Linking SOA with SCOR using BPM tool By Debol Gupta
Topics • Why company use SCOR model? • What are the advantages of BPM? • What is SOA and it is business benefits? • How SOA and BPM can be embedded in SCOR model? • What are the tools to helps the synergy? • Future opportunity
A Complex Supply Chain Network Consumer Industry Process Hub Large Retail Customer Design Partner VAR Reseller Manufacturer Distributor Small Retail Customer Component Supplier VAR Reseller Manufacturer Distributor Distributor Raw Materials Supplier Manufacturer Distributor Corporate Customer Contract Manufacturer Logistics Net Market Logistics 3PL Logistics Provider
Why to use SCOR model ? • To simply and systematical approach of complex Supply chain model • SCOR is a reference model, which provides a head start to model your supply chain network • SCOR model consists of: • Major Processes ( PLAN, SOURCE, MAKE, DELIVER, RETURN) • Metrics ( KPIs and PPIs) to measure the processes • Best Practices: One company has achieved a good process using SCOR, then another company can adopt it with minor change( NO RE-INVENTING THE WHEELS) < SAVING IN $ and TIME>
SCC Supply-Chain Operations Reference-model (SCOR) 7.0 - Level 2 Processes P1 Plan Supply Chain P4 Plan Deliver P5 Plan Returns P3 Plan Make P2 Plan Source M1 Make-to-Stock S1 Source Stocked Products D1 Deliver Stocked Products Suppliers S2 Source MTO Products M2 Make-to-Order D2 Deliver MTO Products Customers M3 Engineer-to-Order S3 Source ETO Products D3 Deliver ETO Products D4 Deliver Retail Products Return Deliver Return Source Enable
Complex Supply Chain but simple to manage Suppliers WholesaleDistributors Retailers Manufacturers SupplierExchanges Customers LogisticsExchanges CustomerExchanges VirtualManufacturers ContractManufacturers LogisticsProviders Information Flows Goods Flow
Present Challenges • No process centric automatic tool in the market • Market opportunity is agile processes and process automation • End-to-end process automation • Good planning, indexing, engaging testing, and documentation before applying to production( real life situation)
What is Business Process Management? • A technical breakthrough • Takes advantage of recent componentization • It makes possible visibility and control • Across people, systems, and organizations • Closing the gap between management intent and execution • By means of directly executable business process models • While leveraging your existing IT infrastructure Maximize IT Efficiency & Effectiveness, Business Alignment, Drive Change
Why Business Process Management Systems? • Business Process Management Systems administer a business process across systems, people and organizations • Advancing performance accountability across the organization is one of the most pressing strategic imperatives and topics of concern in executive office suites, boardrooms, regulatory groups and Financial institutions • A process may be managed by a single BPMS or by a series of peer BPMSs, acting in concert. BPMS orchestrate the Process, IT system, People and Organizations
How to implement BPM tool? • Step1: Implement the “ASIS” plus obvious process improvement • Step2 : Simulate “TOBE”(no IT vs process trade off required) • Step3: Implement the most appropriate prioritized process • Step4: Review and iterate ( Review real-time. Optimized by process tool application)
What are the Advantages of Business Process Management (BPM) tool? • BPM is a software to help and improve the efficiency of business operations, processes and procedures • BPM has standard or customizable forms and templates to simplify new or current business processes · BPM help to Integration and collaboration between other business and IT systems or applications Continue…
What are the advantages of Business Process Management (BPM) tool? • BPM tool can be use in Six Sigma Projects and has interface with Minitab software • BPM has ability to use workflow to help automate processes. · BPM has Real-time and graphical monitoring and Reporting depending on the vendor. · BPM is integration of web enable services · BPM has Organization modeling and standardization between business processes.
Some BPM/BPA vendors… BPA BPM
SOA Resonates with CIO Challenges Facing the CIO • Leverage existing and future investment in IT • Decrease time-to-deployment of new application and technologies • Lower ROI and TCO • Limit project and technology risk • Improve agility • “Do More with Less”
What is Service Oriented Architecture (SOA)? • SOA is a design pattern for application • SOA is loosely-coupled • SOA application can be bound at runtime • SOA is platform neutral • SOA is distributed • SOA is point-to-point
Why Do I need SOA? • To answer the fundamental question for your CUSTOMERS, you will need to be able to help them THINK in terms of services • This means YOU will have to able to THINK in terms of SERVICES.
What is a Service? • Webster • The occupation or function of serving • This creates the concept of Service-Chain • Think of a general contractor • A service can be satisfied by a human or a machine
How the Service executed? Registry contract Find Register Service Consumer Service Provider Bind and Invoke
What are the benefits of SOA? • Greater re-use of IT assets • Lower Development cost • Reduce development project time • Reduce development risk • Faster time-to-deployment • Leverage existing investment in technology • Reduce vendor lock-in Continue….
What are the benefits of SOA? • Reduce business/IT divide • Increase organizational agility • Improves competitive advantage • Improves value chain collaboration • Enables rapid introduction of new business models
Technical view Role based, Intuitive Web based, consistent look & feel Multiple devices Enterprise Wide, Real-time Simplified application portfolio Rationalized infrastructure Agile architecture EAI/B2BI Robust search & retrieval Self-service/Collaboration Process view Increase Organizational Agility Improve Competitive advantage Improve Value Chain Collaboration Enables rapid introduction of New Business models Application of Service Oriented Architecture (SOA)