Enterprise Of The Future

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How social computing and IT developments enable the Enterprise of the Future.

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Enterprise Of The Future

  1. 1. Service science – business activities supported by IT services Octobre 2nd 2009 Wout J. Hofman, senior innovator
  2. 2. The five core areas of TNO TNO Quality of TNO Defence, TNO Science TNO Built TNO Informa- Life Security and and Industry Environment tion and Safety and Communication Geosciences Technology 2 Wout Hofman Delft, Octobre 2nd 2009.
  3. 3. TNO offices in the Netherlands 3 Wout Hofman Delft, Octobre 2nd 2009.
  4. 4. The strength of TNO From concept to innovation 4 Wout Hofman Delft, Octobre 2nd 2009.
  5. 5. Three development lines feed into the concept of ‘enterprise of the future’ Globa lizatio n of b usine ss Enterprise Internet / social computing of the ment Future lop ce deve eb servi IT/ w 5 Wout Hofman Delft, Octobre 2nd 2009.
  6. 6. Enterprise of the future (source IBM): • Adapted to change • Quickly changing • Shaping and leading trends • Innovative • Collaborative relationships • Beyond customer imagination • Globally integrated • Access to best capabilities, knowledge and assets • Disruptive by nature • Shifting value proposition • constantly reinventing • Genuine concern for society 6 Wout Hofman Delft, Octobre 2nd 2009.
  7. 7. In a business network organizations have to collaborate for service delivery. Each actors has its drivers, e.g.: - cost reduction - profit increasing - sustainability - quality of service - increase customer service - circles: organizations/ software platform - dotted lines: potential business collaborations - red lines and red circles with letters: business transaction tree of cooperating actors 7 Wout Hofman Delft, Octobre 2nd 2009.
  8. 8. Globalization – the bigger picture • 24x7 global economy • Compliance issues • SOX/Basel II – financial • Secure trade (>911) – global supply chains and logistics • Customs – import and export restrictions • Kyoto – sustainability • International and national laws and regulations • Interoperability perspective • exchange of business document based a variety of standards (XML, EDI, etc.) • communities, e.g. PortBase for the Dutch ports • based on modeling secure business chains (time consuming, static structures) 8 Wout Hofman Delft, Octobre 2nd 2009.
  9. 9. Internet / social computing • Growing bandwidth, fiber to the home • Increasing demand of Internet addresses (IPv6) • Internet of things • New devices with easy to implement functionality (e.g. iPhone with Appstore and Google Android) • Growing adoption by individuals • Growing market for multimedia products (the Long Tail) • Social communities (Facebook, Hyvess, LinkedIn, massive online gaming, etc.) • New, graphical platforms for social interaction from gaming environments (e.g. SecondLife) • Co-creation by individuals (Twitter, Google Earth, blogs, supplier/product ratings, etc.) • Mash-up – rapid information disclosure using available services like Yahoo Pipes • Used by business, mainly from a marketing perspective 9 Wout Hofman Delft, Octobre 2nd 2009.
  10. 10. Still a lot of issues need to be solved with two sides: • Identity: • easy to imposter as someone else • leads to other patterns of criminality • Privacy: • lots of private information swarming on the web • no ability to remove the information • data mining technology used for customer specific offerings (including spam), but also criminal actions • Research in areas of data mining based on search technology to detect criminal behavior. • From a business perspective: • a global system for identity and authentication based on open standards (e.g. SAML) • trust and reputation management 10 Wout Hofman Delft, Octobre 2nd 2009.
  11. 11. IT / web service developments are twofold • Technology • Suppliers 11 Wout Hofman Delft, Octobre 2nd 2009.
  12. 12. Web service development is mostly an IT matter, focusing on solving a technical issue of mashed systems. Promises: • flexibility • adaptability broker • etc. Technology: • XML Schema • WSDL • UDDI 12 Wout Hofman Delft, Octobre 2nd 2009.
  13. 13. Web service development basically is adapting systems to offer services. New challenges arise beyond the horizon. composed application service Enterprise Service Bus (routing, service directory, authentication/identity mngt, business process support) application service application service application service application service Application service: an externally visible unit of functionality, provided by one or more application components, exposed through well- application function application function application function application function defined interfaces, and meaningful to the environment. A web Service is an example of the implementation of an application service. Disclosing more systems with services raises issues like granularity, service directory, same data in different applications (Master Data Management), etc. 13 Wout Hofman Delft, Octobre 2nd 2009.
  14. 14. New concepts, languages and tools are introduced to cater for this challenge: • Semantics: • Semantic Annotation of WSDL (SAWSDL) • Semantic and conceptual models for web service choreography (WSMO) • Mediation: • Customer goal versus provider capability • Different levels of mediation (services, semantics, interaction sequencing called choreography) • However, questions are: • alignment of business and IT (service) • business case for a technical implementation 14 Wout Hofman Delft, Octobre 2nd 2009.
  15. 15. In the meantime the IT suppliers offer: • Cloud computing services (Google, IBM, etc.) to optimize hardware utlization (also from a sustainability perspective - greenIT) • Software as a Service (SaaS): • transaction based payment • rapid service delivery based on semifinished products • impact on IT suppliers 15 Wout Hofman Delft, Octobre 2nd 2009.
  16. 16. What do we want to describe? An example – BeerLL. Fraud prevention for excise payment is the basic issue. Two innovations: a smart container seal and web services. 16 Wout Hofman Delft, Octobre 2nd 2009.
  17. 17. The detailed scenario for direct delivery includes the following organizations shipper selling/buying of products consignee forwarder forwarder shipping line liner agent liner agent carrier stevedore stevedore carrier retailer plant terminal terminal store 17 Wout Hofman Delft, Octobre 2nd 2009.
  18. 18. One of the business scenarios is direct delivery from a Dutch plant. Dutch Tax Heineken NL Carrier Heineken UK UK Tax Retailer UK Supermarket Order Order Order Transport instruction Declaration Planning Delivery schedule Shipment Authorisation Delivery schedule Excise movement Delivery schedule Transport report Arrival report Arrival report (exc. payment) Approval Arrival report Arrival report Arrival report The question is: how to model all scenarios? 18 Wout Hofman Delft, Octobre 2nd 2009.
  19. 19. Service systems …. • .. constitute of several business scenarios • .. have to be flexible in collaboration • .. are based on trust and reputation management • .. require underlying concepts that specify these requirements 19 Wout Hofman Delft, Octobre 2nd 2009.
  20. 20. Basic concepts for service systems: • Business activity: • a real world effect on subjects/objects performed by an enterprise • specified by its semantics and business documents with their sequence • supported by IT (technical details) • stored in for instance a business registry (e.g. maintenance by Chamber of Commerce) • described by a number of parameters • generic for a business domain, e.g. logistics, insurance, government/municipalities • examples: transport, produce, insure risk, building permission • business activities for organizations are published and can be discovered • Business service • actual conditions under which a business activity is performed (including prices) • specific to each enterprise, not necessarily published • mediation of customer goal with provider service at runtime • Business transaction • actual exchange of a business service • all relevant information to perform that business service is exchanged by IT according to specification given by the business activity • Business transaction management • composition of a business process based on outsource policies for delivery of a business service • internal to each service provider 20 Wout Hofman Delft, Octobre 2nd 2009.
  21. 21. Semantics of business activities in a business domain can be specified by ontology. 21 Wout Hofman Delft, Octobre 2nd 2009.
  22. 22. Ontology is a different technique to express data requirements • consists of: • semantic concepts • association between those concepts • rules govern the associations and instances (consistency rules) • is able to express more functionality than data modeling techniques: • consistency rules • independent of technical solutions (mapping to XML Schema, database schema) • can also be used to model user interfaces (additional open standards are available) • understandable 22 Wout Hofman Delft, Octobre 2nd 2009.
  23. 23. A business collaboration protocol needs to be implemented by a customer and a service provider business service customer collaboration provider protocol business collaboration business collaboration protocol execution - protocol execution - customer provider 1. Both parts can be implemented by a BPEL document generated from the UML state chart. 2. A business transaction is used to synchronize processes and data of business service consumer and producer (‘state synchronization’). 3. All possible states are expressed by the protocol and all data that can be exchanged. 4. A business interaction is therefore of a particular type (to trigger a state transition of the protocol) and contains data. 5. These protocols have to express normal behavior, but also exceptions and errors. 23 Wout Hofman Delft, Octobre 2nd 2009.
  24. 24. Examples of a state and sequence diagram – order example business interaction type business interaction of path expressed by a a type sequence diagram business collaboration protocol The state diagram supports functionality: • to reject an order • to cancel an order (as long as it is not dispatched) • to delay delivery and either accept that delay or cancel the order It needs to express aspects like: • conditions • periods business transaction according to a business collaboration 24 Wout Hofman Delft, Octobre 2nd 2009. protocol
  25. 25. Relation between business collaboration protocol and ontology and mapping to standards design mode ‘technical’ mode semantic model view adding standards business activity specific requirements business view collaboration view protocol interaction type view WSDL, XML Schema, etc. 25 Wout Hofman Delft, Octobre 2nd 2009.
  26. 26. These mechanism support realtime construction of hierarchical relations in business networks (chains). • We don’t want to model all business transaction trees in a network. • The dynamic construction of a business transaction tree is governed by rules: • outsourcing rules (these are specific to each actor) • business rules that govern the internal relation between business transactions • this internal relation is governed by resource allocation: a business service provider needs to allocate resources to provide a business service to a business service consumer • implies a type of two-phase commit relation: allocate resources and use those resources • the sequencing or parallelism of resource allocation of outsourced task is specific to each actor (critical path analysis) 26 Wout Hofman Delft, Octobre 2nd 2009.
  27. 27. A possible use case: import of Dutch beer by Heineken UK. • Select sea carrier and negotiate transport: • failure: select and negotiate an alternative • Ok, port of loading and discharge/stevedores are known • Select transport to the port and negotiate one or more options • failure: select and negotiate an alternative • Ok, transport to port of discharge can be arranged • Arrange transport to port of discharge with pre-carriage and sea transport • Select transport to the final destination and negotiate one or more options • Wait for reports and/or exceptions retailer plant terminal terminal store 27 Wout Hofman Delft, Octobre 2nd 2009.
  28. 28. Further steps are in business intelligence Business Intelligence feedback monitor Business network control Real world (people, resources (trucks, vessels, etc.), sensors, etc.) 28 Wout Hofman Delft, Octobre 2nd 2009.
  29. 29. Why apply these concepts? • They specify collaboration at a business level • They can be supported by different technical solutions • They can be used by business persons to configure IT based on known outsourcing relations • Monitoring behavior according to laws and regulations will become simplified (less administrative burden) 29 Wout Hofman Delft, Octobre 2nd 2009.
  30. 30. What we have tried to show is the support of business activities/services by IT/web services Business/government service: a IT/web service: an externally coherent piece of functionality that visible unit of functionality, offers added value to the provided by one or more environment, independent of the way business service IT/web service application components, this functionality is realized internally. exposed through well-defined Examples: permits, transport. interfaces, and meaningful to the environment. A web Service is an example of the implementation of an application business process application function service. Business transaction: the ordered Business interaction: behavior set of interactions as an instance of performed by two business roles, a business service, e.g. all e.g. purchase order, transport interactions between two business instruction, permit request. roles to plan, execute, and report transport of goods. 30 Wout Hofman Delft, Octobre 2nd 2009.
  31. 31. We are not yet there. We distinguish: • Those aspects that are common to a business domain: • business activities • business registry • semantics and business collaboration protocols • technical solutions for actual collaboration • Those aspects that are in the domain of each enterprise: • business services (business activities with conditions and prices) • outsourcing strategies that govern the construction of business processes These can be specified in such a way that: • they meet the requirements of the enterprise of the future • can be extended with other policies (e.g. security, sustainability, etc.) • can be supported by different technologies Issues for future research are in trust, reputation management, and identity. 31 Wout Hofman Delft, Octobre 2nd 2009.
  32. 32. Questions? Wout Hofman Wout Hofman Ph.D., M.Sc. Ph.D., M.Sc. TNO Information and TNO Information and Communication Technology Communication Technology Brasserplein 2 Brasserplein 2 P.O. Box 5050 P.O. Box 5050 2600 GB Delft 2600 GB Delft The Netherlands The Netherlands T T +31 15 285 71 29 +31 15 285 71 29 M M +31 6 224 998 90 +31 6 224 998 90 F F +31 15 285 73 49 +31 15 285 73 49 wout.hofman@tno.nl wout.hofman@tno.nl http://www.linkedin.com/in/whofman http://www.linkedin.com/in/whofman See also ‘EDI, Web Service en ebXML – interactie in organisationetwerken’ for the underlying concepts. 32 Wout Hofman Delft, Octobre 2nd 2009.

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