Best Practices in Enterprise SOA: Customer Insights and ...
Transcript of Best Practices in Enterprise SOA: Customer Insights and ...
Best Practices in Enterprise SOA: Customer Insights and ExperiencesChristian Hastedt-MarckwardtDirector Solution Marketing, SAP AGRudolf HoisIndustry Solution Management, SAP AG
Customers realizing Enterprise SOA Benefits
Enterprise SOA Governance
Governance Adoption & Experiences
Summary
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 3
Nothing is more powerful than an idea
whose time has come.
Victor Hugo
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 4
Customers Executing on Business Strategies and Initiatives
Openness Efficiency TransparencyAgility
ITB
usin
ess
Risk Mitigation ReliabilityFlexibility
Today’s architecture
Delete fromdatabase
Rollbackinventory
CancelShipment
CancelInvoicingAdjust
Planning
NotifySuppliers
SendNotification
Order to Cash
CancelOrder
Target architecture
Enterprise SOAEnabler of Change
Merger &acquisitions
Innovation for differentiation
Managing growth & value chain
collaboration
…
Cost reduction &Cash flow improvement
…Customer-centricity
Process improvement & automation
…
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 5
AR Clerk Cash ManagerCustomer
Invoice Review Authorize Pay Settle
Analyze
Enterprise SOA Enables a Shorter Invoice-Cash Cycle
Enabling a New Business Model GISA GmbH
Being Fit for Manageable GrowthHighly competitive marketStrong growth strategy until 2011Current process of invoice management is not adjusted to support this growth
Shorter Invoice-Cash Cycle Reduce days of sales outstanding (DSO) and improved liquidityProcess efficiency in invoice processingImprove customer service quality
Enterprise SOA Value DeliveredRapid implementation (eight weeks) built on SAP enterprise services for electronic bill presentment and payment and composition of GISA’s Web servicesSaved process cost through closer customer involvement and streamlined process Shorter invoice-cash cycle by improved customer services (Access to relevant info)Flexibility to integrate other services, third-party systems and to enhance the process
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 6
ConstituenciesMinistry
Harbor Entry
Crew Permit
...
Change in Public SectorDecreasing budgets require optimized resource allocation and usagePublic pressure to increase responsiveness to business and citizensAgility to adopt changing priorities
Self-Services for PermitsResponsiveness to citizens (e.g., ship captains gets permits faster)Scalable and adaptable process across other permit typesMore capabilities for budget allocation to increase overall service
Enterprise SOA Value DeliveredRapid transformation and reuse of processes and services (e.g., crew permit, harbor entry license, “any” permit)Automated process eliminates errors and shorten the response cyclesEnd-to-end process integration (e.g., financials) on the same platform allows to scale the usage of self-services to a significant extent (e.g., 30,000 permits/year to grow up to 200,000 permits/year
Responsive End-to-End Citizen Self-Service Ministry of Transportation and Water Management, PS
Enterprise SOA Enables Higher Responsiveness with
Self-Services
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 7
360°View
360°View
360°View
Enterprise SOA Enables a 360º Customer View
Standard Bank South Africa
Change in BankingRetail bank customer mix is more demanding while less loyalRevenue growth only by customer-oriented offerings
Enterprise SOA Value DeliveredImproved customer management (e.g., cross-selling, loyalty management through 360º view on customers)Reduced processes complexity by referring only to one central source of customer data –“one version of truth”Increased stability, adaptiveness, and control in changing banking processes
Standard Bank Is Making the DifferenceShift from a product focus to a customer centric strategyHarmonizing the needs of the customersLong-term customer relationships
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 8
Collaboration along the Value Chain Profine (Mill Products)
Change in Mill ProductsCompetitive pressure from rising markets Mergers & acquisitions multi-brand/single-channel requirementLow customer retention
Multi-Brand Supply Chain and Sales Integration
Increased deal win-rateEnhanced customer loyaltyReduced sales cycles and cost of sales for standard products
Enterprise SOA Enables Multi-Brand/Single-Channel Approach and
Extension to Supply Chain
Enterprise SOA Value DeliveredFaster time to value – implementation in less than 6 monthsFast and simple order creation, complete real-time information, and full transparency along the processesTight integration along value chain with logistics partners and wholesalers
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 9
Out-tasked (optional)
Services
3rd party devices
devices
Asset Lifecycle Mgmt
Customer
Enterprise SOA Enables Extension of the Value Chain
From Product Vendor to Solution ProviderEndress + Hauser (IM&C Industry)
Change in IM&CProduct commoditizationIP and parts piracy threatDecreased customer loyalty in the industry
Enterprise SOA Value DeliveredW@M – Web-enabled asset management of E+H and third-party devicesKeystone of E+H Strategy 2011+ to become a true solution provider~20% internal cost reduction for interface development through standardized architecture Flexible deployment options – out-tasked, customer portal, SAP® composite application
Aftermarket Service OpportunityIncrease customer loyaltyNew revenue streamsInnovative solution offering
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 10
Enterprise SOA Enables Faster Consolidation of Operations
Valero
Acquired Company
…
Bringing Acquisitions Online Faster Valero Energy (Oil and Gas)
Change in Oil and GasInvestment need in infrastructure to meet rapid growth objectivesMargin opportunity and risk due to market volatility
Shorten Acquisition CyclesFaster growth and value chain presence by mergers and acquisitionsMinimize business disruption and cost in post-merger activitiesRequirement: Shorten post-merger integration cycles for a $4 - 5 billion business from typical 12 - 24 months down to 3 months
Enterprise SOA Value DeliveredFlexibility and speed in making changes to business processes – for example, customers to obtain account information, terminal price information Business optimization and risk mitigation: accurate real-time commercial, financial, and profitability data across the value chainSystem reliability: simplification of interfaces by elimination of duplicate master data
Customers realizing Enterprise SOA Benefits
Enterprise SOA Governance
Governance Adoption & Experiences
Summary
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 12
Why SOA Governance
“In 2006, lack of working governance mechanisms in midsize to large (fewer than 50 services), post-pilot SOA projects will be the most-common reason for project failure (0.8 probability).”
“However, through 2010, the biggest barriers to SOA adoption will be non-technical issues related to inadequate governance, lack of clear value metrics, poorly defined requirements and scope, and insufficient business involvement in project prioritization and service identification. SOA governance isn’t an option — it’s an imperative.”
Paolo Malinverno, et al., Gartner, 2006
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 13
Enterprise SOA Governance Safeguard the Enterprise SOA Adoption
BusinessStrategy
Solution Planning& Operations
ITStrategy
Governance
“Governance refers to the processes that an enterprise puts in place to ensure that things are done right, where ‘right’ means in accordance with best practices, architectural principles, governmental regulations, laws, and other determining factors.SOA governance refers to the processes used to govern adoption and implementation of SOA”- Anne Thomas Manes – Burton Group -
Realizing Enterprise SOA Benefits Mitigating Business Risks
Best Practices Ensuring Re-UseAligned Change Management
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 14
Enterprise SOA Governance Safeguard the Enterprise SOA Adoption
CommunityManaging Governance
Design & Modeling MethodologyToolset & Life-Cycle Management
Service DesignPIC 0 PIC 1 GDT-
PIC PIC 3 In ESRepos.
Raw design
Decision on service cut
GDT PIC review
Final design
Imple-mentation
Organi-zation
Skill Sets Proce-dures
Governance
Product CDG
Outward CDGCAG
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 15
Readiness – Planning and Realization Services
IT StrategyRealization
Service
Enterprise SOAReference Architecture
Enterprise Services-Oriented
Modeling
SAP Business Strategy for Enterprise
SOAEnterprise SOA Value
Assessment
Enterprise SOA
Road Map
Enterprise SOA Planning Services Enterprise SOA Realization Services
Enterprise SOA Business
ProcessInnovation
Enterprise SOAPulse Check
SAPOrganizationalPlanning andGovernance
for Enterprise SOA Enterprise SOA
Implementation/PoC
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 16
Organizational Planning & Governance for Enterprise SOA
Objective of the service is to align the customer’s organization and governance processes and structure to its enterprise SOA strategy.
Enterprise SOA Center of
Excellence
… … …
… … …… …
… … ……
Enterprise SOA-aligned processes,
including governance
Enterprise SOA-aligned skill
portfolio
1. CM* starting point (CM* analysis)2. Definition of CM* goals3. Definition of interest groups4. …
Change management
plan
Transformation program
Ensure/safeguard the realization of expected benefits of an enterprise SOA strategy.
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 17
Enterprise Services Repository – ESRLifecycle Support of SOA-Based Applications
Analyzes business requirementsIdentify needed business objects, services, and viewsDiscover available enterprise services in ESR for reuseIdentify missing services for new business logic
Design and model business objects (BOs)Implement new business logicModel and build UIsCreate new services reusing existing assets and publish to ESR
Compose views by reusing implemented services and BOsCompose and orchestrate services and views to form new business process
Manage change and maintain version (governance)Monitor service execution (e.g., performance, availability, process progress, events)
Package and deploy application Configure runtime (adapt to IT landscape)Test and validate applicationExecute application
Manageability along all phases of the life cycle
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 18
Run-Time Governance via AmberPoint
Visibility into and control of heterogeneous service networks, including Java and ABAP services running on SAP NetWeaver®
SAP Process Integration
OtherService
OtherService
SAP NetWeaverPortal
SAPJ2EE
SAPABAP
SAPJ2EE
Development collaboration agreement (DCA) in place between the two companies
Out-of-the-box management capabilities for Java and ABAP Web services on SAP NetWeaver
Discover all SAP NetWeaver services (including ABAP) dynamicallyDiscover “rogue” services that might compromise system integrityManage service levelsManage errors and exceptions
Fully integrated with SAP NetWeaver PortalProvides unified view of events, warnings, runtime data, etc. from the AmberPoint management system
Agent is available today from AmberPoint
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 19
Design-Time Governance Built-In
ESR: The Enterprise Services Repository is the central repository in which service interfaces and enterprise services are modelled and the corresponding metadata is stored.
ES RepositoryDefinition of processes and servicesService metadataCentral modeling and design environment
Services RegistryYellow pages of servicesDeployment information (i.e.,
endpoint)Services managementEase of consumption: browse,
discover, and use services.
Enterprise Services
Repository
Services Registry
Governance Relevance:Which services are modeled
or implemented in the landscape?
Which services can be called up in the landscape?
Where should the respective service endpoints be
published?
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 20
Enterprise Services Repository & Model Entities
Process Components
Global Data Types
BPEL Processes
Integration Scenarios
Service Interfaces
Interface Mapping
Specification & Governance
Design
Cross component integration
Evolution from integration repository
ESR – central repository for services, process components, and business objects
Open standards
Includes registry –yellow pages
Enabled central governance
Reuse
Transparency
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 21
Partners CustomersSAP
SAP and Non-SAP Business
Functionality
Business Process Platform
Composites Applications
??
?? ?
? ???
Customer Expectations:
1. Understand the SAP SOA methodology
2. What does SAP recommend around SOA methodologies?
Service Enablement: SAP Customers View
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 22
Service Enablement: SAP View
Partners CustomersSAP
SAP Business
Functionality
Business Process Platform
Composites Applications
SAP Methodology
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 23
BPe
XEn
terp
rise
arch
itect
Select technology
Classification and
registering
Analyze process with business focus
Imaginer solution
Analyze solution Feasibility,
components, landscape
Preliminary plan
Approval
New business process request
Bus
ines
sun
it
Solution proposal
Portfolio Decision
Value-driven technology selection!
Other
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 24
BPe
XEn
terp
rise
arch
itect
New services
Service specification
Analyze process with repository
content/functional view
Analyze process with repository
content/technical view
Preliminary plan
Repositoryfit/gap
Bus
ines
sun
it
Solution proposal
Services Portfolio decision
Enterprise SOA selected!
Solution proposal
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 25
Service cut Raw design GDT Final designEnter in ES
RepositoryImplementation
Sharing our Experience, Methodologies, and Dictionary with Customers and Partners
Global Data Types (GDT)
Service Definition Process
Architectural Guidelines& Standards Semantics/Taxonomy/Patterns
Global Data Type (SAP )
Core Data Type (CCTS )
Primitive Data Type (XSD )
11 ..*
11 ..*
1 ..*1
Iterativefeedback andimprovement
Value Delivered
Design
1. Highly reduced complexity establishing a learnable entity as a basis for new roles (e.g., repository keeper, composer)
2. Preparation for model-driven composition based on reliable interface behavior3. Foundation for customer-specific governance4. High-quality documentation based on models
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 26
How ES Community Fits in the Bigger Picture
Enterprise Service Definitions
Interface schemaService operationOther
Enterprise SOA Specifications
ES definitionsConnection protocolOther
SAP buildLicense to third party to buildContribute to industry forumsOther
SOA Best PracticesWhite paperImplementation guidelinesOther
Product CDG
Outward CDG
CAG
Customers realizing Enterprise SOA Benefits
Enterprise SOA Governance
Governance Adoption & Experiences
Summary
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 28
Adopting Enterprise SOA Governance
ExplorationIndividual projects,Basic design principles,Manual service portfolio management,Leveraging community for information
ConsolidationIncubators attached to projects,Modeling of services,Design-time automation,Articulating requirements
IntensifyEstablish new roles & tasks,Service harmonization process,Run-time automation,Participate in discussion groups
Strategically DeployedGovernance board,Benchmarking against best practices,Model-driven composition,Showing best practices
Step-wise adoption of enterprise SOA and its governance
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 29
Customer Example: SOA Congress Presentation
Report on SOA Adoption Early adopter of SOAAnalysis of 01/2003 – 08/2006Bespoke services development
Enterprise SOA Adoption KPIs# projects 58# business processes 72 (reuse 2,1)# integration processes 147# services 256 (reuse 2,4)# service utilizations 610
Adoption PhasesConquer & Pilot (1 year)Consolidation (2 month)Intensify (3 month)Re-use (ever after)
Customer ProfileGerman customerIndustry: Fabricated metal
Revenue 2004/2005 ~ €1,600 millionEmployees ~6000
Re-use of services30% not reused40% medium reuse30% high reuse up to 60Reuse increases greatly over time“Bright eyes” after 6 month in reuse phase
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 30
Conquer & Pilot (in 2003, duration 1 year)
- Provisioning of infrastructure
- Limited research and foundational work due to budget restrictions
- Prototypes with focus on quick wins
- Sponsoring of early projects
Customer Example: SOA Congress Presentation
Intensify (3 month)– Roll out new methodology
– Usage of new methodology
– Refinement based on learning
Reuse (since)– Projects are becoming successful quickly and follow standardized process
– Keep the system stable as long as possible (safeguard investments)
– Reuse starts to pay-off and speeds up innovation
– Competence center is involved in many projects
Consolidation (2 month)– Consolidate lessons learned
– Introduction of sable basis
– Definition of roles, processes, methodology
– Decision on governance model
– Decision on documentation
Life Cycle of SOA Adoption
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 31
Customer Example: SOA Congress Presentation
Accept initial investments for providing high-quality services
Utilize a repository
Establish a methodology
It’s about people
People need to understand
People need to adhere to the rules of the game
Focus on documentation
Quality of documentation needs to be higher
Availability
Actuality
To Achieve Reuse
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 32
Enterprise SOA Enables Faster Consolidation of Operations
Valero
Acquired Company
…
Bringing Acquisitions Online Faster Valero Energy (Oil and Gas)
Change in Oil and GasInvestment need in infrastructure to meet rapid growth objectivesMargin opportunity and risk due to market volatility
Shorten Acquisition CyclesFaster growth and value chain presence by mergers and acquisitionsMinimize business disruption and cost in post merger activitiesRequirement: Shorten post merger integration cycles for a $4 - 5 billion business from typical 12 - 24 months down to 3 months
Enterprise SOA Value DeliveredFlexibility and speed in making changes to business processes – for example, customers to obtain account information, terminal price information Business optimization and risk mitigation: accurate real-time commercial, financial, and profitability data across the value chainSystem reliability: simplification of interfaces by elimination of duplicate master data
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 33
AR Clerk Cash ManagerCustomer
Invoice Review Authorize Pay Settle
Analyze
Enterprise SOA Enables a Shorter Invoice-Cash Cycle
Enabling a New Business Model GISA GmbH
Being Fit for Manageable GrowthHighly competitive marketStrong growth strategy until 2011Current process of invoice management is not adjusted to support this growth
Shorter Invoice-Cash Cycle Reduce days of sales outstanding (DSO) and improved liquidityProcess efficiency in invoice processingImprove customer service quality
Enterprise SOA Value DeliveredRapid implementation (8 weeks) built on SAP enterprise services for electronic bill presentment and payment and composition of GISA’s Web servicesSaved process cost through closer customer involvement and streamlined process Shorter invoice-cash cycle by improved customer services (access to relevant info)Flexibility to integrate other services and third-party systems and to enhance the process
Customers realizing Enterprise SOA Benefits
Enterprise SOA Governance
Governance Adoption & Experiences
Summary
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 35
Key Learning from Customer Examples
The level of reuse determines financial success of SOA
Average reuse of 2,4 (depends on individual customer) is sufficient for ROI
This is because consumption of services is relatively cheap and pays off for initial investments (provisioning and learning)
This means consuming delivered services will pay off much sooner, as only learning has to be returned
A consistent and mandatory methodology is required to foster reuse
Clear concepts need to be put in place and to be kept stable to safeguard investments
Higher focus on documentation
Governance is required to ensure the methodology
To achieve value with SOA
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 36
Key Learning from Customer Examples
New skills and roles arise
Aligning people, processes, tools, design methodology, and organization
Architects as a stronghold of governance
New tools to be learned (models as a basis)
Do not implement the “latest and greatest” idea in individual projects to protect the greater total; collect them for the next version of the methodology
Governance needs to start with portfolio decisions
Clear identification of where enterprise SOA makes sense
Apply governance across the stack
Governance is an imperative for any successful enterprise SOA adoption
Reuse does not just happen. Reuse has to be planned.
To achieve value with SOA
© SAP AG 2007, SAPPHIRE / 1956 / Christian Hastedt-Marckwardt & Rudolf Hois / 37
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