Service Oriented Architectures. SAP 2006 Business Requirements for 2010 Consolidation will impact most industries… and accelerate specialization Changing.
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SAP 2006
Business Requirements for 2010
Consolidation will impact most industries…
and accelerate specialization
Changing customer needs continue to be the key growth opportunity…
but will require business model innovation
Embedded software and digitization create new opportunities …
both in processes and business models.
Flexibility and speed become “design imperatives”…… promoting IT to strategic “weapon”
Source: Economist Intelligence Unit Survey
SAP 2006
Business expectations
Process change should take weeks or days
Business users demand a competitive edge
Focus investment on strategic innovation
IT reality
Hard-wired systems mean process change takes years
Disparate IT systems result in siloed user views
Best-of-breed silos eat up 70% of budget
Technology Is Not Seen as Strategic Growing Disconnect Between Business and IT
SAP 2006
So This is How it Feels Sometimes…
Technology should be an enabler of IT, not an barrier..
Increasing
Business requirements
Rapid Change/rollouts
Budget constraints
New Technology andlegacy support
New ‘customers’
SAP 2006
The New Integration ChallengeDisparate Technologies Do Not Support Process Innovation
Inflexible: slows process changeHardwired process
Purpose-built integrations
Reuse is difficult
IT silos can’t meet LOB needsIT upkeep fights with LOB demands
LOB unable to leverage information
IT silos prevent delivering composites
Costly to maintain; ties up budgetExponential number of integrations
No cohesive master data
Redundant processes
ApplicationServer
PortalBusiness
Intelligence
Messaging
Security
Master Data Mgmt
Enterprise Integration
CRM
SRM
ERP
SAP 2006
The Emergence of a Services Oriented Approach
Platform Requirements Preintegrated
Process-centric
Leverages existing assets
Service-enabled
Supports rapid process recomposition
Rich ecosystem for co-innovation
ApplicationServer
Portal
Business Intelligence
Messaging
Security
Master Data Mgmt
Enterprise Integration
SAP 2006
Web Services: Definition
WEB SERVICES are
SELF-CONTAINED
and SELF-DESCRIBING
APPLICATION FUNCTIONS
that can be
PROCESSED
through
OPEN INTERNET STANDARDS
SAP 2006
The Approach: Service Oriented ArchitectureSOA is essential but missing business semantics
ENTERPRISE SERVICES“PRODUCTIZED”
Business Integrity!
SOA - WEB SERVICES“BUILT”
Delete fromdatabase
Rollbackinventory
CancelShipment
CancelInvoicing
SendNotification
AdjustPlanning
NotifySuppliers
Chaos?
Cancel Order
CancelShipment
SendNotification
AdjustPlanning
NotifySuppliers
CancelInvoicing
Rollback inventory
CancelInvoicing
SAP 2006
Services Oriented Architecture
Business Processes and User Interaction
Abstraction and Integration
EnterpriseServices
Enterprise Applications
SAP 2006
PEOPLE PRODUCTIVITY
ANALYTICS/REPORTING
Enterprise Services Oriented Architectures
Bus.Partner
Legacy
SAP NetWeaver
SERVICE COMPOSITION
Business Objects, Components, and Engines
PartnerServices
EnterpriseServices
RepositorySERVICE ENABLEMENT
LIFE-CYCLELIFE-CYCLEMANAGEMENT
SAP’s Enterprise Services
5 KEY ELEMENTS
SAP 2006
Process Innovation – Enabling Differentiation
Leverage and Reuse
SOA PlatformE
RP
ER
P
CR
MC
RM
EnterpriseServices
Repository
ENTERPRISESERVICES
PL
MP
LM
SR
MS
RM
SC
MS
CM
Cu
sto
mC
us
tom
Manufacture-to-InventoryManufacture-to-Inventory
Order-to-CashOrder-to-Cash
Procure-to-PayProcure-to-Pay
Any Existing System
DIFFERENTIATION PRODUCTIVITY
SAP 2006
DIFFERENTIATION PRODUCTIVITY
Process Innovation – Enabling Differentiation
REUSE PROCESS STEPS AND ENTERPRISE SERVICES IN CUSTOM
PROCESSES
ER
PE
RP
CR
MC
RM
PL
MP
LM
SR
MS
RM
SC
MS
CM
Cu
sto
mC
us
tom
SAP NetWeaver
ENTERPRISESERVICES
SOA PlatformEnterpriseServices
Repository
Plan Manuf.
Auction
Source Procure
Availability-to-SaleAvailability-to-Sale
P2PP2P
O2CO2C
M2iM2i
Any Existing System
Leverage and Reuse
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