Service Oriented Architectures

SAP 2006

Business Requirements for 2010

Consolidation will impact most industries…

and accelerate specialization

Changing customer needs continue to be the key growth opportunity…

but will require business model innovation

Embedded software and digitization create new opportunities …

both in processes and business models.

Flexibility and speed become “design imperatives”…… promoting IT to strategic “weapon”

Source: Economist Intelligence Unit Survey

SAP 2006

Business expectations

Process change should take weeks or days

Business users demand a competitive edge

Focus investment on strategic innovation

IT reality

Hard-wired systems mean process change takes years

Disparate IT systems result in siloed user views

Best-of-breed silos eat up 70% of budget

Technology Is Not Seen as Strategic Growing Disconnect Between Business and IT

SAP 2006

So This is How it Feels Sometimes…

Technology should be an enabler of IT, not an barrier..

Increasing

Business requirements

Rapid Change/rollouts

Budget constraints

New Technology andlegacy support

New ‘customers’

SAP 2006

The New Integration ChallengeDisparate Technologies Do Not Support Process Innovation

Inflexible: slows process changeHardwired process

Purpose-built integrations

Reuse is difficult

IT silos can’t meet LOB needsIT upkeep fights with LOB demands

LOB unable to leverage information

IT silos prevent delivering composites

Costly to maintain; ties up budgetExponential number of integrations

No cohesive master data

Redundant processes

ApplicationServer

PortalBusiness

Intelligence

Messaging

Security

Master Data Mgmt

Enterprise Integration

CRM

SRM

ERP

SAP 2006

The Emergence of a Services Oriented Approach

Platform Requirements Preintegrated

Process-centric

Leverages existing assets

Service-enabled

Supports rapid process recomposition

Rich ecosystem for co-innovation

ApplicationServer

Portal

Business Intelligence

Messaging

Security

Master Data Mgmt

Enterprise Integration

SAP 2006

Web Services: Definition

WEB SERVICES are

SELF-CONTAINED

and SELF-DESCRIBING

APPLICATION FUNCTIONS

that can be

PROCESSED

through

OPEN INTERNET STANDARDS

SAP 2006

The Approach: Service Oriented ArchitectureSOA is essential but missing business semantics

ENTERPRISE SERVICES“PRODUCTIZED”

Business Integrity!

SOA - WEB SERVICES“BUILT”

Delete fromdatabase

Rollbackinventory

CancelShipment

CancelInvoicing

SendNotification

AdjustPlanning

NotifySuppliers

Chaos?

Cancel Order

CancelShipment

SendNotification

AdjustPlanning

NotifySuppliers

CancelInvoicing

Rollback inventory

CancelInvoicing

SAP 2006

Services Oriented Architecture

Business Processes and User Interaction

Abstraction and Integration

EnterpriseServices

Enterprise Applications

SAP 2006

PEOPLE PRODUCTIVITY

ANALYTICS/REPORTING

Enterprise Services Oriented Architectures

Bus.Partner

Legacy

SAP NetWeaver

SERVICE COMPOSITION

Business Objects, Components, and Engines

PartnerServices

EnterpriseServices

RepositorySERVICE ENABLEMENT

LIFE-CYCLELIFE-CYCLEMANAGEMENT

SAP’s Enterprise Services

5 KEY ELEMENTS

SAP 2006

Process Innovation – Enabling Differentiation

Leverage and Reuse

SOA PlatformE

RP

ER

P

CR

MC

RM

EnterpriseServices

Repository

ENTERPRISESERVICES

PL

MP

LM

SR

MS

RM

SC

MS

CM

Cu

sto

mC

us

tom

Manufacture-to-InventoryManufacture-to-Inventory

Order-to-CashOrder-to-Cash

Procure-to-PayProcure-to-Pay

Any Existing System

DIFFERENTIATION PRODUCTIVITY

SAP 2006

DIFFERENTIATION PRODUCTIVITY

Process Innovation – Enabling Differentiation

REUSE PROCESS STEPS AND ENTERPRISE SERVICES IN CUSTOM

PROCESSES

ER

PE

RP

CR

MC

RM

PL

MP

LM

SR

MS

RM

SC

MS

CM

Cu

sto

mC

us

tom

SAP NetWeaver

ENTERPRISESERVICES

SOA PlatformEnterpriseServices

Repository

Plan Manuf.

Auction

Source Procure

Availability-to-SaleAvailability-to-Sale

P2PP2P

O2CO2C

M2iM2i

Any Existing System

Leverage and Reuse

SAP 2006

Players in Business Process Agility

SAP 2006

SAP 2006

SAP 2006