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

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

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 • ChangFeng Alliance's contribution on EERP

Change of business environment • business environment is tougher than ever: • more demanding customers • intense competition • new regulation • Globalization • ongoing march of technology • companies want to:

Change of business environment • companies want to: maximize their business results • Revenues up • profits up • costs down • Growth becomes critical

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… • Business management pushes for better IT utilization and greater ROI • Re-Use of assets • Integration of historically separate systems • Merger and acquisition have become a fact of life • Integration of historically separate systems • New systems must be developed with (current or future) heterogeneity in mind • Internet everywhere has created a set of new business models

Shift to Service-Orientation • What is a "Service" ? • A reusable business process or business function that can be accessed through the standard web technologies • Why? • Business and Business processes drive organizations – not IT • Better correlation with Business • Implications • Re-factor existing systems extracting correct business services

Service Oriented Architecture Focus on exposing units of business logic as services. They are: • loosely coupled, • standards based, • message driven, • published and discoverable

Interoperability via 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

Authentication and authorization services CRM Purchase E-commerce portal Ack/Receipt Credit authorization Triggers a business process Implemented by a set of services Fulfillment services Billing services SOA in Action (example)

the next step of SOA • How to coordinate different services in business context? • How to provide a better business logic for enterprises? • How to route a business process automatically and intelligently? The answer is resource planning

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 enterprise, 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 specified 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)

Real-time Value Chain Optimization Optimize for time Business goal Optimize for profit Optimize for …… Intelligent searching & scheduling Real-time Value Chain Optimization Extended UDDI EERP platform QoS desc Real-time auditing & measuring SCM Services CRM Services ERP Services MRP II Services Service layer ……

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 generation 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 360 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 management), 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 control, 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 • ChangFeng Alliance's contribution

EERP: QoS(1/9) 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: QoS(2/9) 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(3/9) • Service can be combined and complex • QoS measurement in a recursive way

Service Grid SOA Web Service Computing grid CORBA DCOM Java/EJB clustering Meta computing Distributed object /component Distributed computing Parallel computing distributed system Internet EERP: QoS(4/9)

SOA as an application pattern: loosely coupled dynamic binding Registry Consumer Provider EERP: QoS(5/9)

Ubiquitous service QoS measurement and management Stand-alone QoS management Dynamic auditing Dynamic data exchange with UDDI EERP: QoS(6/9) Registry Quality management center Exchange info Audit Audit Consumer Provider

Two approaches for consumer to find a service that match its requirement Look for service in Registry only Look for service in Registry and Quality management center both(QoS on demand) Registry Quality management center Exchange info describe Query and answer Consumer Provider EERP: QoS(7/9) Registry Quality management center Exchange info 1 1 Query and answer describe Query and answer 2 Consumer Provider Extended service info(with QoS) Registry Info QoS Info

EERP: QoS(8/9) Quality index: • throughput time; • value range of a given parameter (for example, cost); • accuracy of a given parameter; • availability

EERP: QoS(9/9) Quality assessment can be multi-objective: Cost/time/accuracy/…… or any combination of them

EERP: Service management • Service describe • Service structure and re-structure • Service auditing • Service life-cycle management

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 Service re-usability Re-use efficiency stability Re-use scale coarse low high low small high low high large 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 in full life-cycle of infomationalization • requirement analysis • design • coding • testing • deploy • system run • maintenance • upgrading • invaliding • Standards • Prototype • Service • Low cost • Short time • extensibility • configurable • Easy to maintenance • Dynamic adaptation • Platform • Application

Standards to be researched on • QoS assessment criteria hierarchy based on SOA • 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 standard • EERP business process auditing standard

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 based on SOA; • 2. QoS assessment criteria explained in detail; • 3. Method to decide weights of assessment criteria；

QoS deployment standard 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 standard based on SOA Main content: • 1. QoS deployment patterns in SOA systems; • 2. QoS deployment methods with each deployment pattern;

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