Business requirements for 2010 This time it‘s about business – and here is what over 1.500 business executives across all industries and geographies told us: This is their agenda 2010, their action list to become the most competitive member in their peer group. The key competitive threat will come from consolidation of existing players rather than from new entrants, and to compete most companies will be focusing on specialization. Achieving a better understanding of customer needs and reducing time to market of innovations will be a major challenge for growth product innovation will not suffice to drive growth - but will remain a key driver business model innovation will become a major strategic lever Digitization and embedded software: is already an important source of competitive advantage (key product attributes like reliability, ease of integration, flexibility, usability and even functionality are software-driven) will create new opportunities for innovative processes or even business models (quality, preventative maintenance, …) You see, business people confirm the hypothesis upon which we‘ve built the roadmap: flexibility and speed become „design imperatives“ for IT powered business innoviation
Typically, lines of business (LOBs) and IT groups communicate and collaborate through rather narrow channels and in very different styles. This often results in delays and miscommunication while getting new or updated products and services rolled out to customers. To increase business agility and achieve competitive advantage, enterprises need to widen and clarify the channel of communication between business and technical groups to accelerate the speed of change. Businesses need experts who are both business- and IT-savvy – people who understand the business processes and the best technology practices to get those processes changed, deployed, and executed in real-time. This is the domain of the business process expert – someone who might be called a business analyst, application consultant, process developer, solution consultant, or something similar. The business process expert, who encompasses these functions, is growing in strategic importance to the business.
Service Oriented Architecture
Service Oriented Architectures
Business Requirements for 2010 <ul><li>Consolidation will impact most industries… </li></ul><ul><li>and accelerate specialization </li></ul><ul><li>Changing customer needs continue to be the key growth opportunity… </li></ul><ul><li>but will require business model innovation </li></ul><ul><li>Embedded software and digitization create new opportunities … </li></ul><ul><li>both in processes and business models . </li></ul><ul><li>Flexibility and speed become “design imperatives”… … promoting IT to strategic “weapon” </li></ul>Source: Economist Intelligence Unit Survey
Technology Is Not Seen as Strategic Growing Disconnect Between Business and IT Business expectations Process change should take weeks or days Business users demand a competitive edge Focus investment on strategic innovation IT reality Hard-wired systems mean process change takes years Disparate IT systems result in siloed user views Best-of-breed silos eat up 70% of budget
So This is How it Feels Sometimes… <ul><li>Technology should be an enabler of IT, not an barrier.. </li></ul>Increasing Business requirements Rapid Change/rollouts Budget constraints New Technology and legacy support New ‘customers’
The New Integration Challenge Disparate Technologies Do Not Support Process Innovation <ul><li>Inflexible: slows process change </li></ul><ul><ul><li>Hardwired process </li></ul></ul><ul><ul><li>Purpose-built integrations </li></ul></ul><ul><ul><li>Reuse is difficult </li></ul></ul><ul><li>IT silos can’t meet LOB needs </li></ul><ul><ul><li>IT upkeep fights with LOB demands </li></ul></ul><ul><ul><li>LOB unable to leverage information </li></ul></ul><ul><ul><li>IT silos prevent delivering composites </li></ul></ul><ul><li>Costly to maintain; ties up budget </li></ul><ul><ul><li>Exponential number of integrations </li></ul></ul><ul><ul><li>No cohesive master data </li></ul></ul><ul><ul><li>Redundant processes </li></ul></ul>Application Server Portal Business Intelligence Messaging Security Master Data Mgmt Enterprise Integration CRM SRM ERP
The Emergence of a Services Oriented Approach <ul><li>Platform Requirements </li></ul><ul><ul><li>Preintegrated </li></ul></ul><ul><ul><li>Process-centric </li></ul></ul><ul><ul><li>Leverages existing assets </li></ul></ul><ul><ul><li>Service-enabled </li></ul></ul><ul><ul><li>Supports rapid process recomposition </li></ul></ul><ul><ul><li>Rich ecosystem for co-innovation </li></ul></ul>Application Server Portal Business Intelligence Messaging Security Master Data Mgmt Enterprise Integration
Web Services: Definition <ul><li>WEB SERVICES are </li></ul><ul><li>SELF-CONTAINED </li></ul><ul><li>and SELF-DESCRIBING </li></ul><ul><li>APPLICATION FUNCTIONS </li></ul><ul><li>that can be </li></ul><ul><li>PROCESSED </li></ul><ul><li>through </li></ul><ul><li>OPEN INTERNET STANDARDS </li></ul>
The Approach: Service Oriented Architecture SOA is essential but missing business semantics ENTERPRISE SERVICES “PRODUCTIZED” Business Integrity! SOA - WEB SERVICES “BUILT” Chaos? Delete from database Rollback inventory Cancel Shipment Cancel Invoicing Send Notification Adjust Planning Notify Suppliers Cancel Order Cancel Shipment Send Notification Adjust Planning Notify Suppliers Cancel Invoicing Rollback inventory Cancel Invoicing
Services Oriented Architecture Business Processes and User Interaction Abstraction and Integration Enterprise Services Enterprise Applications
Enterprise Services Oriented Architectures Bus. Partner Legacy SAP NetWeaver Business Objects, Components, and Engines Partner Services SAP’s Enterprise Services 5 KEY ELEMENTS PEOPLE PRODUCTIVITY ANALYTICS/REPORTING SERVICE COMPOSITION Enterprise Services Repository SERVICE ENABLEMENT LIFE-CYCLE MANAGEMENT
Process Innovation – Enabling Differentiation Leverage and Reuse SOA Platform ERP CRM Enterprise Services Repository ENTERPRISE SERVICES PLM SRM SCM Custom Manufacture-to-Inventory Order-to-Cash Procure-to-Pay Any Existing System DIFFERENTIATION PRODUCTIVITY
Process Innovation – Enabling Differentiation DIFFERENTIATION PRODUCTIVITY REUSE PROCESS STEPS AND ENTERPRISE SERVICES IN CUSTOM PROCESSES ERP CRM PLM SRM SCM Custom SAP NetWeaver ENTERPRISE SERVICES SOA Platform Enterprise Services Repository Plan Manuf. Auction Source Procure P2P O2C M2i Any Existing System Leverage and Reuse Availability-to-Sale
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