Week 10 <ul><li>Enabling Business (IT) Integration </li></ul>
Learning objectives <ul><li>Goals of Business (or IT) Integration (review) </li></ul><ul><li>Current  approaches to busine...
Business Integration:  Goals and Approaches <ul><li>Review: Business Integration is the exchange of business-critical info...
Workflow [Management] Systems <ul><li>System that  defines  […] and  manages  the  execution of workflows  through the use...
The WFMC reference model Source:  www.wfmc.org Designer Manager End-user
The WFMC reference model Source:  www.wfmc.org
Workflow enactment & interaction  Source:  www.wfmc.org
Process design & definition Business Process Analysis , Modeling & Definition Process Definition Build Time Run Time Workf...
WFMS build time & run time activities <ul><li>Build time activities:  </li></ul><ul><ul><li>Definition and test of busines...
<ul><li>The designer’s view:  </li></ul><ul><ul><li>Designer defines and tests the business process  </li></ul></ul><ul><u...
The designer’s view
The end-user’s view
The manager’s view
SOA &Web services’ basics <ul><li>Basics:  </li></ul><ul><ul><li>Business Integration is achieved through the re-use of ex...
Managing BP with SOA Source:  www.ibm.com
Enterprise Service Bus Source:  www.ibm.com
ERP Basics <ul><li>ERP systems:   </li></ul><ul><ul><li>Set of integrated business applications bought from software vendo...
Major characteristics of ERPs
Nonintegrated versus integrated apps
How ERPs improve business processes <ul><li>“ Separate” modules support the flow of information across multiple functions/...
ERP Illustration  (previously discussed in Lecture 9) <ul><li>Ordering:   </li></ul><ul><ul><li>Sales clerk enters order, ...
ERP: Design & implementation issues <ul><li>Design: </li></ul><ul><ul><li>C/S architecture: usually 3-tier or n-tier  </li...
Phases of Business Process Redesign Phase 3 of 5 Integration Modeling Analysis  Redesign Scoping Share Process Knowledge M...
Planning process integration <ul><li>Activities </li></ul><ul><ul><li>Examine alternative IT integration options </li></ul...
Application exercise <ul><li>Your Project (continued): </li></ul><ul><ul><li>Which apps should be integrated? </li></ul></...
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Week 10 Enabling Business (IT) Integration

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Week 10 Enabling Business (IT) Integration

  1. 1. Week 10 <ul><li>Enabling Business (IT) Integration </li></ul>
  2. 2. Learning objectives <ul><li>Goals of Business (or IT) Integration (review) </li></ul><ul><li>Current approaches to business integration: </li></ul><ul><ul><li>Workflow systems: Routing of forms and workitems </li></ul></ul><ul><ul><li>SOA and Web services: Messaging </li></ul></ul><ul><ul><li>Enterprise Resource Planning: Shared databases </li></ul></ul><ul><li>Illustrations and design issues </li></ul><ul><li>Application exercise (continued) </li></ul>
  3. 3. Business Integration: Goals and Approaches <ul><li>Review: Business Integration is the exchange of business-critical information between applications in real time (Yee & Apte, 2001) </li></ul><ul><li>Goals: </li></ul><ul><ul><li>Major improvement in business processes </li></ul></ul><ul><ul><li>Real time operations supported by dashboards displaying in real time: </li></ul></ul><ul><ul><ul><li>Key performance indicators from operational databases (aka business intelligence) </li></ul></ul></ul><ul><ul><ul><li>Status of business processes (aka Business Activity Monitoring) </li></ul></ul></ul><ul><li>Current approaches: </li></ul><ul><ul><li>Simple routing of documents, forms or workitems (aka jobs): Basic WF[M]S </li></ul></ul><ul><ul><li>Messaging between apps + Choreography ( ≠ orchestration ): EAI, SOA, Web services </li></ul></ul><ul><ul><li>Shared databases: ERP </li></ul></ul><ul><li>Scope can include internal systems (SOA or ERP) and external ones (B2B integration, web services) </li></ul>
  4. 4. Workflow [Management] Systems <ul><li>System that defines […] and manages the execution of workflows through the use of a software […workflow engine…] able to interpret the process definition, interact with participants and, where required, invoke the use of applications (WfMC). </li></ul><ul><li>Includes several software components: </li></ul><ul><ul><li>Process definition tools : Process and construct modeling software </li></ul></ul><ul><ul><li>Workflow Enactment Service : Workflow engine (routes automatically phis to next participants and notifies them) </li></ul></ul><ul><ul><li>Workflow client applications : Point of access for participants </li></ul></ul><ul><ul><li>Administration and monitoring tools : Re-routing, rule change, resource management, performance monitoring, audit and reporting </li></ul></ul><ul><ul><li>Possible applications invoked during execution of process: e.g. ordering system, inventory management system, purchasing system, payment system, billing system, etc. </li></ul></ul><ul><li>Infrastructure: Includes clients and server(s), middleware, applications, DBMS, networks, peripherals, etc. </li></ul><ul><li>Functional and non-functional requirements: Selection of products based on “validated” vendors’ specs </li></ul><ul><li>Benefits include coordinated teamwork (management of work and information flows and electronic handoffs), real-time information (BAM), process standardization , process execution synchronized with changing business needs </li></ul>
  5. 5. The WFMC reference model Source: www.wfmc.org Designer Manager End-user
  6. 6. The WFMC reference model Source: www.wfmc.org
  7. 7. Workflow enactment & interaction Source: www.wfmc.org
  8. 8. Process design & definition Business Process Analysis , Modeling & Definition Process Definition Build Time Run Time Workflow Enactment Service Process instantiation & control Applications Interaction with users & applications WFMS build time & run time phases
  9. 9. WFMS build time & run time activities <ul><li>Build time activities: </li></ul><ul><ul><li>Definition and test of business process and related constructs </li></ul></ul><ul><ul><li>Workflow-BPR specific editing mode </li></ul></ul><ul><ul><li>Model is exported of to some specific WFMS products </li></ul></ul><ul><li>Run time activities: </li></ul><ul><ul><li>Interpretation of process definition </li></ul></ul><ul><ul><li>Creation and control of process instances </li></ul></ul><ul><ul><li>Interactions with identified participants </li></ul></ul><ul><ul><li>Interactions with other identified computer-based apps </li></ul></ul>
  10. 10. <ul><li>The designer’s view: </li></ul><ul><ul><li>Designer defines and tests the business process </li></ul></ul><ul><ul><li>Designer defines related constructs (such as forms) </li></ul></ul><ul><li>The end-user’s view: </li></ul><ul><ul><li>End-user establishes session </li></ul></ul><ul><ul><li>End-user obtains workitems (or jobs): </li></ul></ul><ul><ul><ul><li>Pull mode: Users request new workitem </li></ul></ul></ul><ul><ul><ul><li>Push mode: Workitem automatically routed to user </li></ul></ul></ul><ul><ul><ul><li>Grab mode: Workitem routed to available user </li></ul></ul></ul><ul><ul><li>End-user performs required tasks </li></ul></ul><ul><ul><li> WFS are TPS: updates in operational database </li></ul></ul><ul><li>The manager’s view: </li></ul><ul><ul><li>Manager monitors execution of the business process </li></ul></ul><ul><ul><li>Managers reallocates resources /re-routes workitems </li></ul></ul>Illustration of a workflow system involving human interaction only
  11. 11. The designer’s view
  12. 12. The end-user’s view
  13. 13. The manager’s view
  14. 14. SOA &Web services’ basics <ul><li>Basics: </li></ul><ul><ul><li>Business Integration is achieved through the re-use of existing apps (should be cheaper!) </li></ul></ul><ul><ul><li>Original focus on “internal” operations/apps and now extended to business partners </li></ul></ul><ul><ul><li>New developments: </li></ul></ul><ul><ul><ul><li>SOA (architecture that allows loosely coupled apps to exchange data with one another as they participate in the execution of business processes) </li></ul></ul></ul><ul><ul><ul><li>Web services (SOA where the loosely coupled apps are accessed over the Internet) </li></ul></ul></ul><ul><li>Tools and products </li></ul><ul><ul><li>Tools that model and analyze complex BPs before their implementation </li></ul></ul><ul><ul><li>Servers that execute BPs </li></ul></ul><ul><ul><li>Servers that allow for connectivity between apps </li></ul></ul><ul><ul><li>Servers that allow for data transformation </li></ul></ul><ul><ul><li>Servers that allow for message transportation </li></ul></ul><ul><ul><li>Servers that allow connection to business partners via EDI (and conversion to XML) </li></ul></ul><ul><ul><li>Servers that monitor the execution of BP (provide real-time information and/or BAM) </li></ul></ul><ul><ul><li>Servers that allow for information integration (portlet integration) </li></ul></ul><ul><ul><li>Major vendors: IBM, Oracle, Microsoft </li></ul></ul><ul><ul><li>Functional and non-functional requirements: Selection of products based on validated vendors’ specs </li></ul></ul><ul><li>Benefits include re-use of existing apps and infrastructure + Faster integration cycle </li></ul>ESB (see slide 15)
  15. 15. Managing BP with SOA Source: www.ibm.com
  16. 16. Enterprise Service Bus Source: www.ibm.com
  17. 17. ERP Basics <ul><li>ERP systems: </li></ul><ul><ul><li>Set of integrated business applications bought from software vendors </li></ul></ul><ul><ul><li>Include modules that support a particular set of BPs </li></ul></ul><ul><ul><li>Modules integrated through common definitions (schemas) and common database </li></ul></ul><ul><ul><li> Facilitate an integrated and real-time planning of BP activities (i.e., production & sales) </li></ul></ul><ul><li>ERP modules </li></ul><ul><ul><li>Core applications (OLTP): </li></ul></ul><ul><ul><ul><li>Marketing, sales and distribution </li></ul></ul></ul><ul><ul><ul><li>Production, material management and logistics </li></ul></ul></ul><ul><ul><ul><li>Accounting and finance </li></ul></ul></ul><ul><ul><ul><li>Human resources </li></ul></ul></ul><ul><ul><ul><li>WFS and industry solutions (retail, automotive, etc.) </li></ul></ul></ul><ul><ul><li>Business tools: </li></ul></ul><ul><ul><ul><li>OLAP </li></ul></ul></ul><ul><ul><ul><li>Project management systems </li></ul></ul></ul><ul><ul><li> TPS, WFS, MIS, DSS are all included available as ERP modules </li></ul></ul><ul><li>Major vendors: SAP, PeopleSoft, Oracle, J.D. Edwards, Baan </li></ul>ERP Basics
  18. 18. Major characteristics of ERPs
  19. 19. Nonintegrated versus integrated apps
  20. 20. How ERPs improve business processes <ul><li>“ Separate” modules support the flow of information across multiple functions/partners ( see next slide ) </li></ul><ul><li>On-line and real-time information: All functions / partners can access data in real time </li></ul><ul><li>Best practices (business blueprints): </li></ul><ul><ul><li>SAP R/3 has over 1100 best practices available to choose from </li></ul></ul><ul><ul><li>Best practices in major industries (automotive, retail, etc.) </li></ul></ul>
  21. 21. ERP Illustration (previously discussed in Lecture 9) <ul><li>Ordering: </li></ul><ul><ul><li>Sales clerk enters order, checks discount and credit history and issues invoice </li></ul></ul><ul><ul><li>Can be done by customer through the Internet (ordering system is a web-based one) </li></ul></ul><ul><li>Inventory: </li></ul><ul><ul><li>ERP application checks inventory and location of items </li></ul></ul><ul><li>Distribution: </li></ul><ul><ul><li>ERP application alerts warehouse to ship portion of order in stock </li></ul></ul><ul><li>Manufacturing: </li></ul><ul><ul><li>ERP application schedules production of the remainder of the order </li></ul></ul><ul><li>Manpower: </li></ul><ul><ul><li>ERP application checks availability of workers to handle order </li></ul></ul><ul><ul><li>ERP application alerts personnel manager if temporary workers are needed </li></ul></ul><ul><li>Material planning: </li></ul><ul><ul><li>ERP application checks availability of raw material needed for the order </li></ul></ul><ul><ul><li>ERP application alerts purchasing manager if more quantities must be ordered </li></ul></ul><ul><li>Order tracking: </li></ul><ul><ul><li>Customer logs onto the ERP system through the Internet to check status of order </li></ul></ul>
  22. 22. ERP: Design & implementation issues <ul><li>Design: </li></ul><ul><ul><li>C/S architecture: usually 3-tier or n-tier </li></ul></ul><ul><ul><li>Software: </li></ul></ul><ul><ul><ul><li>ERP modules requiring minimal coding and allowing for some customization </li></ul></ul></ul><ul><ul><ul><li>Platforms (Mostly Unix or Window), DBMS (Oracle, MS SQL, Sybase, DB2), Data warehouse </li></ul></ul></ul><ul><ul><li>Other design issues: </li></ul></ul><ul><ul><ul><li>Functional and non-functional requirements: See validated vendors’ specs </li></ul></ul></ul><ul><ul><ul><li>LANs/WANs bandwidth and availability </li></ul></ul></ul><ul><ul><ul><li>Security: access, encryption, firewalls, IDS, digital certificate </li></ul></ul></ul><ul><li>Implementation: Lease (versus Buy) </li></ul><ul><ul><li>ASP ( www.mySAP.com ) delivers apps through a MAN or WAN usually the Internet </li></ul></ul><ul><ul><li>Organization pays a flat fee + for service on a monthly, yearly or on per use basis </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><ul><li>“ Lower cost” for applications: Organization does not invest in software and hardware </li></ul></ul></ul><ul><ul><ul><li>Faster development (and shorter implementation!) </li></ul></ul></ul><ul><ul><ul><li>Organizations focused on their core business </li></ul></ul></ul><ul><ul><li>Limitations: Sensitive data + WAN’s response time (Internet’s unpredictable traffic) </li></ul></ul>
  23. 23. Phases of Business Process Redesign Phase 3 of 5 Integration Modeling Analysis Redesign Scoping Share Process Knowledge Model AS-IS baseline Process Analysis Redesign “To-Be” Process Alternative Select “To-Be”Design
  24. 24. Planning process integration <ul><li>Activities </li></ul><ul><ul><li>Examine alternative IT integration options </li></ul></ul><ul><ul><li>Adjust process design </li></ul></ul><ul><ul><li>Plan process implementation </li></ul></ul><ul><li>Deliverable: Process integration plan </li></ul><ul><li>Key participants: IS design team + BPR team </li></ul><ul><li>Focus was on the design of computer-based apps that: </li></ul><ul><ul><li>Support/shape critical BPs (such as procurement, production and sales) </li></ul></ul><ul><ul><li>Allow for business integration (WFS, SOA & Web services, ERP) </li></ul></ul><ul><ul><li>Trends: SOA and Web services (re-use of existing apps) v/s ERP (new pre-packaged apps) </li></ul></ul>
  25. 25. Application exercise <ul><li>Your Project (continued): </li></ul><ul><ul><li>Which apps should be integrated? </li></ul></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><li>How? </li></ul></ul>
  26. 26. Thank you

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