Enterprise-Service Oriented Architecture for Chemicals...Enterprise-Service Oriented Architecture...
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
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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
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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
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What services are available today? ES Workplace on SDN
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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
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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
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
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2
3
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