Guest lecture impact business question on application landscape

Impact of a Business Question
on
Application Landscape
7 April 2015
Léon Smiers

2Copyright © Capgemini 2012. All Rights Reserved
Impact business question on application landscape
Agenda
Introduction
Impact areas for a business question
Examples & questions
Resume

Léon Smiers
Solution Architect for Capgemini
Over 25 years experience in Oracle Technology
Oracle BPM Thought leader for Capgemini
Co-inventor of CORA model
Author of “Oracle Case Management Solutions”

Impact areas for a
business question

Business question impact areas
Change required
by the Business
• Customer focused
• Compliance with
regulations
• Cost reduction
• Higher success rate of
investigations
• …
Impact areas
• People
• Process
• Technology

The business question,
Why-What-How-With What
Contextual
Why?
• Why this business change needed?
• Which objectives, what scope and which constraints?
Conceptual
What?
• What is the specific question we’re looking at now?
Logical
How?
• How Can we make logial groupings of the required functionality
Physical
With What?
• What is the technology required to make this change
• What organizational changes are required
• What process changes are needed
Area of
investigation for
Solution
Architecture

The “How & With what” question - What is needed
Control over the IT landscape in a Hybrid environment
Risk assessment
Predictable, Repeatable and Risk-aware Solution Design
Vendor agnostic
7

Presentation
Composition
Integration
Application
Data
Channel
GovernanceSecurity
The CORA model
Map required functionality onto
Application layers:
Where are the dependencies?
Where is the bulk of the work?
Where are the risk areas?

More information http://www.coramodel.com

Examples
Container Centralen
Stedin

Container Centralen
Get insight in crate movement
in the logistic chain

Container Centralen ( CC )
Pilot 2008
Largest pool manager of the Returnable Transport Items (RTI; e.g.
trolleys, trays) in the Netherlands
RTIs travel between whole store’s, distribution centers (DC’s) and the
stores
CC delivers RTI’s to all mayor supermarkets (C1000, Albert Heijn)
 CC’s business drivers,
 We want to improve our profitability by lowering
• Theft
• Counterfeiting
 Payment based on usage based model
Question at hand:
 Give us insight in the movement of crates in the logistic chain
In collaboration with

Proof of Concept
Movement of crates between three locations

Technology
RFID tags connected to the vegetable crates
Measure with RFID portals
at every location
RFID portal connected to
back-end systems

Get insight in crate movement
in the logistic chain
Heemskerk
DC
Schuitema
C1000
measurement-
point
measurement-
point
measurement-
point
measurement-
point
measurement-
point
measurement-
point
Heemskerk Schuitema C1000
In house In transit In house In transit In house In transit

Main functionalities and parties involved
Simplified functionality
 Storage of RFID data (EPCIS data) at every location
 Aggregation of movement data (Discovery Service)
 Provisioning of movement data into portals (Track & Trace application)
Parties involved
 Container Centralen
 Factory Heemskerk
 Distribution center
 C1000 Bergen op Zoom
 KPN
 Truck drivers

Presentation
Composition
Integration
Application
Data
Channel
GovernanceSecurity
Container Centralen – Impact
Storage of RFID data (EPCIS data)
HeemskerkDC Schuitema C1000
Receive message from
RFID Readers (TCP/IP)
(RFID Middleware)
Detailed RFID
transaction data
RFID
reader
RFID
reader
RFID
reader
RFID
reader
RFID
reader
RFID
reader
RFID
reader
RFID
reader
RFID
reader
Receive message from
RFID Readers (TCP/IP)
(RFID Middleware)
Detailed RFID
transaction data
EPCIS-1 EPCIS-2
Data
Prote
ction
Local
DCS
Hosted
KPN

Presentation
Composition
Integration
Application
Data
Channel
GovernanceSecurity
Aggregation of movement data (Discovery Service)
Receive movement
message (REST)
Crate movement
aggregation
EPCIS-1 EPCIS-2
Data
Prote
ction
Secured
mes
saging
Hosted
KPN
Discovery service
Hosted
KPN
Local
DCS

Presentation
Composition
Integration
Application
Data
Channel
GovernanceSecurity
Provisioning of movement data into portals
Combine movement /
detail data of crates
Overview pages of
crate movement Authen
tication
Autho
rization
Discovery Service
Track & Trace application
Secured
messagi
ng
Local
CC
Provide movement
data (Web Service)
EPCIS-1 EPCIS-2
Hosted
KPN
Local
DCS
Hosted
KPN
Provide detail RFID
data (Web Service)

Resume impact of CC business question
• Training required for all logistics personell how to work with RFID readers
• Contracts with crate providers, adding RFID tags to crates
• All organizations in the logistics are required to place RFID readers and RFID middleware
• Container Centralen personell trained in making information from the Track&Trce data
• Hosting of software to external organizations
People
• Insight in the end-to-end movement of crates in the chain
• Track & Trace enables insight in theft, usage, cunterfeiting
Process
• Hardware : RFID Readers, RFID tags on crates
• RFID Middleware (EPCIS)
• RFID Discovery Service
• Track & Trace application
Technology

End result pilot (2008)
No follow-up after pilot
Shortly after end of pilot we entered the Financial crisis
Costs involved too high
 Every RFID tag 1US$ (2008)
 Every location placement of RFID readers
 Training of all personel involved in logistics chain

Questions for students
CC delivers crates to both C1000 and Albert Heijn, which are competing
companies. How to ensure those companies that data is safe and cannot
be seen by the competing companies?
What is the impact of a crate movement not registered?
What are the cost drivers of this solution
How does this solution impact the ‘people’ part of the solution
How do we recognize theft from the Track & Trace data?

Stedin
Work Order management for
placement of Smart Meters

Stedin Meetbedrijf
Stedin Meetbedrijf is responsible for servicing gas and
electricity meters for 2 million customers in the Netherlands.
(250 employees)
Main tasks are exchanging & installing meters &
collection of meter readings
Part of Stedin Netbeheer – Grid operator with 3 of the 4
largest dutch cities, highly urbanized area, including the port
of Rotterdam (1500 employees)
Part of Eneco Holding (5500 employees)
turnover: $ 7 billion

Rollout of smart meters
2007: Dutch government decided on obligatory rollout of smart meters
for every household by 2013, starting in 2009
Accurate billing
Meter reading (site visit or by customer) no longer needed
Insight in energy consumption
Saving of energy
More reliable electricity grids
2010: Bill passed to start with rollout on customer demand.
2012: Start of rollout on customer demand
2013: Evaluation of goals
2014: Possible start of complete rollout of smart meters
2020: EU goal: 80% of households smart meter installed

Business transformation 2006-2015
2006
100.000 site visits per year
involving meter exchange
Majority of the work:
•Maintenance
•Newly built housing
•50% done by internal
installation department
2015+
600.000+ site visits per year
involving meter exchange
Majority of the work:
•Smart meter installation
•10% done by in-house
installation department

Original timeline (2006-2010)

Project Grand Rollout Improvement Program- Demonstration

Work Order Management placement of smart meters
Functionality
Finish
Execute
Prepare
Insight
CRM
Planning
Financial
Product
catalogue
CRM
Work
Order
Process
Call Center
Interface
Functional
exception
handling
Tasks Portal
Completion
Process quality
Process control
Chain
optimization
Improved client
satisfaction

Involved parties
Finish
Execute
Prepare
Insight
CRM
Planning
Financial
Product
catalogue
CRM
Work
Order
Process
Call Center
Interface
Functional
exception
handling
Tasks Portal
Completion
Process quality
Process control
Chain
optimization
Improved client
satisfaction
Stedin
Departments
• Preparation
• Data Collection
• Call Center
• Warehousing
Stedin
Department
• Internal Service
provider
• Joulz
External Service Provider
• Imtech
• ..
Stedin
Departments
• Control
• Warehousing
• Finance
Stedin
• Managament

Presentation
Composition
Integration
Application
Data
Channel
GovernanceSecurity
Impact
Prepare Execute Finish
Planning Financial
Product
catalogue
CRM
Internal integration
Stedin
Process
data
Transaction
data
Validation
Integration with
external providers
Imtech
Other
Service
Providers
Exception
handling
Workorder
browser
Browser PDA
Aggregated
management data
Reporting
Real time
monitoring

Real time monitoring
BAM – Example case of immediate benefit
33

Results
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
1
2011
W
eek
01
%
2011
W
eek
03
%
2011
W
eek
05
%
2011
W
eek
07
%
2011
W
eek
09
%
2011
W
eek
11
%
2011
W
eek
13
%
2011
W
eek
15
%
2011
W
eek
17
%
2011
W
eek
19
%
2011
W
eek
21
%
2011
W
eek
23
%
2011
W
eek
25
%
2011
W
eek
27
%
2011
W
eek
29
%
2011
W
eek
31
%
> 5 dagen
<= 5 dagen

Resume
• Extra workforce internal to support large roll-out
• Contracts with external service providers (Imtech,..) for roll-out
• Ad-hoc activities by external service providers
People
• End-to-end process execution
• Insight in process execution
• From 30% automated towards 99% automated (internally in
Stedin)
Process
• Process management supported by BPMNS (Oracle)
• Flow of information through organization is validated in every
step
• Real-time supported for KPI tracking (Oracle BAM)
Technology

End result project
Large roll-out of smart meters started
End-to-end work order management supported by processes and
automation
External service providers can be added relatively quick to the end-to-end
execution
 Agreement on information delivered back from service providers
 Agreement on financial handling
 Agreement on quality levels

Questions for students
What is the impact of a reading not executed by a service engineer?
What do we need to do to include a new service provider?
What is the impact of adding new information for regulations purposes to
the landscape?

Summary
When looking at the impact of a business question, do not forget the
Why question
Change required by the business impacts
 People
 Process
 Technology
We’ve focused on the Technology part of the impact with the CORA
model
We’ve looked at two examples where impact was on all three areas
People, Process, Technology

Contact information
Léon Smiers
Solution Architect Oracle BPM/Case Management
leon.smiers@capgemini.com
+31 6 150 30 373
http://twitter.com/leonsmiers
http://www.capgemini.com/oracleblog
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The information contained in this presentation is proprietary.
© 2012 Capgemini. All rights reserved.
www.capgemini.com
About Capgemini
With more than 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2011 global revenues
of EUR 9.7 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore ®,
its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini

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