PartnerPartner Selection in E Selection in End to End Resource nd to End Resource PlanningPlanning: :

An SOA and Data Mining Based An SOA and Data Mining Based ApproachApproach

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MIN NI, PHD

Post-doctor research scientist

Digital China Post-doctor station

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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Changing of business environment

Business environment is tougher Rapid changing of market landscape Globalization

Companies want to: maximize their business results

Revenues up profits up costs down

Sustaining profit growth becomes critical

State of the enterprise

Crisis of Complexity No “green-field” development New applications must integrate with

existing heterogeneous “legacy” systems

IT Must Deliver Business Agility Support new business opportunities Leverage new technologies

Changes in IT Architecture… Business management pushes for better IT

utilization and greater ROI Re-Use of IT assets, integration of B2X and ERP.

Merger and acquisition have become a fact of life Integration of historically separate systems across

enterprise borders New systems must be developed with (current or

future) heterogeneity in mind Results driven.

Internet everywhere has created a set of new business models

Integration anywhere and anytime is possible.

Interoperability via SOA

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)

PurchasePurchase

E-commerceE-commerceportalportal

CRM CRM

Fulfillment servicesFulfillment services

Authentication Authentication and and authorization authorization servicesservices

Credit authorizationCredit authorization

Billing servicesBilling services

Ack/ReceiptAck/Receipt

Triggers a Triggers a business processbusiness processImplemented by a Implemented by a

set of servicesset of services

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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SOA has proven

Data level: Lower cost, and more efficient way to

integrate application across the enterprises. Application level

Development with Lower entry barrier, easier way to collaborate, and faster development cycle.

Next step of SOA

Business level: How to coordinate different services in

business context and achieve the best business model?

How to generate the most efficient business process automatically and intelligently?

The answer is EERP:

End to End Resource Planning

EERP concept: resource planning

With SOA and open standard, we can now help enterprises to improve their profits and sustain the profits, we introduce EERP:

End to end resource planning, optimize the resources along an specified value chain.

What does EERP do?

What is it? A new way to look at enterprise IT application

Integration inside and outside of a enterprise border. A new software architecture and platform

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 (SoftGrid)

Real-time Value Chain Optimization

SCMServices

CRMServices

ERPServices

MRP IIServices

…… Service layer

Real-time auditing

& measuring

EERP platformExtended

UDDI

QoSdesc

Intelligent searching & scheduling

Business goal

Optimize for time

Optimize for profit

Optimize for ……

Real-time Value Chain Optimization

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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EERP top-down service design and deployment strategy

Business process

discovery & definition

Business ontology definition

Service oriented analysis

Service oriented design

Service implementation

Service testing

deploy serviceto EERP platform

Step 1 Step 3

Step 2 Step 4

Step 5

Step 6

Step 7

EERP top-down business process orchestration strategy

Business goal Investigation/

definition

Business ontology definition

Service discovery

QoS deployment& calculation

Service orchestration

Service(business process)

execution

execute QoSauditing

Step 1 Step 3

Step 2 Step 4

Step 5

Step 6

Step 7

service QoSrecording & assessment

Step 8

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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Value Chain Integration

Integrating the Supply Chain & Value Chain

A Supply Chain transforms into an integrated Value Chain when it….. Extends the chain all the way from all levels of

suppliers to customers. Integrates the back-office operations with those of

the front office. Becomes highly customer-centric, focusing on

demand generation and customer service. Is proactively designed by chain members to

compete as an “extended enterprise”. Seeks to optimize the value added by information

and utility-enhancing services.

Challenge of the problem——to build value chain agilely How to identify ‘voice of customer', and

satisfy them The complexity brought by the enormous

amount of suppliers (over 1000 suppliers for an automobile manufacturer)

The efficiency of decision-making The challenge of integrating enterprise

and it’s suppliers

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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Selection strategy

1. Key Success Factors (QoS factors) -Quality -Cost -Delivery time -Innovation

2. Continuous Improvement3. Total Value-Chain Analysis4. Dual External / Internal Optimization Focus

Customer

Satisfaction

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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(QFD) Quality Function Deployment Process

How to capture customers’ requirements:

QFD (aka “House of Quality”) was first implemented by Yoji Akao integrate the “voice of the customer” into the design and delivery of products.

The House of Quality

• 6. Targets6. Goal & constraints

• 4. Inter• -• relationships

4. Customer Requirements

-Technical Characteristics correlation matrix

2. P

rod

uct

p

lan

nin

g m

atri

x

1. C

ust

omer

R

equ

irem

ents

• 3. Technical• Requirements

3. Technical Characteristics

• 5. Roof5. Technical Correlations

QFD & Suppliers Selection1. Draft a list of supplier requirements that

contribute to the fulfillment of customers needs.

2. Formulate evaluation criteria for suppliers.

3. Determine the importance (weight) of the criteria.

4. Rank your suppliers, and make appropriate selection that will accommodate customer needs.

Extended House of Quality reflecting candidate suppliers

Data Mining in supplier selection By data mining, frequent fault patterns under

different environments and different use patterns, critical requirements can be found;

As mining result, frequent fault patterns can be used to build a components correlation matrix;

Manufacturers can perform competitive product analysis based on information from customer profiles and the market in order to determine competitive products that greatly affect the concerned product.

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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An SOA-based System for supplier selection

Why use SOA？Data/Services are distributed/heterogeneous;

Why choose EERP?

To build real-time value chain and perform optimization;

An SOA-based System for supplier selection based on extended QFD and DM

Services implemented:

Data object services;

Mining services;

Decision-making services;

Optimizing services;

System implementationSystem requirements: Operation System: Windows

NT/2000/XP/2003, LINUX, UNIX; DBMS: IBM DB2, Microsoft SQL Server,

Sybase, Oracle, Informix and DBMS that support JDBC/ODBC;

Application server: WebLogic, websphere, etc;

System interface

Outline EERP

Background

Real-time Value Chain Optimization

Design & Implementation strategy

Supplier selection

Challenge of the problem

Selection strategy

QFD & Data Mining

Supplier selection implementation on EERP

Conclusion

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Conclusion

1. SOA provides the possibility and flexibility to integrate heterogeneous systems;

2. EERP use information gathered from the product’s full life-cycle to perform real-time value chain optimization, which is needed in real-world business scenarios;

3. EERP will lead the trend of enterprise computing;

4. Data mining can discover useful and interesting knowledge in business context.

Thanks!