The cloud computing revolution came with its approaches to development and that led to development by way of microservices. Much like a tiger team of specialized developers, each microservice plays a unique part yet works in harmony to produce an end product of efficiency and resilience. 

Applications built upon this monolithic architecture found themselves struggling to keep up with the pace, unable to adapt swiftly to changes. There’s a solid reason that makes microservices the most popular choice for development and it comes down to one word: communication.

Let’s delve into the world of microservices to find out how flexibility in communication is transforming the development landscape and forming a critical backbone for an efficient process automation system. 

The importance of communication between microservices

Monolithic architecture might offer simplicity and efficiency but it can, and likely will, present many challenges in terms of scalability, limited technology diversity, and deployment/maintenance. 

Take, for example, a web application. Imagine having the backend business logic and frontend code inside the same project. Now, within a monolithic architecture, these two very distinct parts are housed within the same project, operating as part of the same process.

This might seem like a good idea initially. After all, everything is in one place, right? However, in reality this is far from ideal. 

As your application grows, so does the complexity of managing this intertwined code. Imagine trying to untangle a ball of yarn that’s been mixed up with different colors—that’s what you’re dealing with.

In comparison, microservices seem perfectly designed to tackle many of the issues presented in monolithic architectures. They are scalable, give developers the freedom to use whatever technology or programming language they wish to code the service, and they are easy to deploy and redeploy. However, microservices can only do these things if service-to-service communication is handled correctly.

In a monolithic architecture, all parts participating in the application service are tightly interconnected, leading to a complex web of interactions. However, with microservices, each service communicates with other individual services internally through APIs. If this isn’t handled properly, it can cause just as much trouble as a monolith if not more so.

Understanding different types of microservices communication

The biggest hurdle in transitioning from a monolithic architecture to microservices is communication. In a monolithic structure, communication is straightforward. But with microservices, it requires careful planning, inter-service communication, message communication, and understanding.

Imagine your platform as a pizza shop. In a monolithic setup, there’s just one employee responsible for everything. In a microservices environment, you have different people handling different tasks (the chef, the server, and the manager), and they all need to communicate effectively to keep the pizza place running smoothly.

There are two main types of communication in microservices: synchronous and asynchronous messaging.

Synchronous communication between microservices

In synchronous communication, a service sends a request to another service and waits on one or more services for a response before continuing with its tasks.

It’s much like a conversational call-and-response. After the “call”, you’re waiting for the other person to answer before you continue speaking. A service sends a request to another service and waits for a response before it can make a client request and continue with its tasks.

This method ensures that all processes are completed in order, but it can slow down operations, especially when dealing with multiple microservices with complex requests. Until there’s an answer, with synchronous communication your microservice is essentially left twiddling its thumbs, unable to move forward until it receives a response. When you have multiple services just sitting there waiting it can get even worse. Poor microservices communication can lead to bottlenecks, slowing communication patterns, down business processes, and reducing efficiency.

Asynchronous communication between microservices

The other type of microservice communication, asynchronous, allows a service to continue with its tasks after sending a request, without waiting for a response. 

It’s like dropping a letter in the mail—the message sender isn’t standing at the mailbox waiting for a reply; you continue with your day. This method allows your services to multitask effectively, improving efficiency and scalability. Going back to our pizza shop example, instead of having one person do everything, you’ve got a team where each member can concentrate on their single, focused task without getting bogged down.

But, dropping a letter in the mail or working in a pizza shop requires trust that the tasks outside of your purview will get done. The pizza will get made, the letter will reach its destination. Asynchronous communication requires similarly careful planning and management. 

You need to ensure that your requests are being received and processed and that responses are being sent and received appropriately. If not managed correctly, asynchronous communication can lead to missed messages or responses, leading to errors and inconsistencies in your operations. 

This requires an understanding of orchestration and choreography.

Understanding microservice choreography and orchestration

When it comes to distributed systems, two microservice communication patterns stand out—choreography and orchestration. But what exactly do they mean, and how do they differ? Let’s dive into the details.

Choreography and Microservice Communication

Have you ever watched a flock of birds moving in the sky? Each bird knows when to turn, dive, or climb, creating a mesmerizing dance in the air. That’s choreography in nature—no central authority, just seamless synchronization.

Now, let’s bring this concept into the realm of IT architecture where microservices communicate. Here, choreography microservice architecture is about different software components interacting with services to communicate with each other seamlessly without needing a central conductor. Each component knows its role and how to respond to specific events.

Consider this: an e-commerce website receives an order (an event). This triggers the inventory system to check if the item is in stock, the payment gateway to process the transaction, and the shipping service to prepare for delivery. None of these systems need to wait for instructions from a central authority. They react autonomously to the event, like birds in a flock.

Orchestration and microservice communication

Remember when you were in school and your teacher coordinated a class project? They assigned roles, set deadlines, and managed the overall progress. That’s orchestration in a nutshell—a central authority directing the actions of different participants.

In IT architecture, orchestration follows a similar pattern. A central coordinator manages and controls the interactions between different software components.

Imagine a hotel booking platform. When a user makes a booking, the orchestration service springs into action. It sends a command to the reservation system to reserve the room, instructs the payment system to process the payment, and prompts the email service to send a confirmation email to the user. 

All these actions are centrally coordinated, ensuring a smooth flow of operations. 

Both have their strengths and weaknesses. Which should you use?

Choosing the right microservice communication method for your needs is vital

Choosing between synchronous and asynchronous communication and which approach you should take depends on your specific needs and circumstances. Take the story of Goldman Sachs story for example. 

Goldman Sachs is a leading global investment banking, securities, and investment management firm, and has been leveraging Camunda for microservices orchestration since 2015. This platform was integral to delivering financial automation at an enterprise scale, with over 60,000 unique users annually and approximately six million tasks executed weekly.

However, as the landscape evolved in 2020, so did Goldman Sachs’ priorities (check out the full story in a Camunda Community Summit session). The need for enhanced throughput, scalability, and resilience became more apparent. Additionally, the internal payments team recognized a growing requirement for heightened security, rapid disaster recovery without data loss, and a smoother payment handling process.

In response to these evolving needs of microservices communications, Goldman Sachs embarked on the development of a new microservices orchestration platform. This platform was designed using asynchronous messaging so they could not only meet the changing demands of internal communication in microservices but also offer the flexibility to adapt to future use cases.

The result was a robust and scalable platform capable of adapting to the increasing demands. With enhanced security measures, Goldman Sachs could now handle payments more smoothly and recover from disruptive incidents in just minutes, without any data loss.

This platform’s success underscores the importance of adaptability in technology solutions. As business needs evolve, so too should the tools and platforms that support them. Goldman Sachs’s original monolith was incapable of any sort of rapid change. 

By shifting to a microservices architecture they were able to deconstruct the monolith and become a far more nimble organization through the use of a distributed system. With the creation of their Enterprise Automation Platform, they’ve managed to take their ability to adapt using microservices even further.

Conclusion

Microservices offer a powerful solution to the challenges of monolithic architecture.

By understanding and effectively managing communication between different web services together, you can harness this power to drive your business forward.

The post Unlocking the Power of Effective Microservices Communication appeared first on Camunda.

Automation in insurance is quickly emerging as a game-changer for firms looking to get or maintain a competitive edge.

By replacing manual processes with automated ones, insurers can streamline their operations, reduce redundancies, and eliminate human errors that often lead to costly mistakes. 

How do you automate insurance? In this blog we’re going to delve into specifics and explore how automation is revolutionizing the insurance industry, one process at a time. 

How automation is changing insurance

Insurers are dealing with a complex regulatory environment, process risk, competitive pressures, and the need for seamless customer experiences. Using automation can help you accomplish all of those and at scale.

Consider this: Making a single-digit change within pricing in a legacy system can take weeks or even months to complete. It’s like trying to turn a cruise ship – slow, cumbersome, and fraught with potential pitfalls. Now imagine a speedboat that can make quick turns and adjustments on the fly. 

That’s what automation brings to the table.

Seven use cases for automation in insurance

Even as recently as a few years ago, insurers have been hamstrung by traditional systems that might date back to the 1960’s and 1970’s. These monolithic platforms were so mission critical that it became nearly impossible to make changes in the ensuing decades even as software development methods changed. 

However, with the advent of automation and process orchestration, insurers can now break down these monolithic systems into more manageable, scalable ones. Here are some key use cases that highlight how automation is changing the game in insurance.

Launching digital transformation initiatives

Legacy systems, though mission-critical, are often cited as a roadblock to innovation and growth. Leading firms, according to PwC, are capable of “identify[ing] new product categories (as opposed to just adding new features) and have the brand strength to deliver them.” By automating various processes, insurers can deconstruct these systems into more composable elements, paving the way for digital transformation. This not only enhances operational efficiency but also offers the flexibility to adapt to changing market dynamics and scale.

Streamlining claims processing

Most times a customer is dealing with their insurer it’s going to be about a claim. 

This makes claims processing one area that can greatly benefit from digital transformation efforts. With automated workflows, insurers can expedite the claims resolution process, leading to improved customer satisfaction. No more long waiting periods or tedious paperwork; just quick, efficient service that keeps customers happy and loyal.

Speeding up risk assessment for new customers

Let’s face it—as customers we’re more impatient than ever. Whenever customers are interacting with brands, they often expect immediate or near immediate responses. They won’t wait for days or even hours to get approval for insurance. Automation enables insurers to conduct risk assessments quickly and accurately, making the customer onboarding experience far smoother. 

Adopting usage-based insurance (UBI)

“Usage-based insurance programs,” writes Forbes “generally measure speeding, acceleration and harsh braking, along with mileage and the time of day you drive”. With the growing popularity of UBI, insurers need to keep up with daily adjustments in how customers utilize their insurance. Manual methods can be time-consuming and error-prone. However, automation can make this process a piece of cake, enabling insurers to adjust premiums effectively and efficiently.

Reducing manual document reviews

Insurance firms certainly don’t lack documentation. Some of the information necessary for proper risk management can be complex and time-consuming to review meaning it requires human intervention. Automation can handle bulk (yet simpler) document reviews, freeing up employees to focus on more sensitive or unique issues. Likewise, it can ensure that those high-touch tasks are escalated to the right person for intervention. This not only improves productivity but also ensures a higher degree of accuracy in document processing.

Bolstering data security

According to the 2023 DBIR by Verizon, data breaches remain a significant threat to the insurance industry. All told, their research found 1,832 incidents of which 480 included confirmed data disclosure. Automation can enhance data security by implementing robust security protocols and ensuring end-to-end protection. Moreover, it can help insurers comply with various regulatory requirements, thereby reducing the risk of non-compliance and associated penalties.

Managing policies efficiently

Policy management is another area where automation can make a big difference. From policy issuance to renewals and modifications, automation can handle various tasks efficiently, reducing manual intervention and potential errors.

How to adopt automation in insurance

With so many options, it can be tough to choose just one place to start. Let’s dig into exactly how to implement automation effectively within your firm.

Starting with a Proof-of-Concept (PoC)

If a journey of a thousand miles begins with a single step, well, for automation that step is your proof-of-concept (PoC). A PoC is a small-scale implementation designed to validate your architecture and technology stack. You’ve got to dip your toes in the water first before you’re cannonballing in the deep end.

The PoC should focus on a specific use case. For instance, Generali Switzerland focused on auditing processes and keeping detailed, searchable historical records in a user-friendly format for compliance purposes. By keeping their focus narrow, they were able to gauge the effectiveness of automation in that area and make necessary adjustments. Remember, the goal here isn’t to achieve perfection but to learn and improve.

Moving onto a lighthouse project

Once you’ve validated your PoC, it’s time to take on a more ambitious task—a lighthouse project. This project has a broader scope and a more realistic setting, serving as a beacon for future automation initiatives. Continuing the metaphor, it’s like the torch that’ll illuminate for the ships to come in the future.

The lighthouse project should aim to solve a real business problem, demonstrating the value of automation to stakeholders. For instance, you could automate the entire claims process, from submission to resolution. Not only would this result in quicker claim settlements but also free up your staff’s time to focus on more strategic tasks.

Establishing an automation Center of Excellence (CoE)

As you progress on your automation journey, you’ll need a guiding force. That’s where an Automation Center of Excellence (CoE) comes in. The CoE is a dedicated team responsible for assessing current solutions, evaluating tools, providing training, and assisting teams with their use cases. It’s like having a team of automation experts at your disposal, ready to help you navigate the complex world of automation.

The CoE should not become a bottleneck, but rather empower teams to kick off their own automation efforts quickly and efficiently. The goal is to create a culture of innovation where teams feel confident to experiment with automation and learn from their experiences.

Expanding process automation across the organization

Once you’ve tasted success with your initial projects, it’s time to expand. This could mean scaling up existing projects or launching new ones. The extent of this expansion largely depends on your organizational culture. 

Some firms might prefer to keep automation confined to specific areas, while others might want to use the same platform across the organization.

Regardless of the approach, the key is to maintain momentum. Remember the saying, “If you’re not moving forward, you’re falling behind?” That’s especially true with how quickly digitalization is moving. 

By continually expanding your automation efforts, you can stay ahead of the curve and deliver superior customer experiences

Empowering teams to drive automation

Finally, remember that automation isn’t just a technology initiative; it’s a cultural shift. To truly reap the benefits of automation, you need to understand where you’re starting from. 

Consider ranking your organization on Camunda’s Process Orchestration Maturity Model to better understand the challenges your organization is facing in meeting automation goals. By using this framework, you’ll be able to understand where your organization stands across five different drivers to rank your automation program from 0 (no process organization) to 4 (strategic, scaled adoption).

It’s only through understanding that you can empower your teams to drive toward success. 

Provide them with the necessary training and resources, encourage them to experiment, and celebrate their successes. By doing so, you can foster a culture of innovation and continuous improvement, propelling your firm towards a brighter, more automated future.

Insurance automation doesn’t have to be difficult

Rome wasn’t built in a day. Your automation program won’t be implemented that quickly within your insurance firm either. 

It requires careful planning, execution, and continuous improvement. 

But with the right approach, you can transform your operations, enhance customer satisfaction, and secure a competitive edge. So, are you ready to embark on this exciting journey? 

The time to automate is now—so what are you waiting for? Try out Camunda free for 30 days.

The post A Guide to Automation in Insurance: Top Use Cases and Benefits appeared first on Camunda.

For the latest installment of Why Camunda, we spoke with Heimstaden, a leading European residential real estate investor and manager, operating in 10 markets. Due to the Heimstaden’s multinational operations, consisting of teams spread across multiple countries and working in several different languages, the company needed to maximize their operational efficiencies.

That led them to decide on building a centralized process automation platform. Their goal was to orchestrate the human tasks involved in their tenant support ticketing system. They were especially keen to implement BPMN visualizations into that process.

To accomplish this, Heimstaden chose the Camunda SaaS Professional plan in 2022 to run a proof of concept, orchestrating their tenant support ticketing system, before deciding to upgrade to the Camunda Enterprise edition as they moved towards going live in production in 2023. We spoke with lead architect Aleksander Hakestad to learn more about the company’s decision-making process:  

Tell us about your use case. What is the problem you’re hoping to solve with Camunda?

Aleksander Hakestad: In a diverse company where multiple languages are spoken among employees and customers, visual communication methods are essential. By relying on visual tools, we minimize the risk of misunderstandings, ensuring that everyone can contribute their expertise effectively. 

This approach not only fosters better collaboration but also prompts the right questions. Moreover, when our platform operates with visual clarity, employees can directly see the outcomes. This direct visual feedback empowers them to make more informed decisions and improvements.

Why is it important to the business to solve this problem?

Aleksander Hakestad: To achieve our company’s objectives, leveraging digital tools, automation, and other resources is essential for enhancing efficiency and reducing miscommunication. Our operations span 10 countries. It’s not only crucial to gather input from everyone but also to identify and establish common processes throughout the company. Each region offers unique expertise, and by pooling our collective knowledge, we can create unified strategies that everyone contributes to, ensuring a cohesive approach to our goals.

Which options did you evaluate to solve your problem?

Aleksander Hakestad: We knew we needed a process component to our architecture. Before Camunda we experimented a lot with state management, either in the back end or in our front end applications.

What were the key decision criteria you had when evaluating options, and why did you decide on Camunda?

Aleksander Hakestad: At its core, our primary focus was to minimize the barrier to entry for our employees. Starting with the Camunda SaaS Professional plan was instrumental in achieving this. We’ve since transitioned to the Enterprise edition, further emphasizing our commitment to optimizing our operations and expanding across different use cases.

What’s your advice for anyone evaluating Camunda? Any helpful lessons you’ve learned and would like to share?

Aleksander Hakestad: When considering options, I suggest evaluating the total alternative cost. The pace of development is paramount during the initial stages of introducing technology to a team. Any measures to expedite this process are invaluable. For us, leveraging built-in deployment features and online interfaces—bypassing the need for setup and maintenance—was undeniably a worthy investment.

The post Why Heimstaden chose Camunda for Their Tenant Ticketing System appeared first on Camunda.