end to end resource planning: towards a new era for

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End to End Resource Planning:Towards Real-time Value Chain Optimization

ANYU LEE

Outline Challenges for enterprises

Change of business environment Shift of SOA

EERP concept EERP key issues

QoS Service granularity Standards to be researched on Reference implementation EERP design&deployment strategy

EERP integration platform ChangFeng Alliance's contribution on EERP

Change of business environment business environment is tougher tha

n ever: more demanding customers intense competition new regulation Globalization ongoing march of technology

companies want to:

Change of business environment companies want to: maximize their b

usiness results Revenues up profits up costs down

Growth becomes critical

State of the enterprise Operational Costs Consume IT Budgets

~70% of IT budget spent on sustaining and running existing systems

Only ~30% on new capabilities Enterprises typically want to spend ~45% on

new capabilities 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 assets Integration of historically separate systems

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

New systems must be developed with (current or future) heterogeneity in mind

Internet everywhere has created a set of new business models

Shift to Service-Orientation What is a "Service" ?

A reusable business process or business function that can be accessed through the standard web technologies

Why? Business and Business processes drive organization

s – not IT Better correlation with Business

Implications Re-factor existing systems extracting correct busines

s services

Service Oriented ArchitectureFocus on exposing units of business log

ic as services. They are:

loosely coupled,

standards based,

message driven,

published and discoverable

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

the next step of SOA

How to coordinate different services in business context?

How to provide a better business logic for enterprises?

How to route a business process automatically and intelligently?

The answer is resource planning

EERP concept: resource planning With SOA and open standard, we can now help ente

rprises to improve their profits and sustain the profits, we introduce:

SORP: Service oriented resource planning SORP can optimize resources inside or outside of a

enterprise, for example: SO-SCM

Optimize the resources of a enterprise and its suppliers. SO-CRM

Optimize the resources of a enterprise and its sales/mareking partners or its customers.

EERP: End to end resource planning, optimize the resources along a

n 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 e

nterprise 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 ……



When business goal contains more than one criteria:

It become a question of Multiple Criteria Decision Making(MCDM)

Can be solved by weight model or fuzzy methods, analytic hierarchy process and linear programming, etc.

EERP briefingHow does it work? Vendors base on EERP principle to develop next g

eneration enterprise application; SaaS for enterprise application Backend platform to support flexible service choreograp

h Service management

Enterprises use EERP to manage all relevant resources to achieve specific operation objectives.

Value chain integration Dynamic decision support Integration with eCommerce / online marketplace

Introduction to EERPEERP is one of the most important practices of Service

oriented resource planning. EERP consulting services

Help enterprises understand the operation objectives from 360 degree of their specific value chains.

EERP toolkit Value chain decomposition, service identfication, service cho

reograph and integration. EERP implementation

Different deployment strategies, could be either SOE or true SOE implementation with third party service integration.

EERP QOS management Model, protocol to precisely manage QOS along the value ch

ain to achieve end to end QOS assurance.

EERP: the possible killer app on SOA SOA vs. past technology

It directly maps business to the IT implementation, so it solves today’s enterprise’s big problems (fast changing world);

It enables the enterprise IT application integrate with almost every partners’ services, and run on a much broad and heterogeneous network environment.

EERP vs. past IT application It tells the whole story of the enterprise performance and

operation. It ties enterprise operation with the market dynamics

EERP: manufacture(1/2)Reference implementation A furniture manufacturer.

Value chain identification Service-lization: SCM, ERP, CPM (channal partner m

anagement), eMarektplace (Alibaba, furniture.com.cn and many other relevant eCommerce portals)

Service choreograph guideline (direct sales, channel sales, rental instead of sales and so on.)

EERP decision support console Batch and then real time interaction with all operation

al systems

EERP: manufacture(2/2)Results: Identify the key revenue / profit bottlenecks and reveal

the dynamic pattern of those bottlenecks. Demonstrate the revenue / profit strong correlation with

market environment, even with the stock prices of certain key related companies.

Prove concept: the cost of manufacture is no longer a key problem for today’s manufacturers, instead the resources outside of the company command the revenue and profit.

Help company to completely change its business to furniture lease and customized furniture manufacture.

EERP: eGovernment(1/2)

Reference implementation GSP (government service platform)

20 government processes selected Objectives identified as: fast throughput, tighter c

ontrol, accuracy, policy impact and correlation with central government policy.

200+ eGovernment applications are converted to WebServices.

Modified ESB to a GSP (SOAP + WSDL + BPEL)

EERP: eGovernment(2/2)

Early results: Help government customer to understand

the G-B, G-P dynamics. Identify the bottleneck of policy

implementation and rule adoption. Identify which crowd has a better access

to the government services. Help innovation in the process reform and

organization simplification.

EERP: consumers(1/2)Reference implementation Best career planning service for college

graduates 10 career paths selected 300+ career develop related services identified

(employee services, training services, marriage services, real estate agency, travel services…)

UDDI setup for career related service management Drag/draw to define the career paths, and selection of

personal objectives (key words: Fast path to rich, pleasant family life, entrepreneur, and so on).

Could be a very good online personal career service portal.

EERP: consumers(2/2)Results: Very sticky online service for students. Now can compare different career paths for “the

most efficient way” to achieve goals Identified the college education importance is

less than 10% for certain career objectives Identified early marriages are vital for certain

career objectives Help government office to review the career

training policy.





EERP integration platform ChangFeng Alliance's contribution

EERP: QoS(1/9)

Services are: able to measure; able to map to a business practice; may consist of services; able to test independently; able to observe the state change Security, access control

EERP: QoS(2/9)

Fundamental of QoS: Service must has business meaning

Service implements business logic Service must be measurable;

——if you cannot measure it, you cannot manage it.

Use business factors to measure service

EERP: QoS(3/9) Service can be combined and complex

Service A

Service A1 Service A2

Service B

Service A11 Service A12

Topmost business process

granularity

QoSMeasurement

For alllevels

QoS measurement in a recursive way

EERP: QoS(4/9)

Internet

Distributed computing

Distributed object/component

CORBA DCOM Java/EJB

Web Service

Service Grid

Parallel computingdistributed system

clusteringMeta computing

Computing grid

SOA

EERP: QoS(5/9)

Registry

Consumer Provider

SOA as an application pattern: loosely coupled dynamic binding

EERP: QoS(6/9)

Registry

Consumer Provider

Ubiquitous service QoS measurement and management Stand-alone QoS management Dynamic auditing Dynamic data exchange with UDDI

Quality management

center

Exchange info

AuditAudit

EERP: QoS(7/9)Two approaches for consumer to find a service that match i

ts requirement Look for service in Registry only Look for service in Registry and Quality management ce

nter both(QoS on demand)

Registry

Consumer Provider

Quality management

center

Exchange info

describe

Query a

nd answ

erRegistry

Consumer Provider

Quality management

centerExchange info

describe

Query a

nd answ

er

Query and answer1 12

Extended service info(with Q

oS)

QoS InfoRegistry Info

EERP: QoS(8/9)

Quality index: throughput time; value range of a given parameter

(for example, cost); accuracy of a given parameter; availability

EERP: QoS(9/9)

Quality assessment can be multi-objective:

Cost/time/accuracy/…… or any combination of them

EERP: Service management Service describe Service structure and re-structure Service auditing Service life-cycle management

EERP: Service granularity

Three types of service according its semantic meaning:

Fine granularity service Medium granularity service Coarse granularity service

EERP: Service granularity granularity effects service re-usability greatly

coarse

Service Re-use scale

large

small

Re-use efficiency

low

high

re-usabilityre-usability

high

low

stability

high

low

fine


Aim of Optimization To reduce un-stable factors within

coarse granularity services as much as possible, utilize superiority of re-use coarse services, to improve re-user efficiency.


granularity: how to measure Amount of computation the service afford granularity can be calculated by the

business process the service implements, namely, count of the code lines in the source code of the service.

Generally it’s difficult to measure service granularity accurately.

EERP: Service granularity Service optimization based on service reuse

efficiency measurement

EERP in full life-cycle of infomationalization

requirement analysis

design coding testing deploy system run maintenance upgrading invaliding

Low cost Short time extensibility configurable Easy to maintenan

ce Dynamic adaptatio

n

•Standards•Prototype•Service

•Platform•Application

Standards to be researched on QoS assessment criteria hierarchy based on SO

A QoS deployment standard based on SOA QoS integration standard based on SOA Service re-structure standard based on SOA Service auditing standard based on SOA EERP business process definition standard EERP business process quality assessment stan

dard EERP business process auditing standard

QoS assessment criteria hierarchy based on SOA Function: Quality of Service(QoS) is

a critical technical problem in application of SOA. Assessment criteria hierarchy of QoS will guide the definition and optimization of service in SOA-based systems.

QoS assessment criteria hierarchy based on SOAMain content: 1. QoS assessment criteria hierarchy bas

ed on SOA; 2. QoS assessment criteria explained in

detail; 3. Method to decide weights of assessme

nt criteria ；

QoS deployment standard based on SOA Function: To ensure services complete w

ith quality that user demanded in SOA systems, QoS of services(and sub-services of combined services) should be dynamically managed. Those business processes can satisfy users’ command will be selected and executed.

QoS deployment standard based on SOAMain content: 1. QoS deployment patterns in SOA

systems; 2. QoS deployment methods with ea

ch deployment pattern;

QoS integration standard based on SOA Function: In SOA systems, low-level

services of business operation form high-level services gradually. During the integration process, how to ensure QoS of combined services.

QoS integration standard based on SOAMain content: 1. QoS integration patterns in SOA s

ystems; 2. QoS integration methods with eac

h integration pattern;

Service re-structure standard based on SOA

Function: SOA-based system consists of multiple level, multiple granularity services. Service granularity greatly effects reusability, reuse efficiency, and service management efficiency. This standard focuses on optimization and assessment methods of services through service re-structure.

Service re-structure standard based on SOA

Main content: 1. Service re-structure patterns in

SOA systems; 2. Service re-structure methods; 3. Assessment of services after re-

structure;

Service auditing standard based on SOA

Function: SOA-based system consists of multiple level, multiple granularity services. This standard focuses on auditing methods of service quality through service re-structure.

Service auditing standard based on SOA

Main content: Service quality auditing standard

based on SOA;

EERP business process definition standard Function: Business process definition form

the fundamental of EERP systems’ design and implementation. This standard will put forward a uniform, consistent, integrate-able description method, which is needed by EERP, to support requirement analysis, design, implementation and dynamically optimization.

EERP business process definition standard

Main content: 1. EERP business process definition

based on SOA; 2. EERP business process

description methods;

EERP business process quality assessment standard Function: Quality assessment is one the

most important activity in design and implementation of EERP. This standard put forward quality assessment method for EERP systems, which will guide the building of EERP systems.

EERP business process quality assessment standard

Main content: 1. Quality assessment hierarchy of

EERP business process; 2. Quality assessment criteria of

EERP business process explained in detail;

3. Methods to decide weights of quality assessment criteria;

EERP business process auditing standard Function: Business processes

effects the assessment result of EERP system greatly. EERP business process auditing standard provides method to measure performance of EERP system.

EERP business process auditing standard

Main content: 1. EERP business process

assessment hierarchy; 2. EERP business process auditing

methods;

EERP: Reference implementations(1/2)

Target value chain building

Servicesegmenting

EERP soft computing grid(BPEL4WS)

Service management

platform(UDDI)

Service

managem

ent portal

EE

RP

portalM

aintain portal

Service register

Service publishing

System admin

End user

Operation target selection

QoS

EERP: Reference implementations(2/2)Step-wise implementation Scenario analysis, value chain building

Decide all related services and operation mode Analysis scenario in offline, batch-mode

Aiming at the whole value chain operation Consummate related services step-by-step

Primary application, complex application, real-time business

Integrate into operational system, form a dynamic whole scenario

Reflect effects of environment changing on business operation

EERP ： top-down service design&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 ： an agile service improvement strategy

Business performance/QoS statistics

Service oriented analysis

Service oriented design

Service implementation

Service testing

deploy serviceto EERP platform

Step 3

Step 2

Step 4

Step 5

Step 6

Step 7

serviceQoS assessing/retrospecting

Top-down analysis

Implementation & deployment

Current stat/Business model

Current stat/Business model

Step 8

Step 1

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

execution QoSauditing

Step 1 Step 3

Step 2 Step 4

Step 5

Step 6

Step 7

service QoSrecording & assessment

Step 8

EERP integration platform(1/3)

ChangFeng Alliance’s contribution(1/3) Organized numerous SOA discussion sessions among the

33 member companies in the past 2 years. Established the strategic partnership and cooperation with

OASIS, the leading SOA technology standard organization with over 64 countries participated.

I was successfully elected to be a member of TAB, the only Asian member ever in the TAB.

Published the ChangFeng SOA Strategy Whitepaper, developed a three year plan to lead the SOA advance and commercilization.

Helped our member companies to acquire the first SOA related projects.

ChangFeng Alliance’s contribution (2/3)ChangFeng alliance organized 4 working groups to address the standard issues:

RM for EERP Based on OASIS RM, propose a RM for SORP/EERP for spe

cific industry verticals. Design methodology for EERP

Develop a suite of ROI analysis, system analysis, value chain identification and service choreography guideline and so on.

QOS management for EERP Quality model, protocol and end to end QoS insurance.

Best implementation practice for EERP Standard test suite for service qualification, system test befor

e online, and so on.

ChangFeng Alliance’s contribution (3/3)In next 3 years, ChangFeng alliance will organize across the country:

5,000 certified EERP webservice developers Open sources

50,000 registered technical participants Contributed through IM, Blog, and email.

UDDI service Test, publish, search, ….

EERP portal with service integration support Various industry vertical and consumer services.

end to end resource planning: towards a new era for

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