# Presentation: 214874

## EPA Enterprise SOA StrategyProgress Update

**September 25, 2006**

## OEI is developing the EPA’s Enterprise SOA Strategy to address the challenges and capitalize on the opportunities that SOA presents
Service Oriented Architecture (SOA) is a new way of planning and integrating complex IT systems, business processes, and even whole enterprises to get the most “bang for the buck”
SOA is causing a sea change in government as well as commercial  markets worldwide bigger than the one “Client-Server” caused

Key deliverables will include an EPA-approved SOA strategy document, related briefing materials, and an executive-level briefing
SOA Business Demand Assessment
SOA Sourcing Strategy
SOA Governance Strategy

- Service Oriented Architecture (SOA) is a new way of planning and integrating complex IT systems, business processes, and even whole enterprises to get the most “bang for the buck”
- SOA is causing a sea change in government as well as commercial  markets worldwide bigger than the one “Client-Server” caused
***Key deliverables*** will include an EPA-approved SOA strategy document, related briefing materials, and an executive-level briefing
- SOA Business Demand Assessment
- SOA Sourcing Strategy
- SOA Governance Strategy

**Recap:  Purpose of the EPA Enterprise SOA Strategy Task and Key Deliverables**

## Recap:  What Will the EPA’s Enterprise SOA Strategy Address?

**Recap:  What Will the EPA’s Enterprise SOA Strategy Address?**

-  EPA SOA Business Strategy and   Goals
-  How proposed strategy helps meet   EPA’s business goals
-  Define SOA in relation to the EPA’s  Enterprise Architecture
-  Define SOA in terms of the FEA   and SCBA whitepaper

**SOA BUSINESS****DEMAND ASSESSMENT**

-  SOA Development strategy and  major components to be developed
-  SOA Infrastructure Review
-  SLA Strategy
-  EPA SOA Transition Strategy
-  Funding Strategies
-  Outreach
-  SOA Best Practices

**SOA SOURCING****(SUPPLY) STRATEGIES**

**SOA GOVERNANCE****STRATEGY**

-  IT Governance Impacts
-  Central vs. Distributed ownership of   SOA technologies
-  SOA and the SDLC
-  Governance process for standards
-  Governance for web services   implementations across the EPA
-  Roles for existing EPA workgroups  and committees

**Notes:**
CSC embraces Forrester's definition of SOA as it applies to software infrastructure and applications.  However, CSC's definition of SOA is broader and encompasses business architecture as well as software architecture.  CSC's foundational concept of SOA is that of a pattern for structuring the complex work performed by business entities (organizations, systems, etc.) such that the work yields maximum value at minimum cost for customers and stakeholders.  SOA is more an economics pattern than a technology pattern - it involves customers and stakeholders with associated business needs on the demand side of the equation, components (sourcable organizations, systems, and finer grained components) on the supply side of the equation, and the concept of a service bridging demand and supply.  In economics, suppliers exchange either goods or services with consumers - goods are "things" whereas services are "units of work".  In the industrial age, the world learned how to create complex goods (e.g., machines) using an assembly of simpler interchangeable parts to achieve well-known economic gains.  CSC holds that with SOA, the world is learning how to perform complex work (e.g., business processes) using an assembly of simpler interchangeable units of work (services) to achieve similar economic gains.

SOA enables businesses to minimize costs and maximize customer and stakeholder value achieved through the services provided by its organizations, IT assets, and extended value chain.  SOA allows economies to penetrate more deeply into a business, yielding such benefits as reusability, flexible sourcing, agility, reduced risk, improved service quality, enhanced capabilities, and others.  SOA is used to structure flexible business and systems transformation according to business priorities, enabling businesses to execute transformation activities incrementally while preserving legacy assets.

## Schedule Update

**Wk 1**

_**SOA Strategy Development**_

**Award**

**1-1 Kick-off**

**1-2 Review Materials and Interview Participants**

**1-4 Finalize Strategy **

- Identify key stakeholders
- Meet with EPA management to discuss scope and objectives
- Define deliverables
- Detail the approach to task deliverables
- Hold Kickoff Meeting

- Interview Stakeholders
- Review EPA Materials

**Wk 2**

**Wk 3**

**Wk 4**

**Wk 5**

**Wk 6**

**Wk 7**

**Wk 8**

**Wk 9**

**Wk 10**

**1-4  Update briefing,**
**prepare Draft document**

- Resolve issues
- Update Strategy

**1-3 Rough Strategy and Initial Briefing**

- Develop Draft SOA Strategy
- Present Strategy, capture issues

- Produce Final  SOA Strategy Document
- Produce Executive-Level Brief

**Final Document**
**Executive Brief**

**Rough Strategy Report**
**Initial Briefing**

**Kickoff Meeting**

**2.3  Status Meetings  and Summaries**

**Wk 11**

**Post Briefing Report**

**Periodic Meeting Summaries**

** ****Updated Briefing**
** ****Draft Strategy Document**

**Schedule Update**

**We are Here**

## Executive Summary
SOA Strategy Framework
Key SOA Concepts
Value and Benefits of SOA
5 Stages of SOA Value
SOA Adoption Lifecycle
EPA SOA Demand Assessment
Customer and Stakeholder Needs
Business Services that Fulfill Needs
Enabling Services that support Business Services
EPA SOA Sourcing Strategy
SOA Reference Specification Strategy
SOA Transition Management Strategy
EPA SOA Governance and Management Strategy

- Executive Summary
- SOA Strategy Framework
- Key SOA Concepts
- Value and Benefits of SOA
- 5 Stages of SOA Value
- SOA Adoption Lifecycle
- EPA SOA Demand Assessment
- Customer and Stakeholder Needs
- Business Services that Fulfill Needs
- Enabling Services that support Business Services
- EPA SOA Sourcing Strategy
- SOA Reference Specification Strategy
- SOA Transition Management Strategy
- EPA SOA Governance and Management Strategy

**SOA Strategy Contents**

**FOCUS OF****DISCUSSIONS****TO DATE**

**FOCUS OF****FUTURE****DISCUSSIONS**

## How Can the EPA Use SOA to Achieve Strategic Value?

| Value Stage | Activity | Barrier | Tactic |
| --- | --- | --- | --- |
| 1. ALIGNED STAKEHOLDERSOrganizations become “service-oriented” - oriented toward providing value to customers and stakeholders | SPECIFICATIONProfile existing and needed services in conjunction with customers, suppliers, and other stakeholders | EDUCATIONEducating enterprise planners about SOA | OUTREACHControlled communication using simple and familiar yet powerful language |
| 2. LOWER COSTSSimpler services are sourced with cheaper, commodity components | SIMPLIFICATIONBreak (decompose) complex services into simpler ones | DECOMPOSITION METHODDecomposing services so that they are readily sourced with commodity components | REFERENCE SERVICES“Menu” of common services that can be readily sourced with commodity components |
| 3. ENHANCED CAPABILITIESNew services are available that that can do things not previously possible | STANDARDIZATIONMake wide array of services available in a standard way that can leverage advanced infrastructure | ADDITIONAL COSTSCosts of advanced infrastructure and of selecting and enforcing standards | “WIN-WIN” APPROACHIdentify specific unfulfilled business needs that drive each new capability |
| 4. INCREASED EFFICIENCYRedundant costs are reduced; services are provided by specialists | RATIONALIZATIONReduce redundant providers of the same service | CULTURAL RESISTANCEOvercoming barriers to service sharing across organizational boundaries | GOVERNANCEBuild trust, increase transparency, institute sharing mechanisms |
| 5. HIGHER QUALITY
MAXIMUM VALUE atMINIMUM COST | OPTIMIZATIONAutomate services, re-engineer service delivery processes | “IN FLIGHT” CHANGESManaging the risks inherent in changing operational systems and processes | CHANGE MANAGEMENTFacilitate improvements through management processes |

## Customer Concerns (What Must Be Done) Should be Separated From Provider Concerns (How It Gets Done) 

**Customers &****Stakeholders**

**DEMAND****SIDE**

**SUPPLY****SIDE**

**Components**

***Value***

**Services**

**Customers *****receive***** services**

**Components *****provide***** services **

**Services *****deliver***** value****to customers & stakeholders**

**Customer Concerns (What Must Be Done) Should be Separated From Provider Concerns (How It Gets Done) **

**Demand Profile**** (What Must Be Done)**
**Functionality**
**Customer**
**Outputs**
**Interface/ delivery channels**
**Metrics**
**Cost/ affordability**
**Service Level Agreements (SLA)**
**Risk tolerance**
**Governance**
**Change management**
**Sign-up / separation agreements**

**Supply Profile**** (How It Gets Done)**
**Sourcing**
**Make/ buy component parts**
**Reuse**
**Assembly of Component Parts**
**Orchestration among parts**
**Harmonization of data**
**Dependency chains (recursion)**
**Deployment**
**Sequencing plan**
**Legacy “wrapping”**
**Operations**

**5 STAGES OF SOA VALUE >> STAGE 1:  ALIGNED STAKEHOLDERS**

## Complex Services Should be Decomposed so that they can be Sourced with Cheaper, Commodity Components  

**Complex Services Should be Decomposed so that they can be Sourced with Cheaper, Commodity Components  **

**5 STAGES OF SOA VALUE >> STAGE 2:  LOWER COSTS**

## The Value of Services to Stakeholders Should be Clearly Traceable in Order to Substantiate SOA Investments  

- Customer X

- Strategy X

- Objective o1

- Strategy Y

**CUSTOMERS****AND STAKE-****HOLDERS**

**Vision / ****Strategies**

**Objectives **

**Service****Capabilities **

**Organizational****Components **

**DEMAND SIDE**

**SUPPLY SIDE**

- Objective o2

**Needs /****Imperatives**

**Service****Requirements **

- Objective o4

- Objective o5

- Objective o3

- Need n1

- Need n2

- Need n3

- Need n4

- Need n5

- Need n6

- Need n4

- Need n7

- Need n8

**IT System****Components**

- Req. r1

- Req r2

- Req r3

- Req r2

- Req r4

- Req r5

- Req r6

- Req r1

- Req r4

- Req r7

- Req r4

- Req r2

**Elementary****Components****(Manual or**
**Automated)**

- Org 1

- System S1

- Org 1

- System S1

- System S1

- System S2

- Automated A1

- Automated A2

- Automated A1

- Automated A2

- Automated A3

- Automated A1

- Automated A2

- Manual M1

- Automated A2

- Capability c1

- Capability c2

- Capability c3

- Capability c2

- Capability c4

- Capability c5

- Capability c6

- Capability c1

- Capability c4

- Capability c7

- Capabilty c4

- Capability c2

- Automated A1

- Org 2

**RESULTS**

**SERVICES**

**COMPONENTS**

**Aggregate Components **

- Stakeholder Y

**The Value of Services to Stakeholders Should be Clearly Traceable in Order to Substantiate SOA Investments  **

**5 STAGES OF SOA VALUE >> STAGE 3:  ENHANCED CAPABILITIES**

## Sharing Mechanisms Should be Instituted in Order to Overcome Organizational Barriers to Sharing  

- Minimal enterprise coordination
- Few standards or architectures
- No CIO, or CIO purely a staff role

**Most IT responsibilities and resources in divisions**** **
**Divisions coordinate efforts when efforts benefit individual organizations**
**Minimal standards; common architecture for coordinated efforts**
** ****CIO facilitates cooperation among divisions**

**Mix of resources between divisions and cross division centers of excellence**
**Enterprise coordination in areas determined to be strategic**
**Enterprise standards and architecture to facilitate cooperation and data sharing**
**CIO manages centers of excellence and coordinates strategic planning**

**Services provided to divisions for a fee and subject to Service Level Agreements**
**Core services managed by enterprise****	**** **
**Compliance to enterprise standards and architecture imposed by shared services****	**
**CIO runs shared services as a distinct “business” offering****	**

- All resources and priorities controlled centrally
- Enterprise sets priorities for divisions
- Standards and architecture enforced by central group
- CIO runs central group

**Laissez Faire**

**Federated**

**Center of Excellence**

**Shared Service**

**Autocratic**

**Decentralized**

**Centralized**

**Sharing Mechanisms Should be Instituted in Order to Overcome Organizational Barriers to Sharing  **

**5 STAGES OF SOA VALUE >> STAGE 4:  INCREASED EFFICIENCY**

**Notes:**
All transformations occur within the prevailing or changing Enterprise Governance environment

Most organizations have a Governance Model that occupies a position on a continuum from Decentralization to Centralization

Many organizations that undertake Transformation simultaneously shift their Governance Model (e.g., from Federated toward Shared Services)

Authority to define and implement Transformation must be aligned with the prevailing or emerging Governance Model. 

It is easy to prepare a Transformation plan, but execution will proceed quickly only when the actions are in accordance with Governance roles, responsibilities and related power.

## EPA-Wide SOA Planning
Identify SOA opportunities
Prioritize SOA opportunities based on value
Plan SOA sourcing activities based on priorities

Individual Service Lifecycle Management
Service Planning (Roadmaps)
Service Sourcing
Acquisition
Assembly
Quality Assurance
Deployment
Service Operation

- Identify SOA opportunities
- Prioritize SOA opportunities based on value
- Plan SOA sourcing activities based on priorities
- Individual Service Lifecycle Management
- Service Planning (Roadmaps)
- Service Sourcing
- Acquisition
- Assembly
- Quality Assurance
- Deployment
- Service Operation

**Governance and Management Processes Should be Tuned to Facilitate SOA Adoption**

**5 STAGES OF SOA VALUE >> STAGE 5:  HIGHER QUALITY**

## SOA Can Deliver Compelling Value to the EPA’s Leaders by Helping them to Address Key Challenges  

| SOA Strategies
 |
| --- |
| (1) ALIGNED STAKEHOLDERSthrough SPECIFICATION – profiling existing and needed services |
| (2) LOWER COSTSthrough SIMPLIFICATION – sourcing services with commodity components |
| (3) ENHANCED CAPABILITIESthrough STANDARDIZATION – and enabling services - enabling new possibilities |
| (4) INCREASED EFFICIENCYthrough RATIONALIZATION – increasing sharing and reducing redundancy |
| (5) HIGHER QUALITYthrough OPTIMIZATION of processes and IT systems |

| Key EPA Challenges  | Relevant SOA Strategies |
| --- | --- |
| Linking Mission and ManagementDevelopment of more outcome-based strategic and annual targets in collaboration with partners | (1) Define outcomes in terms of stakeholder value delivered by services; define partner [stakeholder] collaboration needs and service requirements
(3) Standardize and provide enabling services that facilitate collaboration among partners |
| Agency Efforts in Support of Homeland SecurityImplementing a strategy to effectively coordinate and address threats | (1) Define threat mitigation in terms of stakeholder value; define coordination partner [stakeholder] needs and service requirements
(3) Standardize and provide enabling services that facilitate threat mitigation and coordination |
| Information Resources Management & Data QualityImproving the quality of data used to make decisions and monitor progress | (1) Define decision maker [stakeholder] needs and information service requirements
(3) Standardize and provide enabling services that improve decisions and monitoring
(5) Optimize information quality processes |
| EPA’s Use of Assistance Agreements to Accomplish its MissionImproving the management of the billions of dollars of grants awarded by EPA | (1) Define grant manager [stakeholder] needs and grant management service requirements
(3) Standardize and provide enabling services that improve grants management |
| Information SecurityProtecting information systems by preventing intrusion and abuse of systems, and protecting integrity of data |  (1) Define stakeholder security needs and security service requirements
 (3) Standardize and provide enabling services that protect information systems |

**SOA DEMAND ASSESSMENT**

## In Order to Address the EPA’s Key Challenges, Changes Need to be Made to the EPA’s Services

**In Order to Address the EPA’s Key Challenges, Changes Need to be Made to the EPA’s Services**

**BUSINESS****SERVICES**

**COMMON ENABLING****SERVICES**

**TECHNOLOGY****SERVICES**

**Applicability**

**Specialized**

**Generalized**

**Granularity**

**Detailed**

**Summary**

- EPA BRM LOBsand Sub-Functions

- OEI Toolbox

- EPA BusinessProcesses

- EPA TRMServices

- ElementaryBusiness Services

- OEI ToolSolutions

- ElementaryEnabling Services

- Notional SolutionArchitecture Services

- ElementaryTechnical Services

*Shaded areas indicate service profile information not yet discovered during SOA strategy assessment*

**SOA DEMAND ASSESSMENT**

## Next Steps

- Information gathering sessions with OEI stakeholders
- Questionnaire for Web Services Working Group members
- Refinement of Demand Assessment based on above input
- Sourcing and Governance Strategies discussions
- Rough Strategy document