1. finance
2. bank

November 17, 2008
Great Expectations
Can SOA Deliver?
Bart Narter
Orlando, Florida
A member of the Oliver Wyman Group
CONFIDENTIAL | www.oliverwyman.com
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Great Expectations: Can SOA Deliver?
Agenda
 What is SOA?
 Technical details
 What does it do for me?
 How do I deploy it?
© 2008 Oliver Wyman  www.oliverwyman.com
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What is SOA?
 Loosely coupled modular services to support both
business and IT requirements.
So what does that mean?
© 2008 Oliver Wyman  www.oliverwyman.com
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Loosely coupled
 Services are independent. They don’t know or care whether the service is:
– Running on Windows, J2EE or a Mainframe
– Written in assembler, C, Java, or COBOL.
– Running on a machine in the U.S., India, or China
– Being served by a CRM system, a DDA system, or a database
 So what does that do for me?
– Enables a myriad of different (legacy) systems to supply information in a consistent
way using SOA.
© 2008 Oliver Wyman  www.oliverwyman.com
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Modular
 Services are no longer monolithic applications, but broken into compound and
granular services.
 Example: Initiating a transfer is a compound service, that might comprise the
following granular services:
– Find customer
– Authenticate customer
– Find all accounts and balances (for display)
– Find account (the funding account)
– Get account balance (to verify availability of funds)
– Find account (the receiving account)
– Debit account (the funding account)
– Credit account (the receiving account)
– Find all accounts and balances (for re-display)
© 2008 Oliver Wyman  www.oliverwyman.com
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So what does modular do for me?
 Note that in the previous example we reused a number of services within the
compound service.
 Other compound services will reuse these services as well, driving consistency (=
lower risk), lower cost, and flexibility.
© 2008 Oliver Wyman  www.oliverwyman.com
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SOA is an IT architecture consisting of loosely coupled modular services to
support both business and IT requirements.
 Loosely coupled: runs on a myriad of applications, systems, platforms and locations
to tie together new and legacy systems
 Modular: broken into compound and granular services to enable reuse
 Business and IT: across the entire organization.
© 2008 Oliver Wyman  www.oliverwyman.com
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SOA from a technical viewpoint
 Today SOA is used to broadly define a set of products and services that range from data
conversion services, to portal tools, which is why it is very difficult to answer the question, “Do you
use SOA?” A map of SOA components on the next slide should clarify.
© 2008 Oliver Wyman  www.oliverwyman.com
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Great Expectations: Can SOA Deliver?
Agenda
 What is SOA?
 Technical details
 What does it do for me?
 How do I deploy it?
© 2008 Oliver Wyman  www.oliverwyman.com
Document number
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A Map of SOA Components
Registry and Repository
Manage and monitor
Security
Web Portals
Human Business Process Management (BPM)
Enterprise Service Bus (ESB)
Data Services
Process Services
Business Logic
Orchestration
System BPM
Databases
© 2008 Oliver Wyman  www.oliverwyman.com
Systems of Record
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Design SOA
Registry and Repository
Manage and monitor
Security
Portal Design tool
BPM Modeling and Simulation Tool for
business analyst
Connection, routing tool for architect
Data Mapping
and Conversion
Tool
Databases
© 2008 Oliver Wyman  www.oliverwyman.com
Process Services
Business Logic
written in Java,
C, C++, etc.
Low level Service
Orchestration Tool
for developer
Systems of Record
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Banking Examples of SOA
Registry and Repository: Find
Stop Payment Service, Charge
Fee service
Manage and monitor
Security: Authenticate user
Internet Banking
Business Process: Stop Payment
ESB: Routes to appropriate core system
Data Services
Business Logic: If
Customer_Status = Gold
Service_Fee = $8 else
Service_Fee = $20
Fee database
© 2008 Oliver Wyman  www.oliverwyman.com
Process Services
Orchestration:
DDA / Current Account
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Web Portals
A Map of SOA Components

Web Portals provide a single user interface to multiple back end systems via a service oriented architecture and
HTML.

Portals can hold multiple service requests and display them in portlets.
– An example would be with internet banking displaying a customers
- banking products
- Investments
- credit card balance (from another LOB or monoline)
- mortgage information (from another LOB or monoline)
© 2008 Oliver Wyman  www.oliverwyman.com
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Portal Example
Portlet to credit card company
© 2008 Oliver Wyman  www.oliverwyman.com
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Business Process Management can be broken into three parts
 Design: Usually with graphical eclipse based tools
 Execute:
 Monitor: Make sure that SLAs are met.
© 2008 Oliver Wyman  www.oliverwyman.com
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Example of BPM: Open New Checking Account
Human Business Process Management (BPM)
Existing
No
Customer?
Scan KYC
Information
Run
ChexSystem
Result
OK?
Yes
 Features of Human BPM:
– It involves human interaction (such as scanning KYC information)
– It uses external processes such as Chex System.
– It can be used to standardize business processes and reduce operational risk.
© 2008 Oliver Wyman  www.oliverwyman.com
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Enterprise Service Bus (ESB) is the communication backbone of SOA.
Enterprise Service Bus (ESB)

It generally supports the following functionality:
– Message transmission, routing, queuing, and monitoring
– Synchronous, asynchronous, point-to-point, and publish/subscribe messages
– XML and SOAP messages
– Adapters to legacy systems

It also supports services which are called out in other modules:
– Data Services
– Process Services
© 2008 Oliver Wyman  www.oliverwyman.com
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Put all the pieces together to get a Services Oriented Architecture
Registry and Repository
Manage and monitor
Security
Web Portals
Human Business Process Management (BPM)
Enterprise Service Bus (ESB)
Data Services
Process Services
Business Logic
Orchestration
System BPM
Databases
© 2008 Oliver Wyman  www.oliverwyman.com
Systems of Record
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Great Expectations: Can SOA Deliver?
Agenda
 What is SOA?
 Technical details
 What does it do for me?
 How do I deploy it?
© 2008 Oliver Wyman  www.oliverwyman.com
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What does SOA do for me?
 Enables abstraction of core systems for isolation and potential replacement.
 Enables efficient messaging and business processes from the front end channels.
 Enables reuse of common business processes for greater efficiency.
© 2008 Oliver Wyman  www.oliverwyman.com
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Enables abstraction of core systems for isolation and potential replacement.
Registry and Repository
Manage and monitor
Security
Web Portals
Human Business Process Management (BPM)
Enterprise Service Bus (ESB)
Data Services
Process Services
Business Logic
Orchestration
System BPM
Databases
© 2008 Oliver Wyman  www.oliverwyman.com
Systems of Record
Isolate this system by accessing only
via data services and process services.
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Enables efficient messaging and business processes from the front end
channels.
Registry and Repository
Manage and monitor
Security
.
Web
Portal:
Internet
Banking
Web
Portal:
Teller
IVR
Web
Portal:
Call
Center
Web
Portals:
Sales
Platform
Enterprise Service Bus (ESB)
Data Services
Process Services
Business Logic
Orchestration
System BPM
© 2008 Oliver Wyman  www.oliverwyman.com
Databases
Systems of Record
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Enables reuse of common business processes for greater efficiency.
Registry and Repository
Manage and monitor
Security
Web Portals
.
Human Business Process Management (BPM)
Enterprise Service Bus (ESB)
Data Services
Process Services
Business Logic
Orchestration
System BPM
Databases
© 2008 Oliver Wyman  www.oliverwyman.com
Systems of Record
Document number
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Great Expectations: Can SOA Deliver?
Agenda
 What is SOA?
 Technical details
 What does it do for me?
 How do I deploy it?
© 2008 Oliver Wyman  www.oliverwyman.com
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How do I deploy it?
 Channel driven
 LOB driven
 IT driven
© 2008 Oliver Wyman  www.oliverwyman.com
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Channel driven SOA is the most common
 A single channel can create an SOA for itself and then share it later….or not.
 Wide adoption across the bank isn’t guaranteed.
© 2008 Oliver Wyman  www.oliverwyman.com
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LOB driven SOA
 An LOB might need functionality that isn’t available without integrating multiple systems or creating
a new system to assist in a business goal.
© 2008 Oliver Wyman  www.oliverwyman.com
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IT driven SOA
 This is a pure plumbing play and is difficult to drive across the bank.
 Who pays for these projects?
© 2008 Oliver Wyman  www.oliverwyman.com
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National City Business Drivers
 Single view of the customer
 Customer Management Objectives (CMO) drive customer experience
– Call center
– ATM
– Statement messaging
– Branch
© 2008 Oliver Wyman  www.oliverwyman.com
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From old architecture…
Channels
Integration Layer
General Ledger
© 2008 Oliver Wyman  www.oliverwyman.com
Stmts
Posting Ledgers
Bills
...
Posting Ledgers
Pricing
Analytics
Pricing
Posting Ledgers
Notcs
Pricing
Posting Ledgers
Stmts
Pricing
CIF
Later
Data
Warehouse
Campaigns
Later
© 2007 Celent LLC
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To new.
Channels
Service Enabled
Integration
Integration
Layer Layer
Analytics
Pricing
Pricing
Posting Ledgers
Posting Ledgers
Bills
...
Contain – Leverage
Data
Near
Real Time
General Ledger
Warehouse
Campaigns
© 2007 Celent LLC
© 2008 Oliver Wyman  www.oliverwyman.com
Data
IDH
Warehouse
Correspondence
Pricing
Posting Ledgers
Notcs
CIF
Stmts
Pricing
Posting Ledgers
Stms
Contain CIF
– Leverage
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Additional Questions?
Read the Celent Reports
 A Tale of One City: Core Renewal via SOA at National City Bank
- http://www.celent.com/PressReleases/200712122/CoreRenewalNatCity.asp
 A Christmas Carol: Wells Fargo Sings the Praises of SOA
- http://www.celent.com/PressReleases/20071221/WellsFargoSOA.asp
 Great Expectations: Can SOA Deliver? Part I: Core-Driven SOA (Non-US)
- http://www.celent.com/PressReleases/20080516/GreatSOAPartI.asp
 Great Expectations: Can SOA Deliver? Part II: Core-Driven SOA (US)
- http://www.celent.com/PressReleases/200805xx/GreatSOAPartII.asp
 Great Expectations: Can SOA Deliver? Part III: Front End SOA
 Great Expectations: Can SOA Deliver? Part IV: Platform SOA
 To ESB or not To ESB
Or Contact
 Bart Narter ([email protected]) San Francisco
© 2008 Oliver Wyman  www.oliverwyman.com
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