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SOA and ERP
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Selim BurduroğluEnterprise ArchitectFriday, December 2, 2005
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Agenda
� ERP Market Trends and Evolution� What is Service Oriented Architecture (SOA)?
� What makes up an SOA?� Definitions and Brief Description
� SOA Stages for ERP� Project Fusion & Oracle Fusion Middleware� Evolution of Application Architecture� Benefits of SOA� Bottom Line
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ERP Market trends
� Continuing vendor consolidation� Fewer large new deals, more sales to existing customers� Emphasis on recurring revenue
� Maintenance, hosting, subscription licensing� Focus on midmarket and industries� Growing importance of SOA platforms in technology
buying decisions� Simplicity and usability (UI, tools, reporting)� Lifecycle Management (implementation, upgrades)
The Emergence of �Applistructure�Ken Vollmer
March 18, 2003
The increasing availability of prebuilt horizontal and vertical business processes designed to be used with application integrationmiddleware is a trend that will have significant impact on thesoftware market � The increased usage of prebuilt business processes is resulting in a blurring of the boundary betweenapplication software and infrastructure middleware and creating a new class of software that could be referred to as �applistructure�software.
Evolution According to
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Evolution According to
� ERP systems became a universe of their own� Integration was never a key strength of ERP system� ERP vendors are stuck in own development history� Users don�t like revolutionary changes to the applications
world� Web Services and SOA (Service Oriented Architecture)
are the new driving forces for architectures
Source:ERP&SOA � A Contradiction? Meta Group Interactive BriefingParis � 29 April 2004Ruediger Spies (VP Enterprise Application Strategies)
Evolution Summary
ApplistructureApplistructureApplications
Infrastructure
�the emphasis in the war for domination in ERP systems is moving away from business functionality and toward a battle about platforms.�
Stewart McKie of Ventana ResearchMarch 14, 2005
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Applistructure
� A successful applistructure will comprise five elements:!Continuously decrease the operational cost of information technology !Permit a fast and flexible reconfiguration of business processes !Deliver secure and reliable service levels!Permit upgrades and product enhancements on the fly!Allow different technology providers as well as custom/legacy code to plug and play seamlessly
Source:Applistructure: The Next Big or Bust Thing for Enterprise Applications?Monday, January 03, 2005Erik Keller
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What is SOA?
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SOAXMLWSDLWSDLWSDLWSDL
BPEL
UDDIUDDIUDDIUDDI
SOAP
WS-S
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General Contractor XBPELProcess
UDDI
�Concrete Estimates� call 555-
1234
(WSDL)
XMLXML
XML � Extensible Markup LanguageUDDI � Universal Description, Discovery and Integration Service
WSDL � Web Services Descriptive Language
Web Service
Web Service
Web Service
Web Service
Web Service
Web ServiceWeb Service
BPEL � Business Process Execution Language
SOAP
SOAP � Simple Object Access Protocol
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Definitions
A service is a unit of discrete business functionality.
A service oriented architecture provides a standards based platform that allows services to be provided, discovered, and consumed by each other, to facilitate the creation of a orchestrated business process.
A service oriented application is a set of application functionality that fully leverages the power of a service oriented architecture.
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SOA stages for ERP
� Integration of heterogeneous applications across multiple platforms� Time frame: Now
� Modular components within suites� Time frame: Two to three years
� Market transformation to standards-based architectures� Time frame: End of decade
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The Future of Applications
� Leveraging Infrastructure to lower cost of obtaining and using new application functionality(Composite App) � Applistructure
� Based on an Application Infrastructure �Service-Oriented Architecture
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FBT PAY GNTS
TRDS
Client
Customs
RREIPS Integrated A/C Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client Staff RemoteStaff
TAXAGENTS
GCI
Call Centres
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Ref material
Bus. Intel
NTS A/c
BEP
CDCCCWMS
BANK
DDDR
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Data��.
Penalty
Business
IVR
1
Common Architecture Today
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What is SOA Really About?
4040
6565
%% of IT Budgets spent on Integration Activitiesof IT Budgets spent on Integration Activities
%% of ERP Application Implementation Costs of ERP Application Implementation Costs spent on Integrationspent on Integration
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Integration vs. Interoperability
� Integration� Two (or more) applications exchange data
� Interoperability� Two (or more) applications are able to exchange information (if they want to).
It is About Reusability!
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Oracle Fusion Middleware
Oracle InformationAge Applications
EBS
JDE
PSFT
Project Fusion
Time
Project Fusion� A evolving process
or �journey�� Initiative to build
� SOA-based Information Age Applications
� and the Fusion Middleware required to enable them
Project Fusion
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Oracle Fusion Middleware� Family of integrated, standards-
based, customer-proven products� Enables greater agility, better
decisions, and reduced cost & risk today
Fusion Middleware IS that infrastructure. And is available now!
DevelopmentTools
OrchestrationSecurity
Portal
Integration
ManagementCollaboration
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Evolution of Application Architecture
Infrastructure DBTools
Applications
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�and more applications�
Applications
Infrastructure DBTools DBTools DBToolsDBTools
Issues� Inconsistent look-
and-feel� Inflexible, hard to
change� Poor information
access, integrity
Leads to�� Multiple user
interfaces� Fragmented
processes� Silos of data
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Applications
�Middleware�Orchestration
Infrastructure
BusinessProcess
The Onboarding Process
DBTools DBTools DBTools DBTools
Core HR eRecruit Badging Security
Promise of Middleware
� Agility & interoperability
� Reduces TCO� Adaptable BPs
Middleware� �Platform� solution
based on industry standards
� Single vendor sourced
� �Holistic� business process management
Evolution of the Platform Emergence of Orchestration
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Applications
�Middleware�Orchestration
Infrastructure
BusinessProcess
The Onboarding Process
DBTools DBTools DBTools DBTools
Core HR eRecruit Badging Security
However today�s applications...
� Still manage their own workflow
� Need to retrofit industry standards
� Don�t natively leverage the Middleware capabilities
Evolution of the Platform Emergence of Orchestration
?
?
?
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�Middleware�
Applications
Orchestration
Infrastructure
BusinessProcess
The Onboarding Process
Evolution of the Applications Emergence of Services Oriented Architecture (SOA)
DBTools
SOA SOA
DBTools DBTools DBTools
Core HR eRecruit Badging Security
Services Services
SOAApplications�Standards based Business Process Management�Common language shared by applications�Plug and play functionality
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DBTools
�Middleware�
Fusion Middleware: The Enabler Orchestration + Infrastructure
Oracle Fusion Middleware
ServicesApplications
Orchestration
Infrastructure
BusinessProcess
Business Process
DBTools
Services
SOA SOA
DBTools DBTools DBTools
Oracle Fusion Middleware�Family of integrated, standards based, components�Based on existing, mature technology products�Over time adding the best design ideas from
�eBusiness Suite�PeopleSoft
Enterprise�JD Edwards
EnterpriseOne
�Data Hubs�XML Publisher
�Identity Mgmt�Integration
�JDeveloper
�Oracle Portal�BPEL / BAM
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Oracle
Microso ft
IBMSAP
BEASystems
Sun Microsystems
RiskyBets Contenders Leaders
StrongPerformers
Currentoffering
StrategyWeak
Weak
Strong
Strong Market p resen ce
Novell
Application Server Leader
Source:Forrester Wave�: Application Server Platforms Q1 �05
Source:Applistructure: The Next Big or Bust Thing for Enterprise ApplicationsAMR Research Report, 1/3/05
Applistructure Leader
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Oracle�s SOA Provides
� Integration Repository � Provides single definition of all interfaces and catalogs all published APIs
� Business Activity Monitoring � Allows business users to set performance targets, monitor exceptions
� Business Process Execution Language � using GUI and Enterprise Services, business analysts can adjust business processes
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Benefits of SOA
� Simplified Integration � Connect disparate applications quickly by creating standardized services
� Increase Reuse � Applications components are easily used saving development time and increasing application reliability
� Easier Maintainability � Changes/Version are not all-or-nothing
� Greater Agility � Rapid deployment of business processes or modifications of existing ones in response to market changes
� Reduced Risk � Adaptable processes and single security model for accessing services enables ongoing regulatory compliance in a timely, cost-effective manner
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Applistructure
� A successful applistructure will comprise five elements:!Continuously decrease the operational cost of information technology !Permit a fast and flexible reconfiguration of business processes !Deliver secure and reliable service levels!Permit upgrades and product enhancements on the fly!Allow different technology providers as well as custom/legacy code to plug and play seamlessly
Source:Applistructure: The Next Big or Bust Thing for Enterprise Applications?Monday, January 03, 2005Erik Keller
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Why Oracle? Insight � Agility - Lowest cost
� Proven technology to implement SOA
� Richest set of applications services
� Industry leader in grid computing
� Delivers accurate information faster, for smarter decisions
� With end-to-end security
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The Bottom Line
� Web Services is an enabler of Service Oriented Applications not the answer
� Service Oriented Applications should be transparent to end users and increase productivity
� Oracle is committed to delivering the both the parts and the solution to meet your business needs
Q&A
Thank You!