enterprise SOA Fundamentals - The Basics -

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1 enterprise SOA Fundamentals - The Basics - Dr. Christian Scherpe SAP Deutschland AG & Co. KG Netweaver 2006/Q2 Material number

2 Agenda What is enterprise SOA Core & Context Benefits Terms SAP AG 2007, enterprise SOA Fundamentals Training, Basics 2

3 Today IT is not built for change A VICIOUS CYCLE? CEO sets strategy Strategy for GROWTH Business change Ability to EXECUTE Existing IT landscape enables work Prohibitive cost and time of IT changes IT not aligned with the business Quick fixes result in more future risk/cost Companies move away from buy model into build model >80% of IT budget spent on status quo TCO pressures continue to rise We need to break the cycle!! SAP AG 2007, enterprise SOA Fundamentals Training, Basics In spite of the fact that the ability to change is so important, it is amazing to see how today s IT landscapes fail at delivering the needed flexibility: Whenever the business side of the house adjusts the strategy, maybe to tap into new opportunities, maybe to acquire another company --the same discussion invariably arises. In spite of significant past investments into the IT infrastructure of the organization, the money and time it takes to implement changes in the IT systems seems to be prohibitive. Even worse as budgets are already tight, companies engage in quick fixes and work-arounds that in the long run increase the inflexibility and drive the total cost of ownership even higher. As a result, the pressure on the IT budget increases, less money is available to realize truly innovative business solutions. CLICK And as the TCO pressure continues to rise, the vicious cycle continues unabated. And with each cycle, IT is less aligned with the business side of the organization. 3

4 What are your options TO DRIVE GROWTH? Do nothing and die Build your own platform or solution and run into the TCO trap Outsource everything including your ability to change/innovate Buy new systems and replace old ones and don t leverage existing investments Architect for innovation by elevating IT into an enabler of change SAP AG 2007, enterprise SOA Fundamentals Training, Basics 4

5 IT to support Business needs Years Months Business Process Change Weeks Days Product Lifecycle Hours Minutes Process execution time 1900s 1920s 1940s 1960s 1980s 1990s 2000s Source: Gartner SAP AG 2007, enterprise SOA Fundamentals Training, Basics 5

6 IT and Business alignment (today) Business IT Biz Owner different language (Biz vs IT) + different department + different mindset + different experience + different perception + different KPI s = Solution expert Developer SAP AG 2007, enterprise SOA Fundamentals Training, Basics 6

7 What if The idea we could "extract" the business scenarios from the complexity of existing application landscapes? SAP AG 2007, enterprise SOA Fundamentals Training, Basics 7

8 Using an enterprise services based Architecture solves the challenge of adaptability To assemble applications, roles and services from vendors, partners as well as in-house into custom composite, event-driven business scenarios. Role-based User Interfaces Composite Business Scenarios Credit check Service request Price ATP Delivery lead time Functional Applications SAP AG 2007, enterprise SOA Fundamentals Training, Basics The good thing about Web Services? Business People can understand them Three independent levels The combination of custom and standard software. 8

9 Enterprise SOA fulfills the outsourcing thought. Subsidiary A Often processes are not able to outsource because the processes change. But many services don t change. Subsidiary B Subsidiary C Enterprise SOA allows outsourcing of process parts to IT vendors. Self Provided Services Company Boarder Outsourced Enterprise Services SAP AG 2007, enterprise SOA Fundamentals Training, Basics 9

10 Enterprise SOA supports the re-using of self made services in a company wide process landscape. Subsidiary A All large companies have the need to develop their own processes with big effort although the used services are the same. Subsidiary B Subsidiary C Enterprise SOA makes it possible to develop the same service at once. Self Made Service Framework SAP AG 2007, enterprise SOA Fundamentals Training, Basics 10

11 Enterprise SOA: concept for flexibility With enterprise SOA process steps can be easily decoupled and re-composed. MODU- LARIZATION SPECIALIZATION AND CONSOLIDATION COMPOSITION AND COLLABORATION Step 1 (today) Step 2 (short-term) Step 3 (mid-term) Process chains are broken into enterprise services (depending on business criteria) Similar process steps get consolidated. Differentiating steps are enhanced. Process chains are flexibly re-arranged and re-configured based on business needs. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 11

12 Enterprise Services: The Common Language Enterprise Services establish a common and stable service contract between business and IT, while allowing "strategic decoupling" Business Strategy Flexibility Check Availability Reserve Capacity Place Supp Order Confirm Cust. Order Efficiency Check Product Availability Reserve Product Move Stock IT Strategy (optimize) SAP AG 2007, enterprise SOA Fundamentals Training, Basics From here on the story starts. Maybe Terms right from the beginning? enterprise SOA changes the way the business thinks of IT: enterprise SOA changes the fundamental assumptions most businesses have about IT that it is a roadblock to change. Instead, enterprise SOA will allow IT to respond more easily to business demands and better support business strategies. enterprise SOA changes the way the IT interacts with the business: enterprise SOA improves IT s ability to respond to business change. IT organizations will become facilitators to business improvement while leveraging existing technology investments. enterprise SOA will enable firms to quickly, easily, and costeffectively optimize existing business processes and innovate both their processes and business models to improve time to opportunity and ultimately drive growth. 12

13 What enterprise Service Oriented Architecture Offer: Flexible Innovation on Top of a stable Platform SUPPLIER FLEXIBILITY COLLABORATIVE CONTINUALLY IMPROVING EVENT-DRIVEN CONFIGURABLE i EXTERNAL INFO INTEGRATION Flexibility and extensibility Model-driven service composition Service orchestration Bus. Partner Technology Business Process Platform Legacy/ 3 rd Party SAP Appl. Platform Objects, Engines, and Components Reliable execution Controlled process execution Common enterprise SOA implementation for all platform services Version management Best-of-breed objects Cross-industry capability High scalability Quality by engineering SAP AG 2007, enterprise SOA Fundamentals Training, Basics 13

14 Anatomy of a Composite on Top of Platform Role 1 Role 2 Workcenter Business Proc. Platform COMPOSITE APPLICATION Enterprise Service Rep. UI Remote Services Step 1 Step 2 Step 3 Step 4 UI Business Objects Local UI Remote LDU LDU LDU Foundation Local Services Composite Process Actions Action-UI Business Objects, Services Process Agents Process Integration Logical Deployment Units Foundation Services Actions BO model Database SAP AG 2007, enterprise SOA Fundamentals Training, Basics 14

15 Enterprise Service-Oriented Architecture PEOPLE PRODUCTIVITY EMBEDDED ANALYTICS SERVICE COMPOSITION PEOPLE PRODUCTIVITY ANALYTICS/REPORTING SERVICE COMPOSITION SERVICE ENABLEMENT SAP NetWeaver SERVICE ENABLEMENT Enterprise Services Repository SAP s Enterprise Services Partner Services Business Objects, Components, and Engines LIFE-CYCLE MANAGEMENT Bus. Partner Legacy LIFE-CYCLE MGMT SAP AG 2007, enterprise SOA Fundamentals Training, Basics 15

16 From Integration Coding to Business Modeling Information Technology Process Innovation Technology UI UI UI Composites Functional Components Business Process Platform Appl. Platform DB DB Closed packages Database, messaging Static application UIs Coded process integration Inflexibility, high TCO One open composition platform Enterprise Services Infrastructure Adaptive Portal UIs Model-driven services composition Flexibility, business value SAP AG 2007, enterprise SOA Fundamentals Training, Basics 16

17 Agenda What is enterprise SOA Core & Context Benefits Terms SAP AG 2007, enterprise SOA Fundamentals Training, Basics 17

18 Customers Want More CEO s Wish List* 1 Reduce costs through efficiency/ increased productivity 2 Enable/drive business innovation 3 Create/enable competitive advantage 4 Enable growth PRODUCTIVITY SUSTAINABLE DIFFERENTIATION 5 Improve ext. customer satisfaction 6 Enable regulatory compliance 7 Enable global operations * CIO Magazine October 2004; survey of 544 CIOs and CEOs SAP AG 2007, enterprise SOA Fundamentals Training, Basics 18

19 IT Double Role: A lever to Standardize and Innovate 1 Source of cost reduction through an increase of efficiency and productivity 2 Promoter and leader in the business innovation processes 3 Source of new competitive advantages 4 Enabler of the company s growth processes 5 Customer satisfaction improvement source 5 6 Consente l adeguamento alla normativa INNOVATION 5 7 Facilita le operazioni globali 5 8 Razionalizza la supply chain STANDARDIZA- TION INVENTION COMMODITY SAP AG 2007, enterprise SOA Fundamentals Training, Basics 19

20 SAP AG 2007, enterprise SOA Fundamentals Training, Basics Building new, customized solutions that support innovation is expensive and time-consuming because leveraging the functionality of your existing packaged applications is extremely difficult. And, as an innovative solution becomes a standard practice, you have to migrate this custom-built application into a packaged solution. The value of the process has changed, and this is reflected in its cost to the organization. However, because the custom application and the packaged solution are almost always based on different platforms, making the transition tends to be a costly and lengthy process. The ultimate consequence: IT is often unable to deliver business process change and innovation at the pace and efficiency required by the business. 20

21 Blueprint for both: Systems and IT Landscape Supplier Rep. Liaison Officer Prod. Planner Demand PO Creation Fulfilment Coordination Settlement Composite Applications driven Process SAP NetWeaver ENTERPRISE SERVICES Business Process Platform AFS (SAP R/3) Order Mgmt (Legacy) Shipping (Legacy) Mfg (Legacy) Freight (External) Collaboration (3 rd party, ext.) Invoicing (3 rd party) Enterprise Services & Systems SAP AG 2007, enterprise SOA Fundamentals Training, Basics 21

22 Innovation through Customers development Supplier Rep. Liaison Officer Prod. Planner Dynamic Sourcing Distributed Production Delivery to Retail Chain Stores Settlement CORE Focus: Differentiation INNOVATION CONTEXT Focus: Productivity STANDARD- IZATION SAP NetWeaver ENTERPRISE SERVICES INNOVATE AFS (SAP R/3) ERP (Internal) Freight (External) Collaboration (3 rd party) Invoicing (Out-tasked) INVENTION COMMODI- TIZATION Build Innovative custom applications for competitive differentiation SAP AG 2007, enterprise SOA Fundamentals Training, Basics 22

23 Streamline for Cost efficiency and consistency Supplier Rep. Liaison Officer Prod. Planner Demand PO Creation Fulfillment Coordination Settlement CORE Focus: Differentiation INNOVATION CONSOLIDATE CONTEXT Focus: Productivity STANDARD- IZATION SAP NetWeaver ENTERPRISE SERVICES AFS (SAP R/3) Order Mgmt (Legacy) Shipping (Legacy) consolidate Mfg (Legacy) Freight (External) Collaboration (3 rd party, ext.) Invoicing (3 rd party) INVENTION COMMODI- TIZATION Consolidate various legacy systems or technologies into one enterprise system SAP AG 2007, enterprise SOA Fundamentals Training, Basics 23

24 Don t outsource your CIO, Outtask Components! Supplier Rep. Liaison Officer Prod. Planner Demand PO Creation Fulfilment Coordination Settlement CORE Focus: Differentiation INNOVATION CONTEXT Focus: Productivity STANDARD- IZATION SAP NetWeaver ENTERPRISE SERVICES OUT-TASK AFS (SAP R/3) ERP (Internal) Freight (External) Collaboration (3 rd party, ext.) Invoicing (Out-tasked) outtask INVENTION COMMODI- TIZATION Out-source a task while maintaining overall process control and visibility SAP AG 2007, enterprise SOA Fundamentals Training, Basics 24

25 Reflect industrial changes in your IT-Landscape Supplier Rep. Liaison Officer Prod. Planner Demand PO Creation Fulfilment Coordination Settlement CORE Focus: Differentiation INNOVATION CONTEXT Focus: Productivity STANDARD- IZATION SAP NetWeaver ENTERPRISE SERVICES INSOURCE AFS (SAP R/3) ERP (Internal) Freight (External) Collaboration (3 rd party) insource Invoicing (Out-tasked) INVENTION COMMODI- TIZATION When commoditized processes become strategic, effectively in-source SAP AG 2007, enterprise SOA Fundamentals Training, Basics 25

26 Flexibility for Business Process Innovation Supplier Rep. Liaison Officer Prod. Planner Dynamic Sourcing Distributed Production Delivery to Retail Chain Stores Settlement CORE Focus: Differentiation INNOVATION CONTEXT Focus: Productivity STANDARD- IZATION COMPOSE SAP NetWeaver ENTERPRISE SERVICES AFS (SAP R/3) ERP (Internal) Freight (External) Collaboration (3rd party) Invoicing (Out-tasked) INVENTION COMMODI- TIZATION Compose existing business processes into new and innovative business processes SAP AG 2007, enterprise SOA Fundamentals Training, Basics 26

27 One Single Platform to Consolidate & Compose Business Processes Mission Critical Activities Enabling Activities Custom & xapps POWERED BY NETWEAVER INVENT INNOVATION SCALE INVENTION CONSOLIDATE COMPOSE SAP POWERED BY NETWEAVER STANDARD- IZATION INSOURCE OUT-TASK COMMODI- TIZATION RETIRE Courtesy to G. Moore s Living on the fault line SAP AG 2007, enterprise SOA Fundamentals Training, Basics 27

28 Business Process lifecycle: Hi-Tech Example REINVENTING PLANNING AND MANUFACTURING PROCESS DIFFERENTIATION SAP POWERED PRODUCTIVITY BY NETWEAVER SAP Business Suite Source Procure P2P Auction Plan Manuf. O2C M2i Enterprise Services Repository SAP NetWeaver ENTERPRISE SERVICES SCM SRM PLM CRM ERP SAP AG 2007, enterprise SOA Fundamentals Training, Basics 28

29 Business Process lifecycle: Hi-Tech Example REINVENTING PLANNING AND MANUFACTURING PROCESS DIFFERENTIATION PRODUCTIVITY Source Procure P2P Auction O2C Availability-to to-sale Plan Manuf. M2i Enterprise Services Repository SAP NetWeaver ENTERPRISE SERVICES REUSE PROCESS STEPS AND ENTERPRISE SERVICES IN CUSTOM PROCESSES ERP CRM PLM SRM SCM Custom SAP AG 2007, enterprise SOA Fundamentals Training, Basics 29

30 enterprise SOA as the Convergence Point of Business and IT Purchaser Production Planner Accountant Portals that help people do their work Composite Applications SAP NetWeaver People Integration Information Integration Process Integration SRM PLM ERP SCM CRM Business Engineering Integration & Application Platform enterprise Service- Oriented Architecture Leverage Existing Investments and Reduce Total Cost of Ownership Extension of Operational and Administrative Processes Innovation and Continuous Adjustment of Business Processes SAP AG 2007, enterprise SOA Fundamentals Training, Basics 30

31 Agenda What is enterprise SOA Core & Context Benefits Terms SAP AG 2007, enterprise SOA Fundamentals Training, Basics 31

32 Business Benefits of Enterprise Services Architecture User productivity and centricity Let each user group work in their own way Give users access to the data and functionality they need Use appropriate UI technology for each situation Next business practices and process innovation Assemble and re-assemble processes rapidly, across organizational boundaries Create composite applications to support new processes Business automation and process efficiency Streamline processes and enable automatic processing Focus on data collection at the source, data processing where appropriate Flexible deployment Reduce costs through BPO etc. Deploy solutions step-by-step Allow deployment to follow organization, even when it is changing SAP AG 2007, enterprise SOA Fundamentals Training, Basics 32

33 Multiple Benefits HELPING DIFFERENTIATE Openness Open Web services standards Open integration platform Interoperability ENTERPRISE SERVICES ARCHITECTURE Adaptability Model-driven Configurable Extensible Services composition Process innovation Enterprise Services Repository Bus. Partner Legacy/ 3 rd Party Composites SAP NetWeaver Composition Platform SAP Appl. Platform Objects, Engines, and Components Bus. Process Platform Lower TCO Deployment options through configuration Common operational services Always On platform Productivity People productivity Embedded analytics Process efficiency Process flexibility DRIVING PRODUCTIVITY SAP AG 2007, enterprise SOA Fundamentals Training, Basics 33

34 Agenda What is enterprise SOA Core & Context Benefits Terms SAP AG 2007, enterprise SOA Fundamentals Training, Basics 34

35 Terms Web Service (Term used in different variations!) In the Gartner definition, Web services are software components that employ one or more of three technologies SOAP, WSDL and UDDI to perform distributed computing. Use of any of the basic technologies constitutes Web services. Use of all of them is not required. This is at variance with the definition provided by IBM, among others, that defines Web services as consisting of all three SOAP, WSDL and UDDI of the XML standards. SAP: A Web Service is a standard way of integrating applications, or application components, using a universal language for the discovery, description and delivery of these services. Web services represent a self-contained, selfdescribing piece of application functionality that can be found and accessed by other applications using such a universal language. A Web service is selfcontained, because the application using the Web service does not have to depend on anything other than the service itself, and self-describing, because all the information on how to use the service can be obtained from the service itself. SAP AG 2007, enterprise SOA Fundamentals Training, Basics SAP: Web Services A Web service is a standard-based way of encapsulating the functionality of an application that other applications can locate and access. For example, a Web service could be the single deletion of the order record in a sales management system. 35

36 Terms Enterprise Service A service used in the execution of a business process step, having a significant meaning and impact for the business of the enterprise. An enterprise service fulfills strict rules regarding version compatibility and stability defined by the enterprise service interface, and built on Web service technology. Enterprises services are Web Services that have an enterprise level business meaning. These are typically an aggregation of application (or web) services of lower granularity combined with simple business logic to support a step of a business process. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 36

37 What makes a Services an Enterprise Service DRIVING WEB SERVICES TO THE ABSTRACTION LEVEL OF PROCESS STEPS TO CLOSE THE GAP BETWEEN BUSINESS & IT Harmonization & Standardization Effort RFC, BAPI Web-Service Enterprise Service Modeled and fully harmonized across SAP solutions Degree of Harmonization & Standardization across SAP Solutions SAP AG 2007, enterprise SOA Fundamentals Training, Basics Service enabling will elevate lead us towards a world were software will be modelled and composed of loosely coupled building blocs. (Lego) Whereas in former times the granularity was on technical level, which required to understand the specific semantics of each service provider, we achieve through service enabling and abstraction, which brings us closer to the business Independence of Services Increased Flexibility Reuse What does this mean for information management? Embedding of Information becomes easier Utization Let s start with an example 37

38 Terms Service Oriented Architecture (SOA) Service-Oriented Architecture is a software architecture that supports the design, development, identification and consumption of standardized services across the enterprise, thereby improving reusability of software components and creating agility in responding to change. SOA. + Business context + Enterprise Services + where it makes sense = enterprise SOA Technology architecture only Business logic, integrity & flow integrated Reusable application functionality Driven by customer and partner input SAP AG 2007, enterprise SOA Fundamentals Training, Basics 38

39 Terms enterprise Service-Oriented Architecture (esoa) Enterprise Service Oriented Architecture is the blueprint of a serviceoriented architecture for current and future SAP customers. It combines the reliability and extensive functionality provided by SAP s extensive enterprise applications with the flexibility of services based on open standards. Leveraging SAP NetWeaver, it allows the seamless integration of SAP, legacy and third party software into composite applications that can enhance and innovate key business processes Enterprise Services Repository (ESR) The central repository in SAP NetWeaver, where enterprise services, business objects, and business processes are modeled and their metadata is stored. This repository is an integral part of SAP NetWeaver. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 39

40 Terms Enterprise Service Bundles ES bundles group enterprise services for high-impact, easy-to-implement, endto-end scenarios and processes. ES bundles should aim at business scenarios and processes To increase flexibility in connecting business partners To connect to third-party applications (system integration) To enhance, innovate, and extend existing SAP business functionality Documents/Tools ES Workplace: SOA/esworkplace Wiki for ES bundles: %20%22 Corporate Portal: SOA SAP AG 2007, enterprise SOA Fundamentals Training, Basics 40

41 Terms Composite Application An application on top of other applications or application components that makes use of data and functions that are provided as services by underlying applications or application components and combines them into a coherent business scenario. It can add its own business logic and provide specialized user interfaces to fully support the business scenario. Composite Application Framework (CAF) A reusable basic design structure that provides a development environment in which different services can be composed and orchestrated into new composite applications. CAF is integral part of SAP NetWeaver. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 41

42 Terms xapps Packaged composite applications that are sold separately from SAP Business Suite, SAP All-in-One, and SAP Business One, with their own release schedule. SAP xapps enable new business processes or significantly enhance existing business processes. Guided Procedures A flexible, highly functional workflow environment that enables users without specialized software development skills to set up and execute collaborative business processes by providing reusable templates.. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 42

43 Terms Business Process Platform (BPP) The combination of the SAP application platform with the composite platform (that is, SAP NetWeaver), which supports the creation, enhancement, and seamless execution of business processes and business scenarios. This platform can be leveraged by SAP internally to develop packaged composite applications, leveraged by partners to provide additional services and composite applications, and leveraged by customers to extend the solutions to address their specific and evolving business needs. Visual Composer An SAP modeling tool that allows business users to create user interfaces through an easy-to-use graphical modeling environment. SAP AG 2007, enterprise SOA Fundamentals Training, Basics 43

44 Dual Principles: Platform and Hat on Top Tailored Solutions = = Multiple Hats + + One Platform SAP AG 2007, enterprise SOA Fundamentals Training, Basics 44

45 enterprise SOA Fundamentals What happens at SAP? 1

46 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 2 2

47 SAP Roadmap to ESA as Presented Analyst Summit Enterprise services inventory and prioritization First service-enabled scenarios with focus on collaboration 2005 Enterprise services inventory for planning More service-enabled scenarios: focus on user centricity any business process flexibility 2006 Enterpries Service Repository for active use Major cross-industry scenarios service enabled 2007 All SAP solutions become ESA-compliant SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 3 3

48 What we have Achieved Already: More than 1000 Enterprise Services in total. 22 ES bundles covering the following areas: Order to Cash Customer fact sheet Electronic bill presentment and payment Credit management Manufacturing / Prod. Development Integration of quality management systems Integration of manufacturing execution systems Manufacturing work instructions Document management connectivity SCM Service parts management Demand planning ATP check Supplier collaboration for the supply chain SRM Supplier Order Collaboration w/ SRM External Requirement Processing Retail Demand management Global data synchronization Banking Current account management Loans management Account origination FS business partner maintenance Higher education Course approval processes Public services Public services accounting structures Insurance Insurance claims management SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 4 4

49 The ES-Workplace at the sdn enterprise SOA ES Workplace SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 5 5

50 Where do we want (and need) to be by End of 2007 Adoption Adoption 100 customer references 100+ customer references, thereof 20 showcases 30+ partner references, thereof 6 showcases SAP Custom Development using enterprise Services SAP IT using enterprise Services Provisioning Adoption 100 customer in time and in scope references EhP2 and EhP3 delivered The right ES bundles delivered based on ERP, SCM and Ind. Basic Services coverage of CRM and SRM 3-4 BPP4I delivered Environment Adoption 100 customer in time and in scope references One single ESR delivered Composition environment delivered in time, in quality and scope Consumption DUET 100% based on ES icod 100% based on ES B2B (Inter-Enterprise Collaboration) on ES SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 6 6

51 Enterprise Services Bundles Service Enabled Business Processes for Accelerated Business Value Connecting the dots" between enterprise services Business Scenarios Collaborative WIKI Customer Partner SAP Built-in Governance Prioritization SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 7 7

52 ES bundles and Community Definition Groups Co-Innovation with Partners and Customers Active product community definition groups (CDGs) Cross-industry RFID Multichannel tax and revenue management for the public sector Resources and supply chain management for healthcare providers Supply chain operations for oil and gas Asset configuration and maintenance service collaboration (PBL) Transportation management for chemicals ES bundle for manufacturing ES bundle for order to cash ES bundle for technical document management Collaborative process Planned additional product CDGs Additional CDGs planned for ERP Enhancement Package 2 content Road map driven track SAP s plans to service-enable SAP Business Suite Stakeholder-driven track Customers and partners deciding how SOA drives business value Necessary but not obvious Confirmation of SAP plans Breakthrough innovations Prioritize, considering dependencies Long list: use cases Select quarterly Short list SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 8 8

53 Internal Adoption of Enterprise SOA SAP Applications already leveraging enterprise Services DUET Biggest consumer of enterprise Services 2006 Goal: 100% based on enterprise Services in 2007 Industry Composites (icod) Industry Speak B2B interfaces modeled in XI Goal: based on ES in 2007 End-to-end, user centric processes Piloting Modeldriven development Joint go-tocustomer of PTG and CSO Goal: 100% ES based in 2007 SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 9 9

54 New ERP Roadmap: how it all fits together Enhancement Packages SAP ERP 2005 Next Suite Release SAP NetWeaver Business drivers Customers want evolutionary path rather than large upgrades Partners require a lasting platform on which to offer their applications SAP needs more flexibility to deliver innovation faster to its installed base Technology enablers Enterprise SOA allows for decoupling of composite and core processes Switch framework provides customers the flexibility to chose what functionality to adopt Customers Adopt Innovation at their Pace Process and User Interface Simplification Enterprise Services Industry-Specific Enhancements Cross-Industry Functional Enhancements SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 10 10

55 Elements of ERP Enhancement Packages Process and User Interface Simplification Core processes in focus Cross-Industry Functional Enhancements Separate add-on or through modification layer Industry-Specific Enhancements Switches already in place for ERP 2005 Enterprise Services Can be installed separately All elements of enhancement packages are switchable. SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 11 11

56 5 Enhancement Packages in the Next 2 Years EP ENHANCEMENT PACKAGES EP EP EP EP SIMPLIFICATION Role-Based Access Order To Cash Procure To Pay Attract To Perform Accounting To Reporting ENTERPRISE SOA Adaptive Manufacturing Order To Cash Procure To Pay Financial Shared Services FUNCTIONALITY HR Shared Services Learning Fast Closing Compensation Treasury INDUSTRIES Retail Service Industries Trading Industries Discrete Industries Process Industries SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 12 One of the streams of delivery of enhancement packages will include ES according to this chart. 12

57 Enterprise SOA -- By Evolution...the Safe Choice Without Disruption LARGE ENTERPRISES SAP ERP 2005 as BPP Suite on BPP More composites First release of industry platform MIDMARKET SAP All-in-One on BPP Proven functionality Available for all countries Deep industry capabilities Delivered on-premise Sold by both SAP and VARs SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 13 13

58 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 14 14

59 Enterprise SOA a New Architecture Reach and efficiency Any where, any device Exception oriented Personalized Industry processes End-to-end Networked Configurable ENTERPRISE SOA User Experiences Flexible Processes Business Process Platform Common platform for Open innovation Standard services Real-world connectivity Operational feasibility Lean consumption Lower TCO Embedded compliance SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 15 15

60 Business-Driven SOA Composition Environment for Designing and Running Edge Composites Compose edge applications on SAP and non-sap processes Partner SAP Customer SAP NetWeaver Composition Environment Composite Views Collaborative Processes Composite Applications Productivity Model-driven development Integrated tools Leverage ES Repository Lean consumption Fast setup Live update Standards-based Java EE 5 SDO and SCA SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 16 SAP NetWeaver Composition Environment is a lightweight solution for flexible adoption of core processes running in SAP and non SAP applications. Target Group Customers build edge applications through visual modeling methodologies, e.g. adapting a stable SAP order management process through composition of order taking variants (orders coming from different sources - internet, point of sales, ) Benefits: General composition benefits (process adaptability on a stable core) based on service-enabled SAP Business Suite Partners develop application extensions for white space processes using the full blown development capabilities including enhancements of persistence layer and application logic, e.g. Workspace Solution B2B Retail Mgmt by Accenture Visual Information for Plants by NRX RoHS/WEEE Compliance Solution by TechniData Benefits: development productivity, lean consumption, lifecycle management, best SAP integration, packaging, support SAP developing enterprise services and composite apps enabling process variation for SAP core processes (generic and industry specific) e.g. ES bundles: ES bundle for Electronic Bill Presentment and Payment - enabling extension of invoicing processes with electronic bill presentment and payment services xapps SAP xapp Product Definition SAP xapp Resource and Portfolio Management SAP xapp Cost and Quotation Management SAP Global Trade Services SAP xapp Emissions Management Components of SAP NetWeaver composition environment Runtime components - SAP Java EE 5 Server - Web Dynpro for Visual Composer - Installer and live updater - Connectivity Framework and pre-built adapters from SAP ERP - CAF Core, guided procedures Tools - Visual Composer - SAP NetWeaver Dev. Studio (Eclipse 3.2) Factories - Guided Procedures, BI and Voice kits and related runtimes - Reference applications ESR / Service Registry - UDDI based service registry 16

61 The Pillars Enterprise SAP SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 17 17

62 From Concept to Reality: BPP for Industries (BPP4I) A Business Process Platform provides an extensible repository of enterprise services definitions, application logic that implements those services in a robust and reusable fashion, and a technology platform to integrate, compose, and deploy enterprise services for flexible business processes. A BPP4I provides a tailor-made view on business process platform Automotive Chemicals Banking Public Sector Easy Access to industry relevant Enterprise Services via Industry Solution Maps Industry relevant ES Bundles Content, not coding! SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 18 BPP4I Generic Concept Project scope BPP4I must fit for all industries, not only a few Consider overall strategy, engagements and circumstances (AP Adoption, ES Workplace, ) Roll-out/alignment to all stakeholders in SAP 18

63 icod Pilots our Vision for Industry xapp Development Our Vision Faster reaction on market needs by model-driven development on top of BPP Productivity Quality Coding Today Hardcoded Backend dependency Revenue Time to Market Modeling Tomorrow Model driven Highly Adaptable Loosely coupled Our Approach: icod - new type of Applications - - new Tools - - new Processes - Productized xapps Industry relevant productized xapps, that simplify, automate or extend business processes Superior usability, ease of implementation, and increased adaptability Complement Enterprise SOA delivery by shipping composites on top of the BPP Validate Technology Early validation for SAP composition architecture and tools on first enriched industry-platforms New Processes SCRUM-development methodologies on a broader scale SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 19 19

64 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 20 20

65 Composite Applications: a Technical View Composite Applications make use of data and functions provided as services by platforms and applications, combining these into user-centric processes and views, supported by own business logic and specific user interfaces. Technical characteristics Usage- and process-centric Based on services Loosely coupled to backend systems Abstracting from backend systems Dependent on service enabling Own lifecycle SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 21 21

66 Composite Applications: a Business View Composite Applications are applications supporting highly collaborative and dynamic business processes which span beyond functional, system, and organizational boundaries. End-user characteristics Rich user experience Process context and visibility Office Client Efficiency Analytics Mobile Integrated multisource content Knowledge Transactions Enterprisewide collaboration Flexibility Collaboration High flexibility Portal SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 22 Volatile processes Many users work based on paper, excel or mail These processes are not tracked by system (not measurable) Processes inside current systems are not flexible enough New processes should be implemented without upgrading the existing ones From a customer s and end user s perspective there are requirements for applications which the classical business application can hardly fulfill. Such requirements include: providing a single, intelligent user experience across system and enterprise boundaries crossing functional, system and even company boundaries viewing the enterprise or even the supply chain as a whole rather than its separate parts forcing enterprise-wide and process-wide system and human collaboration assembling a solution primarily from existing multi-source content becoming adaptable by business analysts 22

67 Differentiate through new business processes Business Innovation through Composite Applications Adaptive business networks Information technology as an enabler of change Creates and adapts flexible business solutions leveraging existing information and services Build upon SAP s Enterprise SOA and innovate on top of a stable platform SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 23 Innovation is the single most important factor as companies are driving for long-term success. The winning strategy for growth is to innovate in three categories: the products and services, the operations, and the relationships of an organization. Innovation drives relationship excellence: Companies need to continuously innovate their business relationships, be it with employees, customers, suppliers, or business partners. For example, companies need to improve the understanding of customer needs, and collaborate with suppliers to create better products --all of this in real-time business environments. Innovation drives operational excellence: Companies need to continuously innovate their business and decision-making processes, The goal is to find ways to deliver superior operational benefits at contained costs. Innovation drives product and services excellence: Companies need to continuously innovate their products and services to stay competitive. This not only requires innovation across the R&D departments of a business, but also the service side of the business. Establishing excellence across relationships, products/services, and operations will ensure that companies achieve sustainable profitable growth. In order to innovate for profitable, sustainable growth, companies must change. However, change is difficult. In fact it is painful, based on a recent Gartner/Forbes survey. Gartner/Forbes conducted a survey 42% of the executives interviewed in the survey believe that their company s IT infrastructure is a main obstacle in their ability to change and innovate. This means many executives see inflexible IT infrastructures and inflexible corporate cultures as the primary inhibitors of change, innovation, and growth. The solution: make IT to an enabler of change! 23

68 Key Values of SAP s Composition Environment Utilize SAP s environment for the development of Composite Applications Reuse Leverage existing data and information Use of pluggable composite building blocks Simplicity Visual modeling environment for BPx Pre-built integration with SAP NetWeaver capabilities Efficiency Model driven and pattern based development Automatic generation of coding Agility Code-free adaptation of existing processes and user interfaces Customer extensions to service implementations SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 24 24

69 Anatomy of a Composite Application BACKEND COMPOSITE APPLICATIONS Role 1 Role 2 Step 1 Step 2 Step 3 Step 4 CRM BW ERP Workcenter Composite Process We start by thinking about a new user-centric process reusing functionality of existing systems. Systems DB DB DB Services Actions BO model Database SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 25 25

70 Anatomy of a Composite Application BACKEND COMPOSITE APPLICATIONS Role 1 Role 2 Step 1 Step 2 Step 3 Step 4 CRM BW ERP Workcenter Composite Process The systems have to be service enabled to provide their functionality in an unified way. Services Services Services Service Enablement Systems DB DB DB Services Actions BO model Database SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 26 26

71 Anatomy of a Composite Application Role 1 Role 2 Workcenter Step 1 Step 2 Step 3 Step 4 Composite Process The Process Integration acts as the messaging middleware for service communication, connectivity, transformation and portability. Process Integration (optional) BACKEND Services Services Services CRM BW ERP Service Enablement Systems DB DB DB Services Actions BO model Database SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 27 27

72 Anatomy of a Composite Application COMPOSITE APPLICATION Role 1 Role 2 Step 1 Step 2 Step 3 Step 4 Business Objects Local Remote Workcenter Composite Process Business Objects The unified business object model provides the flexibility to make transparent usage of business objects with local or remote persistency. Services BACKEND Services Services Services CRM BW ERP Actions BO model SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 28 DB DB Database Process Integration (optional) Service Enablement Systems DB 28

73 Anatomy of a Composite Application COMPOSITE APPLICATION Role 1 Role 2 Remote Services Step 1 Step 2 Step 3 Step 4 Business Objects Local Remote Local Services Workcenter Composite Process Business Objects, Services The unified service model provides service abstraction and shields higher layers from service implementation details making them replaceable. Services BACKEND Services Services Services CRM BW ERP Actions BO model SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 29 DB DB Database Process Integration (optional) Service Enablement Systems DB 29

74 Anatomy of a Composite Application COMPOSITE APPLICATION Role 1 Role 2 Remote Services Step 1 Step 2 Step 3 Step 4 Business Objects Local Remote Local Services Workcenter Composite Process UI UI UI User interfaces Business Objects, Services Process Integration (optional) New user interfaces can be created on top of the provided services. BACKEND Services Services Services Services CRM BW ERP DB Actions BO model DB Database Service Enablement Systems DB SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 30 30

75 Anatomy of a Composite Application COMPOSITE APPLICATION Role 1 Role 2 Step 1 Step 2 Step 3 Step 4 UI Remote Services Business Objects Local UI UI Remote Local Services Workcenter Composite Process Actions Action-UI Business Objects, Services Actions decouple process steps from services and user interfaces to allow business experts to model processes on a non technical level. BACKEND Services Services Services Services CRM BW ERP DB Actions BO model DB Database Process Integration (optional) Service Enablement Systems DB SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 31 31

76 Anatomy of a Composite on Top of Platform Role 1 Role 2 Workcenter Business Proc. Platform COMPOSITE APPLICATION Enterprise Service Rep. UI Remote Services Step 1 Step 2 Step 3 Step 4 UI Business Objects Local UI Remote LDU LDU LDU Foundation Local Services Composite Process Actions Action-UI Business Objects, Services Process Agents Process Integration Logical Deployment Units Foundation Services Actions BO model Database SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 32 32

77 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 33 33

78 Enterprise SOA-based Applications Key Ingredients Service-oriented architecture Re-usable services from multiple domains (SAP and non-sap) Model-driven development for views and processes Loose coupling to a stable business backend (ERP2005) Architecture Enterprise SOA Content Tools Enterprise services SAP s proven business semantics (from global data types to business processes) ESR as a common repository for SAP, customers, and partners NetWeaver Composition Environment Standards compliance Lean consumption Developer productivity SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 34 34

79 SAP NetWeaver Is the Strategic Platform of Choice I TODAY TOMORROW Productive Customer Systems ERP / NW usage NW stand-alone 3,24 x UNDECIDED YES, By 2010 Our Customers Voice: SAP as My Strategic Platform 34 NEVER Would you consider SAP NetWeaver as your "corporate standard" technology platform that can best accelerate your business strategies? 21 YES, Currently YES, By % new installations in 2006 Source: SAP October 2006 Survey of 130 Top SAP Global Accounts SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 35 10,000 productive installations (6000 stand-alone) 250% growth in

80 SAP NetWeaver Is the Strategic Platform of Choice II TODAY TOMORROW Productive Customer Systems ERP / NW usage NW stand-alone Market s Voice: Increased purchase intentions for SAP middleware 3,24 x % new installations in Oct'04 Sep'05 Oct'06 MSFT Oracle IBM SAP 135% CAGR Source: Merrill Lynch CIO Surveys 2004, 2005 and 2006 SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 36 36

81 Why SAP NetWeaver as a Strategic Platform? A Product Approach to establishing a Business Process Platform Pre-packaged SOA Integrated Platform Trusted Ecosystem 1000 productized services in a repository with built in governance Speaks language of business The first serviceenabled business suite, powered by a unified platform 26+ proven industry solutions, serviceenabled processes suppliers of industry specific products and services Co-innovation on a common platform SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 37 37

82 SAP NetWeaver A Strategic Platform for Enterprise SOA Help Customers Establish Their Business Process Platform Composition Environment Fast paced edge of the business Don t just code compose! Lean consumption SOA Provisioning Stable, scalable core Open, standards-based Service-enabling processes, information, events SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 38 1st composition platform for Business Process Experts Evolutionary path to Enterprise SOA leveraging enterprise services Ecosystem co-innovates on a single platform 38

83 Enterprise SOA Provisioning Integrated infrastructure Implementing the enterprise SOA blueprint End-to-end integration of processes, events and services Integrated information mgmt Real-time BI Search-enabled enterprise data Data consolidation and integration Powering SAP business applications Enterprise services enabled Integration of business partners and 3rd party applications SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 39 Differentiation is: integrated elements, supporting enterprise SOA applications, extending to information management BI, search, MDM The ES Infrastructure ensures smooth integration of processes, events and services required for the operation of process components It implements the enterprise SOA blueprint by providing: Process automation to orchestrate the flow of information between different components Event handling to enable dissemination, filtering and correlation of business events triggered by business objects A service bus to reliably transport messages between the participating process components, mapping between business objects and brokering the flow of information Business activity monitoring to supervise expected execution of business processes based on business events and trigger alerts if required Additionally it provides integration with business partners and 3rd party applications to extend the scope of business processes provided Based on proven XI backbone, installed more than 2,200 times, licensed to more than 1,200 customers Enhanced with master data management, 300+ installations, 50+ productive customers 39

84 SAP NetWeaver Platform for an enterprise SOA enabled SAP Business Suite SAP NetWeaver provides the platform to do all that! Composition Environment Enterprise Service Repository Service Enabling Technology Application & Integration Platform SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 40 (start by peeling away the stuff on top of the platform visual ) SAP NetWeaver! In this presentation I will describe what this platform provides in order to enable an enterprise SOA enabled SAP Business Suite, where we currently are, and where we are heading 40

85 A new Value Proposition for IT IT - from Stumbling Block to Enabler of Innovation Guarantee business continuity Enable business model flexibility SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 41 Chief IT Officer Drives landscape consolidation Frees resources for innovation Chief Process Innovation Officer Partner of LOBs Responsible for end-to-end process efficiency Business expectations Process change should take weeks or days Business users demand a competitive edge Focus investment on strategic innovation IT reality Hard-wired systems mean process change takes years Disparate IT systems result in siloed user views Best-of-breed silos eat up 70% of budget 41

86 SAP NetWeaver Focus Topics PROCESS FLEXIBILITY Guarantee Enable business business continuity model flexibility STANDARDS OPERATIONS EFFICIENCY USER PRODUCTIVITY SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 42 The enhanced role of IT as well as the support of SAP`s first BPP are the main drivers for new developments within SAP NetWeaver This results into the following focus topics: Process Flexibility Enabling IT to compose edge processes while protecting the core Operations Efficiency IT has to focus ressources on enabling business innovations through minimizing administration efforts related to the technical operation of the system landscape. User Productivity Drive process efficiency through user productivity. - - Extend the user groups that have access to Enterprise Information through adapting UIs to working environemnts - - Optimise system architecture to serve information needs of business experts (performance, ) 42

87 Summary SAP NetWeaver enables enterprise SOA for SAP s business applications is already a widely adopted platform paves the way for SAP s continued success enhancements in key technologies consistency across the platform SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 43 43

88 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 44 44

89 Duet SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 45 45

90 Duet Overview What is Duet? First joint product by SAP and Microsoft Exposes selected business scenarios from SAP ERP 2004 to an MS Office 2003 front-end environment Expands the existing SAP UI-possibilities with an additional User Interface Important for the Enterprise IT Strategy Push of information and processes to all users immediate & intuitive access to SAP applications Extension of Microsoft Office with SAP-Data and -Processes SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 46 Oberer Teil = Fischer Unterer Teil = Bruckner 46

91 Duet Duet brings together business productivity and enterprise processes to deliver unprecedented value to customers SAP applications delivered through Microsoft Office Radically simplified user experience SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 47 47

92 Drive Business Outcome Analysts quotes Duet changes the power dynamics within the software industry. Forrester Research, May 2005 If you ever felt that you have loads of data but no information, SAP has a cure. AMR Research, April 2005 Duet will make SAP business applicants and Microsoft office more attractive to their customers Gartner Research, May 2005 SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 48 48

93 Duet Roadmap Duet 1.0 Value Pack 1&2 Availability June 2006 Preview: December customers, 20 partners Scenarios Time Management Leave Management Budget Monitoring Organization Management Reports and Analytics Preconfigured reports Reporting Wizard SAP BW 3.5 reports Languages English SAP ERP 2004 Microsoft Office 2003 Planned Availability Q Scenarios Travel Management Sales Management Demand Planning Purchasing Management Additional languages French German Japanese Portuguese Spanish SAP ERP 2005 Microsoft Office 2007 (early 2007) SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 49 49

94 Business Process Context in Your UI of Choice The Power of SAP through Microsoft Office I Duet Mobile Forms Widgets Portal Voice RSS RSS Embedded Project Muse Dashboards RFID SAP GUI xapps SAP NetWeaver SAP CRM SAP ERP SAP SCM SAP SRM SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 50 50

95 Business Process Context in Your UI of Choice The Power of SAP through Microsoft Office II Duet Mobile Forms Widgets Portal Voice RSS RSS Embedded Project Muse Dashboards RFID SAP GUI Duet xapps SAP NetWeaver SAP CRM SAP ERP SAP SCM SAP SRM SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 51 51

96 Business Process Context in Your UI of Choice The Power of SAP through Microsoft Office III Duet Mobile Forms Widgets Portal Voice RSS RSS Embedded Project Muse Dashboards RFID SAP GUI Duet xapps Shared User Experience Services including: SAP NetWeaver - User roles & profiles - Interaction model - Navigation - Single Sign on SAP CRM SAP ERP SAP SCM SAP SRM - Contextualized processes - Resolution scripts SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 52 52

97 Duet.com ONE Face for customers Jointly developed by two industry leaders Customer support backed by SAP and Microsoft Innovative online community at Duet.com SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 53 53

98 Two Worlds: Collaboration and Business Applications Collaboration CRM PLM ERP SRM Collaboration Messaging Workflow Document Management SCM SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 54 54

99 Two Worlds: Collaboration and Business Applications PLM Collaboration CRM ERP Messaging Workflow Document Management SRM SCM SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 55 55

100 Disconnected Office & SAP Environments for End Users 80% of day spent in Microsoft Office only 20% in SAP applications Daily activities Business Benefits: 1) Online Budgeting 18% 34% Average World class Bringing together the best of the two worlds to increase productivity 2) Online Business Performance Reporting 11% 50% Average World class 3) Self Service Scenarios Enterprise systems for business processes Source: Hackett, Amadeus 15% 80% Average World class SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 56 56

101 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net PORTAL Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 57 57

102 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net ERP Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 58 58

103 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net SCM Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 59 59

104 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 60 60

105 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net HR Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 61 61

106 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 62 62

107 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net SCM Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 63 63

108 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net ERP Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 64 64

109 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 65 65

110 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 66 66

111 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 67 67

112 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 68 68

113 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP NetWeaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Home Grown/ ISV SAP Process Components Partner Subsidiary SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 69 69

114 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 70 70

115 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 71 71

116 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 72 72

117 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 73 73

118 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 74 74

119 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 75 75

120 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 76 76

121 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 77 77

122 PROCESS AND INFORMATION INTEGRATION Connecting the open platforms SAP Netweaver & Microsoft.net Composite Applications SAP NetWeaver Business Process Platform Enterprise Service Repository Duet Home Grown/ ISV SAP Process Components Partner Subsidiary Interoperability SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 78 78

123 SAP for Everyone Duet - seamless access to SAP through Microsoft Office SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 79 These solutions can be used by everyone in an organization everyday. The products you see on this slide represent the first wave of applications that are designed with the needs of the information worker in mind. Over time, SAP will enhance these existing applications but also expand the breadth of the portfolio to support more and more Information Workers needs. Let s look at what the anchor products are in the portfolio today: Duet In Preview today. GA in September. Puts the power of SAP information and processes into the hands of MS Office users. No training required. Instantly usable. Analytics In Ramp-Up Today. GA in Q3 of this year. Delivering actionable business insight to every worker, enabling enhanced decision making. Project Argo (Extended Enterprise Search) Trial version available via SDN today. GA in Provides a simple tool for getting information and answers out of SAP via a google-simple UI. SAP xapps for Mobile and Voice Multiple Mobile xapps available today include Mobile Sales and Mobile Time and Travel. Additional mobile applications coming in early Voice enabled workflow available by early 2007 as well. Self-service and Productivity xapps ESS & MSS well established in the market already as part of ERP. Productivity xapps coming in early 2007, providing simple solutions to common tasks. [If you have time, you can show the demo at this point] Let s take a look at a day in the life of a typical information worker and how these solutions can help improve productivity and decision making. 79

124 SAP for Everyone Duet - seamless access to SAP through Microsoft Office I Leave Management Reports & Analytics Sales Management SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 80 80

125 SAP for Everyone Duet - seamless access to SAP through Microsoft Office II Organization Management Travel Management Time Management SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 81 81

126 SAP for Everyone Duet - seamless access to SAP through Microsoft Office III Budget Monitoring Demand Planning Purchasing Management SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 82 82

127 SAP for Everyone Duet - seamless access to SAP through Microsoft Office Leave Management Reports & Analytics Sales Management Organization Management Travel Management Time Management Budget Monitoring Demand Planning Purchasing Management SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 83 These solutions can be used by everyone in an organization everyday. The products you see on this slide represent the first wave of applications that are designed with the needs of the information worker in mind. Over time, SAP will enhance these existing applications but also expand the breadth of the portfolio to support more and more Information Workers needs. Let s look at what the anchor products are in the portfolio today: Duet In Preview today. GA in September. Puts the power of SAP information and processes into the hands of MS Office users. No training required. Instantly usable. Analytics In Ramp-Up Today. GA in Q3 of this year. Delivering actionable business insight to every worker, enabling enhanced decision making. Project Argo (Extended Enterprise Search) Trial version available via SDN today. GA in Provides a simple tool for getting information and answers out of SAP via a google-simple UI. SAP xapps for Mobile and Voice Multiple Mobile xapps available today include Mobile Sales and Mobile Time and Travel. Additional mobile applications coming in early Voice enabled workflow available by early 2007 as well. Self-service and Productivity xapps ESS & MSS well established in the market already as part of ERP. 83 Productivity xapps coming in early 2007, providing simple solutions to common tasks.

128 Time Management Improve employee time reporting SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 84 Duet lets information workers use the Outlook calendar to report time which is recorded in the SAP ERP application, streamlining time entry while ensuring time-reporting compliance. Using Duet, service corporations, departments or any organizations where time and project accounting is important can benefit from personal calendars integrated with enterprise project, program management and accounting systems. Duet also provides contextual information in the task pane about how time has been allocated weekly balances, total time assigned to various projects and other related documents. Such information is useful to aid an employee in ensuring they do not exceed quotas for an individual project, or how they are tracking to targets. By taking advantage of the familiar and easy to navigate Office interface, Duet removes the redundancy of employees having to enter data multiple times and ensures an organization has the most up-to-date HR information. 84

129 Time Management Improve employee time reporting SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 85 85

130 Time Management Improve employee time reporting Employee Record time per project View time allocation Manage time & projects SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 86 86

131 Budget Monitoring Manage budgets with real time reports and alerts Manager Receive budget alerts Receive posting alerts Monitor budget reports Transfer budgets Request posting adjustments SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 87 Information workers often find it difficult to gain insight into their budget information. They frequently track budgets via separate spreadsheets and, lacking access to enterprise systems, either work with out-of-date printed reports or wait for the financial department to provide information from the enterprise resource planning (ERP) system. Without timely budget information, budget owners rely on outdated information resulting in poor decisions and possibly budget overruns. Duet budget monitoring provides a wealth of tools and information for tracking, analyzing, and acting on individual and group budgeting data all from within Microsoft Office. Users can receive reports from SAP ERP in their Outlook Inbox, enabling better budget monitoring through proactive alerts to time-critical information. Duet enables users to schedule regular reports or submit ad hoc report requests. All reports are available for offline use, yet users can still drill into the analytic and source data as well as distribute reports to other individuals. Budget owners can use Duet to set and receive alerts and notifications in their Outlook Inbox for example a notification that a budget limited as been exceeded. Once the alert has been received, the user can then request a budget transfer or a posting adjustment. 87

132 Leave Management Create and approve leave requests Employee Create leave request Monitor/Update status Manager Approve/Reject leave requests Manage team interdependencies SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 88 Using Duet, employees can add and process leave requests as calendar items that comply with the approval guidelines and enterprise-defined processes. Duet gives the enterprise an array of leave types to choose from, each reflecting the same definitions that exist in the human resource policies implemented in the SAP ERP application. All leave parameters, such as vacation allowances or sick days, can be configured to align with a company s individual policy. An employee requests a leave by selecting the desired time in the Outlook calendar. The leave management functionality then triggers a workflow that automates the approval process. For example, the workflow sends an alert to the employee s manager, along with links to contextual information both on the employee and relevant company policy, giving the manager all information necessary to make the decision. Once the request is approved, Duet automatically sends the response to the employee's Inbox, updates all related calendars and submits the data to the SAP ERP application. At each stage of an leave request or approval, the analytic and reporting capabilities of Duet provide the users with useful information such as their vacation balance, leave start and end dates, etc. For managers this is especially useful when contemplating a request approval as it enables them to make proper decisions on backup resources and employee allocation planning. 88

133 Travel Management Simplify travel planning and improve compliance Employee Submit travel request Cost Assignment for Trip Manager Approve/reject travel requests View travel and budget reports Approve/Reject travel expense SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 89 Duet travel management allows users to research and obtain approval for travel that complies with corporate policies. Using the Outlook interface users can submit the travel request to their manager. This request will make use of the company travel policies within SAP ERP to enforces compliance with corporate travel policies. In addition Duet will record the trip request details and approval history. This ensures a compliant business travel system. In addition, managers can access various reports and analytics to ensure they are effectively managing their travel budget. Duet also makes the travel cost information available to the SAP ERP application for expense reporting. 89

134 Purchasing Management Effectively manage purchase requests Buyer Place materials order View reports Purchasing Manager Approve/reject purchase requests View purchasing analytics and reports SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 90 Duet purchasing management provides users with the ability to use Microsoft Office to approve purchase requests, understand spending patterns, and analyze supplier performance contained in the SAP Supplier Relationship Management application in a rapid and cost-efficient manner. Duet enables shopping cart purchases to be routed directly to purchasing approver s Outlook Inbox in full compliance with purchasing business rules and policies. Duet provides associated purchasing analytics on purchasing history, budgets and spending patterns and available budgets. Approved purchasing requests are automatically updated in the back-end SRM system. 90

135 Duet Demand Planning Plan, adjust and manage demand plans via MS Excel Employee Retrieve and update SAP Demand Planning data through MS Excel Utilize full MS Excel capabilities for analysis and plan Offline demand planning support SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 91 Use Microsoft Excel to create planning sheets, as well as analyze and manage demand planning data from the SAP Supply Chain Management application. Duet demand planning is designed to enable the planner roles within a company. With Duet, planners can access the most recent demand data from SAP SCM. Planning information is populated into a Microsoft Excel spreadsheet and the planner can use the full Excel capabilities (side calculations, referencing other spreadsheets, sums, etc.) to analyze and prepare updated demand plans. All the planning can be done offline; if, for example, the planner is meeting with at a client or a vendor. Once the demand plan is complete, Duet will synchronize the new information with the SAP SCM application and the new plan is automatically available to be used for the next ordering and production cycle. 91

136 Empower your organization Information Workers drive business success Improve decisions Access to contextual business information Increase compliance Simplify employee access to corporate policies Save time and money Reduce employee training costs Accelerate user adoption Source: SAP Value Engineering Study SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 92 Duet is a solution from SAP and Microsoft that enables seamless access to SAP business processes and data via Microsoft Office, revolutionizing how information workers interact with enterprise applications. By using Duet, customers will: Increase corporate policy compliance Duet simplifies employees ability to interact with business processes which enables consistent and proper use of corporate policies. Improve decision-making Duet provides employees and managers with straightforward and timely access to relevant, contextual business information. Save time and money Duet increases the return on investment (ROI) of enterprise software implementations by reducing employee training costs and accelerating user adoption. 92

137 Agenda Overview Platform Building Composite Applications NetWeaver Duet Examples SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 93 93

138 7 Business Strategies What s Really Driving the Adoption of Enterprise SOA & BPP Product Innovation 50% reduction in time to market Mergers/Acquisitions Done in weeks! Process Innovation Grow 2x your industry average Cost Leadership IT cap-ex 10%, op-ex 5-7% Expand Channel/Market Leverage channel for 3 brands Compliance 5 Years ahead of mandate Build Relationships 360 degree partner interaction SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 94 Kimberly Clark One of the most familiar CP brands (#1 or #2 in 80 countries) challenge new product introduction Deployed NPDI composite + NW for integration with non SAP systems Cut by half the new product lifecyle Also saved with a shared service center: Annual savings of $70 million to $80 million by 2007 Valero largest refinery in America. Grew from 5 to 70B in 8 years Main strategy acquisitions they were able to reduce to weeks. The person responsible for the acquisitions is now CIO. BTW they replaced websphere with NetWeaver for strategic platform for development Whirlpool We all know whirpool.. Business required cost reduction Standards processes shared globally Leveraged the entire NetWeaver platform and achieved 4 conseq years of cost reduction 10% capital expense and 7% operational expense eon World s largest energy provider (controlled by investors) Compliance is a big business when trading energy (I wonder why?...) Leverage xapps for emissions management powered by NW NW used to automate exchange of information with trading partners - achieved compliance 5 years a ahead of time! Asian Paint Indian company. Main challenge recruiting! The opened up their HR through services (using NetWeaver) allowing recruiting companies to see vacancies and proactively submit candidates (vacancy to hire) From concept to implementation in 7 month much faster recruiting process! Profine Mid market in Germany manufacturing profiles for windows. Product innovation is not enough need to add services Developed an process for rolling out information about products to the channel (including catalogs, pricing) Then used the channel to distribute multiple 3 brands Enress+Hauser Manufacturer of gauges for machines needed to innovation on the process Used the platform to integrate end to end process and provide their customers with asset mgmt, inventory mgmt, maintenance Double the industry growth! 94

139 Burda Digital Generates new revenue streams via new business models! Successful publisher reduces costs, automates processes and offers business process outtasking to external publishers Employees, 239 magazines e.g. Focus, Elle, Playboy, Chip, Bunte, FullHouse, Anna, Instyle Cut costs by 20% to reach competitive pricing Automated processes eliminate high cost manual collaboration Modularized processes enable flexibility to offer out-tasking Flexible IT landscape shareable with 3rd party publishers Customer specific operational models for out-tasked process SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 95 Richard Speed: Turn ideas into products faster than competition by creating a process for innovation Shorten product innovation lifecycle by 50% Insight: Improve success rates and eliminate reinvention with portfolio management Leverage cost and skills data from existing IT systems Consolidate: Business processes from various countries into one shared service center Annual savings of $70 million to $80 million by ,000 employees, #1 or #2 brand in 80 countries Develop new opportunities, speed innovations to market, improve success rate, and reduce costs, RFID enablement for Wal-Mart Provide required organization, business process, and culture changes for innovation New product development process enabled by SAP xapps SAP NetWeaver as a platform for end to end process integration (including RFID) and connection to non SAP systems 95

140 Customer Adoption of Enterprise SOA IT Simplification Business Change Ecosystem Co-Innovation Emerging Scenarios Enterprise SOA Success Stories Are Growing SAP AG 2007, enterprise SOA Fundamentals What happens at SAP? / Dr. Christian Scherpe / 96 Develop lighthouses known names due to innovative business models simplification (like Colgate) 96

141 enterprise SOA Fundamentals The esoa conceptual Business Consulting Services 1

142 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 2 2

143 Impacted areas Enterprise SOA afftecs all levels of the strategy pyramid. Flexible deployment Model-driven architecture De-Construction of the value chain Process innovation Re-Use Strategy Organization/ Processes Systems In- / Outsourcing Consolidation / Specialization Integration / Collaboration Business-IT-Alignment Unified platform SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 3 3

144 Customer Quotes with regard to enterprise SOA There are many questions to answer the starting point for any innovation. Tell me what s different about Enterprise SOA so I can persuade the Line of Business people! I need demo systems and scenarios! How do I (the customer) make money with this? I need success stories, case studies, or at least a business case format to help me build the business case and educate our people! How do I balance Enterprise SOA progress against the constant need to refresh all other SAP programs? Source: Quotes from Customer Interviews and Workshops SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 4 4

145 Expectations & targets related to process- and architecture management Challenges of SOA for the business Service-oriented architecture is a forward-looking strategic IT-concept for flexibility and acceleration of business Major thought of SOA is to unbundle the complex business processes step-by-step into well-defined process steps (i.e. services) and their mapping into IT New business requirements can be realized fast and flexible via the composition of modular services, so being supported by the IT. Preconditions for a running SOA are organizational, functional and technical standards which have to be defined by each enterprise individually. SOA is not a product you can buy SOA has to be implemented step-by-step enterprise specific Customer Slide SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 5 5

146 Consulting Services beyond enterprise SOA Roadmap enterprise SOA Conceptual Services enterprise SOA Implementation Services enterprise SOA Value Assessment enterprise SOA Roadmap enterprise SOA Business Strategy enterprise SOA Business Process Innovation enterprise SOA Pulse Check enterprise SOA Organization & Governance enterprise SOA SOMAID enterprise SOA Reference Architecture enterprise SOA Implementation/ PoC IT Strategy Realization Service SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 6 6

147 The stage of development determines the appropriate consulting service following with the biggest impact Economic Impact Business-Focus Consolidation IT-Strategy Roadmap Business Strategy Business Process Innovation IT-Focus Company Enterprise SOA Maturity and Time SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 7 7

148 Enterprise SOA BC Services dependencies Combine enterprise SOA Services according to Customer needs ESOA Pulse Check ESOA Roadmap ESOA Pulse Check Define ESOArelevant Scenarios Create ESOA-based Architecture Create ESOA-based Roadmap ESOA Roadmap Delivery ESOA Value Assessment ESOA SOMAID ESOA Business Strategy Business Strategy and Requirements Analysis IT Strategy assessment Managed Evolution enterprise SOA Strategy Recommendation ESOA Organization/Governance SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 8 8

149 The enterprise SOA Adoption Program enables you to reap the benefits of SAP s knowledge and experience at all stages of your project. Discovery Evaluation Implementation Operations Grasp the Vision Build Your Own Roadmap Go Live Show the Value Strategic Consulting Services Solution Delivery Services Lifecycle Management Services Operations Services > Value Creation > Value Realization > Value Protection Strategic Consulting Services Solution Delivery Services Operations Services Lifecycle Management Services Business & IT Strategy Consulting Business and Value Assessment Solution & Architecture Planning Solution Design (Blueprinting) Solution Implementation Integration & Development Deployment Solution Optimization Evolution (Upgrade) Solution Landscape Optimization Quality Assurance/Risk Management Organizational Development and Change Program- & Project Management SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 9 (NB: Before focusing on the specific offering's) of interest to your customer, you should stress that we have a comprehensive range of services for SAP solutions, and experts in all these areas, at national, regional and global level. Customers deal directly with a recognized expert (CEM/global account manager). This expert has the diagnostics/analysis skills needed to identify customer requirements, and to match them to the expertise available within the SAP Consulting organization.) Strategic Consulting Services A Business Consulting team of consultants designs user-specific management concepts and helps to harmonize the strategy of a company and its business operations. To implement the strategy, these business-oriented consultants work in close collaboration with the SAP consultants specializing in solutions. These solution-oriented consultants collaborate with the customer to develop user-specific business solutions based on the my SAP Business Suite. Thanks to the consulting services provided by SAP Consulting, customers can significantly increase the value of their implementation projects. This is achieved through measures such as reviewing the relevant ant decision criteria, identifying project risks and defining implementation methods, all of which are geared towards increased benefits and minimized risks. Solution Delivery Services Finding new business opportunities in today s Internet-based global economy is one thing, but utilizing them is quite another. With their wealth of experience, acquired over the course of thousands of projects, SAP solution consultants are recognized experts not only in the implementation of strategies and system architecture, but also in system integration, implementation and customer-specific development. They can implement complex projects with a large number of participants quickly, reliably, and cost-effectively without any problems. Operations Services SAP embraces and supports the constant change and ongoing optimization that have become integral parts of today s business world. With the services describes above, SAP Consulting caters to the IT requirements of the customer s company but also takes business-related factors into account. SAP Consulting helps the customer to remain competitive by identifying areas that require fine-tuning. Relevant proposals are submitted when new functions become available, the technology on the market changes or new business requirements arise, but also when the total cost of ownership comes into consideration, system performance has to be improved, or additional system consolidation is required. Life-Cycle Management Services The services provided by SAP Consulting facilitate the optimal co-ordination of projects, programs and processes and in this way help companies to use their SAP solutions effectively. These services are available throughout the entire lifecycle of the project or program, to ensure the success of the complete SAP solution. The services include program and project management, organizational change management, knowledge management and quality and risk management. 9

150 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 10 10

151 Overall Framework: Enterprise SOA Adoption Program The Enterprise SOA Adoption Program is a common set of services and enablers to guide customers towards a flexible and cost-efficient service-oriented Architecture (Enterprise SOA). Discovery Evaluation Implementation Operations Grasp the Vision Build Your Own Roadmap Go Live Show the Value Enterprise SOA Roadmap Service from SAP Consulting Enterprise SOA Pulse Check Define ESOArelevant Scenarios Build ESOAbased Architecture Create ESOAbased Roadmap 4 Recommendations SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 11 Im Rahmen des enterprise SOA Adoption Programms der SAP biete SAP Consulting eine maßgeschneiderte enterprise SOA Roadmap Service an. Siehe Presse Erklärung SAP lanciert Enterprise Services Architecture Adoption Programm Walldorf, SAP hat heute ein spezielles Angebot aus Software und Dienstleistungen vorgestellt, um Kunden bei der Umsetzung serviceorientierter Architekturen (SOA) zu unterstützen. Das SAP Enterprise Services Architecture (enterprise SOA) Adoption Programm ermöglicht einen methodischen und schrittweisen Wandel von IT-Infrastrukturen in Richtung serviceorientierter Architekturen. Ohne den Betrieb und die Leistungsfähigkeit bestehender Systeme zu beeinträchtigen, sind Unternehmen so in der Lage, ihre IT-Landschaft schneller an veränderte Geschäfts- und Marktanforderungen anzupassen. Die neue Initiative hilft Unternehmen, ihre Flexibilität durch eine prozessorientierte Enterprise Services Architektur ihrer IT-Umgebung zu steigern. Das enterprise SOA-Konzept, das SAP 2003 vorgestellt hat, liefert Unternehmen das Fundament für eine bessere Abstimmung von Geschäfts- und IT-Prozessen. Das enterprise SOA Adoption Programm integriert die folgenden vier Projektphasen: Vermittlung des enterprise SOA-Konzeptes in speziellen Workshops sowie Seminare zum Thema Genterprise SOAmtbetriebskosten (Total Cost of Ownership / TCO) Entwicklung einer unternehmensspezifischen und bedarfsgerechten Vorgehensweise (Roadmap) für den Übergang auf enterprise SOA Implementierung und Unterstützung bei der Inbetriebnahme Wertschöpfung durch effiziente Umsetzung von Veränderungsprozessen unter Einsatz der Enterprise Services Architektur Für jede Projektphase liefert SAP den Kunden ein Portfolio aus bewährten Supportleistungen, das zahlreiche Tools, Vorlagen, Beispiele und Workshops umfasst, die speziell auf die Bedürfnisse der jeweiligen Organisation zugeschnitten sind. Dazu zählen neben den Seminaren zum enterprise SOA-Konzept und Betriebskosten weitere Workshops zur Erarbeitung der Roadmap sowie der Steuerung und Sicherheit einer enterprise SOA-basierten IT-Umgebung. SAP bietet das enterprise SOA Adoption Programm als Ergänzung zu den bereits verfügbaren Geschäftsanwendungen, die auf der Integrations- und Applikationsplattform SAP NetWeaver aufbauen. Verfügbar seit 2003, bildet SAP NetWeaver die Basis für den systematischen Übergang zu einer serviceorientierten Architektur, nicht nur für SAP-Kunden. Gleichzeitig liefert die Plattform eine Reihe von Technologien für gesteigerte Anwenderproduktivität, Analysen und Integration, die Unternehmen helfen, ihre Betriebskosten zu senken und effizienter auf veränderte Bedingungen zu reagieren. Die Kombination der SAP NetWeaver-Plattform mit dem enterprise SOA Adoption Programm liefert Firmen leistungsfähige Lösungen und Services, mit denen sie sofort den Übergang auf eine serviceorientierte Architektur planen und beginnen können. Diesen Prozess unterstützt SAP durch Geschäftsanwendungen, die eine schrittweise Migration ermöglichen und nicht den kompletten Ersatz vorhandener Systeme erfordern. Die SAP-Anwendungen basieren auf SAP NetWeaver und erlauben so den Einsatz von Services. Dabei nutzen sie gezielt die zunehmende Konvergenz von Applikationen und Integrationstechnologien in einer Applistructure. SAP NetWeaver wird kontinuierlich zu einer Business Process Plattform ausgebaut, die sowohl einsatzfertige Enterprise Services zur Verfügung stellt als auch die erforderliche Infrastruktur, um Services zu nutzen und zu steuern sowie zusammengesetzte Anwendungen (Composite Applications) zu entwickeln. Die Business Process Plattform liefert damit die Voraussetzung für hohe Flexibilität in Geschäftsprozessen und hilft Unternehmen gleichzeitig, einen höheren Mehrwert aus ihren IT- Investitionen zu ziehen. Initiativen zur Einführung serviceorientierter Architekturen können eine grundlegende Veränderung in der Gestaltung, dem Betrieb und dem Management von IT- Landschaften auslösen, erläutert Sandra Rogers, Director für SOA und Web Services Research bei IDC. Ausbildung, Koordination und Unterstützung auf allen Ebenen sind entscheidend für Unternehmen, um Geschäfts- und IT-Prozesse zu optimieren. Das Verständnis von internen Abhängigkeiten und Prozessschritten ist ein wesentliches Erfolgskriterium auf dem Weg zu einer umfassenden serviceorientierten Architektur. Vorteile für Partnerfirmen SAP-Partner profitieren ebenfalls von dem neuen enterprise SOA Adoption Programm, da in diesem Umfeld neue Geschäftspotenziale entstehen. Das Programm bietet Partnern ein Planungsgerüst und die Werkzeuge für einen schrittweisen Ausbau der IT-Umgebungen ihrer SAP-Kunden, und ermöglicht so das Angebot zusätzlicher Serviceleistungen für Kerngeschäftsprozesse. Über das SAP Ecosystem erhalten Partner außerdem kontinuierlich Informationen zu Best Practices und Roadmaps, um IT- Strategien und -Projekte wirksam umsetzen zu können. Das enterprise SOA Adoption Programm ergänzt bestehende Beratungsangebote um ein Portfolio strukturierter Dienstleistungen, von denen insbesondere Systemintegratoren bei der schnellen Umsetzung von IT-Strategien profitieren. Unsere Kunden und Partner suchen verstärkt nach praktikablen Wegen, um IT-Landschaften flexibler zu gestalten und damit die Voraussetzung für Geschäftsprozessinnovation zu schaffen, erläutert Shai Agassi, Vorstandsmitglied der SAP. Das enterprise SOA Adoption Programm hilft Unternehmen, auf Basis von SAP NetWeaver eine flexible, serviceorientierte Architektur zu etablieren. So unterstützen wir Firmen bei der Gestaltung extrem anpassungsfähiger IT-Infrastrukturen, die schnelle Veränderungen und Erweiterungen von Geschäftsprozessen ermöglichen. Dies eröffnet Unternehmen ein größeres Potenzial für Differenzierung und Wertschöpfung. 11

152 Pulse Check as Initial Step for the Roadmap Service Define ESOArelevant Scenarios Build ESOA-based ESOA Pulse Check Architecture Create ESOA-based Roadmap 4 Recommendation 0.1) Prepare Business & IT Strategy Business Processes Business Pain Points Organization Charts Project Portfolio IT Landscape 0.2) Explain NetWeaver and ESOA ESOA Roadmap process Pulse Check Service 0.3) Analyze Strategy to ESOA Mapping ESOA Maturity Ongoing consulting services 1.1 Optional: Complete Pulse Check findings 1.2 ESOA potential process identification Collection Filter Assessment 1.3 ESOA services candidates identification detailed process analysis Criteria assessment & definition 1.4 Assessed scenarios 2.1 Map business processes and services to IT- architecture SAP standard offer usage of existing services/composite applications identify gaps 3rd party applications 2.2 Fill gaps partner solutions development - services - composite Apps (CAF, Guided Procedures) 2.3 To-be architecture 3.1 Map SAP strategy and upgrade plan against architecture current version Sources 3.2 Assemble customerspecific upgrade plan input from above customer situation technical constraints 3.3 ESOA Roadmap - business processes - applications -platform 4.1 Risk assessment and statement 4.2 Management summary Recommendation next steps 0.4) Pulse Check Management Summary SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 12 12

153 Enterprise SOA Pulse Check Steps 0.1 Prepare 0.2 Explain Collection of necessary data for enterprise SOA pulse check with support of questionnaires and templates: Business & IT Strategy; Business processes; Organizational charts; Project portfolio; IT Landscape Presentation of the Enterprise SOA and NetWeaver Overview from SAP Presentation of enterprise SOA pulse check service incl. planning First validation of collected information from the customer Extraction of core pain points based on the strategic pyramid model 0.3 Analyse 0.4 Summary Mapping Business & IT Strategy towards enterprise SOA compliance Presentation enterprise SOA Maturity model Joint Evaluation of company situation based on the maturity model and development of the next steps in enterprise SOA Management Summary presentation with the results from the analyze phase Prioritized enterprise SOA areas of improvement based on Maturity model assessment Recommendation of next steps incl. high level project plan SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 13 13

154 The enterprise SOA Maturity Framework The enterprise SOA Maturity assessment is based on the IT-Strategy framework Our understanding Business Strategy Business-IT Alignment IT Strategy IT Governance IT Architecture IT Sourcing IT Excellence IT Organization Description of Topics Business-IT Alignment: Indicators that show to what extend the customer s IT delivers against the business strategy IT Governance: Rules and regulations for managing IT in order to align IT to business goals, to allocate IT resources responsibly and to minimize risks IT Architecture: Application architecture designed on the basis of the enterprise business model / architecture; technical architecture (soft-, hardware, networks) as an operating environment for all processes IT Sourcing: Design of sourcing strategies for e.g. application and infrastructure management; organizational redesign of IT e.g. as a shared service center IT Excellence: Excellent implementation of governance concepts, IT architectures, requirements engineering, process models for software development, IT operations IT Organization: Organizational structure of IT departments; human resource management e.g. skill management Source: IT Strategy Framework by SAP Business Consulting SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 14 14

155 Enterprise SOA Maturity Analysis 6 Dimensions of enterprise SOA Maturity Level Business-IT Alignment enterprise SOA Governance Architecture IT Sourcing IT Excellence IT Organization 4 enterprise SOA Based KPIs 1 enterprise SOA Compliant Aligned with Domains Continuous Supplier Improvement Certified enterprise SOA Center of Excellence Certified enterprise SOA Center of Excellence 3 Managed ES 2 Portfolio Project Portfolios Management Advanced Service Reuse Managed enterprise SOA Center of Excellence enterprise SOA Center of Excellence 2 Defined Processes Decision Boards enterprise SOA Standards Defined Defined Service Management Enterprise Architecture Management 1 Structured Exchange Cross Silo Consideration Enterprise Services Reactive Standards Integrating Silos Requirement Allocation 0 Team Play Silo Responsibility Web Services Ad hoc Silos Provision of Functions 1 Key Performance Indicators 2 Enterprise Services SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 15 15

156 Different levels of esoa Maturity a.) Level 4 3 Business-IT Alignment ESOA Based KPIs 1 Managed ES 2 Portfolio ESOA Governance ESOA Compliant Project Portfolios Management Architecture Aligned with Domains Advanced Service Reuse IT Sourcing Continuous Supplier Improvement Managed IT Excellence Certified ESOA Center of Excellence ESOA Center of Excellence IT Organization Certified ESOA Center of Excellence ESOA Center of Excellence Option: Business Strategy 2 Defined Processes Decision Boards ESOA Standards Defined Defined Service Management Enterprise Architecture Management 1 Structured Exchange Cross Silo Consideration Enterprise Services Reactive Standards Integrating Silos Requirement Allocation 0 Team Play Silo Responsibility Web Services Ad hoc Silos Provision of Functions b.) Level 4 3 Business-IT Alignment ESOA Based KPIs 1 Managed ES 2 Portfolio ESOA Governance ESOA Compliant Project Portfolios Management Architecture Aligned with Domains Advanced Service Reuse IT Sourcing Continuous Supplier Improvement Managed IT Excellence Certified ESOA Center of Excellence ESOA Center of Excellence IT Organization Certified ESOA Center of Excellence ESOA Center of Excellence Option: Road Map 2 Defined Processes Decision Boards ESOA Standards Defined Defined Service Management Enterprise Architecture Management 1 Structured Exchange Cross Silo Consideration Enterprise Services Reactive Standards Integrating Silos Requirement Allocation 0 Team Play Silo Responsibility Web Services Ad hoc Silos Provision of Functions c.) Level Business-IT Alignment ESOA Based KPIs 1 Managed ES 2 Portfolio Defined Processes ESOA Governance ESOA Compliant Project Portfolios Management Decision Boards Architecture Aligned with Domains Advanced Service Reuse ESOA Standards IT Sourcing Continuous Supplier Improvement Managed Defined IT Excellence Certified ESOA Center of Excellence ESOA Center of Excellence Defined Service Management IT Organization Certified ESOA Center of Excellence ESOA Center of Excellence Enterprise Architecture Management Option: Organizational Planning & Governance 1 Structured Exchange Cross Silo Consideration Enterprise Services Reactive Standards Integrating Silos Requirement Allocation 0 Team Play Silo Responsibility Web Services Ad hoc Silos Provision of Functions SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 16 16

157 Enterprise SOA Pulse Check Benefits & Deliverables Customer Business Need Understanding benefits of enterprise SOA Quick assessment and improvement proposal of enterprise SOA maturity Proposal for roadmap towards enterprise SOA services Pulse Check Benefits Analysis of customer s business and IT strategy Identification of dependencies between IT and business strategy Identification of possible enterprise SOA target business processes Mapping of Business strategy towards enterprise SOA compliance Evaluation of enterprise SOA maturity of organization Proposal for enterprise SOA services projects to realize quick wins Deliverables Mapping of Business & IT strategy towards enterprise SOA compliance Assesment of enterprise SOA maturity and high level planning for projects to reach higher level of enterprise SOA maturity Mapping of customer status into strategic pyramid model Management summary presentation SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 17 Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 17

158 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 18 18

159 Pulse Check as Initial Step for the Roadmap Service Define ESOArelevant Scenarios Build ESOA-based ESOA Pulse Check Architecture Create ESOA-based Roadmap 4 Recommendation 0.1) Prepare Business & IT Strategy Business Processes Business Pain Points Organization Charts Project Portfolio IT Landscape 0.2) Explain NetWeaver and ESOA ESOA Roadmap process Pulse Check Service 0.3) Analyze Strategy to ESOA Mapping ESOA Maturity 1.1 Optional: Complete Pulse Check findings 1.2 ESOA potential process identification Collection Filter Assessment 1.3 ESOA services candidates identification detailed process analysis Criteria assessment & definition 1.4 Assessed scenarios 2.1 Map business processes and services to IT- architecture SAP standard offer usage of existing services/composite applications identify gaps 3rd party applications 2.2 Fill gaps partner solutions development - services - composite Apps (CAF, Guided Procedures) 2.3 To-be architecture 3.1 Map SAP strategy and upgrade plan against architecture current version Sources 3.2 Assemble customerspecific upgrade plan input from above customer situation technical constraints 3.3 ESOA Roadmap - business processes - applications -platform 4.1 Risk assessment and statement 4.2 Management summary Recommendation next steps Ongoing consulting services 0.4) Pulse Check Management Summary SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 19 19

160 Enterprise SOA Roadmap Reference SAP consultants are very knowledgeable about their products and speak with authority on all the relevant issues. This road map will show the way to an IT and business process architecture that will enable us to respond more quickly to business needs and strengthen the partnership between our business divisions and the IT community. Pat Lauver, Head of Competence Center Performance Materials, Application Services, Degussa AG SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 20 esoa Roadmap Developing a esoa Roadmap for evolution of business processes Approach Development of a roadmap to improve quality and flexibility of the order-to-cash process based on Enterprise Services Architecture Evolution of the heterogeneous IT infrastructure used by Degussa s disparate business units to provide more efficiency while still maintaining the flexibility to sustain innovation Results Enterprise Services Architecture blueprint based on mysap ERP, SAP Exchange Infrastructure and SAP Master Data Management Enterprise Services Architecture Adoption Program Midterm road map designed for order-to-cash and management reporting processes Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 20

161 The enterprise SOA Roadmap Customer Business Need Guidelines for next steps to esoa Identification of esoa potentials for customer business Higher flexibility and adaptability to enable business changes Roadmap Benefits Customer identifies esoa Potentials for a sample process in the company esoa services candidates are identified esoa Potentials based on these identified services are prioritized to derive necessary actions Activities are transferred to a roadmap containing major milestones, supporting projects, timeline, priorities, recommendations, risks etc. Deliverables Mapping of esoa to customers business and IT strategy Identification of potential enterprise services Potential Analysis for identified services High-level esoa architectural design esoa Roadmap development SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 21 Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 21

162 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 22 22

163 enterprise SOA Business Strategy Objective Before you start implementing enterprise SOA, an aligned businessdriven enterprise SOA strategy has to be developed considering both Business & IT in a structured design process Customer Benefits Definition of an enterprise SOA / SOA strategy based on a joint strategic requirements definition of Business and IT enterprise SOA Maturity analysis Identification of enterprise SOA Potentials and enterprise SOA implementation projects Definition of organizational enterprise SOA requirements Definition of enterprise SOA Business Technology prerequisites Business & IT agree on strategic requirements enterprise SOA Implementation projects enterprise SOA Strategy SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 23 23

164 enterprise SOA Business Strategy Overview Three phases - Analysis, Development and Recommendation - lead to the customer's enterprise SOA strategy Strategy & Requirement Analysis Joint Strategic Requirements Definition Business Processes & Pain Points IT Strategy & Pain Points Executed & Planned Projects enterprise SOA Strategy Development enterprise SOA / SOA Maturity enterprise SOA Potentials Domain Model for enterprise SOA enterprise SOA Strategy Guidelines enterprise SOA Organizational Implications enterprise SOA Strategy Recommendation enterprise SOA Transformation Plan Initial Change Management Plan enterprise SOA Risk Assessment Management Summary Joint Strategic Requirements Definition enterprise SOA Potentials Final Deliverables enterprise SOA Strategy Document SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 24 24

165 Enterprise SOA Business Strategy Customer Business Need Identify esoa Potentials for the company s strategy Highlight the strategic business and IT value of enterprise SOA Develop high level transformation plan esoa Business Strategy Benefits Summary of Business-, IT objectives and Process Pain points, IT Pain Points and prioritized action plan Analysis of customer s Enterprise SOA Maturity Identification of esoa Potentials and esoa implementation projects Definition of organizational esoa requirements Definition of Transformation Plan Deliverables Joint strategic requirements definition (Business & IT) esoa Benefit Scenarios based on business objectives and pain points, prioritized areas to start e.g. implementation projects esoa Strategy Document (Organizational Guidelines, Strategic Framework, etc.) SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 25 Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 25

166 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 26 26

167 What we deliver to our customers enterprise SOA Value Assessment Support strategic goals with an value driven enterprise SOA transformation plan Take business and IT requirements into account Market proven methodology provides SAP and industry best-practices for the customer transfers Know-how regarding enterprise SOA ensures a leverage of enterprise SOA investments with a value driven roadmap planning builds a clear understanding of what is enterprise SOA delivering maximizes the strength and minimizes the weaknesses combines business requirements with IT capabilities SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 27 27

168 Methodology Scoping Analysis Design Evaluation Recommendation Scope definition Business and IT strategy Sub-process design Sub-process evaluation Time line definition Business Process Architecture Process design Process evaluation Calculation IT Architecture Platform design Platform evaluation Management summary Planned and running projects Evaluation consolidation Evaluation guidelines SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 28 28

169 enterprise SOA Value Model The underlying principle is divided into those four dimensions Dimension Description Processes APQC is the basis for the area of processes Shareholder value categories Built on our experiences out of other projects, we have defined different major categories for the shareholder value enterprise SOA characteristics enterprise SOA characteristics are the different potential driver Layer model The layer model helps to distinguish between different areas of value SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 29 29

170 Enterprise SOA Value Assessment Customer Business Need Identification of a high level ROI for a (planned) Enterprise SOA scenario esoa Value Assessment Benefits Assessment of Business / IT-Strategy, organization and processes Development of future scenarios for the processes in scope Analysis of costs, cost savings, benefits, ROI and NPR High level schedule Management Summary Deliverables Analysis of Service/Process Model Analysis of enterprise SOA Scenario Investment Overview Assessment result and recommendation SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 30 Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 30

171 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 31 31

172 SAP Organizational Planning and Governance for Enterprise SOA Objective of the service is to align the customer s organization and governance processes and structure to its enterprise SOA strategy. Enterprise SOA Center of Excellence Enterprise SOAaligned skill portfolio Transformation program Enterprise SOAaligned processes inc. governance Change 1. CM* starting point (CM* analysis) 2. Definition of CM* goals 3. Definition management of interest groups 4. plan Ensure/safeguard the realization of expected benefits of an enterprise SOA strategy. SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 32 32

173 Enterprise SOA Organization and Governance Framework... is based on standard architecture frameworks and provides the complete set of best practices ready to use from SAP Consulting Structures Processes People Organization Guidelines Strategic Alignment Business Process Management Enterprise Service Management Enterprise Service Controlling Compentencies Personnel Development Boards/ decision making Standards for enterprise services Alignment of business and IT objectives Domains Service portfolio management KPIs Identification and allocation of HR Career paths Tasks and roles Standards for service architecture Requirements analysis management Business process landscape Service architecture management Benefit tracking Skill profiles (To-Be, As-Is) Performance management Organizational structure Standards for applications Project portfolio management Application management Budget and cost allocation Training Budget ownership Standards for IT infrastruct. IT infrastruct. management Risk management Knowledge management Service support Compliance Use the SAP Consulting framework to accelerate the design of your enterprise SOA-aligned organization and governance. SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 33 33

174 SAP Organizational Planning and Governance for Enterprise SOA is a structured project approach based on SAP Consulting best practices. Analyze Design Transform Improve Conduct enterprise SOA planning and best-practices workshop Design enterprise SOA organizational structures Deploy organizational structures/processes based on road map Design and implement continuous improvement process Analyze strategies and derive imperatives Design enterprise SOA processes Implement boards/ governance processes based on road map Perform assessment and analyze gaps Design personnel development Conduct personnel development activities Initiate stakeholder management Design organizational change management activities Conduct change management activities Define scope of To-Be enterprise SOA Organization and Governance Create transformation road map Concept Decision Transition SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 34 34

175 Conceptual Phase Delivers Basis for a Decision to align the organization and governance with an enterprise SOA strategy. Analyze Design Conduct enterprise SOA planning and best-practices workshop Design enterprise SOA organizational structures Use of SAP s best practice framework Analyze strategies and derive imperatives Perform assessment and analyze gaps Design enterprise SOA processes Design personnel development Align with customer specific strategies and situation Decision Initiate stakeholder management Define scope of To-Be enterprise SOA Organization and Governance Design organizational change management activities Create transformation road map Define customer specific, prioritized transformation plan SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 35 This approach includes cost estimates for the transform phase but not the overall business case to justify an Enterprise SOA strategy. 35

176 SAP Organizational Planning and Governance for Enterprise SOA Customer Business Need New and improved skills are required to fulfill the new tasks in the future with SOA. A distinct organization is required to pave the path towards SOA. New and improved governance is required with enterprise SOA aligned processes and structures Benefits People are prepared to manage the building of an enterprise SOA! Processes and organizational structures are aligned to enterprise SOA! Governance ensures the realization of the enterprise SOA benefit potentials! Ensure / safeguard the realization of expected benefits from an enterprise SOA strategy through the necessary organizational adjustments. Deliverables Customer specific design for enterprise SOA aligned organizational structures, processes and roles including skill definitions and trainings plan Change Management plan and transformation roadmap (incl. time & cost estimations) Summarized into a proposal for an executive board decision SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 36 36

177 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 37 37

178 enterprise SOA: concept for flexibility With enterprise SOA process steps can be easily decoupled and re-composed. MODU- LARIZATION SPECIALI-ZATION AND CONSOLIDATION COMPOSITION AND COLLABORATION Step 1 (today) Step 2 (short-term) Step 3 (mid-term) Process chains are broken into enterprise services (depending on business criteria) Similar process steps get consolidated. Differentiating steps are enhanced. Process chains are flexibly re-arranged and re-configured based on business needs. SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 38 38

179 Mutate / Cross / Breed Three Ways to Differentiation Innovation is the way to competitive advantages. Innovation Standardization Innovation compose Standardization Innovation Standardization consolidate scale invent Invention Commoditization Invention Commoditization Invention Commoditization Mutate Cross Breed develop new customers and markets complete, upgrade and expand processes Perfect processes through evolutionary optimization SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 39 39

180 enterprise SOA Business Process Innovation Overview Four phases lead to innovation of customer's business processes Scoping Current Situation Innovation Recommendation Scoping Explain enterprise SOA to Business Definition of Action Areas Analysis of AS-IS Processes & Pain Points Enterprise Competency Model Process Design Realization Alternatives Transformation Plan Management Summary Business Impact and High Level Realization Recommendation Critical Success Factors SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 40 40

181 Enterprise Competencies Strategic success is enabled by finding new solutions in an assimilated environment. Enterprise Competencies can help to provide these solutions. Enterprise Competency special knowledge, skill or an own, better way to do activities that gives an entity an advantage in doing its business Industry experts continuously identify competencies within their industry Competencies Database Enterprise Competencies allow instant process innovation by transferring knowledge from others. Scoping Current Situation Innovation Recommendation Set up project Discuss relevant project area with senior management Identify relevant business areas to be integrated in project work Integrate affected business areas Explain enterprise SOA and enterprise SOA advantages in an innovation context to business Detail action areas based on project scoping Analyze As-Is processes and organization (where necessary) Use competency model to identify capabilities to be transferred to the customer organization Design To-Be processes based on transferable capabilities Identify and define Enterprise Services to implement IT support Calculate benefits Create handbooks and presentations Define realization plan Describe realization organization Agreed project scope Transparency As Is processes/ organization SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 41 Innovative processes defined/ benefits calculated Realization described 41

182 The esoa BPI approach consists of four main phases Scoping Current Situation Innovation Recommendation Set up project Discuss relevant project area with senior management Identify relevant business areas to be integrated in project work Organize kick-off meeting, integrate affected business areas Explain esoa and esoa advantages in an innovation context to business Detail action areas based on project scoping Analyse As Is processes and organization, where necessary Use competency model to identify capabilities to be transferred to the customer organization Design To Be processes based on transferable capabilities Identify and define Enterprise Services to implement IT support Identify critical success factors Calculate benefits Create handbooks and presentations Define realization plan Describe realization organization Agreed project scope Transparency As Is processes/ organization Innovative processes defined/ benefits calculated Realization described SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 42 42

183 The integration of relevant business areas is key to esoa BPI project success Relevant business departments/ innovation areas CEO Business Department 1 Business Department n IT Department Involvement of business Interaction of business and IT Involvement of IT Works on the identification of action areas an pain points Helps identify possible innovation area through the SAP BC competency model Helps to define To Be processes to implement innovations Major stakeholder in innovation implementation esoa helps to align Business and IT goals Alignment of IT and business terminology concerning BPM and BPI Giving IT the role of an accepted partner for business discussing about processes Facilitates and supports the identification of action areas Supports the definition of To Be processes related to possible IT support Helps to define services to support process innovations Uses project results to develop esoa strategy SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 43 43

184 Central element of the esoa BPI approach is the SAP BC competency model R&D Competency model I Process model: Standardized processes II Competencies Core processes/ Support processes Purchasing HR Realized as relational database Standard can be changed Explanation General The competency model consists of tow parts, a standard process model and assigned capabilities Standard process model The standardized, hierarchical process model bases on the widely used APQC standard model Standardization guarantees reusability and inter-industry-comparability Fourth level of process hierarchy can be used to insert non standard process steps, if necessary Competencies A competency is special knowledge which gives a firm, group etc. an advantage in doing its business working in competitive environments Every competency is assigned to one or more processes Capabilities can be identified on each process level, higher process levels inherit lower level capabilities The competency model filled by SAP BC industry experts using a prove methodology to identify company specific or industry capabilities SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 44 44

185 Prozess Sc hwachstellen Ansatzpunkte Team Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess 1 Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen (nicht Toleranzketten, sondern Prüfung von Systemen) Prozess Schwachstellen Fehlende Ableitung von Serienprüfmerkmalen Ansatzpunkte aus Team Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess 1 Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess 1 (nicht Toler anzketten, sondern Prüfung von Unsystematische Ableitung Prüfplanung (Systematik und Verantwortlichkeiten) Systemen) Keine durchgängige CAQ Nutzung Fehlende Ableitung von Serienprüfmerkmalen aus Kein ganzheitliche Prüfplanung, Mehrarbeit Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Lenkung PEP Ressortübergreifende Q-Lenkung (GQx) ohne Reorganisation ressortübergreifende Q- 2 Umsetzungsautorität Lenkung (Kompetenzen, Verantwortung) Unklare Zuständigkeiten in Baureihe für Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess 1 Unsystematische Ableitung Prüfplanung Erreichung Q-Ziele (Systematik und Verantwortlichkeiten) Keine durc hgängige CAQ Nutzung keine systematische Reifegradlenkung in P, F, V Kein ganzheitliche Prüfplanung, Mehrarbeit Unklare Verantwortung für Sicherstellung Q-Ziele Q-Lenkung PEP Q-Lenkung Ressortübergreifende KKP Q-Lenkung (GQx) keine ohne ressortübergreifende Reorganisation Q-Lenkung, ressortübergreifende Q- Reorganisation 2 ressortübergreifende Q- 2 Umsetzungsautorität methodische Konsistenz Lenkung nur (Kompetenzen, teilweise Verantwortung) Lenkung (Kompetenzen, Verantwortung) Unklare Zuständigkeiten in Baureihe für QLP P-intern ohne Weisungsbefugnis, unklare Erreichung Q-Ziele Schnittstelle LK Ebene 1 und 2 keine systematische Reifegradlenkung in P, F, V Unklare Verantwortung für Sicherstellung Q-Ziele Q-Lenkung KKP keine ressortübergreifende Q-Lenkung, Reorganisation ressortübergreifende Q- 2 methodische Konsistenz nur teilweise Lenkung (Kompetenzen, Verantwortung) QLP P-intern ohne Weisungsbefugnis, unklare Schnittstelle LK Ebene 1 und 2 The implementation of identified capabilities relies on proven SAP BC BPM methodology Competency model SAP BC proven BPM methodology Solution concepts Increasing detail solution/ organization building To Be processes/ organization R&D Purchasing HR Development of a solution concept Definition of processes and organizational structure Capabilities relating to the customers action areas are identified with the help of the competency model and clearly described identification methods To be able to transfer capabilities from different companies or industries to the customers organization simple process transformation is not possible Detailed processes of benchmarking partners have to be modified and adapted to the customer situation To do this the level of abstraction is reduced, detailed processes are described as solution concepts A high level process landscape can be developed base on the solution concepts described The high level landscape is detailed and To Be processes are described in detail Process parameters and KPIs can be described to monitor future process performance Completely new processes have to be assigned to the organizational structure Process owners with changed responsibilities have to be assigned to new organizational units Free capacity can be reassigned SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 45 45

186 Prozess Sc hwachstellen Ansatzpunkte Team Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess 1 Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen (nicht Toleranzketten, sondern Prüfung von Systemen) Prozess Schwachstellen Fehlende Ableitung von Serienprüfmerkmalen Ansatzpunkte aus Team Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess 1 Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess 1 (nicht Toler anzketten, sondern Prüfung von Unsystematische Ableitung Prüfplanung (Systematik und Verantwortlichkeiten) Systemen) Keine durchgängige CAQ Nutzung Fehlende Ableitung von Serienprüfmerkmalen Kein ganzheitliche aus Prüfplanung, Mehrarbeit Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Lenkung PEP Ressortübergreifende Q-Lenkung (GQx) ohne Reorganisation ressortübergreifende Q- 2 Umsetzungsautorität Lenkung (Kompetenzen, Verantwortung) Unklare Zuständigkeiten in Baureihe für Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess 1 Unsystematische Ableitung Prüfplanung Erreichung Q-Ziele (Systematik und Verantwortlichkeiten) Keine durc hgängige CAQ Nutzung keine systematische Reifegradlenkung in P, F, V Kein ganzheitliche Prüfplanung, Mehrarbeit Unklare Verantwortung für Sicherstellung Q-Ziele Q-Lenkung PEP Q-Lenkung Ressortübergreifende KKP Q-Lenkung (GQx) keine ohne ressortübergreifende Reorganisation Q-Lenkung, ressortübergreifende Q- Reorganisation 2 ressortübergreifende Q- 2 Umsetzungsautorität methodische Konsistenz Lenkung nur (Kompetenzen, teilweise Verantwortung) Lenkung (Kompetenzen, Verantwortung) Unklare Zuständigkeiten in Baureihe für QLP P-intern ohne Weisungsbefugnis, unklare Erreichung Q-Ziele Schnittstelle LK Ebene 1 und 2 keine systematische Reifegradlenkung in P, F, V Unklare Verantwortung für Sicherstellung Q-Ziele Q-Lenkung KKP keine ressortübergreifende Q-Lenkung, Reorganisation ressortübergreifende Q- 2 methodische Konsistenz nur teilweise Lenkung (Kompetenzen, Verantwortung) QLP P-intern ohne Weisungsbefugnis, unklare Schnittstelle LK Ebene 1 und 2 Process Design Describe To-Be processes to translate identified competencies for customer requirements SAP proven BPM methodology Competency model Solution concepts Increasing detail solution/ organization building To-Be processes/ organization R&D Purchasing HR Discussion of reference company processes Development of solution concepts to transfer processes to the customer organization Detailed process design Identification of service candidates Discussion and description of necessary adaptations of organizational structure Detailed description in enabler Realization Alternatives SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 46 46

187 Transformation Plan Goal of the implementation phase is to define steps, responsibilities, and times for implementation of service results in the customer organization Transformation Plan I Implementation preparation 1 Assessment of solution concepts in detail Business Area 1 Okt Decision to implement solution concepts To be defined Okt Detailed timeframe All Business Areas Okt. 05 II Detail solution concepts 1 Check Interdependencies between Sales Area Okt. 05 General Remarks Transformation plans are developed for each process bucket and each service identified A transformation plan is fully described by the defined measures Clearly assigned responsibilities Definition of end dates for all measures Roles enterprise SOA expert has to be included to define necessary measures and timeframe for architecture design Technical consultant: define necessary measures and timeframe for solution implementation Business consultant: define necessary measures for business process implementation and organizational implications SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 47 47

188 Value Proposition enterprise SOA BPI advances an enterprise SOA Strategy to perceptible strategic and operational benefits INNOVATION Knowledge & skills no competitor has Adapt solutions and methods from other industries / companies BC Methodology Systematic approach Related tools and accelerators Continuous advancement Competencies Data Base Industry Expertise enterprise SOA Knowledge Methodology for Process Innovation BPM BPM Process Competency Implementation Skills Customer Benefits Leverage BC Knowledge for new processes Improve processes through outside in approach Adapt to new requirements quickly by applying process lead user knowledge SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 48 48

189 Enterprise SOA Business Process Innovation Business Process Innovation takes optimization one step further by fully leveraging Enterprise SOA characteristics. Modularization allows not only to streamline and standardize processes but also to comprise radical new elements and therefore innovate much faster. Business Process Innovation Benefits Leverage SAP s industry knowledge for new processes. Innovate processes through a systematic approach. Adapt to new requirements quickly by applying process lead user knowledge. Deliverables Identification of services and business processes relevant for Enterprise SOA Defined realization plan Description of the realization organization SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 49 Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation 49

190 Agenda The extended consulting services Portfolio Pulse Check Roadmap Business Strategy Value Assessment Organization & Governance Business Process Innovation Enterprise SOA SOMAID SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 50 50

191 Architectural Models Architecture Management Business Reality Strategic Level IT-driven Business Innovations Business Requirements Standards Architectural Models Principle Guidelines Avoid negative Feedback! Business Process Model Business Object Model Organizational Model Business Level Logical Level Physical Level Improve Transformation! Strategic Business Objectives Operational Requirements Operational Business Objectives Technical Possibilities IT Reality SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 51 51

192 enterprise SOA in the Context of Architecture Management Business Reality IT-driven Business Innovations Business Requirements Business Process Model Business Object Model Organizational Model Enterprise Service Operational Requirements Technical Possibilities IT Reality SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 52 52

193 Approach Enterprise Service Modeling Scoping Business Modeling Service Modeling Implementation Design Feasibility & Evaluation Description of selected business area(s) Gathering business models (e.g. event, process, entity, state) Business component design Mapping to IT landscape (applications, modules etc.) Technical feasibility assessment Documentation of pain points and potential improvements Analysis of business models Business component and user interaction analysis Design of service consumption GAP analysis Collection and documentation of (future) functional requirements Definition or refinement of business models [optional] Derivation of the logical service model (service definition) Creating a detailed implementation design Cost estimation Scope & Objectives Business Models Sanity and benefit check Model alignment Risk evaluation Service Model Implementation Design Documentation Feasibility & Evaluation Documentation SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 53 53

194 Help Desk Clerk ESO Incident-- and Problem Management PO Box Application received Business Partner Management OP OP OP OP Enterprise Service Business Component OP OP OP OP Enterprise Service Business Component Infrastruktur Planung Instandhaltung OP OP OP OP Enterprise Service Business Component Bestandsverwaltung File Application Data ESO ESO ESO ESO ESO ESO ESO Application Data Access Service Statistics Postal Service Management Enterprise - PO Box Application Processing Data ok V Check Data XOR Data Contact Customer and Incomplete Complete Data XOR BackOffice Post Office Query Customer Phone# Service Owner Working List Contact Customer and Complete Data Agreement Agreement Agreement Agreement Initialization Creation Retirement Lifecycle Check ZIP Repository Document Management Service Infrastruktur ESO ESO Query Customer Data ESO Customer Catalog Trassen Planung Agreement Management Kunden Lieferanten Investoren Konzern OP OP OP OP Enterprise Service Business Component Infrastruktur Entwicklung OP OP OP OP Enterprise Service Business Component OP OP OP OP Enterprise Service Business Component OP OP OP OP Enterprise Service Business Component Trassen Vertrieb Fahrplanmanagement Data Completed Processing Aborted Leit- und Sicherungstechnik Determine Letter Amount ESO ESO ESO Amount Monitoring Customer Delivery Monitor Letter OP OP OP OP Enterprise Service Business Component OP OP OP OP Enterprise Service Business Component Betrieb Adapter Adapter Enterprise Service Model and Methodology Business Reality Logical SOA Model Implementation Model IT Reality Business Processes Business Reality 1 Scoping 2 Business Modeling Business Objects B 3 Composition Definition Service Modeling Service Defintion Service Implementation Service Enablement A 4 Implementation Design Bus. Partner Enterprise Services Repository Legacy/ 3rd Party Analytics Composites Technology Composition Platform 5 Appl. Platform SAP Sanity Objects, Engines, and Components check Bus. Process Platform Roles & Organization Enterprise Services Managed Web Service Integration Server SOAP Mapping Routing Integration Processes XI Protocol or SOAP SOAP Basic Web Service 3rd Party App IDocs RFCs SAP System Proxy Proxy Runtime Local Integration Engine Web Services Framework SAP Web AS 6.40 SAP AG 2006, enterprise SOA Fundamentals Training / The BC services / 54 54