Integrating Third Party Applications to MFG/PRO

1. Integrating Third Party Applications to MFG/PRO After Q/LinQ, what? Bruce McIntyre, Bruce Baron,and Bob Nowatzky ISS Group March 2001

2. Agenda • Who is ISS Group? • ISS Group products • The Dilemma • Historical Approaches • Best Practices • Case Study • Siebel integration to MFG/PRO • Success stories • Ingersoll Rand, Aeroquip • Questions/Answers

3. Who Is ISS Group? • ISS Group provides eBusiness solutions and services that empower Progress-focused enterprises: • Headquartered in Little Falls, NJ • 100+ professional consultants, programmers, and sales representatives • Support ERP, CRM, and SCM applications • Founded in 1986 • Progress partner since 1988 • Currently Open Access partner • Over 300 clients globally • Worldwide distribution network

4. ISS Products - Applications • Trading Partner Transactions, gives trading partners Internet access to buy- and sell-side functions in Progress-based ERP systems. • Lets companies react faster to supply chain demands and build stronger, more profitable relationships with trading partners. • StoreFront, a retail web store tightly integrated with Progress-based ERP systems. • Lets consumers purchase goods online and obtain up-to-the-minute details on their transactions. • Distributor Portal™, a web interface that provides user-defined views of a company’s business information systems. • Unlocks and integrates information from various business systems and provides secure Internet access. • Siebel-to-MFG/PRO Connector, provides simultaneous, real-time access to Progress-based ERP systems from within Siebel’s Call Center applications. • Leverages and integrates key data within front- and back-office systems.

5. ISS Products - Development Tools • WorkQ, a workflow management system for Progress-based applications. • Automates business processes and associated tasks carried out by Progress-based applications, such as ERP. • eFramework™, an enterprise-class Internet and ASP enabling toolset for Progress-based applications. • Jump starts development by eliminating key challenges up front. • Builds highly scalable, robust Internet and ASP applications from legacy systems. • Adds a flexible security model on top of existing application security. • Source Code Converter, scans procedure code from 4GL Progress applications and converts it to web- and ASP-enabled code automatically. • Minimizes development time substantially. • Reduces manual coding.

6. ISS Solution Components

7. The Dilemma • How many vendors supply 100% of the business software your organization requires? • How many of your business partners use 100% compatible software to yours? • How many mergers or acquisitions come with the same business software as your organizations? • How many have their legacy integration completely under control? • How much are you spending integration?

8. The Dilemma - Plug and Play • How is it achieved? • Research says that 30 - 40% of IT budgets is spent on integration • How can this costbe slashed? • How can this barrier come down? • What technologies are involved?

9. The Problem • US $82 Billion spent on application integration in 1998 (Forrester Research) • 30 - 40% of corporate IT budgets spent on application integration. • 20% to 80% of the cost of implementing a new application is cost of integrating it to other applications. (Forrester Research, 1998)

10. The Dilemma • How can this cost be slashed? • How can this barrier come down? • What are the real goals? How do I get there?

11. The Goals of the Solution • Lower cost of ownership • Agility

12. Connected! The Vision

13. Historical Approaches • In the Beginning, there was • Custom Applications, and • each company built their own. • 250 people • $5,000,000 budget

14. Current Practice • Companies have moved to use Packaged applications • SAP, PeopleSoft, Manugistics, I2, Sales & Marketing, Vantive, APS, MES and others. • …but Integration is still point-to-point! • 50 people • $500,000 budget

15. Coming Practice • Packaged applications still flourish • .. But now companies want packaged INTEGRATION as well. • This requires a new way of thinking, and a new product opportunity (EAI) • 5 people • $50,000 budget

16. Enterprise BusinessUnit n BusinessUnit 2 BusinessUnit 1 Supplier Customer Integration Back Bone The Business Environment

17. Best Practices Model From <many to many> to <many to one>

18. The mathematics of scaling up For traditional point to point integration: The number of possible connections among any number of items is n(n-1) for two way connections. Number of components to integrate Apply traditional formula The graphical growth n = 5 5(4) = 20 n = 10 10(9) = 90 n = 15 15(14) = 210 n = 20 20(19) = 380

19. Cost of traditional integration 2 FTEs 9 FTEs 21 FTEs 38 FTEs Cost Example For point to point integration Assume a simple formula of 0.1 FTE per interface: Number of components to integrate Apply traditional formula n = 5 5(4) = 20 * 0.1 = n = 10 10(9) = 90 * 0.1 = n = 15 15(14) = 210 * 0.1 = n = 20 20(19) = 380 * 0.1 =

20. The mathematics of scaling up For best practices integration: The number of possible connections among any number is n * 2.0 Number of components to integrate Best practices formula The graphical growth n = 5 5 * 2.0 = 10 n = 10 10 * 2.0 = 20 n = 15 15 * 2.0 = 30 n = 20 20 * 2.0 = 40

21. Cost of best practices integration Number of components to integrate Apply best practices formula 1 FTE 2 FTEs 3 FTEs 4 FTEs n = 5 10 * 0.1 n = 10 20 * 0.1 n = 15 30 * 0.1 n = 20 40 * 0.1 Cost Example For best practices integration: Assume a simple formula of 0.1 FTE per interface:

22. A Virtual Object Model

23. Invoicing General Ledger Order Mgt Accts Receivable Pricing Inventory Cost Recipe for Integration • Integration scenario selection • Component Identification • Process mapping & reconciliation • Data mapping & reconciliation • Data synchronization • Transaction Processing • Querys • Reporting • Security

24. Messaging Middleware • PSC’s SonicMQ • IBM’s MQ Series • Microsoft’s MSMQ • CrossWorld • Active Software’s ActiveWorks • TSI’s Mercator (mapping tool)

25. Business-Process Integration Tools • Vitria’s Businessware • Tempest Software • Oberon Software’s Prospero • ISS Group’s WorkQ

26. OAGI Integration tools • Frontec - EDI history • CrossWorld - Point-to-Point • Extricity - Business Scenarios • MBS - Java-based system • BusinessBus - Compaq enters • IBM - MQ-Series • ISS Group - API Gateway • QAD - Q/LinQ

27. Importance of Customer Relationships IBM Division: Each 1% Increase in Customer Satisfaction = $257 Million Revenue Chrysler: High Satisfaction Dealers Spend 25% less on Advertising Per Car Sold American Express: Retaining Existing Customers Cost 1/15 of Replacement Customer Relationships = $$$ Source: Arthur Andersen

28. CRM Is a Business Strategy • Not a Single Application or Technology • CRM Is a Business Strategy • Focuses on the Relationship • Focuses on Placing the Customer in the Center of All of Your Processes

29. Customers Now Pick the Channel Web & Email • 24x7 • Visual Call Center • Convenient • Immediate Field Visits • Hands-on • Consultative Customer Resellers • Local • Multivendor

30. Islands of Information Web & Email • 24x7 • Visual Call Center • Convenient • Immediate Field Visits • Hands-on • Consultative Customer Resellers • Local • Multivendor

31. Back-Office Integration Is Part of the Strategy "Everyone is talking about CRM giving them the ability to cross-sell and up-sell, but--guess what--the data you need to do that well is embedded in the ERP system." David Caruso, an analyst with Boston-based AMR Research. Source: eBiz Magazine

32. Bridging the Gap Back Office Web & Email Front Office Legacy Call Center ERP Customer Information ERP Legacy Field Manage, Coordinate, and Synchronize All Customer Touchpoints !! Channel Partners

33. Improve Marketing and Selling Strategies Use ERP Data to Plan, Manage, and Execute Targeted Marketing Campaigns and Selling Strategies Generate New Opportunities With Existing Customers Profile Customers, Track Buying Habits, Preferences Integrate Product Orders Exchange Order Data in Real-Time Between ERP and CRM Applications Enable Access to ERP Order Entry Functions From Within CRM Applications Accelerate Order Fulfillment Track and Trace Orders Throughout Order Life Cycle Provide Real-time Availability Checks, Track Order Status, and Delivery Dates Contract, Billing, and Financials Management Provide Access to Customer Billing Information and Account Status Improve Customer Interactions Eliminate “Islands of Information” The Value of Integration

34. Siebel-to-MFG/PRO Connector • Exchanges key data sets • Customer Records • Items/Products • Sales Orders • Integrates the sales order processes between Siebel and MFG/PRO • View MFG/PRO Data Within Siebel • Order Status • Inventory Detail • Customer Accounts • Pricing Inquiries • Billing History • Bi-Directional Integration Forms a Closed Loop System • Real-Time Data Sharing and Synchronization Processes

35. Integration Model

36. Siebel Integration with MFG/PRO • Siebel maintains customer records and passes the information into MFG/PRO via custom APIs • Using an ActiveX Browser control, ISS Group’s B2B Web component (TPT) is embedded within Siebel to add and update records in the MFG/PRO database • Information is updated and validated via TPT in real-time

37. Synchronization Services • ISS’s JAVA (MOM) Adapter is used to convert data into XML messages from MFG/PRO • XML messages are passed to the MQSeries queue • Siebel’s MQSeries Receiver listens for XML messages in queue • Siebel Business Services are used to insert, update and delete messages from the queue into the Siebel DB using Siebel Integration Objects (IOs)

38. Siebel to MFG/PRO Integration Product Demo