IE 051606 Doug SAUCIER Who Pays for SOA

Preparing for Rapid Change Through Transformational Architecture … Sony Pictures Entertainment’s Service Oriented Architectural Approach : 

Preparing for Rapid Change Through Transformational Architecture … Sony Pictures Entertainment’s Service Oriented Architectural Approach A shared cost model

Agenda: 

Agenda About Sony Pictures Entertainment IT Challenges IT: Meeting The Challenge Service Oriented Architecture Vision at SPE SOA will provide tangible ROI So Who Pays the Bill? Final thoughts

About Sony Pictures Entertainment www.sonypictures.com: 

About Sony Pictures Entertainment www.sonypictures.com

About Sony Pictures Entertainment: 

About Sony Pictures Entertainment

IT Challenges : - Our legacy environment developed organically and was not architected for change.: 

IT Challenges : - Our legacy environment developed organically and was not architected for change. Situation: Proliferating applications (multiple Technologies, Skill sets, etc.) Costly bolt-on systems and customizations Point-to-point integrations Poor data integrity Problems: Business agility limited by inflexible architecture Fragmented tech strategy limiting efforts to deepen critical skills Expensive to source, develop and maintain Tough to leverage and reuse investment

IT Challenges: 

IT Challenges Data Integrity and Accuracy “Islands of information” phenomena Redundant data entry Data ownership confusion Complicated, hand-coded interfaces Slow data “velocity” Increasing IT Costs and Complexity Application development and support Poorly documented, poorly understood proprietary interfaces Operational cost User Confusion and Difficulty Finding Information Multiple entry points Multiple logins Where to go to find what information

Meeting the Challenge – Growing Global Business – IT / Business Alignment: 

Meeting the Challenge – Growing Global Business – IT / Business Alignment “There are no more IT projects – only business projects supported by technology” Bob Beauchamp President and Chief Executive Officer BMC Software Impact of IT on the Business Impact of Business on IT

Meeting the Challenge -: 

Meeting the Challenge -

Meeting the Challenge: 

Meeting the Challenge

SOA Vision at SPE: 

SOA Vision at SPE Leverage SPE’s investment in the existing platforms Provide a common framework as the foundation layer, supporting most application development and integration at SPE Provide tangible ROI to SPE by Reducing the cost of implementing and integrating solutions Minimizing the skill set demands of a project Reducing the cost of solution maintenance Make Application Development and Integration a lower-risk/higher-return proposition

SOA Vision - What is Service-Oriented Architecture?: 

SOA Vision - What is Service-Oriented Architecture? SOA is the combination of three things: A set of tools and technologies that enable the rapid, easy implementation of solutions. A set of design patterns, standards, and best practices for the construction of solutions. A methodology for identifying and disseminating and integrating reusable services across applications. SOA is NOT – Technology Product Protocol Standard SOA is a set of – Frameworks Practices Architectural Patterns Policies

SOA Vision - A services-centric architecture enables more efficient exposure to key functionality.: 

SOA Vision - A services-centric architecture enables more efficient exposure to key functionality. Proliferating applications (multiple Technologies, Skillsets, etc.) Costly bolt-on systems and customizations Point-to-point integrations Poor data integrity Improved delivery capabilities through common frameworks, user interfaces, processes, and tools Faster reaction to business needs Improved Data Integrity End-to-end process visibility enabling digitization of manual touch points

SOA is About Enabling our BusinessEstablish the Vision: 

Actionable Architecture Meet LOB projects needs while building reusable framework SOA is About Enabling our Business Establish the Vision

SOA is About Enabling our Business Build the Portal Foundation: 

SOA is About Enabling our Business Build the Portal Foundation Actionable Architecture Meet LOB projects needs while building reusable framework

SOA is About Enabling our BusinessBuild the Application and Integration Foundation: 

SOA is About Enabling our Business Build the Application and Integration Foundation Actionable Architecture Meet LOB projects needs while building reusable framework

SOA is About Enabling our BusinessProject by Project add Services: 

Actionable Architecture Meet LOB projects needs while building reusable framework SOA is About Enabling our Business Project by Project add Services

SOA is About Enabling our BusinessSupport Business Objectives in Weeks: 

Actionable Architecture Meet LOB projects needs while building reusable framework SOA is About Enabling our Business Support Business Objectives in Weeks

SOA Vision - Integration provided by foundation services are crucial to supporting continued change.: 

SOA Vision - Integration provided by foundation services are crucial to supporting continued change. Source: Gartner

Provide tangible ROI to SPE: 

Provide tangible ROI to SPE Reduce the cost of implementing and integrating solutions Minimize the skill set demands of a project Reducing the cost of solution maintenance

SOA Provides Tangible ROI: 

SOA Provides Tangible ROI

Reduce the cost of implementing and integrating solutions: 

Reduce the cost of implementing and integrating solutions Applications consist of two basic types of functionality Functionality that delivers the solution to the business need (Business Services) Process an order, Bill a customer ….. Functionality that manages the delivery of the solution (Technical Frameworks or Foundations) Deliver the Order Entry Screen to collect data, Manage transaction integrity, Get the Customer Data from persistent storage We are reducing costs in both areas The first and easiest area to get reuse is in Technical Frameworks Build a SOA Framework and use it for future application development and integration Portal Foundation Application and Integration Foundation The second and more difficult is in reusable Business Services Within application families Across applications (Web Services and BPM)

Minimize the skill set demands of a project: 

Minimize the skill set demands of a project By implementing three things we improve competency and thus productivity thru standardization A set of tools and technologies that enable the rapid, easy implementation of solutions. Reusable SOA Framework Sharable Business Services Software Lifecycle Management tools A set of design patterns, standards, and best practices for the construction of solutions. A SOA tailored Unified Development Process (UDP) A methodology for identifying and disseminating and integrating reusable services across applications. Architectural governance and service management By implementing standardization we enable appropriate use of offshore resources Large labor pool trained in SOA J2EE technology services

Slide23: 

Typical Allocation Of Effort Across On-Site and Off-Site/Off-Shore Locations Source: Gartner Strategic Analysis Report, R-21-6535, 29 Dec 2003 Minimize the skill set demands of a project

Slide24: 

Case Study on Enterprise SOA Benefits Paradigm Shift in Requirements Formulation Paradigm Shift from Application development to LOB Services Reduces Application development time Reduces Application Maintenance effort Services Accessibility We estimate that development time associated with Business Use Cases will be reduced by 10 to 15% We estimate that the productivity enhancements tied to SOA can range as high as 20 to 25%. This includes the SOA itself and enhanced experience and capacity of the core software architecture team. We estimate the net decrease in common component maintenance to range from 15 to 30% over time The following case study assumes three successive projects involving 36 business uses cases of similar complexity. Actual results will vary based on organizational maturity, use case complexity and the number of use cases.

36 Business Use Case Example: 

36 Business Use Case Example Project 1 – Traditional Approach Assumptions Traditional Development Approach Average productivity Estimated project hours 40516 Project 1 With SOA Assumptions Utilizes first release of SOA No relative productivity enhancement relative to Traditional Approach Estimated project hours: 37205 This example tracks the effort estimates for three successive projects consisting of 36 Business Use Cases in terms of total required hours. It is assumed that the use cases are of similar complexity and that the SOA is enhanced and extended in support of each project. Project 2 With SOA Assumptions Utilizes Second Release of SOA Improved productivity related to SOA/ALM discipline Estimated project hours: 33654 Project 3 With SOA Assumptions Utilizes Third Release of SOA Moderate productivity improvements tied to SOA/ALM Discipline Estimated project hours: 32017

Project Tracking Charts – 36 Business Use Case Examples: 

Project Tracking Charts – 36 Business Use Case Examples Project effort estimates are reduced by 21% by the third project tied to the reuse of the SOA framework and the productivity enhancements tied to SOA/ALM disciplines. In addition total project implementation time is also reduced by nearly 19.5%.

SOA Provides Tangible ROI: 

SOA Provides Tangible ROI Re-use can be achieved and costs reduced Applications are easier to produce and better understood Concept of re-useable components gaining acceptance Deliver value to the customer Focus on Projects perceived by the customer as high value to the business Qualitative Improvement Collaboration and alignment across SPE departments Consistent user experience reducing complexity, increasing usability Employee satisfaction boosted; their jobs are easier and they can service their customers more easily

SOA Provides Tangible ROI (continued): 

SOA Provides Tangible ROI (continued) Improved Framework for next-generation apps (SODA) BEA WebLogic Platform supports key standards: SOAP, WSRP, and reliable web services Ideal environment to serve many audiences in a personalized and context-appropriate manner More effective, efficient IT development team Reduced time spent on multiple legacy apps Able to focus new development efforts on standard platforms Much more efficient use of resources

SOA Implementation - Project-based Plan: 

SOA Implementation - Project-based Plan Sequenced by: Major Business Initiatives Development projects already underway Development projects in plan Organizational capabilities Funding available Nature of the Application

SOA Implementation - Challenges in Realization: 

SOA Implementation - Challenges in Realization Driven by existing timelines Can’t wait for “SOA Initiatives” SOA not perceived as a requirement for today’s projects Built on functional requirements specific to project Driven by enterprise goals A long-term strategy for implementation Architecture often perceived as “ivory tower” Built on service requirements for the business Application Projects SOA

SOA Implementation - SOA Realization Strategy: 

SOA Implementation - SOA Realization Strategy “Actionable Architecture” Deliverables to the Projects Becomes both strategic and tactical Project-by-Project Transformation, not Rip-and-Replace Initial projects identified: mySPE (Intranet Portal) International Film Distribution System re-platform Global Product Master System Version 2.0 Organizational Support Addressed early Organizational Alignment of Centralized Responsibilities Strategic Planning Investment

So Who Pays the Bill?: 

So Who Pays the Bill? Think Strategically, Spend Tactically

Who pays the Bills?: 

Who pays the Bills? Driven by existing timelines Can’t wait for “SOA Initiatives” SOA not perceived as a requirement for today’s projects Built on functional requirements specific to project Driven by enterprise goals A long-term strategy for implementation Architecture often perceived as “ivory tower” Built on service requirements for the business Line Of Business IT Centralized Services

Who pays the Bills? - Think Strategically, Spend Tactically: 

Who pays the Bills? - Think Strategically, Spend Tactically In order to move to a new paradigm IT must Invest as a Enterprise in Core Capabilities and Infrastructure People Processes Technology The Projects receiving the Value should Share the Investment Core Infrastructure is a Shared Model which is Capacity Managed

Who pays the Bills? - Think Strategically, Spend Tactically: 

Who pays the Bills? - Think Strategically, Spend Tactically In order to move to a new paradigm IT must Invest as an Enterprise in Core Capabilities and Infrastructure Core Capabilities Planning, Governance, Architecture Conceptual SOA Architecture & Technology Roadmap Enterprise Architecture Services (EAS) Software Development Life Cycle Support Competency Centers provide Fee for Services to Projects Architecture Design Engineering (Frameworks & Shared Components) Integration (EAI & ESB Services) QA & Testing Data & Reporting Infrastructure Development and Ongoing Support & Maintenance Hardware & Technical Frameworks, Shared Components Application, Integration, and Service Platforms

Who pays the Bills? - Think Strategically, Spend Tactically: 

Who pays the Bills? - Think Strategically, Spend Tactically The projects receiving the value should share the Investment Project and LOB IT Funded with some shared Central Funding to offset generalization costs Development of SOA Framework Implementations (J2EE & dotNET implementations of the SOA Conceptual Architecture) Shared Components SOA based Applications (SODA) Business Services

Who pays the Bills? - Think Strategically, Spend Tactically: 

Who pays the Bills? - Think Strategically, Spend Tactically Core Infrastructure is a Shared Model which is Capacity Managed New capacity requirements due to volume growth are centrally funded New requirements due to new projects are IT Line of Business funded out of Project Capital Budgets

FINAL THOUGHTS: 

FINAL THOUGHTS SOA is a long term strategy Deliver SOA Incrementally (no big bang!) Deliver Business Value early and often Think Strategically, Spend Tactically Find an Investment model that fits your enterprise SOA is a solution that is The Best Fit for SPE IT and it’s business lines, and is Highly Adaptable; Delivers Faster Time to Value for new systems, additional functionality to existing SOA enabled applications, existing application integration, and building composite applications (Portals)