a spotlight presentationRealizing the value of enterprise SOA
Realizing the Value of Enterprise SOAEnterprise Services and Delivery
Robert LehmanDirector, SAP NetWeaver Solutions
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 2© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Once my system is up and running, you can touch my core processes once every 5 years ...
and it needs to be a Saturday …
and my CEO wants me to innovate every quarter”
“
CIO, Fortune 1000 Manufacturing Company
Modernizing the CoreThe CIO dilemma
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 3© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
CancelInvoicing Send
Notification
Natively Integrated Industry Processes on 1 Platform
Delete from database
“Cancel Order”
CancelShipment
AdjustPlanning
Elevating SOA into a Common Language of Business:Ready-to-Run, Co-Defined Enterprise Services, e.g. Cancel Order
Rollback inventory Notify
Suppliers
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 4© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Natively Integrated Industry Processes on 1 Platform
“Cancel Order”
Elevating SOA into a Common Language of Business:Ready-to-Run, Co-Defined Enterprise Services, e.g. Cancel Order
CancelInvoicing Send
NotificationDelete from
database
CancelShipment
AdjustPlanning
Rollback inventory Notify
Suppliers
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 5© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Natively Integrated Industry Processes on 1 Platform
Business Process Platform
Customer specific business processes
Business Process Platform
Customer specific business processes
Composition environment
Integration Platform
Enterpriseservices
definitions
Enterpriseservices
definitionsProcess
ComponentsProcess
Components
Ecosystem
Discover, use and extend enterprise service definitions(SAP NetWeaver enterprise service repository)
The 4 Defining Elements of a Business Process Platform
Consume and orchestrateservices(SAP NetWeavercomposition environment)
Implement reusable services(industry-specific business logic, delivered through SAP industry solutions)
Build, run, and integrate applications andprocesscomponents(SAP NetWeaver integrationtools and application platform)
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 6© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Delivering Innovation Without Pain
NextSuiteRelease
Enhancement Packages
SAP ERP 6.0
SAP NetWeaver
2006 2007 2008 2009 20102005
New Enterprise Services
Industry-Specific Enhancements
Process and User Interface Simplification
Cross-Industry Functional Enhancements
Customers Adopt Innovation at their Pace
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 7© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
EP1 2006
Role-Based Access
Adaptive Manufacturing
HR Shared
Services
Retail
EP1 2007
Order To Cash
Order ToCash
Learning
ServiceIndustries
EP2 2007
Procure ToPay
Procure To Pay
Fast Closing
Trading Industries
EP3 2008
Accounting To Reporting
Treasury
Process Industries
EP1 2008
Attract To Perform
Financial Shared
Services
Compensation
Discrete Industries
Delivering on the Promise5 Enhancement Packages in the Next 2 Years
ENHANCEMENT PACKAGES
SIMPLIFICATION
ENTERPRISE SOA
FUNCTIONALITY
INDUSTRIES
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 8© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Packages of Enterprise ServicesService Enabled Business Processes for Accelerated Business Value
“Connecting the dots" between enterprise services
Collaborative WIKI
Prioritization
Business Scenarios
Services
CustomerPartner SAP
Built-in Governance
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 9© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Plan for Enterprise Services Delivery
2006: Available for Customers
SCMSpare Parts ManagementDemand PlanningATP CheckSupplier Collaboration with SCM
SRMSupplier Order Collaborationwith SRM External Requirement Processing
2007: In Progress
ERPCustomer Fact SheetElectronic Bill Presentmentand PaymentIntegration of Quality Management SystemsDocument Management Connectivity
ManufacturingIntegration of Manufacturing Execution SystemsManufacturing Work Instructions
RetailDemand ManagementGlobal Data Synchronization
InsuranceInsurance ClaimsManagement
Banking Current Account Management Installment Loans Account ManagementLoans Contract OriginationFS Business Partner Maintenance
Higher EducationCourse Approval Processes
Order2CashOrder To Cash: BasicsEngagement Management Professional ServicesFinancial Shared Services CenterBank relationshipmanagementExternal Cash Desk
Procure2PayProcure to Pay: BasicsSupplier Collaboration Invoice Clarification /Management
HCMTravel Management
DuetNew and enhanced scenarios
Logistic ExecutionIntegration of Logistic Service Provider
Generic LSP integration
Ocean Carrier Booking & Visibility
Integration with external Warehouse Management System
Outbound Logistics
ManufacturingOutsourced/Contract Manufacturing
Batch Traceability & Analytics
Service and Asset ManagementCustomer Service Execution
Maintenance Processing
DRAFT
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 10© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Mobile Phone Consumer
Logistic Service Provider
Banking Services
Retail
Mobile PhoneSupplier
Credit Rating Agency
Mobile ServiceOperator
Mobile Phone Consumer
Credit Rating Agency
Logistic Service Provider
Banking Services
Retail
Mobile PhoneSupplier
Mobile ServiceOperator
Natively Integrated Industry Processes on 1 Platform
ReceiveCustomer
Order At POS Online / Store
Verify Customer Contact Data
Check CreditRating
Service Provisioning
Billing and Payment
ProcessingReceivablesAccounting
Mobile Phone Consumer
Retail
Credit Rating Agency
Mobile ServiceOperator
Banking Services
Example: On-boarding a Mobile Phone Subscriber Under a Retail Brand
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 11© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Natively Integrated Industry Processes on 1 Platform
Business Partner Customer
Source-to-Pay Process
SRM ERP
Ease of use
The Result of Building on One Business Process Platform
User Experience of Choice with
Common Behavior
Common Process Logic
Common Enterprise
Services
Common, OpenPlatform
Processcontinuity
Higher speedof change
Lower TCO
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 12© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Getting Started with Enterprise SOAEnterprise Services Delivered Your Way (in 2006)
ES Workplace
Sandbox for Enterprise SOA
Core/Edge ModelES Workplace
COMPOSESTART DEPLOY
For Architects & Programmers
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 13© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Accelerated Business Value With Enterprise SOAxApps Delivered Your Way (in 2007)
ES Workplace
Appliance For Enterprise SOA
Core/Edge ModelxApps Hub
ADAPTSTART DEPLOY
For Business Process Experts
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 14© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Customers Adoption of SOAWhich Strategies are Driving SOA Adoption?
Results from 100+ SOA Roadmaps performed in the US in 2005-6
Results from Enterprise SOA Adoption Program (consulting)“What business drivers were identified in the SOA roadmap?”
Others – 7%
Product Innovation
Build Relationships
Compliance
Process Innovation
Expand channel/market
15%
10%
11%
25%
5%
18%
Mergers/Acquisitions
Cost Leadership 18%
9%
25%
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 15© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Key Business Initiatives Company IT-enabled Results
SAP survey with 175 customers
Business Initiatives That Drive Operational Excellence and AgilityBest Practice Examples of IT Providing Value to the Business
Post-merger Integration in 2-8 months
5 years ahead of mandate
Reduced days outstanding23%Cost containment
8%Compliance
5%Mergers and acquisitions
7x growth in permits / year
Grow 2x industry average
50% less time to market
Reduced costs and found alternate revenue source
14%Business process innovation
10%New markets and channels
23%Managing relationships
New products or services10%
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 16© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Disruptive Innovators
Transforming Organizations Setup, Roles and Skills – Break the Silos
From technology driven application development to business driven IT services
From technology skills based to business knowledge and communication
From technology partners to innovation partners
Repository Keepers
Composers
Consolidators
Business Process Landscape
IT Platform
a spotlight presentation
An Enterprise SOA Showcase Gerhard Thomas
Hubert Burda Media
“Enterprise SOA allows Hubert Burda Media to offer parts of its value chain to other publishers to
generate new revenue streams“
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 18© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Company profile of Hubert Burda Media
Four-pillar strategyMagazines
Internet activities
Direct marketing
Printing business
Facts & FiguresImportant sites e.g. Offenburg, Munich, Hamburg, Berlin, Moscow
Turnover approx. € 1,5 bn in 2005
7.170 Employees
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 19© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Create competitive advantage:Improved processes, new technology and a new generation of employees will accelerate Hubert Burda Media
Generate new revenues:Ability for Business Process Out-tasking will support the strategy of Hubert Burda Media
Challenges and Strategy
Strategy of Hubert Burda Media
Margin Pressure
Media Business TrendsCirculation and Ad Sales of magazines are decreasing Internet and 1:1 marketing is tough competition Classical distribution models are under pressure
Internal RoadblocksHigh process costs due to large amounts of manual tasks Unclear responsibilities, roles and fragmented processes Missing flexibility in internal IT and applications cannot fulfill business requirements
in Million Euro
Ad Sales of magazines in Germany (2001-2005)
Ad Sales Internet in Germany (2001-2005)
in Million Euro
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 20© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Business Strategy IT Strategy
Enterprise SOA enables IT to fulfill Business needs
Technology follows Process follows People –support a necessary restructuring process with Change Management
Generate new revenue streams based onBusiness Process Out-tasking
Implement a new ITGovernanceDrive OperationalExcellenceIncrease IT Flexibility for new business models
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 21© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Process View – Example
Before After
- Fixed process step sequences (defined along system landscape)
- High amount of manual tasks(using various communication media)
- Unclear process responsibilities(missing or multiple process owners)
+ Encapsulate business process steps(for higher deployment flexibility)
+ Role specific process steps(across core business processes)
+ Speed up processes and reduce cost(to generate competitive advantages)
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 22© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Architecture View
*RampUp Customer
Internal userusing improvedprocess
VIS/3 VIS/4SAP ERP 6.0
Outlook
BIKMC
Bugtracker
SAP NetWeaver
InternetSAP Enterprise Portal
Web Dynpro*
Web Services
Externalcustomerusingselected process steps
Distribution Management Problem SolvingNews FeedsCustomer
Communication
Intranet
Web Services
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 23© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Key findings of Hubert Burda Media
End-to-end process optimization via service integration
Acceleration in delivery
Cost and risk reduction
Efficiency improvement of existing internal IT systems
No transformation without holistic changemanagement approach
Opportunity to offer flexible process components to business process out-tasking customers
Creation of a new business approach and generation of new revenues
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 24© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Services that help SAP customers and partners in developing composite solutions and customer-specific enhancements.
Based on the SAP NetWeaver platform and enterprise Service Oriented Architecture.
Supporting Your Enterprise SOA Development Approach
SAP CUSTOM DEVELOPMENTIntegrated into the SAP overall enterprise
SOA service portfolio
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 25© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
SAP Education – Curricula and Certifications Drive Technical Skill Development and Measure Competence
Accomplish defined tasks to customize and validate functionality
Build proposed solutions to design and implement scenarios
Conceptualize complex processes to optimize integrated scenarios
Design strategies and roadmaps to architect solutions
MeasureCompetency
MitigateRisk
LowerTCO
Enable Growthof Partner Ecosystem
MASTER
PROFESSIONAL
ASSOCIATE
E-learnings
Tools
Classroom
ExpertWorkshops
www.sap.com/education
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 26© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
SummaryWhy Chose SAP for SOA?
1000 productized services in a repository with built in governance
Speaks language of business
1500+ suppliers of industry specific products and services
Co-innovation on a common platform
The first service-enabled business suite, powered by a unified platform
26+ proven industry solutions, service-enabled processes
Integrated Platform
Pre-packagedSOA
TrustedEcosystem
© SAP AG 2004, ESA Adoption Program / Ch. Hastedt-Marckwardt / 27© SAP AG 2006, SAP Technology Tour 2007 / Enterprise SOA /
Questions