Download - ERP and SOA

TeleconferenceEleven Entry Points To SOA: How To Prepare For Upcoming Enterprise Application Trends And A World Of SOAR “Ray” WangSenior AnalystForrester Research

April 20, 2006. Call in at 12:55 p.m. Eastern Time

2Entire contents © 2006 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.


Agenda

• Enterprise application trends

• The business and IT case for SOA

• Eleven entry points to SOA

• Early adopter deployment trends

• Recommendations

• Questions and answers


Enterprise apps vendor and market trends

• Vendor consolidation continues

» Growing set of $1B vendors promotes stability.

• Fewer large new license deals

» Most sales are to existing customers.

• Focus on midmarket and industries

• SOA gains importance in technology buying decisions.

• Transition to recurring and variable revenue models.

» Maintenance is driving industry growth.


Trends in ERP deployment

• Use a single ERP vendor versus multiple vendors.

• Run fewer instances or single instance.

• Customize less and reduce over time.

• Delay upgrades as long as possible.

• Add ERP modules to replace one-off systems.

• Use hosting, outsourced support, and SaaS.

• Integrate using Web services.


Applications drive 2006 IT spending priorities for enterprises . . .

Source: February 3, 2006, Data Overview “North America's 2006 Enterprise IT Spending Outlook”

“Which of the following initiatives are likely to be one of your IT organization’s major IT themes for 2006?”

Base: 868 decision-makers at North American enterprises

*Source: Forrester’s Business Technographics® November 2004 North American And European Benchmark Study

9%

10%

Critical priority PriorityRank10

2006 2005*

40%

35%

34%

34%

31%

31%

25%9%

19%6%

23%

21%

19%

16%

18%

13%

4

2

5

3

N/A

N/A

N/A

N/A

1

2

3

4

5

6

7

8

Significantly upgrade security environment

Upgrade disaster recovery capabilities

Consolidate IT infrastructure

Support changes in corporate governance(e.g., Sarbanes-Oxley)

Replace or upgrade existing application systems

Internet/eCommerce initiatives

Redesign/redeploy IT’s architecture(e.g., service-oriented architecture)

Deploy portfolio management for IT/business alignment


… And midsize businesses

Source: Business Technographics® December 2005 North American And European SMB IT Budgets And Spending Survey

“Which of the following initiatives are likely to be one of your IT organization’s major IT themes for 2006?”

6%

12%

14%

14%

16%

17%

19%

19%

20%

16%

35%

35%

34%

34%

34%

44%

33%

32%

39%

41%

41%

32%

28%

29%

41%

40%

11%

11%

10%

17%

20%

8%

Implement or expand IT outsourcing

Support changes in corporate governance

Significantly upgrading disaster recovery capabilities

Significantly upgrading your security environment

Replacing/upgrading existing apps

Internet/eCommerce initiatives

Implementing major software app

Improve the efficiency of IT by delivering more with less

4 = It's a critical priority 3 2 1 = Not on our agenda

Base: 133 executives at North American midsize businesses


Major initiatives in 2006 can be addressed through projects that incorporate a path to SOA

Source: March 8, 2006, Data Overview “Software And Services In Large Enterprises”

4 3 2 1

49%32%16%

4%

38%35%18%9%

38%32%20%10%

44%26%19%11%

24%28%34%14%

28% 26%35% 11%

11%25%36%28%

8%19%37%36%

(4 [it’s a critical priority]to 1 [not on our agenda])

Significantly upgrade the security environment

Improve integration between applicationsin the company

Move software implementations tostandards-based technology

Reduce the number of majorapplications vendors that we work with

Reduce the number of softwareinfrastructure vendors that we work with

Implement application portfolio management

Adopt SaaS

Reduce software costs in any way

Base: 603 software and services decision-makers at North American enterprises(percentages may not total 100 because of rounding)

“Which of the following are likely to be one of yourIT organization’s major initiatives for 2006?”


Agenda





• Recommendations



The future of enterprise apps: Next-generation architecture strategies — the road to SOA

Batch

On-linemidrange

Client/server

Web client

Service-oriented

architectures

1970s 1980s 1990s 2000s 2010s


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.

Source: December 22, 2005, Topic Overview “Topic Overview: Service-Oriented Architecture”


Forrester’s definition of SOA (cont.)

» 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).

Source: December 22, 2005, Topic Overview “Topic Overview: Service-Oriented Architecture”


Business IT context for SOA

• SOA speeds business change.

• SOA facilitates business connections.

• SOA enhances business control.


Smaller components add more flexibility

Service-based integration

Component arbitration

Component arbitration

Process integration

Process integration

HumanResources

Customerrelationshipmanagement

GL AP ARCNHuman

resources

Productlife-cycle

management

Supplychain

managementBusinessAnalyticsBusinessanalytics


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.


Customer challenges with the SOA direction

• Expensive and disruptive upgrades

• Lock-in to middleware platforms; fewer apps vendor choices

• Unproven benefits

• Vendors are over-promising and under-delivering

» Marketing hype moving farther from reality.


The Final Four: major middleware ecosystems

Source: Forrester Research

Vendor

IBM WebSphere

“Blue Stack”Microsoft

“.NET”Oracle “Fusion

Middleware”SAP

“NetWeaver”

SAP

Oracle

The Sage Group

MBS

Lawson-Intentia

SSA Global

Infor

Unit 4 Agresso

IBS

Epicor

IFS

Exact

(open source: JBoss)


Agenda





• Recommendations



Eleven entry points on the road to SOABusiness 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


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


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


Agenda





• Recommendations



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


Business insight

Forecasting and planning


Business process improvement

Shared services

Knowledge management/collaboration



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


Business insight

Forecasting and planning


Business process improvement

Shared services

Knowledge management/collaboration




Enterprises are still undecided on vendors of choice

28

24

21

12

11

9

45

IBM

SAP

Oracle

Microsoft

SSA Global

Lawson-Intentia

Don't Know

“Which three vendors will you most likely turn to for an SOA application/middleware platform?”



New SOA survey: Participate now and receive first-hand survey results

• How many employees are in your organization?

» 6-99, 100-499, 500-999, 1000-4999, 5000-19,999, 20,000+

• Choose an industry that best describes your organization.

» Manufacturing, Retail and Wholesale Trade, Utilities and Telecommunication, Business Services, Media/Entertainment/Leisure, Finance and Insurance, Public Sector

• Of the 11 “SOA-related” projects identified, how many are complete?

» 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


New SOA survey: Participate now and receive first-hand survey results (cont.)

• Please rank your top three “SOA-related” projects for 2006 to 2008.

» 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

• Which three vendors will you most likely turn to for an SOA application/middleware platform?

» IBM, Lawson-Intentia, Microsoft, Oracle, SAP, SSA Global


Agenda





• Recommendations



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.


Selected bibliography• Planned: April 18, 2006, Tech Choices “The Forrester Wave™: Order

Hubs, Q2 2006”

• March 31, 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of Architectures Begin!”

• March 6, 2006, Trends “Trends 2006: Master Data Management”

• February 7, 2006, Trends “Trends 2006: ERP Applications For SMBs”

• February 6, 2006, Best Practices “A Tale of Two Models of Instance Consolidation”

• February 6, 2006, Trends “Trends 2006: The Order Management Cycle”

• January 6, 2006, Trends “Trends 2006: Enterprise Software Licensing”

• November 10, 2005, Tech Choices “The Forrester Wave™: Enterprise Applications Software Licensing, Q4 2005”

• November 3, 2005, Best Practices “Designing the Order Management Cycle”

• October, 31, 2005, Trends “In the Oracle-Siebel Acquisition CDI and Component Assembly Bring Unexpected Benefits”

• October 25, 2005, Quick Take “Memo to Microsoft: Why Not Buy Siebel?”

• August 15, 2005, Quick Take “SSA Global Makes Bold Front-Office Play”

• August 9, 2005, Quick Take “Rebuilding The JD Edwards Brand”

• July 26, 2005, Quick Take “Demystifying The Confusion On Project Fusion”

• July 26, 2005, Tech Choices “Enterprise Software Licensing Strategies”

• July 14, 2005, Teleconference “The Future Of ERP Applications”

• June 9, 2005, Market Overview “ERP Applications – The Technology And Industry Battle Heats Up”

• June 3, 2005, Quick Take “A Merger Of Equals: Lawson And Intentia”

• May 16, 2005, Quick Take “Lawson Unveils Monumental Technology Direction”

• April 19, 2005, Tech Choices “To Be Or Not To Be Single-Instance ERP”

• April 7, 2005, Market Overview “Midsize ERP Vendors Fend Off Newcomers”

• April 6, 2005, Tech Choices “Oracle-PeopleSoft Part 2: Moving Toward Fusion”

• March 15, 2005, Tech Choices “Oracle-PeopleSoft Part I: Near-Term Focus On Organization And Product Delivery”

• February 24, 2005, Tech Choices “Beyond Order-To-Cash”


R “Ray” Wang

+1 650/581.3808

[email protected]

www.forrester.com

Thank you


Forrester Vendor Selection Boot Camp• Who: CIOs, IT decision makers, vendor selection

committees, business unit leaders, IT team leaders, procurement staff, internal consulting team members

• What: SmartSelect Vendor Selection Methodology

• When: August 23rd, 2006

• Where: Forrester HQ, Cambridge, MA

• Why: Gain leverage in vendor selection and upgrades

– Gain confidence in the vendor selection process

– Develop skills in future state process mapping

– Learn instance consolidation strategies

– Identify vendor short listing techniques

– Understand licensing and pricing strategies

• Contact: For more information, please call +1 617/613-5905 or email

[email protected]


Forrester Boot Camp SOA: Management Strategies For Success

• Forrester Vice President Randy Heffner and Principal Analyst Ken Vollmer teach attendees the organizational tools and methods they need to begin SOA implementation efforts within their enterprise.

• Date: Thursday, May 25, 2006

• For more information, please call +1 617/613-5905 or email [email protected].


Questions and Answers

• Now: Follow the Teleconference instructions

• Privately: Set up a 30 minute inquiry with us or set up a 1-hour advisory session

• In Person: Set up a 1:1 at Forrester’s IT Forum EMEA 2006: GigaWorld in Lisbon, Portugal

Download - ERP and SOA

Top Related