erp and soa

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  • 1. April 20, 2006. Call in at 12:55 p.m. Eastern Time R Ray Wang Senior Analyst Forrester Research Teleconference Eleven Entry Points To SOA: How To Prepare For Upcoming Enterprise Application Trends And A World Of SOA
  • 2. Theme SOA and Web services are the tools that enable IT to accommodate business requests for flexibility while optimizing enterprise application investments.
  • 3. Agenda
    • Enterprise application trends
    • The business and IT case for SOA
    • Eleven entry points to SOA
    • Early adopter deployment trends
    • Recommendations
    • Questions and answers
  • 4. 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.
  • 5. 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.
  • 6. 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 organizations major IT themes for 2006? Base: 868 decision-makers at North American enterprises *Source: Forresters Business Technographics November 2004 North American And European Benchmark Study 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 ITs architecture (e.g., service-oriented architecture) Deploy portfolio management for IT/business alignment
  • 7. 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 organizations 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
  • 8. 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 Signicantly upgrade the security environment Improve integration between applications in the company Move software implementations to standards-based technology Reduce the number of major applications vendors that we work with Reduce the number of software infrastructure 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 your IT organizations major initiatives for 2006?
  • 9. Agenda
    • Enterprise application trends
    • The business and IT case for SOA
    • Eleven entry points to SOA
    • Early adopter deployment trends
    • Recommendations
    • Questions and answers
  • 10. The future of enterprise apps: Next-generation architecture strategies the road to SOA Batch On-line midrange Client/ server Web client Service- oriented architectures 1970s 1980s 1990s 2000s 2010s
  • 11. Forresters 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
  • 12. Forresters 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
  • 13. Business IT context for SOA
    • SOA speeds business change.
    • SOA facilitates business connections.
    • SOA enhances business control.
  • 14. Smaller components add more flexibility Service-based integration Component arbitration Component arbitration Process integration Process integration Human Resources Customer relationship management GL AP AR CN Human resources Product life-cycle management Supply chain management Business Analytics Business analytics
  • 15. 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.
  • 16. 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.
  • 17. The Final Four: major m

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