The Business Of IT
Bhavish Madurai's Blog : "Mulling over the best practices in Enterprise IT and Emerging Disruptive Innovation"
Saturday, 20 October 2018
Sunday, 19 March 2017
Speaking at the PostalVision 2020 on disruptive innovation through next generation cognitive solutions across Public Sector. Check out the event which is conducted as an open conversation about future "Postal Platform Possibilities" from all players across the ecosystem
Click here for Event details
Click here for Event details
Thursday, 25 June 2015
Reinvigorate Customer Experiences by Harnessing Power of Analytics
Today’s organizations are facing multiple drivers in the race to get ahead of the competition and drive greater revenues. These drivers could be increasing customer expectations and new buying behaviors, disruptive product innovation, increasing demand for regulatory compliance and risk awareness or increased profitability measures. We are now poised to enter a new era of customer experience management in which winning organizations will move beyond measuring customer satisfaction and defection only to approaches based on a broader understanding of customer considering a more holistic set of data that is both internal to the organization and available externally in the social ecosystem.
Customer Experience Management is underpinned by a clear focus on a set of main pillars, namely, loyalty, retention, migration. Research has shown that the total value at stake from customer migration – defined as significant changes in customer relationships up or down – is more than 10 times the value of defection alone. Winning organizations are looking at positive disruptive innovation using techniques like analytics to drive new insights around understanding customer behavior patterns and better positioning of products and services for increased acceptance leading to revenue and thereby profit.
Challenges & Missed Opportunities :Businesses today are mostly missing insights in identifying most important customers and mitigating the risk of these customers moving to a competitor. There is a lacking in understanding of the holistic customer profile, customer migration patterns and behavior that hinders targeted marketing, service and sales campaigns. Knowing which products are best to offer their existing customers depending upon change in buying patterns. Another key challenge is the lack of understanding customer profitability and upsell opportunities that has been tailored to the migration patterns and buying behavior. Added to this is the ability to capture customer web and social preferences including market sentiment data to drive better insights for marketing and sales.
Some key compelling events include the rise in customer attrition / migration for a line of business, region or distribution channel but the organization does not know why. Organization is unable to achieve premium growth targets with just new business. Up-sell and cross-sell initiatives are not achieving target growth objectives as they are not targeted to a specific customer profile / demographic.
This could be due to red flags such as silo-ed line of business approach due to technical infrastructure or by current business process and service model, minimal investments in web and social media initiatives to capture complete data set for customer and the key fact that customer data is fragmented across multiple systems and repositories
Business Goal/Objectives : Thriving businesses can leverage the power of advanced analytics solutions and the ability of factoring both internal and external customer data to drive better understanding of customer migration and satisfaction patterns. This process includes assimilating technology with analytics strategy while identifying quantifiable goals for improving customer satisfaction thereby resulting in better customer retention with a direct impact on improved revenue and profit margins.
Trends in the Industry : Since the recent emphasis on the use of analytics in almost every sector, industry leaders are embarking on leveraging actionable intelligence to monitor internal and external customer data, predict outcomes and to create new revenue sources. It is an established fact that acquiring new customers can cost as much as five times more than satisfying and retaining current customers. A Data monitor report noted that a large Midwest US insurance company could boost their direct premiums by $1M by increasing their customer retention by 1%. Customer retention calculation is not just about keeping good customers but also understanding their behaviors when acquiring new customers and allowing poor performing customers to exit.
In the insurance sector for example, companies can no longer rely on investment income to achieve shareholder profit demands since the economic collapse. Sustaining continuous incoming premium generated by profitable satisfied customers is paramount. The same principle applies to attrition within agent driven businesses where agent satisfaction and retention is key to increasing revenue and improving margins.
Within the Automotive sector, manufacturers are increasing using advanced analytics to understand customer buying behavior, migration and churn patterns and studying product affinities in order to improve cross-sell and up-sell opportunities. In Retail and CPG sector, improved customer satisfaction, quality, retention and loyalty efforts are being driven by adoption of analytical techniques to:
- Address growth of constantly connected consumers with local needs; the consumer sometimes knows more than retail salespeople
- Bring innovative offerings such as personal shoppers, to market rapidly; precisely target consumer needs
- Understand the big picture, including consumers, partners, competition
- Streamline the buying process using integrated mobile banking
- Focus on consumer-related data rather than product-related data
- Gain unique insights into market risks
- Adjust strategy continually to the evolving market and marketplace
Key Stakeholders: The Chief Marketing Office (CMO), is responsible for sales management, product development and distribution channel management. The CMO creates the strategy to target the right segment of the customer base to ensure retention, cross-sell/up-sell and profitability. The Line of business owner is ultimately accountable for revenue management and profit. The CIO community across many industry sectors are also actively contributing to the adoption of analytical techniques to drive realization of business use cases in improving customer satisfaction and retention.
Solution Point of View : The idea is to reinvigorate customer experience by leveraging advanced analytics focusing on KPIs that are driven towards customer analytics models and supported by an agile platform to meet specific satisfaction (CSAT) and retention goals. The solution should be holistic and drive complete lifecycle support including:
- Customer Experience Strategy Alignment– baselines the current customer satisfaction and retention efforts, agree on goals, assesses use of data and underlying technology to develop an actionable set of recommendations, roadmap and business case
- Customer Experience Analytics Realization and Call to Action- Implements analytics to deliver satisfaction and retention KPIs by sourcing and integrating important customer data from social media and third party feeds, building analytic models for CSAT, visualizations and utilizing results to embed new insights into marketing and operations with measurable and verifiable results
We have successfully developed predicitive analytical models that are helping our clients to assess their customer’s value, more accurately target marketing campaigns, create tiered service programs to serve customers commensurate with their value to the company and improve customer retention according to the designed strategy, with measured and verifiable results. We complete end-to-end service offering has been specifically tailored to implement an organizations customer experience strategy that considers data sourcing to implementing results. We leverage Industry Data Models that have been was architected specifically for business intelligence usage versus the competitor’s models that are designed for transactional processing.
Value Impact: The value of in-house customer data can be enhanced further by combining it with relevant external data. Such capability will unveil additional untapped information which will translate into revenue. The value of using analytics to arrive at patterns for understanding customer behavior is significant in terms of the direct correlation to revenue recognition and improving profit margins.
Thank you for reading my post. I regularly write about enterprise transformation and performance management using disruptive innovation in digital solutions including Big Data, Analytics, Cloud, Social, Mobile and Enterprise Architecture. If you would like to read my regular posts then please feel free to also connect onLinkedin, via Twitter, and on my blog on “The Business of IT”
Here are some other posts / publications I have written:
Sunday, 11 January 2015
SOA Reasoning and Thought leadership
This article
aims to align some of the latest thought around thinking around the reasoning
behind SOA from a business case perspective and tries to table some of the
viewpoints that need consideration.
The fundamental
goal of Web Services and SOA is to improve ROI and TCO over traditionally
implemented accidental architecture through point to point interfaces. However,
the use of Web Services doesn't guarantee results. There are a number of
challenges, many of which are organizational and not strictly technical, that
needs to be addressed proactively to achieve measurable benefit.
Narrowing down the set of acceptable ways to use standards from all the available options needs to be checked with policies and procedures. Of course, many of these policies and procedures will naturally need to change over time as regulatory or other compliance requirements change, so when thinking about TCO we need to factor in the inevitable cost of change.
A second challenge is determining who pays for a service shared by many applications. With traditional line of business applications, figuring out who pays is easy - since one team owns everything. For a shared service, ideally each line of business should pay proportional to their use. Those who use it most should pay the most. Essentially this is a transfer-pricing model. It is important to consider how to track usage by each line of business accurately - if you can't measure usage, you can't charge for it!
A third challenge is ensuring that service levels are met. To end users, the customers of the IT infrastructure, the order management application is still the order management application whether it's built as a monolith or it leverages shared services. In either case it must meet the same expectations of performance, availability and functionality. Conversely, if the same user uses two different applications, he may have different expectations of each - even if both applications leverage the same set of shared services.
Let's look at some of the critical success factors (CSFs) and key performance indicators (KPIs) that organizations need to look at when adopting SOA (see diagram below)
While the core Web Services standards successfully address the mechanics of letting applications to talk to one another, successful SOA implementations through delivery of technologies like Integration Buses mean addressing the challenges that lie beyond the pure mechanics of communication. The complexities are numerous: stakeholders with different agendas, policies with cross-functional implications, service levels that must be maintained at all costs, complex interrelationships between services and no lines painted on the data centre floor to connect any of the dots.
Left to grow on its own, a network of Web Services will quickly degenerate into a tangled spaghetti of brittle, single-use integrations and fail to achieve the economies of scale or the cost and flexibility benefits of SOA.
These challenges call for a new breed of solution - SOA Command and Control - that addresses the various technical, business, and organizational requirements and unites all pertinent knowledge in the SOA into a form that's understandable and actionable.
There are five key imperatives of SOA Command and Control: Align, comply, observe, respond, optimize. These five imperatives encapsulate the required, and the associated value, of SOA Command and Control.
Align
IT is successful only if the business is successful, so IT must always be aligned with the business. SOA Command and Control must allow to measure SOA activity against business objectives to understand its current impact on the business, to determine how it's trending, and to predict where it will go in future.
Comply
True SOA Command and Control empowers stakeholders to move from a passive role to an active role of driving policy changes immediately and automatically across the organization. In addition, stakeholders gain visibility as to where and when the policies and procedures are being applied and/or violated.
Observe
By definition, SOA Command and Control provides both detailed and at-a-glance visibility into the inner workings of your SOA at any point in time - automatically, without expensive, time-consuming manual configuration. This facility lets us understand SOA-wide patterns and trends that would never be uncovered with solutions that provide simple statistics and only threshold, rule-based or predictive alerting.
Respond
Root cause analysis (RCA) is important in an SOA because symptoms rarely appear at the location of the root cause - and the root cause may be a service owned by a different group. With SOA Command and Control allow us to accurately and automatically determine the root cause of problems, without expensive, time-consuming manual configuration of rules or relationships. And, once the root cause is determined, the business process can respond in one of many different ways such as notifying administrators, black-listing users, rolling back service changes, rationing capacity, or modifying documents in transit. These responses can be triggered manually, fully automated or even manually overridden when automated responses don't produce the desired result.
Optimize
As with any IT infrastructure, services have a finite capacity to process consumer requests. Determining the capacity requirements of services is especially complicated because each consumer has a different pattern to use with different kinds of requests, and different peak usage periods. And, as new consumers come online, they consume capacity from the service and potentially affect the service level of everybody else. SOA Command and Control lets the business both proactively and reactively optimize the allocation of scarce service resources.
With an effective SOA Command and Control infrastructure, policies can not only be defined once, centrally, but also automatically enforced in the fabric of the network itself. The capabilities of an effective SOA Command and Control platform lets organizations bypass the knowledge gap and successfully achieve the economies of scale as well as the critical cost, time and flexibility benefits of SOA.
With effect to this need, typical organizations intend to leverage the power of standards based, metric driven SOA by implementing the ESB product suites for application integration using a phased approach.
Narrowing down the set of acceptable ways to use standards from all the available options needs to be checked with policies and procedures. Of course, many of these policies and procedures will naturally need to change over time as regulatory or other compliance requirements change, so when thinking about TCO we need to factor in the inevitable cost of change.
A second challenge is determining who pays for a service shared by many applications. With traditional line of business applications, figuring out who pays is easy - since one team owns everything. For a shared service, ideally each line of business should pay proportional to their use. Those who use it most should pay the most. Essentially this is a transfer-pricing model. It is important to consider how to track usage by each line of business accurately - if you can't measure usage, you can't charge for it!
A third challenge is ensuring that service levels are met. To end users, the customers of the IT infrastructure, the order management application is still the order management application whether it's built as a monolith or it leverages shared services. In either case it must meet the same expectations of performance, availability and functionality. Conversely, if the same user uses two different applications, he may have different expectations of each - even if both applications leverage the same set of shared services.
Let's look at some of the critical success factors (CSFs) and key performance indicators (KPIs) that organizations need to look at when adopting SOA (see diagram below)
While the core Web Services standards successfully address the mechanics of letting applications to talk to one another, successful SOA implementations through delivery of technologies like Integration Buses mean addressing the challenges that lie beyond the pure mechanics of communication. The complexities are numerous: stakeholders with different agendas, policies with cross-functional implications, service levels that must be maintained at all costs, complex interrelationships between services and no lines painted on the data centre floor to connect any of the dots.
Left to grow on its own, a network of Web Services will quickly degenerate into a tangled spaghetti of brittle, single-use integrations and fail to achieve the economies of scale or the cost and flexibility benefits of SOA.
These challenges call for a new breed of solution - SOA Command and Control - that addresses the various technical, business, and organizational requirements and unites all pertinent knowledge in the SOA into a form that's understandable and actionable.
There are five key imperatives of SOA Command and Control: Align, comply, observe, respond, optimize. These five imperatives encapsulate the required, and the associated value, of SOA Command and Control.
Align
IT is successful only if the business is successful, so IT must always be aligned with the business. SOA Command and Control must allow to measure SOA activity against business objectives to understand its current impact on the business, to determine how it's trending, and to predict where it will go in future.
Comply
True SOA Command and Control empowers stakeholders to move from a passive role to an active role of driving policy changes immediately and automatically across the organization. In addition, stakeholders gain visibility as to where and when the policies and procedures are being applied and/or violated.
Observe
By definition, SOA Command and Control provides both detailed and at-a-glance visibility into the inner workings of your SOA at any point in time - automatically, without expensive, time-consuming manual configuration. This facility lets us understand SOA-wide patterns and trends that would never be uncovered with solutions that provide simple statistics and only threshold, rule-based or predictive alerting.
Respond
Root cause analysis (RCA) is important in an SOA because symptoms rarely appear at the location of the root cause - and the root cause may be a service owned by a different group. With SOA Command and Control allow us to accurately and automatically determine the root cause of problems, without expensive, time-consuming manual configuration of rules or relationships. And, once the root cause is determined, the business process can respond in one of many different ways such as notifying administrators, black-listing users, rolling back service changes, rationing capacity, or modifying documents in transit. These responses can be triggered manually, fully automated or even manually overridden when automated responses don't produce the desired result.
Optimize
As with any IT infrastructure, services have a finite capacity to process consumer requests. Determining the capacity requirements of services is especially complicated because each consumer has a different pattern to use with different kinds of requests, and different peak usage periods. And, as new consumers come online, they consume capacity from the service and potentially affect the service level of everybody else. SOA Command and Control lets the business both proactively and reactively optimize the allocation of scarce service resources.
With an effective SOA Command and Control infrastructure, policies can not only be defined once, centrally, but also automatically enforced in the fabric of the network itself. The capabilities of an effective SOA Command and Control platform lets organizations bypass the knowledge gap and successfully achieve the economies of scale as well as the critical cost, time and flexibility benefits of SOA.
With effect to this need, typical organizations intend to leverage the power of standards based, metric driven SOA by implementing the ESB product suites for application integration using a phased approach.
Wednesday, 16 July 2014
Tuesday, 8 July 2014
Governance and Control Challenges
and Approaches for Service Oriented Architectures
Bhavish Madurai
(a) Kingston University, Penrhyn Road, Kingston Upon Thames, KT1 2EE
Abstract
Service Oriented Architecture (SOA) has been advocated
to deliver the promise of better integration in order to help organisations to
be adaptable and agile to changes in the market, competition, regulation, compliance
and more importantly to become sustainable. Modelling and formalisms can play a
major role in achieving true service orientation. The IT industry for some time
now has recognized the need for understanding and modelling Enterprise
Architectures and Enterprise Integration – yet in practice the problem is often
approached using methods and tools that are more art than science. The
service-oriented architecture (SOA) paradigm provides a promising way to
address these challenges at the level of the company’s IT infrastructure. These
challenges and the management of the introduced complexity and heterogeneity
are targeted by SOA Governance approaches. Though the basic structure of IT
Governance frameworks is applicable to SOA implementations, they lack
applicability concerning some SOA-specific challenges.
In this paper, I discuss deficiencies of current
methods and provide insights of how these challenges can be potentially
addressed through SOA Governance approaches that are underpinned by modelling
and simulation techniques and processes.
Introduction
The SOA paradigm provides for a holistic approach for
the execution of end to end business processes within enterprise architectures (EA).
Services represent a central aspect and foundation of the architectural
paradigm SOA. Services can be defined as “atomic invariable building blocks that
can be combined flexibly over open communication mechanisms”. Their functionality scope is small and they
appear in multiplicity. Generally, services are designed to support reusability
in different scenarios by simple reconfiguration. Service functionalities can
be automatically discovered via service brokers or registries that are
centrally placed in an implementation landscape
Services are centrally registered either on a database
or through a file, providing information about the services upon request. While
interacting, services are loosely coupled and the mutual association is via discrete
messages. Dependencies are minimized to mere awareness, facilitating a number
of operations, e.g., their replacement by other services during runtime.
Service operations always involve several parties or stakeholders. Services therefore
adhere to a communications contract, a Service Level Agreement (SLA), defined
by one or more service descriptions and related documents in order to regulate and
control service execution [TErl05].
These characteristics make an SOA a powerful, flexible, easy to operate
candidate for a company’s enterprise architecture. The SOA paradigm offers a number of advantages. However, these advantages imply challenges
emerging from the large numbers of services as scalability requirements and
their heterogeneous nature increases. There are various methods and frameworks
currently in use for SOA, developed either by organic processes or propagated
by product vendors. Most of these frameworks lack the formalisms required to
accurately describe integration requirements between participating
applications. The following are some the key pitfalls of SOA that are currently
observed.
Pitfalls
|
Reality / Challenges
|
SOA is seen as a better version of EAI that finally improves
middleware weaknesses by providing better interoperability, more reliability,
wider adopted standards etc,
|
SOA is an architecture on higher-level than EAI. It is architecture of
loosely coupled independent services communicating to each other. EAI is
appropriate for small scale integration projects
|
Architects expect loose coupling comes for free with using web
services toolkits or with using standards like SOAP, WSDL, XML Schema and so
on
|
Loose coupling is a result of very careful API Design. Standards and
tools might (or might not) contribute loose coupling
|
Service APIs are often designed from particular application
perspective
|
Service APIs should conform to constraints defined by central body.
This process is usually SOA Governance
|
RESTful services are considered insufficient for enterprise use cases
because there is no standard way how to describe all kinds of
application-level protocols. This makes design, development, management and
monitoring of such services more difficult
|
Design and Development of RESTful services are indeed more difficult,
especially for architects that are used to working with the traditional API
Model. At the same time it is much easier to integrate such services together
|
It is easier to implement new business logic in the middle tier
because it does not require changes in existing applications
|
Any additional business logic should be pushed out to the endpoints as
much as possible. This is more difficult but keeps the SOA system much
cleaner from an architecture perspective.
|
SOA Governance addresses both
design time and run time activities for service development by default
|
In reality SOA Governance is a involves a substantially bigger people / process and
technology problem and needs appropriate focus on these areas in order to get
maximum returns
|
Thus, a critical aspect for success in the adoption and the operation of
SOA is governance. The primary goal of SOA Governance is compliance, i.e. compliance
to intra-company, normative, or legal standards (required by, e.g., the
Sarbanes Oxley Act, Basel II etc.). Following specific guidelines in a top-down
approach, an SOA is directed through a number of maturity levels or development
steps – it is adopted, commissioned, operated, and continuously monitored and
checked for adherence to regulations
The Problem Statement
The problem statement hence for this study is to address the issue of
ambiguity, testability of the design and run time artefacts and, the prevalent
lack of proper due diligence / governance when creating and deploying services
using currently available service orientated architecture methods and tools.
SOA Reasoning from a business justification perspective
The fundamental goal of Web Services and SOA is to improve Return on
investment (ROI) and Total Cost of Ownership (TCO) over traditionally
implemented accidental architectures through point to point interfaces which
have caused issues of ambiguity, scale and cost of change and large number of
redundant interfaces for every small change. However, the use of Web Services
doesn't guarantee results. There are a number of challenges, many of which are
organizational and not strictly technical, that needs to be addressed
proactively to achieve measurable benefit. Narrowing down the set of acceptable
ways to use standards from all the available options needs to be checked with
policies and procedures. Of course, many of these policies and procedures will
naturally need to change over time as regulatory or other compliance
requirements change, so when thinking about TCO the inevitable cost of change
needs to be considered.
A second challenge is determining who pays for a service shared by many applications. With traditional line of business applications, figuring out who pays is easy - since one team owns everything. For a shared service, ideally each line of business should pay proportional to their use. Those who use it most should pay the most. Essentially this is a transfer-pricing model. It is important to consider how to track usage by each line of business accurately - if one can't measure usage, one can't charge for it!
A third challenge is ensuring that service levels are met. To end users, the customers of the IT infrastructure, the order management application is still the order management application whether it's built as a monolith or it leverages shared services. In either case it must meet the same expectations of performance, availability and functionality. Conversely, if the same user uses two different applications, he may have different expectations of each - even if both applications leverage the same set of shared services. Figure [1] below introduces an aligned framework to detail the critical success factors (CSFs) and key performance indicators (KPIs) that need to be considered at when adopting SOA (see diagram below)
A second challenge is determining who pays for a service shared by many applications. With traditional line of business applications, figuring out who pays is easy - since one team owns everything. For a shared service, ideally each line of business should pay proportional to their use. Those who use it most should pay the most. Essentially this is a transfer-pricing model. It is important to consider how to track usage by each line of business accurately - if one can't measure usage, one can't charge for it!
A third challenge is ensuring that service levels are met. To end users, the customers of the IT infrastructure, the order management application is still the order management application whether it's built as a monolith or it leverages shared services. In either case it must meet the same expectations of performance, availability and functionality. Conversely, if the same user uses two different applications, he may have different expectations of each - even if both applications leverage the same set of shared services. Figure [1] below introduces an aligned framework to detail the critical success factors (CSFs) and key performance indicators (KPIs) that need to be considered at when adopting SOA (see diagram below)
Figure 1: Enterprise Architecture for Boundaryless Information Flow
While the core Web Services standards successfully address the mechanics
of letting applications to talk to one another, successful SOA implementations
through delivery of technologies like Integration Buses mean addressing the
challenges that lie beyond the pure mechanics of communication. The
complexities are numerous: stakeholders with different agendas, policies with
cross-functional implications, service levels that must be maintained at all
costs, complex interrelationships between services and no lines painted on the
data centre floor to connect any of the dots. Left to grow on its own, a
network of Web Services will quickly degenerate into a tangled spaghetti of
brittle, single-use integrations and fail to achieve the economies of scale or
the cost and flexibility benefits of SOA.
These challenges call for a new breed of solution - SOA Command and
Control - that addresses the various technical, business, and organizational
requirements and unites all pertinent knowledge in the SOA into a form that's
understandable and actionable. There are five key imperatives of SOA Command
and Control: Align, comply, observe, respond, optimize. These five imperatives
encapsulate the required, and the associated value, of SOA Command and Control.
Align
IT is successful only if the business is successful, so IT must always be aligned with the business. SOA Command and Control must allow to measure SOA activity against business objectives to understand its current impact on the business, to determine how it's trending, and to predict where it will go in future.
IT is successful only if the business is successful, so IT must always be aligned with the business. SOA Command and Control must allow to measure SOA activity against business objectives to understand its current impact on the business, to determine how it's trending, and to predict where it will go in future.
Comply
True SOA Command and Control empowers stakeholders to move from a passive role to an active role of driving policy changes immediately and automatically across the organization. In addition, stakeholders gain visibility as to where and when the policies and procedures are being applied and/or violated.
True SOA Command and Control empowers stakeholders to move from a passive role to an active role of driving policy changes immediately and automatically across the organization. In addition, stakeholders gain visibility as to where and when the policies and procedures are being applied and/or violated.
Observe
By definition, SOA Command and Control provides both detailed and at-a-glance visibility into the inner workings of SOA at any point in time - automatically, without expensive, time-consuming manual configuration. This facility lets us understand SOA-wide patterns and trends that would never be uncovered with solutions that provide simple statistics and only threshold, rule-based or predictive alerting.
By definition, SOA Command and Control provides both detailed and at-a-glance visibility into the inner workings of SOA at any point in time - automatically, without expensive, time-consuming manual configuration. This facility lets us understand SOA-wide patterns and trends that would never be uncovered with solutions that provide simple statistics and only threshold, rule-based or predictive alerting.
Respond
Root cause analysis (RCA) is important in an SOA because symptoms rarely appear at the location of the root cause - and the root cause may be a service owned by a different group. With SOA Command and Control allow us to accurately and automatically determine the root cause of problems, without expensive, time-consuming manual configuration of rules or relationships. And, once the root cause is determined, the business process can respond in one of many different ways such as notifying administrators, black-listing users, rolling back service changes, rationing capacity, or modifying documents in transit. These responses can be triggered manually, fully automated or even manually overridden when automated responses don't produce the desired result.
Root cause analysis (RCA) is important in an SOA because symptoms rarely appear at the location of the root cause - and the root cause may be a service owned by a different group. With SOA Command and Control allow us to accurately and automatically determine the root cause of problems, without expensive, time-consuming manual configuration of rules or relationships. And, once the root cause is determined, the business process can respond in one of many different ways such as notifying administrators, black-listing users, rolling back service changes, rationing capacity, or modifying documents in transit. These responses can be triggered manually, fully automated or even manually overridden when automated responses don't produce the desired result.
Optimize
As with any IT infrastructure, services have a finite capacity to process consumer requests. Determining the capacity requirements of services is especially complicated because each consumer has a different pattern to use with different kinds of requests, and different peak usage periods. And, as new consumers come online, they consume capacity from the service and potentially affect the service level of everybody else. SOA Command and Control lets the business both proactively and reactively optimize the allocation of scarce service resources.
As with any IT infrastructure, services have a finite capacity to process consumer requests. Determining the capacity requirements of services is especially complicated because each consumer has a different pattern to use with different kinds of requests, and different peak usage periods. And, as new consumers come online, they consume capacity from the service and potentially affect the service level of everybody else. SOA Command and Control lets the business both proactively and reactively optimize the allocation of scarce service resources.
With an effective SOA Command and Control
infrastructure, policies can not only be defined once, centrally, but also
automatically enforced in the fabric of the network itself. The capabilities of
an effective SOA Command and Control platform lets organizations bypass the
knowledge gap and successfully achieve the economies of scale as well as the
critical cost, time and flexibility benefits of SOA. With effect to this need,
typical organizations intend to leverage the power of standards based, metric
driven SOA by implementing the Enterprise Service Bus (ESB) product suites for
application integration using a phased approach. However it is important to
consider that early implementations of ESB based architectures have not focused
on governance issues where services have been built without any conformance
checks to the design constraints or their models have not been tested through
formal methods there by resulting in the implementation not recognizing the
intended benefits of service orientation.
Governance Findings
In the area of IT Governance, a number of existing frameworks provide
structures, action scope, guidelines, reference processes, and best practices.
However, the basic structure of IT Governance frameworks often exceeds the needs
of SOA, while lacking applicability concerning SOA specific challenges, e.g.,
cross-company cooperation issues like inter-company service deployment. Hence,
in order to meet SOA Governance requirements, existing IT Governance frameworks
need to be extended [Wool06].
Diligent SOA Governance has been recognized in recent years as a major
requirement for successful adaptation and operation of an SOA, especially for
large systems. Governance in general, be it political governance, Corporate or
IT Governance, deals with the successful governing of organizations
or projects. SOA Governance elaborates guidelines and rules that need to
be adopted and realized by the affected management processes. It provides a
means to effectively exploit the capabilities of SOA [Mar06]. The achievement
of governance goals is supported by SOA Maturity Models and respective
governance mechanisms.
SOA Governance focuses on the smooth adoption and successful operation
of an SOA. By providing guidelines, responsibilities, and reference processes, it
ensures its integrity and adaptability to business and administration
processes. Governance tools support the monitoring and control of services
concerning the alignment to business processes. A best practices catalogue
serves as a repository of implementation recommendations that are continuously
supplemented, supporting all of the mentioned
procedures. Besides the achievement of IT goals and the realization of
business-IT alignment, a further goal of SOA Governance is to realize system
adherence to regulations and standards, such as ISO norms or internal
regulations. Existing approaches to governance frameworks do not fully cover
special SOA Governance requirements.
There are few scientific contributions that have dealt with SOA
Governance so far. Nevertheless, a definition is important. There are numerous
definitions of SOA Governance, all diverging in focus. In the context of this
paper, based on [20], we understand SOA Governance as a holistic long-term management model. It guarantees sufficient adaptability
and integrity of an SOA system as well as the ability to check services
concerning capability, reusability,
security, and strategic business alignment.
Overall goals are SOA compliance and the guarantee of reusability and standardization
throughout the system.
Numerous frameworks have been specified for IT Governance, e.g., CObIT,
ITIL, ISO 17799, and many more. The ISO 17799 standard primarily targets security
management [ISO], the IT Infrastructure Library (ITIL) mainly deals with IT
process definition [OGC]. CObIT defines
34 reference processes as control framework, more tightly aligned with the
business objectives of the organization than with operational issues [ITGI]. Comparing all these frameworks
discloses that they complement each other and, as a matter of fact, CObIT
represents a frame integrating all other frameworks – it has, so far, become a
de facto standard for IT control globally.
In the area of SOA Governance frameworks, there are a few research
contributions. Existing concepts are mostly motivated by software providers
that offer SOA business solutions and closely align their SOA Governance
perspectives with their products (“the fairly narrow view” [Allen08]). An overview of the different
understandings of this topic is given by [AMCIS08], providing a survey
and analysis of ten approaches to SOA Governance. Ten typical components of SOA
Governance have been identified by times included in existing approaches (cf.
Table 1). Detailed descriptions can be found in [AMCIS08].
Examination of the comparison
shows that components that are covered by IT Governance frameworks are
considered less important for SOA Governance. Role and accountabilities, metric
models, and impact on behaviour are all not taken into account at the first
place and, besides the first, they are part of standard IT Governance
frameworks [HBR04]. This illustrates one difference between the
approaches – some aim at completely covering SOA Governance challenges, others,
not considering maturity models and behavioural impact, build on the additional
implementation of parts of IT Governance approaches. Implementing parts of an
IT Governance approach and additionally following an SOA Governance model
increases cost and time efforts in IT departments – a diligent SOA Governance
model should cover not less than all SOA related regularization aspects. Few approaches emphasize mechanisms to impact
behaviour of employees or people working with the system, as well as SOA
Maturity Models - although these aspects seem important for the operation of an
SOA. Common IT Governance frameworks like CObIT address these issues. Although
there are plenty of maturity models, e.g. they did not yet establish as a
prevailing element of SOA Governance approaches, although they are part of, e.g.,
CObIT.
This supports the need
mentioned at the beginning to bring together best practices from IT Governance and
additional SOA-related regulation requirements – an extension of either SOA or
IT Governance frameworks to allow for the respective needs, as already stated
by [Woolf]. Overall, organizational
changes, roles/accountabilities, policy catalogues, and service lifecycle,
integrated in the majority of approaches, can be considered the most important elements.
The governance model below Figure[2] gives a clear separation of concerns and
the granularity of services.
Figure 2: SOA Governance Reference Model
Steps to take when establishing SOA Governance:
Thinking of SOA Governance as a layered model helps to clearly articulate the vision and the deliverables and ownership of actions thereby leading to helping to build the justification case/ business case with tangible benefits identified at each layer. Each aspect of SOA governance requires defined goals which could be around SOA processes and policies must be defined and documented, SOA processes must have clear accountabilities, there should be strong support/commitment from senior management, all SOA processes should be agile, that facilitates continuous change and feedback. For effective SOA Governance, it is necessary to have workable organizational structures to control and support all governance activities. People within the SOA Governance Model must be empowered to make and enforce decisions. Each enterprise will have differing structure requirements and should transcend the organization chart. SOA Board and SOA Compliance Team should have global, regional or business line scope
Thinking of SOA Governance as a layered model helps to clearly articulate the vision and the deliverables and ownership of actions thereby leading to helping to build the justification case/ business case with tangible benefits identified at each layer. Each aspect of SOA governance requires defined goals which could be around SOA processes and policies must be defined and documented, SOA processes must have clear accountabilities, there should be strong support/commitment from senior management, all SOA processes should be agile, that facilitates continuous change and feedback. For effective SOA Governance, it is necessary to have workable organizational structures to control and support all governance activities. People within the SOA Governance Model must be empowered to make and enforce decisions. Each enterprise will have differing structure requirements and should transcend the organization chart. SOA Board and SOA Compliance Team should have global, regional or business line scope
This requirement warrants for an enterprise
class coherent SOA framework to help deliver this governance and control
through formal methods bringing together the required rigor and control for SOA
A Complete Coherent Framework for SOA Governance
There is a need to define a complete, coherent governance framework for
SOA and here the fundamentals of such a framework are introduced. Each of the
layers defined in the diagram below addresses key concerns and considerations
that we have brought to light in the sections above. This framework also highlights clear
responsibilities between vendor / suppliers and customer organisations who
engage in outsourcing partnerships to deliver service orientation. Such a
comprehensive framework ensures credibility, adaptability and flexibility in
approach when using service orientation.
However to make this framework really come to life, early research
indicates that we must use complimentary formal modelling methods within the
context of the following framework to ensure that control and due diligence is
applied both in Design Time and Run Time of service development by introducing
formal modelling methods and techniques for service orientation in relation to
the overarching framework given in Figure [3] below
Design
Time Governance
|
Run Time Governance
|
Figure 3: A Coherent and Complete SOA Governance Framework
It is very important to consider that the governance is implemented not
just in TOP DOWN or BOTTOM UP fashion but using a MIDDLE-OUT / Blended (i.e.
focussing both on design time and run time activities) approach where in
there are equal considerations made to business justification, roles and
responsibilities, processes at the TOP while also realistically implementing
key formal techniques at the BOTTOM to ensure that services developed are in
conjunction with the processes and guidelines defined.
While TOP DOWN SOA Governance requirements can
be addressed through best practice from industry and reference implementations,
the BOTTOM UP requirements warrants formal methods and approaches.
IEEE STD 1471-2000 defines
Enterprise Architecture as “the systems fundamental organisation, embodied in
its components, their relationships to each other and to the environment, and
the principles guiding its design and evolution”
One of the other leading Enterprise Architecture Frameworks from The
Open Group (TOGAF 9) defines Enterprise Architecture as
·
A formal description of a
system, or a detailed plan of the system at the component level, to guide its
implementation (source: ISO/IEC 42010:2007)
·
The structure of
components, their inter-relationships, and the principles and guidelines
governing their design and evolution over time.
Other major definitions detail Enterprise Architecture is a set of
principles, practices and processes, that defines the structure as well as
operations of the enterprise and its systems for effective realisation of
enterprise goals to enable an enterprise performance to be predictable,
measurable and manageable
The key factor in the above definitions for enterprise architecture is
the focus on principles, components and more importantly formal
inter-relationships between components.
Much of the architecture we see today do not emphasize on formal
relationships between participating components which is brings the main problem
of ambiguity and error within various architectural layers. The problem domain
around failed programmes and effort lost in extensive and often repeated
testing lifecycles is primarily because of ambiguity in requirements (capture,
analysis or engineering) and then ambiguity between architecture and
requirements and finally the cascading effect of ambiguity between
implementation and architecture. There
is ambiguity because requirements are divorced from architecture and
architecture is divorced from implementation. As architects we write a lot of
documentation and create a lot of great diagrams.
However, how many of us have really proven that
what we have written in terms of architecture is actually what is built
finally? If proven, is the proof empirical or derived or formal?
While empirical or derived proofs (through various kinds of testing) are
okay for simple projects with straight forward architectures, they do not water
on large programmes and end up in extensive testing cycles which are often
repeated and involve huge efforts and wastage of time.
As a result of ambiguity we end up with:
·
Poor Alignment of IT to
business goals and objectives
·
High Cost in managing
complexity
·
High cost of testing
·
Lack of transparency and
control in delivery and change management issues in large programmes
·
Poor re-use of key IT
assets
·
Lack of Business agility
hindered by inefficient IT Architectures
So removing ambiguity by joining up things, moves us from “art to
engineering” leading to the industrialisation of IT through efficient use of
architecture methods. Testable Architectures described in the next chapter is a
formalism that addresses governance issues of ambiguity through modelling and
simulation for service oriented architectures (SOA)
A formal methodology for Service Orientation
Testable architectures are the foundation of removing this ambiguity.
Testable Architecture enables the architecture of a system to be described
unambiguously using Choreography Description Language (CDL) and BPMN2, such
that it may be tested against requirements and is used to generate
implementation artefacts for delivery thereby improving governance and control
across large system integration programmes.
If we can deliver a solution that connects requirements to architecture
and to implementation, we shall change the nature of complex systems delivery,
reducing costs, mitigating delivery risks and improving time to market of key
business functionality
Testable architecture methodology uses a unique combination of
abstraction, modelling and simulation to the architecture definition process
and the ordered interactions between participating components coupled with any
constraints on their implementations and behaviour. Testable architecture is
formal hence reduces defect injection across a programme lifecycle. Testable
architecture is formally grounded and with strong type definition and has its
foundations in “pi-calculus” which is a formal communication framework
developed by Prof. Robin Milner – Professor Emeritus of Computer Science at the
University of Cambridge and Turing award recipient: (Miln80a, Miln93,
Miln99)
Key benefits of Testable architectures:
·
Improved delivery assurance
·
Reduced cost of implementation
and testing
·
Increased quality of overall
solution
·
Increased agility of overall
solution
Testable Architecture is a unique method to unify both types modelling
techniques in order to capture the several facets of the distributed
communication systems and demonstrate the power of modelling to develop
software artefacts of high quality. The development of distributed messaging
systems is a complex activity with a large number of quality factors involved in
defining success. Despite the fact that inductive modelling is scientifically
thorough for analysing and building quality engineered systems, it brings
additional cost into the development life cycle. Hence, a development process
should be able to blend inductive and deductive modelling techniques, to adjust
the equilibrium between cost (time resource) and quality. As a result, the
field of software process simulation has received substantial attention over
the last twenty years. The aims have been to better understand the software
development process and to mitigate the problems that continue to occur in the
software industry which require a process modelling framework.
When it comes to modelling the interaction and communication of
Distributed System, Choreography Description Language (CDL) is one of the most
efficient and robust tool. CDL forms part of Testable Architecture, hereafter
TA, and is based on pi calculus which is a formal language to define the act of
communicating.
TA abstracts the given set of constructs using pi-calculus and provides
a language through a series of methods and logical sequences that are presented
in a unified toolset. The latter facilitates the modelling and simulation of
communication in concurrent systems. In order to achieve rigour in the power of
modelling, TA exploits the capability of CDL as a framework to model global
message flows and the subsequent impact of communication on local behaviours,
which is defined by pi-calculus. Formal description in the global calculus, has
a precise representation in the local calculus (Carb06). As a result, unlike other modelling frameworks, TA is not
limited to deductive and static modelling techniques, as it uses pi calculus
based on non-deterministic models, that are well known within the academic
world, but not yet of a common use within industry. In fact TA acts as a
natural “glue” to blend the various modelling approaches providing a framework
with the primary objective of removing the ambiguity within the modelling process
Conclusion
Governance frameworks address aspects of an SOA that need to be
regulated to guarantee business-IT alignment and successful long-term
operation. However, for SOA-specific regulation requirements beyond current IT
Governance scope, current literature and industry efforts lack applicability in
some aspects. In this paper, I have discussed particular aspects of
service-oriented systems that exceed coverage by existing frameworks.
Two major areas were identified where future SOA Governance approaches
to provide steering and control support in order to operate an SOA
successfully: service lifecycle management addressing service-specific phases
and stakeholder integration. Concerning service lifecycle management, the
precise definition and the regulation of particular phases are the most
important aspects. In particular, service granularity is an important detail
whose impact will increase with growing adoption of service-oriented systems
and service marketplaces.
Accurate service deployment regulations and usage of Testable
architectures ensure consistent operation and well-maintained registries and
cover tight integration of the service customer. A major challenge is to define
and provide a reliable service change process. Using an adequate service
lifecycle, service lifecycle management can be deployed as a powerful
governance instrument addresses these challenges.
Existing respective governance models do not address all outlined
aspects to an extent which relates to their importance in the operation of an
SOA. Service lifecycle management and the field of open service marketplaces give rise to a number of crucial
tasks to be regulated by governance that have not been integrated in according
frameworks yet. Findings till date
indicate a lack of standardization in advocacy of service orientation and
governance methods and practices. In fact most of the current SOA frameworks
are driven by organic needs rather than based upon the use of formal methods
which give the much needed rigour, proof and repeatable success required to
make SOA deliver upon its promise as an architecture paradigm
With development budgets getting tighter and the need for agility
becoming more important, there is simply no need for architectural errors to
still be present in the testing stage of IT projects. They’re expensive and
time consuming to fix and, crucial business requirements fall through the gaps.
By bringing in a high level of testing rigour, measurement and formalism to SOA
and the software development lifecycle, Testable architecture will deliver real
returns for customers, reducing the cost of ongoing projects, and freeing up
budget for further, revenue-generating initiatives
In conclusion, Testable Architecture’ ensures that artefacts defined in
each phase of the software development lifecycle (e.g. business requirements,
architectural models, service designs, code, etc.) can be verified for
conformance for truly realisable SOA Governance. For example, architectural
models can be verified against requirements, service designs against
architectural models and code against service designs. This guarantees that the
deployed systems can be shown to implement the originating business
requirements. Future work covers further investigation of proposed models
around Testable architectures for SOA Governance and their validation
concerning the requirements and challenges that an SOA really makes.
Reference
(Allen08)
|
Paul Allen. SOA Governance: Challenge or Opportunity? CBDI
Journal, pages 20–31, April 2008. Retrieved July 20, 2008 from
http://www.cbdiforum.com/secure/interact/2008-
04/challenge\_opportunity\_br.php.
|
(TErl05)
|
Thomas Erl. Service-Oriented Architecture - Concepts, Technology, and
Design. Prentice Hall Professional Technical Reference, Boston, 2005.
|
(Wool06)
|
Bobby Woolf. Introduction to SOA Governance. IBM Developerworks,
June 2006. Retrieved July 22, 2007 from http://www.ibm.com/developerworks/library/ar-servgov/.
|
(Mar06)
|
Eric Marks and Michael Bell. SOA: A Planning and Implementation
Guide for Business and Technology. John Wiley & Sons, Inc., New
Jersey, USA, 2006
|
(ISO)
|
International Organization for Standardization (ISO). ISO 17799.
http://www.17799central.com/.
|
(OGC)
|
Office of Governance Commerce (OGC). IT Infrastructure Library,
2007.
http://www.itil.org.
|
(ITGI)
|
IT Governance Institute (ITGI). CobiT 4.1, 2007.
http://www.itgi.org/cobit.
|
(AMCIS08)
|
Michael Niemann, Julian Eckert, Nicolas Repp, and Ralf Steinmetz.
Towards a Generic Governance Model for Service-oriented Architectures.
In Proceedings of the Fourteenth Americas Conference on Information
Systems (AMCIS 2008), Toronto, ON, Canada, 2008.
|
(HBR04)
|
Peter Weill and Jeanne W. Ross. IT Governance - How Top Performers
Manage IT Decision Rights for Superiour Results. Harvard Business
School Press, Cambridge,
MA, 2004.
|
(Carb06)
|
Carbone M, Honda K, Yoshida N, Milner R, Brown G, Ross-Talbot S ,
"A Theoretical Basis of Communication-Centred concurrent Programming", PhD thesis, Imperial College, London UK,
2006
|
(Miln80a)
|
Milner R, “A Calculus of Communicating Systems”, Lecture Notes in
Computer Science, volume 92, Springer-Verlag, 1980
|
(Miln93)
|
Milner R, “The Polyadic pi-Calculus: A Tutorial”, L. Hamer, W. Brauer
and H. Schwichtenberg, editors, Logic and Algebra of Specification,
Springer-Verlag, 1993
|
(Miln99)
|
Milner R, “Communicating and Mobile Systems”,
|
Subscribe to:
Posts (Atom)