business benefits of soa
DESCRIPTION
"SOA and Web services, tools that enable IT to accommodate business requests for flexibility while optimizing enterprise application investments."TRANSCRIPT
www.wipro.com
2 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Business Benefits in SOA and Web Services
R “Ray” WangPrincipal AnalystForrester Research
www.wipro.com
3 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Theme
SOA and Web services are the tools that enable IT to
accommodate business requests for flexibility while
optimizing enterprise application investments.
www.wipro.com
4 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Eleven Entry Points to SOA
• Forrester’s view on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
5 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Forrester’s Definition of SOA
Crafting an SOA platform to fulfill a vision of continuous business improvement requires a sufficiently robust definition of SOA. Forrester defines SOA as:
• A style of design, deployment, and management of both applications and software infrastructure in which:
• Applications are organized into business units of work (business services) that are (typically) network accessible.
• Service interface definitions are first-class development artifacts, receiving the same degree of design attention (and more) as databases and applications.
• Quality of service (QoS) characteristics (security, transactions, performance, style of service interaction, etc.) are explicitly identified and specified for each service.
• Software infrastructure takes active responsibility for managing service access, execution, and QoS.
• Services and their metadata are cataloged in a repository and discoverable by development tools and management tools.
• Protocols and structures within the architecture are predominantly, but not exclusively, based on industry standards (such as the emerging stack of standards around SOAP).
www.wipro.com
6 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Business IT Context for SOA
• SOA speeds business change
• SOA facilitates business connections
• SOA enhances business control
www.wipro.com
7 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Smaller components add more flexibility
HumanResources
Customerrelationshipmanagement
Service-based integrationComponent arbitration
Component arbitration
Process integration
Process integration
Productlife-cycle
management
Supplychain
management
BusinessAnalytics
GL AP ARCNHuman
resources
Businessanalytics
www.wipro.com
8 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Why move your packaged apps to SOA?
Business drivers• Adapt system to processes, not
vice versa.
• Improve usability.
• Deliver relevant analytics.
• Connect to external data and services.
• Leverage best practices and industry knowledge.
Technology drivers• Reduce custom coding through
configuration.
• Adopt open standards to reduce integration costs.
• Enable end users’ self-sufficiency.
• Provide more flexibility to use best-of-breed and composite apps.
www.wipro.com
9 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision• Current State of SOA and Web Services
• Eleven Entry Points to SOA
• Forrester’s View on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
10 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Design Your Platform for 3 Core SOA Values
• Rapid flexible business change
• Rich deep business connections
• Business level and IT level feedback and control
www.wipro.com
11 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SOA’s Three Core Value Propositions
From Your Strategic SOA Platform Vision, March 2005
www.wipro.com
12 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Application Deliverables In An SOA World
From Your Strategic SOA Platform Vision, March 2005
www.wipro.com
13 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
How Architecture and Applications Change
• Application strategy requires deep business-IT connections.• Development deliverables split strongly into services and
access channels.• Development artifact types proliferate and include much
metadata.• Architects increase their focus on patterns and infrastructure
services.• Developers' focus tightens around business functionality.• Governance becomes a critical issue, touching many platform
elements.
www.wipro.com
14 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services• Eleven Entry Points to SOA
• Forrester’s View on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
15 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
The road to SOA
Batch
On-linemidrange
Client/server
Web client
Service-oriented
architectures
1970s 1980s 1990s 2000s 2010s
www.wipro.com
16 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Thirty-Eight Percent Of Firms Use SOA
March 2006, Data Overview “Software And Services In Large Enterprises”
Base: 440 software and services decision-makersatNorth American enterprises
Don’t know6% Have an enterprise-
level strategyfor SOA
17%
Pursuing within12 months
13%
Not pursuing43% Use selectively
21%
www.wipro.com
17 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Next generation architecture timeline
Next-generation delivery dates are a moving target
SAP ESOA
Oracle Fusion
2005 2006 2007 2008 2009
Lawson Landmark
MBS Dynamics
2010
SSA
Epicor
www.wipro.com
18 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
The Final Four: major middleware ecosystems
Source: Forrester Research
Exact
IBS
Epicor
IFS
Unit 4 Agresso
Infor
Oracle
SSA Global
Oracle Fusion Middleware”Red Stack”
SAP “NetWeaver”
Microsoft “.NET”“Rainbow Stack”
Lawson-Intentia
MBS
The Sage Group
SAP
IBM WebSphere
“Blue Stack”Vendor
(open source: JBoss)
www.wipro.com
19 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Current State of SOA and Web Services
• Phase 1: Integration of heterogeneous applications across multiple platforms
• Time frame: Now
• Phase 2: Modular components within suites
• Time frame: Two to three years
• Phase 3: Market transformation to standards-based architectures
• Time frame: End of decade
www.wipro.com
20 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SOA for Apps — What it means to you
• Message-based integration — easier connections using standards
• Lowers maintenance and integration costs
• Components — more flexibility
• Assembly of industry-specific and process-oriented solutions (e.g., order-to-cash)
• Fewer vendor choices but more deployment options
• Architecture transformation — large vendors may force major upgrades by end of decade
www.wipro.com
21 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Organizations show preference for low-hanging fruit
Source: Ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references
“Of the 11 ‘SOA-related’ projects, how many are complete?”
Requires commitment
Essential but hard
Impacting
Low-hanging fruit
35
23
16
6
21
9
17
5
13
6
5
Single sign-on
Internal self-service
External self-service
Operational dashboards
Business insight
Forecasting and planning
Regulatory compliance
Business process improvement
Shared services
Knowledge management/collaboration
Master data management
www.wipro.com
22 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Organizations ease their way into SOA-related projects
“Please rank your top three ‘SOA-related’ projects for 2006 to 2008.”
Requires commitment
Essential but hard
Impacting
Low-hanging fruit10
25
29
7
11
8
33
8
9
5
13
Single sign-on
Internal self-service
External self-service
Operational dashboards
Business insight
Forecasting and planning
Regulatory compliance
Business process improvement
Shared services
Knowledge management/collaboration
Master data management
Source: Ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references
www.wipro.com
23 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Eleven Entry Points to SOA
• Forrester’s View on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
24 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Eleven entry points on the road to SOA
Business Drivers Sample Technology Solution
• Forecasting and planning What ifs, forecasting, scenario planners
• Regulatory compliance Auditing, EAI, security, instance consolidation
• Shared services Instance consolidation, BPM tools, service repos
• Business process improvement Web services repositories, BPEL tools, BPM
• Operational dashboards BI, portals, reporting tools, analytic frameworks
• Single sign-on Security, LDAP, user management, portals
• External self-service Portals, security, Web services, PRM, SRM
• Knowledge mgmt./collaboration Document management, collaboration tools
• Master data mgmt. Data hubs, DQM, EAI, ETL
• Business insight BI, analytics, cubes, reporting tools, warehouses
• Internal self-service Portals, security, Web services, EAI
www.wipro.com
25 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
4 Types of SOA Projects
Change Management
Deployment Times
Sponsorship Level
Business Need
Business Case Hurdle
Payback/TEI
Low Hanging Fruit Impacting
Essential but Hard
Requires Commitment
Low Low Med – High High
3-6 mo 3-6 mo 6-9 mo 9 – 12 mo
Departmentalto Divisional
Divisional to Corporate
Mostly Corporate
Departmentalto Divisional
Operational Strategic Operational Strategic
Minimal Moderate Moderate Challenging
Immediate Mid-Term Immediate to Mid-Term
Mid to Long Term
www.wipro.com
26 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Business need
Commitment to change
StrategicOperational
Projects need to be evaluated on business need and change complexity
Requires commitmentEssential but hard
ImpactingLow-hanging fruit
• Regulatorycompliance
• Single sign-on (SSO)
• Internalself-service
• Shared services
• Master datamanagement
• Businessinsight• Operational
dashboards
• Knowledge management
• Businessprocess improvement
• Externalself-service
• Forecastingand planning
High
Low
www.wipro.com
27 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Leverage common building blocks
Technology SolutionIdentityLDAPSecurityAuditing and trackingPortalsEAIEIIETLInformation warehousesDocument managementCollaboration toolsBPM toolsWeb service repositoryBPEL toolsBPEL libraryBusiness intelligenceActivity monitoringAnalytics ReportingScenario generatorsForecastingCustomer data integrationProduct information ManagementData hubsData quality managementDevelopment tools
X = Majority O = Optional
Single sign-on
Internal Self-
service
External Self-
serviceX X XX X XX X XX X XX X XO O X
O XO O
OO OO OO OO OO O
O O O
Low-hanging fruit
Operational dashboards
Business insight
Forecasting and
planning
O O OX X OX X OX X OX X X
X OX OX X
XXX
O O OO O O
Impacting
Regulatory compliance
Business process
improvementXXXX X
XXXX OO
OXXXXXXXX
O O
Essential but hard
Shared services
Knowledge management/ collaboration
Master data management
X XX XX XX XO OO O XO O XO XO O XO XO XXOOOOOOO
O X
O XO XO XO O O
Requires commitment
www.wipro.com
28 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Eleven Entry Points to SOA
• Forrester’s View on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
29 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP
• SAP is the furthest along of the major apps vendors in moving to SOA
• Enterprise Services Oriented Architecture (ESOA) represents the service-enablement of the application suite
• NetWeaver is the middleware platform
• Business Process Platform is the unifying marketing umbrella
• Timetable for completion is 2007• Core ABAP code will be retained – not a total re-write
www.wipro.com
30 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP’s business process platform vision
Source: SAP
www.wipro.com
31 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP’s business process platform vision
SAP NetWeaver 2004s
myS
AP
200
5
OtherApps
OtherPlatforms
OtherBusinesses
IndustryStandards
SAP Partner CustomxApps
Application Components
xAppsxApps
CRM ERP SCM …EnterpriseService
Repository
Portal Devices Office RFIDRendering
Source: SAP
www.wipro.com
32 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP’s business process platform vision
Source: SAP
CONTINUALL
Y
IMPROVIN
G
COLLABORATIV
E
EVENT DRIV
EN
CONFIGURABLE
EXTERNAL IN
FO
INTEGRATIO
N
SUPPLIER
FLEXIB
ILIT
Y
i
SAP NetWeaverBusiness Process Platform
EnterpriseService
Repository
Home Grown/
ISV ProcessComponents
SubsidiaryBusinesspartner
SAPR/3
Analytics
CompositeApplications
ServiceOriented
Architecture
www.wipro.com
33 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP: The Move From Monolith To Components
Source: Forrester Research
www.wipro.com
34 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
SAP’s Vision is a Process-Driven Architecture
Source: Forrester Research
www.wipro.com
35 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Forrester’s View on SAP
• Case Studies• Recommendations
• Questions and Answers
www.wipro.com
36 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Global Pharma
• Background: Upgrade from 4.6 to mySAP ERP, CRM, and SCM, consolidating 21 ERP instances to 3 global centers. Legacy applications for discovery maintained.
• Netweaver Benefits: • Integration framework to legacy apps, PeopleSoft HR, and Siebel
CRM.
• Business intelligence unified
• Workflow, alerts, and notifications centralized
• Lessons Learned:• Implementation partners need to have vertical experience
• Change management key to success
• Shared services framework lead IT efforts
• SAP Customer Competency Centers key to success
www.wipro.com
37 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
High Tech Manufacturer
• Background: ERP and SCM consolidation project to mySAP ERP
• NetWeaver benefits:
• Integration framework from Agile and Baan systems to mySAP ERP
• Master data harmonization of PLM information for data unification
• Lessons Learned:
• Improve collaboration between IT and Businesss
• Communications framework key to process mapping
• End to end workflows should be mapped prior to implementation
www.wipro.com
38 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Forrester’s View on SAP
• Case Studies
• Recommendations• Questions and Answers
www.wipro.com
39 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Successful projects have a business and IT focus
• Regulatory requirements and instance consolidation
• Self service enablement and modernization/ upgrade
• Shared services and instance consolidation
• Business analytics and integration
• Order optimization and customer data integration
www.wipro.com
40 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Recommendations
• Stay current on releases to keep migration options open.
• Consolidate disparate enterprise applications.
• Identify technical solutions that meet business needs and are designed with SOA in mind.
• Support one or two middleware platforms to achieve SOA design.
• Define process and services upfront.
• Ease into SOA and Web services through entry points on the road to SOA.
• Implement with significant change management and training.
www.wipro.com
41 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Selected bibliography
• June 9, 2005, Market Overview, “ERP Applications – The Technology and Industry Battle Heats Up”
• April 7, 2005, Market Overview “Midsize ERP Vendors Fend Off Newcomers”• April 19, 2005, Tech Choices “To Be or Not to Be Single Instance ERP”• July 26, 2005, Tech Choices “Enterprise Software Licensing Strategies”• November, 10, 2005, Tech Choices “Forrester Wave: Enterprise Applications
Software Licensing, Q4 2005”
www.wipro.com
42 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Agenda
• The Business-IT Context for SOA
• Crafting Your SOA Platform Vision
• Current State of SOA and Web Services
• Forrester’s View on SAP
• Case Studies
• Recommendations
• Questions and Answers
www.wipro.com
43 Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Questions