IT Basics for Supply Networks/5

1. IT Basics for Supply Networks/5 Dr. Withalm 2-Nov-14

2. Lectures at the University of Bratislava/Autumn 2014 30.09.2014 Lecture 1 Introduction in CNO’s & Basics of Supply Networks 07.10.2014 Lecture 2 Kanban & Essential Supply Chain Processes 21.10.2014 Lecture 3 Business Processes & Semantic Web 11.11.2014 Lecture 4 SOA and SOA basing on J2EE 18.11.2014 Lecture 5 B2B & Cloud Computing including SaaS Dr.Withalm

3. Summarizing of Lecture/1 • Business Aspects • Fundamental Definitions of CNO’S & Examples • Assessments • CMMI • ECMM • Serious Gaming • COIN as Paradigm Project • ITA COIN Collaboration • Kanban • SCPP (Supply Chain Process Platform) • Challenges & Requirements on CDCP • DCP (Demand Capacity Planning) • CDCP (Collaborative Demand Capacity Planning Dr.Withalm

4. Summarizing of Lecture/2 • Brief introduction of ARIS • Connection SOA with ARIS • Event Control – Event Driven Process Chain (EPC) • Function Allocation Diagram • Information Flow Diagram • Event Diagram • Function Organization Data • EPC/PCD • Semantic WEB • Example • Ontology • Connection to WS • Overview of SOA • SOA and WS and related Technologies • Future of WEB Applications • Event-Driven Business Processes • SOA basing on J2EE • Change of Architectures • SOA Concept • SOA in J2EE • Servlets • Portlets • Implications Dr.Withalm

5. Today’s Agenda • SaaS • Origin • Major Trends • Back Ground & Context • Business Strategies • Business Models • Metaphor • Ingredients • Premises • IBM’s View • Methodology • B2B Frameworks • Overview • Conclusions • Cloud Computing • Definition • Service Delivery Levels • Deployment Models • Architecture • Standards • Example Dr.Withalm

6. B2B Frameworks/1Overview/1 • The first step towards this goal has already been taken in the past using Electronic Data Interchange (EDI) concept. • However, the increasing use of Web protocols, such as HTTP, and the remarkable success of HTML • have favoured more flexible solutions, notably XML. • Hence, most B2B frameworks are built heavily on XML. • Typically a B2B framework is a XML-based and middleware-neutral document specification • though most of the B2B frameworks require the use of Internet and Web protocols • such as HTTP, SSL, and MIME. Dr.Withalm

7. B2B Frameworks/2Overview/2 • Originally, B2B frameworks focused solely on developing vendor-independent specifications • for a set of documents to be exchanged between business partners. • Lately, the frameworks realised the need to coordinate the actions of different business partners • so that, business partners should definitely agree on the structure of documents they exchange • but they should also know when to exchange those documents • and how to articulate those external exchanges with their internal business processes. Dr.Withalm

8. B2B Frameworks/3Overview/3 • As a result, B2B frameworks have begun focusing both on document format and on CBP’s (Cross organizational Business Processes) • that concern the exchange of those documents. • Some of these B2B frameworks specify the infrastructure required for business partners • to implement those exchanges. • In other words, some frameworks specify both message format and exchange sequence • and some specify the message format and an infrastructure • which allow business partners to define and implement their own interactions. Dr.Withalm

9. B2B Frameworks/4Summary/1 • Electronic business is not an invention of the Web • Already in the 80’s a standard for Electronic Data Interchange (EDI) was established • Mainly focusing on business data • Technological driver of B2B frameworks was XML • United Nations bodies, OASIS (Organization for the Advancement of Structured Information Standards) and vendors fostered the development of standards • Partly standards are focusing on business data • Whereas the others tried to standardize business processes • Between the involved companies of electronic business Dr.Withalm

10. B2B Frameworks/5Summary/2 • To the first group belong: • ebXML which focuses on CPP (Collaboration Partner Profile) and CPA (Collaboration Partner Agreement) • Are in some way a superset of WSDL • cXML defining structures of purchase orders or order acknowledgment • UBI ended in a standard and is more or less successor of EDI Dr.Withalm

11. B2B Frameworks/6Summary/3 • To the second group belong: • RosettaNet providing dictionaries, PIP (Partner Interface Processes), and TPA’s (Trading Partners Agreement) -including 5 modules • OBI entailing a buying organization • Biztalk specifies message formats that encloses documents: provided on MS servers • Bolero.net is running on a server owned by an independent third party-focusing on trading processes • tpaML provides a special language to express agreements between business partners Dr.Withalm

12. B2B Frameworks/7Summary/4 • Two of them are meta frameworks: • eCO architecture is an abstract architecture for B2B frameworks • XCBL is a set of XML building blocks and a document framework Dr.Withalm

13. B2B Frameworks/8Summary/5 • There are some of B2B frameworks such as • ebXML, RosettaNet, OBI, cXML, BizTalk, bolero.net • The most relevant important standards are ebXML, RosettaNet and cXML • even if they are very different. • Web service standards defines a standard infrastructure • for locating and invoking remote application services • within and between organisations. • This is a primitive set of standards • really an approach to application development, similar to older standards • such as distributed objects and component-based programming • but easier to understand and deploy. Dr.Withalm

14. B2B Frameworks/9Summary/6 • The ebXML, RosettaNet and to a lesser extent cXML standards • generally speaking, relate to, how information moves between companies • including format and process. • cXML and UBL offer a standard definition of commonly used business documents. • From the largest software companies • to new industry solution providers • to open source projects • providers of such tools are world-wide. Dr.Withalm

15. Cloud Computing/Definition • The notion of what exactly is cloud computing is ... cloudy -- numerous definitions exist. A rather well-founded definition is provided by the US National Institute for Standards and Technology (NIST) • Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources • e.g., networks, servers, storage, applications, and services • that can be rapidly provisioned and released • with minimal management effort or service provider interaction. • As most other definitions, NIST's definition describes three service-delivery models for cloud computing Dr.Withalm

16. Cloud Computing/Service Delivery Levels • Cloud Software as a Service (SaaS) • The capability provided to the consumer is to use the provider's applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as a Web browser (e.g., web-based email). • Cloud Platform as a Service (PaaS) • The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider (e.g., java, python, .Net). • Cloud Infrastructure as a Service (IaaS) • The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. Dr.Withalm

17. Cloud Computing/SaaS Layer • The SaaS layer is regarded as the application layer, delivering applications over the browser or composite high-level services. • It's important to mention that cloud computing is not stuck to thin-clients. • The smart phone shows that the smart client is used in practice. Therefore, new client technology, running as plug-in in the browsers, • for example Microsoft's Silverlight, Adobe's AIR, Flash, Java FX,Google Chrome, are required to deliver the required user experience. • Prominent examples are, Microsoft online (BPOS) and live, Goggle Apps, Salesforce CRM, • SuccessFactors, Apple's AppStore and many more. Dr.Withalm

18. Cloud Computing/PaaS Layer/1 • The PaaS layer consists of a platform technology and typical foundation infrastructure services. This could be split up in the platform and service. • The architectural platform aspect can be compared to a typical desktop operating system and infrastructure services to typical network services required in an enterprise environment. • The platform part covers the abstraction for resource management • computation, storage, network • The service part covers services for • directories, search, billing. Dr.Withalm

19. Cloud Computing/PaaS Layer/2 • Current examples are Windows Azure, Goggle App Engine, Force.com. All three offerings can be regarded as PaaS, but are very different. • Windows Azure is much like an .net operating system open for developing like for an on-premise OS • Google App Engine is intended to allow glue logic in Java and Python for Google Apps • Force.com is a fully proprietary platform with specific programming language and useful services in the CRM domain. • The common advantage of cloud platforms is their focus on scalability, reliability and low operating cost. • Existing applications cannot be transferred from on-premise to cloud platforms; • they typically have to be reengineered in order to gain the benefit of seamless Internet scale. Dr.Withalm

20. Cloud Computing/IaaS Layer • The IaaS layer covers all the current offerings in the virtualization domain. • The market leader is Amazon (Elastic Cloud) • typically offering hosted operating systems like Windows or Linux. • These virtualized offerings allow fast scale of virtualized hardware, but does not scale up applications, if they are not developed for scalability already. • But also the new types of services, called storage services are related to the infrastructure level. • Prominent offerings are: Amazon Simple Storage (S3), SimpleDB, Windows Azure Storage, Google Storage. • Furthermore, infrastructure services for synchronization are provided. Dr.Withalm

21. Cloud Computing/Deployment Models • Private cloud • The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise. • Community cloud • The cloud infrastructure is shared by several organizations (e.g. SC, CNO) and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise. • On-premises software is installed and run on computers on the premises (in the building) • off-premises software is commonly called "software as a service" or "computing in the cloud." • Public cloud • The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. Dr.Withalm

22. Cloud Computing/Hybrid Cloud • These deployment models can be mixed as a "hybrid cloud": • the cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique • entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting). Dr.Withalm

23. Service View vs. Architecture View • The big number of different definitions and the current buzz around cloud computing, leads to different interpretations of cloud computing. • Therefore, a cloud computing reference architecture model is introduced which allows • relating technological and architectural aspects to service view aspects. • Cloud computing novelty comes from the composition of existing technologies combined with new business models for software and service selling. It's not a single new technology. Dr.Withalm

24. Cloud Computing Architecture Dr.Withalm

25. Cloud Computing/Standards • Cloud computing heavily relies on Web standards (protocols, e.g. SOAP and REST, security, e.g. SAML (Security Assertion Markup Language ),OAuth (Open Authorization), etc.) • but there are no specific cloud computing standards for elements and processes • such as APIs, the storage, data import and export, and backup. • Furthermore, application portability is difficult, because the platform concepts differ in resource scheduling and resource access and control from current on-premise concepts. Dr.Withalm

26. Cloud Computing @ SIS • Establishing an all over concept of Cloud Computing • Dynamic delivery of ICT services in the form of • Applications (SaaS) • Platform services (PaaS) • Infrastructure services (IaaS) • The three blocks – SaaS, PaaS and IaaS – should not be looked at in isolation: they have mutual interrelationships that have to be taken into account in forming business models. Dr.Withalm

27. Cloud Computing /Framework of NISTNationale Institute of Standards and Technology Dr.Withalm

28. Cloud Infrastructure/Siemens Dr.Withalm

29. From a Linear Value Chain to a Cloud Computing Ecosystem Dr.Withalm

30. Business Models Dr.Withalm

31. Maturity Model The business models can be classified and assessed by means of a maturity models and the value chain. The maturity model has different service level development stages in SaaS, PaaS and IaaS. Dr.Withalm

32. Cloud Computing/Success Factors/1 • Generic cloud computing aspects • Low price • Flexible contractual models • Relevant factors in SaaS • Best-of-breed support for the company processes that are mapped • The provider’s economic reliability • Integration and migration interfaces • References and flexible price models Dr.Withalm

33. Cloud Computing/Success Factors/2 • Key aspects for PaaS providers • Size of the community entrusted with developing the technology in question • Simplicity of service deployment • Architecture frameworks that support automatic scaling • Key aspects for IaaS providers • Leveraging economies of scale • Advantages in price/performance ratio • Availability • Security • Network connection’s bandwidth Dr.Withalm

34. Cloud Computing/Examples/1CAPPER Supply C3 (CSC3) Dr.Withalm • CAPPER Supply C3 (Cloud, Common Processes and Collaboration) describes an elastic cloud of common processes within defined and structured communications patterns for sharing business process information • CSC3 is at the center of a new movement in software called Cloud Computing and Platform as a Service in which the application framework is provided as customizable web-based services. • Integrated portfolio for CAPPER Supply C3 • Software as a Service - provides many business applications that can be deployed out of the box, or used as templates for supporting the development of custom ones. All applications can be used independently from each other, while leveraging a common set of components and features. • Platform as a Service - offers an integrated platform for developing cloud applications that are natively elastic and multi-tenant. • Infrastructure as a Service - provides an elastically scalable infrastructure for the deployment of applications and the storage of data and documents. 02.11.2014 36

35. Cloud Computing/Examples/2CSC3 Services Dr.Withalm • CSC3 Services are designed for business processes that have event-driven needs within their applications and require a flexible, reliable, cost-effective communication solution that can scale seamlessly. • Characteristics • Platform independent communication manner • Collection of operations accessible via standardized messaging networks • Simple set up, operation and notification from any infrastructure • Highly scalable, flexible, and cost-effective capability to publish messages • CSC3 Services • CSC3 Data Model • CSC3 Workflow & Logical Model • CSC3 Permissions Model • CSC3 Integration Model 02.11.2014 37

36. Cloud Computing/Examples/3CSC3 Elastic Collaboration Dr.Withalm • Cloud Deployment Models • Privat Cloud • Community Cloud • Public Cloud • CSC3 Single Node • Elastic Collaboration with a Central Hosting Solution (DB) • CSC3 Multi Node • Elastic Collaboration Cluster with a one-to-one mapping to an Elastic Cloud Cluster • CSC3 Dynamic Node • Elastic Collaboration with a dynamic mapping and a cluster to cluster allocation 02.11.2014 38

37. Cloud Computing/Examples/4CSC3 Products Dr.Withalm CSC3 SPACE • Supply Chain Collaboration Processes • Customer Demand Management • Capacity Management • Vendor Demand Management • Partner Management • Group Management • Alert Management3SPACE • Link: https://space.csc3.org Interregional Planning Solutions • Creation of innovative networks and solutions between • regional development planning, • architecture, • economy and • governmental and academic partners • Delivery of e-services and e-government solutions across borders 02.11.2014 39

38. SaaS (Software as a Service)/2Overview • Origin • Major Trends • Back Ground & Context • Business Strategies • Business Models • Metaphor • Ingredients • Premises • IBM’s View • Methodology Dr.Withalm

39. SaaS (Software as a Service)/1Origins • Some ideas are coming from the “Big Iron” • also some similar ideas as “Thin Clients” and “Application service providing” are going back to the late nineties • The primary idea of SaaS is the following • provide the user with application functionality via web clients • instead to force to install the whole application on his PC. Dr.Withalm

40. Background and ContextDistinguishing ASP from SaaS Source: Summit Strategies, Inc “Software Powered Services: Net-native SaaS Transforms the ISV Business Model” Feb, 2005 Dr.Withalm

41. SaaS-U SaaS Subscription Value Driven (based on function commoditisation) Variable Usage (Metered) Hybrid (Fixed & Variable Usage) Simple Increments (modify CPU/ tiered models) Today’s Models (mostly fixed) Marginal cost > 0.0 Value based dynamic pricing Service infrastructure as utility Innovation focused Variable costs Shared resources Service oriented2463 2463 Fixed costs Dedicated resources Product oriented IT Plug IT Switch IT Tap Background and ContextA tentative Roadmap towards SaaS-U Dr.Withalm

42. Business Strategies • Intellectual property • Bundling • Standards • Open source • Long tail • “Free” • FUD (Fear, Uncertainty and Doubt) Dr.Withalm

43. Utility based business models: Issues & Questions Dr.Withalm

44. MetaphorElectricity • Infrastructure, i.e. cables (network, servers ...) • Different kinds of plug-ins (interfaces, no international standards) • Different adapters to appliances (integration of legacy systems) • Different utilities, i.e. high/low voltage • Different business models, i.e. business/private customers Dr.Withalm

45. MetaphorAMADEUS – IT Provider in Tourism • Infrastructure • A dedicated network, which provides different booking offers (flights, hotels, packages, events ...) • TOMA interface is the connector to the utilities • Utilities are different booking offers as • Flights, Packages: are provided by different organizations as airlines, tour operators, hotels ... • Business models consist of • Access price, which is a fixed price for a period • Booking fee, which is an amount of the whole booking price Dr.Withalm

46. Ingredients • Infrastructure containing • Payment services • Maintenance services • Monitoring services • Building of domain clusters / sub webs • Providing of domain specific services, which are separated in • Basic, horizontal, vertical ones • Services are built on the four cornerstones • Web2.0 • Web services, SOA • Semantic Web • Ontology • which induces the separation in domains • Interfaces to make services to be integrated with ERP and legacy systems Dr.Withalm

47. Premises • Technological • Eclipse, IBM Websphere, Microsoft Team Foundation Server • Semantic Web languages (OWL, RDF, etc.) • Domain competency • Especially in Automotive, Healthcare, Energy • Ontology • Basic knowledge how ontology could be established, • which in turn also requires deep domain knowledge. Dr.Withalm

48. IBM’s ViewManaged Hosting and Support for SaaS Solution Governance & Project Management Application Management Services Application Operations OS Management Helpdesk Level 2 Service Management & Reporting CustomerEnd-user Helpdesk (Level 1) Storage & Tape HW Infra & Mgmt Transition OS Security Mgmt Monitoring (alerting, escalations) Server Hardware Infra & Operations Data centre LAN infra & Operations Internet connectivity & Operations IBM ISV Dr.Withalm

49. MethodologySaaS/1 • EI Services which are available on the GSP (Generic Service Platform) will be provided via the SaaS concept. • which is an emerging concept for current and future networked enterprises • SaaS is a model for SW deployment with the following characteristics: • application is hosted as a service provided to customers across the Internet. • application must neither be installed nor run on the customer's own computer • alleviates the customer's burden of software maintenance, ongoing operation, and support. • customers relinquish control over software versions or changing requirements. • conceivably reduce that up-front expense of software purchases • through less costly, on-demand pricing. Dr.Withalm

50. MethodologySaaS/2 • From the software vendor's standpoint following issues are from importance: • it has the attraction of providing stronger protection of its intellectual property • establishing an ongoing revenue stream • may host the application on its own web server • this function may also be handled by a third-party application service provider (ASP). • This way, end users may reduce their investment on server hardware too. Dr.Withalm