifecycle Insight Architecture 4 1.1 Strategic and Business Objectives 1.2 Business Strategy Summary 1 2 Assess Business Strategy Develop Business Component Model 2.1 Component Business Model 2.2 Determine Business Processes 2.3 Build Activity Matrix 3 Identify “hot” components 3.1 Define Evaluation Criteria 3.2 Attribution and CBM Heat Maps Determine strategic business model / value network 5 4.1 Feasibility and Readiness Assessment 4.2 Strategic Ambition Statement 6 Define target component requirements Operationalize strategic business model / value network mandatory optional 5.1 Component Ownership Statement 7 9 Assess current component capabilities 6.1 Component 7.1 Current Cap. Best Practices Assessment 6.2 Component 7.2 Status Quo Collaboration Opportunities 6.3 Required Cap. 7.3 Overlay Analysis Assessment 8 Investment Develop shortfall impact Define and prioritize opportunities 9.1 Investment Opportunities Assessment 9.2 Prioritization investment opportunities 9.3 Selective Project Plan Development 10 Develop transformation roadmap 10.1 Business Case Commitment 10.2 Implementation Risk Assessment 10.3 Develop Transformation Roadmap 8.1 Shortfall impact 8.2 Shortfall Opportunities 13 CBM – SOMA – RUP 2010 IBM Corporation
Agenda Component Business Modeling (CBM) Designing Flexible Businesses Service Oriented Modeling and Architecture (SOMA) From business services to SOA services Rational Unified Process (RUP) & IBM Practices Rightsizing the process of SW development 14 CBM – SOMA – RUP 2010 IBM Corporation
Componentized Business and IT Environment Enables Flexibility Flexible Business Transformation Business Process Outsourcing Mergers, Acquisitions & Divestitures Composable Processes (CBM) Component Business Modeling Requires SOMA Flexible IT On demand Operating Environment Service Oriented Architecture (SOA) Development Software Development 15 CBM – SOMA – RUP Infrastructure Management Integration Infrastructure Management Composable Services (SOA) 2010 IBM Corporation
SOMA – Bridge Between CBM and SOA Component Business Modeling (CBM) KPI Metrics Flows / Activities Business Analysis Map Attribution SOMA Processes Components Service-oriented architecture (SOA) Use Cases BPEL WSDL OOAD Information Technology Patterns Services Frameworks Standards Programming Model Service-oriented modeling is necessary to build a serviceoriented architecture – SOMA builds on current techniques – Domain Analysis – Functional Areas grouping – Variability-Oriented Analysis (VOA) – Process Modeling – Component-Based Development (CBD) – Object-Oriented Analysis and Design (OOAD)/Use Case Modeling Service-oriented modeling introduces new techniques – Goal-Service Modeling – Service Model creation 16 CBM – SOMA – RUP 2010 IBM Corporation
Approaches to SOA CBM Business process Driven Top Down Modeling to Identify Business Services Model Driven Development with Intent of Top-down Service Exposure Message Driven (“Just integrate these systems”) Information Services (data driven view) Wrapping System or Package for Service Exposure 17 CBM – SOMA – RUP Legacy Transformation (“expose and service-enable an embedded Capability”) 2010 IBM Corporation
External and Internal Contexts of Services Direct Business & Resource Admin New Business Development Product Delivery Product Services Account Services Business Portfolio Management Business and Resource Planning Segment Analysis & Planning Customer Portfolio & Analysis Customer Sales & Servicing Planning Product Operations Planning Product Services Planning Account Services Planning Asset & Liability Policy & Planning Finance Policies Business Policies & Procedures Acquisition Planning Credit Policy & Planning Product Oversight Customer Behavior & Models Sales/ Service Administration Product Operations Oversight Product Services Oversight Account Services Oversight Risk/Portfolio Management Financial Control Relationship Oversight Case & Exception Handling Customer Customer Sales Management & Servicing Financial Management External Relations Business Architecture Control Execute Business Unit Tracking Campaign Management Reconciliations Each is Audit/Assur- CBM componentApplication ance/Legal/ Processing Compliance responsible for business activities and processesCredit Business Product Unit Development Administration & Deployment Administration Authorizations DDA/CheckSpecific Processing Inventory Management Customer Accounting Consolidated Book/Position Maintenance Treasury Human Resource Management Market Research Relationship Management Transaction Consolidation Retail Lending Cash Inventory Billing & Payments Securitization/ Syndication Financials Consolidation Transaction Capture Services Card-specific Processing Market Information Collections & Recovery Inter-bank Account Management Accounting General Ledger Sales Card Financial Capture Correspondence Business processes and Facilities Product Collateral Operation & activities areDirectory automated Handling Maintenance by business (SOA) Systems Customer Development & Marketing Profile services Operations Fixed Asset Register Campaign Execution These are supported by collaborating fine Production Assurance grained services and (Help Desk) object interactions 18 Fraud/AML Detection CBM – SOMA – RUP Contact/ Event History Document Management & Archive Dialogue Handler Smart Routing Merchant Operations Rewards Administration 2010 IBM Corporation
SOMA Supports Modeling Solutions Based on the Five Main Constructs of SOAServices, Components, Compositions and Flows, Information, Rules and Policies Consumer Composition via Mashups, Web 2.0 – Allow composition of services at consumer layer, social software, (Flows) Business Processes – represent the flows of activities required to complete a business process. They are compositions of services targeted to achieve business goals Services –the main structuring element required by a service consumer, provided by the service provider. Offers functionality and quality of service, both of which are externalized within service descriptions/policy. Services could be atomic or composite Components – that realize not only the functionality of the services they expose but also ensure their quality of service (the QoS advertised by the Service provider implementing (“realizing”) the services Information – that flows between the layers and within a layer Object Object Object Rules and Policies – that constraints the services, components, flows 19 CBM – SOMA – RUP 2010 IBM Corporation
CBM to SOMA Approach Service Oriented Modeling and Architecture (SOMA) CBM Driven Business Architecture 1 Confirm Business Components Service Identification Component/KPIs Service Model (Identification Level) CBM Map 2 Map Business Capabilities Service Specification Target Capabilities 5 9 Define Service Specification Component / Capability Services Perform Goal/Service Modeling 10 Target Capabilities Enterprise Processes & User Scenarios Process Models 3 4 Analyze Business Processes Service Model (Specification Level) Develop Low Level Design Specifications 13 Perform Sub-System Analysis Business Activities Identify Business Activities Development 14 11 Target Process Models 6 Candidate Service List Identify Services (Domain Decomposition) 8 Document Candidate Services Develop Component Specification 15 7 CBM Application Overlay Analyze Existing Assets Service to System Mapping 12 Perform Service and Component Realization Code & Unit Test Services Perform Service Acceptance Test Service Realization 20 CBM – SOMA – RUP 2010 IBM Corporation
Example Architecture source: Arsanjani et. al. (2008) 21 CBM – SOMA – RUP 2010 IBM Corporation
Agenda Component Business Modeling (CBM) Designing Flexible Businesses Service Oriented Modeling and Architecture (SOMA) From business services to SOA services Rational Unified Process (RUP) & IBM Practices Rightsizing the process of SW development 22 CBM – SOMA – RUP 2010 IBM Corporation
Process Management Create, customize, publish, and enact software & systems development processes according to project needs Governance Process Design & Management Leverage a rich set of process assets and guidance to capture & maintain development, management, and governance processes Automate, integrate, and govern core business processes of software and systems delivery through an integrated set of proven, industry leading tools 23 CBM – SOMA – RUP Establish consistent processes driven by standards and best practices to support corporate governance objectives Process Library (with RUP) Rational Team Concert / Jazz Rational Method Composer Manage, author, configure, and deploy effective processes tailored to project needs 2010 IBM Corporation
Rational Unified Process (RUP) – Key Concepts RUPʼs practices – – Regular delivery of working software Active stakeholder participation – Test-Driven Development (TDD) – Collaborative development – Continuous builds – Early and frequent system-level testing – Just enough process RUP Differentiators – scale agility to complex situations 24 – Executive oversight – Application complexity – Geographical distribution – Large team size – Compliance requirements CBM – SOMA – RUP 2010 IBM Corporation
RMC and the Rational Software Delivery Platform Generate project plans from your process library Integrates with RPM and 3rd party tools ess- Proc Proce D ss-Gu id Rational Method Composer Pla riven nnin g Rational Project Composer ed To ol Be havio r Process Advisor - relevant guidance for what youʼre doing Tool Mentors – guidance for how to implement the process with tools at hand 25 CBM – SOMA – RUP Rational Team Concert / Jazz 2010 IBM Corporation
Practices – the newest part of the Rational Process Library The industryʼs most robust collection of best practices guidance Governance Governance Governance Governance Process Design & Management Customizable Process Library Rational Unified Process IBM Practices GDD ITUP CMMI SOA Gov Over 100 practices and processes to leverage & customize 26 CBM – SOMA – RUP Tooling Author Manage Re-use Configure Tailor Publish Reporting Deploy Estimate Rational Process Library – IBM Practices – Agile Core – Governance and Compliance – Requirements Definition and Management – Configuration Management – Architecture Management – Quality Management – SOMA v.2.9 – 2010 IBM Corporation
What are practices? A practice can be adopted independently from other practices – Organizations can adopt one or a few practice at a time A practice is a documented approach to solving one or several commonly occuring problems – Can be informally document through one white paper, or formally documented through a combination of training courses, tutorials, process content, redbooks, etc. A practice has a positive impact on one or serveral business objectives – Time-to-Market, Improve Quality, Increase Innovation,. The adoption of a practice, and it's impact on business objectives, can be effectively measured Practices apply the principles of objectoriented architecture to process management in order to provide atomic, reusable "components" of process. 27 CBM – SOMA – RUP 2010 IBM Corporation
Adopting Practices Customer Business Challenges Operational Objectives Software Delivery Best Practices Use-case driven development Create financial products more quickly Reduce time-to-market Functionality of customer web falling behind competition Improve productivity Continuous integration Inconsistencies with integrated financial reporting Increase innovation Shared vision Recent SOX audit failure Improve consistency/predictability Improve oversight Enable flexible/global resourcing Satisfy compliance mandate Whole team Risk-value lifecycle 2-level project planning Test-driven development Asset-based development RMC Process Library Asset governance Iterative development SOMA Enterprise SOA SOA governance Architecture modeling Security testing Functional testing Test management Structured testing 28 CBM – SOMA – RUP 2010 IBM Corporation
Practices – Flexible Adoption Model Practices for Agile Business Measured Capability Improvement Framework Measure value and adoption Take corrective actions Practice authoring & tailoring CMMI Lvl 4-5 Practices for Scaling Projects Component software architecture Requirements definition Requirements management Practices for Small Projects Shared Vision UC-Driven development Risk-value lifecycle RUP-like Scrum 29 Independent testing Performance testing Security testing Test management Iterative development 2-level planning Whole Team CBM – SOMA – RUP Evolutionary Architecture Evolutionary Design Iterative change management Agile Core XPish OpenUP Continuous Integration TDD Rapid Testing 2010 IBM Corporation
Case Study .approach applicable for retail sector - just change ’products’ to more tangible ones. 30 CBM – SOMA – RUP 2010 IBM Corporation
From here. 31 CBM – SOMA – RUP 2010 IBM Corporation
.to here 32 CBM – SOMA – RUP 2010 IBM Corporation
More Information CBM – onentbusiness-models.pdf SOMA Elements of Service-Oriented Analysis and Design – ary/wssoad1/ Case Study – l?Open IBM Practices, Rational Method Composer, RUP Practices Plug-ins for Rational Method Composer 33 CBM – SOMA – RUP 2010 IBM Corporation
References Arsanjani, A. et. al. (2008), SOMA: A method for developing service-oriented solutions, IBM Systems Journal, vol 47, Is 3 Slack, N. and Lewis, M. (2008), Operations Strategy (2nd edn), London: FT Prentice Hall 34 CBM – SOMA – RUP 2010 IBM Corporation
business model / value network Operationalize strategic business model / value network Assess current component capabilities 4 5 Define target component requirements 6 7 Develop shortfall impact 8 1.1 Ownership Strategic and Business Objectives 1.2 Business Strategy Summary 2.1 Component Business Model 2.2 Determine Business Processes
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the Rational Unified Process (RUP) IBM Rational Unified Process , or RUP , is a commercial software and systems development process framework (Figure 1 on page 2) with key principles and guidance for iterative software and systems development. RUP is composed of: Best practices: RUP includes a library of best practices for software and
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The IBM Rational Unified Process for System z Cécile Péraire Mike Edwards Angelo Fernandes Enrico Mancin Kathy Carroll RUP for System z includes a succinct end-to-end process for z practitioners RUP for System z includes many examples of various deliverables RUP for System z is available as an RMC/RUP plug-in
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Unified Process or RUP and eXtreme Programming (XP). We show how to tailor the RUP to a small project and how it addresses many areas not considered by XP. The combination gives a project team the guidance needed for mitigating the risks and achieving their goal of delivering a software product. RUP isa proces sframework developed by IBM Rational.
