Selim Burduroğlu Enterprise Architect Friday, December 2, 2005

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1 SOA and ERP 0

2 Selim Burduroğlu Enterprise Architect Friday, December 2,

3 Agenda ERP Market Trends and Evolution What is Service Oriented Architecture (SOA)? What makes up an SOA? Definitions and Brief Description SOA Stages for ERP Project Fusion & Oracle Fusion Middleware Evolution of Application Architecture Benefits of SOA Bottom Line 2

4 ERP Market trends Continuing vendor consolidation Fewer large new deals, more sales to existing customers Emphasis on recurring revenue Maintenance, hosting, subscription licensing Focus on midmarket and industries Growing importance of SOA platforms in technology buying decisions Simplicity and usability (UI, tools, reporting) Lifecycle Management (implementation, upgrades) 3

5 Evolution According to The increasing availability of prebuilt horizontal and vertical business processes designed to be used with application integration middleware is a trend that will have significant impact on the software market The increased usage of prebuilt business processes is resulting in a blurring of the boundary between application software and infrastructure middleware and creating a new class of software that could be referred to as applistructure software. The Emergence of Applistructure Ken Vollmer March 18, 2003

6 Evolution According to ERP systems became a universe of their own Integration was never a key strength of ERP system ERP vendors are stuck in own development history Users don t like revolutionary changes to the applications world Web Services and SOA (Service Oriented Architecture) are the new driving forces for architectures Source: ERP&SOA A Contradiction? Meta Group Interactive Briefing Paris 29 April 2004 Ruediger Spies (VP Enterprise Application Strategies) 5

7 Evolution Summary Applications Applistructure Infrastructure the emphasis in the war for domination in ERP systems is moving away from business functionality and toward a battle about platforms. Stewart McKie of Ventana Research March 14, 2005

8 Applistructure A successful applistructure will comprise five elements:!continuously decrease the operational cost of information technology!permit a fast and flexible reconfiguration of business processes!deliver secure and reliable service levels!permit upgrades and product enhancements on the fly!allow different technology providers as well as custom/legacy code to plug and play seamlessly Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications? Monday, January 03, 2005 Erik Keller 7

9 What is SOA? 8

10 SOA 9 BPEL XML UDDI WSDL WSDL WSDL WSDL SOAP WS-S

11 Concrete Estimates call (WSDL) UDDI Web Service XML XML SOAP Web Service Web Service Web Service BPEL Process General Contractor Web Service Web Service X Web Service BPEL Business Process Execution Language XML Extensible Markup Language UDDI Universal Description, Discovery and Integration Service WSDL Web Services Descriptive Language SOAP Simple Object Access Protocol 10

12 Definitions A service is a unit of discrete business functionality. A service oriented architecture provides a standards based platform that allows services to be provided, discovered, and consumed by each other, to facilitate the creation of a orchestrated business process. A service oriented application is a set of application functionality that fully leverages the power of a service oriented architecture. 11

13 SOA stages for ERP Integration of heterogeneous applications across multiple platforms Time frame: Now Modular components within suites Time frame: Two to three years Market transformation to standards-based architectures Time frame: End of decade 12

14 The Future of Applications Leveraging Infrastructure to lower cost of obtaining and using new application functionality(composite App) Applistructure Based on an Application Infrastructure Service-Oriented Architecture 13

15 Common Architecture Today Client 1 FBT PAY G NTS TRDS Customs NTS A/c Data. Penalty RRE IPS Integrated A/C Refunds 1 RBA Def Excise Payments CR ECI ADD AWA ELS CCD Compliance Staff Business IVR PKI CDCC DDDR CWMS GCI Staff Phone WOC TASS Ref material Bus. Intel BOA BEP Client BANK Staff Remote Staff TAX AGENTS Call Centres 14

16 What is SOA Really About? 40 % of IT Budgets spent on Integration Activities 65 % of ERP Application Implementation Costs spent on Integration 15

17 Integration vs. Interoperability Integration Two (or more) applications exchange data Interoperability Two (or more) applications are able to exchange information (if they want to). It is About Reusability! 16

18 Project Fusion JDE PSFT EBS Oracle Information Age Applications Oracle Fusion Middleware Time Project Fusion A evolving process or journey Initiative to build SOA-based Information Age Applications and the Fusion Middleware required to enable them Project Fusion 17

19 Oracle Fusion Middleware Family of integrated, standardsbased, customer-proven products Enables greater agility, better decisions, and reduced cost & risk today Integration Orchestration Security Development Portal Collaboration Management Fusion Middleware IS that infrastructure. And is available now! 18

20 Evolution of Application Architecture Applications Infrastructure 19

21 and more applications Leads to Multiple user interfaces Fragmented processes Silos of data Applications Infrastructure Issues Inconsistent lookand-feel Inflexible, hard to change Poor information access, integrity 20

22 Evolution of the Platform Emergence of Orchestration Business Process Orchestration The Onboarding Process Middleware Middleware Platform solution based on industry standards Single vendor sourced Holistic business process management Applications Infrastructure Promise of Middleware Agility & interoperability Reduces TCO Adaptable BPs Core HR erecruit Badging Security 21

23 Evolution of the Platform Emergence of Orchestration Business Process Orchestration Applications??? The Onboarding Process Middleware However today s applications... Still manage their own workflow Need to retrofit industry standards Don t natively leverage the Middleware capabilities Infrastructure Core HR erecruit Badging Security 22

24 Evolution of the Applications Emergence of Services Oriented Architecture (SOA) Business Process Orchestration Applications SOA Services The Onboarding Process Middleware SOA Services SOA Applications Standards based Business Process Management Common language shared by applications Plug and play functionality Infrastructure Core HR erecruit Badging Security 23

25 Fusion Middleware: The Enabler Orchestration + Infrastructure Business Process Orchestration Applications Infrastructure SOA Services JDeveloper Business Process Oracle Fusion Middleware Middleware Data Hubs Oracle Portal BPEL / BAM SOA Services XML Publisher Identity Mgmt Integration Oracle Fusion Middleware Family of integrated, standards based, components Based on existing, mature technology products Over time adding the best design ideas from ebusiness Suite PeopleSoft Enterprise JD Edwards EnterpriseOne 24

26 Application Server Leader Risky Bets Contenders Strong Performers Leaders Strong Market p resen ce Oracle BEASystems SAP IBM Microso ft Current offering Novell Sun Microsystems Weak Weak Strategy Strong Source: Forrester Wave : Application Server Platforms Q

27 Applistructure Leader Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications AMR Research Report, 1/3/05

28 Oracle s SOA Provides Integration Repository Provides single definition of all interfaces and catalogs all published APIs Business Activity Monitoring Allows business users to set performance targets, monitor exceptions Business Process Execution Language using GUI and Enterprise Services, business analysts can adjust business processes 27

29 Benefits of SOA Simplified Integration Connect disparate applications quickly by creating standardized services Increase Reuse Applications components are easily used saving development time and increasing application reliability Easier Maintainability Changes/Version are not all-or-nothing Greater Agility Rapid deployment of business processes or modifications of existing ones in response to market changes Reduced Risk Adaptable processes and single security model for accessing services enables ongoing regulatory compliance in a timely, cost-effective manner 28

30 Applistructure A successful applistructure will comprise five elements:!continuously decrease the operational cost of information technology!permit a fast and flexible reconfiguration of business processes!deliver secure and reliable service levels!permit upgrades and product enhancements on the fly!allow different technology providers as well as custom/legacy code to plug and play seamlessly Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications? Monday, January 03, 2005 Erik Keller 29

31 Why Oracle? Insight Agility - Lowest cost Proven technology to implement SOA Richest set of applications services Industry leader in grid computing Delivers accurate information faster, for smarter decisions With end-to-end security 30

32 The Bottom Line Web Services is an enabler of Service Oriented Applications not the answer Service Oriented Applications should be transparent to end users and increase productivity Oracle is committed to delivering the both the parts and the solution to meet your business needs 31

33 Q&A

34 Thank You!

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