Andrew Leigh Director, Integration Product Marketing, salesforce.com Demystifying ERP Integration Take Your CRM Implementation to the Next Level Robert Ball Activant Solutions Integration Lead Randy Berger Siemens, Process Development Manager
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Thousands of Customers Integrate with Salesforce Every Day Now Serving Over 1 Billion API Integration transactions per Month Most Common is ERP Integration!
ERP Applications Are Often the First Installed <ul><li>Why First? </li></ul><ul><li>General Ledger </li></ul><ul><li>Operational Efficiencies </li></ul><ul><li>Compliance </li></ul><ul><li>Financial Accountability </li></ul><ul><li>What is installed? </li></ul><ul><li>Client Server </li></ul><ul><li>Smaller Set of Users </li></ul><ul><li>Rigid Processes </li></ul><ul><li>Highly Customized </li></ul>“ Applications will be delivered as services, and vendors that are not delivering applications as services that can be composed and decomposed according to your business needs will go away.” Charles Abrams, Research director, Gartner Inc. ERP
Proven Success with Oracle Just a few of the Oracle customers that have implemented Salesforce Destination Process Implementation Customer Partner 8 weeks 360 Degree Customer View Borland Salesforce 12 Weeks Customer Master, Order Master, Over 30 Applications ADP Customer and Account Master 360 Degree Customer View Customer and Product master Student recruitment using Oracle BPEL Mgr Customer and Product Master and real-time IP telephony Salesforce 8 weeks Salesforce.com Oracle BPEL 8 weeks Heald College Cast Iron 10 days SPSS Scribe 12 Weeks Adesa 30 days Cast Iron InfoUSA
Proven Integration Success for SAP Customers Destination Process Implementation Customer Salesforce Order Management Customer and Product Master Customer and Product master Forecasting and order management Account and Customer Master Partner Salesforce 12 Weeks Littlefuse Salesforce 16 Weeks Symbol Technologies Cast Iron 5 days Open Text 12 Weeks Esker 5 days Cast Iron Magma <ul><li>After three years, integrating Siebel with SAP was still something we dreamed about we just couldn't make it work. With Apex, we managed to complete our integration project in 90 days" </li></ul><ul><ul><ul><ul><ul><li>Jean-michel Berard, Esker Software Snap </li></ul></ul></ul></ul></ul>
Why Integrate My ERP Data with the Rest of the Company? Invoices Products Orders Pricing Shipping Sales Call Center Marketing ERP Effective Segmentation Accurate Forecasting Customer Retention “ Integrated front and backend processes focus the enterprise on customer demand” Find Quote, Gartner Inc.
Where to Start? Let the Process Drive the Requirements Oracle eBusiness Suite Example Customer Master Product Master Pricing Master Invoicing/Billing Master Order Master
: Five paths to integration success A comprehensive family of technologies built on top of the Force.com Web Services API Mash-ups from AppExchange Integration Middleware Connectors Developer Toolkits 2 3 4 5 Native Desktop Connectors Native ERP Connectors 1
: Three paths to ERP integration success Mash-ups from AppExchange Native Desktop Connectors Integration Middleware Connectors Developer Toolkits Native ERP Connectors 2 3 A comprehensive family of technologies built on top of the Forece.com Web Services API 1
Out of the Box Connectivity Provides out of the box connectivity to Oracle e-Business Suite 11i (through JDBC) or SAP BABIs Packaged Transformations and Integration Flows Pre-build XSL transformations and Business Flows for Customer Master records (mapping Salesforce Accounts and Oracle and SAP Customer Records Cross Reference Management Provides capability to cross-reference the Salesforce Account ID and the Oracle and SAP internal identifiers. Monitoring Console Intuitive and familiar interface for managing and monitoring integration processes. 1 2 3 4 Out of the box solution for integrating Salesforce.com and Oracle e-Business Suite 11i and SAP r3 1 2 3 4 1. Force.com Connect for Oracle 11i and SAP r3 1
<ul><li>Force.com Connect for Oracle 11i example Packaged Transformations </li></ul><ul><li>Bi-directional mappings and transformations </li></ul><ul><li>Maps to both, the TCA Party and Account layer in the Oracle Trading Community Architecture </li></ul>
Activant – Increased Sales Productivity with Integration to Oracle 11i Force.com Connect for Oracle 11i and Fusion Middleware Challenge <ul><li>Saddled with inconsistent view of customers across multiple applications </li></ul><ul><li>Wanted to ensure customer profile data is the same across systems </li></ul><ul><li>Sought to increase sales productivity by providing critical customer data to sales teams through a single interface </li></ul><ul><li>Poor business visibility and disparate CRM and other enterprise systems resulted in low productivity </li></ul>Solution Results <ul><li>Used Force.com Connect for Oracle 11i, a native connector from Salesforce, to synchronize customers across systems </li></ul><ul><li>Customer master integration will serve as the springboard for process integration via Oracle Fusion BPEL manager </li></ul><ul><li>Next phases: </li></ul><ul><ul><li>Contacts </li></ul></ul><ul><ul><li>Web Portal </li></ul></ul><ul><ul><li>Install Base </li></ul></ul><ul><ul><li>Items, Pricing </li></ul></ul><ul><ul><li>Order Entry </li></ul></ul><ul><li>Higher sales productivity </li></ul><ul><li>Sales can now access critical ERP data via Salesforce </li></ul><ul><li>Reduced time per sales call </li></ul><ul><li>Synchronized Customer Master across front and back office </li></ul><ul><li>Solution installed in minimal time under budget. </li></ul><ul><li>Higher quality data, better communication between Sales and Finance departments </li></ul>Salesforce Oracle 11i
Activant – Who are we Systems Integrator Leading provider of POS/ERP solutions for medium sized businesses in 4 vertical markets: Hardware Stores, Auto Parts, Lumber/Building, Wholesale Distribution. Revenue = $500 million/year. Aprox 400 sales reps. Complete Solutions Provider Integrate the hardware, OS, database, apps software, connectivity, content, and services to be the “IT Department” for our customers. Steep Growth Curve Several acquisitions per year ($50 million - $200 million companies). Most Sales to Existing Customers Over 2/3rds of sales revenue comes from existing customers. Aprox. 2/3rds of total revenue comes from recurring fees (license, content subscription & services). Activant Solutions Inc. – Livermore, CA
Activant – ERP Integration Challenge Faced Business Challenges <ul><li>Change processes in Finance to maintain needed data on Oracle </li></ul><ul><li>Persuade Sales Reps to allow Oracle to overwrite “their” data </li></ul><ul><li>Transformation business logic </li></ul><ul><li>Synchronize the meaning of data items </li></ul><ul><li>Develop feedback channels (Sales – Finance) </li></ul><ul><li>KNA process </li></ul>Technical Challenges <ul><li>Data denormalization issue </li></ul><ul><ul><li>“ Safety Net” concurrent requests </li></ul></ul><ul><ul><li>Packing multiple data items into a single descriptive flexfield </li></ul></ul><ul><li>Oracle Business Event system (Workflow) </li></ul><ul><ul><li>Implementing changes </li></ul></ul><ul><ul><li>Overloading </li></ul></ul><ul><li>KNA Process </li></ul><ul><ul><li>Oracle descriptive flexfield Salesforce workflow </li></ul></ul><ul><li>Implementation strategy </li></ul><ul><ul><li>Comparing Oracle & Salesforce data </li></ul></ul><ul><ul><li>Phased go-live using data load utility </li></ul></ul><ul><ul><li>Temporary Salesforce workflow </li></ul></ul>
Activant – Solution - Roadmap 1 Business Analysis Most of Activant’s was already done as a result of Legacy integration, and initial Salesforce data load. Activant had additional work resulting from Legacy system data not being on Oracle yet. Develop on Oracle First The ERP effort is bigger, more risky and has more “red tape”. Salesforce development & Force.com Connect development is much smaller – more fun. Have Sales Sign Off on the Data Show them the differences between what’s in Salesforce now and what Oracle will overwrite with. Work through the differences until Sales is satisfied before implementing. Go Live in Phases (if Possible) By coupling data signoff with Go Live, the process is smother. By implementing in phases it is more manageable. 2 3 4
Activant – Benefits Increased Sales & Finance Productivity Hidden cost of sales having to “look up” information eliminated, especially when it required calling someone. Finance gets better feedback and can get the data correct quicker (less back & forth). Team Spirit Before, Sales complained about the data that Finance maintained and their responsiveness. Now it’s a partnership and Sales shares responsibility for data accuracy. Better Reporting By having the data synchronized, reporting on Oracle & Salesforce data together is easy. More Accurate Data With the feedback loop, the Oracle data is more accurate. Easy to Monitor & Maintain Oracle alerts & Salesforce workflow notifications provide electronic alerts, often before problems occur.
2. Integration Middleware Connectors Force.com Connect Category on the AppExchange Data Integration Integration Appliances Middleware Composites SOA Certified connectors to more than 30 integration middleware partners Document Management
Proven Enterprise Platform ERP Integration Success Middleware Process Time Customer End Point 12 Weeks Orders, Products, Customer Master Brocade 16 Weeks Customer, Pricing and Material Master Ashland Shell Rolls Royce Cisco Heald College Dell 6 months SOA Customer Data Integration 12 weeks Student Recruitment In Process Customer and Material master In Process Order Management Customer and Material Master 12 Weeks
<ul><li>Freedom to develop highly custom integrations </li></ul><ul><li>Leverage existing language and IDE experience </li></ul><ul><li>Interact with Salesforce data via the Apex Web Services API </li></ul><ul><li>Access toolkits and free developer edition accounts on the AppExchange Developer Network </li></ul>http://www.salesforce.com/developer 3. Developer Toolkits Build custom integration solutions
Example: Data Loaded from External System via API Invoices Custom Object Loaded via API Salesforce Account Data
Examples: Enterprise Mash-Ups / Mash-up / Account/Open Orders Mash-up Account, Opportunity data Order Management data
Miyachi Unitek – Integrated Lead Tracking and Marketing Accountability Challenge <ul><li>Needed to consolidate seven disparate customer databases </li></ul><ul><li>Wanted to Integrate Web mail solution with CRM app </li></ul><ul><li>Sought to improve customer visibility across 18 different countries. </li></ul><ul><li>Fragmented customer data hindered collaboration across sales teams </li></ul><ul><li>Required improved lead tracking processes and marketing accountability </li></ul>Solution Results <ul><li>Deployed Salesforce.com globally across all sales teams </li></ul><ul><li>Integrated core back office processes such as customer master, quotes, orders, invoices, and RMAs, with legacy ERP application </li></ul><ul><li>Bi-directional sync of front office and back office </li></ul><ul><li>Implemented Force.com Mobile best practices </li></ul><ul><li>Integrated product configuration and quoting process across Salesforce and ERP systems </li></ul><ul><li>Extended standard data model to integrate custom objects from external systems </li></ul><ul><li>Installed six applications from AppExchange to improve efficiency of sales, marketing, and HR processes </li></ul><ul><li>Standardized employees across 18 countries on Salesforce platform </li></ul><ul><li>Reduced the number of internal calls to check order status by 70 percent by increasing visibility </li></ul><ul><li>Improved accuracy of forecast and pipeline information </li></ul><ul><li>Ability to monitor marketing ROI including lead generation spend and matching campaign revenue </li></ul><ul><li>Preintegrated applications from the AppExchange extend the value of the core Salesforce applications </li></ul>Salesforce Force.com API Legacy ERP
ADP Integrates to Over 20 Endpoints Challenge <ul><li>Needed to provide sales with a more complete view of the customer </li></ul><ul><li>Needed to Integrate sales order process </li></ul><ul><li>Needed to integrate to many disparate systems </li></ul><ul><li>Required enterprise scalability and flexibility to address complex environment. </li></ul>Internal use only Solution Results <ul><li>Integration via the Force.com API </li></ul><ul><li>Integration to over 20 different applications </li></ul><ul><li>Increased customer visibility in the field </li></ul><ul><li>Integrated lead to order process </li></ul><ul><li>Helped optimize API scalability </li></ul>Legacy Homegrown Force.com API Oracle Oracle DW
ERP Integration Best Practices <ul><li>Partner with Business – Understand the Processes </li></ul><ul><li>Do You Already Have a Standard? </li></ul><ul><li>Choose Approach Based on Cost vs. Benefits </li></ul><ul><li>Look for great partners – Buy vs Build </li></ul><ul><li>Real-time vs. Right-time </li></ul><ul><li>Plan for Growth </li></ul>
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How Do I Extend My ERP to the Rest of the Company? Sales Opportunity Pipeline Quotes Competition Sales Customer Profile PRM Partner Profiles Partner Customer Profiles Partner Opportunities Customer Service Service Requests Resolutions Service Customer Profile Customer Satisfaction Marketing Marketing Customer Profiles Leads Campaigns Marketing Schedule Supply Chain Back Office/Supply Front Office/Demand “ Applications will be delivered as services, and vendors that are not delivering applications as services that can be composed and decomposed according to your business needs will go away.” Charles Abrams, Research director, Gartner Inc. Financials Customer Financials General Ledger Accounts Receivables Invoices Order Management Products/BOM Orders Shipping
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