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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 EERP design&deployment strategy
EERP integration platform ChangFeng Alliance's contribution on EERP
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 business environment is tougher tha
n ever: more demanding customers intense competition new regulation Globalization ongoing march of technology
companies want to:
Change of business environment companies want to: maximize their b
usiness results Revenues up profits up costs down
Growth becomes critical
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… 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 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 organization
s – not IT Better correlation with Business
Implications Re-factor existing systems extracting correct busines
s services
Service Oriented ArchitectureFocus on exposing units of business log
ic as services. They are:
loosely coupled,
standards based,
message driven,
published and discoverable
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)
PurchasePurchase
E-commerceE-commerceportalportal
CRM CRM
Fulfillment servicesFulfillment services
Authentication Authentication and and authorization authorization servicesservices
Credit authorizationCredit authorization
Billing servicesBilling services
Ack/ReceiptAck/Receipt
Triggers a Triggers a business processbusiness processImplemented by a Implemented by a
set of servicesset of services
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
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 With SOA and open standard, we can now help ente
rprises 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 a
n specified value chain.
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 e
nterprise 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
SCMServices
CRMServices
ERPServices
MRP IIServices
…… Service layer
Real-time auditing
& measuring
EERP platformExtended
UDDI
QoSdesc
Intelligent searching & scheduling
Business goal
Optimize for time
Optimize for profit
Optimize for ……
Real-time Value Chain Optimization
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 briefingHow does it work? Vendors base on EERP principle to develop next g
eneration enterprise application; SaaS for enterprise application Backend platform to support flexible service choreograp
h 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 EERPEERP 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 cho
reograph 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 ch
ain to achieve end to end QOS assurance.
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)Reference implementation A furniture manufacturer.
Value chain identification Service-lization: SCM, ERP, CPM (channal partner m
anagement), 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 operation
al systems
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)
Reference implementation GSP (government service platform)
20 government processes selected Objectives identified as: fast throughput, tighter c
ontrol, 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)
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)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)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.
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)
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)
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) Service can be combined and complex
Service A
Service A1 Service A2
Service B
Service A11 Service A12
Topmost business process
granularity
QoSMeasurement
For alllevels
QoS measurement in a recursive way
EERP: QoS(4/9)
Internet
Distributed computing
Distributed object/component
CORBA DCOM Java/EJB
Web Service
Service Grid
Parallel computingdistributed system
clusteringMeta computing
Computing grid
SOA
EERP: QoS(5/9)
Registry
Consumer Provider
SOA as an application pattern: loosely coupled dynamic binding
EERP: QoS(6/9)
Registry
Consumer Provider
Ubiquitous service QoS measurement and management Stand-alone QoS management Dynamic auditing Dynamic data exchange with UDDI
Quality management
center
Exchange info
AuditAudit
EERP: QoS(7/9)Two approaches for consumer to find a service that match i
ts requirement Look for service in Registry only Look for service in Registry and Quality management ce
nter both(QoS on demand)
Registry
Consumer Provider
Quality management
center
Exchange info
describe
Query a
nd answ
erRegistry
Consumer Provider
Quality management
centerExchange info
describe
Query a
nd answ
er
Query and answer1 12
Extended service info(with Q
oS)
QoS InfoRegistry Info
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)
Quality assessment can be multi-objective:
Cost/time/accuracy/…… or any combination of them
EERP: Service management Service describe Service structure and re-structure Service auditing Service life-cycle management
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
Three types of service according its semantic meaning:
Fine granularity service Medium granularity service Coarse granularity service
EERP: Service granularity granularity effects service re-usability greatly
coarse
Service Re-use scale
large
small
Re-use efficiency
low
high
re-usabilityre-usability
high
low
stability
high
low
fine
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 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 in full life-cycle of infomationalization
requirement analysis
design coding testing deploy system run maintenance upgrading invaliding
Low cost Short time extensibility configurable Easy to maintenan
ce Dynamic adaptatio
n
•Standards•Prototype•Service
•Platform•Application
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 QoS assessment criteria hierarchy based on SO
A 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 stan
dard EERP business process auditing standard
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 SOAMain content: 1. QoS assessment criteria hierarchy bas
ed on SOA; 2. QoS assessment criteria explained in
detail; 3. Method to decide weights of assessme
nt criteria ;
QoS deployment standard based on SOA Function: To ensure services complete w
ith 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 SOAMain content: 1. QoS deployment patterns in SOA
systems; 2. QoS deployment methods with ea
ch deployment pattern;
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 SOAMain content: 1. QoS integration patterns in SOA s
ystems; 2. QoS integration methods with eac
h integration pattern;
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 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
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 SOA
Main content: Service quality auditing standard
based on SOA;
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 standard
Main content: 1. EERP business process definition
based on SOA; 2. EERP business process
description methods;
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 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 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 standard
Main content: 1. EERP business process
assessment hierarchy; 2. EERP business process auditing
methods;
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)
Target value chain building
Servicesegmenting
EERP soft computing grid(BPEL4WS)
Service management
platform(UDDI)
Service
managem
ent portal
EE
RP
portalM
aintain portal
Service register
Service publishing
System admin
End user
Operation target selection
QoS
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
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
Business process
discovery & definition
Business ontology definition
Service oriented analysis
Service oriented design
Service implementation
Service testing
deploy serviceto EERP platform
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
EERP : an agile service improvement strategy
Business performance/QoS statistics
Service oriented analysis
Service oriented design
Service implementation
Service testing
deploy serviceto EERP platform
Step 3
Step 2
Step 4
Step 5
Step 6
Step 7
serviceQoS assessing/retrospecting
Top-down analysis
Implementation & deployment
Current stat/Business model
Current stat/Business model
Step 8
Step 1
EERP : top-down business process orchestration strategy
Business goal Investigation/
definition
Business ontology definition
Service discovery
QoS deployment& calculation
Service orchestration
Service(business process)
execution
execution QoSauditing
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
service QoSrecording & assessment
Step 8
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
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) 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 organized 4 working groups to address the standard issues:
RM for EERP Based on OASIS RM, propose a RM for SORP/EERP for spe
cific 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 befor
e online, and so on.
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.