An a ly z ing the n e eds of c rea ting a SAP PI p la tf o rm in Sweden Department of Computer and Systems Sciences ,  Sto...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Thesis  d e scription <ul><li>1- C r ea te a list of stakeholders </li></ul><ul><li>2- De fine their business and technolo...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background   </li></ul><ul><li>Method </li></ul><ul><li>Why an integra...
Unbundling and Future Nordic Energy Market ” Unbundling” : Seperation of sales and distribution data ” Nordic Energy Marke...
Pro blem Background MS BizTalk  Vs   SAP PI
Vattenfall AB Background  <ul><li>Europe’s fifth largest generator of electricity </li></ul><ul><li>Europe’s  largest prod...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Method
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Why an integration platform? (1) <ul><li>Information sharing </li></ul><ul><li>Supporting  the systems that were not desig...
Why an integration platform? ( 2 ) <ul><li>N*(N-1)/2 physical connection </li></ul><ul><li>N*(N-1) new interfaces  </li></ul>
Why an integration platform? ( 3 )
Why an integration platform? (3)
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Tools and Frameworks:  Technology Adoption Life C ycle
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Intr o d uc tion to SAP PI Marktplace (Internet) Business Partner SAP SAP SAP SAP Third- party Business Partner <ul><li>PI...
Functi o nal Covarage  Comparison SAP Microsoft MS Sharepoint NetWeaver Portal Portal Solution SOA on Basis of .NET and  B...
Introduction to SAP PI (XI)
Introduction to BizTalk
Market Share Comparison SAP PI MS BizTalk SAP, Oracle, Microsoft Dynamics, SSA Global Technologies  and so on 9 9 % SAP cu...
L icenses  F e es <ul><li>SAP PI Base Engine is priced based on the overall processed  message volume expressed in Gigabyt...
Pop-Up Q u iz What is the percentage of average ERP project b u d get   spent on integration?
Pop-Up Q u iz 35-40 % of average ERP project budget is spent on integration   (Gartner, AMR) Source: 'Cutting Implementati...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Analysis and Results
Analysis and Results
SWOT An a lysis for SAP PI Internal External Helpful Harmful <ul><li>Threats </li></ul><ul><li>Expensive Consultants </li>...
SWOT An a lysis for BizTalk Internal External Helpful Harmful <ul><li>Threats </li></ul><ul><li>Expensive Consultants </li...
Analysis and Results A potential vendor lock-in situation with SAP  The maturity of MS BizTalk  An unclear roadmap of the ...
1- Human Competence <ul><li>Enough competence in MS BizTalk </li></ul><ul><li>No competence in SAP PI </li></ul>1 0 MS Biz...
2- Product Roadmap (1) <ul><li>Clear MS BizTalk Product road map </li></ul><ul><li>Unclear SAP PI product roadmap </li></u...
2- Product Roadmap (2) 1999 1992 1972 Year Heterogeneous business processes, lower TCO Scalable integrated business proces...
2- Product Roadmap (3) <ul><ul><li>1-  PI will be 100% Java based product   </li></ul></ul><ul><ul><li>2- SAP PI will be d...
3- Maturity of BizTalk and SAP PI (1) Operational Excellence Product Leadership Customer Intimacy
3- Maturity of BizTalk and SAP PI (2)
3- Maturity of BizTalk and SAP PI (3)
3- Maturity of BizTalk and SAP PI (4) SAP PI MS BizTalk SAP, Oracle, Microsoft Dynamics, SSA Global Technologies  and so o...
3- Maturity of BizTalk and SAP PI (5) 3 0 MS BizTalk SAP PI
4- V endor lock-in situation with SAP <ul><li>Vattenfall is already an SAP depended company </li></ul><ul><li>H igher swit...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
SAP PI Best-Practices 1-  midsize SAP clients : mySAP-centric organizations that hadn't selected a strategic integration p...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Final Decision Proposal (1) <ul><li>Use BizTalk for B2B and SAP-to-nonSAP </li></ul><ul><li>Use SAP PI for SAP-to-SAP </li...
Marktplace (Internet) Business Partner SAP SAP SAP SAP Third- party Business Partner Final Decision Proposal (2) SAP PI Bi...
Final Decision Proposal (3) SAP SAP PI SAP PI Adoption Road Map  for Vattenfall Sweden 2009- 2010 2010 201 1 <ul><li>Scena...
Final Decision Proposal (4) SAP SAP PI SAP PI Adoption Road Map  for Vattenfall Sweden 2009- 2010 <ul><li>Scenario 2 </li>...
Agenda <ul><li>Thesis description </li></ul><ul><li>Background  </li></ul><ul><li>Method </li></ul><ul><li>Why an integrat...
Summary <ul><li>The European energy market is currently subject to the political regulations of ”Unbundling” and ”Nordic E...
With that... Thank you very much for your attention Alper Celik Alperc @kth.se
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Sap pi overview

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Sap pi overview

  1. 1. An a ly z ing the n e eds of c rea ting a SAP PI p la tf o rm in Sweden Department of Computer and Systems Sciences , Stockholm University & Royal Institute of Technology Alper Celik
  2. 2. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  3. 3. Thesis d e scription <ul><li>1- C r ea te a list of stakeholders </li></ul><ul><li>2- De fine their business and technology requirements </li></ul><ul><li>3-Prepare a final decision proposal based on this research work if Vattenfall Sweden should use SAP PI as their main integration platform or not. </li></ul>
  4. 4. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  5. 5. Unbundling and Future Nordic Energy Market ” Unbundling” : Seperation of sales and distribution data ” Nordic Energy Market Consolidation” : They will need more integration
  6. 6. Pro blem Background MS BizTalk Vs SAP PI
  7. 7. Vattenfall AB Background <ul><li>Europe’s fifth largest generator of electricity </li></ul><ul><li>Europe’s largest producer of heat </li></ul><ul><li>Operates in Sweden, Denmark, Finland, Germany and Poland </li></ul>
  8. 8. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  9. 9. Method
  10. 10. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  11. 11. Why an integration platform? (1) <ul><li>Information sharing </li></ul><ul><li>Supporting the systems that were not designed to work together </li></ul><ul><li>Accomodate various data types that may be dissimilar or incompatible </li></ul>
  12. 12. Why an integration platform? ( 2 ) <ul><li>N*(N-1)/2 physical connection </li></ul><ul><li>N*(N-1) new interfaces </li></ul>
  13. 13. Why an integration platform? ( 3 )
  14. 14. Why an integration platform? (3)
  15. 15. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  16. 16. Tools and Frameworks: Technology Adoption Life C ycle
  17. 17. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  18. 18. Intr o d uc tion to SAP PI Marktplace (Internet) Business Partner SAP SAP SAP SAP Third- party Business Partner <ul><li>PI is the central communication point for all NetWeaver components </li></ul><ul><li>Open XML based standards are used for integration </li></ul><ul><li>PI is part of the SAP Services Oriented Architecture (SOA) </li></ul><ul><li>SAP delivers pre-configured content </li></ul>ERP- S ystem
  19. 19. Functi o nal Covarage Comparison SAP Microsoft MS Sharepoint NetWeaver Portal Portal Solution SOA on Basis of .NET and BizTalk Enterprise Service Oriented Architecture (eSOA) SOA Architecture paradigm MS .Net, Indigo Web Application Server Application Server MS BizTalk SAP PI Process Integration .Net and Microsoft Server Products NetWeaver Integration Platform
  20. 20. Introduction to SAP PI (XI)
  21. 21. Introduction to BizTalk
  22. 22. Market Share Comparison SAP PI MS BizTalk SAP, Oracle, Microsoft Dynamics, SSA Global Technologies and so on 9 9 % SAP customers Biggest customer segment: 8500 2000 Total number of active users: 10 years 7 years Available in market for:
  23. 23. L icenses F e es <ul><li>SAP PI Base Engine is priced based on the overall processed message volume expressed in Gigabytes (GB) per month. </li></ul><ul><li>SAP PI is free to use between SAP-to-SAP. </li></ul><ul><li>MS BizTalk Server is priced based on the server </li></ul><ul><li>capacity . It has four different version; </li></ul><ul><li>Enterprise, Standard, Branch, and Developer </li></ul>
  24. 24. Pop-Up Q u iz What is the percentage of average ERP project b u d get spent on integration?
  25. 25. Pop-Up Q u iz 35-40 % of average ERP project budget is spent on integration (Gartner, AMR) Source: 'Cutting Implementation Costs by Application Integration', Gartner, February 2002
  26. 26. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  27. 27. Analysis and Results
  28. 28. Analysis and Results
  29. 29. SWOT An a lysis for SAP PI Internal External Helpful Harmful <ul><li>Threats </li></ul><ul><li>Expensive Consultants </li></ul><ul><li>Unclear roadmap </li></ul><ul><li>Opportunities </li></ul><ul><li>SAP’s eSOA strategy and PI </li></ul><ul><li>Large and growing customer base </li></ul><ul><li>Highly optimized for SAP environment </li></ul><ul><li>Weaknesses </li></ul><ul><li>Human Competence </li></ul><ul><li>Strengths </li></ul><ul><li>Management Support </li></ul><ul><li>Large SAP Installations at Vattenfall </li></ul>
  30. 30. SWOT An a lysis for BizTalk Internal External Helpful Harmful <ul><li>Threats </li></ul><ul><li>Expensive Consultants </li></ul><ul><li>High License Fees </li></ul><ul><li>In the future Vattenfall might be even more interested in SAP </li></ul><ul><li>Opportunities </li></ul><ul><li>Growing Customer Base </li></ul><ul><li>Availability of Knowledge and Experience </li></ul><ul><li>Weaknesses </li></ul><ul><li>Not optimized for SAP </li></ul><ul><li>Strengths </li></ul><ul><li>Human Competence </li></ul><ul><li>Internal Experience </li></ul>
  31. 31. Analysis and Results A potential vendor lock-in situation with SAP The maturity of MS BizTalk An unclear roadmap of the development of SAP PI Insufficient human competence in SAP PI within and outside Vattenfall Results of Stakeholders Meetings and Analysis
  32. 32. 1- Human Competence <ul><li>Enough competence in MS BizTalk </li></ul><ul><li>No competence in SAP PI </li></ul>1 0 MS BizTalk SAP PI
  33. 33. 2- Product Roadmap (1) <ul><li>Clear MS BizTalk Product road map </li></ul><ul><li>Unclear SAP PI product roadmap </li></ul>2 0 MS BizTalk SAP PI
  34. 34. 2- Product Roadmap (2) 1999 1992 1972 Year Heterogeneous business processes, lower TCO Scalable integrated business processes, lower TCO Real-time integrated business processes, lower TCO Customer Need mySAP.com, mySAP EP, SAP XI mySAP Technology (Internet architecture) SAP R/3, SAP APO, SAP BW R/3 Basis ( 3-tier Client/Server architecture ) R/1, R/2 ABAP (Mainframe architecture ) New Business Solution Enabling Technology 2003 Packaged composite business processes, lower TCO SAP xApps SAP NetWeaver (Enterprise Services Architecture)
  35. 35. 2- Product Roadmap (3) <ul><ul><li>1- PI will be 100% Java based product </li></ul></ul><ul><ul><li>2- SAP PI will be distributed architecture based product instead of hub and spoke architecture </li></ul></ul>
  36. 36. 3- Maturity of BizTalk and SAP PI (1) Operational Excellence Product Leadership Customer Intimacy
  37. 37. 3- Maturity of BizTalk and SAP PI (2)
  38. 38. 3- Maturity of BizTalk and SAP PI (3)
  39. 39. 3- Maturity of BizTalk and SAP PI (4) SAP PI MS BizTalk SAP, Oracle, Microsoft Dynamics, SSA Global Technologies and so on 9 9 % SAP customers Biggest customer segment: 8500 2000 Total number of active users: 10 years 7 years Available in market for:
  40. 40. 3- Maturity of BizTalk and SAP PI (5) 3 0 MS BizTalk SAP PI
  41. 41. 4- V endor lock-in situation with SAP <ul><li>Vattenfall is already an SAP depended company </li></ul><ul><li>H igher switching costs in the future (Higher TCO) </li></ul>4 0 MS BizTalk SAP PI
  42. 42. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  43. 43. SAP PI Best-Practices 1- midsize SAP clients : mySAP-centric organizations that hadn't selected a strategic integration platform tend to adopt XI as their primary integration platform. 2- large SAP clients : In the past, many of them selected an integration platform, but they're also aware that PI (XI) will be a necessary component of the SAP infrastructure for ESA. Therefore, they recognize that it's important to &quot;understand&quot; the product, so now they're introducing XI alongside their established integration platforms.
  44. 44. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  45. 45. Final Decision Proposal (1) <ul><li>Use BizTalk for B2B and SAP-to-nonSAP </li></ul><ul><li>Use SAP PI for SAP-to-SAP </li></ul><ul><ul><li>Build Competence </li></ul></ul><ul><ul><li>Have Experience </li></ul></ul><ul><li>Make benchmarking within 1 - 2 years for one common </li></ul><ul><li>integration platform </li></ul>
  46. 46. Marktplace (Internet) Business Partner SAP SAP SAP SAP Third- party Business Partner Final Decision Proposal (2) SAP PI BizTalk Other Systems Other Systems Firewall
  47. 47. Final Decision Proposal (3) SAP SAP PI SAP PI Adoption Road Map for Vattenfall Sweden 2009- 2010 2010 201 1 <ul><li>Scenario 1 </li></ul><ul><li>PI crosses the chasm </li></ul><ul><li>SAP improves the product quality and not just focusus on SAP integration. </li></ul>SAP PI Non SAP Non SAP Non SAP PI
  48. 48. Final Decision Proposal (4) SAP SAP PI SAP PI Adoption Road Map for Vattenfall Sweden 2009- 2010 <ul><li>Scenario 2 </li></ul><ul><li>PI can not cross the chasm </li></ul><ul><li>SAP PI primarily directed </li></ul><ul><li>towards SAP integration </li></ul>SAP Non SAP Non SAP Non SAP BizTalk BizTalk
  49. 49. Agenda <ul><li>Thesis description </li></ul><ul><li>Background </li></ul><ul><li>Method </li></ul><ul><li>Why an integration platform? </li></ul><ul><li>Tools and Frameworks </li></ul><ul><li>Introduction to SAP PI (XI) and BizTalk </li></ul><ul><li>Analysis and Results </li></ul><ul><li>SAP PI Best-Practices </li></ul><ul><li>Final Decision Proposal </li></ul><ul><li>Summary </li></ul>
  50. 50. Summary <ul><li>The European energy market is currently subject to the political regulations of ”Unbundling” and ”Nordic Energy Market Consolidation” which require the physical division of sales and distribution systems while on the same time increase the need for systems integration. </li></ul><ul><li>Vattenfall is an agile company with a heterogenous systems environment where systems integration is a vital competence. </li></ul><ul><li>Choice of integration platform is a strategic decision and two options are currently viable: MS BizTalk and SAP PI. </li></ul><ul><li>A qualitative study has been conducted to aid Vattenfall in taking this decision. </li></ul><ul><li>Vattenfall has to use SAP PI for integration between SAP instances. However, it is suggested that Vattenfall continues to use MS BizTalk as the primary integration engine during the next 1-2 years due to: </li></ul><ul><ul><li>unsufficient human competence in SAP PI within and outside Vattenfall </li></ul></ul><ul><ul><li>an unclear roadmap of the development of SAP PI </li></ul></ul><ul><ul><li>the maturity of MS BizTalk </li></ul></ul><ul><ul><li>a potential vendor lock-in situation with SAP </li></ul></ul><ul><li>During the next 1-2 years Vattenfall should carefully monitor the development of SAP PI and the competence building around this product. If SAP PI becomes more mature, more widely used in the market and has a more clear vendor product strategy Vattenfall might use PI even for NonSAP-to-NonSAP scenarios. </li></ul>
  51. 51. With that... Thank you very much for your attention Alper Celik Alperc @kth.se
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