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This Presentation Courtesy of the
                                   International SOA Symposium
                                   October 7-8, 2008 Amsterdam Arena
                                   www.soasymposium.com
                                   info@soasymposium.com


                                                      Founding Sponsors




Platinum Sponsors




Gold Sponsors                Silver Sponsors



                                                                          1




        Understanding
        SOA & Web 2.0
      Shaping Innovation with Web 2.0 and Smart SOA
        Sandy Carter, Vice President, IBM SOA and WebSphere
        scarter@us.ibm.com




                                                                              1
Today’s Overarching Realities
The New Competitive Landscape


                                  Market is changing.
                              Continuous analysis of data
                                  for insight required
                           Foresight, not hindsight, is of value
                                Value is based on unique,
                                personalized experiences of
                                         customers
                               Personalized customer
                             experiences can be achieved
                            with flexible (or agile) business
                                       processes




                                                             3




To Compete, Companies Must…


                                fundamentally alter their value
                                creation infrastructures…

                                     …transforming interactions
                                with customers into meaningful
                                dialogues




                                                             4




                                                                   2
SOA & The Co-Creation of Value



                                                                                                                                                                                               SOA revolutionizes not just
                                                                                                                                                                                               the way applications work
                                                                                                                                                                                               with each other…

                                                                                                                                                                                                   ….but the way people
                                                                                                                                                                                               interact with processes




                                                                                                                                                                                                                                                                                                                                               5




What is SOA


                                                                                                                                                                                                                                                                           Depository
                                                      Vendor Setup                                                                                                                                                                                                          Banks

                                                                   Vendor      Process Servers                                                                                                                                                                                                            Customer Perceived
                                                      Budget      Maintenance    (Imaging)                                                               NEW Soundscan                                    VAN                                                       Universal Account                          In-Stock
                                                    Analysis Tool    Printer                                                    Mesa Data                                       Shows                                                                                  Reconcilliation
                                                                                         S20-Sales
                                                                   Maintenance             Polling                                                                                                                                  Auto                                                                                 Hand Scan
                                                                                                                                                                                         Customer                                 Replenishment                                                                             Apps
                                                            Insertions   Printer PO                                                                                                        Order
            Reports                                                                                                                                     Sales
                                    Calendar                 Orders                                                                                     Corrections
             Due Dates                                                   Print Costing                                                                                                                                                                                                                           Warehouse
                                          General Invoice App                                                                                                                                                                                                                                                    Management
           Stores & Mrkts      Broadcast Maintenance
                                 Filter                                                                  Interface                                                                                                                                         PO
            Smart Plus
            Smart Plus                Millennuim 3.0
            Launcher                                                                                                                                                                  Sales Posting
                                                                           Cell
            Tally Sheet                                                    Phones                                                                                                                                    Return to
                                          Mill.                                                     Post Load                                                                                                          Vendor                                        Credit App
                                                                                                      Billing
                                                                               Equifax
           Stock Options
                                       Employee                                                                                               Solution
            Resource                    Change Notice                                                                                            Software                                                                                            Satellite
                                                                               A04 - Cust                                                                                                                                                            System                      -Promo
             Scheduling                                                       Refund Chks                                                                                                             DFK
                                                                                                                                                                                                                                     1

                                                                                                                                                                                                                                                                                  Analysis
                                       On-line New
                                         Hire Entry
                                                                                                          AAS                                                                                                                                                                    Price
            Resumix                                                            P01-                                                                                                                                                                                              Marketing
                                                                             Employee                                                                                                                                                                                            Support
                                                                             Masterfile                                                                                                                                                                                                                          Bus Systems
              Cobra                            P09 - P17
                                                Cyb.                                  ABC                                                                                                                                                      - ISP
                           CTS                                                         Co                                   website                                                                          Cycle Physical                    Tracking
                                                                                                                                                                         Home                                   Inventory
              ACH                                                                                                                                                        Deliveries
                                                                                   V04-Sign
                          Prodigy                                                  System                                       CTO
              Banks - ACH and Pos to                          POS                                                                                                                                                                                                                -
                      Pay                                                                                                                                                                                                                                                      Transfers
                                                                                                                                                                                                                                                                                                            Host to AS400
            Plan Administrators                                                                                                                                                                                                                                                                             Communication
             (401K, PCS, Life)                                                 Spec Source                                      Stock
                                                                               SKU Tracking                                       Status                                                                                                   Price
                                                                                                                                                                   Counts                                                                  Testing                            Supplier
                                      Intercept             Sales                                                                                                                                                                                                            Compliance
              Employee                                      Tax            Scanning                                                                                                                       Layaways
               Purchase
                                                                                 Spec
                                                                                Source                                                                                                                                                                                PO
                 Scorecard                                                                                                                                                                                                                                           Receiving                                    SKU
                                      Mkt                                                                                                                                                                                                                                                                      Performance
                                      Reactions
                                                           Polling          Price Management                                                                                                                                                  Coop                                                             SKU Selection
           Bonus/HR                                                                                                              Inventory Info
                                                                                  System                                                                                                                                                                                                                          Tool

                                     DRK
                 ABBX                                                                                                                                                                              Customer Repair                                                        I35 Early Warning                      Planning
                                                                                                                                                                                                     Tracking                                                                  System
                                     Rebate                                    SKU Rep
                                    Transfer
                                                                                                                                                                      SKU                                                                    Purchase
             Store                                                                                                                                                  Information                                                                Order                                                            Ad Expense
            Monitor
                             PowerSuite                                     General
                                                                             Ledger                                                                                                                                                                                                                             Store
                                                                                                                                                                                                                                                                                                               Scorecard
            Tex A                       Sign
                                       System
                                                                                                                                                                                          N.               Count Corrections                                                                                      Store Budget
                                                                                                                                                                                                                                                                                                                   Reporting
                                                                                                                                                                                                                                                                       Media
            Tx                                                                                                              Merchandise
                                 Writer                                                                                       Analysis                                                                                                                                                                            BMP - Bus
                                 Workspace                                                                                                                                                                                                                                                                      performance Mngt
                                                                                                                                                                                              EDI
                                                                                                                                                                                            Coordinator
          Mngr Approval
           Batch Forcasting                  AIMS                                                                                                                                                                                                                             Journal Entry Tool Kit
           Ad Measurement                                                                     AP

                                                                                                                                                                                                                                                             INVENTORY CONTROL APPS - PC   INVENTORY CONTROL APPS - PC   ACCTS REC APPS - PC
                                                                                                                                                                                               Cellular
                                            AIMS                                                                                                                                               Rollover                            OTHER APPS - PC
                     Ad                    Reporting                                                                                                          House
                   Launcher                                                                                                                                    Charges
                                                                                                   Op.               Recon
                                       PSP                                                                               File
                                                                         Capital
                                                                          Projects                                                          Connect 3                       Credit
                                                                                                    SS
                                       In-Home
                 Data Warehouse         Repair                                                                                  Connect 3         Connect 3
                                                                                                                                PDF Transfe        Reports                                      Cash Receipts/Credit
                                                                         Fixed
                                      Warranty                            Assets                                                                                                                                       Misc Accounting/Finance Apps - PC/NT
                                       Billing             Repair
                                      System                                                                                                  Cash Over/
                                                                                                                                               Short




                                                                                                                                                                                                                                                                                                                                               6




                                                                                                                                                                                                                                                                                                                                                   3
Adoption of SOA is evolving across the continuum
                                                                                               6550
                                                                        Based on              Clients

                                  % of SOA Customers by Approach
                           61%



                                            29%             <8%
                                                                                <3%


                                            Extend                               Adapt
                   Foundational           End-to-End      Transform            Dynamically




                                      Large Enterprises


               Medium Businesses                                            Employee Size
                                                                               Greater than 4,999

            Small                                                              Between 1,000 and 4,999

                                                                               Less than 999
Source: IBM 2008 Survey                                                                                  7




    Smart SOA ™ Approach in Action


                                            Extend                                Adapt
                   Foundational           End-to-End      Transform             Dynamically




                                                                                 NY State Department
                                                                                   of Taxation and
                                                                                       Revenue

        •Single view of             •Financing options    •Deploy                 •Transform
        customer                    react immediately     business                Systems, Data,
        integrating                 to marketing          services across         People, Business
        applications                                      enterprise              Processes


        •KAI: problem                KPI: Improved        •KAI: 440 services      •KPI: Increased
        resolution time: 2           dealership           reused 1200             citizen satisfaction
        days to 1 hour               profitability        times for £16m
                                                          savings
                                                                                                         8




                                                                                                             4
Event-driven Experience Increases Agility
 What is a Business    An action that has occurred, or the absence of it
        Event?         occurring, which has relevance to the business


                Large companies can experience up to
                   800 Billion business events daily
   Nearly 4 Trillion
                                                      Over 190 Billion
   RFID events are
                                                     emails are sent daily
   emitted each day




                IBM WebSphere Software provides
               actionable insight on business events
                                                                             9




Event-driven Experience
Business Event Demo




                                                                             10




                                                                                  5
What is Web 2.0?
      A set of new Web-based technologies,
          Platform for dynamic content creation
      A new generation of web-based communities and hosted
       services which facilitate creativity, collaboration, and sharing
       between users.

"The point isn't the features, it's the underlying
   philosophy of relinquishing control."

              Change is accelerating….

              If MySpace were a country it would have the 11th
              largest population in the world

              One in eight couples married in the U.S. last year met
              online



                                                                          11




Web 2.0 builds upon SOA’s vision to…



   Support enterprises
   Foster Business/IT
    alignment
   Make companies more
    agile by offering a
    platform for services to
    be accessed, mashed &
    tailored




                                                                          12




                                                                               6
Extending the Reach of SOA: RidePlanner Mashup




                                                                   13




Enhance SOA entry points with Web 2.0
                       IBM Mashup Center

               Lotus Mashups                Infosphere
                (Assembly-centric)          MashupHub
                                           (Information-centric)
                               Sharing +
                               discovery
                                   of
          Assemble widgets                   Unlock information
                               mashable
             into dynamic                            and
                                widgets
               mashups                      transform and mix it
                                               into new feeds




                       WebSphere sMash
                  Deliver Web 2.0 based applications,
                           enabling mashups




                                                                   14




                                                                        7
Experience Networks



      At the intersection
      between people and
      processes, the powerful,
      and complimentary Web
      2.0 revolution is changing
      the way end-users co-
      create value on
      experience networks




                                                         15




Businesses expect to participate
Percentage of Companies Adopting Web 2.0 Tools in 2008




 Source: Enterprise and SMB Software Survey, Q3 2007
                                                         16




                                                              8
Solution Patterns for Co-Creation of Value


             Meaningful                             Engage with end users and customers through
             Dialogues                              social computing

             Syndication                            Provide syndicated access to applications,
                                                    information and services

             Community Nurture Seed community interaction in an Experience
                               Network
             Enterprise                             Rapidly create, share and evaluate
             Mashups                                applications to access and manipulate content
                                                    and services
             Rich Interfaces                        Improve real-world metaphors and
                                                    visualisation of complex data through rich
                                                    media user interfaces

                                                                                                    17




   Technology evolution enables the new world
      Web 1.0: Access information, purchase online
      Web 2.0: Share and Collaborate
      Web 3.0: Experience, Participate and Co-Create

                                            Message                                   Message
                                Marketing                                  Marketing
                                   Goals                                      Goals


                                                                                       Adaptive
                                 Audience                                     Robust
                               Parameters                                   Audience
                                                                              Profile

                                           Audience                                  Audience
Source: The New Language of Marketing 2.0: How to Use ANGELS to Energize Your Market, 2008

                                                                                                    18




                                                                                                         9
The Wheel of Influencers Has Broadened
     Businesses can benefit from the co-creation of value



                                                    EMPLOYEES                  CUSTOMERS




                                                                                                LOCAL
                               INVESTORS                                                      COMMUNITY



                                                                COMPANY
                               ACADEMIC
                              COMMUNITY                                                        PARTNERS




                                                GOVERNMENT                            MEDIA




Source: The New Language of Marketing 2.0: How to Use ANGELS to Energize Your Market, 2008
                                                                                                          19




       Collaboration
       Co-creation
       Experience &
        Personalization




                                                                                                          20




                                                                                                               10
Collaboration



                 Engage with end users and customers
                  through social computing

                 Facilitate introductions, transactions
                  and teamwork between parties with
                  common interests

                 Knowledge environments that facilitate
                  discovery and action




                                                           21




Collaboration
Online Chat




                                                           22




                                                                11
Collaboration

   Co-creation
   Experience &
    Personalization




                                           23




Co-Creation




 Enlist customers in the shaping of new
  technologies, co-shaping the future

 Accelerate development of advanced
  technologies & solutions




                                           24




                                                12
Co-Creation
Project Zero



 We had an IDEA for a commercial product

 Setup an incubator site/wiki
…solicited the community for input

 WebSphere sMash and IBM WebSphere
sMash Developer Edition were BORN




                                            25




  Collaboration

  Co-creation
  Experience &
   Personalization




                                            26




                                                 13
Experience & Personalization



 Tailored sites cross-sell & up-
  sell

 Deliver customized view fulfilling
  their process needs, giving them
  greater insight

 Use new media to engage and
 immerse users




                                       27




Experience
Medical Information HUB | Sears




                                       28




                                            14
Co-Creation, Collaboration, Personalization
SOA Social Network Demo




                                              29




Testing Your Market & Making ROI Real




Constant Experimentation
PLUS Knowledge Access
PLUS Risk Assessment
EQUALS New Biz Models




                                              30




                                                   15

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Sandy Carter Understanding S O A And Web 2

  • 1. This Presentation Courtesy of the International SOA Symposium October 7-8, 2008 Amsterdam Arena www.soasymposium.com info@soasymposium.com Founding Sponsors Platinum Sponsors Gold Sponsors Silver Sponsors 1 Understanding SOA & Web 2.0 Shaping Innovation with Web 2.0 and Smart SOA Sandy Carter, Vice President, IBM SOA and WebSphere scarter@us.ibm.com 1
  • 2. Today’s Overarching Realities The New Competitive Landscape Market is changing. Continuous analysis of data for insight required Foresight, not hindsight, is of value Value is based on unique, personalized experiences of customers Personalized customer experiences can be achieved with flexible (or agile) business processes 3 To Compete, Companies Must… fundamentally alter their value creation infrastructures… …transforming interactions with customers into meaningful dialogues 4 2
  • 3. SOA & The Co-Creation of Value SOA revolutionizes not just the way applications work with each other… ….but the way people interact with processes 5 What is SOA Depository Vendor Setup Banks Vendor Process Servers Customer Perceived Budget Maintenance (Imaging) NEW Soundscan VAN Universal Account In-Stock Analysis Tool Printer Mesa Data Shows Reconcilliation S20-Sales Maintenance Polling Auto Hand Scan Customer Replenishment Apps Insertions Printer PO Order Reports Sales Calendar Orders Corrections Due Dates Print Costing Warehouse General Invoice App Management Stores & Mrkts Broadcast Maintenance Filter Interface PO Smart Plus Smart Plus Millennuim 3.0 Launcher Sales Posting Cell Tally Sheet Phones Return to Mill. Post Load Vendor Credit App Billing Equifax Stock Options Employee Solution Resource Change Notice Software Satellite A04 - Cust System -Promo Scheduling Refund Chks DFK 1 Analysis On-line New Hire Entry AAS Price Resumix P01- Marketing Employee Support Masterfile Bus Systems Cobra P09 - P17 Cyb. ABC - ISP CTS Co website Cycle Physical Tracking Home Inventory ACH Deliveries V04-Sign Prodigy System CTO Banks - ACH and Pos to POS - Pay Transfers Host to AS400 Plan Administrators Communication (401K, PCS, Life) Spec Source Stock SKU Tracking Status Price Counts Testing Supplier Intercept Sales Compliance Employee Tax Scanning Layaways Purchase Spec Source PO Scorecard Receiving SKU Mkt Performance Reactions Polling Price Management Coop SKU Selection Bonus/HR Inventory Info System Tool DRK ABBX Customer Repair I35 Early Warning Planning Tracking System Rebate SKU Rep Transfer SKU Purchase Store Information Order Ad Expense Monitor PowerSuite General Ledger Store Scorecard Tex A Sign System N. Count Corrections Store Budget Reporting Media Tx Merchandise Writer Analysis BMP - Bus Workspace performance Mngt EDI Coordinator Mngr Approval Batch Forcasting AIMS Journal Entry Tool Kit Ad Measurement AP INVENTORY CONTROL APPS - PC INVENTORY CONTROL APPS - PC ACCTS REC APPS - PC Cellular AIMS Rollover OTHER APPS - PC Ad Reporting House Launcher Charges Op. Recon PSP File Capital Projects Connect 3 Credit SS In-Home Data Warehouse Repair Connect 3 Connect 3 PDF Transfe Reports Cash Receipts/Credit Fixed Warranty Assets Misc Accounting/Finance Apps - PC/NT Billing Repair System Cash Over/ Short 6 3
  • 4. Adoption of SOA is evolving across the continuum 6550 Based on Clients % of SOA Customers by Approach 61% 29% <8% <3% Extend Adapt Foundational End-to-End Transform Dynamically Large Enterprises Medium Businesses Employee Size Greater than 4,999 Small Between 1,000 and 4,999 Less than 999 Source: IBM 2008 Survey 7 Smart SOA ™ Approach in Action Extend Adapt Foundational End-to-End Transform Dynamically NY State Department of Taxation and Revenue •Single view of •Financing options •Deploy •Transform customer react immediately business Systems, Data, integrating to marketing services across People, Business applications enterprise Processes •KAI: problem KPI: Improved •KAI: 440 services •KPI: Increased resolution time: 2 dealership reused 1200 citizen satisfaction days to 1 hour profitability times for £16m savings 8 4
  • 5. Event-driven Experience Increases Agility What is a Business An action that has occurred, or the absence of it Event? occurring, which has relevance to the business Large companies can experience up to 800 Billion business events daily Nearly 4 Trillion Over 190 Billion RFID events are emails are sent daily emitted each day IBM WebSphere Software provides actionable insight on business events 9 Event-driven Experience Business Event Demo 10 5
  • 6. What is Web 2.0?  A set of new Web-based technologies,  Platform for dynamic content creation  A new generation of web-based communities and hosted services which facilitate creativity, collaboration, and sharing between users. "The point isn't the features, it's the underlying philosophy of relinquishing control." Change is accelerating…. If MySpace were a country it would have the 11th largest population in the world One in eight couples married in the U.S. last year met online 11 Web 2.0 builds upon SOA’s vision to…  Support enterprises  Foster Business/IT alignment  Make companies more agile by offering a platform for services to be accessed, mashed & tailored 12 6
  • 7. Extending the Reach of SOA: RidePlanner Mashup 13 Enhance SOA entry points with Web 2.0 IBM Mashup Center Lotus Mashups Infosphere (Assembly-centric) MashupHub (Information-centric) Sharing + discovery of Assemble widgets Unlock information mashable into dynamic and widgets mashups transform and mix it into new feeds WebSphere sMash Deliver Web 2.0 based applications, enabling mashups 14 7
  • 8. Experience Networks At the intersection between people and processes, the powerful, and complimentary Web 2.0 revolution is changing the way end-users co- create value on experience networks 15 Businesses expect to participate Percentage of Companies Adopting Web 2.0 Tools in 2008 Source: Enterprise and SMB Software Survey, Q3 2007 16 8
  • 9. Solution Patterns for Co-Creation of Value Meaningful Engage with end users and customers through Dialogues social computing Syndication Provide syndicated access to applications, information and services Community Nurture Seed community interaction in an Experience Network Enterprise Rapidly create, share and evaluate Mashups applications to access and manipulate content and services Rich Interfaces Improve real-world metaphors and visualisation of complex data through rich media user interfaces 17 Technology evolution enables the new world Web 1.0: Access information, purchase online Web 2.0: Share and Collaborate Web 3.0: Experience, Participate and Co-Create Message Message Marketing Marketing Goals Goals Adaptive Audience Robust Parameters Audience Profile Audience Audience Source: The New Language of Marketing 2.0: How to Use ANGELS to Energize Your Market, 2008 18 9
  • 10. The Wheel of Influencers Has Broadened Businesses can benefit from the co-creation of value EMPLOYEES CUSTOMERS LOCAL INVESTORS COMMUNITY COMPANY ACADEMIC COMMUNITY PARTNERS GOVERNMENT MEDIA Source: The New Language of Marketing 2.0: How to Use ANGELS to Energize Your Market, 2008 19 Collaboration Co-creation Experience & Personalization 20 10
  • 11. Collaboration  Engage with end users and customers through social computing  Facilitate introductions, transactions and teamwork between parties with common interests  Knowledge environments that facilitate discovery and action 21 Collaboration Online Chat 22 11
  • 12. Collaboration Co-creation Experience & Personalization 23 Co-Creation  Enlist customers in the shaping of new technologies, co-shaping the future  Accelerate development of advanced technologies & solutions 24 12
  • 13. Co-Creation Project Zero  We had an IDEA for a commercial product  Setup an incubator site/wiki …solicited the community for input  WebSphere sMash and IBM WebSphere sMash Developer Edition were BORN 25 Collaboration Co-creation Experience & Personalization 26 13
  • 14. Experience & Personalization  Tailored sites cross-sell & up- sell  Deliver customized view fulfilling their process needs, giving them greater insight  Use new media to engage and immerse users 27 Experience Medical Information HUB | Sears 28 14
  • 15. Co-Creation, Collaboration, Personalization SOA Social Network Demo 29 Testing Your Market & Making ROI Real Constant Experimentation PLUS Knowledge Access PLUS Risk Assessment EQUALS New Biz Models 30 15