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1 Entire contents © 2005 Forrester Research, Inc. All rights reserved.

Adopting Enterprise SOA –The Customer’s Road

Scott FeldmanGlobal Director, Customer EcosystemSAP AG

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2 Entire contents © 2005 Forrester Research, Inc. All rights reserved.

•Flexibilityfor business strategiesAlign IT with the business

•Speedof innovationBuilding competitive advantages

•Sustainable cost structureMake continuous change affordable

Adopting Enterprise SOA –The Customer’s Road

Strategy forGROWTH

CIO delivers on timeand on budget

CEO sets strategy

Ability toEXECUTE

EnterpriseServices

Architecture

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3 Entire contents © 2005 Forrester Research, Inc. All rights reserved.

Unique Customers – Unique Roads to eSOA

SAP NetWeaver

DIFFERENTIATION

PRODUCTIVITY

mySAPBusiness Suite

mySAPERP

Composites

•No two roads are fully alike

•Industry and company drive the specific needs

• Use pragmatic stepsfor fast ROI via IT practices

• Use strategic pathsto unveil the complete power of eSOA

SAP NetWeaverEnterpriseService

Repository

Composite Application

Existing Systems

Portal Devices Office RFID

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Business Process Harmonization

HW/SW Consolidation / harmonization

Business Process Optimization

TCOreduction

Outsourcing

IT Strategy

Upgrade / Release planning

End-To-End Process Integration

Business Information Management

…

NO – They mostly use it for near-term topics !!!

Businessmotivated

Technologymotivated

Situationmotivated

eSOA / NWRoadmap

Inno-vation

Inno-vation

Inno-vation

End User Productivity

eSOA Design, Development and

DeploymentData Unification

Merger & Acquisition

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Enterprise Services Architecture Adoption Program

• Unleash the power of eSOA

• Gain mid- to long-term planning reliability

• Reduce risk and complexity

• Drive alignment across the organization

• Leverage SAP’s expertise in application services, business processes and business object modeling

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap

Go Live Show the Value

The Road To Fast IT Delivery

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The eSOA Adoption Program in Detail

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap

Go Live Show the Value

§ eSOA and SAP NetWeaver Vision Value Session§ eSOA Opportunity

Workshop§ TCO Discovery

Session

§ eSOA Enabling Roadmap Workshop§ eSOA Roadmap

Workshop

§ Plan Services§ Build Services§ Run Services

§Continuous Operations and Governance§eSOA /

NetWeaver Community§Become an eSOA

leader in your industry

Output:eSOA

Roadmap

Output:eSOA Opp.

Wkshp

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Discovery Phase – Grasp the Vision

• Core Services

• eSOA and SAP NetWeaver Vision Value Session

• eSOA Opportunity Workshop

• TCO Discovery Session

• Goals

• Understand the customer‘s specific key challenges within his industry

• Show the SAP NetWeaver and eSOA strategy, and identify opportunities

• Customer Benefits

• Thorough understanding of SAP NetWeaver & eSOA

• Identification of SAP NetWeaver and eSOA opportunities

• Validation and identification of SAP NetWeaver TCO levers

• Clear action plan to guide the customer forward

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap Go Live Show the Value

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Content and Goal of theWorkshop

Session ISAP NetWeaver and eSOA Overview

The workshop was conducted with the help of Customer to identify areas (businessand IT related options) that could be improved by applying the concept of eSOA.

The workshop consisted of 3 sessions:

Session IIUnderstandingCustomer‘s currentsituation and strategy

In the first session, the idea of the Enterprise Services Architecture (eSOA) was introduced and an overviewof SAP‘s NetWeaver and eSOA strategy was presented

Session IIIDrill down on identifiedareas of interest

In the second session different areas of interest and possible improvements were discussed and recorded.

Afterwards these areas were grouped and rated.

The identified areas of interest were discussed in more detail and next steps were defined with recommendations. In certain areas a business ownerwas assigned to manage next steps.

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Evaluation Phase – Build Your Roadmap

• Core Services

• eSOA Enabling Roadmap Workhop – Mid-term and project-focussed

• eSOA Roadmap Workshop – Long-term, tapping into full power of eSOA

• Goals• Design a customer specific Roadmap towards eSOA, based on challenges, key processes, IT

landscape and IT practices

• Customer Benefits

• Customer eSOA strategy or enabling strategy based on VALUE

• High-level eSOA Architecture design and guidelines

• Document innovative business scenarios

• Capture opportunities for leveraging existing investments and TCO reduction

• Sustainable evolvement to Enterprise Services Architecture

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap Go Live Show the Value

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The Need: Service Oriented ArchitectureSOA is essential but missing business semantics

WEB SERVICES - SOA

Chaos

§ Manually built

§ No reuse

§ No governance

Delete fromdatabase

Rollbackinventory

CancelShipment

CancelInvoicingAdjust

Planning

NotifySuppliers

CancelOrder

SendNotification

Order to Cash

ENTERPRISE SOA

Integrity

§ Business semantics

§ Productized

§ Unified repository

Order to Cash

CancelOrder

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What makes a Service an Enterprise Service?

• Readability• See it like a book

• Global data type – the sentences are written in one language

• Messages and service cut – the sentences have the same grammar

• Taxonomies – Process Components, Business Objects, Interfaces

• The chapters in the book have the same structure

• Reuse• The higher the reuse of services is, the higher the value

of the ESR is and as bigger the cost savings are

Package services in WebServices is like a new StyleSheet – it does nothing for readability

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Basic Principles for ESA in mySAP Business Suite

• Service Enablement as defined in the ESA Adoption Guideline:

• “Encapsulation of existing functionality and publication of it as A2A, B2B services or services used for UI, or any other type of service which is released for customers. The interfaces are based on Global Data Types (GDTs) and approved by the PICgovernance process. The interfaces of these UI/A2A/B2B services are defined in the Enterprise Services Repository. “

• All mySAP Enterprise Services are compound services and will be stateless, every service call is an atomic transaction.

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Enterprise Services: A Closer Look

Delete from database

“Cancel Order”

CancelShipment Cancel

Invoicing SendNotification

AdjustPlanning

Rollback inventory Notify

Suppliers

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Enterprise Services

Repository

SAP NetWeaverBusiness Process Platform

An Example of Enterprise Services - Putting itTogether

Appli-cations

3rd

PartyPLMERP MDMHRCRM

Ware-house mgmt.

BI

BWSCM

Spread-sheet

Connec-tor

OTC Process

OrderManagement

OrderEntry

ValidationCheck

Validation

Order Processing

Batch Mgmt.

Invoice

Invoice

Controlling

ReportingWarehouse-mgmt

Pick & Ship

ManageA/R

A/R Process

Visualization

Portal Devices OfficeRendering

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Services in the mySAP Business Suite

Back end(•NW04)

SAP NetWeaver XI runtime

(integration server)

n Third-party application

n Composite appn External system

WSDL proxy

XI framework

Service request pool

1Design

PIC process

2

XI proxy

Generate proxy

5

ESRn Sync. servicesn Async. services

3

Required development steps:1. Identify and consolidate services2. Model and design (the PIC process)3. Define content in Enterprise Service

Repository4. Create documentation5. Generate and implement proxy 6. Generate Web service for

synchronous operations

6

4

Web browser SAP NetWeaver VisualComposer

Microsoft Office

Lightcompositeapps

Third-party applications

Interactive Forms with Adobe software

Asynchronousor Synchronous

A2AB2B

Web serviceinterface

Synchronous

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CUSTOMER & PARTNER GROUPS

ES COMMUNITY

SAP

ENTERPRISESERVICES

REPOSITORY

Industry Value Networks

Powered by SAP NetWeaver ASUG/GLP OTHER

ENTERPRISESERVICESPROPOSAL

TechnologyPartners

ISVs

Customers

SAP

SIs

Definition/Advisory Groups

• Propose - services & ESA best-practices

• Leverage - early-access services to design composites

• Protect - IP and ensure accountability

• Certify - service usage, integration

Enterprise Services CommunityDeliver foundation for business process innovation

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ES Business Packages describe End-to-End Business Processes

Solutions buildon ESR content

Backend - Enterprise Service

SAPSAPØApplicationØ Composite

(iCOD / CFT)Ø AnalyticsØ Satellite

PartnerPartnerØ 3rd party

applicationØ Composite

from ISV/SI

CustomerCustomerØ Custom build

based onconnectivity

Ø System integrator

How-to-UseGuidance

Scenario & Process

Description

Customer Value

Proposition

ES Business Packages – Big Picture

Enterprise Model(Process Component, Integration Scenarios)

Definition of BOs, GDTs and Service

Operations

ESR Content

mySAP ERP 2005

ES Wiki

Implementation

Definition

Documentation

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ES Business Packages Overview End-to-End Scenarios As of Today

Ñ Identified scenarios reflect SAP’s core areas where customer have customized and extended existing SAP business functionality

ÑWithin these scenarios immediately benefit from more open and flexible interfaces based on Enterprise SOA would be tangible

Ñ Identified scenarios reflect SAP’s core areas where customer have customized and extended existing SAP business functionality

ÑWithin these scenarios immediately benefit from more open and flexible interfaces based on Enterprise SOA would be tangible

Order 2 Cash- E-Commerce (Internet Sales, Webshop)- Integration of Logistic Service Providers Information –

Ocean Booking and Visibility- Customer Fact Sheet- Electronic Bill Presentment and Payment- Financials Shared Services Center- Request for Quotation Approval (CFT)- Customer Request for Refund (CFT)

Procure 2 Pay- Supplier Collaboration- Request for New Supplier Master Data (CFT)

Manufacturing- Integration of Manufacturing Execution Systems - Integration of Quality Management Systems- Manufacturing Work Instructions- Production Order Scheduling (CFT)- Calibration Inspection (CFT)

Employee Services- E-Recruiting - Travel Management

Industries- Dealer Business Management- Strategic Investment Buy Analysis (CFT)- Store Specific Consumer Prices Maintenance (CFT)

Product Development - Document Management - Engineering Collaboration Connectivity- Investment Approval (Analytics)- Request for Product Change Notification (CFT)

Aftermarket Sales & Services- Maintenance and Service

All currently under Evaluation

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ES Business PackagesValue Proposition for Customers

• Transform Enterprise SOA in business language along with core SAP business processes and end-to-end scenarios

• Flexible and extendable process innovation:

• To build new applications and composites on top of existing SAP processes and scenarios

• To enrich existing processes to ensure higher process efficiency

• To provide connectivity to third party applications enabling new process definitions

• Improve readability and re-use of application interfaces to lower TCO

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The ES Workplace

• www.sdn.sap.comè ESA è ES Workplace:Browse, test and use enterprise services!

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Ex: eSOA Transition Roadmap Chemical Customer

FocusUpgrade +

Implementation

Focus Harmonization

Focus Enterprise

Service Architecture

Focus Evaluation +

Implementation

Deg

ree

of S

AP

eSO

A

Cov

erag

e

Time

2005 2006 20082007short term mid term long term

Focus upgrade + impl. of mySAP ERP 04 and SAP

NetWeaverUpgr. to mySAP ERP 04n Upgrade BW 3.5n Proof of Concept:

n SAP MDMn Implementation

n SAP MDMn eSOA Change Mgt Worksh.

Focus evaluation and implementation of SAP

NetWeaverLeverage BW 3.1n Proof of Concept:

n SAP XI 3.0n SAP EP 6.0

n Implementation n SAP XI 3.0n SAP EP 6.0

Focus Harmonization

n Harmonization of Chemical Customer : n Sys1+Sys2n CRM 3.1+Lotus DB

n Proof of Concept for SAP Netweaver 2006

n Realize eSOA Change Management for

Focus eSOA

n Upgrade:n to mySAP ERP07 incl. SEMn to SAP CRM5.0

n Service Repository availablen Positive effect by using

enterprise services.

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap Go Live Show the Value

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Implementation Phase – Go Live

• Core Services

• Plan Services

• Build Services

• Run Services

• Goals• Execute a successful and secure eSOA Roadmap, with minimal risk and cost of ownership

• Customer Benefits• Realize the value of eSOA & SAP NetWeaver and enhance existing solutions

• Implementation of customer eSOA and SAP NetWeaver opportunities in a proven way

• Confident partner in implementing eSOA and SAP NetWeaver projects

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap Go Live Show the Value

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Operations Phase – Show the Value

• Core Services

• Continuous Operations and Governance

• eSOA / SAP NetWeaver Community

• Become an eSOA leader in your Industry

• Goals• Enable our customers to be perceived as innovators and technology thought leaders, by

showcasing their business strategies and use of SAP NetWeaver and eSOA

• Customer Benefits• Raise awareness of the success of SAP project external and internal

• Measure and show benefits derived from eSOA and SAP NetWeaver (ROI)

• Continuously uncovering and exploiting new business opportunities

OperationsEvaluation ImplementationDiscovery

Grasp theVision

Build YourOwn Roadmap Go Live Show the Value

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Global eSOA Thought Leaders in CIO “GLP” Program

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Enterprise Service Architect Thought Leaders

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We can deliver!

• eSOA Composer:

• SAP leveraged its experience in building the industry leading AcceleratedSAP methodology to create the eSOA Composer.

• An online and offline tool to lead customers through the eSOA Adoption Program lifecycle.

• Contains enablers and accelerators for quicker time to value.

• eSOA Trained Consultants:

• SAP Consulting has build up the required skills to deliver the eSOA Roadmaps

• Partners have been signed up and trained to deliver eSOA Roadmaps

SAP and its partners have the tools, the consultants and the customer successes to lead.

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Customers are going for it

SAP NetWeaver

DIFFERENTIATION

PRODUCTIVITY

mySAPBusiness Suite

mySAPERP

Composites

ZapThink found that 2005 marked the year that most architects and IT managers moved away from asking what SOA is to asking how to get started with SOA.

Jason BloombergZapThinkJuly 2005

“

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The Best Run Businesses …

•…leverage Enterprise Services Architecture and SAP’s Business Solutions

• Boost productivity throughbest industry practices

• Differentiate through business process innovation

• Flexibility of business model, organization and technology

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Questions

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ESA Adoption with SAP NetWeaver™