E-Business & Business Systems Integration <ul><li>Define EAI, ERP, message broker, application server </li></ul><ul><li>Di...
XML and Databases <ul><li>Types of Databases </li></ul><ul><ul><li>XML-Enabled </li></ul></ul><ul><ul><li>Native XML </li>...
XML- Enabled Databases <ul><li>XML is not stored internally </li></ul><ul><li>Use relational or object-oriented models </l...
Native XML  <ul><li>XML is actually stored as XML internally </li></ul><ul><ul><li>new; questionable scalability; performa...
Business Integration  M. Lynne Markus: CAIS 4-10 <ul><li>Creation of tighter coordination among discrete business activiti...
Why Integrate Business? <ul><li>Decentralized company with different product lines </li></ul><ul><ul><li>Multidivisional p...
History of Business Integration <ul><li>Reasons </li></ul><ul><ul><li>Phenomenal growth of small companies after WWII </li...
Systems Integration <ul><li>Creation of tighter linkages between different computer-based information systems and database...
Broad Systems Integration Solutions <ul><li>Enterprise Resource Planning System (ERP) or Enterprise System </li></ul><ul><...
Definitions <ul><li>ERP - A large highly complex software program that integrates many business functions under a single a...
ERP <ul><li>70% of Fortune 1000 companies have either begun implementing ERP or plan to do so in next few years </li></ul>...
Advantages of ERP <ul><li>Consolidates business functions </li></ul><ul><li>integrate broad range of disparate technologie...
Disadvantages of ERP <ul><li>Often requires extensive organizational change - hence business involvement in justification ...
ERP Approaches <ul><li>Custom </li></ul><ul><li>Commercial off-the-shelf (COTS) </li></ul><ul><ul><li>Cheaper </li></ul></...
Future ERP Directions <ul><li>Components, not modules </li></ul><ul><li>Incremental migration, not massive reengineering <...
EAI <ul><li>‘ Re-architect’ systems so that an intermediate layer is created between applications programs and databases <...
Advantages of EAI <ul><li>Allows particular program to be replaced without changing the database </li></ul><ul><li>Reduces...
Disadvantages of EAI <ul><li>Still in ‘shakedown’ stage (less mature than ERP) </li></ul><ul><ul><li>vendor proliferation ...
Future EAI Directions <ul><li>Movement away from point-to-point solutions (message queuing or remote procedure calls) to m...
Application Servers <ul><li>Servers that provide not only for the sharing and processing of application logic, but also th...
Message Brokers <ul><li>Intelligent intermediary tat directs the flow of messages between applications </li></ul><ul><ul><...
History of Unintegrated Systems <ul><li>1982 - mirage of integrated systems </li></ul><ul><li>Business need for integratio...
Integrated Systems for E-Business <ul><li>Sell-side e-business tools </li></ul><ul><ul><li>CRM software </li></ul></ul><ul...
ERP is the backbone of E-business  (Kalakota & Robinson, pg. 166)
ERPs and E-Business <ul><li>ERPs have had internal not external focus </li></ul><ul><ul><li>slow to react to sell-side and...
SAP and E-Business <ul><li>Original SAP R/3 did not contain interfaces to interact with other systems </li></ul><ul><li>Op...
EAIs and E-Business <ul><li>Inter-Enterprise Application Integration </li></ul><ul><ul><li>EAI is good at integrating vari...
Business and System Integration <ul><li>Need to link  </li></ul><ul><li>New focus on business disintegration? </li></ul><u...
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Business and system integration

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Business and system integration

  1. 1. E-Business & Business Systems Integration <ul><li>Define EAI, ERP, message broker, application server </li></ul><ul><li>Discuss the need to link business integration with system integration </li></ul><ul><li>Discuss the history of business and system integration </li></ul><ul><li>Discuss the characteristics, advantages and disadvantages of ERP and EAI </li></ul><ul><li>Compare and contrast ERP and EAI as integration solutions </li></ul><ul><li>Discuss the application of ERP and EAI to E-Business </li></ul>
  2. 2. XML and Databases <ul><li>Types of Databases </li></ul><ul><ul><li>XML-Enabled </li></ul></ul><ul><ul><li>Native XML </li></ul></ul><ul><li>Types of XML documents </li></ul><ul><ul><li>Data-centric: use software built into database or third-party middleware to transfer data between XML documents and databases </li></ul></ul><ul><ul><li>Document-centric: use Content Management Systems; store content fragments (procedures, chapters, glossary, entries) </li></ul></ul>
  3. 3. XML- Enabled Databases <ul><li>XML is not stored internally </li></ul><ul><li>Use relational or object-oriented models </li></ul><ul><li>Use middleware </li></ul><ul><ul><li>To store: accepts XML, parses it into chunks that fit database schema </li></ul></ul><ul><ul><li>To retrieve: piece back together </li></ul></ul><ul><li>Don’t retain XML’s hierarchical structure </li></ul><ul><li>Translation needs considerable processing, especially for large or complex documents </li></ul>
  4. 4. Native XML <ul><li>XML is actually stored as XML internally </li></ul><ul><ul><li>new; questionable scalability; performance </li></ul></ul><ul><ul><li>No need to translate between XML and database </li></ul></ul><ul><li>Can either store </li></ul><ul><ul><li>entire document in text form </li></ul></ul><ul><ul><li>structure of document to database (i.e., map DOM to tables like elements, attributes, text); don’t need to know schema (DTD)* </li></ul></ul><ul><ul><li>map structure of data in the document to the database (i.e., orders, items, and parts tables in sales order) </li></ul></ul>
  5. 5. Business Integration M. Lynne Markus: CAIS 4-10 <ul><li>Creation of tighter coordination among discrete business activities conducted by different individuals, work groups or organizations so that a unified business process is formed. </li></ul><ul><li>Needs to be linked to systems integration </li></ul>
  6. 6. Why Integrate Business? <ul><li>Decentralized company with different product lines </li></ul><ul><ul><li>Multidivisional petroleum products company Elf Atochem </li></ul></ul><ul><li>Distribution company with offices in many geographic locations selling the same product at different prices </li></ul><ul><ul><li>Cardinal Health </li></ul></ul><ul><li>‘ Available to Promise’ </li></ul><ul><ul><li>Hewlett-Packard and ‘global inventory visibility’ </li></ul></ul>
  7. 7. History of Business Integration <ul><li>Reasons </li></ul><ul><ul><li>Phenomenal growth of small companies after WWII </li></ul></ul><ul><ul><li>Decentralization </li></ul></ul><ul><li>Counter forces </li></ul><ul><ul><li>Business process reengineering - BPR </li></ul></ul><ul><ul><li>Supply chain management - SCM </li></ul></ul><ul><ul><li>Customer relationship management - CRM </li></ul></ul><ul><ul><li>Y2K </li></ul></ul>
  8. 8. Systems Integration <ul><li>Creation of tighter linkages between different computer-based information systems and databases </li></ul><ul><li>Often required for business integration </li></ul><ul><li>Many e-commerce orders had separate system for tracking </li></ul><ul><li>One solution: software bridge </li></ul><ul><li>or interface </li></ul>
  9. 9. Broad Systems Integration Solutions <ul><li>Enterprise Resource Planning System (ERP) or Enterprise System </li></ul><ul><ul><li>SAP R/3, Oracle, PeopleSoft, JD Edwards, Baan </li></ul></ul><ul><li>Enterprise Application Integration (EAI) </li></ul><ul><ul><li>‘ Re-architect’ the system </li></ul></ul><ul><ul><li>Requires middleware </li></ul></ul>
  10. 10. Definitions <ul><li>ERP - A large highly complex software program that integrates many business functions under a single application; uses common database </li></ul><ul><li>EAI - A set of technologies that allow the movement and exchange of information between different applications and business processes within and between organizations; middleware focus </li></ul>
  11. 11. ERP <ul><li>70% of Fortune 1000 companies have either begun implementing ERP or plan to do so in next few years </li></ul><ul><li>Link multiple functions, i.e.,logistics, human resources, accounting and financials, sales, distribution </li></ul><ul><li>Use a common database </li></ul><ul><li>Original focus on internal integration </li></ul>
  12. 12. Advantages of ERP <ul><li>Consolidates business functions </li></ul><ul><li>integrate broad range of disparate technologies, along with the processes they support </li></ul><ul><li>Create a new foundation on which next-generation applications can be developed </li></ul><ul><li>Replace creaky legacy systems </li></ul><ul><li>Excellent internal data and process integration </li></ul><ul><li>Provide greater control </li></ul><ul><li>Improve integration of decisions throughout organization </li></ul><ul><li>Improvements through adoption of best practices </li></ul>
  13. 13. Disadvantages of ERP <ul><li>Often requires extensive organizational change - hence business involvement in justification and implementation </li></ul><ul><li>Some processes are not supported by ERP; some legacy systems are usually retained </li></ul><ul><li>Does not provide integrated reporting and analysis environment for internal and external data </li></ul><ul><li>Very expensive </li></ul><ul><li>Appropriate implementation strategy is needed </li></ul><ul><li>Business units must use common data names and business processes </li></ul>
  14. 14. ERP Approaches <ul><li>Custom </li></ul><ul><li>Commercial off-the-shelf (COTS) </li></ul><ul><ul><li>Cheaper </li></ul></ul><ul><ul><li>Faster to avoid outdated systems </li></ul></ul><ul><ul><li>Reflect best business practices </li></ul></ul><ul><ul><li>Software development is core competency of vendor </li></ul></ul><ul><ul><li>Not designed especially for organization </li></ul></ul><ul><ul><li>No competitive advantage </li></ul></ul><ul><ul><li>Example: SAP/R3 </li></ul></ul>
  15. 15. Future ERP Directions <ul><li>Components, not modules </li></ul><ul><li>Incremental migration, not massive reengineering </li></ul><ul><li>Dynamic configurations of ERP, not static configurations </li></ul><ul><li>Management of multiple strategic sourcing and partnership relationships </li></ul><ul><ul><li>more supply chain planning </li></ul></ul><ul><ul><li>more e-business interfaces </li></ul></ul>
  16. 16. EAI <ul><li>‘ Re-architect’ systems so that an intermediate layer is created between applications programs and databases </li></ul><ul><li>Application programs are modified to ‘call’ the middleware, which then ‘calls’ the databases </li></ul><ul><li>Middleware focus </li></ul><ul><li>Limited business process change required </li></ul><ul><li>35% development time is devoted to interfaces; EAI focuses on interfaces </li></ul>
  17. 17. Advantages of EAI <ul><li>Allows particular program to be replaced without changing the database </li></ul><ul><li>Reduces maintenance; only interface between each program or database and middleware needs to be maintained </li></ul><ul><li>Achieves internal data integration and supports process integration without replacement of legacy systems </li></ul><ul><li>Supports ‘best-of-breed’ </li></ul>
  18. 18. Disadvantages of EAI <ul><li>Still in ‘shakedown’ stage (less mature than ERP) </li></ul><ul><ul><li>vendor proliferation </li></ul></ul><ul><ul><li>‘ experimental’ support for n-way integration </li></ul></ul><ul><li>Requires vas amount of technical expertise </li></ul><ul><li>More difficult for multiple applications (though works well with pairs of systems) </li></ul><ul><li>Requires some modification of source systems </li></ul><ul><li>Process integration requires organizational change and business involvement </li></ul><ul><li>Proprietary technology (not open) </li></ul>
  19. 19. Future EAI Directions <ul><li>Movement away from point-to-point solutions (message queuing or remote procedure calls) to multipoint solutions (message brokers, application servers) </li></ul><ul><ul><li>Application servers + message brokers </li></ul></ul><ul><li>Missing link in supply chain integration and interorganizational ERPs </li></ul><ul><li>Zero Latency enterprise: any application (or transaction) has access to any other application or data store instantaneously </li></ul>
  20. 20. Application Servers <ul><li>Servers that provide not only for the sharing and processing of application logic, but also the connect to back-end resources </li></ul><ul><ul><li>usually provide mechanisms to deploy application to Web platforms </li></ul></ul><ul><ul><li>Nothing new </li></ul></ul>
  21. 21. Message Brokers <ul><li>Intelligent intermediary tat directs the flow of messages between applications </li></ul><ul><ul><li>provides rules processing, intelligent routing, message routing, message warehousing, and message transformation services </li></ul></ul><ul><ul><li>middleware of middleware </li></ul></ul><ul><ul><li>asynchronous store and forward (application need not be session connected) </li></ul></ul>
  22. 22. History of Unintegrated Systems <ul><li>1982 - mirage of integrated systems </li></ul><ul><li>Business need for integration not perceived </li></ul><ul><li>‘ Management by magazine’ </li></ul><ul><li>Capacity constraints of early systems </li></ul><ul><ul><li>systems built to serve small parts of business </li></ul></ul><ul><ul><li>computers were extremely expensive </li></ul></ul><ul><li>Integrated enterprise systems only address 70% needs of average organization </li></ul><ul><li>Internal data can’t satisfy all needs; External data is often purchased </li></ul>
  23. 23. Integrated Systems for E-Business <ul><li>Sell-side e-business tools </li></ul><ul><ul><li>CRM software </li></ul></ul><ul><ul><li>data mining </li></ul></ul><ul><ul><li>electronic ‘storefronts’ </li></ul></ul><ul><ul><li>Call-center management software </li></ul></ul><ul><li>Buy-side E-business tools </li></ul><ul><ul><li>SCM software </li></ul></ul><ul><ul><li>Procurement software </li></ul></ul><ul><ul><li>Exchanges </li></ul></ul><ul><ul><ul><li>Interorganizational purchasing exchanges for commodity products </li></ul></ul></ul><ul><ul><ul><li>Exchanges for trading partnerships </li></ul></ul></ul>
  24. 24. ERP is the backbone of E-business (Kalakota & Robinson, pg. 166)
  25. 25. ERPs and E-Business <ul><li>ERPs have had internal not external focus </li></ul><ul><ul><li>slow to react to sell-side and buy-side ecommerce </li></ul></ul><ul><li>Need for ERPs to interact with other ERPs </li></ul><ul><li>How to link? (in-house, ERP vendors, single source) </li></ul><ul><li>PeopleSoft </li></ul><ul><ul><li>Significantly less proprietary than SAP </li></ul></ul><ul><ul><li>Like SAP uses standard relational databases </li></ul></ul><ul><ul><li>PeopleSoftEDI interface helpful for business data exchange </li></ul></ul><ul><li>SAP </li></ul>
  26. 26. SAP and E-Business <ul><li>Original SAP R/3 did not contain interfaces to interact with other systems </li></ul><ul><li>Opportunities for B2B integration through Business Application Programming Interface (BAPI) standard </li></ul><ul><li>Niche systems </li></ul><ul><ul><li>Supply Chain Cockpit - SCM </li></ul></ul><ul><ul><li>Enterprise information portal - mySap.com </li></ul></ul><ul><ul><li>Setting up exchanges for vertical industry groups - mySap.com </li></ul></ul><ul><li>May not be wise to install SAP in companies with acquisition strategy </li></ul>
  27. 27. EAIs and E-Business <ul><li>Inter-Enterprise Application Integration </li></ul><ul><ul><li>EAI is good at integrating various applications and data stores </li></ul></ul><ul><ul><li>can extend its reach outside the enterprise to include both trading partners </li></ul></ul><ul><ul><li>link ERP systems (i.e., SAP and Baan) </li></ul></ul><ul><ul><li>Saturn: suppliers must tie into their systems </li></ul></ul><ul><li>Focus on major business processes </li></ul><ul><li>Extend systems to suppliers and customers </li></ul><ul><ul><li>must agree on communication standards and middleware </li></ul></ul>
  28. 28. Business and System Integration <ul><li>Need to link </li></ul><ul><li>New focus on business disintegration? </li></ul><ul><ul><li>Virtual Organizations </li></ul></ul><ul><ul><li>Oursourcing </li></ul></ul><ul><ul><li>“ quick connect, quick disconnect” </li></ul></ul>

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