guest lecture impact business question on application landscape

Impact of a Business QuestiononApplication Landscape

7 April 2015

Léon Smiers

2Copyright © Capgemini 2012. All Rights Reserved

Impact business question on application landscape

Agenda

Introduction

Impact areas for a business question

Examples & questions

Resume



Léon Smiers

Solution Architect for Capgemini

Over 25 years experience in Oracle Technology

Oracle BPM Thought leader for Capgemini

Co-inventor of CORA model

Author of “Oracle Case Management Solutions”

Impact areas for a business question



Business question impact areas

Change required by the Business

• Customer focused

• Compliance with regulations

• Cost reduction

• Higher success rate of investigations

• …

Impact areas

• People

• Process

• Technology



The business question,Why-What-How-With What

Contextual Why?

• Why this business change needed?

• Which objectives, what scope and which constraints?

Conceptual What?

• What is the specific question we’re looking at now?

Logical How?

• How Can we make logial groupings of the required functionality

Physical With What?

• What is the technology required to make this change

• What organizational changes are required

• What process changes are needed

Area of

investigation for

Solution

Architecture



The “How & With what” question - What is needed

Control over the IT landscape in a Hybrid environment

Risk assessment

Predictable, Repeatable and Risk-aware Solution Design

Vendor agnostic

7



Presentation

Composition

Integration

Application

Data

Channel

GovernanceSecurity

The CORA model

Map required functionality onto

Application layers:

Where are the dependencies?

Where is the bulk of the work?

Where are the risk areas?

http://www.coramodel.com




More information http://www.coramodel.com


Examples



Examples

Container Centralen

Stedin

Container CentralenGet insight in crate movement

in the logistic chain



Container Centralen ( CC )Pilot 2008

Largest pool manager of the Returnable Transport Items (RTI; e.g. trolleys, trays) in the Netherlands

RTIs travel between whole store’s, distribution centers (DC’s) and the stores

CC delivers RTI’s to all mayor supermarkets (C1000, Albert Heijn)

CC’s business drivers, We want to improve our profitability by lowering

• Theft

• Counterfeiting

Payment based on usage based model

Question at hand: Give us insight in the movement of crates in the logistic chain

In collaboration with



Proof of ConceptMovement of crates between three locations



Technology

RFID tags connected to the vegetable crates

Measure with RFID portalsat every location

RFID portal connected toback-end systems



Get insight in crate movement in the logistic chain

HeemskerkDC

SchuitemaC1000

measurement-

point

measurement-

point

measurement-

point

measurement-

point

measurement-

point

measurement-

point

Heemskerk Schuitema C1000In house In transit In house In transit In house In transit



Main functionalities and parties involved

Simplified functionality

Storage of RFID data (EPCIS data) at every location

Aggregation of movement data (Discovery Service)

Provisioning of movement data into portals (Track & Trace application)

Parties involved

Container Centralen

Factory Heemskerk

Distribution center

C1000 Bergen op Zoom

KPN

Truck drivers



Presentation

Composition

Integration

Application

Data

Channel

GovernanceSecurity

Container Centralen – Impact Storage of RFID data (EPCIS data)

HeemskerkDC Schuitema C1000

Receive message from

RFID Readers (TCP/IP)

(RFID Middleware)

Detailed RFID

transaction data

RFID

reader

RFID

readerRFID

reader

RFID

reader

RFID

readerRFID

reader

RFID

reader

RFID

readerRFID

reader

Receive message from

RFID Readers (TCP/IP)

(RFID Middleware)

Detailed RFID

transaction data

EPCIS-1 EPCIS-2

Data

Prote

ction

Local

DCS

Hosted

KPN





Presentation

Composition

Integration

Application

Data

Channel

GovernanceSecurity

Container Centralen – ImpactAggregation of movement data (Discovery Service)

Receive movement

message (REST)

Crate movement

aggregation

EPCIS-1 EPCIS-2

Data

Prote

ction

Secured

mes

saging

Hosted

KPN

Discovery service

Hosted

KPNLocal

DCS





Presentation

Composition

Integration

Application

Data

Channel

GovernanceSecurity

Container Centralen – ImpactProvisioning of movement data into portals

Combine movement /

detail data of crates

Overview pages of

crate movement Authen

tication

Autho

rization

Discovery Service

Track & Trace application

Secured

messagi

ng

Local

CC

Provide movement

data (Web Service)

EPCIS-1 EPCIS-2Hosted

KPNLocal

DCSHosted

KPN

Provide detail RFID

data (Web Service)





Resume impact of CC business question

• Training required for all logistics personell how to work with RFID readers

• Contracts with crate providers, adding RFID tags to crates

• All organizations in the logistics are required to place RFID readers and RFID middleware

• Container Centralen personell trained in making information from the Track&Trce data

• Hosting of software to external organizations

People

• Insight in the end-to-end movement of crates in the chain

• Track & Trace enables insight in theft, usage, cunterfeiting Process

• Hardware : RFID Readers, RFID tags on crates

• RFID Middleware (EPCIS)

• RFID Discovery Service

• Track & Trace application

Technology



End result pilot (2008)

No follow-up after pilot

Shortly after end of pilot we entered the Financial crisis

Costs involved too high

Every RFID tag 1US$ (2008)

Every location placement of RFID readers

Training of all personel involved in logistics chain



Questions for students

CC delivers crates to both C1000 and Albert Heijn, which are competing companies. How to ensure those companies that data is safe and cannot be seen by the competing companies?

What is the impact of a crate movement not registered?

What are the cost drivers of this solution

How does this solution impact the ‘people’ part of the solution

How do we recognize theft from the Track & Trace data?

StedinWork Order management for

placement of Smart Meters



Stedin Meetbedrijf

Stedin Meetbedrijf is responsible for servicing gas and

electricity meters for 2 million customers in the Netherlands.

(250 employees)

Main tasks are exchanging & installing meters &

collection of meter readings

Part of Stedin Netbeheer – Grid operator with 3 of the 4

largest dutch cities, highly urbanized area, including the port

of Rotterdam (1500 employees)

Part of Eneco Holding (5500 employees)

turnover: $ 7 billion



Rollout of smart meters

2007: Dutch government decided on obligatory rollout of smart meters

for every household by 2013, starting in 2009

Accurate billing

Meter reading (site visit or by customer) no longer needed

Insight in energy consumption

Saving of energy

More reliable electricity grids

2010: Bill passed to start with rollout on customer demand.

2012: Start of rollout on customer demand

2013: Evaluation of goals

2014: Possible start of complete rollout of smart meters

2020: EU goal: 80% of households smart meter installed



Business transformation 2006-2015

2006

100.000 site visits per year

involving meter exchange

Majority of the work:

•Maintenance

•Newly built housing

•50% done by internal

installation department

2015+

600.000+ site visits per year

involving meter exchange

Majority of the work:

•Smart meter installation

•10% done by in-house

installation department



Original timeline (2006-2010)



Project Grand Rollout Improvement Program- Demonstration



Work Order Management placement of smart metersFunctionality

Finish

Execute

Prepare

Insight

CRM

Planning

Financial

Product

catalogue

CRM

Work

Order

Process

Call Center

Interface

Functional

exception

handling

Tasks Portal

Completion

Process quality

Process control

Chain

optimization

Improved client

satisfaction



Work Order Management placement of smart metersInvolved parties

Finish

Execute

Prepare

Insight

CRM

Planning

Financial

Product

catalogue

CRM

Work

Order

Process

Call Center

Interface

Functional

exception

handling

Tasks Portal

Completion

Process quality

Process control

Chain

optimization

Improved client

satisfaction

Stedin

Departments

• Preparation

• Data Collection

• Call Center

• Warehousing

Stedin

Department

• Internal Service

provider

• Joulz

External Service Provider

• Imtech

• ..

Stedin

Departments

• Control

• Warehousing

• Finance

Stedin

• Managament



Presentation

Composition

Integration

Application

Data

Channel

GovernanceSecurity

Work Order Management placement of smart metersImpact

Prepare Execute Finish

Planning FinancialProduct

catalogueCRM

Internal integration

Stedin

Process

dataTransaction

data

Validation

Integration with

external providers

Imtech

Other

Service

Providers

Exception

handling

Workorder

browser

Browser PDA

Aggregated

management data

ReportingReal time

monitoring



Real time monitoringBAM – Example case of immediate benefit

33



Work Order Management placement of smart metersResults

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

2011

Wee

k 01

%

2011

Wee

k 03

%

2011

Wee

k 05

%

2011

Wee

k 07

%

2011

Wee

k 09

%

2011

Wee

k 11

%

2011

Wee

k 13

%

2011

Wee

k 15

%

2011

Wee

k 17

%

2011

Wee

k 19

%

2011

Wee

k 21

%

2011

Wee

k 23

%

2011

Wee

k 25

%

2011

Wee

k 27

%

2011

Wee

k 29

%

2011

Wee

k 31

%

> 5 dagen

<= 5 dagen



Resume

• Extra workforce internal to support large roll-out

• Contracts with external service providers (Imtech,..) for roll-out

• Ad-hoc activities by external service providersPeople

• End-to-end process execution

• Insight in process execution

• From 30% automated towards 99% automated (internally in Stedin)

Process

• Process management supported by BPMNS (Oracle)

• Flow of information through organization is validated in every step

• Real-time supported for KPI tracking (Oracle BAM)

Technology



End result project

Large roll-out of smart meters started

End-to-end work order management supported by processes and automation

External service providers can be added relatively quick to the end-to-end execution

Agreement on information delivered back from service providers

Agreement on financial handling

Agreement on quality levels



Questions for students

What is the impact of a reading not executed by a service engineer?

What do we need to do to include a new service provider?

What is the impact of adding new information for regulations purposes to the landscape?

Resume



Summary

When looking at the impact of a business question, do not forget the Why question

Change required by the business impacts

People

Process

Technology

We’ve focused on the Technology part of the impact with the CORA model

We’ve looked at two examples where impact was on all three areas People, Process, Technology



Contact information

Léon SmiersSolution Architect Oracle BPM/Case Management

[email protected]

+31 6 150 30 373

http://twitter.com/leonsmiers

http://www.capgemini.com/oracleblog

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The information contained in this presentation is proprietary.

© 2012 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

With more than 120,000 people in 40 countries, Capgemini is one

of the world's foremost providers of consulting, technology and

outsourcing services. The Group reported 2011 global revenues

of EUR 9.7 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on Rightshore ®,

its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

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