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Roy Schulte The Enterprise Nervous System Changes Everything These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail -- [email protected].

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Page 1: ens

Roy Schulte

The Enterprise Nervous System Changes Everything

These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail -- [email protected].

Page 2: ens

Copyright © 2002

Grid

Product SalesBranch

ShippingDept.

Purchasing

ERP HRBilling

Data Center

Subsidiary

Mfg. PlantContact

Center

Web-BasedIntermediary

Suppliers

Business Customers and Dealers

Consumers

Enterprise Nervous System

From Enterprise Network and Internet, to Enterprise Nervous System and Grid

Brokers and BPM

ODSs and Data

Warehouses

Shared Business

Components

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Key Issues

1. How will software design and acquisition practices change as managers pursue enterprise agility?

2. What will be the benefits and limitations of the three major integration strategies: rip and replace; wrap or re-engineer; and leave-and-layer?

3. What strategies will bring the most success for enterprises adopting new middleware technologies for the Grid?

Copyright © 2002

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SalesBranch

ShippingDept.

Business Customers and Dealers

Purchasing

ERP HRBilling

Data Center

Mfg. Plant

Suppliers

Paper

FileTransfer

E-Mail

Fax

Fax

E-Mail

FileTransfer

ContactCenter

Copyright © 2002

Conventional ‘Stove-Pipe’ Applications

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Depth

Scope

WithinDept.

SendData

AcrossDepts.

Enterprise-wide

KnownPartners

Ad Hoc Partners

ImmediateLook-up

Hard

Transaction With

Updates

IntermingleProcesses

Speed and Agility

Easy

Visionary

Increasing the Scopeand Depth of Integration

Copyright © 2002

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The Worldwide Grid and Enterprise Nervous Systems

Copyright © 2002

ENS A

Worldwide Grid

ENS GENS F

ENS E

ENS D

ENS C

ENS B

ENS H

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Implementing the Virtual Enterprise

Service

SalesBranch

ShippingDept.

Purchasing

ERP HRBilling

Data Center

Subsidiary

Mfg. Plant

ContactCenter

Web-BasedIntermediary

Suppliers

Business Customers and Dealers

Consumers

Virtual Enterprise

Enterprise

SuppliersCustomer

Copyright © 2002

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• Rip and replace

• Wrap or re-engineer

• Leave and layer

Copyright © 2002

Three Possible Solutions to the Problems of IS Heterogeneity

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Rip and Replace

Service

SalesBranch

ShippingDept.

Purchasing

ERP HRBilling

Data Center

Subsidiary

Mfg. Plant

ContactCenter

Web-BasedIntermediary

Suppliers

Business Customers and Dealers

Enterprise

SuppliersCustomer

Copyright © 2002

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Practical Limits of Wholesale Replacement

Service

SalesBranch

ShippingDept.

Purchasing

ERP HRBilling

Data Center

Subsidiary

Mfg. Plant

ContactCenter

Web-BasedIntermediary

Suppliers

Business Customers and Dealers

Virtual Enterprise

Enterprise

SuppliersCustomer

Purchased from Vendor “B”

Legacy

Implemented Vendor “A” Differently

Purchased From Vendor “A”

Invented TheirOwn Architecture

Has Not Heard of Architecture

Outsourced

Conforms to Their Own Architecture

Conforms to Their Own Architecture

Ad Hoc

Conforms toArchitecture

Legacy

Legacy

Copyright © 2002

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Wrap or Re-engineer

Copyright © 2002

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Practical Limits of Wrapping

Portal

OrchestratingService

Update

Customer

Update

Customer

Update

Customer

Web service:Change address

Web service:Change address

Web service:Change address

Purchased ERP

Legacy

Package

New

Copyright © 2002

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Leave and Layer

• Accept redundancy of data and logic• Document and manage redundancies• Minimize data inconsistency by

regular, frequent reconciliation • Facilitate real-time interactions

among systems• Manage business processes that

span multiple systems• Rip and replace, or wrap or re-

engineer, when appropriate for other reasons

Copyright © 2002

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The Grid: Why Now?

Enablers

• A critical mass of business functions have been automated with online systems

• Improved integration middleware technologies

• Standards: TCP/IP, SMTP, FTP, HTTP, HTML, XML, Web services

• Hardware: Faster chips mean faster systems and more network bandwidth

Copyright © 2002

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Technology for the Grid and ENS

Copyright © 2002

Event and Alert

ManagersIntegration Brokers

SemanticTransformation

Service-Oriented

Messaging

Rules Engines

Shared Business

Components

Taxonomies and Schemas

MessageWarehouses

Operational Data Stores

DataWarehouses

IntegrationMetadata

MessageQueues

BusinessProcess

Managers

Collaborations and Analytics

TCP/IP, HTTP, FTP, SMTP, MOM, SOAP

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SAP

Siebel

IBM WebSphere

Microsoft

BEA WebLogic

IBM CICS

SAP

Siebel

Microsoft

Tibco

IBM

BEASpecialists

Generalists

Pkg. App. Vendors

Copyright © 2002

Three Vendor Types Vie for Control of the ENS

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GeneralistPkg.

VendorCommon Practices:

Archipelagos of Automation

Best Practices: ManagedIntegrationNetwork

Pkg. Vendor

Generalist or Specialist

Specialist

Copyright © 2002

ENS Stages of Maturity

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The Integration Competency Center

Copyright © 2002

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Recommendations

• To create an agile enterprise, managers and architects must view the business units, people, application systems and automated devices throughout a virtual enterprise as participants in a holistic system.

• Senior management must be made aware of a subtle, but revolutionary, change in IT architecture enabled by the Grid and ENS.

• Enterprises should explicitly plan and manage their ENSs through a central integration competency center, rather than letting their ENSs emerge piecemeal, unrecognized and uncontrolled.

Copyright © 2002