End to End Resource Planning Towards Realtime Value

End to End Resource Planning: Towards Real-time Value Click to edit Master title style. Chain Optimization n ANYU LEE

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

Change of business environment n business environment is tougher than ever: l l l n more demanding customers intense competition new regulation Globalization ongoing march of technology companies want to:

Change of business environment n companies want to: maximize their business results l l l n Revenues up profits up costs down Growth becomes critical

State of the enterprise n n n Operational Costs Consume IT Budgets l ~70% of IT budget spent on sustaining and running existing systems l Only ~30% on new capabilities l Enterprises typically want to spend ~45% on new capabilities Crisis of Complexity l No “green-field” development l New applications must integrate with existing heterogeneous “legacy” systems IT Must Deliver Business Agility l Support new business opportunities l Leverage new technologies

Changes in IT Architecture… n Business management pushes for better IT utilization and greater ROI l l n Merger and acquisition have become a fact of life l n n Re-Use of assets Integration of historically separate systems New systems must be developed with (current or future) heterogeneity in mind Internet everywhere has created a set of new business models

Shift to Service-Orientation n What is a "Service" ? l n Why? l l n A reusable business process or business function that can be accessed through the standard web technologies Business and Business processes drive organizations – not IT Better correlation with Business Implications l Re-factor existing systems extracting correct business services

Service Oriented Architecture Focus on exposing units of business logic as services. They are: n loosely coupled, n standards based, n message driven, n published and discoverable

Interoperability via SOA n n n Data, logic and infrastructure accessed by routing XML-based messages (Web Service) throughout Internet Location is meaningless Multiples Services suppliers Ubiquitous computing preserves and connects existing systems Using the Right Software Architecture brings exponential productivity gains

SOA in Action (example) Implemented Triggers aby a business set of services process

the next step of SOA n n n How to coordinate different services in business context? How to provide a better business logic for enterprises? How to route a business process automatically and intelligently? The answer is resource planning

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

EERP concept: resource planning n With SOA and open standard, we can now help enterprises to improve their profits and sustain the profits, we introduce: l n SORP: Service oriented resource planning SORP can optimize resources inside or outside of a enterprise, for example: l SO-SCM n l SO-CRM n l Optimize the resources of a enterprise and its suppliers. Optimize the resources of a enterprise and its sales/mareking partners or its customers. EERP: n End to end resource planning, optimize the resources along an specified value chain.

What does EERP do? What is it? n A new way to look at enterprise IT application l n Integration inside and outside of a enterprise border. A new software architecture and platform l l a collection of Web Services that perform various enterprise functions, data exchange, process integration, collaboration and other relevant work. A self-healing, intelligent, and reliable service choreograph platform (Soft. Grid)

Real-time Value Chain Optimization Optimize for time Business goal Optimize for profit Optimize for …… Real-time Value Chain Optimization Intelligent searching & scheduling Extended UDDI EERP platform Qo. S desc Real-time auditing & measuring SCM Services CRM Services ERP Services …… MRP II Services Service layer

Real-time Value Chain Optimization n When business goal contains more than one criteria: It become a question of Multiple Criteria Decision Making(MCDM) Can be solved by weight model or fuzzy methods, analytic hierarchy process and linear programming, etc.

EERP briefing How does it work? n Vendors base on EERP principle to develop next generation enterprise application; l l l n Saa. S for enterprise application Backend platform to support flexible service choreograph Service management Enterprises use EERP to manage all relevant resources to achieve specific operation objectives. l l l Value chain integration Dynamic decision support Integration with e. Commerce / online marketplace

Introduction to EERP is one of the most important practices of Service oriented resource planning. n EERP consulting services l n EERP toolkit l n Value chain decomposition, service identfication, service choreograph and integration. EERP implementation l n Help enterprises understand the operation objectives from 360 degree of their specific value chains. Different deployment strategies, could be either SOE or true SOE implementation with third party service integration. EERP QOS management l Model, protocol to precisely manage QOS along the value chain to achieve end to end QOS assurance.

EERP: the possible killer app on SOA vs. past technology l l n It directly maps business to the IT implementation, so it solves today’s enterprise’s big problems (fast changing world); It enables the enterprise IT application integrate with almost every partners’ services, and run on a much broad and heterogeneous network environment. EERP vs. past IT application l l It tells the whole story of the enterprise performance and operation. It ties enterprise operation with the market dynamics

EERP: manufacture(1/2) Reference implementation n A furniture manufacturer. l l l Value chain identification Service-lization: SCM, ERP, CPM (channal partner management), e. Marektplace (Alibaba, furniture. com. cn and many other relevant e. Commerce portals) Service choreograph guideline (direct sales, channel sales, rental instead of sales and so on. ) EERP decision support console Batch and then real time interaction with all operational systems

EERP: manufacture(2/2) Results: n Identify the key revenue / profit bottlenecks and reveal the dynamic pattern of those bottlenecks. n Demonstrate the revenue / profit strong correlation with market environment, even with the stock prices of certain key related companies. n Prove concept: the cost of manufacture is no longer a key problem for today’s manufacturers, instead the resources outside of the company command the revenue and profit. n Help company to completely change its business to furniture lease and customized furniture manufacture.

EERP: e. Government(1/2) Reference implementation n GSP (government service platform) l l 20 government processes selected Objectives identified as: fast throughput, tighter control, accuracy, policy impact and correlation with central government policy. 200+ e. Government applications are converted to Web. Services. Modified ESB to a GSP (SOAP + WSDL + BPEL)

EERP: e. Government(2/2) Early results: n Help government customer to understand the G-B, G-P dynamics. n Identify the bottleneck of policy implementation and rule adoption. n Identify which crowd has a better access to the government services. n Help innovation in the process reform and organization simplification.

EERP: consumers(1/2) Reference implementation n Best career planning service for college graduates l l l 10 career paths selected 300+ career develop related services identified (employee services, training services, marriage services, real estate agency, travel services…) UDDI setup for career related service management Drag/draw to define the career paths, and selection of personal objectives (key words: Fast path to rich, pleasant family life, entrepreneur, and so on). Could be a very good online personal career service portal.

EERP: consumers(2/2) Results: n Very sticky online service for students. n Now can compare different career paths for “the most efficient way” to achieve goals n Identified the college education importance is less than 10% for certain career objectives n Identified early marriages are vital for certain career objectives n Help government office to review the career training policy.

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution

EERP: Qo. S(1/9) Services are: n able to measure; n able to map to a business practice; n may consist of services; n able to test independently; n able to observe the state change n Security, access control

EERP: Qo. S(2/9) Fundamental of Qo. S: n Service must has business meaning l n Service implements business logic Service must be measurable; ——if you cannot measure it, you cannot manage it. n Use business factors to measure service

EERP: Qo. S(3/9) n n Service can be combined and complex Qo. S measurement in a recursive way

EERP: Qo. S(4/9) Service Grid SOA Web Service CORBA DCOM Computing grid Java/EJB Meta computing clustering Distributed object /component Distributed computing Parallel computing distributed system Internet

EERP: Qo. S(5/9) SOA as an application pattern: n loosely coupled Registry n dynamic binding Consumer Provider

EERP: Qo. S(6/9) Ubiquitous service Qo. S measurement and management n Stand-alone Qo. S management n Dynamic auditing n Dynamic data exchange with UDDI Exchange info Registry Au dit udit A Consumer Quality management center Provider

EERP: Qo. S(7/9) Two approaches for consumer to find a service that match its requirement n Look for service in Registry only n Look for service in Registry and Quality management center both(Qo. S on demand) Registry Quality Exchange info management center r 1 da we s n n ya er Qu Consumer e rib c s e d Registry 1 Qu Provider Extended service info(with Qo. S) ery an n da Consumer er w s Quality Exchange info management center Que swbeer n a d i ry an cr des 2 Provider Registry Info Qo. S Info

EERP: Qo. S(8/9) Quality index: n throughput time; n value range of a given parameter (for example, cost); n accuracy of a given parameter; n availability

EERP: Qo. S(9/9) Quality assessment can be multi-objective: Cost/time/accuracy/…… or any combination of them

EERP: Service management n n Service describe Service structure and re-structure Service auditing Service life-cycle management

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

EERP: Service granularity Three types of service according its semantic meaning: n Fine granularity service n Medium granularity service n Coarse granularity service

EERP: Service granularity n granularity effects service re-usability greatly Service coarse fine Re-use scale re-usability Re-use efficiency stability small low high low large high low high

EERP: Service granularity n Aim of Optimization To reduce un-stable factors within coarse granularity services as much as possible, utilize superiority of reuse coarse services, to improve reuser efficiency.

EERP: Service granularity n n n granularity: how to measure Amount of computation the service afford granularity can be calculated by the business process the service implements, namely, count of the code lines in the source code of the service. Generally it’s difficult to measure service granularity accurately.

EERP: Service granularity n Service optimization based on service reuse efficiency measurement

EERP in full life-cycle of infomationalization l requirement analysis l design l coding l testing l deploy l system run l maintenance l upgrading l invaliding • Standards • Prototype • Service n n n • Platform • Application n Low cost Short time extensibility configurable Easy to maintenance Dynamic adaptation

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

Standards to be researched on n n n n Qo. S assessment criteria hierarchy based on SOA Qo. S deployment standard based on SOA Qo. S integration standard based on SOA Service re-structure standard based on SOA Service auditing standard based on SOA EERP business process definition standard EERP business process quality assessment standard EERP business process auditing standard

Qo. S assessment criteria hierarchy based on SOA n Function: Quality of Service(Qo. S) is a critical technical problem in application of SOA. Assessment criteria hierarchy of Qo. S will guide the definition and optimization of service in SOA-based systems.

Qo. S assessment criteria hierarchy based on SOA Main content: n 1. Qo. S assessment criteria hierarchy based on SOA; n 2. Qo. S assessment criteria explained in detail; n 3. Method to decide weights of assessment criteria；

Qo. S deployment standard based on SOA n Function: To ensure services complete with quality that user demanded in SOA systems, Qo. S of services(and subservices of combined services) should be dynamically managed. Those business processes can satisfy users’ command will be selected and executed.

Qo. S deployment standard based on SOA Main content: n 1. Qo. S deployment patterns in SOA systems; n 2. Qo. S deployment methods with each deployment pattern;

Qo. S integration standard based on SOA n Function: In SOA systems, low-level services of business operation form high-level services gradually. During the integration process, how to ensure Qo. S of combined services.

Qo. S integration standard based on SOA Main content: n 1. Qo. S integration patterns in SOA systems; n 2. Qo. S integration methods with each integration pattern;

Service re-structure standard based on SOA n Function: SOA-based system consists of multiple level, multiple granularity services. Service granularity greatly effects reusability, reuse efficiency, and service management efficiency. This standard focuses on optimization and assessment methods of services through service re-structure.

Service re-structure standard based on SOA Main content: n 1. Service re-structure patterns in SOA systems; n 2. Service re-structure methods; n 3. Assessment of services after restructure;

Service auditing standard based on SOA n Function: SOA-based system consists of multiple level, multiple granularity services. This standard focuses on auditing methods of service quality through service restructure.

Service auditing standard based on SOA Main content: n Service quality auditing standard based on SOA;

EERP business process definition standard n Function: Business process definition form the fundamental of EERP systems’ design and implementation. This standard will put forward a uniform, consistent, integrateable description method, which is needed by EERP, to support requirement analysis, design, implementation and dynamically optimization.

EERP business process definition standard Main content: n 1. EERP business process definition based on SOA; n 2. EERP business process description methods;

EERP business process quality assessment standard n Function: Quality assessment is one the most important activity in design and implementation of EERP. This standard put forward quality assessment method for EERP systems, which will guide the building of EERP systems.

EERP business process quality assessment standard Main content: n 1. Quality assessment hierarchy of EERP business process; n 2. Quality assessment criteria of EERP business process explained in detail; n 3. Methods to decide weights of quality assessment criteria;

EERP business process auditing standard n Function: Business processes effects the assessment result of EERP system greatly. EERP business process auditing standard provides method to measure performance of EERP system.

EERP business process auditing standard Main content: n 1. EERP business process assessment hierarchy; n 2. EERP business process auditing methods;

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

EERP: Reference implementations(1/2) EERP portal End user Operation target selection Service management portal Service register Service publishing Maintain portal System admin Target value chain building Qo. S Service management platform (UDDI) Service segmenting EERP soft computing grid (BPEL 4 WS)

EERP: Reference implementations(2/2) Step-wise implementation n Scenario analysis, value chain building l n Analysis scenario in offline, batch-mode l n Aiming at the whole value chain operation Consummate related services step-by-step l n Decide all related services and operation mode Primary application, complex application, real-time business Integrate into operational system, form a dynamic whole scenario l Reflect effects of environment changing on business operation

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

EERP：top-down service design&deployment strategy Step 1 Business ontology definition Step 2 Business process discovery & definition Step 3 Service oriented analysis Step 4 Service oriented design Step 5 Service implementation Step 6 Service testing Step 7 deploy service to EERP platform

EERP：an agile service improvement strategy Step 1 Step 2 Top-down analysis Current stat/ Business model Business performance /Qo. S statistics Step 3 Service oriented analysis Step 4 Service oriented design Step 5 Service implementation Step 6 Service testing Step 7 deploy service to EERP platform Step 8 Current stat/Business model Implementation & deployment service Qo. S assessing /retrospecting

EERP：top-down business process orchestration strategy Step 1 Business ontology definition Step 2 Business goal Investigation/ definition Step 3 Service discovery Step 5 Service orchestration Step 4 Step 6 Qo. S deployment & calculation Service (business process) execution Step 7 execution Qo. S auditing Step 8 service Qo. S recording & assessment

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

EERP integration platform(1/3)

EERP integration platform(2/3)

EERP integration platform(3/3)

Outline n n n Challenges for enterprises l Change of business environment l Shift of SOA EERP concept EERP key issues l Qo. S l Service granularity l Standards to be researched on l Reference implementation l EERP design&deployment strategy EERP integration platform Chang. Feng Alliance's contribution on EERP

Chang. Feng Alliance’s contribution(1/3) n n n Organized numerous SOA discussion sessions among the 33 member companies in the past 2 years. Established the strategic partnership and cooperation with OASIS, the leading SOA technology standard organization with over 64 countries participated. I was successfully elected to be a member of TAB, the only Asian member ever in the TAB. Published the Chang. Feng SOA Strategy Whitepaper, developed a three year plan to lead the SOA advance and commercilization. Helped our member companies to acquire the first SOA related projects.

Chang. Feng Alliance’s contribution (2/3) n Chang. Feng alliance organized 4 working groups to address the standard issues: RM for EERP l n Design methodology for EERP l n Develop a suite of ROI analysis, system analysis, value chain identification and service choreography guideline and so on. QOS management for EERP l n Based on OASIS RM, propose a RM for SORP/EERP for specific industry verticals. Quality model, protocol and end to end Qo. S insurance. Best implementation practice for EERP l Standard test suite for service qualification, system test before online, and so on.

Chang. Feng Alliance’s contribution (3/3) n In next 3 years, Chang. Feng alliance will organize across the country: 5, 000 certified EERP webservice developers l n 50, 000 registered technical participants l n Contributed through IM, Blog, and email. UDDI service l n Open sources Test, publish, search, …. EERP portal with service integration support l Various industry vertical and consumer services.

Q&A