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Interorganizational System Development

Interorganizational System Development. Lecture 22. Today Lecture. Interorganizational System Development EXXONMOBIL Discussion Case – Interorganizational Systems Development HONG KONG EXCHANGES & CLEARING Case Study – Interorganizational Systems Development Internet-Based Systems

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Interorganizational System Development

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  1. Interorganizational System Development Lecture 22

  2. Today Lecture • Interorganizational System Development • EXXONMOBILDiscussion Case – Interorganizational Systems Development • HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development • Internet-Based Systems • Application Servers • Java Development Platform

  3. Today Lecture… • Web Service • Web Service Advantages for E-Business • Web Services Terminology • Web Service Model • TRADITIONAL WEB-BASED SYSTEMS • WEB SERVER CLUSTERS

  4. Today Lecture… • BUILDING A WEB SERVICECase Example • BEKINSCase Example – Web Services • BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services Development

  5. Interorganizational System Development • One of the main business trends is the appearance of business ecosystems — “groupings” of businesses that work closely together • Supply Chain Management systems integrate supply chains • These are now a major trend as they compete against one another on their ability to reduce costs and time across their entire chains • Development of such inter-organizational systems requires teams from the different organizations to work together

  6. Supply Chain Example

  7. Interorganizational System Developmentcont. • Another type of inter-organizational system is a platform, which provides the infrastructure for the operation of a business ecosystem, a region, or an industry • Sabre • Video game industry

  8. Interorganizational System Developmentcont. • Platform development is a major trend in an increasing number of industries • Following 2 cases • Exxonmobil - Yet to become a platform • HKEx – points out the types of coordination needed to develop an interorganizational system for a business ecosystem

  9. EXXONMOBILDiscussion Case – Interorganizational Systems Development • Mobil created Speedpass, a system that uses a 1.5-inch-long wand that motorists can attach to their key chain and “wave” at an electronic reader on a Mobil gas pump to pay for gas • Mobil’s goal was to speed motorists in and out of its stations • ExxonMobil now has five million Speedpass holders • They buy more Mobil gas than non-Speedpass customers, they visit Mobil stations one more time per month, and they spend 2-3 percent more money

  10. EXXONMOBILDiscussion Case – Interorganizational Systems Development cont. • To leverage this technology, it has teamed up with McDonald’s restaurants in Chicago to test use of Speedpass to pay for food • How should Mobil leverage this platform even more?

  11. HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development • HKExis Asia’s second largest stock market • To extend its reach beyond Hong Kong, it decided to embed its business processes in an open trading architecture by building a third-generation automatic order matching and execution system • HKEx’s goal is integrated end-to-end computerized trading processes, from investors through brokers to markets

  12. HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development cont. • The project was daunting, involving both internal and external people • 40 staff members from varying departments • 150 consultants, and • 500 brokerage firms

  13. HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development cont. • Development took two years, and ended with three levels of testing • One level involved testing the systems that some 100 brokerage firms built to interface with the open gateway • Rollout was phased so that Hong Kong’s stock market was not disrupted

  14. HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development cont • HKEx has built its processes into an open architecture and coordinated the construction of an inter-organizational system – with components from numerous sources and participants of many kinds • It is now the foundation for its industry ecosystem

  15. Internet-Based Systems • HKEx’s system is not Internet based but it allows Internet access for online trading as well as other actions • The Internet has opened up the options HKEx can offer • Internet users have become so sophisticated that Internet-based systems must be: • Scalable • Reliable, and • Integrated both internally and externally with systems of customers or business partners

  16. Internet-Based Systems • To do this companies recognize they must negotiate ‘language differences’ • E.g. a system may have to port old COBOL applications to Java, reconcile interface discrepancies and interface with back-end legacy applications, often without documentation or past experience with those systems • Tools are available to help • Open systems etc.

  17. Internet-Based Systems: Application Servers • Originally conceived as a piece of middleware to link a Web server to applications on other company systems • The application server has grown into a framework for developing Internet-based applications • Figure 9-6 shows the basic application server architecture. The virtual server takes requests from clients and Web servers (on the left), runs the necessary business logic & provides connectivity to the entire range of back-end systems (on the right)

  18. Internet-Based Systems: Application Servers • The goal of the application server: • automate • manage technical tasks in the development and running of Internet based applications • The result: • Developers can focus more on business issues, rather than technical detail

  19. Internet-Based Systems:Java Development Platform • Java has been in many cases the starting point for the development of Internet-based systems with an open system architecture. • Originally – developed to provide applets that run on Web clients • Evolved into a full programming language • Goal = Platform for independent language that could run on any system • Promise applications portability: “write once, run anywhere” • Didn’t live up to promise = evolved into a standard platform for developing server-side applications

  20. Java Software Development

  21. Internet-Based Systems:Java Development Platformcont. • Major components in Java server-side platform • Enterprise Java Beans (EJB) • Preconfigured pieces of code that IS staff no longer have to build from scratch • Java 2 Enterprise Edition (J2EE) • Defines a standard for developing Internet-based enterprise applications

  22. Internet-Based Systems:Java Development Platform cont • Provide an alternative to building online business systems from scratch or buying packaged online business systems because of their multi-vendor platform capability and pre-built, reusable components • Microsoft competes with its own versions: • Component Object Model (COM) • Distributed Component Object Model (DCOM)

  23. Web Service • Web Service: • “Web-based applications that dynamically interact with other Web applications using open standards that include XML, UDDI and SOAP” Universal Description Discovery Integration Simple Object Access Protocol • Service-Oriented Architecture (SOA): • “Development of applications from distributed collections of smaller loosely coupled service providers” • “A collection of services or software agents that communicate freely with each other”

  24. XML • Extensible Markup Language (XML) is a markup language that defines a set of rules for encoding documents in a format which is both human-readable and machine-readable.

  25. UDDI • UDDI (Universal Description, Discovery, and Integration) is an XML-based registry for businesses worldwide to list themselves on the Internet. • Its ultimate goal is to streamline online transactions by enabling companies to find one another on the Web and make their systems interoperable for e-commerce.

  26. Web Service Advantages for E-Business • Allow companies to reduce the cost of doing e-business, to deploy solutions faster • Need a common program-to-program communications model • Allow heterogeneous applications to be integrated more rapidly, easily and less expensively • Facilitate deploying and providing access to business functions over the Web

  27. Web Services Terminology • SOAP (Simple Object Access Protocol) • exchanging XML messages on a network • Like RPC, it provides a way to communicate between applications • Unlike RPC, it communicates over HTTP

  28. Web Services Terminology • Because HTTP is supported by all Internet browsers and servers, SOAP can run on different operating systems, with different technologies and programming languages • WSDL (Web Service Description Language ) • describing interfaces of Web services • UDDI (Universal Description, Discovery and Integration) • managing registries of Web services

  29. Web Service Model (1/3)

  30. Web Service Model (2/3) • Roles in a Web Service Architecture • Service provider • Owner of the service • Platform that hosts access to the service • Service requestor • Business that requires certain functions to be satisfied • Application looking for and invoking an interaction with a service • Service registry • Searchable registry of service descriptions where service providers publish their service descriptions

  31. Web Service Model (3/3) • Operations in a Web Service Architecture • Publish • Service descriptions need to be published in order for service requestor to find them • Find • Service requestor queries the service registry for the service required • Bind • Service requestor invokes or initiates an interaction with the service at runtime

  32. Internet-Based Systems: Web Services • The vision of Web Services is that modules of code can be assembled into services, which, in turn, can be linked to create a business process at the moment it is needed and run across enterprises, computing platforms, and data models • There are two development modes: • One is to wrap an XML wrapper around an existing piece of code that performs a specific function

  33. Internet-Based Systems: Web Services • Exposes it • Then = give it a Internet address and let others use it – for a fee! • Second way to build a Web Service = use one someone else has already exposed • The following case illustrates the basics of building a Web Service

  34. TRADITIONAL WEB-BASED SYSTEMS • Many Web-based systems are still organized as simple client-server architectures.

  35. TRADITIONAL WEB-BASED SYSTEMS • The core of a Web site: a process that has access to a local file system storing documents.

  36. TRADITIONAL WEB-BASED SYSTEMS • How to refer to a document? • URL (Uniform Resource Locator)?

  37. Uniform Resource Locator • A reference called Uniform Resource Locator (URL) is used to refer a document. • The DNS name of its associated server along with a file name is specified. • The URL also specifies the protocol for transferring the document across the network. • Example: http://www.cse.unl.edu/~ylu/csce855/notes/web-system.ppt

  38. TRADITIONAL WEB-BASED SYSTEMS • A client interacts with Web servers through a special application known as browser. • What’s the key function of a browser? • Responsible for displaying documents.

  39. WEB SERVER CLUSTERS Web servers are replicated and combined with a front end to improve performance.

  40. WEB SERVER CLUSTERS • The front end can be designed in two ways: • Transport-layer switch – simply passes data sent along the TCP connection to one of the servers, depending on some measurement of the server’s load. • Content-aware request distribution – it first inspects the HTTP request and decides which server it should forward that request to.

  41. WEB SERVER CLUSTERS • For example, if the front end always forwards requests for the same document to the same server, the server may cache the document resulting in better response times. • Approach that combines the efficiency of transport-layer switch and the functionality of content-aware distribution has been developed.

  42. WEB SERVER CLUSTERS • Another alternative to set up a Web server cluster is to use round-robin DNS. • With round-robin DNS a single domain name is associated with multiple IP addresses. • When resolving a host name, a browser would receive a list of multiple addresses, each address corresponding to a server. • Normally, browsers choose the first address on the list, but most DNS servers circulate the entries. • As a result, simple distribution of requests over the servers in the cluster is achieved.

  43. BUILDING A WEB SERVICECase Example • Currency converter • The steps involve: • Exposing the code • Writing a service description • Publishing the service • Finding the service, and • Invoking a Web Service

  44. BEKINSCase Example – Web Services • Moving company which is using Web Services in its HomeDirectUSA business • Delivers large household appliances • Uses some 1,000 independent agents • Formerly = faxed or phoned these agents to arrange delivery • Slow and not equitable to all agents • Created an online broking system (TBE) • Used to tender jobs to all agents • Once accepted = unavailable to others

  45. BEKINSCase Example – Web Services • Results • Lower tendering costs • Faster customer service • Better utilization of agents’ trucks • So efficient = offer lower margin jobs to agents • Increases shipping volume and revenues • Bekins’ E-Commerce Platform • Building the system • Required commitment from several moving partners = an interorganizational system • Involvement = important but equally important was their comfort with Web Services

  46. BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services Development • Whilst these can help enterprises develop systems faster, the technology might have other ramifications • CIOs would do well to prepare for • Possibly another round of even more powerful, on-the-fly end user development

  47. BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services Development • History repeating itself • Spreadsheets • 4GLs • Web sites • Personal silos of data and apps • IS management can address ‘in advance’ this time! • Else = Users will take development into their own hands as they have done so eagerly in the past

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