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Walking With Dinos Hawthorn Merlino v3

Walking With Dinos Hawthorn Merlino v3

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07/18/2010

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Walking with Dinosaurs

Innovating above Packaged Applications (ERP, CRM, HRMS)

Richard J. Merlino Business Process & Technology Integration Manager, UTC/Pratt & Whitney Andrew Hawthorn Sr. Manager, AquaLogic BPM, BEA Systems

Fact: Dinosaurs are among us

 ERP and other apps are:

• • • • •

Strategic Essential to core processes Complicated Inflexible Unavoidable

 Companies must find ways to bridge people, processes, and information to:
organizations, geographies and systems

• Operate end-to-end business processes spanning multiple • Collaborate more effectively internally and externally • React quickly and cost-effectively to change

Industry Analysts Agree

“Laggards will find that one morning their competitors who use the exact same ERP software are suddenly zooming ahead, shortening lead times, introducing new products faster, and reacting faster to changing market conditions. IT groups that hope to respond to the business faster need to start making decisions, setting a strategy, and building the skills to apply SOA and BPM as a competitive weapon.”

Source: AMR Research Report – SOA and BPM for Enterprise Applications: A Dose of Reality, May 2007

Innovation and Continuous Improvements at Lower TCO
IT Budget
Business Value Delivered by IT
Target quadrant
Custom Apps

Servicebased Apps

Composite Apps

Lowered TCO, but less differentiated capabilities

Packaged Apps

Differentiated capabilities built on standardized platforms & services (lower TCO)

$27 Ne w $73 Maintai n

 Demand exceeds supply  Must-do projects swallow substantial proportion  Infrastructure built piecemeal  Heterogeneous technologies  Legacy, bespoke and customized applications

Source: Accenture 2007

Reduction in TCO
Source: Boston Consulting Group

Business-IT Alignment
Continuous improvement implementations

Source: BEA Customer Perspective

What is SAP Recommending to its R/3 Install Base?
Create Sales Order Analyze Stock Procurement Manager
• Analysis of inventory status • Revenue impact of backlog • Initiate corrective action

Request Quotation Procurement Manager
• Delivery calls against contracts • Order handling • Delivery

Place PO Procurement Manager

Confirm Order Procurement Manager

Receive Goods Warehouse Manager

se o R l g O i r a nec S r o ti n U

Sales Person

• Enter customer sales order

I B

I B

- no N P AS

I B

P AS

P AS

P AS

P AS

P AS

I B

ssec ou B sse n sr P i not acl pp A s nii tp ricse D o i

SD

MM, WM

MM

MM, FI, CO
Request/Response • Purchase orders to selected vendors

MM, PP, SD

MM, WM, FI, CO

Request/Response • Supplier list for product ID • Supplier RFQ to multiple vendors

Response • PO Confirmation • Goods receipt is displayed to inventory service enabled via manager interactive form

es r p e n E i r t sec vr e S i

• Portal • B2B integration

• Portal • Bus. Intelligence

Additional Enabling Infrastructure outside of Core R/3

• • • •

Portal Bus. intelligence Data services B2B integration

• Portal

• Portal • B2B integration

• Portal • Data services • B2B integration

y go onhce T l se tili ba pa C i

Core SAP R/3

P AS

Traditional Enterprise Applications Fall Short

13 15

My software applications allow me to quickly adapt to most customer requirements My software applications offer little or no flexibility to meet individual customer service 21 requirements My software applications force me to put limits on services I can offer My software applications force me to employ some manual processes to meet customer requirements

*Source: Aberdeen 51 Survey of 125 enterprises, “Aligning IT to Business Processes: How BPM is Complementing ERP and Custom Applications”, Aberdeen Group, May 2007.

Application Platforms: Stuck in the 90s
While new technologies have emerged … … application platforms have not kept up
Web 2.0 Social Computing Virtualization

 Existing platforms are designed for coding paradigms, not rapid assembly and change  Unable to use new business models, e.g. pay-per-use, SaaS  New technologies are disjoint solutions to point problems  Testing and deployment are not integrated  Governance and management are “after the fact” bolt-ons  Real-time, event-driven applications are not supported

Business Process Management Service Oriented Architecture Real-Time Events

Collaboration

A Simplified Platform for Dynamic Business Applications

Enabling Faster Time to Market Through Convergence & Simplification
Integrated Assembly, Testing & Deployment
Web 2.0 Collaboration Portal Business Process & Rules Management Services & Event Management Virtualization Fabric

BEA Differentiators:
 Social computing and user-composed composite applications  BPM and SOA assets at the core for change-ready applications  Unified compose, test & deploy experience  Virtualization for scale-out and performance  Integrated governance, management and administration  Multi-tenant

Governance, Management & Administration

Billing via configurable “units of use”  Per user  Per transaction  Per resource (e.g. CPU)  Customer defined

Process Examples Benefiting from Such Innovations
Operational Excellence Customer Intimacy Product & Service Leadership

Lean / Six Sigma

Demand Sensing & Shaping

Innovation Networks

Demand – Supply Matching (S&OP, ATP)

Personalized Customer Experience

Accelerating Product Launch

Real-time Tracking of Physical Events

Customer Centric Fulfilment

Product Portfolio Management

Shared Services / Finance / HR Excellence

Proactive Service

Market Driven, Brand Excellence

Convergence of Technologies Creates New Opportunities

Business User Enterprise Web 2.0 for theParticipation

Business Process Management and IT Alignment Infrastructure Agility Service-Oriented Architecture Responsiveness and Dynamic Foundation
Events Real-Time Reliability Virtualization

Business Agility

The Vision

The Liquid Enterprise™
Enterprise Social Computing
Knowledge Management Multi-Channel Commerce Customer Service Web 2.0

Portals

Collaboration

Information Management

Business Process Management
Modeling and Simulation Deployment and Execution Business Activity Management Real-time Process Optimization

Applications Enterprise Foundation
Core Application Platform

Packaged Real Time and Events

Custom

Software-as-a-Service Extreme Transaction Processing

Converged Telecom

Virtualization

Governance

Business Services

Data Services

Management & Security

SOA Infrastructure

Service Enablement

Service Integration

Richard J. Merlino
Business Process & Technology Integration Manager UTC/Pratt & Whitney
Pratt & Whitney Innovates Over and Above SAP

United Technologies Corporation (UTC) Pratt & Whitney (PW) Corporate Overview
Sikorsky Fire & Security Hamilton Sundstrand Carrier
Commercial Engines Military Engines

Pratt & Whitney

P&W Canada

Otis
Power Systems P&W Rocketdyne

UTC 2007 Revenue $54.8B

PW 2007 Revenue $12.1B

Pratt & Whitney (PW)

Business Landscape
• • • • • • • • • • Highly matrixed industry – up to 50 touches at major customers Growing Competition – existing ones are getting more aggressive, new entrants Challenging Assets – build, manage and maintain very costly Complex Assets – some of most technically advanced in world Extremely Secure – DoD, FAA, customers, suppliers, internal Process Centric – safety requires rigorous processes Collaboration Essential – sharing across entire value chain Personal – build strong relationships, 20 year LTAs are common Customize – businesses choose how to work Extensive IT Landscape – hundreds of systems store/manage data

IT Landscape
HR Finance IT Eng Ops

Workflow Technologies

Interface

Portal Interface Technologies Interface Interface

Interface

App

App App App Application Integration Technologies

App

Data

Data Data

Sharing Technologies Data Data

Data

Challenges within IT
• Changes in business process
– IT systems are not able to keep up with the business

• Greater awareness of IT within the business
– Programming a common skill within businesses – Higher expectations placed on IT to deliver solutions

• Resource Constraints
– Funding for projects is competitive – Finding appropriate resources to work initiatives can be difficult

Application-Centric Mgmt

Transformational IT
IT Eng Ops

Process-Centric Legal

Customer
Process Centric Service Oriented Solution
Workflow Technologies Portal Technologies

Sales

HR

Application Integration Technologies Data Sharing Technologies •Traditional ERP systems will become the transactional horsepower behind business •BPM will help to move value streams forward and eliminate the “White Space” •Users will interact with ERP systems via secondary user interfaces

Purch

Finance

Innovating Over SAP # 1: Vendor Collaboration
AquaLogic Collaboration for Innovation, Agility and Optimization
Opportunities & Challenges

An efficient method to share SAP data with vendors with
– Minimal human intervention – Secure – Quick set up

Solution Powered by BEA

• • •

BEA AquaLogic Collaboration handles notification, security, & storage .txt file is exported via SAP job to collaboration web folder Minimal development time and training

Innovating Over SAP # 2: Web CATS System
AquaLogic User Interaction for Innovation, Agility and Optimization
Opportunities & Challenges

Integration of SAP Time & Attendance into internal portal
– Minimize use of custom connections – Improved user interface

Solution Powered by BEA

• •

BEA AquaLogic User Interaction fully interacts with SAP via BAPIs Single sign on through LDAP integration

Innovating Over SAP # 3 – Infocenters
AquaLogic User Interaction for Innovation, Agility and Optimization

Management Dashboards

Becomes reality!
Overdue Receivables

CUSTOMER INFO -CENTER

Contacts

Engine Events

Engine Fleet

Work Stops Customer Help Desk

Customer composites

Sold Overdue

16 Copyright United Technologies, Pratt & Whitney Proprietary

Innovating Over SAP # 4 – eBusiness Portal
AquaLogic User Interaction for Innovation, Agility and Optimization

Collaboration across enterprise firewalls for engine overhaul

1000s of process steps and approvals for certification are logged.

Customer has complete view of real time overhaul status

Communities give sophisticated overview of all engines in the “aggregate”

Innovating Over SAP # 5 – Value Stream Integration
AquaLogic BPM for Innovation, Agility and Optimization

• Line Maintenance – Order to Cash • Quality Process Clinic Management • Help Center Routing • Overhaul Records Coordination • Employee Awards • Engine “events” Management • Engine Wash • Shop Processes

Innovations Driving Substantial Benefits Across the landscape…
• Customer satisfaction – over 100% increase in satisfaction score • Employee satisfaction – search and information access • Internal business process savings – ESN project room collaboration = headcount reduction • External (Customer/Supplier/Partner) business process savings – inventory portlet • Immediate “hard costs” savings – inherent security & user framework • Cost avoidance savings – engine performance monitoring – extensive savings per event • New revenue opportunities – marketing portlet

In Summary
• Back end integration is a great way to drive IT transformation:
– ERP ‘manages the enterprise’ – Portal + Collaboration gives the user a rich flexible interface – BPM acts as the “messaging bus” for process steps – SOA platform makes it work efficiently and cost effectively

• Integration level should be determined based on the goal of the project
– Data aggregation from multiple sources – Improved user interface – Removal of an existing application

Why BEA?
• BEA offers a flexible and complete solution to drive innovation, agility and optimization with Portals/Collaboration, BPM and SOA • BEA’s solution is independent of hardware and enterprise applications and can seamlessly coexists in the current IT landscape • BEA’s willingness to team where required

Tangible next steps

Discover how a BEA can tran sform your organization
BEA Discovery Workshop

1.

Benchmark your Organiza tion
Take the BEA S OA & Assessments BPM .

2.

Try It.
Download toda ya a proof of con nd pilot cept

3.

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