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Table of Contents
1. EAI Background
2. Integration Architecture
3. EAI Functional Model
• Data Integration
• Application Integration
• Process Integration
• Partner integration
• Application Connectivity
4. EAI Benefits
5. EAI Implementation
6. Q&A
1. EAI Background
The Rudiments of Middleware
•Until the last 4 or 5 years, integration of applications was achieved through hard coded, point to point interfaces
•As the number and different types of applications increased, so there was a resulting exponential increase in the number and complexity of these interfaces
•The advent of ERP promised to address this problem by proving ready-integrated packaged modules covering the main transactions within the business
•In reality, ERP implementations are not always the complete solution, as there is now a mixture of different ERP versions implemented, many of the legacy systems are still needed and new value-creating systems, such as CRM and eBiz, are in demand.
•In parallel with ERP implementation, large organisations have started convergence and consolidation strategies, and require consolidated information. The pressure for integration is very high
•In response to this demand, vendors designed technology solutions, which would simplify and speed up both the development and operation of interfaces between applications …… ..it’s the glue, and it’s called MIDDLEWARE and has been around for many years, but a new breed of enhanced tools- EAI (Enterprise Application Integration) is allowing vendors to promise integrated application Nirvana...
Traditional ERP Vision
Accounting
Sales and Distribution
Manufact-uring
Human Resources
Logistics Planning
Sales Force Automation
OLAP
Inventory Management Warehousing
From This…..
Componentized ERP Vision
Logistics Plannning (Manugistics / I2)
Data Warehousing (Cognos, Software AG)
Accounting / Accounting / Accounting / Order Entry / Order Entry / Order Entry / Inventory Inventory Inventory Management Management Management (SAP)(SAP)(SAP)
Sales Force Automation (Siebel, Clarify)
Production Planning (Numetrix)
Human Resources (PeopleSoft)
To This..
•Clients want best of breed
applications / packages, not one
size fits all….
•ERP gave us real time access to
information within the boundaries
of a PACKAGE.
•EAI extends the real time access
to the boundaries of the
ENTERPRISE, including:•CRM•eBiz•ERP•custom packaged bolt-ons•legacy applications•data warehouses•sales force automation
What is driving this ?
Extending the boundaries of ERP
The ERP utopian myth dies with Internet commerce.
• The rapidly shifting requirements of eCommerce signal the end of hopes that a single ERP vendor can provide one-stop shopping for all business applications required by a corporation…
• Corporations will spend between $6 million and $8 million to flexibly integrate supply chain and customer management apps into their existing environments.
• In 1999 and beyond, CIOs must replace and buy software with the perspective of the external customer --not the accounting department -- in mind at all times.
Forrester Report, ERP eCommerce Realities
The ERP vendors are realizing that ERP packages will not integrate every process, and that competitive advantage will be found in the ability to integrate multiple best-of-breed packages. They are enhancing their software to support “open component architectures”:
•SAP’s Business Framework•PeopleSoft’s Open Integration Framework•Oracle’s Network Computing Architecture
The E-Business Myth
Myth: E-Business is about web-pages and on-line stores.
Reality: E-Business is about seamlessly moving information throughout your enterprise and across enterprise boundaries. Web-pages and virtual stores are specific extensions of this concept. EAI provides the means to implement this concept.
E-Business - Cross-Enterprise Integration
EAIEAI
EAIEAI
EAIEAIEAIEAI
EE--BusinessBusiness
EE--Business is EAI extended beyond the Enterprise.Business is EAI extended beyond the Enterprise.Giga have created the phase IAI to reflect this.Giga have created the phase IAI to reflect this.
EAI and E-Biz
Users
Catalogue &
Processes
BusinessApplications
(ERP / Bespoke)
Web&App
Server
BusinessApplications
(ERP / Bespoke)
MasterCatalogue
CRM
WAP /iTV
To Summarize, EAI is driven by
E-Business
Reduced time to market
Mergers and acquisitions
Reorganizations and spin-offs
Application upgrades
Globalization (24 x 7 processing)
“Once the year 2000 comes and goes, Enterprise Integration is going to be the burning issue in MIS.”
-- Application Development Trends
2. EAI Architecture
Integration Architecture – Myths of EAI
Myth: EAI software provides the solution to integration.
Reality: EAI software is a significant enabler of better integration. However, just as SAP software does not automatically lead to a better supply chain, neither does EAI software necessarily lead to better integration.
EAI software, implemented as part of an Integration Architecture, along with other appropriate tools and technologies can allow projects and even companies to realize the full benefits of improved integration.
What is Integration Architecture?
A technology and standards layer that sits between traditional IT infrastructure and traditional interface development
A set of shared services and standards for interfacing that can be leveraged and reused across interfaces and even across projects.
A set of tools (e.g. EAI software, schedulers, version control, etc.) and/or program components that combine to provide these services.
A governance process for ensuring that interfaces adhere to appropriate standards and that appropriate standards exist for all interfacing “patterns”.
A perspective that integration is a strategic IT competency that spans generations of IT projects.
Integration Architecture - Services
Integration Services
Extraction/Loading
Data Transport / Routing
Data Transformation
Data Standards / Meta-Data
Cross-Referencing / Translation
Scheduling /Triggering
Security
Performance
Operational Monitoring
Logging / Auditing / Controls
Error Trapping / Handling
Archiving
Promote to Production/Change Control
Team Organization
Infrastructure
Integration Architecture - Patterns
Cross-Application Architecture
Integration Architecture - Patterns
Sample Interface Characteristics
• Data Consistency vs. Multi-Step vs. Composite
• Asynch vs. synch
• Real time vs. batch
• Inbound vs. outbound vs. both
• One to one vs. one to many vs. many to one vs. many to many
• Levels of auditability / reconciliation
• Types of restart/correction needed
• Platforms in use
Interface
Characteristics
Integration
Patterns
(Categories)
Integration
Architecture
3.EAI Functional Model
PwC EAI model (High Level Definition)
Operational Services
MetaData Services
ApplicationConnectivity
(Adapters / Connectors)
PartnerIntegration
(Trading Partner
Management)
Process Integration
(Process Automation / Workflow)
Application Integration(Message Brokering)
Data Integration(Messaging)
Data Integration
• Messaging Styles:
– Publish/Subscribe - Applications publish information on a network and applications that have subscribed to information on specific topics of interest will receive that information. Subscribers can then consume the particular information that they are interested in after the information has been published.
– Queuing - Facilities for storing and staging messages in-transit between applications.
• Message management - Assuring the integrity of and delivery of messages to one or more recipient systems.
• Transactionality - Assuring that connections to and between applications are governed by appropriate “handshakes” and that changes of state are committed in appropriate logical units.
Definitions (continued)
Data IntegrationMessaging Styles (Queuing, Publish/Subscribe),
Message management, Transactionality
Data Integration - Messaging
Messaging offers the speed of (near) real-time connections with the flexibility of batch connections.
Rigid ConnectionsRigid Connections
Flexible ConnectionsFlexible Connections
Low LatencyLow Latency
High LatencyHigh Latency
Message-Oriented Real-timeBatch
Application B
MessageQueue
MessageQueue
Application A
Definitions (continued)
Application Integration
• Integration rules - Facility for defining when a particular transformation or logic component should be invoked.
• Content-based routing - Dynamic routing of data based on message envelope and/or content
• Logic Enhancements - Added ability to trigger transformations and/or logic based on rules and events (e.g. presence of a message, passage of time, etc.). May also be “Black box” business logic, not necessarily based on data transformation (e.g. pass in a customer number, return a credit check status)
• Format transformation - Ability to transform from one or more input formats to one or more output formats
• Aggregation/disaggregation - Complex many-to-one or one-to-many scenarios
• Data semantics - Ability to represent complex data structures and relationships amont the data.
• Validation - Ability to validate messages against expected structures or format rules.
• Cross-Referencing - Facility for capturing, storing, and accessing cross-reference data.
Application IntegrationIntegration rules, content-based routing,
Logic enhancements, Format transformation, aggregation/disaggregation,
data semantics, validation, cross-referencing
Application Integration - Message Brokering
Message Brokering technology serves as an intermediate “traffic cop” between disparate applications and platforms. Business and data integration rules are consolidated to a shared platform providing greater visibility, greater reusability, and easier maintenance.
Message Broker
• Content Based Routing• Data Transformation• Data Enhancement
Message Broker
• Content Based Routing• Data Transformation• Data Enhancement
EDI Network
OrderManagement
East
FlatFile
OrderManagement
West
IDOC
B2C Content Portal
FlatFile
EDI
B2B Marketplace
XML
Definitions (continued)
Process Integration
• Business Process Modeling - Facility for modeling a multi-step business process that may involve multiple applications and/or people.
• Process Automation - Automation of multi-step processes, usually without human involvement.
• Process Monitoring - The ability to monitor various processes throughout the system. Includes process logging, status, and alerts.
• Workflow/State Management - Automation and tracking of multi-unit processes involving people in addition to systems.
• Real-time Analysis - Dashboard-like facility for monitoring and analyzing real-time performance data based on data flowing through the EAI software.
Process IntegrationBusiness process modeling, Process
automation, Process Monitoring, Workflow / state management, Real-time analysis
Requisitioner Approva
l Require
d?
Manager
Approved?
Buyer
Requisition
Choose Vendors
Request for Quote
Send RFQ to Vendors
Y
N
Y
N
Process Integration (BPA / Workflow)
Process Automation and Modeling tools allow for the modeling and execution of long running processes beyond the boundaries of individual applications. Workflow incorporates role-based manual tasks into the process.
Definitions (continued)
Partner Integration
• Partner management and analysis - Facility for maintaining authorized business partners, types of allowable exchanges, and protocols for exchange.
• Registry(profiles) - Facility for manually or dynamically discovering and registering for commerce opportunities and new business relationships (e.g. via UDDI)
• Web Protocol Support - Support for various Internet protocol standards such as XML, ebXML, EDI, HTTP, HTTPs, SOAP, etc.
• Public vs. Private differentiation - Ability to tie internal processes to a shared process involving business partners, while still maintaining the confidentiality of internal processes.
• Security (enhanced) - Increased security features recognizing the additional legal and process complexity of e-business (e.g. authentication, non-repudiation, encryption, authorization).
Partner IntegrationPartner mgmt and analysis, registry(profiles),
Web Protocol Support (XML, ebXML, EDI, HTTP, SOAP),public vs. private differentiation, security (enhanced)
Partner Integration – Trading Partner Management
Trading Partner Management provides additional functionality for managing the business objects, protocols, and security rules to connect to the applications of business partners.
CustomerCustomer
CustomerCustomer
Business Unit
B
Business Unit
B
Business Unit
C
Business Unit
C
Business Unit ABusiness Unit A
McCugh ManugisticsSAP
Business Unit
C
Business Unit
C
Internal Enterprise
E-MarketE-Market
External Extended Enterprise
CustomerCustomer
EAI
SupplierSupplier
SupplierSupplier
Joint VentureJoint Venture
SupplierSupplier
InternalIntegration
PartnerIntegration
Definitions (continued)
Application Adapters/Connectors
• Data Level - Utilizes a database interface when there is no requirement to access application logic since information may be extracted from (or updated to) the application at the data level without interfering with referential integrity. Data level interfaces such as (e.g., JDBC or ODBC) are generally used. Data Level connectivity can only be used when all referential integrity is maintained at the database level and/or all validations are repeated in the Adapter.
• API/Method Level - Utilizes interfaces exposed by custom or packaged applications, when there is a direct need to access application logic or when the data relationships and integrity are maintained at the application level.
• User Interface Level - Utilizes the user interface of an application (also known as screen scraping). Often used when API Level connectivity is desired but not available.
Note: These are just the high-level categories. Each application may use a unique implementation of one of these approaches or even an approach not listed above.
• Adapter/Connector Development Kits - Adapters/Connectors often come with Development tools which allow for customization of the Adapters/Connectors. They allow for changes in existing adapters/connectors and the creation of new ones.
Application Connectivity – Adapters / Connectors
Adapters or Connectors provide pre-built connectivity to a wide variety of applications and platforms.
- Application Adapters / Connectors
Financials
Marketing
Order Entry
Sales ForceAutomation
E-BusinessCall Center
Logistics
Purchasing
NT/Sybase
Mainframe/VSAM
AS/400, OS/400 Unix/Oracle
AS/400, OS/400
Unix/Oracle
Mainframe/VSAM
AS/400, OS/400
SAPBAPI
SAPALE
FTP
SeibelCOM
CORBA
ebXML
OracleSQL
HTTP
Definitions (continued)
Operational Services*
• Administration - Facilities for modifying the configuration of the system.
• Security - Facilities for configuring security settings and support for security standards
• System monitoring - Facilities for monitoring the health of the system.
• Load balancing - Facilities for allocating the processing work to hardware with available resources.
• Scheduling - Facilities for scheduling the execution of tasks.
• *Operational services may also be provided by API’s for third-party system management tools.
Operational ServicesAdministration, security, system monitoring, load balancing, scheduling
Definitions (continued)
MetaData Services
• Directory Services - Services for locating and tracking distributed objects.
• MetaData Repositories - Facilities for storing, accessing, and reporting on metadata (about data structures and business rules)
• Data Standards - Support for third-party data standards (e.g. XML, EDI)
MetaData ServicesDirectory Services, MetaData Repositories, Data Standards
Enterprise System Management
Metadata (XML / XSL(t) )C
onn
ecto
rs
Business Process Automation
Core Middleware
MessageBrokers
Application Servers
ServiceComponents
EAI Functional and Technical Views
Operational Services
MetaData Services
Business Process Automation
Communication Services
Application Content Transformation
Business Integration Logic
Inter-Enterprise Process Automation
Ap
pli
cati
on
Co
nn
ecti
vity
Functional View Technical View
EAI Waves
EAI Wave 1
Enterprise System Management
Metadata (XML / XSL(t) )
Co
nn
ecto
rs
Business Process Automation
Core Middleware
MessageBrokers
Application Servers
ServiceComponents
EAI Wave 2
Co
nn
ecto
rs
The EAI product landscape is evolving from packages which we classify as EAI Wave 1 to frameworks / platforms which we classify as EAI Wave2
•EAI Wave1 products are packaged based which you need to configure and extend, based on common approaches but proprietary implementations, and typically utilise proprietary process based run-time environments and connectors
•EAI Wave 2 products are open standards based flexible integration frameworks that benefit from proven scalable, reliable execution run-time environments and are evolving to provide the functionality of EAI Wave 1 products and include EIP functionality.
EAI Trends – PwC View
Many large organisations are endorsing an EAI strategy at corporate and departmental levels with the objective of being able to integrate applications faster and cheaper and react quicker to changing business requirements
The EAI market is moving on from just ‘messaging broking’, or EAI Wave1, to....EAI Wave2, which includes:
• Business Process Automation tool-sets for use in A2A and B2B integration where public / private processes can be defined and shared with trading partners. These integration layer business processes can also be invoked in B2C and B2E integration
• The move to an open standards based framework hosted on an application server, rather than a packaged based tool. J2EE is the most dominant framework at the moment, but Microsoft .NET will be a significant player in the near-medium term future.
• The foundation for other products, such as portal frameworks.
Application Package Vendors are embedding EAI functionality
• SAP, I2, JDEdwards, etc
Industry Standards are Evolving
• Various XML initiatives
BUT:
• Still a maturing market place.
• Vendor consolidation will continue.
4. EAI Benefits
Benefits of EAI
• Improved Flexibility
üAct as “intersystems hub”
üAct as front end to customer or in-house PC or terminal systems
• Better Planning, Faster Decision Making
üRouting and connection questions become business questions
üRapid implementation, Minimal risk
üLess management time with all related decisions
üOnce implementations are complete, less time used by technicians
• Organizational Learning
üLess technical expertise needed
üIT staff can be used on more important/pressing issues
üLess time used debating connectivity issues
• Improved Response to Information
üIncreased ability to take timely action
üBetter able to respond to competitive pressures
üBetter able to respond to market opportunities
Business Benefits vs. IT Benefits
Case Study #1
• Insurance company going public
• New core policy system needed to
integrate with all back-office systems
– estimated 30-40% of budget
would be spent on point-to-point
interfaces
• MVS/DB2 environment, 90% batch
• 8 applications integrated since, new
functionality discovered
Cost Savings
Total Labor CostsWITHOUT IntegrationBroker (est.)
$436,800
Total Labor Costs WITHIntegration Broker
$332,800
Savings in First ThreeMonths of Use
$104,000
Product Cost ofIntegration BrokerImplementation
$215,600
Savings as apercentage ofImplementation Costs
48%
Source: Gartner Group
Case Study #2
• Insurance company needed to
implement new fixed annuity
application, integrated with legacy
systems
• Mainframe/UNIX environment, 75%
batch
• Complex integration development
(near-realtime interfaces) estimated to
take 12 weeks less than had they used
point-to-point
Cost Savings
Total Labor CostsWITHOUT IntegrationBroker (est.)
$445,090
Total Labor Costs WITHIntegration Broker
$232,400
Savings in First NineMonths of Use
$212,690
Product Cost ofIntegration BrokerImplementation
$261,730
Savings as apercentage ofImplementation Costs
81%
Source: Gartner Group
Case Study #3
• Global leader in mail, messaging, and
business communications wanted to
consolidate its call center operations
• IMS DB/DC custom system on IBM
mainframe, CICS packages on another
IBM mainframe, Manman on DEC
system, Unisys system
– Integrate with Siebel on NT
– SAP implementation starting on
HP-UX or MVS using DB2
Cost Savings
Total Labor CostsWITHOUT IntegrationBroker (est.)
$3,000,000
Total Labor Costs WITHIntegration Broker
$2,100,000
Savings in First FiveMonths of Use
$900,000
Product Cost ofIntegration BrokerImplementation
$955,000
Savings as apercentage ofImplementation Costs
94%
Source: Gartner Group
Case Study #4
• Service bureau providing clearing and
settlement services for financial
transactions
• Inter-Enterprise
– reformat and route data between
organizations
– 400 data items for 40 different
segments in the database
– COBOL and DB2
Cost Savings
Total Labor CostsWITHOUT IntegrationBroker (est.)
$3,531,040
Total Labor Costs WITHIntegration Broker
$2,484,000
Savings in First TwelveMonths of Use
$1,047,040
Product Cost ofIntegration BrokerImplementation
$502,080
Savings as apercentage ofImplementation Costs
209%
Source: Gartner Group
5. EAI Implementation
EAI Vendor Field Guide
ApplicationConnectivity
(Adapters / Connectors)
PartnerIntegration
(Trading Partner
Management)
Process Integration
(Process Automation / Workflow)
Application Integration(Message Brokering)
Data Integration(Messaging)
GE-GXS
EAI Vendor Field Guide
DeployDevelop
Strategy
Pro forma Architecture
Integration Architecture
Plan long term roll-out
EAI Roadmap
Within the three implementation Stages are nine Phases that contain key dependencies and linkages. Information is also fed back to prior phases to facilitate continuous refinement of the Strategy and Architecture.
Pro forma strategy
Launch
Roadmap
Technology Evaluation & Selection
Enterprise Roll-outPilot
Feedback from implementations and roll-out to Architecture and
Strategy
Ma
inte
na
nc
e a
nd
su
pp
ort
EAI is an endless journey that will require continuous refinement of the Strategy and Architecture as new applications are integrated and technologies evolve.
Challenges of EAI
• EAI cannot support “plug and play” when data structures and/or business rules are fundamentally inconsistent between systems.
• EAI requires up-front design and architecture to achieve the benefits and ensure enterprise level scalability.
• EAI Middleware tools differ in their quality of support for certain enterprise-class functionality (e.g. error handling, promote to production, security).
• Every environment will have different requirements and challenges.
Design/Architecture Considerations
A paradigm shift:
• Batch process/batch windows ----> Messaging
System monitoring and administration
Adapters/Connectors
Exception Handling
Data Transformation
Content-Based Routing
Hub vs. Distributed
Publish & Subscribe
Message Types/Formats
Exception Handling
Cross-Department Alliances
Process sequencing
User Interface
Security
Audit Trails
Exception Handling
Cross-Organization Alliances (Partner Management)
User Interface
Message Standards
Data Encryption
Security
Audit Trails
Exception Handling
6. 국내 EAI 추진현황
Questions & Answers
