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IBM Software GroupBuilding Better Software:Business Driven Development for Service-Oriented SolutionsAlan W. BrownDistinguished EngineerIBM Rational 2007 IBM Corporation

IBM Software GroupAgenda Business Driven Development Three Key Concepts for Successful Software Putting it All Together –Creating an Integrated Workbench Lessons and Next Steps2

IBM Software GroupWe Know Why it is Hard to Develop Software .Time or Cost(Process)To Build (Complexity)* (Team) * (Tools)ComplexityÆVolume of human-generated codeProcessÆMethods, notations, maturityTeamÆSkill set, experience, motivationToolsÆProcess automation3

IBM Software GroupComplexity is Forcing ChangeMainframePC/NT appsUnix apps3rd Party InterfaceAIS ReportsBudgetAnalysis ToolGeneralMaintenanceBroadcastFilterSmart PlusSmart PlusLauncherVendorMaintenanceInvoice AppMesa DataPrinter POUAR - Universal AccountReconciliationSterling VANMailbox (Value)RoadshowS01 - SalesCorrectionsI15 Hand ScanAppsI06 WarehouseManagementPrint CostingE13E3 InterfaceS07 - CellPhonesM02 - MillenniumFringe POI03 Return toVendorD01 Post LoadBillingS06 - Credit AppEquifaxP15 EES EmployeeChange NoticeL02-ResourceScheduling(Campbell)I12 EntertainmentSoftwareA04 - CustRefund ChksResumixCTSFrickCoACHProdigyBanks - ACH and Pos y.comV04-SignSystemU18 - CTOSpec SourceSKU TrackingB01 - StockStatusI10 Cycle PhysicalInventoryI04 HomeDeliveriesI02 TransfersS08 - VertexSalesTaxI11 PriceTestingI09 Cycle CountsS02 LayawaysNPD,SoundScanScorecard - HRS03-PollingI35 - CEIK02Customer RepairTrackingI18SKU RepU16-TexlonI07 PurchaseOrderStoreScorecardNARMStore BudgetReportingValley MediaBMP - Busperformance MngtEDICoordinatorAIMSJournal Entry Tool KitA05 - APCellularRolloverAIMSReportingS05 - HouseChargesOptikaPSPData Warehouse(Interfaces to and from theData Warehouse are notdisplayed on this diagram)I14 Count CorrectionsB02 MerchandiseAnalysisCopyWriter'sWorkspaceMerch Mngr ApprovalBatch ForcastingAd MeasurementAIMS AdminC02 - CapitalProjectsWarrantyBillingSystemOTHER APPS - PCAP - Collections/CreditTM - Credit Card DBUS Bank ReconFileConnect 3ICMS CreditSiteSeerIn-HomeRepairF06 - FixedAssetsStar RepairArthur PlanningAd ExpenseG02 - GeneralLedgerSignSystemAdLauncherSKUPerformanceSKU SelectionToolI35 Early WarningSystemI55 SKUInformationELTPowerSuiteTexlon 3.5SupplierComplianceL60 MDFCoopI05Inventory InfoV01-Price ManagementSystemASISRebateTransferX92-X96Host to AS400CommunicationI01 POReceivingV03- MktReactionsWashington,RGIS,Ntl Bus SystemsS11 - omoAnalysisPOSPlan Administrators(401K, PCS, Life,Unicare, SolomonSmith Barney)E02-EmployeePurchaseS09 - DigitalSatelliteSystemAASP01EmployeeMasterfileP09 - P17Cyborg1E01-EDIP14 On-line NewHire EntryCobra Partner InteractionsI17 Customer PerceivedIn-StockI13- AutoReplenishmentI06 - CustomerOrderS04 - Sales PostingP16 - Tally Sheet Systems and SoftwareNEW SoundscanNPD GroupAIG Warranty GuardM03 - Millennium 3.0Stock Options Business ProcessesProcess InsertionsOrdersAIS CalendarDue DatesStores & MrktsDepositoryBanksVendor SetupConnect 3PDF TransfeConnect 3ReportsCash Over/ShortCash Receipts/CreditMisc Accounting/Finance Apps - PC/NTCOBA(Corp office Budget Assistant)PCBS(Profit Center Budget System)Merchandising BudgetINVENTORY CONTROL APPS - PCCode AlarmDebit ReceivingsDevo SalesDisplay InventoryIn HomeJunkoutsMerchandise WithdrawalPromo CreditsRTV AccrualShrinkAP Research - Inv CntrlAP Research-Addl RptsBook to Perpetual InventoryClose Out ReportingComputer Intelligence DataCount CorrectionsCross Ref for VCB DnldsDamage Write OffDebit ReceivingsDFI Vendor DatabaseDisplay Inventory ReconcileDisplay Inventory ReportingINVENTORY CONTROL APPS - PCDPI/CPIIC BatchingInventory Adj/Count CorrectInventory Control ReportsInventory LevelsInventory RollMerchandise WithdrawalOpen ReceivingsPI Count ResultsPI Time Results from InvPrice ProtectionSales Flash ReportingShrink ReportingSKU Gross MarginSKU Shrink Level DetailUSMVCB DownloadsACCTS REC APPS - PC990CORBad DebtBeneficial FeesBeneficial eCredit FeesPrepared by Michelle MillsAn actual application architectureActual Application Architecture for Consumer Electronics Company4

IBM Software GroupIT organizations must overcome challenges posed byexternal uncertainty and internal inflexibilityExternal Challenges over the Next Ten Years1Internal Challenges over the Next Ten Years1(Percentage of Survey Respondents by Segment)(Percentage of Survey Respondents by Segment)Regulatory uncertaintyRegulatory burdenEconomic uncertaintyLack of skillsShort-term earnings pressureShort-term planningChanging client demandsGovernance issuesWorkforce issuesHigh implementation costs affecting returnLimited attractive growth opportunitiesBack-office, front office disconnectTechnology not IntegratedLimited capital availabilityLegacy technologyChanging market/industry structureLack of willing and suitable partnersn 27125%Immature technology20%15%10%5%0%Insufficient or delayed dataBuy sideSell siden 271Weak vendor management0%5%10%15%20%Processors“Technology exists today but it’s notleveraged. This nets out to ‘we’re notimplementing well enough’.” – Head of ClientService, Universal bank, LondonOn average, financial markets managersspend 20-30% of their time handlingregulatory requirements; this is expected tocontinue into the foreseeable future.Note: 1Executives asked: Which of the following external and internal barriers are most likely to impede your firm’s ability to execute its strategy over the next 10years? (Choose up to 3)Source: IBV/Economist Intelligence Unit Survey5

IBM Software GroupThe Business and IT have to address similarconcernsInnovatingthe business to capturenew valueBusiness Complexity Management Respond to dynamic change Modularity Encapsulation Separation of concerns Deferred commitment Composition Adaptability ReuseITImprovingthe productivityof resources deployed6

IBM Software GroupDevelopment process can bridge the gapPave the Way for Successful Business Innovation Drive development processes and deliveredsolutions from business goals andobjectives Standards (including open source) forinteroperabilityCase Study: Procure to Pay ProcessCustomer Model Driven Architecture (MDA)Division Self-defined, loosely coupled interfacesSharedService Tools to visualize and integrate existing assetsSupplier Declarative specifications and languagesOutsourced Architecture is the key to successful businessinnovation7

IBM Software GroupWhat is Business Driven Development?Business-driven developmentAnAn integratedintegrated approachapproach toto softwaresoftware developmentdevelopment thatthatalignsaligns line-of-business,line-of-business, developmentdevelopment andand operationsoperationsteamsteams toto improveimprove businessbusiness performanceperformanceDevelopment as a business process Align Technology and Business priorities Improve efficiency and responsiveness Create innovative productsSoftware developmentbecomes a driverof competitive advantage8

IBM Software GroupBusiness Driven Development means . Business and IT are aligned Priorities are aligned Execute against priorities Measure against priorities A converged infrastructure across the IT organization Governance Compliance-driven development Development across organizational & geographicalboundaries Common, open development environment Leveraging assets Expedites implementation to more flexible middlewarearchitectures9

IBM Software GroupBusiness Driven Development in Practice is . Adopting more flexible technical architecture based onservices Focus on business agility Improve reuse Adoption of innovative technologies and practices Move to a standard process framework using industrybest practices Consistent delivery of process guidance across the organization Aligned and leveraging industry best practice Measurably improving process maturity Certification based on a clear improvement framework (e.g. CMMi) Automating best practices through integrated tools Adoption of tools platform supporting best practices Strategic use of models and generative approaches10

IBM Software GroupBusiness Driven Development Lifecycle Discover Construct & Test Compose Integrate people Integrate processes Manage and integrateinformation Gatherrequirements Model & Simulate Design Financial transparency Business/IT alignment Process control Manage applications &services Manage identity &compliance Monitor business metrics11

IBM Software GroupWhat’s the Role of Enterprise IT?GOVERNANCE DASHBOARDProcess and portfolio managementRequirements and analysisDesign and constructionBusiness driven processChange & configuration managementManage value Software qualityDevelop flexibly Control risk and change Know what you got Standardize bestpractices Manage change acrossall assets Know who’s doing what Understand and prioritizeneeds and requests Report on what’s goingon for compliance Innovate and adopt newtechnologies Deploy high-performingsolutions Work as a team Measure, Monitor, andoptimize Know when thingschange, and what itmeans12

IBM Software GroupThe IBM Rational Software Delivery PlatformGOVERNANCE DASHBOARDProcess and portfolio managementRequirements and analysisDesign and constructionBusiness driven processChange & configuration managementManage value Real-time analyticslinking financial andsoftware information Real-timeresource management Comprehensivedashboard reportingand drilldown Software qualityDevelop flexibly Proven best practices Integratedrequirementsmanagement SOA design andconstruction capabilities Open, role-basedteam environment Control risk and change Lifecycle change andasset management Built-in audit and statusinformation on projectsand assets Performance testing Service-level monitoring13

IBM Software GroupIBM Rational Software Delivery PlatformGOVERNANCE DASHBOARDSolutions for geographically distributed development, compliance, SOAProcess & portfolio management IBM Rational Portfolio Manager IBM Rational Method ComposerDesign & constructionRequirements & analysis IBM WebSphere Business Modeler & Monitor IBM Rational Requisite Pro IBM Rational Software Architect IBM Rational Data Architect IBM Websphere Studio AssetAnalyzer Best practices content (IBM Rational Unified Process IBM Tivoli Unified Process , Portfolio Management) IBM Rational Software ArchitectIBM Rational Data ArchitectIBM Rational Application DeveloperIBM WebSphere Developer for zIBM WebSphere IntegrationDeveloperSoftware quality IBM RationalPerformance Tester IBM Rational Functional Tester IBM Rational Manual Tester IBM Rational PurifyPlusChange & configuration management IBM Rational ClearCase IBM Rational ClearQuest IBM Rational Team Unifying Platform IBM Tivoli Provisioning Manager IBM Tivoli Configuration Manager IBM Tivoli Intelligent OrchestratorPartner ecosystem & open computingEclipseTM, Linux , Microsoft Windows , UNIX , IBM z/OS IBM CIO14

IBM Software GroupEnterprise Architecture FrameworkEA provides a business framework for adding new processes, applications, data &infrastructure . and a system for managing the lifecycle – current & future investments Business ProcessesBus. ProcessFrameworkRules Business Strategy Enterprise InformationComponentSchedulingShippingYarn BuyingCashManagementBusiness Strategy rder EntrySaturnGroupYankeeGroupTagging lantEnterprise Information Applications/ComponentBlueprintCBMEA ApplicationPortfolio AnalysisCost Data Technology & InfrastructureInvestment CycleInitiative Architecture (IAD)Development CycleSolution Architecture(APD and ADD)ODOEImplementation CriteriaGuiding Principles & MetricsStandardsCross Unit and Unit Architecture GovernanceOn Demand Development Environment & Tools15