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SOA and ERP

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Selim BurduroğluEnterprise ArchitectFriday, December 2, 2005

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Agenda

• ERP Market Trends and Evolution• What is Service Oriented Architecture (SOA)?

• What makes up an SOA?• Definitions and Brief Description

• SOA Stages for ERP• Project Fusion & Oracle Fusion Middleware• Evolution of Application Architecture• Benefits of SOA• Bottom Line

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ERP Market trends

• Continuing vendor consolidation• Fewer large new deals, more sales to existing customers• Emphasis on recurring revenue

• Maintenance, hosting, subscription licensing• Focus on midmarket and industries• Growing importance of SOA platforms in technology

buying decisions• Simplicity and usability (UI, tools, reporting)• Lifecycle Management (implementation, upgrades)

The Emergence of ‘Applistructure’Ken Vollmer

March 18, 2003

The increasing availability of prebuilt horizontal and vertical business processes designed to be used with application integration middleware is a trend that will have significant impact on the software market … The increased usage of prebuilt business processes is resulting in a blurring of the boundary between application software and infrastructure middleware and creating a new class of software that could be referred to as “applistructure” software.

Evolution According to

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Evolution According to

• ERP systems became a universe of their own• Integration was never a key strength of ERP system• ERP vendors are stuck in own development history• Users don’t like revolutionary changes to the applications

world• Web Services and SOA (Service Oriented Architecture)

are the new driving forces for architectures

Source:ERP&SOA – A Contradiction? Meta Group Interactive BriefingParis – 29 April 2004Ruediger Spies (VP Enterprise Application Strategies)

Evolution Summary

ApplistructureApplistructureApplications

Infrastructure

“the emphasis in the war for domination in ERP systems is moving away from business functionality and toward a battle about platforms.”

Stewart McKie of Ventana ResearchMarch 14, 2005

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Applistructure

• A successful applistructure will comprise five elements:Continuously decrease the operational cost of information technology Permit a fast and flexible reconfiguration of business processes Deliver secure and reliable service levelsPermit upgrades and product enhancements on the flyAllow different technology providers as well as custom/legacy code to plug and play seamlessly

Source:Applistructure: The Next Big or Bust Thing for Enterprise Applications?Monday, January 03, 2005Erik Keller

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What is SOA?

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?SOAXM

LWSDL

BPEL

UDDI

SOAP

WS-S

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General Contractor XBPEL

Process

UDDI

“Concrete Estimates” call 555-

1234

(WSDL)

XMLXM

L

XML – Extensible Markup Language

UDDI – Universal Description, Discovery and Integration Service

WSDL – Web Services Descriptive Language

Web Service

Web Service

Web Service

Web Service

Web Service

Web ServiceWeb Service

BPEL – Business Process Execution Language

SOASOAP

SOAP – Simple Object Access Protocol

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Definitions

A service is a unit of discrete business functionality.

A service oriented architecture provides a standards based platform that allows services to be provided, discovered, and consumed by each other, to facilitate the creation of a orchestrated business process.

A service oriented application is a set of application functionality that fully leverages the power of a service oriented architecture.

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SOA stages for ERP

• Integration of heterogeneous applications across multiple platforms• Time frame: Now

• Modular components within suites• Time frame: Two to three years

• Market transformation to standards-based architectures• Time frame: End of decade

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The Future of Applications

• Leveraging Infrastructure to lower cost of obtaining and using new application functionality(Composite App) – Applistructure

• Based on an Application Infrastructure – Service-Oriented Architecture

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FBT PAY GNTS

TRDS

Client

Customs

RREIPS Integrated A/C

Refunds

RBADef

PaymentsExcise

CR

PKI

ECI ADD AWA ELS

Client StaffRemote

StaffTAX

AGENTS

GCI

Call Centres

WOC

CCD

TASS

StaffPhone

ComplianceStaff

BOA

Ref material

Bus. Intel

NTS A/c

BEP

CDCCCWMS

BANK

DDDR

1

Data…….

Penalty

Business

IVR

1

Common Architecture Today

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What is SOA Really About?

4040

6565

%% of IT Budgets spent on Integration Activitiesof IT Budgets spent on Integration Activities

%% of ERP Application Implementation Costs of ERP Application Implementation Costs spent on Integrationspent on Integration

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Integration vs. Interoperability

• Integration• Two (or more) applications exchange data

• Interoperability• Two (or more) applications are able to exchange information (if they want to).

It is About Reusability!

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Oracle Fusion Middleware

Oracle InformationAge Applications

EBS

JDE

PSFT

Project Fusion

Time

Project Fusion• A evolving process

or “journey”• Initiative to build

• SOA-based Information Age Applications

• and the Fusion Middleware required to enable them

Project Fusion

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Oracle Fusion Middleware

• Family of integrated, standards-based, customer-proven products

• Enables greater agility, better decisions, and reduced cost & risk today

Fusion Middleware IS that infrastructure.

And is available now!

DevelopmentTools

Orchestration

Security

Portal

Integration

ManagementCollaboration

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Evolution of Application Architecture

Infrastructure DBTools

Applications

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…and more applications…

Applications

Infrastructure DBTools DBTools DBToolsDBTools

Issues• Inconsistent look-

and-feel• Inflexible, hard to

change• Poor information

access, integrity

Leads to…• Multiple user

interfaces• Fragmented

processes• Silos of data

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Applications

‘Middleware’Orchestration

Infrastructure

BusinessProcess

The Onboarding Process

DBTools DBTools DBTools DBTools

Core HR eRecruit Badging Security

Promise of Middleware

• Agility & interoperability

• Reduces TCO• Adaptable BPs

Middleware• ‘Platform’ solution

based on industry standards

• Single vendor sourced

• ‘Holistic’ business process management

Evolution of the Platform Emergence of Orchestration

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Applications

‘Middleware’Orchestration

Infrastructure

BusinessProcess

The Onboarding Process

DBTools DBTools DBTools DBTools

Core HR eRecruit Badging Security

However today’s applications...

• Still manage their own workflow

• Need to retrofit industry standards

• Don’t natively leverage the Middleware capabilities

Evolution of the Platform Emergence of Orchestration

?

?

?

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‘Middleware’

Applications

Orchestration

Infrastructure

BusinessProcess

The Onboarding Process

Evolution of the Applications Emergence of Services Oriented Architecture (SOA)

DBTools

SOA SOA

DBTools DBTools DBTools

Core HR eRecruit Badging Security

Services Services

SOAApplications•Standards based Business Process Management•Common language shared by applications•Plug and play functionality

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DBTools

‘Middleware’

Fusion Middleware: The Enabler

Orchestration + Infrastructure

Oracle Fusion Middleware

Services

Applications

Orchestration

Infrastructure

BusinessProcess

Business Process

DBTools

Services

SOA SOA

DBTools DBTools DBTools

Oracle Fusion Middleware•Family of integrated, standards based, components•Based on existing, mature technology products•Over time adding the best design ideas from

–eBusiness Suite–PeopleSoft

Enterprise–JD Edwards

EnterpriseOne

•Data Hubs•XML Publisher

•Identity Mgmt•Integration

•JDeveloper

•Oracle Portal•BPEL / BAM

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Oracle

Microsoft

IBMSAP

BEASystems

SunMicrosystems

RiskyBets Contenders Leaders

StrongPerformers

Currentoffering

StrategyWeak

Weak

Strong

Strong Market presence

Novell

Application Server Leader

Source:Forrester Wave™: Application Server Platforms Q1 ’05

Source:Applistructure: The Next Big or Bust Thing for Enterprise ApplicationsAMR Research Report, 1/3/05

Applistructure Leader

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Oracle’s SOA Provides

• Integration Repository – Provides single definition of all interfaces and catalogs all published APIs

• Business Activity Monitoring – Allows business users to set performance targets, monitor exceptions

• Business Process Execution Language – using GUI and Enterprise Services, business analysts can adjust business processes

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Benefits of SOA

• Simplified Integration – Connect disparate applications quickly by

creating standardized services

• Increase Reuse – Applications components are easily used saving

development time and increasing application reliability

• Easier Maintainability – Changes/Version are not all-or-nothing

• Greater Agility – Rapid deployment of business processes or

modifications of existing ones in response to market changes

• Reduced Risk – Adaptable processes and single security model for

accessing services enables ongoing regulatory compliance in a timely, cost-effective manner

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Applistructure

• A successful applistructure will comprise five elements:Continuously decrease the operational cost of information technology Permit a fast and flexible reconfiguration of business processes Deliver secure and reliable service levelsPermit upgrades and product enhancements on the flyAllow different technology providers as well as custom/legacy code to plug and play seamlessly

Source:Applistructure: The Next Big or Bust Thing for Enterprise Applications?Monday, January 03, 2005Erik Keller

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Why Oracle? Insight – Agility - Lowest cost

• Proven technology to implement SOA

• Richest set of applications services

• Industry leader in grid computing

• Delivers accurate information faster, for smarter decisions

• With end-to-end security

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The Bottom Line

• Web Services is an enabler of Service Oriented Applications not the answer

• Service Oriented Applications should be transparent to end users and increase productivity

• Oracle is committed to delivering the both the parts and the solution to meet your business needs

AQ&

Q&A

Thank You!