ibm ebiz infrastructure kevin 100226 2up

© 2010 IBM Corporation

ee--business Infrastructurebusiness Infrastructure““Technology for BusinessTechnology for Business””

Kevin Malone Software Technical Strategist

MSc (Computer Science)Fellow of The British Computer Society

Fellow of The Institute of Engineering and Technology

IBM Software UK

26th February 2010


Geographies

AsiaPacific

Americas

Europe,Middle East,

Africa

IBM GlobalServices

Systems and TechnologyGroup

Software Group

Research

Industry

CommunicationsDistributionFinancial ServicesIndustrialPublic. . . . .

Global Financing

400,000+ EMPLOYEES

170+ COUNTRIES

$100B+ ANNUAL REVENUE


1971

1974

1920

1873

1829

Build-out of Interstate highways IMF, World Bank

Separation of savings, investment banks SEC

Current period of Institutional Adjustment

Historical Cycles

Source: “Technological Revolutions and Financial Capital, Carlota Perez, 2002

1908

1875

1829

1771

Steam and Railways

Steel, Electricityand Heavy Engineering

Oil, Automobilesand Mass Production

Information and Telecommunications

The Industrial Revolution

Depression1893

Crash1929

Dot.comCollapse

Panic1847

Panic1797

INNOVATION DEPLOYMENTInterruption Frenzy Synergy Maturity

Formation of Mfg. industryRepeal of Corn Laws opening trade

Joint stock companies Industry exploits economies of scale


Today - a globally integrated enterprise… business without borders

21stCentury

The multinational era -- replicating

20thCentury

The international era -- exporting

20thCentury

The Evolution of the Corporation


In 2001, there were 60 million transistors for every human on the planet ...

… by 2010 there will be 1 billion transistors per human…

… each costing 1/10 millionth of a cent.


In 2005 there were 1.3 billion RFID tags in circulation…

… by 2010 there will be 33 billion.


Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 and expected to reach 4 billion by the end of 2008


One billion camera phones were sold in 2007, up from 450 million in 2006 …

3G devices growing 30% annually.


An estimated 2 billion people will be on the Web by 2011 ...

… and a trillion connected objects – cars, appliances, cameras, roadways, pipelines – comprising the "Internet of Things."


U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains.


In North America, up to 22 percent of total port volume is empty containers.

The Port of Jersey has 100,000 empty containers sitting in storage – worth nearly $200 million.


In the United States alone, 2.2 million dispensing errors are made a year because of handwritten prescriptions.


The U.S. healthcare system loses more than $100 billion a year to fraud.


In a small business district in Los Angeles, driving around for parking in one year generated the equivalent of 38 trips around the world, burned 47,000 gallons of gas, emitted 730 tons of carbon dioxide.

Congested roadways cost $78 billion annually in the form of 4.2 billion lost hours and 2.9 billion gallons of wasted gas.


In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600 miles…

…grocers and consumers throw away $48 billion worth of food every year.


In six years the power consumption of a server has risen from 8 watts to more than 100 watts per $1,000 worth of technology.

On average, for every 100 units of energy piped into a data center, only 3 units are used for actual computing. More than half goes to cooling the servers.

In distributed computing environments 85% of computing capacity sits idle.


People Processes Information

ExistingApplications & Data

Partners NewApplications

Connectivity Services

What are Businesses trying to Achieve ?


Phases of e-business Adoption

"An on demand business is an enterprise whose business processes– integrated end-to-end across the company and with key partners, suppliers and customers–can respond with speed to any customer demand, market opportunity or external threat."

"an evolutionary journey"

Integrate InternallyAccess Publish Transact Integrate Externally Adapt Dynamically

ACCESSACCESS INTEGRATIONINTEGRATION ON DEMANDON DEMAND

AA BB CC AA BB CCAA BB CC

Processes Bounded by Functions

Processes Extend Beyond Functions

Business Led Processes Extend to Value Nets

Service Oriented Architecture


Horizontal Integration is the New Challenge

Bridging the gap between business transformation and IT Bridging the gap between business transformation and IT

DatabasesW orld W ideW eb

W ebServer

Transactions

SupplierNetw orks

InternalSystem s

Custom erConnections

People Process Information


Case Study: Procure to Pay Process

Division

Where We Are Heading

Customer

Shared Service

Supplier

Outsourced


E01-EDI

Data Warehouse(Interfaces to and from the

Data Warehouse are notdisplayed on this diagram)

G02 - GeneralLedger

A05 - AP

S01 - SalesCorrections

I01 POReceiving

I03 Return toVendor

I06 WarehouseManagement

MaininframePC/NT apps Unix apps3rd Party Interface

S06 - Credit App

P15 EES EmployeeChange Notice

OTHER APPS - PC

AP - Collections/CreditTM - Credit Card DB

ACCTS REC APPS - PC

990COR

Bad Debt

Benefical FeesBeneficial Reconcil

JEAXF

JEBFA

JEBKAJEDVA

JESOA

JEVSA

JEVSFNSF

TeleCredit Fees

INVENTORY CONTROL APPS - PC

Code Alarm

Debit Receivings

Devo SalesDisplay Inventory

In Home

Junkouts

Merchandise WithdrawlPromo Credits

RTV Accrual

Shrink

AP Research - Inv CntrlAP Research-Addl Rpts

Book to Perpetual Inventory

Close Out Reporting

Computer Intelligence DataCount Corrections

Cross Ref for VCB Dnlds

Damage Write Off

Debit ReceivingsDFI Vendor Database

Display Inventory Reconcil

Display Inventory Reporting

INVENTORY CONTROL APPS - PC

DPI/CPI

IC Batching

Inventory Adj/Count CorrectInventory Control Reports

Inventory Levels

Inventory Roll

Merchandise WithdrawlOpen Receivings

PI Count Results

PI Time Results from Inv

Price Protection

Sales Flash Reporting

Shrink Reporting

SKU Gross Margin

SKU Shrink Level DetailUSM

VCB Downloads

Journal Entry Tool Kit

Scorecard - HR

L02-ResourceScheduling(Campbell)

P09 - P17Cyborg

M02 - Millennium

M03 - Millennuim 3.0

Banks - ACH and Pos toPay

Cobra

B01 - StockStatus

S03-Polling

P14 On-line NewHire Entry

CTS

Plan Administrators(401K, PCS, Life,

Unicare, SolomonSmith Barney)

D01 Post LoadBilling

I04 HomeDeliveries

I02 -Transfers

Arthur Planning

I07 PurchaseOrder

I12 EntertainmentSoftware

I05Inventory Info

E13E3 Interface

S04 - Sales Posting

V01-Price ManagementSystem

I10 Cycle PhysicalInventory

I55 SKUInformation

K02Customer Repair

TrackingI35 Early Warning

System

B02 MerchandiseAnalysis

I13- AutoReplenishment

U18 - CTO

Intercept

I09 Cycle Counts

E02-EmployeePurchase

Texlon 3.5

ACH

Stock Options

I17 Customer PerceivedIn-Stock

U16-Texlon

SiteSeer

C02 - CapitalProjects

F06 - FixedAssets

US Bank ReconFile

Star Repair

EDICoordinator

Mesa Data

NEW Soundscan

NPD GroupAIG Warranty Guard

Resumix

Optika

Store BudgetReporting

P16 - Tally Sheet

Cash Receipts/Credit

S05 - HouseCharges

Ad Expense

L01-PromoAnalysis

V02-PriceMarketingSupport

BMP - Busperformance Mngt

StoreScorecard

I11 PriceTesting

Valley Media

P09Bonus/HR

I15 Hand ScanApps

Roadshow

POS

S08 - VertexSalesTax

A04 - CustRefund Chks

Equifax

ICMS Credit

CellularRollover

S09 - DigitalSatelliteSystem

NPD,SoundScan

Sterling VANMailbox (Value)

I18SKU Rep

X92-X96Host to AS400

Communication

S02 -Layaways

Washington,RGIS,

Ntl Bus Systems

V04-SignSystem

I14 Count CorrectionsNARM

P01-EmployeeMasterfile

I06 - CustomerOrder

FrickCo

UAR - Universal AccountReconcilliation

DepositoryBanks

S07 - CellPhones

S11 - ISPTracking

AAS

Fringe PO

Cash Over/Short

L60 MDFCoop

SKU SelectionTool

SKUPerformance

SupplierCompliance

1

I35 - CEI

ASIS

Misc Accounting/Finance Apps - PC/NTCOBA (Corp office Budget Assistant)

PCBS(Profit Center Budget System)Merchandising Budget

AIMS

Merch Mngr ApprovalBatch ForcastingAd Measurement

AIMS Admin

AIMSReportingAd

Launcher

V03- MktReactions

SpecSource

CTO2.Bestbuy.com

RebateTransfer

SignSystem

CopyWriter'sWorkspace

ELTPowerSuite

StoreMonitor

AIS Calendar

Stores & Mrkts

Due Dates

Smart Plus

InsertionsOrders

BudgetAnalysis Tool

Print CostingInvoice App

AIS Reports

BroadcastFilter

Smart PlusLauncher

GeneralMaintenance

Printer PO

PrinterMaintenance

VendorMaintenance

Vendor Setup

Connect 3

Connect 3Reports

Connect 3PDF Transfe

Spec SourceSKU Tracking

S20-SalesPolling

Prodigy

PSP

In-HomeRepair

WarrantyBillingSystem

Process Servers(Imaging)

Prepared by Michelle Mills

IT Realities


"just good enough" infrastructure isn't


Quality of Service Requirements

Security $1K $2M $20M+Risk of Breach

SIMPLE INTERMEDIATE ADVANCED

Scalability 200 2,400 18MTransactions volume/Day

Availability $1K $200K $20MCost of outage/Human resources

Flexibility 5% 10% 75%% of data Required

Interoperability 2 4-8 8-16Number of participants applications types


Open Standards are not a Luxury

WebServices

OpenSource

HTML

J2EEXML

Standards Adoption

Industry Participation

Standards Development Open Internet

Open Platform

Web Services Leadership

Windows Linux AIX Solaris HP-UX OS/400 zOS

Universal Tool Platform

Enable integration across value-net / Increase deployment speed / Reduce costs

Web 2.0


The Virtual Workplace

Source: Nemertes Research, Inc.

58% of IT Executives consider their company to be a virtual workplace

90% of employees work in locations other than headquarters

Between 60% and 70% of employees work in different locations from their managers

The number of virtual workers has increased by 800% over the past five years

People


Today, many people work like this...

People


People could work like this …personalised and integrated with the business role

People


Virtualization of Integration

Portal


““Desktop of the FutureDesktop of the Future””

People

MashUp


What Is Web 2.0

Source:Dion Hinchcliffe’s

Web 2.0 Blog

People


Connecting PeoplePeople optimized

Dynamic (Web 2.0)

Processes and transactionsProcess

optimized

Integrated

Web 2.0 Technologies – the face of SOA

Information optimized

Publish Information

Point


Evolution of integration technologies…

Message Queuing TraditionalMessage Brokering

EnterpriseService Brokering

Application Application

Degree of Flexibility and Re-use

Direct Connectivity

Application

Lin

es o

f co

de

Application Services

Integration logic

IntegrationLogic

Middleware

Middleware

Service Oriented Middleware

Integration logic

Process


The Digital UniverseInformation Created, Captured and Replicated

2006161 Exabytes

2010988 Exabytes

6-Fold Growth in Four Years

About 25% of the digital universe is original (pictures recorded, keystrokes in an e-mail, phone calls etc.), while 75% is replicated e-mails forwarded, backed up transaction records, etc.)

Digital Content: In 2006, amount created was about 3 Million times more than all the information that is in all the books ever written

Source: IDC, 2007

Information


How We Deal With All This Content

Source: IDC, 2007; IBM

Information workers spend (hours per week):

14.5 hours reading and answering e-mail

13.3 hours creating documents

9.6 hours searching for information

9.5 hours analyzing information

An organization employing 1,000 knowledge workersloses £2.9 million annually just in time wasted having to reformat information as they move between applications

Not finding the information costs the same organizationan additional £2.7 million per year

Information


There is an explosion in information and real world events

Capital market data volumes grew 1,750% 2003-06

WW Information volumedoubling every two years

1.3B RFID tags in 200530B RFID tags by 2010

3.3B mobile phone users in 2007

2 Billion internet users by 2011

Government and Military

Information


Creating value with informationCreating value with information

Managing transactions

Managing content

Gaining insight

Information as a service

ValueValue

TimeTime

Information On Demand

Information on demand

Information


Heterogeneous Applications & Information

InsightInsightIn-line, Real-timeIn-line, Real-timeDashboardsDashboardsTools & ApplicationsTools & Applications

Information as a ServiceInformation as a Service

Data & ContentData & Content

BusinessContext

BusinessContext

InsightfulRelationships

InsightfulRelationships

Standards-based

Metadata Management

Information as a ServiceMoving from a Project-based to Flexible Architecture

Master Data, Entity Analytics, Decision Portals, Executive Dashboards,Industry Data Models

Extracted or Real-time

Information



ExistingApplications & Data

Partners NewApplications

Service Oriented Architecture

What are Businesses trying to Achieve ?

Partners


ibm.com / software


The New IT Infrastructure

DatabasesWorld WideWeb

WebServer

Transactions

SupplierNetworks

InternalSystems

CustomerConnections

End-to-end integration of transactionsLeverage existing applications and dataApplications act as processesWorkload optimized to any serverScalable, available, reliable, secure and manageable

IBM Software

®

Thank You

Kevin_Malone @ uk.ibm.com

Build ON demand businessinfrastructures with IBM Software

© 2004 IBM CorporationVisit ibm.com / software

ibm ebiz infrastructure kevin 100226 2up

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