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ERP and SOA ERP Scenario: Death by SOA?

ERP and SOA ERP Scenario: Death by SOA?. Doc.Ing.Vlasta Svatá Prague University of Economics. Informatics’07. 22.6.07. ERP Systems Evolution. ERP – conclusion:. ERP systems didn't meet our expectations:

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ERP and SOA ERP Scenario: Death by SOA?

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  1. ERP and SOAERP Scenario: Death by SOA? Doc.Ing.Vlasta Svatá Prague University of Economics Informatics’07 22.6.07

  2. ERP Systems Evolution

  3. ERP – conclusion: ERP systems didn't meet our expectations: • Disagreement between the standard functionality of systems and the need of end-users ( using on average 27.6% of ERP functionality1) • Problematic support of innovation (treasury management, performance management, planning and budgeting, R&D) • Costly maintenance (average SW&Service costs per user are around $4,000 1 ) • Great dependence on external supplier (provider) and system itself • Difficulties in integration with other systems and keeping it up-to-date in case of changing ERP system version (1) Report:The Total Cost of ERP Ownership, Aberdeen 2006

  4. SOA – Service Oriented Architecture • Gartner, November 2006: SOA is a style of software topology (architecture) that is modular, distributable and loosely coupled • IBM, 2006: SOA is an architectural style, design style, and a design principle for application development and integration

  5. Architecture Evolution and Standards • Flexibility Web services (WSDL, SOAP, WSBPEL, ESB) Dynamic Reconfiguration Architecture Distributed object technology (CORBA, DCOM, MOM) Service Oriented Architecture Component Oriented Architecture Object oriented programming Structured programming Client-Server Architecture Monolithic Architecture Time 1980 1990 2000 Today Future

  6. SOA Benefits (IT Evergreens) • Agility/Flexibility/Faster time to market • Cost reduction • Easy integration • Improved reuse • Better scalability • Leveraging of existing applications • Reduced risk – incremental implementation • SOA has become overestimated – umbrella solution for all Enterprise IT problems (same story as ERP systems did)

  7. SOA Evolution/Layers SOA Governance E-U INVOLVEMENT SOAManagement WSManagement COMPLEXITY

  8. Relation ERP - SOA • Around 67 percent ofenterprises with morethan 40,000 employeesare planning to implementservice-orientedarchitecture (SOA) this year (ForresterResearch) • ERP vendors (SAP, Oracle) are investing billions to their products in order to be SOA compatible • Three scenarios how ERP/SOA can cooperate: • SOA products will replace ERP system; only its data and infrastructure will be available to SOA • SOA can be the next layer above the ERP system: defined services of ERP system will be available to SOA tools (Enterprise SOA) • ERP systems will be consolidated to support SOA architecture and BPM activities (ERP SOA)

  9. ERP Before and After SOA

  10. SOA (integration backbones) vendors Market leaders (Gartner Magic Qudrant 2006): • Original integration specialists; they use integration suites: SeeBeyond, Tibco Software and webMethods • Software generalist; they use mostly APS (application platform suites): BEA Systems, Fujitsu, IBM, Microsoft, Oracle, SAP) • Other middleware products vendors (e.g. Sterling Commerce – strong in B2B products)

  11. “Which three vendors will you most likely turn to for an SOA application/middleware platform?” IBM SAP Oracle Microsoft SSA Global Lawson-Intentia Don't Know Source: Forrester- ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references 28 24 21 12 11 9 45

  12. SOA: the End of ERP - YES • ERP wasn't built with the Internet in mind • starting 2010 ERP customers can stop buy applications, they will contract low-cost integrators to build custom composite apps that sit on the top of their ERP backbone • 2012: customers • will replace ERP bacbone with another cheaper business process platform • will apply „SaaSOA“ (SaaS: SW as a service: SW vendor develops and operates web-native appl. over the Internet)

  13. SOA: the End of ERP - NO • ERP vendors are in the inflation point similar to mainframe - C/S change • It may take decade before a new company (SOA intergrators) can touch the big ERP vendors (SAP, Oracle) • ERP vendors are developing innovation centters around SOA together with SOA integrators (Accenture, IBM) • New upgrades of ERP systems as a result of SOA projects (e.g.SAP: Enterprise SOA -formely ESA project and mySAP ERP 2007) • SOA seems to be inefficient for larger companies whose application infrastructure comes mostly from a single vendor (60 percent or more) • SOA can be as bad, or maybe even more painful, than ERP

  14. Thank you for your attention!

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