Web Services in Web Services in Financial Services Financial Services
Dr. James GardnerDr. James Gardner
Financial Services Industry GroupFinancial Services Industry Group
Microsoft CorporationMicrosoft Corporation
“The newest innovations, which we label information technologies, have begun to
alter the manner in which we do business and create value, often in ways not readily
foreseeable even five years ago.”
Alan Greenspan Chairman, U.S. Federal Reserve
This SessionThis Session
Web Services: a reviewWeb Services: a review Enhanced Web Services: the service Enhanced Web Services: the service
oriented architectureoriented architecture The Services EcosystemThe Services Ecosystem
The problem…The problem…
The old way: types and proprietary The old way: types and proprietary implementationimplementation
Tight couplingTight coupling Fundamental premise: things will workFundamental premise: things will work Assumption is that data is well formedAssumption is that data is well formed
… … and the solutionand the solution
The new way: schemas and contractsThe new way: schemas and contracts Loose couplingLoose coupling Fundamental premise: things will go Fundamental premise: things will go
wrongwrong Data may not be well formed: web Data may not be well formed: web
services are self defensive (internet services are self defensive (internet pedigree)pedigree)
Web Services Web Services EvolutionEvolution
Business BenefitBusiness Benefit
Pre-1990sCustom, staticCustom, staticB2B IntegrationB2B IntegrationCustom, staticCustom, staticB2B IntegrationB2B Integration
Early 1990sApplication integration
technologies appearApplication integration
technologies appear
Late 1990sWeb technologies appear
e.g. HTTP, HTML, XMLWeb technologies appear
e.g. HTTP, HTML, XML
2000+Web application
technology = Web services
Web application technology = Web services
The result…The result…
Universal and Universal and safesafe interoperability interoperability Connectivity across process and Connectivity across process and
enterprise boundariesenterprise boundaries Web services make it easier than ever Web services make it easier than ever
before to integrate systems, processes before to integrate systems, processes and peopleand people
We see web services everywhere… We see web services everywhere…
Platform
Identity Management
Messaging/Collaboration
Business Process Management
Integration
CRM
ERP
Datawarehouse / Business Intelligence
Customers Suppliers
Back End / Legacy
ClientFacing
Functions
Value adding functions thatthe customer experiences.
Support for CustomerActivities.
Middle Office Back OfficeFront Office
Cha
nn
el
… … and analysts agreeand analysts agree
““The payoff is huge – using Web services instead of The payoff is huge – using Web services instead of proprietary integration technology cuts the time and proprietary integration technology cuts the time and cost by a factor of 10”cost by a factor of 10” - Forrester Research March - Forrester Research March 20032003
““Web services will become the dominant distributed Web services will become the dominant distributed computing architecture in the next 10 years and will computing architecture in the next 10 years and will eventually define the fabric of computing” – IDC, eventually define the fabric of computing” – IDC, 05/02/0305/02/03
““Everyone should build on the XML/SOAP Everyone should build on the XML/SOAP foundation.” - Meta Groupfoundation.” - Meta Group
WSIWSI
Industry initiative focused on promoting Industry initiative focused on promoting Web services interoperabilityWeb services interoperability
Open participation and membership Open participation and membership (160+) including, customers and (160+) including, customers and vendors (MS, IBM, Sun)vendors (MS, IBM, Sun)
Example: Risk Management Example: Risk Management DashboardDashboard
Schedules, companydata, analysts’ reports,company reports,third-party news,pricing, and content
Example: Cost ReductionExample: Cost Reduction 1-800-Merrill: Used Web services to 1-800-Merrill: Used Web services to
consolidate multiple legacy voice response consolidate multiple legacy voice response systems (> 75 million transactions/day); systems (> 75 million transactions/day); reduced customer response time, increased reduced customer response time, increased flexibility—ASP.NET, SQL Server™, flexibility—ASP.NET, SQL Server™, VoiceXMLVoiceXML
Used Web services to improve management Used Web services to improve management of customer stock orders; increased of customer stock orders; increased customer satisfaction and employee and customer satisfaction and employee and developer productivity; saved $100K – developer productivity; saved $100K – Windows® 2000, SQL Server, Visual Windows® 2000, SQL Server, Visual Studio® .NET, ASP.NETStudio® .NET, ASP.NET
AccessAllstate.com: Used Web services to AccessAllstate.com: Used Web services to integrate five policy management systems integrate five policy management systems and extend access to more than 350K and extend access to more than 350K agents; reduced costs for mailings, call agents; reduced costs for mailings, call centers; 300% performance increase — centers; 300% performance increase — ASP.NET, Visual Studio .NET, SQL Server, ASP.NET, Visual Studio .NET, SQL Server, Windows 2000Windows 2000
But what is the true value?But what is the true value?
Are web services just another way to do Are web services just another way to do integration?integration?
If so, what is the true value?If so, what is the true value? Shouldn’t there be real business Shouldn’t there be real business
benefits, not just technology outcomes?benefits, not just technology outcomes?
Web Services: more than integration?Web Services: more than integration?
Stateless web services don’t cut it for Stateless web services don’t cut it for some business transactions.some business transactions.
Reliable, just once in-order delivery?Reliable, just once in-order delivery? High value transactions between High value transactions between
counterparties?counterparties? Transactions that span systems?Transactions that span systems? Long running transactions without Long running transactions without
atomicity?atomicity?
Enhanced Web ServicesEnhanced Web Services
Reliable MessagingReliable Messaging SecuritySecurity TransactionsTransactions Processes (Orchestration)Processes (Orchestration) WS Architecture complete- vendors WS Architecture complete- vendors
starting to deliver implementationsstarting to deliver implementations
So What?So What?
Web services by themselves are just Web services by themselves are just islands of functionislands of function
Add the new standards and you can Add the new standards and you can describe any sort of business describe any sort of business interactioninteraction
Service Oriented ArchitectureService Oriented Architecture
Service Oriented ArchitectureService Oriented Architecture
Service orientated architectures are Service orientated architectures are what result when you connect what result when you connect functional islands in a process centric functional islands in a process centric way.way.
Loose wiring, rapidly changing.Loose wiring, rapidly changing. Look to BPM-like platforms for the Look to BPM-like platforms for the
wiring.wiring. The process itself can be a web service!The process itself can be a web service! Web services build web services build Web services build web services build
web services.web services.
Service OrientationService Orientation Nasdaq.com: Used Web services to Nasdaq.com: Used Web services to
extend personalized market data to extend personalized market data to traders on any device anywhere; traders on any device anywhere; leveraged Platform Web services, Alerts, leveraged Platform Web services, Alerts, Passport to provide better customer Passport to provide better customer experience—Visual Studio .NET, experience—Visual Studio .NET, ASP.NET, SQL ServerASP.NET, SQL Server
Used Web services more efficiently to link Used Web services more efficiently to link sales, research, and trading areas with sales, research, and trading areas with CRM system to provide more automated CRM system to provide more automated and timely information to customers; and timely information to customers; sales increase of 30%, ROI of 35% in 12 sales increase of 30%, ROI of 35% in 12 months — SQL Server, Windows months — SQL Server, Windows 2000, .NET Framework2000, .NET Framework
SOA: Divisione MutuiSOA: Divisione Mutui
““We built a solution that gives us full control We built a solution that gives us full control over our business data, integrates promoters over our business data, integrates promoters into all loan application processes, and into all loan application processes, and transparently connects our systems to those of transparently connects our systems to those of our partner banks. Now we are free to focus our partner banks. Now we are free to focus and devote our best resources to meet our and devote our best resources to meet our customers’ needs and expectations”customers’ needs and expectations”
- Diego Locatelli: MD, Divisone Mutui- Diego Locatelli: MD, Divisone Mutui
Service Oriented Service Oriented Architecture: benefitsArchitecture: benefits
Makes it easy and quick to delivery Makes it easy and quick to delivery capabilitycapability
Means you can rapidly respond to Means you can rapidly respond to changechange
Ultimately, lets you solve IT problems in Ultimately, lets you solve IT problems in an elegant wayan elegant way
No longer about J2EE vs. .NetNo longer about J2EE vs. .Net
Why Bother?Why Bother?
The customer relationship is the most The customer relationship is the most important assetimportant asset
Supply what the customer wants, at the Supply what the customer wants, at the time and in the channel of choicetime and in the channel of choice
““Know me, know my needs”Know me, know my needs”
Removing the barriers…Removing the barriers…
What if you don’t have the product the What if you don’t have the product the customer wants?customer wants?
What if you don’t have the channel?What if you don’t have the channel? Can one financial institution be the Can one financial institution be the
answer to all the customers’ needs?answer to all the customers’ needs?
The future…The future…
““By 2006, Web services will take By 2006, Web services will take hold as a competitive differentiator hold as a competitive differentiator in business relationships and in business relationships and product innovation”product innovation”
- Gartner 2003- Gartner 2003
Services EcosystemServices Ecosystem
A business environment where every A business environment where every process, every service, every product, is process, every service, every product, is sourced from best of breed suppliers and sourced from best of breed suppliers and seamlessly integrated into a unified customer seamlessly integrated into a unified customer offer.offer.
Substitute any work unit, any business Substitute any work unit, any business process for another without change (loose process for another without change (loose coupling)coupling)
Source any work unit (product), any business Source any work unit (product), any business process from any supplierprocess from any supplier
Do it dynamically!Do it dynamically!
Business Opportunity of a Business Opportunity of a WS EcosystemWS Ecosystem Ensure that your offering in the marketing is Ensure that your offering in the marketing is
comprised of “best of breed” componentscomprised of “best of breed” components Give the customer what they want, even if you Give the customer what they want, even if you
don’t have itdon’t have it Differentiate based on service and how well Differentiate based on service and how well
you integrate the piecesyou integrate the pieces
Web Services EvolutionWeb Services Evolution
Technology
Result
Services Ecosystem
WS Connected
Compete in the market
WS Enhanced
SOA
Resolve ITChallenges
Integration
Web Services
InteropInnovation
Why MicrosoftWhy MicrosoftA
bi l
i ty
to
Exe
cut e
Ab
i li t
y t
o E
xecu
t e
Completeness of VisionCompleteness of Vision
IBMIBM
MicrosoftMicrosoft
Gartner Group: “Major Vendor Web Services Platform Influence Magic Quadrant”Gartner Group: “Major Vendor Web Services Platform Influence Magic Quadrant”
HPHP
SunSun
OracleOracle
BEA
Challengers Leaders
Niche Players Visionaries
2002-20032002-2003
*CIO Magazine Poll Jan 03*CIO Magazine Poll Jan 03
CIOs: which platform is preferred CIOs: which platform is preferred in building Web services*in building Web services*
Microsoft .NET Microsoft .NET 46.5%46.5%IBM WebSphere 19%IBM WebSphere 19%Sun ONE 8.2%Sun ONE 8.2%
“The newest innovations, which we label information technologies, have begun to
alter the manner in which we do business and create value, often in ways not readily
foreseeable even five years ago.”
Alan Greenspan Chairman, U.S. Federal Reserve