E-Business and B2B Integration A Tutorial by Gurpur M. Prabhu.

E-Business and E-Business and B2B IntegrationB2B Integration

A Tutorial by A Tutorial by Gurpur M. PrabhuGurpur M. Prabhu

Copyright 2002 Gurpur M. PrabhuCopyright 2002 Gurpur M. Prabhu 22

OutlineOutline

E-BusinessE-BusinessNature of Business ActivitiesNature of Business ActivitiesBusiness Requests and ResponsesBusiness Requests and ResponsesRequirements for Business IntegrationRequirements for Business IntegrationEAI vs. B2BEAI vs. B2BXMLXMLRosettaNet, Web Services, BizTalkRosettaNet, Web Services, BizTalkSummarySummary


What is E-Business?What is E-Business?

To some it means Web-enabled sellingTo some it means Web-enabled selling

To some it means middlewareTo some it means middleware

To some it means Web application serversTo some it means Web application servers

To some it means Web ServicesTo some it means Web Services

To many it is the force that is driving the To many it is the force that is driving the fundamental restructuring of every industryfundamental restructuring of every industry


E-BusinessE-Business

The value of E-business is clearThe value of E-business is clear

How to make it happen is less clearHow to make it happen is less clear

It demands a very different technology It demands a very different technology than current systemsthan current systems

Current technology is developer-orientedCurrent technology is developer-oriented

What is needed is a business-oriented What is needed is a business-oriented focusfocus


Event-Driven ParadigmEvent-Driven Paradigm

E-business is event-drivenE-business is event-driven

An order event instantaneously triggers An order event instantaneously triggers other eventsother events

Every system affects every other system Every system affects every other system in real timein real time

Common business models are needed to Common business models are needed to determine the “path” of business eventsdetermine the “path” of business events


What is Integration?What is Integration?

To some it means integration of dataTo some it means integration of data

To some it means integration of To some it means integration of applicationsapplications

‘‘Seamless integration of business Seamless integration of business processes’ sounds like an IBM TV processes’ sounds like an IBM TV commercialcommercial

No clear consensus on ‘integration’No clear consensus on ‘integration’


Nature of Business IntegrationNature of Business Integration

A system should be able to communicate A system should be able to communicate with other systems, automatically and with other systems, automatically and expedientlyexpediently

Is bound at both data Is bound at both data andand process levels process levels

Information exchange alone is not enough Information exchange alone is not enough – business rules and processes also need – business rules and processes also need to be mutually accommodated to process to be mutually accommodated to process datadata


Intelligence

Needed

Economic Benefit

Business Activities

Strategy

Planning

Marketing

Making Requests

Handling Requests

OperationalImprovement

Speculation

Assembly LineBook-keeping

Inventory Control


Nature of Requests

User-Initiated Business Event-Driven

JIT Data gatheringSpecial

Standard

RFQ ResponseRFQ

ShipmentStatistics Report

Order Fulfillment


Handling Incoming Requests

Low HighDecision Making

Credit PaymentSpecial

Standard

Purchase OrderAccount Balance

ShipmentStatistics Report


Manufacturer

Send RFQTo Supplier

Send requestTo Shipper

Make Decision

Supplier

Response Shipper

Response

Example Process: Request For Quotation

Time

Business Message


Example Process: RFQ (1)Example Process: RFQ (1)

Manufacturer sends request to several Manufacturer sends request to several supplierssuppliersSuppliers send responses backSuppliers send responses backMfr sends request to several shippersMfr sends request to several shippersShippers send responses backShippers send responses backMfr has to make decision based on Mfr has to make decision based on various responsesvarious responsesFor Mfr, all business messages are part of For Mfr, all business messages are part of a SINGLE business transactiona SINGLE business transaction


Example Process: RFQ (2)Example Process: RFQ (2)

Suppliers and shippers will have multiple Suppliers and shippers will have multiple business transactions with multiple business transactions with multiple manufacturers, all executing concurrentlymanufacturers, all executing concurrently

Time between response to mfr and order Time between response to mfr and order acknowledgment is criticalacknowledgment is critical

All transactions are exposed to All transactions are exposed to partialpartial updates made by other concurrently updates made by other concurrently executing transactionsexecuting transactions


Variations in ResponsesVariations in Responses

Accept or Reject our requestAccept or Reject our request

Alter our requestAlter our request

Partially accept our requestPartially accept our request

All the above with respect to one or more All the above with respect to one or more elements in our requestelements in our request


Evaluating ResponsesEvaluating Responses

Determine context of requestDetermine context of request

Consider acceptable alternativesConsider acceptable alternatives

Determine relationships between elements Determine relationships between elements in the request that affect partial in the request that affect partial acceptanceacceptance

Compare responses from different targetsCompare responses from different targets


Critical Success Factors for BPICritical Success Factors for BPI

Ensuring that Business Process Ensuring that Business Process Integration is a business-driven approachIntegration is a business-driven approach

Building a coalition that crosses functional Building a coalition that crosses functional and enterprise boundariesand enterprise boundaries

Utilizing technology that facilitates BPI Utilizing technology that facilitates BPI collaboration and deploymentcollaboration and deployment


Software Requirements:1Software Requirements:1

To be truly effective, a BPI product must To be truly effective, a BPI product must incorporate all manual and automated incorporate all manual and automated steps within processes being integratedsteps within processes being integrated

Triggering of processes or responses to Triggering of processes or responses to process-driven requests must be process-driven requests must be incorporated into the web environmentincorporated into the web environment

Should accommodate a dynamic level of Should accommodate a dynamic level of responsivenessresponsiveness


Software Requirements:2Software Requirements:2

Should accommodate internal and Should accommodate internal and external processes including those of external processes including those of supplier environments, distribution chains, supplier environments, distribution chains, and customer domainsand customer domains

Must be highly scalableMust be highly scalable

Must manage processes end-to-end, Must manage processes end-to-end, allowing a series of processes to function allowing a series of processes to function in an uninterrupted mannerin an uninterrupted manner


Characteristics of any SolutionCharacteristics of any Solution

Standard Solutions for:Standard Solutions for:– Aspects such as communication, Aspects such as communication,

authentication, authorizationauthentication, authorization

Custom Solutions for:Custom Solutions for:– Handling Special requestsHandling Special requests– Variations in decision makingVariations in decision making– Variations in processesVariations in processes– Handling implementation differencesHandling implementation differences


Consequences of customizationConsequences of customization

Customization drives up the costCustomization drives up the cost

Comfort-zone IT budgets are 5 to 7% of Comfort-zone IT budgets are 5 to 7% of sales revenuesales revenue

Large corporations have more revenues Large corporations have more revenues but also more establishments but also more establishments

Customization cost can easily exceed 5% Customization cost can easily exceed 5% of sales revenue per establishmentof sales revenue per establishment


EAI vs. B2BEAI vs. B2B

Business drivers for Enterprise Application Business drivers for Enterprise Application Integration (EAI) and B2B are differentIntegration (EAI) and B2B are different

EAI deals with EAI deals with internalinternal integration and integration and must be highly structured and controlledmust be highly structured and controlled

B2B deals with B2B deals with externalexternal integration and integration and must be open and fluidmust be open and fluid

Much confusion results when proposing Much confusion results when proposing EAI solutions for B2B problemsEAI solutions for B2B problems


EAI Business DriversEAI Business Drivers

Transaction focusedTransaction focused

End-to-end transaction completenessEnd-to-end transaction completeness

Reuse across systemsReuse across systems

Standardize and leverage objects/data Standardize and leverage objects/data across systemsacross systems

Flexibility to switch applicationsFlexibility to switch applications

Real-time communications and message Real-time communications and message deliverydelivery


Mfg

Mkting Fin

R&D

CRM SupplyChain

Spaghetti Integration

ERP

ERP

SupplyChain

Web

Legacy

EAI

B2B

Internet

Evolution of EAI Systems

Enterprise ResourcePlanning systems werebuilt without externalintegration in mind


ERP SystemsERP Systems

B2B integration implies seamless B2B integration implies seamless communication between existing systems communication between existing systems and databases (yours and your trading and databases (yours and your trading partners’)partners’)But packaged applications such as SAP, But packaged applications such as SAP, Oracle Financials, and PeopleSoft – for Oracle Financials, and PeopleSoft – for example – were designed NOT to access example – were designed NOT to access anything outside their proprietary anything outside their proprietary technologytechnology


B2B Business DriversB2B Business Drivers

Business Document focusedBusiness Document focused

End-to-end document completenessEnd-to-end document completeness

Reuse across trading partnersReuse across trading partners

Work with numerous data definitions and Work with numerous data definitions and standardsstandards

Flexibility to switch trading partnersFlexibility to switch trading partners

Communication and message delivery that Communication and message delivery that fit partners’ capabilitiesfit partners’ capabilities


Enterprise

Inter-Enterprise Systems

B2BXML

WebServices

RosettaNet

ebXMLBizTalk

Customers

Partners

Suppliers

EAI

B2B


Problems with Current B2B Problems with Current B2B SolutionsSolutions

Cost and Time needed for Cost and Time needed for customization very highcustomization very high

Automatic solutions are not geared to Automatic solutions are not geared to work with the existing manual solutionswork with the existing manual solutions

Hence the requirement of a large install Hence the requirement of a large install base is not being realizedbase is not being realized


What is XML?What is XML?

eXtensible Markup LanguageeXtensible Markup Language

Was never intended for information Was never intended for information exchange . . . exchange . . .

. . . But has now become a standard for . . . But has now become a standard for data interchangedata interchange

XML’s real power is not the technology but XML’s real power is not the technology but the fact that it is an accepted standardthe fact that it is an accepted standard


XML

Data

SalesSystem

LegacySystem

ERPSystem

Webapplications


Example XML specificationExample XML specification

<customer><customer>

<name><name>John DoeJohn Doe</name></name>

<customer_no><customer_no>125125</customer_no></customer_no>

<address><address>111 Main St111 Main St.</address>.</address>

<city><city>AnyvilleAnyville</city></city>

<zip><zip>1111111111</zip></zip>

</customer></customer>


What XML doesWhat XML does

Large chunks of information are Large chunks of information are consolidated into an XML documentconsolidated into an XML document

XML parsers extract data from XML XML parsers extract data from XML documentsdocuments

XML is a simple format that provides XML is a simple format that provides metadata and information contentmetadata and information content

Applications must be able to internalize Applications must be able to internalize and externalize XML informationand externalize XML information


XML’s ContributionXML’s Contribution

Facilitates the development of Facilitates the development of StandardsStandards

Provides the ability to write programs Provides the ability to write programs that process document content that process document content

However, this does not fully solve the However, this does not fully solve the B2B integration problemB2B integration problem


Trading Partners

IBMRFQ

GERFQ

XMLAPI-basedMiddleware

1

2

N

API callspre-existingfunctions at datasources

XML Documentcontains thespecificationof the RFQ

Middlewarecalls functionsfor processingthe data

But EVERY data processing function must be implemented at EVERY datasource

If there are N trading partners, each one’s RFQprocess must be implemented at N-1 data sources.

To support a single process change for ONE partner,N-1 implementations must change – a maintenance nightmare.

THE B2B PROBLEM

Data Sources


How is Data Accessed todayHow is Data Accessed today

By sending Requests (Using some distributed By sending Requests (Using some distributed computing method such as RMI, COM, or computing method such as RMI, COM, or CORBA)CORBA)Needs pre-determined Semantics for the Needs pre-determined Semantics for the Request, the Response, and the Process that Request, the Response, and the Process that generates the Responsegenerates the ResponseProcesses provide fixed functionalityProcesses provide fixed functionalityBoth Requests and Responses need Both Requests and Responses need customization to integrate into user-side customization to integrate into user-side systems, and the data-side systemssystems, and the data-side systems


Semantic Content of Request Semantic Content of Request and Responseand Response

Mostly implied by pre-determined SemanticsMostly implied by pre-determined Semantics

Requests do not have the expressive power to Requests do not have the expressive power to define dynamic requirementsdefine dynamic requirements

For the same information in the Request, and For the same information in the Request, and the same process, the content in the Response the same process, the content in the Response cannot be changed dynamically.cannot be changed dynamically.

XML helps automate processing of Requests XML helps automate processing of Requests and Responses, but cannot define the and Responses, but cannot define the computing that needs to be performedcomputing that needs to be performed


Semantics of Database ProcessSemantics of Database Process

Description of the Selection of the datasetDescription of the Selection of the dataset

Description of the operations on each element in Description of the operations on each element in the datasetthe dataset

For the same semantics, the code to select the For the same semantics, the code to select the dataset, and the code to perform the operations, dataset, and the code to perform the operations, change from system to systemchange from system to system

Therefore, customized code that performs the Therefore, customized code that performs the same actions is needed for each data sourcesame actions is needed for each data source


Current Approach to Current Approach to Collaborative EnablementCollaborative Enablement

Accommodation PhaseAccommodation Phase– Internal Requirement DefinitionsInternal Requirement Definitions– Collaborative Process DefinitionsCollaborative Process Definitions

Agreements PhaseAgreements Phase– Business Operations to be coveredBusiness Operations to be covered– Computer Processes to implementComputer Processes to implement– Documents to be exchangedDocuments to be exchanged


Problems with Current Problems with Current Approach:1Approach:1

Complicated Accommodation PhaseComplicated Accommodation Phase– Involves complex negotiations with Trading Involves complex negotiations with Trading

PartnersPartners– Each organization will try to:Each organization will try to:

Influence others to implement processes to allow Influence others to implement processes to allow their own Internal Requirements to be realizedtheir own Internal Requirements to be realized

Minimize their efforts in implementing the Minimize their efforts in implementing the functionality needed by external organizationsfunctionality needed by external organizations


Problems with Current Problems with Current Approach:2Approach:2

Compromise-prone Agreements PhaseCompromise-prone Agreements Phase– When the composition of the trading partners When the composition of the trading partners

changes, agreements need to be re-negotiatedchanges, agreements need to be re-negotiated– New agreements lead to complex maintenance issuesNew agreements lead to complex maintenance issues– Inherently not an ideal solution – compromises and Inherently not an ideal solution – compromises and

added (non-productive) work for all trading partnersadded (non-productive) work for all trading partners

All these act as impediments to Collaborative All these act as impediments to Collaborative CommerceCommerce


Realizing XML’s PotentialRealizing XML’s Potential

XML based Standards are just XML based Standards are just specifications – each system is expected specifications – each system is expected to provide the implementationto provide the implementationBut can the ‘How’ (i.e., implementation) of But can the ‘How’ (i.e., implementation) of the XML ‘What’ be the same on every the XML ‘What’ be the same on every system?system?Such an abstract Write-Once-Run-Such an abstract Write-Once-Run-Anywhere programming model is needed Anywhere programming model is needed to realize XML’s potential to realize XML’s potential


RosettaNetRosettaNet

Defines standard processes and interfacesDefines standard processes and interfaces

Develops common Partner Interface Develops common Partner Interface Processes (PIPs)Processes (PIPs)

Common agreement on “which processes Common agreement on “which processes do what and where”do what and where”

Focus is more on creating PIPs and less Focus is more on creating PIPs and less on any new technologyon any new technology


Business Process Modeling

Business Process Analysis

Partner Interface ProcessPurpose: provide e-Business InterfaceOutput: XML Docs + model + validation

Dictionaries ImplementationFramework

RosettaNet Development Process


Company A: Web Services Provider

RegistriesUDDI, ebXML

Company A

Company A publishesits service to a Registry

Company BCompany Bqueries the registry

Company B: Web Services Customer

If Company B determines that A’s service meets its requirement,it builds the interface necessary to connect its applications to A’s service.

Potential Limitation: Every company needs an interface for every webService that it wants to use.

UDDI: Universal Description andDiscovery of Information

ebXML: Electronic Business XML

WSDL: Web Services Description Language

Web Services


Technology Comparison

XMLStandard for Document ExchangeSpecification OrientedXML-parser helps understand requestData processing not done in documentAPI middleware calls predefined functionsFunctions must exist at data sourceDifficult to extend process functionality

RosettaNetStandards for common business processesSpecification OrientedPartner Interface ProcessesData Processing not doneImplementations needed at data sourcesDifficult to extend process functionality

BizTalkXML-based Document-centricBizTalk Server sends and Receives messagesBizTalk Framework defines BizTagsMicrosoft is driving forceNo adapters available for BizTalk Server

Web ServicesPublish-Discover-Bind paradigmUses UDDI, ebXML, WSDL, SOAPPrecise specification of service neededFunctionality extensible but interface implementations needed for every service


SummarySummaryXML not a panacea for B2B problemXML not a panacea for B2B problem

Business drivers and solution Business drivers and solution requirements for EAI and B2B are differentrequirements for EAI and B2B are different

All existing “solutions” are only partialAll existing “solutions” are only partial

Standardizing processes not the way to goStandardizing processes not the way to go

Systems should be allowed to be different Systems should be allowed to be different but yet made to look similar for B2B but yet made to look similar for B2B

Semantic Bridge needed on data sideSemantic Bridge needed on data side

E-Business and B2B Integration A Tutorial by Gurpur M. Prabhu.

Documents

prabhu slide

business messages

business rules

integration slide

nature of business integration

business integration

businessoriented focus

multiple business transactions