The document discusses service-oriented architecture (SOA) from corporate and operational perspectives. It defines business services as comprising corporate business services, which are provided to external entities, and operational services, which support internal processes. SOA enables a business service delivery paradigm where operational services orchestrate business processes that drive the delivery of corporate business services through servicing channels. This allows the corporate to focus on its core business interests while ensuring business continuity and agility.

1. Yiwei Chen
Updated on 2008
yiwei_chen@yahoo.com
DEFINING BUSINESS SERVICES
SOA from Corporate & Operation Perspectives
* Keynotes for SOA Conferences and Symposiums in Beijing, Kuala Lumpur, and Dubai during 2007 and 2008

2. 2
HIGHLIGHTS
 IT & Business Gap
 Defining Corporate Business Services
 Defining Business Service Delivery Paradigm
 Servicing Channels
 Operational Services
 Role-based Organization
 SOA is the Enabler
 Merging IT & Business Gap

3. 3
WIRELESS’ SERVICE DISRUPTION
 A leading 3G wireless provider in US in 2003
“A major CRM system had crashed during an upgrade,
and customer service representatives could not set up
or access new accounts. The system breakdowns,
which continued through February 2004, swamped
other … systems, gridlocked customer service phone
banks and sent furious customers scurrying to other
providers.”
– CIO Magazine
 Acquired by another company soon
afterwards

4. 4
WHAT IS SOA?
New IT framework?
New technology?
Integration?
Software as a service?
Web services?
Better Governance?

5. 5
VIEWING FROM A CORPORATE PERSPECTIVE
New IT framework?
New technology?
Integration?
Software as a service?
Web services?
Better Governance?
Can SOA enable the corporate to focus on
business, nothing but business?

6. 6
IT CHALLENGES IN BUSINESS’S EYE
Corporate
Business
Operation
IT
Organization
IT
Project
 Lack of understanding to evolving
business
 Business’s blindness into IT
systems
 SOA perceptions
 Arbitrariness in defining services
 Extremely complex
 Simply solving the same old business
problems as the old technologies had done

7. 7
IT CHALLENGES IN BUSINESS’ EYES
 Lack of understanding to
evolving business
 Business’s blindness into IT
systems
 SOA perceptions
 Arbitrariness in
defining services
 Extremely complex
 Simply solving the same old
business problems as the old
technologies had done
Corporate
Show me the
real value!
Corporate
Business
Operation
IT
Organization
IT
Project

8. 8
FOCUS ON CORPORATE INTERESTS
 Maximize the asset value
 Minimize the risks
 Manage all key liabilities
 Customers
 Employees
 Users
 Suppliers
 Investors
 Regulators
 …
Customers
Corporate
InvestorsEmployees
SuppliersUsers
Regulators

9. 9
BUSINESS SERVICES & PROCESSES
Corporate
Customers
InvestorsEmployees
SuppliersUsers
Regulators
Deposit
Product
SOA makes it technically feasible
for a corporate to focus on business

10. 10
BUSINESS SERVICES & PROCESSES
SOA makes it technically feasible for a
corporate to focus on business
Corporate Business
Services
Customers
InvestorsEmployees
SuppliersUsers
Regulators
Deposit
Product
 Corporate business services
can be triggered by
 Service recipients, or
 Internal operations

11. 11
BUSINESS SERVICES & PROCESSES
 Corporate business services
can be triggered by
 Service recipients, or
 Internal operations
 Business processes drive the
corporate business services
 A workflow to go through for
delivering the corporate
business service
 Can be managed, automated,
and optimized
Business
Processes
Corporate Business
Services
Customers
InvestorsEmployees
SuppliersUsers
Regulators
Deposit
Product

12. 12
BUSINESS SERVICES DELIVERY PARADIGM
 Operational services
orchestrate…
 Business processes that
drive…
 Corporate business
services to be
delivered to…
 Service recipients
through…
 Servicing channels
Operational services are all other
services outside of
corporate business services

13. 13
OPERATIONAL SERVICES
Servicing
Channel
Servicing
Channel
Corporate
Business
Service
Corporate
Business
Service
Operational
Service
Operational
Service
Operational
Service
Operational
Service
Business
process
Operation
Process
Operation
Process
Corporate
Business
Service
Servicing
Channel
 A business process
activates operational
services
 An operational service
can initiate a new
operational business
process
 An operational business
process may also trigger
a corporate business
service
 Timed billing
 Procurement

14. 14
CORPORATE BUSINESS SERVICES VS.
OPERATIONAL SERVICES
Service Type Service
Recipient
Performer Legal Liability Servicing
Channels
Financial
Transaction
Corporate Business
Service
External entity Corporate Corporate Attended &
unattended
Usually happens
Operational Service Internal business
process
Individual
Principal
None None None
Servicing Channel
Service
Servicing channel Individual
Principal
None None None
* Servicing channel service is a special type of operational service
Unambiguously defining services

15. 15
DEMAND FOR A ROLE-BASED ORGANIZATION
 Qualified principals for performing
operational service
 Employees
 Temporary workers
 Outsourced staff
 External service providers
 Enterprise applications
 Robots
 A true role-based organization
 Collection of operational service
performer roles
 Well managed principal to role
assignments
 Ensure the business continuity

16. 16
ORGANIZATION PARADIGM SHIFT
- Courtesy of New Yorker
"Dammit, our board has three robots on it, and now
one guy is voting with them against the other four
humans at the table, resulting in a tie. That makes me
scowl."
Human and enterprise
applications are
working in together
for the same business
process to deliver a
corporate business
service.

17. 17
BUSINESS CONTINUITY PLANNING
Retaining
BusinessProcess
On-boarding
BusinessProcess
Career
Development
Operational
Process
Performance
Operational
Process
Recruiting
Corp.Bus.service
Benefit
Corp.Bus.Service
Compensation
Corp.Bus.Service
CareerPlanning
Operational
Service
Training
Operational
Service
CEO
COO
HR Director
BenefitAdmin.
Recruiter
Compensation
Admin.
CareerAdvisor
On-boardingMgr.
RetainingMgr.
CareerMgr.
PerformanceMgr.
Training
Coordinator
Service
Outsourcing
Staff
Outsourcing
Service
Outsourcing
Staff
Outsourcing
Service
Outsourcing
3rd Standby
Staff
Outsourcing
Employee
Service
Outsourcing
Staff
Outsourcing
Staff
Outsourcing
2nd Standby
Employee
Employee
Employee
Employee
Service
Outsourcing
1st Standby
Employee
Enterprise
Application
Enterprise
Application
Employee
Employee
Active
Benefit
Administrator
Recruiter
Role
Compensation
Administrator
Career
Advisor
Training
Coordinator
Role

18. 18
SERVICING CHANNELS
 Conduit for
enterprise to offer
corporate business
services to recipients
 Performers of the
servicing channel
services are
performing corporate
business services on
corporate behalf

19. 19
INTERACTION MODEL
Consists of
Corporate
Business
Service
Recipient
Provides Services to
Role-based
Organization
Business
Process
Corporate
Business
Service
Servicing
Channel
Servicing
Channel
Service
Servicing
Channel
Service
Performer
Service
Performer
Operational
Service
Is a Kind of
DrivesOrchestrates
Is Provided to
Recipients
Through
Performs
Operates
Performs
Is a Kind of

20. 20
SUPPLY-CHAIN EXAMPLE
Consists of
Corporate
Business
Service
Recipient
Provides Services to
Role-based
Organization
Business
Process
Corporate
Business
Service
Servicing
Channel
Servicing
Channel
Service
Servicing
Channel
Service
Performer
Service
Performer
Operational
Service
Is a Kind of
DrivesOrchestrates
Is Provided to
Recipients
Through
Performs
Operates
Performs
Is a Kind of
Organizational Roles
• Procurement Manager
• Logistics Manager
• Cataloguer
• Buyer
• Material Controller
• Dispatcher
Operational Services
• Production Planning
• Transportation Planning
• Logistics Management
• Demand Planning
• Warehousing
• Manufacturing
Business Processes
• Plan-to-Produce
• Trigger-to-Replenishment
• Order-to-Cash
• Demand-to-Fulfill
• Build-to-Order
Corporate Business Services
• Sourcing
• Procurement
• Order Fulfillment
• Invoicing & Settlement
• Customized Product Configuration
Servicing Channels
• Attended Human Direct
• Attended Human Indirect
• Unattended Portal
• Unattended B2B
Service Recipients
• Public
• Customers
• Suppliers
• Employees
• Auditors

21. 21
SOA IS THE ENABLING PARADIGM
 SOA encapsulates the corporate business services while
automating the invocation of business processes
 SOA makes the business process manageable through
agile workflow
 SOA makes role-based organization operationally feasible
 SOA makes all services transparent for monitoring and
governance
 SOA makes business scalable, highly available, and agile

22. 22
MERGING IT-BUSINESS GAP
 Corporate fully owns the corporate business services
 Business operation drives the business processes and
operational services
 IT is part of the business operation
 IT builds and supports the SOA infrastructure for enterprise
applications and software tools that empowers
 Business service management
 Business process management
 SAAS-nized enterprise applications
 Build the new IT-business relationship

23. 23
Business Services Management
For
Managing Corporate Business Services
Business Process Management
For
Managing Corporate Business
Services
Business Services Management
For
Managing Operational Services
Business Process Management
For
Managing Operational Services
Business
Analyst
Business/Oper.
Manager
Business/Oper.
Specialist
Business
Execution
Business
Governance
Business
Strategy
Operation
Governance
Operation
Strategy
Operation
Strategy
Business
Monito-
ring
Operation
Execution
Operation
Gover-
nance
Operation
Strategy
Business/Oper.
Strategist
MERGING IT-BUSINESS GAP
Business Services Management
For
Managing IT Operational Services
IT Support
Specialist
IT System
Analyst
IT ArchitectIT Developer IT Manager
IT
Support
IT
Support
IT
Performance
Monitoring
IT
Support
IT
Execution
IT
Performance
Monitoring
IT
Support
IT
Exection
IT
Performance
Monitoring
IT
Governance
IT
Strategy
IT
Support
IT
Execution
IT
Performance
Monitoring
IT
Governance
IT
Technology
Monitoring
IT
Execution
IT
Governance
IT
Strategy
Ownership
IT
Organization
Business
Operation
Corporate
Business
Operation
Business
Operation

24. 24
CONCLUSION
 SOA streamlines business services in broader sense
 Business services are composed of corporate business services and
operational services
 SOA is the enabling technology for the novel business service
delivery paradigm
 The novel service delivery paradigm enables IT to well align behind
business
 The business-IT gap can be eventually merged
 Corporate benefits from being able to be business focusing,
guaranteed business continuity, and gaining true business agility

25. yiwei_chen@yahoo.com