Hype or Reality: Will Enterprise Systems as a Service become an Organizing …
Hype or Reality: Will EnterpriseSystems as a Service become anOrganizing Vision for EnterpriseCloud Computing in Denmark?Professor Charles MøllerCenter for Industrial ProductionAalborg University, Denmark
CERES Mission Statement• The purpose of CERES Center for Education and Research in Enterprise Systems - C E R E S Researcher and practitioners forming a joint academy to create, explore and disseminate knowledge on the analysis, design and management of integrated enterprise systems• The origin of CERES Ceres was the Roman goddess of agriculture, grain, and the love a mother bears for her child Vision: Harvesting the benefits 2
Cloud Computing has Reached the Trough of Disillusionment
Larry Ellison, the CEO of Oracle (2008)• The interesting thing about cloud computing is that we’ve redefined cloud computing to include everything that we already do.• I can’t think of anything that isn’t cloud computing with all of these announcements.• The computer industry is the only industry that is more fashion- driven than women’s fashion.• Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it? It’s complete gibberish. It’s insane.• When is this idiocy going to stop?
Cloud Computing According to NIST NIST (2011)• Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction
Enterprise Systems as a Service (ESaaS) in Denmark• Database Svejvig, Storgaard, Møller, 2012 HerbertNathan & Co. (HNCO) Top 1000 companies in DK (1150 entries)• Results Zero cloud related entries (2011 and 2012) Now entries are beginning to emerge…• Validation Vendors (Salesforce.com and Oracle CRM On Demand) 50 references• Ad Hoc Search Several ESaaS were identified Corners of the systems landscape Experiences?
Five Critical ERP Cloud Challenges Cloud Computing impact on Enterprise Architecture? Collaboration in the Cloud? Performance of Service Oriented Architecture? Maturity of On Demand Solutions? Security of Enterprise Data in the Cloud?
Cloud Computing impact on Enterprise Architecture? How will ESaaS impact Source: Ross, 2003• Enterprise Architecture Maturity?• What will Enterprise Architecture maturity Stage 4: Modular requirements for ESaaS Stage 3: Rationalized Data Business be? Stage 2: Standardized Technology Stage 1: Application• Is ESaaS a game Silo changer?
Learning Requirements for the Five Architectural Stages Source: Ross et al., 2006 Business Standardized Optimized Business Dynamic Silos Technology Core Modularity VenturingIT capability Local IT Shared technical Companywide Plug-and-play Seamless applications platforms standardized processes or business merging with databases process modules partners’ systemsBusiness ROI of local Reduced IT cost Cost and quality of Speed to market; ROI of newobjectives business initiatives business operations strategic agility business venturesKey Technology- Design and update of Core enterprise process Management of Create self-management enabled change standards; funding definition and reusable containedcapability management shared services measurement business business processes componentsWho defines Local business IT and business unit Senior management and IT, business, and IT, business, andapplications leaders leaders process leaders industry leaders industry leaders and partnersKey IT Measuring and Establishing Aligning project priorities Defining, Joint venturegovernance communicating local/regional/global with architecture sourcing, and governanceissues value responsibilities objectives funding business modulesStrategic Local/functional IT efficiency Business/operational Strategic agility Organicimplications optimization efficiency reconfiguration
Collaboration in the Cloud?• Will mobile solutions circumvent enterprise systems?• Are organizations ready for collaboration in the cloud? Death of Google Wave!• Are we able to deal with the complexity of multi- sourcing?
Performance of Service Oriented Architecture?• ESaaS require integrations and a service oriented architecture (Vouk, 2008)• Is the performance sufficient for mission critical applications?• Are we able to deal with the complexity or are we reinventing the application silos?
Security of Enterprise Data in the Cloud?• Do we have sufficient governance and security for ESaaS? The illusion of on-premise security• Are we able to deal with the complexity of decentralized data? Person Data Legislation
Maturity of On Demand Solutions?• Are the available on demand solutions on a sufficient maturity level? Major ES vendors Methodologies to reflect ESaaS?• Are we able to deal with the complexity of distributed immature technology?