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

ANYU LEE, PHDDirector, eCommerce R&D center, China Academy of SciencesChief Scientist, Beijing eBridge Service Technology Ltd.

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 EERP Promotion and Implementation

Change of business environment business environment is tougher than

ever: Demanding customers

Shorter time and lower cost; Intense competition

Subject to frequent changes at technology and business process

new regulation Trade barriers and regulation.

Globalization Have to deal with partners across the world

Change of business environment

Companies want to: maximize their business results Revenues up Sustaining profits up Costs down

Profit growth becomes critical Sustaining profit growth is a key core

competence.

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…

Shareholders ask for better IT utilization and greater ROI

Re-Use of IT assets and Integration of historically separate systems

Merger and acquisition have become a fact of life Integration of systems of different enterprises

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

Always prepare for integration. Internet everywhere has created a set of new business models

Innovative business models may aggregate resources across the Internet world.

Shift to SOA

What is a "Service" ? A reusable business process or business function that can

be accessed through the standard web technologies Why?

Business to Business processes drive organizations – not IT

Better colaboration with Businesses Implications

Re-factor existing systems extracting correct business services

Shift to SOA

Exposing business partners as services that are: loosely coupled standards based, message driven, published and discoverable, and QoS measurable.

Shift to 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-commerceserviceservice

CRM service CRM service

Fulfillment servicesFulfillment services

Authentication Authentication and and authorization authorization servicesservices

Credit authorizationCredit authorizationserviceservice

Billing servicesBilling services

Ack/ReceiptAck/Receipt

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

set of servicesset of services

ServiceServiceconsumer consumer

Next step of SOA How to coordinate services internal and

external to meet certain business objectives ?

How to achieve better business model for a enterprise?

How to form an end to end business process automatically and intelligently?

The answer is Service Oriented Resource Planning (SORP)

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 EERP Promotion and Implementation

EERP concept: resource planning

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

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

rise, 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 an s

pecified 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)

EERP: basis

•Based on Web Services to link up applications in a “loosely-coupled” manner

•“Software as Services” and decouple environments and systems

•Eventually

•More robust

•Cost effective to develop

•Infinitely more flexible

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

From SOA to EERP

StandardStandardWebWeb

ProtocolsProtocols

Web Web ServiceService

A unit of programmable business A unit of programmable business logic accessible logic accessible via standard Web protocolsvia standard Web protocols

UDDIUDDIUniversal Description, Universal Description,

Discovery, and IntegrationDiscovery, and Integration

UDDIUDDIUniversal Description, Universal Description,

Discovery, and IntegrationDiscovery, and Integration

Discover Web Services Discover Web Services on the intranet or Interneton the intranet or Internet

WSDLWSDLWeb ServicesWeb Services

Description LanguageDescription Language

WSDLWSDLWeb ServicesWeb Services

Description LanguageDescription Language Describe a Web Service Describe a Web Service

contractcontractSOAPSOAP

Simple ObjectSimple ObjectAccess ProtocolAccess Protocol

SOAPSOAPSimple ObjectSimple Object

Access ProtocolAccess Protocol Invoke a Web Service Invoke a Web Service

XML, XSD & HTTPXML, XSD & HTTPXML, XSD & HTTPXML, XSD & HTTP Built with Web Standards Built with Web Standards

EERPEERPServiceService

A unit of auditable business logic A unit of auditable business logic accessible accessible via standard Web protocols and via standard Web protocols and EERP protocolsEERP protocols

EERPEERPUniversal QoS audition, Universal QoS audition, Integration and RoutingIntegration and Routing

EERPEERPUniversal QoS audition, Universal QoS audition, Integration and RoutingIntegration and Routing

Discover the most suitable Discover the most suitable Services on the intranet or Services on the intranet or Internet for business goalInternet for business goal

Real-time Value Chain Optimization

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 briefing

How does it work? Vendors base on EERP principle to develop next generat

ion enterprise application; SaaS for enterprise application Backend platform to support flexible service choreograph 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 EERP

EERP is one of the most important practices of Service oriented resource planning.

EERP consulting services Help enterprises understand the operation objectives from 36

0 degree of their specific value chains. EERP toolkit

Value chain decomposition, service identfication, service choreograph 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 chain 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 managemen

t), 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 operational 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 contr

ol, 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.

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 EERP Promotion and Implementation

EERP: QoS

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: Quality of Service Service Classification QoS Classification QoS Requirements QoS Measurement and Evaluation QoS Control

Service Classification Service classification is the basis of t

he QoS definition Service can be classified on the basi

s of : Application envirement (Transportation,

communication, energy, ...) Objective ( QoS requirement (Time sensitive, cost

sensitive, …)

QoS Classification Quality level

Based on customer sense: Excellent, good, normal, not too bad, bad)

Based on quality data gathering: 1~10 grades

QoS types Time Cost Convenient…

QoS Requirements EERP QoS parameters definition

Response time Cost Complexity Convenient….

EERP QoS Requirements Excellent quality (range of time, cost ,…) Normal quality (range of time, cost ,…) Bad quality (range of time, cost ,…)

Quality requirements depart One service can be provided

on basis of the other service or sub-services , so the qualities of others may determine its quality.

The quality requirements of one service must be departed to a series of sub quality requirement based on its formed sub service.

QoS can be defined as several layers.

There is a mapping relation between upper layer QoS and lower layer.

Service A QoS Req

Sub Service A1 QoS Req

Sub Service A2 QoS Req

Sub Service A1 QoS Req

…

Sub Service A1 QoS Req

Sub Service A2 QoS Req

Sub Service A2 QoS Req

…

… …

QoS measurement and evaluation The technologies to collect QoS status info

mations Technology architecture Collect agent service/QoS management platfor

m/QoS service QoS Evaluation

QoS evaluation methods QoS evaluation time scale QoS evaluation granularity The QoS evaluation of Different services

QoS control

QoS control key issues QoS requirements or criteria QoS status collects method QoS evaluation method QoS optimization Control

QoS optimization control Feed back control Objective oriented control

EERP: QoS

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 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

Internet

Distributed computing

Distributed object/component

CORBA DCOM Java/EJB

Web Service

Service Grid

Parallel computingdistributed system

clusteringMeta computing

Computing grid

SOA

EERP: QoS

Registry

Consumer Provider

SOA as an application pattern: loosely coupled dynamic binding

EERP: QoS

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: QoSTwo approaches for consumer to find a service that match its require

ment Look for service in Registry only Look for service in Registry and Quality management center both(Q

oS on demand)

Registry

Consumer Provider

Quality management

center

Exchange info

describe

Query a

nd answ

er

Registry

Consumer Provider

Quality management

center

Exchange info

describe

Query a

nd answ

er

Query and answer1 12

Extended service info(with QoS)

QoS InfoRegistry Info

EERP: QoS

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

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

EERP: QoS

Quality assessment can be multi-objective:

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

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 EERP Promotion and Implementation

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

EERP: Service granularity

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.

EERP: Service granularity

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: Service reconstruction

Service reuseData collection

Service reuseData analysis

Transcendental probability

Bayesian analysis

Empirical probablity

Service stability

calculation

Service reconstructionReconstruction principles

Service reconstruction based on stability calculation and Bayesian methods

EERP: Service reuse patterns

Principle of locality for component reuse:

EERP: Mappings business object and software component

EERP in full life-cycle of infomationalization

requirement analysis

design coding testing deploy system run maintenance upgrading enabling

Low cost Short time extensibility configurable Easy to maintenan

ce Dynamic adaptatio

n

•Standards•Prototype•Service

•Platform•Application

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 EERP Promotion and Implementation

Possible work towards Standards and Specifications: 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 Extension of some existing standards

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 SOA

Main 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 Specification based on SOA

Function: To ensure services complete with 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 Specification based on SOA

Main content: 1. QoS deployment patterns in SOA sy

stems; 2. QoS deployment methods with each

deployment pattern;

QoS integration Specification 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 Specification based on SOA

Main content: 1. QoS integration patterns in SOA s

ystems; 2. QoS integration methods with eac

h integration pattern;

Service Re-structure Specification 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 Specification 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 Specification 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 Specification based on SOA

Main content: Service quality auditing standard based

on SOA;

EERP Business Process Definition Specification

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 Specification

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 Specification

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 Specification

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 Specification

Main content: 1. EERP business process

assessment hierarchy; 2. EERP business process auditing

methods;

Possible Extension of Existing Standards and Specification

UDDI BPEL4WS

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 and deployment strategy

EERP integration platform EERP Promotion and Implementation

EERP: Reference implementations(1/2)

Service register

Service publishing

System admin

End user

Target value chain building

Servicesegmenting

EERP soft computing grid(BPEL4WS)

Service management

platform(UDDI)

Service

managem

ent portal

EE

RP

portalM

aintain portal

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

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 and deployment strategy

EERP integration platform EERP Promotion and Implementation

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 ： 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

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 and deployment strategy

EERP integration platform EERP Promotion and Implementation

EERP Integration Platform(1/3)

EERP Integration Platform(2/3)

EERP Integration Platform(3/3)

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 and deployment strategy

EERP integration platform EERP promotion and implementation

Promotion and Implementation(1/4)

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.

Promotion and Implementation (2/4)

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 specific in

dustry 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 before onlin

e, and so on.

Promotion and Implementation (3/4)

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.

Promotion and Implementation (3/4)

National Service Collaboration Platform (NSCP)

Open source service development Service registration and management Service value chain knowledge base Best practice EERP knowledge base Online service acquisition

Q&A