solvay business school seminaire de technologies de l’information et de la communication...

Solvay Business School

SEMINAIRE DE TECHNOLOGIES DE L’INFORMATION ET DE

LA COMMUNICATION

UNIVERSITELIBRE DEBRUXELLES

eBusiness - IntroductioneBusiness - IntroductionPascale Vande VeldePascale Vande Velde

GEST 116GEST 116

V.1.0 Solvay Business School

Technologies de l’information et deLa communication

2

Introduction – Part I

Introduction – Part II

Payments & security

Supply chain management

Content of eBusiness courseContent of eBusiness course



3

Technical enablers

Case 2 : web banking site (transaction)

Case 3 : life insurance site (servicing)

AgendaAgenda

Case 1 : a newspaper site (information)



4

A complex topic…A complex topic…



5

Technical enablersTechnical enablers

Internet

Architecture developments

Linux OS

Java



6

Internet historyInternet history

The Internet is a publicly available worldwide system of interconnected computer networks that transmit data by packet switching using a standardized Internet Protocol (IP)

The core networks forming the internet started out in 1969 as the ARPAnet, created by the US Department of Defence Advanced Research Projects Agency (ARPA)

The objective of the ARPAnet was to connect different computers and networks designed by different vendors into a network of networks. The Department of Defence found out that their computers could not communicate between each other

ARPAnet used a protocol called NCP (Network Control Protocol). ARPAnet moved to the TCP/IP protocol in 1983

Under ARPAnet several major innovations occurred: email (or electronic mail), the ability to send simple messages to another person across the network (1971); telnet, a remote connection service for controlling a computer (1972); and file transfer protocol (FTP), which allows information to be sent from one computer to another in bulk (1973)

Another important step in the development of the internet was National Science Foundation building of a university backbone, the NSFnet, in 1986

Internet Protocol software was soon being placed on every type of computer, and universities and research groups also began using in-house networks known as Local Area Networks or LAN's. These in-house networks then started using Internet Protocol software so one LAN could connect with other LAN's

The internet became widly used as from ’90s. In 1989, Tim Berners-Lee created HTML, HTTP, and the first web pages at CERN. In 1993, Mosaic, the first web browser, was released.



7

TCP/IPTCP/IP

TCP/IP is a protocol making the communication between different networks feasible

TCP/IP is composed of 3 layers :– IP (Internet Protocol) : responsible for moving packets of data from node to node. IP

forwards each packet based on a four byte destination address (the IP number). The internet authorities assign ranges of numbers to different organizations. The organizations assign groups of their numbers to departments. IP operates on gateway machines that move data from department to organization to region and then around the world

– TCP (Transmission Control Protocol) : is responsible for verifying the correct delivery of data from client to server. Data can be lost in the intermediate network. TCP adds support to detect errors or lost data and to trigger retransmission until the data is correctly and completely received

– Sockets : is a name given to the package of subroutines that provide access to TCP/IP on most systems

Addresses– TCP assigns a unique number to every workstation in the world. This IP number is a four

byte value that, by convention, is expressed by converting each byte into a decimal number (0 to 255) and separating the bytes with a period.

– For instance, a workstation as as IP number 130.132.59.234 and all workstations in the organization have an IP number structured as follows : 130.132.*.*



8

TCP/IP (cont’d)TCP/IP (cont’d)

A end user can install TCP/IP on a personal computer without any knowledge of either the corporate or the regional network. Three pieces of information are required :

– The IP address assigned to the personal computer– The part of the IP address (the subnet mask) that distinguishes other machines on

the same LAN (messages can be sent to them directly) from machines in other departments or elsewhere in the world

– The IP address of the router machine that connects this LAN to the rest of the world

For instance :– IP address : 130.132.59.234– Subnet mask : 255.255.255.0– Default router : 130.132.59.1

The subnet mask tells the server that any other machine with an IP address beginning 130.132.59.* is on the same department LAN. All messages sent from a machine beginning 130.132.59.* will be sent directly to the LAN. All other messages will be sent to the default router



9

HTML/XMLHTML/XML

HTML (HyperText Markup Language), defined in 1991, is a markup language designed for the creation of web pages and other information viewable in a browser. The focus of HTML is on presentation (paragraphs, fonts, tables, graphs, etc...)

There are four types of markup elements :– Structural markup that describes the purpose of text. For example <h1>Golf/h1> will cause the

browser to render “Golf” as a first level heading– Presentational markup that describes the visual appearance of text, regardless of its function. For

example, <b>boldface</b> will render “boldface” in bold text– Hypertext markup which links parts of the document to other documents– Widget elements that create objects such as buttons and lists

There were several versions of HTML (HTML 1.0, 2.0, 3.0, 4.0) The successor of HTML is XML (eXtensible Markup Language). It was defined in 1998. HTML

uses a set of known tags that handle common formatting tasks. XML allows you to create any tag you want (is thus extensible) and then describe these tags in a meta language known as DTD (Document type definition).

A common feature of any markup language is that they intermix thet text of a document with markup instructions in the same datastream or file

XML is also widely use as format for document storage Example of markup language :

<h1> Anatidae </h1><p>The family <i>Anatidae</i> includes ducks, geese, and swans,but <em>not</em> the closely-related screamers.</p>



10

Architecture BackgroundArchitecture Background

“In the old days, there was no need for technical architectures” Actually, vendors brought architecture de facto with the mainframe (e.g. IBM with CICS

and IMS) Business was seeking automation of manual processes primarily requesting “standalone”

applications There was no PAST – (no legacy systems to integrate)

Today, the IT world is much more complex and diverse Solutions are networked / distributed We have to deal with the past : legacy integration and legacy maintenance while

developing the future (web, wireless, B2B)

Architecture has evolved through generations (# tiers)



11

Historical Reminder Historical Reminder 1-tier architecture (80ies)1-tier architecture (80ies)

A mainframe execution architecture is 1-tier : processing is done on the central server.

Issue : No separation of concern between presentation, business logic and data logical layers.

Batch On-Line MFDesktop

Computing

Pre

sen

tatio

n

Business Logic

Da

ta

Pre

sen

tatio

n

Business LogicD

ata

Pre

sen

tatio

n

Business Logic

Da

ta

Pre

sen

tatio

n

Business Logic

Da

ta

Pre

sen

tatio

n

Business Logic

Da

ta

Mainframe



12

Historical Reminder Historical Reminder 2-tier architecture (early 90ies)2-tier architecture (early 90ies)

client server

communication

Client/server supports an execution style where processes on different machines communicate through messages: the « client » makes requests to the server through service interfaces and the server responds.

Historical push : MS Windows and its Graphical User Interface

Rationale : C/S will reduce IT costsP

rese

ntat

ion

Pre

sent

atio

n

BusinessLogic

BusinessLogic

BusinessLogic

BusinessLogic

Pre

sent

atio

nD

ata

Communication



13

Historical Reminder Historical Reminder 3-tier architecture (late 90ies)3-tier architecture (late 90ies)

A Netcentric architecture allows to share transactional data and information between users and applications. Those applications allow « publishing, interacting or transacting ».

Netcentric is nothing else than an evolution of client / server, enabling the connection of employees, clients and business partners through internet.

Rationale : The web requires a specific front end server to handle thousands to potentially millions of connections.



15

Multi channel platform – technical viewMulti channel platform – technical view

Business Logic Bloc 3

Fir

ewal

l

External

Inte

grat

ion

Lay

er

Services&

OperationsData

Bus

ines

s L

ogic

Blo

c 2

Business LogicBloc 1

Platfor

Platformm

Cross Channel Applications Tier

App

lica

tion

Ser

ver

Channel Management Tier

ContentContent

Businesslogic

SessionApp. Server

Marketingdata

field

field

dyna

mic

Page

SecurityPackage

Users

LDAP

Fir

ewal

l

Presentation Tier

HR/Payroll systems

CRM system

Accounting system

Reference data systems

Invoicing, billingand collection systemExternal partysystemRegulatory reportingsystemInformation deliverysystem

Business intelligence systems

Product

Product

Product

OtherProducts

Call

Call

Cent

Centrere W

eb W

eb B

rowB

rowserser

Voice

Voice

Respon

Responsese

Unit

Unit

Voice

Pho

Pho

nene

CR

CRMM

Voic

Voice e

LogLoggerger

Voice

Voice

Respon

Responsese

Server

Server

Web

Web

Brow

Browserser

BTS

Wireless

Wireless

Brow

serB

rowser

(WA

P, J2M

E)

(WA

P, J2M

E)

InternIntern

etet

Intran

etWeb

Web

Brow

Browserser

Cli

Cli

entent



16

n-tier architectures aim at solving business n-tier architectures aim at solving business issuesissues

Main business drivers are :– Globalisation of financial markets (mergers

& acquisitions)

– Increased competition

– Changing client expectations

– Spread of technonolgy-enabled « eBusiness »

Main business drivers are :– Globalisation of financial markets (mergers

& acquisitions)

– Increased competition

– Changing client expectations

– Spread of technonolgy-enabled « eBusiness »

N-tier architectures provide a solution :

Resulting business needs :– Capability concentration, IT integration & cost

reductions

– Scalability

– New product types

– Short time-to-market for new product

– Flexibility (IT and salesforce)

– Multi-channel

– High system availability & security

Resulting business needs :– Capability concentration, IT integration & cost

reductions

– Scalability

– New product types

– Short time-to-market for new product

– Flexibility (IT and salesforce)

– Multi-channel

– High system availability & security

To Front-end Issues because :– They provide cross-channel coherence from

a client point of view– They allow the integration of information

usually spread over multiple systems– They allow single maintenance of

functionality offered on multiple channels– They reduce the cost of adding an additional

channel

To Mid-tier issues because : – They allow better re-usability of business

logic layer (made from components)

To Back-end integration issues because : – They help integrate legacy systems– They enable B2B integration



17

LinuxLinux

Linux is an open and free OS (downloadable from internet). It is mainly used in office applications, game softwares, mobile phones, video recorders and PDAs. Linux became the most widespread OS for internet servers. Linux, being free, is also installed on many low cost computers, a.o. In developing countries.

Linux was developed by a Finner, Linus Torvalds, in 1991 at Helsinki University. Linus Torvalds is the owner of the Linux trademark. The Linux Mark Institute manages and grants Linux licences.

Most of the code (71%) was written in C; other parts were written in C++, Lisp, Perl, Fortran....

Linux is a very secure OS (“virus proof”). Sales of Linux OS grow steadily. Based on IDC, 25% of all servers and 2,8% of

desktops were running on Linux in 2002. You need an emulator to run Windows applications without Linux equivalent on

Linux. VMware enables it with more CPU (run a client OS on a host OS). In the beginning, it was difficult to install Linux on desktops; so Linux adaption was

quite slow. Nowadays, more and more computers can be bought with a Linux OS instead of a Windows OS. In addition, the installation packs are currently easier to install. They are often available on CD.

Technical support is provided by Linux suppliers and users groups.



18

Linux - ApplicationsLinux - Applications

Zona Research “The New Religion: Linux and Open Source” Octobre 2000



19

Linux - ApplicationsLinux - Applications

Linux systems are mainly used for back office servers. They are mainly used as web servers, file servers, print servers, DNS servers, and mail servers etc.

Linux systems focus on these domains for the following reasons:– They are very reliable and robust – The source code is accessible to fix any problems– Problems can be quickly fixed and are shared with the Community– Linux systems are very similar to Unix systems; it facilitates knowledge

transfer– Acquisition costs are limited– Highly secure (“virus proof”)

Most servers suppliers (IBM, HP, Sun, etc….) support Linux on most of their servers, including mainframes. They categorise Linux as a Tier 1 OS. All main applications are now Linux portable.



20

JavaJava

Java is an object oriented language developed by James Gosling and Sun Microsystems colleagues. In the beginning, this language was named Oak (1991). Java was commercialized in 1994. It is a language derived from C++, but more intuitive than C++.

Java is independent from the platform on which it runs; therefore its success as internet application. It has been designed to support network applications :– The look and feel of a java GUI is independent of the hardware/OS– A java program can be launched on any OS/Hardware; thanks to a compilor and a

virtual machine (VM) :• The compilor transforms the java language in a code half way to the machine code• This code is processed by a virtual machine (program written in native code on the

hardware platform) that translates the java generic code in a code which can be used by the hardware

Sun created the company JavaSoft, in charge for the design and the distribution of the java language. The license granted by Sun requests that all implementations are compatible.



21

JavaJava

Java is not an open source program in spite of requests by several vendors (eg IBM). There are Java APIs, to integrate a java program in a program environment. Some companies can influence the APIs design but Sun keeps ownership and control on APIs.

Security –java program must be reliable and secure since they are used in a distributed/open environment, thanks to numerous controls upstream and during the code execution– The java virtual machine applies a hierarchy of security controls on the machine on which the java

code will be executed– The java compilor also applies many controls on the source code

Easy interaction with TCP/IP protocol thanks to a library of routines. It makes the set up of network connections much easier than with a program written in C++

Frequent use of java :– Web browsers– Intranet/internet applications – Web user interface (java beans call other programs, eg in C++) – Mobile phones– Smart cards– TV set boxes– Interfacing programs



22

Technical enablers



AgendaAgenda




23

Steps to set up an ebusinessSteps to set up an ebusiness

Define the strategy, business model

Define products and services

Define future processes, functionalities required

Define sourcing

Define technical architecture



24

Business modelBusiness model

Provide general and financial information to Belgian upper and middle class– Daily Belgian and international news– Financial and economic news– Leisure information

Provide information-based value added services– Archives– Personalization

Information provided based on – Own information sources– Third party information

Revenues model– Advertising– Subscription to value added services



25

Products and servicesProducts and services

Products– Belgian news– Financial and economic news– Stock rates (2 minutes delay)– Investment advice– Leisure information– Newsletter– Investors’ guide

Services– Registration– My portfolio– My archives– Call centre



26

Possible sourcing Possible sourcing

PortalPortalCapabilitiesCapabilities

PortalPortalCapabilitiesCapabilities

SecuritySecurity

PersonalizationPersonalization

AuthorizationAuthorization

Customer servicesCustomer services

CommunityCommunity

EAIEAIEAIEAI

Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship Management

ContentManagement

ContentManagement

Vignette Documentum Interwoven -

IBM

Pro

cess

In

teg

rati

on

Pro

cess

In

teg

rati

on

Broadvision Eportal server

IBM Abaxx ATG Dynamo …

Data extraction Data extraction tooltool

Data extraction Data extraction tooltool

Possible solutions :• A portal solution including a content and

portal functionality • A portal solution combined with a content

management solution• Mix of portal, content solutions and custom

development

• Manages multi channel distribution

• Personalization• Contribution to content• Location of content• Workflow (contribution

process)



27

Typical technical architectureTypical technical architecture

Internet

Call Centre/emails

Call CentreWorkstation

ApplicationServer Content

WebServer

Archives

Firewall

Market DataFeeds

Research

Customer

Firewall

Via Call Centre Operators

Information requests

External Systems

DBServer Portal

DBServer Content

ApplicationServer Portal

News

• No necessary integration with back end systems of newspaper company

• Information feeds integrated with content management tool

• Information extraction can require specific extraction tools

• CRM tool can be added to portal functionality

Customer DB



28

Information feedsInformation feeds

Archives

Market DataFeeds

Research

External Systems

News

Batch process, DB replication several times a day

Archives

Market DataFeeds

Research

News

File for updates

Files sent several times a day

File sent or automatic interface

• Depending on frequency of updates in case of real time information, back up solutions are necessary (second direct data transmission line)

• Push technique : files sent• Pull technique : connection to

information provider server

Feeding techniques depend on frequency of updates and volumes of data



29

Technical enablers



AgendaAgenda




30


Provide the bank’s retail clients the functionality to carry out most of their banking operations– Deposits– Account management– Loans– Credit cards

Provide the bank’s retail clients the functionality to carry out most of their equity and mutual funds transactions

– Bonds, options, derivatives excluded– Some exotic markets excluded

Build CRM tools to leverage on client information

Revenues model– Annual fees– Brokerage fees– Advertising



31

Products and servicesProducts and services

Consultation– Accounts maintenance (status and operations)– Portfolios maintenance (status and operations)/transaction services– Loan maintenance– Credit cards maintenance

Management services– Relationship management (CRM)– Personnalization– …

Product support– Deposits– Loans– Credit cards– Brokerage



32

Front end applicationsFront end applications

S1Virtual Financial Manager (VFM)

VLM Virtual Loan Manager

VIM Virtual Investment Manager

VBM Virtual Bank Manager

VCCM Virtual Credit Card Manager

• Retail Banking Products and Services

• Credit Card Services

• Loan Balance and Servicing

• Brokerage Services

Integrated Applications Financial Management Functions

Internet/VRU



33

Customers- New- Current

S1 Virtual Financial Manager (VFM)

Products,Services and

Operation Management

Products,Services and

Operation Management

MANAGEMENTAND CONTROLMANAGEMENTAND CONTROL

INFO

RM

ATIO

ND

ELIV

ER

YIN

FO

RM

ATIO

ND

ELIV

ER

Y

RELATIONSHIPMANAGEMENTRELATIONSHIPMANAGEMENT

SER

VIC

E

DELIV

ER

YSER

VIC

E

DELIV

ER

Y

Functional OverviewFunctional Overview

Back-end SystemsFront-end Systems

Internet/VRU

ATM/POS/CARDS

Network

Branch/Call Center

Adaptive Layer

Delivery Channels

3rd Party Processing:Securities Processing

Clearing

VBMVLM

VCCMVIM



34

Technical EnvironmentTechnical Environment

Bank core system

End UserClient

LocalDirector

Firewall

Firewall

CommServer

InternalNetwork

DB Server

App Server App Server

App Server

App Server

Internet

SSL

H9000

H9000

H9000

H9000

Internal Network

DB Server

Workstation

Cash Dispensersand other EMP

TerminalsTelephone Banking

CommServer

Front end Back end

• Internet user works on a local database which is a copy of the bank database (databases are replicated several times a day)• Database replication necessary

• Real time (front end) versus batch systems (back end)• Security reasons

• Back end could be outsourced to third party



35

The adaptive layer provides the linkage between The adaptive layer provides the linkage between the front-end and back-end systemsthe front-end and back-end systems

ADAPTER

•Internet Account Origination - New customer and account information.•Customer and Account Maintenance - Customer and account additions, modifications, and deletions.•Deposit Account - Details of deposit accounts•Deposit Transaction - Detail listing of deposit account transactions•Credit Account - Details of credit accounts•Credit Transaction - Detail listing of credit account transactions•Credit Card Payment Reconciliation - Performance of credit card account maintenance, payments and debits•Loan Account - Detail information of loan balances•Funds Transfer - Creation, execution of review of funds transfers•Payee - Maintenance and review of payee list•Payment - Creation, execution and review of payments transactions and receive automatic payment requests from payment service.•Payment Reconciliation - Perform customer and account maintenance



36

Integration of front end to back endIntegration of front end to back end

Most legacy or client/server-based enterprise applications were not designed to inter-operate with external applications or browser-based; end-user clients

Multiple and disparate

• Applications (custom, legacy, packaged)

• Platforms

• Databases

• Transaction processors

• Data entry points

• Versions of the same data

Application systems that are built at different times by different groups operating independently of each other

Incompatible business data formats

Trading Partner

CRM SCM

Lab System

SAP Legacy

eAI Vendor

Challenges

a2a: Integration of back-end systems (SAP R/3<-->Legacy)

a2a: Integration of front-end to back-end systems (Siebel<-->SAP R/3)

b2c: Integration of web applications with front- and back-end systems (self- service, customer interactions, etc.)

b2b: Integration of applications across corporate or organizational boundaries (integration of business processes among trading partners, suppliers, distributors, etc.)

eAI means Enterprise Integration



37

Traditional Integration ArchitectureTraditional Integration Architecture

Limited reusability

Interfaces were typically built on an as-needed basis and were not built in a manner that allowed components to be reused

Tight coupling of applications

The interfaces were tightly coupled to the applications forcing changes to an application on one end of the interface to directly impact the other end of the interface

Invasive integration approach requiring modifications to source applications

Change to one application can affect all interfaces to/from that application

Limited scalability of architecture across the enterprise

Significant custom coding

No centralized management or visibility of information flows and business rules

Legacy

Siebel

SAP

Internet

PeopleSoft

Point-to-Point Custom Code

Traditional middleware solutions facilitate the integration of

individual applications and discrete transactions between them

Point-to-Point integration with multiple interfacing methods



38

eAI ArchitectureeAI Architecture

App.A

App.B

App.C

App.DApp.

E

Message Broker

App. B

App. C

App. A

App. D

App. E

Message Brokers

Network Centric Hub/Spoke or bus messaging architecture

reduces # of connections

Loose coupling of integrated applications

Prebuilt adapters

Reusable data/message

transformation/formatting functions

Near real-time and/or batch integration

Interenterprise connections

Central control of multistep business processes

across multiple applications

eAI solution is a set of technologies that enables the integration of

end-to-end business processes and data (information) across

disparate applications to increase the organization’s ability to respond

and adapt to change by providing the following services: business

process management, application connectivity, translation and

transformation, communication middleware and message routing.

Chaining together of discrete transactions in the

form of a business process



39

eAI evolutioneAI evolution

1980s: Legacy systems

• Departmental focus, but centralized platform and data

• Highly fragmented, after-the-fact view of the business

1990s: Client/Server, Packaged Applications, Netcentric

• Enterprise focus

• Partially integrated, after-the-fact view of the business

• Replaced much of existing IT investment

2000+: Enterprise Application Integration (eAI)

• Extended enterprise focus (B2B, B2C, etc.)

• Fully integrated, up-to-the-second visibility and control of the business

• Preservation of existing IT investment

• Integrate packaged, custom, legacy, and web applications

• eBusiness and B2B drive IT investments

$248$468

$892$1.199

$1.564

$2.073

$2.544

0

500

1.000

1.500

2.000

2.500

3.000

1998 1999 2000 2001 2002 2003 2004

Millions of $

Source: Gartner Group

Enterprise Application Integration Market

Main uses of eAI %

Get new applications into production quickly 38%

Move information beyond traditional confines 20%

Expand supplier and customer relationships 18%

Integrate a best-of-breed world 14%

Mergers and acquisitions 10%



40

eAI componentseAI components

Business process level integration and management

Business Process Management

Prebuilt adapters to packaged applications, technology and custom adapter development kits

Application Connectivity

Message and data transformation and formatting

Translation andFormatting

Communications middleware and message routing

Communications Middleware

An eAI solution is composed of the following services:An eAI solution is composed of the following services:

The Business Process Management layer is responsible for the definition and management of cross-application business processes across the enterprise and between enterprises. These services enable the communication not just of data, but also of the business process context of the data being sent to another application.

The Communications Middleware component provides the architecture that implements various messaging models and route messages according message content and context. These services provide the connection among disparate resources, as well as security, queuing, and the functionality to reconcile network protocol differences.

The Application Connectivity layer provides reusable, non-invasive connectivity with packaged software (e.g., ERP, third-party best-of-breed) and custom legacy systems enabled by reliable, event-driven messaging.

The Transformation and Formatting layer is responsible for the conversion of data and message content and syntax to reconcile the differences between data from multiple heterogeneous systems and data sources. This layer is responsible for maintaining the information structure of the messages passed between systems and their meaning in a format that can be comprehended by another application.



41

Inter-enterprise integrationInter-enterprise integration

Customer

TraditionalPartner

Vendor

Traditional Partner

Forwarding/Transportation

Work Centers

Legacy

InventoryManagement

ProductionPlanning

Purchasing

SCA

Management

DataWarehouse

CRM

Marketing

Sales

CustomerRelations

CustomerService

Management

ERP

Finance -Accounts

Receivable

Returns

OrderManagement

Shipping

Billing

WarehousesPlant

Maintenance

Finance -AccountsPayable

CRM

Portal

Internet

Suppliers

Customers

Third Party

Employees

eAI

Customer

TraditionalPartner

Vendor

Traditional Partner

Forwarding/Transportation

Work CentersWork Centers

Legacy

InventoryManagement

ProductionPlanning

Purchasing

SCA

Management

DataWarehouse

CRM

Marketing

Sales

CustomerRelations

CustomerService

Management

ERP

Finance -Accounts

Receivable

Returns

OrderManagement

Shipping

Billing

WarehousesWarehousesPlant

Maintenance

Finance -AccountsPayable

CRM

Portal

InternetInternet

Suppliers

Customers

Third Party

Employees

eAI

Convergence of eAI and B2BConvergence of eAI and B2B

The business case for a new web-application is greatly enhanced if the new application can be integrated into an overall distributed application architecture

eCommerce integration involves establishing connectivity between an enterprise’s front-end, web-based sales engine and its back-office systems

This kind of integration work is primarily intra-enterprise

Inter-enterprise integration is externally focused and requires that an enterprise’s systems be connected with those of its business partners



42

Product Segmentation: Integration “Type”Product Segmentation: Integration “Type”

Each vendor initially focused on a specific integration area and has been expanding their capabilities into the other integration spaces

Business to Consumer (B2C)

Business toBusiness (B2B)

Application to Application (A2A)

EDI

Mercator

IBM

NEON

Viewlocity

SeeBeyond

webMethods*

CrossWorlds

Extricity

Sterling Commerce

Vitria

Tibco

*webMethods acquired Active to round-out their B2B-only offering.Active’s focus was only on A2A.

Evolved Capabilities

InitialOffering



43

eAI Vendors’ CapabilitieseAI Vendors’ Capabilities

Source: Gartner Group Strategic Analysis Report, September 2000 – R-11-5113

Niche Players Visionaries

Challengers Leaders

Microsoft

Sept, 2000

BEA

Viewlocity

Healthcare.com Sun

Extricity

GEIS

Sterling Com.

Vignette

Candle

Optio

Sopra

Sungard

CrossWorlds

OracleFujitsu-Siemens

Software AG

Level 8

Eclipsys/MSI

AbilityTo

Execute

IBM

webMethods

VitriaNEON

SeeBeyond

Tibco

SAGA

Mercator

Clients should typically consider vendors in this area

Completeness of Vision

most feature-rich, capable technologies

Mapping of eAI vendors’ according to their capabilities

%Market Share

14

12

12

7

5

5

45Others



44

Technical enablers



AgendaAgenda




45


New virtual life insurance company, part of Royal Nederland (Allianz Group)

Virtual company concept:

– Very few people working for the entity

– All back offices activities have been outsourced to Accenture Insurance Services (ACIS): HRM, policy administration, finance, IT...

– Brokers and banks are representing the distribution network Key assets :

– B2B extranet to larger Brokerage organizations

– ACIS is available to other companies for outsourcing of their back office

– Full STP (Straight-Through processing)

Universal Level B2B Extranet



46

ReportingFinancial administration

ServicesServices

Insurance Administration

• Process application

• Acceptance & policy printing

• Alterations

• Termination

• Prolongation & investment

• Commission calculation

Support General

• Fund alterations

• Primary process

• Obliged reports:

- Tax

- Yearly reports

- Actuarial reports

•Debtor management

• Creditor management

• In-/Excasso

• Consolidation

• Chart of accounts mgt.

• Service management

• IT operations

• IT applications mgt.

• Management

• Human Resources

• Office management

New Business

• New products

• New services

• Legal changes



47

Technical ArchitectureTechnical Architecture

F I REWALL

Policy Express

CIA

Web Case Management

UnipasC/S

ExactC/S

Interface

Client relationdatabase

Reportingdatabase

Web

Policyholder

Broker

To speed up the interaction between ACIS and the intermediary parties, internet initiatives are being developed. In addition to the capability to access workflow management (CIA) and to deliver policy applications electronically (Policy Express), the brokers are given the opportunity to acquire policy quotations on-line.



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Life Life insurance ainsurance applicationpplication process process

•Initial check•Work Preparation

Process Checklist

Medical Acc.

Process Standard

Acceptance

ProcessMedical

Acceptance Requirements

Medical Examination

Renew Policy

Quotation

MedicalAdvice

Intermediary

Collect Confirmation& final docs.

Follow-up open items

Process & Issue Policy

Policy

MedicalAcceptance

Report

RejectionProcess

Universal Leven Medical Acceptance

(Royal)

Case Management

ProgressNotice

Applic.

Case Management

One of the key process characteristics of the application handling at ACIS, is the fact that standard applications in compliance with the UL medical criteria can be processed without interference from the UL Medical Acceptance department. This considerably speeds up the processing procedures.

INSURANCE

UL / EXTERNALS



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WorkWorkfflow Managementlow Management

The Case Management system helps to keep track of the application status application, dealing with the parties involved in the process. In order to monitor the progress, it produces reports that measure the status against the agreed Service Level.

C.M.: Application

C.M.: Medical Acceptance

Applicant Info:• Client data from UniPas

Application Milestone Dates:• Application received• Progress notice• Letter of covering• Mortgage passing• Last document received• Issuing policy• Service Level benchmark

Medical Milestone Dates:• Medical checklist• Medical examination• Authorization• Medical report• Medical adviser

Policy Application Status:• Pipeline• Passing• Actual• Alteration• Rejected New Quotation Info:

• Mark-up percentage • Restrictions• Date new quotation• Date client approval



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What is Workflow ?What is Workflow ?

Workflow can be broken down into 3 concepts:

Workflow describes how work moves through an organisation, i.e. workflows are an organisation’s business processes and the rules that drive and control the processes.

Workflow Automation is the electronic modelling of these business processes, i.e. mapping process flows and capturing rules and business logic.

Workflow Management is the ability to maintain and manage work in an operational environment, i.e. monitor, revise, balance, re-route work.

In summary: “The action of electronically modelling business processes so that resources and tasks

can be coordinated, monitored and revised to improve productivity”



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The Role of Workflow AutomationThe Role of Workflow Automation

Definition:

The action of electronically modeling an entire business process, which can then be coordinated, monitored, and revised to improve productivity

“Workflow” can be:

• Routed Paper• The Business Flows of Corporation X • A Systems Architecture Component/Service• A Function of a Package Solution (e.g. ERP)• A Workflow Management System

Functions:

• Offer a tool set through which to MODEL entire business processes

• Provide application services which automatically COORDINATE manual and automated process functions

• Maintain extensive statistics from which to MONITOR process performance

• Provide a flexible framework for management to dynamically REVISE business processes

Process Management

1] Route Building

routes work items to the next required activity

2] Rules Building

provides the intelligence for determining process paths for a work item, based on the process state and the outcome of previous tasks

3] Roles Management

defines a user or a workgroup’s responsibilities and tasks in the process

4] Queue Management provides access and control of work queues or “in-baskets”

5] Monitor / Reporting

Functions



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High Level Rules for WorkflowHigh Level Rules for Workflow

Workflow Technology is Value Added

when The Enterprise Has:

Well defined (modelable) business processes

Static business processes

Few (or consistent) exceptions

Delays occur due to process transfer time

Delays due to business process steps being separated by physical distance

Tracking or auditing of work in progress is a priority

…and can result in:

Increased Productivity

• Workers focus on value-adding activities• Directs users to high priority work• Automates routing of work• Concurrent access capabilities

Reduced Costs

• Reduced manual effort• Reduced administrative effort• Improved resource utilization• Reduced transfer time between activities

Increased Control

• Automated audit trail• Improved accountability• Exception handling• Faster communication• Faster decision making• Monitors task and process costs

Increased Flexibility

• Improved information access• Maximize decision making capability at point of decision• Single point of process modification• Dynamic reprioritization and redistribution of work

Powerful Statistics



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Conceptual Workflow ArchitectureConceptual Workflow Architecture

Workflow Participant Management

ProcessDefinitions

ActivityDefinitions

ResourceDefinitions

MilestoneDefinitions

RuleDefinitions

Workflow Procedures Database

Workflow Process Owner Services User Workflow Services

Workflow Engine

Workflow APIs

Manufacturing

Human ResourcesMarketing

Finance / Accting Customer Service

Order Entry Manufacturing

Human ResourcesMarketing

Finance / Accting Customer Service

Order Entry

RDBMS Business Applications

Process Statistics Database

QueueData

ProcessInstance

Data

Work Item Reassignment

ResourceScheduling

Management Reporting

Application Workflow ServicesBatch

ProcessesAsynch

ProcessesProcess Initiation

PerformanceSupport

(Online Help)

Manufacturing Finance / Accting

Marketing

Order Entry Customer Services

Human Resources

DesktopApps.

Process Initiation

ProcessReview

Message Box

WorklistHandler

Workflow Systems AdministrationResource

MaintenanceProcess RuleMaintenance

ProcessMapping

Event Manager

Rule & Route Management

InstanceManagement

QueueManagement

AlertManagement

ILLUSTRATIVE



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What components make up a Workflow Solution?What components make up a Workflow Solution?

Workflow solutions are made up of several basic components necessary to design, build and execute workflow management systems:

1. Process Design Methodology – a workflow system should be designed with the process flow as the focal-point

– typically, an organisation would use their own standards/methodology

2. Process Mapping Tool– draws a map representing process flows

– vendors typically offer a graphical mapping tool to “visualise” the process flow

3. Rules Builder – defines routing procedures, security, priority, alert notifications, etc.

– usually integrated with the process mapping tool

4. Workflow Engine• manages the process flow between client applications, server applications, users, data stores.

• moves work items along the process maps

• central point of coordination and management

5. Workflow Administrator Utility

– run-time component which gathers workflow statistics and generates reports, e.g. processing times, queue volumes, workgroup volumes, alert notifications etc..

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