Creating competitive advantage with Integration...

Copyright© 2001 iWay Software 1

Russell ScherwinDirector

Creating competitive advantage with Integration Technology


Agenda and Key Themes

1. IT’s strategic organizational role.

2. IT’s maturation.

3. Making IT accessible and understandable.

4. Leading IT’s transition to a strategic business unit.


A Lesson From Calvin and Hobbes

service-orientedarchitecture


SOA/Integration – Back to basics

Organizational StrategyExploit market opportunities


Technology and SystemsAutomate processes (historical IT role)


ProcessesOrganize and optimize operations around strategy

ProcessesOrganize and optimize operations around strategy


Market driven company’s sustaincompetitive advantage





Organize and optimize operations around strategy

economyeconomy customerscustomers supplierssuppliers legallegal competitioncompetition

If systems are not

rganization’s ability

t

chang

ed

o

ProcessesOrganize and optimize operations around strategy fle

xible, o

e is inhibit

Processes


What’s driving change? How are we helping our customers?

internaltyeconomyeconomy distributiondistribution supplierssuppliers legallegal internal

•M&A•Enter new markets•Exit markets•New brands/•Products•Divestitures

•Single view of customer•CRM•Collaborative processes with distributors, wholesalers•Marketing Programs•New channels•Quality demands

•Collaborative Processes•Rapidly change (provision / de-provision)•Vendor Managed Inventory•E-Procurement

•Deregulation•Compliance•Local Regulations•Sarbanes Oxley•HIPAA•Audit

•Asset ManagementOptimize processes•Outsource processes•Optimize cost structure•Employee self service•Time to market•Actionable intelligence•Operational BI

ot flexible, organization’s a

b

ge is inhibited

ili

Good Architecture and Alignment implies that a small change to the business should entail a small change to the infrastructureIf systems are n

to

chan


Why is this a problem???

Existing infrastructure is the barrier

Becomes a bottleneck for fulfilling new requirementsToo much cost/time/risk.Requires expensive, high-demand, low-supply skill sets”Lack of reuse and interoperabilityReuse is impossibleInfrastructure has been built with no roadmap

All IT projects have significant interface requirements –they’re the costliest, riskiest and most complex and redundant


SOA puts a business interface on IT

IT is a maturing sub-industry. Over the past 40 years IT has

Automated a majority of their organization’s finite # of processesEmployed many applications, databases, platforms, middleware, etc…Formed habit of adopting new platform silos for new issues

Application Development is the lifeblood process of IT New App Dev projects are no longer about architecting new systems

As IT matures, new projects must take inventory of exiting functionality and data assets, before designing new systems, and reuse them in satisfying business requirements.

A ubiquitous framework for reusing functionality and data is thecritical ingredient for all application development projects, now and in the future.


Reusable Parts – industry’s maturation


What’s the relevance? Survey of CEO challenges

27%Product innovation25%Customer loyalty/retention23%Speed to market21%Tight cost control21%Improving productivity

28%Stimulating innovation, creativity & entrepreneurship32%Consistent execution of strategy by top management37%Sustained and steady top-line growth38%Profit growth39%Speed, flexibility and adaptability to change

PercentChallenge

Source: The Conference Board – CEO Challenge 2006


Basic definitions, what is …..?

… a service?

A repeatable business task – e.g., check

customer credit; open new account

… service orientation?

A way of integrating your business as linked

servicesand the outcomes that

they bring

… service oriented architecture (SOA)?

An IT architectural stylethat supports

service orientation

… a composite application?

A set of related & integrated services that

support a business process built on an SOA


Case study First – custom-coded, non-reusable interfaces (the wrong way)

400

IMS

JDE

SAPEDI/AS2

CSV/SMTP

XML/MQ

SOAP/HTTPBOD/FTP

SAP


SOA is Best Practices Approach to integrationReusable business services (the right way)

ReusableServices with

BusinessSemantics

XSD

EDI/AS2

CSV/SMTP

XML/MQ

SOAP/HTTP

BeefPO

FishPO

ACK XMLPOChicken PO

XSD

SAPEDIPO

Pork PO

XSD

400

IMS

JDE

Beef PO

XSD

Fish PO

XSD


SOA is Best Practices Approach to integrationReusable business services (the right way)

ReusableServices with

BusinessSemantics

XSD

EDI/AS2

CSV/SMTP

XML/MQ

SOAP/HTTP

Chicken PO

XSD

Pork PO

XSD

Fish PO

XSD

Beef PO

XSD

XMLPO EDI

ASN

SAPIDOCASN

Order shipping bus. event

400

IMS

JDE


Where’s the value (and what’s different)?Distributed reusable business services & events

Chicken PO

XSD

400

SAP

JDE

SAPEDI/AS2

CSV/SMTP

XML/MQ

Pork PO

XSD

Fish PO

XSD

XSDBeef PO

IMSBeef PO

SOAP/HTTP

Integration = any Service on any Channel


Time to market: ProductivityLeverage common skill-sets, rather than rare, expensive ones.Focus resources on business issues, rather than technical issuesDevelopment and maintenance cost reduced by 80%

Risk Mitigation (Bus. Agility): Interoperability and Flexibility

Alleviates technology demands of process changeFuture-proofs your infrastructure from changes in business and technology landscape

BPM/BPEL

MainframeDB2 CICS CICS IMSVSAM DB2/400 JDE

iSeriesSQL Svr .NET

WindowsOracle SAP

Unix

BusinessIntelligence

Plug-in

CompositeApps

J2EE/.NET

B2B

EDIAS2

Event Driven

Plug-in

Insert Sales Order

ServiceConsumers

SOA increases the strategic importance of IT

Reusable Business services

Check InventoryUpdate Customer

ExistingSystems


5 SOA Best Practices

Creating a flexible, sustainable, cost-effective business

architecture


1 - SOA starts with a business problem and is built incrementally, through high ROI projects

“The company’s (iWay Software’s) commitment to aggressively addressing our most complex integration challenges has made all the difference in how we have shaped our IT and business processes for organizational growth.”


2 – Mitigate risk and create business agility through interoperability, reuse and flexibility

iWay Service Manager

Web Service connectivity and data transformation

Universal connectivity and transformation

HTMLUDDI

WSDL HTTP

XML SOAP JMS

Web Services

UCCnetAquaLogicEDIINT BizTalk

JCA Essbase 3270 JMSSiebel EDIG@SSAP ESRI

Google VSAMOracle

CICS BaanTuxedo

PeopleSoftLawson DB2/400 ebXMLHL7AS1

5250

FIX

GJXML AS2 AS3

Web services alone, will not provide interoperability and reusability


3 – Increase time to market by replacing code with GUI based interfaces that increase ROI

The ability to tie together data from multiple sources and bring it forward in new ecommerce initiatives has enabled Novelis to realize the following benefits:

Development cost savings. ($4.4MM)Vendor cost savings from improved information management for negotiating prices. ($15MM Annually)Profit on additional revenues. ($1MM)

Nucleus Research independent study


4 – Align budgeted IT resources with the organization's mission

“I’ve always been impressed by how iWay could come in and do a proof-of-concept in a few hours, and I saw some of the more sophisticated, more expensive products struggle for days to put in place similar functionality.”Bo Foster – CIO of Novelis

“What took one consultant working seven days with iWay would have taken us three months with two developers”

Jeff Murphy, CIO - MHC Truck


4.5 – Incorporate ongoing interface maintenance into all project’s cost basis

“iWay mitigated our risk while giving us a clearly defined TCO. While I know what the projects development costs are today, With iWay, I know what they will be tomorrow”

CIO, Large Canadian Utility


5 – Visualize information, making it actionable by the right resources at the right time

"It use to take 15 minutes for a dealer to look up the location of a part while a customer waited. It took searching 4 systems and manual writing between the systems. Now it takes 3 seconds and they won’t walk out the store. That is the magnitude of change you can bring to your organization with iWay.“


Rich Integration Heritage

EAI, SOAEAI, SOA

FOCUS

MainframeDatabases

Mini & otherDatabases

EDA/SQLEDA/SQL

Reporting ServerServerBI

Reporting Client / Client / BIBI

BI

1975 1980 1985 1990 1995 2000 2005


iWay SOA Middleware SuiteA complete offering

DB2 PS SAP Siebeli2

Linux

Oracle CRM

Windows

Mainframe

DB2 CICS CICS IMSVSAMDB2400 JDE

iSeries

Oracle SAP

Unix

AIXApplicationLayer

ServiceLayer

iWay Adapter Framework: Service Enablement of 300+ System Types

ServiceMonitor

Business Service Provider

PolicyManager

iWay Service Manager: ESB for Service Creation, Transformation, etc.

Graphical WorkbenchApplication

Explorer Service

Designer Transformer PartnerDesigner

ServiceConsumption

BPM/BPEL Portals

Plug-in

AppServers

JCA

B2B(any document and protocol)

XMLAS2

EAI Tools

Plug-in


Explaining SOA to IT’s customers4 Executive Realizations

1. Your organization depends on IT for creating competitive advantage and responding to market conditions.

2. IT is a maturing sub-industry. Rapid Reuse is the critical success factor, as it was for vehicles and guns.

3. You can not solve a problem of complex, large, proprietary technology stacks, by putting another large, un-interoperable stack in the middle. Interoperability mitigates the risk of change.

4. IT requires an understandable business interface on top of systems complexity, so that it can “service” the business.


Does your business use IT as a competitive weapon?

“The ability to leverage an existing IT application that generates cost savings & efficiency as a platform to create a new strategic application is at the heart of the IT value proposition.”

- Business Strategy Textbook

[email protected]


Thank You


How do our customers benefit?

CEO + LOB Executives accelerate strategy executionRespond faster to changing market conditions.Create and sustain competitive advantageDecrease time to market for new initiativesIsolates business decisions from technology constraints

CFO and Process OwnersDecrease cost and risk associated with the IT project portfolioMakes IT’s cost structure more understandable and predictableMakes business processes and costs more understandable

CIO and the IT function become more strategicGets IT out of the business of managing non-value complexityMakes IT more useable and breaks down technology silosAligns IT resources with business goalsFrees expensive resources to work on tasks that the business considers valuableAccelerate Application Development (Integration) projects by up to 80%


NYC Dilemma

BAM & BI Tools

Portals Custom Applications

Customers, Partners, Vendors &

SuppliersIT Tools, App

Servers, Brokers

ODBC & JDBCWS/AS2/FTP Native API’sIBM Broker Plug-Ins .NET & J2EE

Example Connection

Points to The

Enterprise

Things That Need Data

Integration Conduit ?

Web Services: XML and HTTPHand Coded Interfaces = Cost/Time/Risk

XML Emulation Transactions Applications DataTouchpoint

XML

Universal Adapter FrameworkOpen Transport and ESB Interoperability Layer

Mitigates the risk of changing business and technology environments


Your team’s view of integration

SAPNetWeaver

SAPNetWeaver

BEAWebLogic

BEAWebLogic

iWay ESB + Interoperability Layer (JCA, SMTP, MQ, Plug-ins,…)

iWay SOA MiddlewareiWay Universal Adapter Suite (300+ Code Eliminating Adapters)

Code Minimization = Lower Fixed Bids +

Higher Level Engagements

Reuse + Interoperability =Risk Mitigation & Scale Economies

iWay Inside iWay Inside iWay Inside iWay Inside iWay Inside

Microsoft.NET

Microsoft.NET

IBMWebSphere

IBMWebSphere

OracleFusionOracleFusion

B2B

Documents Emulation Transactions Processes Applications Data


Phase 1: Starting With SAP

Proprietary Interfaces:IDoc, BAPI, RFC

SAP

Benelux Germany Spain Portugal Italy BW


Infrastructure with iWay Added

iWay SOA Framework

Standard Interfaces: XML

SAP



Phase 1 : Warehouse changes

Int + ext Warehouses

iWay SOA Framework

Standard Interfaces: XML

SAP


IDoc

Flat

EDI

IDocXML

XML


Infrastructure with iWay AddedPhase 2: IBM Procurement

Int + ext Warehouse apps

iWay SOA Framework

XML

SAP


IDocXML

FTP

XMLCSV

IBM

CSV


Infrastructure with iWay AddedPhase 3: integration new division

iWay SOA Framework

SAP


XML

IDoc

MBFXML

IDoc

FTP

Int + ext Warehouse appsJDE

IBM


Phase 4

iWay SOA Framework

UK/FranceLegacy

USOracle

SAP


MBF

XML ORA

SFTP

Int + ext Warehouse appsManugis-

tics JDE

IBM



UK/FranceLegacy

SAP

Benelux Germany Spain Portugal Italy BWSFTP


ticsUS

OracleJDE

IBM



UK/FranceLegacy

WebSvcs

SAP

Benelux Germany Spain Portugal Italy BWSFTP

HTTP


ticsUS

OracleCustomer JDE

IBM



UK/FranceLegacy

SAP


WebSvcs

IBMB2BOther

SFTPAS2Etc.


ticsUS

OracleCustomer JDE



DB2DB DW ORA

Manugis-tics

LCIJDE

UK/FranceLegacy

USOracle

Datawarehouse andEnterprise Information Integration

SAP


WebSvcs

IBMB2BOther

SFTPAS2Etc.

Int + ext Warehouse appsCustomer



DB2DB DW ORA

UK/FranceLegacy

Services, Google, Process Management, Transformation, RoutingA Framework for Future Integration and App Dev Projects

SAP

Benelux Germany Spain Portugal Italy BWIBMB2BOther

SFTPAS2Etc.


ticsUS

OracleCustomer JDE

Creating competitive advantage with Integration...

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