Enterprise-Service Oriented Architecture for Chemicals...Enterprise-Service Oriented Architecture...

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Enterprise-Service Oriented Architecture for Chemicals Leverage Enterprise SOA for Chemical Companies John Harrison Senior Solution Architect IBU Chemicals

Transcript of Enterprise-Service Oriented Architecture for Chemicals...Enterprise-Service Oriented Architecture...

Enterprise-Service Oriented Architecture for Chemicals

Leverage Enterprise SOA for Chemical Companies

John Harrison

Senior Solution Architect IBU Chemicals

Enterprise Services What is it?

Enterprise Services Community

A practical example – Ocean Carrier

Key Challenges for Business & IT in Chemicals

SAP's Solution

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Key Business Challenges in Chemicals

Merger/De-MergerSpin-Offs (Commodities, New products)

Product Portfolio Management

Increase speed to enter new marketsSupport of business decisions on a global level

Globalization/New Market Entry

Increase utilization of asset mixOptimize the supply chain

Operational costs Reduction

Short-dated resolving of regulatory issues (e.g. REACH (EU), SOX)

ComplianceRequirements

Reduce time to market for new ProductsLeverage the reuse of existing knowledge and assets

Product and Process Innovation

Improve Customer Profitability AnalysisSupport of controlling and planning of the operations

Profitability/ Margin Optimization

Differentiation and Business Innovationfor top line growth

Productivity and Efficiency

for bottom line growth

The Drive for Growth creates Continuous Change

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Consolidation & Standardization

of technologies

Compositionthat leverage existing investments

Key IT Challenges in Chemicals

System/Process Integration (R&D, Sales,…)/ Split up of systemsFlexibility for System Consolidation/ landscape harmonization

Product Portfolio Management

Short-dated implementation of reporting requirementsCollection, consolidation and deliver of data in different formats

ComplianceRequirements

Support of standards (e.g. supply chain collaboration, LIMS Integration)Access to MES/ Automation Layer

Operational Cost Reduction

Enable access to knowledge across departmentsSupport of complex Production/SCM Processes (Long running)

Product/Process Innovation

Support of Process Template Strategy by the system landscapeIncrease Security of Systems (e.g. IP Issues)

Globalization/New market entry

Improved customer-related analytical capabilitiesOptimize alignment of business goals with operational controlling

Profitability/ Margin Optimization

IT Needs Flexibility to Support Change

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Challenge: Interfacing Systems and People

Sales / Account Team Commercial Group Marketing Materials Sourcing

CompetitiveCompetitiveInputInput

Option Determination Option Determination

RFQ Screening RFQ Screening Create Quote Sheet Create Quote Sheet Team Setup Team Setup

RFQ toRFQ toSuppliersSuppliers

QuoteQuote

Customers Suppliers

Customer RFQ Customer RFQ

Finalization Finalization

Contract Manufacturer

Data Cleansing,Data Cleansing,Costing & PricingCosting & Pricing

StockStockCheckCheck

The main objective of "service enablement" is to (efficiently) free the business logic from the applications

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Definitions: What is a Service?

SERVICESare set of linked, repeatable business tasks.SOFTWARE SERVICESare self-contained, reusable software modules with well-defined interfaces and are independent of applications and the computing platforms on which they run.WEB SERVICESare self contained and self describing application functionalities that can be processed through open internet standards.ENTERPRISE SERVICESare choreographed web services that support a business scenario which reduces the implementation effort of web services for that scenario.

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Chemicals Solution Map

www.sap.com/solutions/businessmaps/composer

Key Challenges in Chemicals

SAPs Solution

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Business Process Platform:Integration & Collaboration

Service Transport: HTTPXML Messaging: SOAPService Description: WSDLService Discovery: UDDI

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SAP NetWeaverBusiness Process PlatformSAP NetWeaverBusiness Process Platform

Enterprise Services

Repository

Enterprise Services

Repository

SAP Bridges the Gap Between Business and IT

PlatformApplication components

PlatformApplication components

LegacySystemLegacySystem

3rdParty3rd

Party

Analytics

Composite Applications

SAPPartner

SAPPartner

SAPSRMSAPSRM

SAPERPSAPERP BuyerBuyer

Consolidation and Standardization for higher Productivity

Composition for differ-entiation while leveraging existing investments

Evolutionary adoption of Services and moving towards an open service-oriented architecture

Reusable application components for fast and efficient Solution compo-sition

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SAP NetWeaver - Composition Environment

Composite Application Framework

SAP OtherSources

CreateSoftware Components

.NET.NET ABAPABAP JavaJava

Enterprise ServicesRepository

Service Creation & Composition

ProcessComponents

Reuse

Included in next major releaseof NetWeaver

Various experiences & rendering technologiesUser

Developer/ Programmer

BI reports, analytics, MDMAdobe forms, CM, text search

Guided procedures

Visual Composer

Business Process Models

Work Center UI Framework (Portal, Web Dynpro)

ConstructInformation Composites

OrchestrateProcess Composites

Business Analyst/Process ExpertModel

UI Composites

Programs (Code)

WHAT ARE THE TOOLS FOR COMPOSITION?

Key Challenges in Chemicals

SAPs Solution

How does Enterprise SOA equal flexibility

How to start with Enterprise SOA?

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Idea: Use Open Web Standards

Service Transport: HTTPXML Messaging: SOAPService Description: WSDLService Discovery: UDDI

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Aspects of Enabling Enterprise Services

Service enabling consists of two aspects:From a From a technologytechnology perspective, the SAP system has to support perspective, the SAP system has to support communication based on the Web Services standards stackcommunication based on the Web Services standards stackFrom an From an applicationapplication perspective, the SAP system has to provide perspective, the SAP system has to provide meaningful services to prospective client applications

SAPApplication

meaningful services to prospective client applications

Application Services:ABAP

JavaWeb-based

StandardCustom

Web Services Technologies:XMLXSDWSDLSOAPBPEL4WS

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What are Enterprise Services ?

Enterprise Services are Web services that have an enterprise level business meaning. These are typically an aggregation of application (or web) services of lower granularity combined with simple business logic to support a step of a business process

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Example: “Order Create”

ReadCustomer

Master

CreateLine Item

ReadMaterialMaster

Read Material

Price

Get Currency Exchange Rates

AvailabilityCheck

A/R update

UpdateForecast

Read Customer

Quote

Read Shipping

Point

CreateProd Order

Check Capacity

MaterialSubstitution

CreateHeader

CreateLine Item

Detail

With just web services, coordination of the individual services is left up to implementation to support the business process

CheckCredit

ReadCustomer

MasterCreate

Line Item

Enterprise SOA ServiceOrder_Create

Enterprise SOA ServiceOrder_Create

ReadMaterialMaster

Read Material

Price

Get Currency Exchange Rates

AvailabilityCheck

A/R update

UpdateForecast

Read Customer

Quote

Read Shipping

Point

CreateProd Order

Check Capacity

MaterialSubstitution

CreateLine Item

Detail

CreateHeader

An Enterprise SOA service includes the business logic & coordination of the various web services & other Enterprise Services that make up the complete business process

CheckCredit

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Example: Enterprise SOA Service - Replacing a service

ReadCustomer

MasterCreate

Line Item

Enterprise SOA ServiceOrder_Create

Enterprise SOA ServiceOrder_Create

ReadMaterialMaster

Read Material

Price

Get Currency Exchange Rates

AvailabilityCheck

A/R update

UpdateForecast

Read Customer

Quote

Read Shipping

Point

CreateProd Order

Check Capacity

MaterialSubstitution

CreateLine Item

Detail

CreateHeader

Individual services can be replaced without disrupting the Enterprise Service Business Logic

CheckCredit

ExternalCheckCredit

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Example: Enterprise SOA Service – Reusability

Quotation Invoice

Standard Customer MgmtQuote to Order Process

Standard Customer MgmtQuote to Order Process

PaymentDelivery

Enterprise SOA ServiceOrder_Create

Enterprise SOA ServiceOrder_Create

Tailored Rush Order /Delivery Process

Tailored Rush Order /Delivery Process

EligibilityCheck Invoice PaymentDelivery

Custom BusinessProcess

An Enterprise SOA can be reused in multiple business scenarios

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What does that mean?

With Enterprise Services a business scenario is:Easier & Faster to buildOf Higher QualityEasier to Implement & OperateScalableUpgradeableReusable

With Enterprise Services 3rd Party Solutions are:Easier to installEasier to upgradeCheaper to operate over their life timeEasier to integrate into existing business processes

Without Enterprise Services, it will be difficult or impossible to integrate new solutions into the existing processes & landscape

Key Challenges in Chemicals

SAP’s Solution

Why ESA SOA?

How to start with Enterprise SOA?

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What services are available today? ES Workplace on SDN

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Enterprise Service Workplace

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SAP Discovery System for Enterprise SOA SDN

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HP SAP Discovery System for Enterprise SOA

www.hp.com/go/server/saphttp://

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How to get there: Enterprise Services Architecture Adoption Program

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap

Go Live Show the Value

ESA and SAP NetWeaver Vision Value SessionESA Opportunity WorkshopTCO Discovery Session

ESA Enabling Roadmap WorkshopESA Roadmap Workshop

Plan ServicesBuild ServicesRun Services

Continuous Operations and GovernanceESA / NetWeaver CommunityBecome an ESA leader in your industry

Comprehensive and scalable consulting program by SAP and partnersSeries of logical steps to simplify the journey toward ESA Ties process improvements with value assessments, application portfolio and technology lifecycle planningCustomized toward the specific situation and challengesCross-organizational approach driving alignment of business and IT

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Phased Path Towards an Integrated ESA World by addressing current value-adding topics

Business Driven

Process integration and user centricity

Shared servicesand out-tasking

Leve

rage

“bu

sine

sspl

atfo

rm”

for

flex

ibili

ty

Trading partnersintegration

Multi-channelCustomer interaction

Business PerformanceManagement

Enterprise Services

Repository

Enterprise Information Hub

Business Process Management

Demonstrate the business value

(3-6 months ROI)

Build the foundation(6-12 months ROI

increments)

Invest in “applistructure”for lower TCO

IT DrivenExplore the full

business potential(6-12 months ROI)

ValueValue

Process Efficiency

Process/BusinessModel Innovation

Process Flexibility

Commit to ESA blueprint

Enterprise Services What is it?

Enterprise Services Community

A practical example – Ocean Carrier

[email protected]

SAP Enterprise Services Community Overview

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Value Proposition of the Enterprise Service CommunityThe value of the Enterprise Services Community lies in its ability to directly impact the business requirements and technical architecture of the SAP platform by fostering targeted, business-driven feedback from the Community.

Customers will be able to create more cost-effective, interoperable, customizable and flexible business process solutions.

ISVswill be able to leverage the depth and breadth of SAP's platform, reducing development time, driving down integration barriers and freeing resources for innovation.

SIswill be able to reuse Enterprise Services shifting their focus from IT integration to business process integration.

Infrastructure providers

will be able to tap into SAP’s cross-industry platform infrastructure and industry-specific application suites to become more application-aware and adaptable to business processes.

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Enterprise Services Community

ES COMMUNITY

SAP

ENTERPRISESERVICES

REPOSITORY

Industry Value NetworksPowered by SAP

NetWeaver ASUG/DSAG Other

ENTERPRISESERVICESPROPOSAL

TechnologyPartners

ISVs

Customers

SAP

SIs

Definition Groups

Allows partners and customer to influence and define Enterprise Services

Customer and Partner Groups

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Enterprise Services Community Groups

Review Definition Groups (Modify before we build) Review Definition Groups are input and comment mechanisms for the services SAP has identified, giving SAP a robust process for receiving and taking advantage of ecosystem feedback.

Request Definition Groups (Make your unique requirements heard) Request Definition Groups can be industry and/or SAP applicationfocused. The Definition Groups can consist of customers and/or partners or any combination thereof. The output from Request Definition Groups can vary in granularity from being quite general descriptions to very concrete Enterprise Service specifications.

Advisory GroupsAdvisory Groups will give input and feedback regarding the Enterprise Services Community Process, methodologies and tools provided or required. Advisory Groups will be run in the same pattern as Definition Groups.

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Membership Benefits

Enterprise Services InventoryAccess to all Enterprise Service definitions that SAP and the community have created.Definition GroupsOpportunity to participate in Definition Groups to request and review Enterprise Services.Access to Beta Enterprise Services Access the betas of Enterprise Services throughout their implementation Enterprise Services RegistryEvaluation and Development Licenses for Enterprise Services and access to hosted Enterprise Service Implementations by SAPCertificationAbility to certify consuming Enterprise Services as “ES Ready” through SAP Test AdministratorCommercial LicenseCommercial license to ship products that consume Enterprise Services

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Community Participation

MembershipEvery company interested in becoming a Member will need to sign the Enterprise Services Community Membership Agreement.

AgreementThe Membership Agreement mainly consists of an NDA and the rights to evaluate SAP’s Enterprise Services Architecture. Additional Exhibits governing IP and licensing rights will be added for each Definition Group a Member participates in. The Evaluation of specific Enterprise Services and the development of consuming Enterprise Services also requires the addition of an Exhibit.

Agreement ProcessThe addition and updating of Exhibits will be made available through click-through licenses once the ESC if fully operational,

Annual FeeA nominal membership fee becomes due when joining the community.Customers are exempt from this fee

Enterprise Services What is it?

Enterprise Services Community

A practical example – Ocean Carrier

SAP SCM 5.0 Add-On Transportation ManagementOcean Carrier Booking & Visibility

Streamlining the Management of Ocean Shipments

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SAP’s Transportation Management Solution

Total R&D Investment (all industries)€ Millions

572

705

857910

1,020

1,172

951866

363

0

200

400

600

800

1000

1200

1997 1998 1999 2000 2001 2002 2003 2004 2005

A significant amount of SAP R&D Investment is benefiting the SCM Discipline:Transportation ManagementWarehouse ManagementSupply Chain Event ManagementSupply Chain CollaborationRFIDGlobal Trade ServicesBusiness IntelligenceCustomer Relationship ManagementMaster Data Management

Source: Gartner

SAP’s Transportation Management Applications to Help Companies React Profitably to Change Across Global Supply Chain Networks Through Adaptive and Automated ProcessesBERLIN, Germany - October 19, 2005 - SAP AG (NYSE: SAP) today announced it is gearing its comprehensive transportation management applications to help companies further optimize revenue across the operations that currently account for up to 60 percent of overall logistics spending. Building on its best-in-class supply chain applications and road map for adaptive business networks, SAP is embedding its existing transportation software with new capabilities enabling companies to sense and respond quickly and profitably to the fast pace of change in today’s competitive transportation environment….

SAP Charts New Frontiers in Transportation Management

SAP’s Transportation Management Applications to Help Companies React Profitably to Change Across Global Supply Chain Networks Through Adaptive and Automated ProcessesBERLIN, Germany - October 19, 2005 - SAP AG (NYSE: SAP) today announced it is gearing its comprehensive transportation management applications to help companies further optimize revenue across the operations that currently account for up to 60 percent of overall logistics spending. Building on its best-in-class supply chain applications and road map for adaptive business networks, SAP is embedding its existing transportation software with new capabilities enabling companies to sense and respond quickly and profitably to the fast pace of change in today’s competitive transportation environment….

SAP Charts New Frontiers in Transportation Management

"This upgrade makes SAP's transportation solution competitive tobest-of-breed solutions from vendors like Manugistics or

Manhattan Associates," -- Noha Tohamy, principal supply-chain analyst at Forrester Research

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SAP SCM 5.0 Add-on TM (Transportation Management)

Ramp-Up Program to support initial customer adoption

Ramp-UpTimeline

The Ocean Carrier Booking & Visibility solution is part of an Add-on for SCM 5.0 and will be introduced via a Ramp-Up programSeptember 25, 2006 – February 28, 2007

BackofficeSupport

Nomination process to select customersOn-going project monitoring to ensure customer successClose cooperation between consulting and backoffice

Ramp-UpContacts

North America: Ken Siebritz - [email protected], APA, LA: Bjoern Bernard – [email protected]

More info? SCM Ramp-Up Page on Service Marketplace

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SAP SCM 5.0 Add-on TM (Transportation Management)

Continued Growth and Focus on Transportation Processes

Business Processes

Manage trucks & trailers as well as compartments (1)Plan decreasing capacities in multi-stop environments (2)Ocean Carrier Booking & Visibility (3)

IndustriesChemical, Oil & Gas (liquid bulk transportation), CP, Retail (1) & (2)CP, Food, Hi-tech, Automotive, Mill Products,… (3)

any company that exports/imports internationally

Value & Benefits

Manage individual transportation assets more efficientlyStreamline paper-intensive booking process involving various partiesAvoid manual work & comply to government regulations

EnterpriseSOA

Manage ocean shipments in a fully enterprise SOA enabled scenarioCollaborate with ocean carriers through major booking platforms (INTTRA, Cargosmart) with the help of enterprise services

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SAP SCM 5.0 Add-on TM – Selected Benefits

Truck & Trailer Planning Compartment Planning

Make better use of individual transportation assets by avoiding down timesIncrease ability to plan, maintain and execute a private fleetModel drop & hook scenariosAvoid sending trailers to locations where it can’t be un-loaded (height or weight restrictions)

Plan to concurrently transport different liquids/products (e.g. grades of fuel)Opportunity to consolidate liquid bulk orders from different customers on one truck/trailerRestrict dangerous goods to certain compartments onlyModel incompatibilities between freight units in one compartmentAvoid exceeding legal weight limits

Planning for Decreasing Capacities Ocean Carrier Booking & Visibility

More granular planning approach for multi-customer-stop scenariosSegregate trailers into different compartments and consider decreasing capacities

Overcome process limitations in ERP (order sequence, sales order processing)Avoid necessity for custom development (booking logic based on sales orders e.g.)Reduce manual input of data (fax, phone, email)Global visibility of shipping status & compliance to government regulations (customs e.g.)Out-of-the-box connectivity to ocean carrier community by supporting standard processesClose the loop between transportation processes and order management processes

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Ocean Carrier Booking & Visibility –Streamlining the Management of Ocean Shipments

Pre-defined, limited business process in ERP Logistics Execution, requires always sales order purchase orders and (at least!) deliveries before transportation planning and booking. Early reservation of vessel capacity not possible today.Manual communication or custom development in exports and importsNo visibility, compliance and complex communication to multiple carriersManual input and user input errors cause avoidable costs for error correction

Booking of Ocean Vessel CapacityReserve capacity with a variety of ocean carriersPre-booking possibleReceive booking confirmation

Shipping InstructionsSupport for complex booking requirementsSend shipping details/instructions

Ocean Visibility and SecurityIntegrated business process monitoring with event managementGet status updates from carriers on container level to adhere to custom regulations

Value & Benefit

Customer Pain Points Business Process & Solution

Target Customer

Higher Business Productivityavoid manual input and user errors by automating capacity reservationsFaster carrier interaction and better service by carriers

Higher Business Flexibilityreserve capacity (container space on ocean carriers) long before a sales order exists for a customerplan own and/or other containers in a single transactioncomply to government regulations by providing real-time information on location of containers

Lower TCOavoid custom development to overcome process limitationstightly integrate standard industry platforms (INTTRA, Cargosmart) into the my SAP SCM environment

Industries:CP, Food, Hi-tech, Automotive, Mill Products, Retail,…

any R/3 or mySAP ERP customer that is using Logistics Execution System (LES) and is involved with international shipping requiring to reserve capacity with ocean carriers

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Industry Platforms(INTTRA, Cargosmart,..)

Technical Scope: Integration of Logistics Service Providers

SAP NetWeaver

mySAP ERP mySAP SCM

Transportation Planner

Ocean Carrier(LSP)

Sales Specialist/Procurement Specialist

BookingRequest

BookingConfirmation

Assign Shipments to Booking & Send

Shipping InstructionsTransportation

Execution

Ocean Carrier (LSP)

TransportationMonitoring

Transportation Planner

Logistic Service Providers (Ocean Carriers)

Enterprise Services EDIFact/ANSI/ISA Standard Interfaces

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Connectivity to multiple Ocean Carriers via one platform

Booking

Time

ERP SCM Carrier

Booking Confirm.

Shipping Instrctns

Shipment

Status

Status

Status

Status

Shipping Instrctns

Ocean Carrier Booking & Visibility –Streamlining the Management of Ocean Shipments

Booking of Ocean Vessel CapacityReserve capacity with a variety of ocean carriers

Pre-booking possible

Receive booking confirmation

Shipping InstructionsSupport for complex booking requirements

Send shipping details/instructions

Ocean Visibility and ComplianceIntegrated business process monitoring with event management

Get status updates from carriers on container level to adhere to custom regulations

Ocean Carrier Booking & VisibilitySales

Orders

Delivery

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SUMMARY

ESA enables innovation & productivity through flexibility and the support of open standards

Boost productivity through the adoption of best industry practices

Investigate ESA on SDN

Start your roadmap to productivity improvement by starting the ESA journey Today

Starting Point: SAP Solutions Powered by SAP NetWeaver

1

2

3

4

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