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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

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outline
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
outline3
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
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 environment5
Change of business environment
  • companies want to: maximize their business results
    • Revenues up
    • profits up
    • costs down
  • Growth becomes critical
state of the enterprise
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
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
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
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
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
soa in action example

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
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

outline13
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
eerp concept 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 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
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 optimization17
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
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
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
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
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
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
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
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
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
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.
outline27
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
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
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
EERP: QoS(3/9)
  • Service can be combined and complex
  • QoS measurement in a recursive way
eerp qos 4 9

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)
eerp qos 5 9
SOA as an application pattern:

loosely coupled

dynamic binding

Registry

Consumer

Provider

EERP: QoS(5/9)
eerp qos 6 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

eerp qos 7 9
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
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
EERP: QoS(9/9)

Quality assessment can be multi-objective:

Cost/time/accuracy/…… or any combination of them

eerp service management
EERP: Service management
  • Service describe
  • Service structure and re-structure
  • Service auditing
  • Service life-cycle management
outline38
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
eerp service granularity
EERP: Service granularity

Three types of service according its semantic meaning:

  • Fine granularity service
  • Medium granularity service
  • Coarse granularity service
eerp service granularity40
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 granularity41
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 granularity42
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 granularity43
EERP: Service granularity
  • Service optimization based on service reuse efficiency measurement
slide44

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
outline45
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
standards to be researched on
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
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 soa48
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
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 soa50
QoS deployment standard based on SOA

Main content:

  • 1. QoS deployment patterns in SOA systems;
  • 2. QoS deployment methods with each deployment pattern;
qos integration standard based on soa
QoS integration standard based on SOA
  • Function: In SOA systems, low-level services of business operation form high-level services gradually. During the integration process, how to ensure QoS of combined services.
qos integration standard based on soa52
QoS integration standard based on SOA

Main content:

  • 1. QoS integration patterns in SOA systems;
  • 2. QoS integration methods with each integration pattern;
service re structure standard based on soa
Service re-structure standard based on SOA
  • Function: SOA-based system consists of multiple level, multiple granularity services. Service granularity greatly effects reusability, reuse efficiency, and service management efficiency. This standard focuses on optimization and assessment methods of services through service re-structure.
service re structure standard based on soa54
Service re-structure standard based on SOA

Main content:

  • 1. Service re-structure patterns in SOA systems;
  • 2. Service re-structure methods;
  • 3. Assessment of services after re-structure;
service auditing standard based on soa
Service auditing standard based on SOA
  • Function: SOA-based system consists of multiple level, multiple granularity services. This standard focuses on auditing methods of service quality through service re-structure.
service auditing standard based on soa56
Service auditing standard based on SOA

Main content:

  • Service quality auditing standard based on SOA;
eerp business process definition standard
EERP business process definition standard
  • Function: Business process definition form the fundamental of EERP systems’ design and implementation. This standard will put forward a uniform, consistent, integrate-able description method, which is needed by EERP, to support requirement analysis, design, implementation and dynamically optimization.
eerp business process definition standard58
EERP business process definition standard

Main content:

  • 1. EERP business process definition based on SOA;
  • 2. EERP business process description methods;
eerp business process quality assessment standard
EERP business process quality assessment standard
  • Function: Quality assessment is one the most important activity in design and implementation of EERP. This standard put forward quality assessment method for EERP systems, which will guide the building of EERP systems.
eerp business process quality assessment standard60
EERP business process quality assessment standard

Main content:

  • 1. Quality assessment hierarchy of EERP business process;
  • 2. Quality assessment criteria of EERP business process explained in detail;
  • 3. Methods to decide weights of quality assessment criteria;
eerp business process auditing standard
EERP business process auditing standard
  • Function: Business processes effects the assessment result of EERP system greatly. EERP business process auditing standard provides method to measure performance of EERP system.
eerp business process auditing standard62
EERP business process auditing standard

Main content:

  • 1. EERP business process assessment hierarchy;
  • 2. EERP business process auditing methods;
outline63
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
eerp reference implementations 1 2

EERP

portal

Target value chain building

End user

Operation target selection

Service

segmenting

Service

management

portal

Service

management

platform

(UDDI)

QoS

Service register

Service publishing

Maintain portal

EERP soft computing grid

(BPEL4WS)

System admin

EERP: Reference implementations(1/2)
eerp reference implementations 2 2
EERP: Reference implementations(2/2)

Step-wise implementation

  • Scenario analysis, value chain building
    • Decide all related services and operation mode
  • Analysis scenario in offline, batch-mode
    • Aiming at the whole value chain operation
  • Consummate related services step-by-step
    • Primary application, complex application, real-time business
  • Integrate into operational system, form a dynamic whole scenario
    • Reflect effects of environment changing on business operation
outline66
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
eerp top down service design deployment strategy
EERP:top-down service design&deployment strategy

Step 1

Step 3

Step 5

Step 7

Business

ontology

definition

Service oriented

analysis

Service

implementation

deploy service

to EERP platform

Step 2

Step 6

Step 4

Service testing

Business

process

discovery

& definition

Service oriented

design

eerp an agile service improvement strategy
EERP:an agile service improvement strategy

Step 1

Step 2

Step 5

Top-down analysis

Business performance

/QoS statistics

Service

implementation

Current stat/

Business model

Step 6

Step 3

Service testing

Service oriented

analysis

Step 7

Step 4

deploy service

to EERP platform

Service oriented

design

Step 8

service

QoS assessing

/retrospecting

Current stat/Business model

Implementation & deployment

eerp top down business process orchestration strategy
EERP:top-down business process orchestration strategy

Step 1

Step 3

Step 5

Step 7

Business

ontology

definition

Service discovery

Service

orchestration

execution QoS

auditing

Step 6

Step 8

Step 2

Step 4

Service

(business process)

execution

service QoS

recording &

assessment

Business goal

Investigation/

definition

QoS deployment

& calculation

outline70
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
outline74
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
changfeng alliance s contribution 1 3
ChangFeng Alliance’s contribution(1/3)
  • Organized numerous SOA discussion sessions among the 33 member companies in the past 2 years.
  • Established the strategic partnership and cooperation with OASIS, the leading SOA technology standard organization with over 64 countries participated.
  • I was successfully elected to be a member of TAB, the only Asian member ever in the TAB.
  • Published the ChangFeng SOA Strategy Whitepaper, developed a three year plan to lead the SOA advance and commercilization.
  • Helped our member companies to acquire the first SOA related projects.
changfeng alliance s contribution 2 3
ChangFeng Alliance’s contribution (2/3)

ChangFeng alliance organized 4 working groups to address the standard issues:

  • RM for EERP
    • Based on OASIS RM, propose a RM for SORP/EERP for specific industry verticals.
  • Design methodology for EERP
    • Develop a suite of ROI analysis, system analysis, value chain identification and service choreography guideline and so on.
  • QOS management for EERP
    • Quality model, protocol and end to end QoS insurance.
  • Best implementation practice for EERP
    • Standard test suite for service qualification, system test before online, and so on.
changfeng alliance s contribution 3 3
ChangFeng Alliance’s contribution (3/3)

In next 3 years, ChangFeng alliance will organize across the country:

  • 5,000 certified EERP webservice developers
    • Open sources
  • 50,000 registered technical participants
    • Contributed through IM, Blog, and email.
  • UDDI service
    • Test, publish, search, ….
  • EERP portal with service integration support
    • Various industry vertical and consumer services.