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Web Services and

Enterprise Computing

Investigate how organizations can create and

consume Web services to improve

communications and productivity.
Many companies are waiting until standards

mature and security and QoS concerns are


Web Services and Corporate Software

Instead of designing software from scratch,

register to locate existing Web services

incorporate them into applications

Web services decrease the complexity and cost of integrating

Connect them enable direct communication and information

Not ready for every applications

Security and QoS problems

Not recommended for systems that handle a large number of

processing SOAP messages can impede performance.

Shared with trusted partners first

Web Services and Enterprise

Application Integration (EAI)
Enterprise Application Integration (EAI)

Infrastructures that link multiple applications and

databases to share information and business processes
Uses middleware (software that links separate
applications) to connect a company's many applications
A custom interface is built to link each separate application
to the EAI system

Web application resides on the Company's Web-

application server
Needed inventory data is maintained in a legacy

Types of EAI
Data integration
The most common form of EAI
Involves linking databases to applications or
other databases
Business-process integration & Method


Involve connecting applications so that they

can communicate and access each other's


Drawbacks to traditional EAI

Most EAI solutions aim to integrate an entire


This type of comprehensive integration improves

overall communication
It makes EAI complex and expensive

Middleware products are usually costly,

Most companies must hire specialized integration

consultants to implement EAI solutions

Companies usually cannot reuse EAI interfaces for
other purposes, such as integrating with partners

Use Web Services in EAI

Web services' open standards enable organizations to

create reusable interfaces to applications

Any application theoretically communicate with any other
application via SOAP messages

traditional EAI links only specific applications

More secured.
Less complex to develop and maintain than are most

EAI systems

integration projects require less time and money

Toolkits for designing and deploying Web services are
significantly less expensive than most EAI solutions are

Use Web Services in EAI

Provide flexibility
Companies can start by connecting two or three
then integrate additional applications into the system as
Allow companies to break applications into separate


makes integration service more efficient

Not all integration issues can be solved using Web


For example, Web services might not provide the levels

of security, reliability, performance and nptime required
by some organizations

Web Services in EAI

Electronic Data Interchange


Virtual Private Network ( VPN )

A technology that encapsulates, encrypts, and
transmits data over the Internet
A secure tunnel is created over the VPN
connecting the two intranets
Confirms the identity of the remote user who is
attempting to access information.

E-business and Enterprise

Resource Planning Systems

Definition of e-business
Exchange of goods and services by means of

the Internet or other computer networks

Same basic principles as traditional
Buyers and sellers transact business over
networked computers
Networks could be: proprietary, electronic
fund transfer networks between companies,
internal or others

Benefits and costs of e-business


Marketing: geographic
market expansion, hardto-reach markets, more
targeted marketing
Reduced operating
costs: marketing,
transaction processing
Streamlined operations
Quicker, easier product
and service delivery


Financial costs
associated with setting
up networks
Need to develop
different, better internal
control systems
Potential for customer
Severe consequences
for technology


Forms of e-business


Business to consumer


Business to business

Dell Computers

Government to consumer

Internal Revenue Service

Government to business


Consumer to consumer


Business Model

Focus on B2B applications over the Internet

evolve from well-established brick-and-mortar companies
seeking process improvement

Characterized by

focus on an organizations core competencies

process aggregation oriented business model
process-driven; also technology-driven

Some success factors

create and integrate the right processes

agile applications
ability to integrate applications and data
right organizational structure
Means of overcoming political obstacles

e-Business Functionalities & Examples

Virtual Marketplace (Dell)

Catalog, buying tools, integration, and payment option, ..

Procurement & Resource Management


Request for info, request for proposal, requisitioning,

purchase orders, payment, and supplier management

Extended Value Chain (FedEx)

Demand and supply planning, logistics, and production


Customer Relationship Management (HP)

Self-service, solution-center, personalization, and account

management functionalities








Structure of ERP systems

Based on relational database technology
Modular organization

Customer relationship management

Financial management
Human resource management
Supply chain management


ERP system implementations

Common causes of failure
Poor leadership from top management
Automating existing redundant or non-valueadded processes in the new system
Unrealistic expectations
Poor project management
Inadequate education and training
Trying to maintain the status quo


ERP system implementations

Common causes of failure (continued)
A bad match between ERP software and
organizational processes
Inaccurate data in the system
ERP implementation is viewed as an IT
Significant technical difficulties


ERP system implementations

Necessary conditions for success
Obtain organizational commitment
Communicate strategic goals clearly
View ERP as an enterprise-wide venture
Select a compatible ERP system
Resolve multi-site issues
Ensure data accuracy


Application service providers

Third party entity that deploys, hosts and

manages access to a packaged application

Local / regional
Vertical market
Volume business


Application service providers

Human resources
Accounting cycle
Income tax returns
Personal financial

ASP benefits
Increased flexibility
Element of a disaster
recovery plan
ASP risks

Service interruptions
Inability to pay
ongoing fees


Internet and E-Business

Internet = global collection of

computer networks linked together

World Wide Web = (WWW) a

collection of central servers for

accessing information on the internet


Internet and E-Business

E-business = any business that takes

place by digital processes over a

computer network rather than in
physical space
E-commerce = business exchanges

that occur electronically


Internet Communication Systems

Intranet = an internal communications system

that uses the technology and standards of

the Internet but is accessible only to people
within the organization
Extranet = external communicati0ns system

that uses the Internet and is shared by two or

more organizations


E-Business Strategies
Strategy = Market Expansion


Internet division allows a company to

establish direct links to customers and
expand into new markets

Organization can provide access

around the clock to a worldwide
market and reach new customers

ERP and Internet

E-Business Models
Electronic storefronts: Internet-located resources

for displaying goods and services for sale and for

conducting related sales events.
Internet auction markets: Internet base for
companies to put products up for bid or for buyers to
put proposed purchases up for bid.
Internet market exchanges: bring together a variety
of suppliers in a given industry with one or more
buyers in the same industry to provide Internet
commerce through organized markets.

Communication Networks in eBusiness

Client/server technology
Local area networks (LANs)
Wide area networks (WANs)
Web browsers

Business through internet

Adv of web based ERP

In this Internet era, ERP is giving way to a much broader value

proposition that effectively fuses different forms of business

applications and services.
Back-office and front-office applications within an enterprise will
come together, along with applications and services for valuechain collaboration between business partners.
Web-based ERP provides real-time information about finance,
order management, purchase, inventory, employee
management, e-commerce and much more.

With web-based solution, accelerate business

cycles, improve productivity and reliability, and

provide higher levels of service to customers,
suppliers and partners.
A web-based ERP solution significantly reduces
overhead expenses.
There is no software to install, no hardware to
purchase and maintain, and no up-gradation
requiring complex re-implementation over time.
focus on running your business, while our web-based
ERP solution takes care of business plans.

Case Study 1: British Telecom

A UK-based telecommunications company
Provides local and long-distance phone service,

mobile communications service and Internet

More than 28 million exchange lines and 7
million mobile customers on three continents
BT relies heavily on the ability to communicate
across different media and technologies

Case Study 1: British Telecom

In December 200l, BT adopted Web services to

improve the company's technological infrastructure

Incorporates a diverse collection of technologies and

platform including mainframes, CORBA, J2EE
limited interoperability between departments
translation between platforms slowed BT's network

BT wanted its systems to be flexible and

interoperable, but did not want to upgrade to an

entirely new platform

Case Study 1: British Telecom

BT created a solution that uses XML and

SOAP messages to communicate across

Do not have to replace its original

Web services can be incorporate into existing


Case Study 2:

One of the most popular department stores in the

United States
Also an e-commerce leader
Communication among Nordstrom's applications was
limited due to the company's many disparate
computing platforms
December 2001, Nordstrom hired IONA Technologies

to improve communication between Nordstrom's ecommerce site and its other applications

Case Study 2:

Original system uses Microsoft software

the company's enterprise resource planning (ERP)
applications run on Hewlett-Packard UNIX servers
Inventory data resides on IBM mainframes

Nordstrom use Web services technology to ensure

interoperable transactions among systems

Nordstrom's CTO, Paul Onnen, observed that Web services are

more cost-effective because one Web service can be accessed

by multiple applications
"The key with Web services is that you only have to build
[them] a single time."

Case Study 2:

Nordstrom is using Web services to connect its e-

commerce site to its gift-card-management and

cosmetics-replenishment applications

allow customers to redeem Nordstrom gift cards

through the Web site

Improve Nordstrom's cosmetics-inventory system

A Web service automatically updates the cosmeticsreplenishment application to reflect the changed
The company plans to use Web services to create a

universal inventory system that connects each store'

s separate inventory applications

Corporate Portals
Corporate portals
Browser-based applications that offer single-access
points to information or applications aggregated from
disparate sources
Improve communication with customers, partners and
To facilitate business processes and ensure

maximum security

Corporate portals should be customized on the basis of

users' identities, positions or job titles
Portals will employ Web services to supply users with
personalized information

Corporate Portals
Web services also can link portals with disparate applications

and data sources

connect its portal to a business partner's application using a
different programming platform


Application modules that encapsulate specific, real-time

information from a portal and present that information to a
For portal users to access only content that pertains to a
particular topic
proprietary programming components

pose potential interoperability problems

Use Web services technologies to perform portlet functions

Knowledge Management
content management

rules for creating, storing and presenting content

information accessible and useful to users

Managing portal information

Without content management, portals can become
"information dumps" that are difficult to navigate
When content is managed effectively, portals become

significant knowledge-management tools

Knowledge Management
Several major software vendors are including

portal applications in their overall Web

services strategies
BEA Systems
Microsofts SharePoint Porral Server with
its .NET platform
Sun Microsystems, ONE Portal Server for its
Sun ONE Web services initiative

Case Study 3: Standard and Poor's

A division of the McGraw-Hill Companies
Provides financial information, industry analysis and

data on fiscal performance and trends for the

financial-services industry
managers and business executives require the most

up-to-date financial reporting possible

S&P has experimented with new ways of delivering its

information and services

including the use of Web services technology

Case Study 3: Standard and Poor's

Initially, customers had to purchase access to all 60

services at once
However. the company now is packaging each Web
service separately

customers pick and choose the specific applications to which

they subscribe

Using the Sun ONE platform

S&P created each application as a modular J2EE


packaged in a SOAP envelope and described using WSDL

Web services also allow S&P to attract new customers

and expand into new markets without significantly

increasing the company's infrastructure.

Web Services & CustomerRelationship Management (CRM)

Customer-Relationship Management (CRM)
Encompasses every aspect of interaction
between an organization and its customers

Including sales, service and support.

Help companies better understand their

Identify profitable customers
Resolve customers ' concerns
Target customers with appropriate promotions
Automate customer-service tasks.

CRM's main goals

Enable a employees to access a complete

customer profile from a single application

CRM system must facilitate communication

among various corporate applications and

Many partner organizations want to integrate

their CRM data

Requires CRM systems to communicate remotely

with applications in different platforms

In a typical CRM implementation, integration

represents 30 to 50 percent of the project's

total cost
Web services provide less expensive method
of integrating customer data
Companies can more easily integrate their
own customer data with that of partners

allows organizations to develop more

complete customer profiles

Communicate directly with customers

E.g., access billing and order-status data

Customers query database through their web
Automate tasks,

Such as sending information regarding sales and

promotions to basis of their preferences and
purchasing histories

Web Services and B2B

B2B Web services

implementations extend data and application integration

beyond corporate firewalls,
enabling companies to share data and business processes
with partners, suppliers, distributors and corporate clients

Deploying inter-organizational Web services can raise

significant concerns regarding security and Quality of Service

Using Web services

Partners can gain access to each other's applications and

Improves collaboration and strengthens relationships
between businesses

Supply-Chain Management
Using Web services to connect every member of a

supply chain

a network of organizations involved in creating a

particular product or service

Supply-Chain Management
Need same computing platform or integration

solution to integrate

Web services enhance the possibility for supply-

chain integration

Suppliers would use the registry to access the

manufacturer's inventory system

Analyze the inventory data to determine when the

manufacturer will need a new shipment of raw

Supply-Chain Management
If suppliers can determine when the

manufacturer will need additional materials, the

suppliers can deliver those materials at the
exact time they are needed
Will decreases uncertainty in the supply chain
lowering inventories can result in significant