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End to End Resource Planning: Towards Real-time Value Chain Optimization

End to End Resource Planning: Towards Real-time Value Chain Optimization. ANYU LEE, PHD Director, eCommerce R&D center, China Academy of Sciences Chief Scientist, Beijing eBridge Service Technology Ltd. Outline. Challenges for enterprises Change of business environment Shift of SOA

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End to End Resource Planning: Towards Real-time Value Chain Optimization

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  1. End to End Resource Planning:Towards Real-time Value Chain Optimization ANYU LEE, PHD Director, eCommerce R&D center, China Academy of Sciences Chief Scientist, Beijing eBridge Service Technology Ltd.

  2. Outline • Challenges for enterprises • Change of business environment • Shift of SOA • EERP concept • EERP key issues • QoS • Service granularity • Standards to be researched on • Reference implementation • EERP design&deployment strategy • EERP integration platform • EERP Promotion and Implementation

  3. Change of business environment • business environment is tougher than ever: • Demanding customers • Shorter time and lower cost; • Intense competition • Subject to frequent changes at technology and business process • new regulation • Trade barriers and regulation. • Globalization • Have to deal with partners across the world

  4. Change of business environment • Companies want to: maximize their business results • Revenues up • Sustaining profits up • Costs down • Profit growth becomes critical • Sustaining profit growth is a key core competence.

  5. State of the enterprise • Operational Costs Consume IT Budgets • ~70% of IT budget spent on sustaining and running existing systems, only ~30% on new capabilities • Enterprises typically want to spend ~45% on new capabilities • Crisis of Complexity • No “green-field” development • New applications must integrate with existing heterogeneous “legacy” systems • IT Must Deliver Business Agility • Support new business opportunities • Leverage new technologies

  6. Changes in IT Architecture… • Shareholders ask for better IT utilization and greater ROI • Re-Use of IT assets and Integration of historically separate systems • Merger and acquisition have become a fact of life • Integration of systems of different enterprises • New systems must be developed with (current or future) heterogeneity in mind • Always prepare for integration. • Internet everywhere has created a set of new business models • Innovative business models may aggregate resources across the Internet world.

  7. Shift to SOA • What is a "Service" ? • A reusable business process or business function that can be accessed through the standard web technologies • Why? • Business to Business processes drive organizations – not IT • Better colaboration with Businesses • Implications • Re-factor existing systems extracting correct business services

  8. Shift to SOA Exposing business partners as services that are: • loosely coupled • standards based, • message driven, • published and discoverable, • and QoS measurable.

  9. Shift to SOA • Data, logic and infrastructure accessed by routing XML-based messages (Web Service) throughout Internet • Location is meaningless • Multiples Services suppliers • Ubiquitous computing • Preserves and connects existing systems • Using the Right Software Architecture brings exponential productivity gains

  10. Triggers a business process Implemented by a set of services SOA in Action (example) Authentication and authorization services CRM service Purchase E-commerce service Ack/Receipt Service consumer Credit authorization service Fulfillment services Billing services

  11. Next step of SOA • How to coordinate services internal and external to meet certain business objectives ? • How to achieve better business model for a enterprise? • How to form an end to end business process automatically and intelligently? The answer is Service Oriented Resource Planning (SORP)

  12. Outline • Challenges for enterprises • Change of business environment • Shift of SOA • EERP concept • EERP key issues • QoS • Service granularity • Standards to be researched on • Reference implementation • EERP design&deployment strategy • EERP integration platform • EERP Promotion and Implementation

  13. EERP concept: resource planning • With SOA and open standard, we can now help enterprises to improve their profits and sustain the profits, we introduce: • SORP: Service oriented resource planning • SORP can optimize resources inside or outside of a enterprise, for example: • SO-SCM • Optimize the resources of a enterprise and its suppliers. • SO-CRM • Optimize the resources of a enterprise and its sales/mareking partners or its customers. • EERP: • End to end resource planning, optimize the resources along an specified value chain.

  14. What does EERP do? What is it? • A new way to look at enterprise IT application • Integration inside and outside of a enterprise border. • A new software architecture and platform • a collection of Web Services that perform various enterprise functions, data exchange, process integration, collaboration and other relevant work. • A self-healing, intelligent, and reliable service choreograph platform (SoftGrid)

  15. EERP: basis • Based on Web Services to link up applications in a “loosely-coupled” manner • “Software as Services” and decouple environments and systems • Eventually • More robust • Cost effective to develop • Infinitely more flexible

  16. Optimize for time Business goal Optimize for profit Optimize for …… Intelligent searching & scheduling Real-time Value Chain Optimization Extended UDDI EERP platform QoS desc Real-time auditing & measuring SCM Services CRM Services ERP Services MRP II Services Service layer …… Real-time Value Chain Optimization

  17. Web Service EERP Service UDDI Universal Description, Discovery, and Integration EERP Universal QoS audition, Integration and Routing • Discover Web Services on the intranet or Internet • Discover the most suitable Services on the intranet or Internet for business goal WSDL Web Services Description Language • Describe a Web Service contract SOAPSimple Object Access Protocol • Invoke a Web Service XML, XSD & HTTP • Built with Web Standards From SOA to EERP StandardWebProtocols A unit of auditable business logic accessible via standard Web protocols and EERP protocols A unit of programmable business logic accessible via standard Web protocols

  18. Real-time Value Chain Optimization • When business goal contains more than one criteria: • It become a question of Multiple Criteria Decision Making(MCDM) • Can be solved by weight model or fuzzy methods, analytic hierarchy process and linear programming, etc.

  19. EERP briefing How does it work? • Vendors base on EERP principle to develop next generation enterprise application; • SaaS for enterprise application • Backend platform to support flexible service choreograph • Service management • Enterprises use EERP to manage all relevant resources to achieve specific operation objectives. • Value chain integration • Dynamic decision support • Integration with eCommerce / online marketplace

  20. Introduction to EERP EERP is one of the most important practices of Service oriented resource planning. • EERP consulting services • Help enterprises understand the operation objectives from 360 degree of their specific value chains. • EERP toolkit • Value chain decomposition, service identfication, service choreograph and integration. • EERP implementation • Different deployment strategies, could be either SOE or true SOE implementation with third party service integration. • EERP QOS management • Model, protocol to precisely manage QOS along the value chain to achieve end to end QOS assurance.

  21. EERP: the possible killer app on SOA • SOA vs. past technology • It directly maps business to the IT implementation, so it solves today’s enterprise’s big problems (fast changing world); • It enables the enterprise IT application integrate with almost every partners’ services, and run on a much broad and heterogeneous network environment. • EERP vs. past IT application • It tells the whole story of the enterprise performance and operation. • It ties enterprise operation with the market dynamics

  22. EERP: manufacture(1/2) Reference implementation • A furniture manufacturer. • Value chain identification • Service-lization: SCM, ERP, CPM (channal partner management), eMarektplace (Alibaba, furniture.com.cn and many other relevant eCommerce portals) • Service choreograph guideline (direct sales, channel sales, rental instead of sales and so on.) • EERP decision support console • Batch and then real time interaction with all operational systems

  23. EERP: manufacture(2/2) Results: • Identify the key revenue / profit bottlenecks and reveal the dynamic pattern of those bottlenecks. • Demonstrate the revenue / profit strong correlation with market environment, even with the stock prices of certain key related companies. • Prove concept: the cost of manufacture is no longer a key problem for today’s manufacturers, instead the resources outside of the company command the revenue and profit. • Help company to completely change its business to furniture lease and customized furniture manufacture.

  24. EERP: eGovernment(1/2) Reference implementation • GSP (government service platform) • 20 government processes selected • Objectives identified as: fast throughput, tighter control, accuracy, policy impact and correlation with central government policy. • 200+ eGovernment applications are converted to WebServices. • Modified ESB to a GSP (SOAP + WSDL + BPEL)

  25. EERP: eGovernment(2/2) Early results: • Help government customer to understand the G-B, G-P dynamics. • Identify the bottleneck of policy implementation and rule adoption. • Identify which crowd has a better access to the government services. • Help innovation in the process reform and organization simplification.

  26. EERP: consumers(1/2) Reference implementation • Best career planning service for college graduates • 10 career paths selected • 300+ career develop related services identified (employee services, training services, marriage services, real estate agency, travel services…) • UDDI setup for career related service management • Drag/draw to define the career paths, and selection of personal objectives (key words: Fast path to rich, pleasant family life, entrepreneur, and so on). • Could be a very good online personal career service portal.

  27. EERP: consumers(2/2) Results: • Very sticky online service for students. • Now can compare different career paths for “the most efficient way” to achieve goals • Identified the college education importance is less than 10% for certain career objectives • Identified early marriages are vital for certain career objectives • Help government office to review the career training policy.

  28. Outline • Challenges for enterprises • Change of business environment • Shift of SOA • EERP concept • EERP key issues • QoS • Service granularity • Standards to be researched on • Reference implementation • EERP design&deployment strategy • EERP integration platform • EERP Promotion and Implementation

  29. EERP: QoS Services are: • able to measure; • able to map to a business practice; • may consist of services; • able to test independently; • able to observe the state change • Security, access control

  30. EERP: Quality of Service • Service Classification • QoS Classification • QoS Requirements • QoS Measurement and Evaluation • QoS Control

  31. Service Classification • Service classification is the basis of the QoS definition • Service can be classified on the basis of : • Application envirement (Transportation, communication, energy, ...) • Objective ( • QoS requirement (Time sensitive, cost sensitive, …)

  32. QoS Classification • Quality level • Based on customer sense: Excellent, good, normal, not too bad, bad) • Based on quality data gathering: 1~10 grades • QoS types • Time • Cost • Convenient …

  33. QoS Requirements • EERP QoS parameters definition • Response time • Cost • Complexity • Convenient …. • EERP QoS Requirements • Excellent quality (range of time, cost ,…) • Normal quality (range of time, cost ,…) • Bad quality (range of time, cost ,…)

  34. Service A QoS Req Sub Service A1 QoS Req Sub Service A2 QoS Req … Sub Service A1 QoS Req … … Sub Service A1 QoS Req Sub Service A2 QoS Req Sub Service A2 QoS Req … Quality requirements depart • One service can be provided on basis of the other service or sub-services , so the qualities of others may determine its quality. • The quality requirements of one service must be departed to a series of sub quality requirement based on its formed sub service. • QoS can be defined as several layers. • There is a mapping relation between upper layer QoS and lower layer.

  35. QoS measurement and evaluation • The technologies to collect QoS status infomations • Technology architecture • Collect agent service/QoS management platform/QoS service • QoS Evaluation • QoS evaluation methods • QoS evaluation time scale • QoS evaluation granularity • The QoS evaluation of Different services

  36. QoS control • QoS control key issues • QoS requirements or criteria • QoS status collects method • QoS evaluation method • QoS optimization Control • QoS optimization control • Feed back control • Objective oriented control

  37. EERP: QoS Fundamental of QoS: • Service must has business meaning • Service implements business logic • Service must be measurable; ——if you cannot measure it, you cannot manage it. • Use business factors to measure service

  38. EERP: QoS • Service can be combined and complex • QoS measurement in a recursive way

  39. Service Grid SOA Web Service Computing grid CORBA DCOM Java/EJB clustering Meta computing Distributed object /component Distributed computing Parallel computing distributed system Internet EERP: QoS

  40. SOA as an application pattern: loosely coupled dynamic binding Registry Consumer Provider EERP: QoS

  41. Ubiquitous service QoS measurement and management Stand-alone QoS management Dynamic auditing Dynamic data exchange with UDDI EERP: QoS Registry Quality management center Exchange info Audit Audit Consumer Provider

  42. Two approaches for consumer to find a service that match its requirement Look for service in Registry only Look for service in Registry and Quality management center both(QoS on demand) Registry Quality management center Exchange info describe Query and answer Consumer Provider EERP: QoS Registry Quality management center Exchange info 1 1 Query and answer describe Query and answer 2 Consumer Provider Extended service info(with QoS) Registry Info QoS Info

  43. EERP: QoS Quality index: • throughput time; • value range of a given parameter (for example, cost); • accuracy of a given parameter; • availability

  44. EERP: QoS Quality assessment can be multi-objective: Cost/time/accuracy/…… or any combination of them

  45. Outline • Challenges for enterprises • Change of business environment • Shift of SOA • EERP concept • EERP key issues • QoS • Service granularity • Standards to be researched on • Reference implementation • EERP design&deployment strategy • EERP integration platform • EERP Promotion and Implementation

  46. EERP: Service granularity Three types of service according its semantic meaning: • Fine granularity service • Medium granularity service • Coarse granularity service

  47. EERP: Service granularity • granularity effects service re-usability greatly Service re-usability Re-use efficiency stability Re-use scale coarse low high low small high low high large fine

  48. EERP: Service granularity Aim of Optimization • To reduce un-stable factors within coarse granularity services as much as possible, utilize superiority of re-use coarse services, to improve re-user efficiency.

  49. EERP: Service granularity Granularity: how to measure • Amount of computation the service afford • granularity can be calculated by the business process the service implements, namely, count of the code lines in the source code of the service. • Generally it’s difficult to measure service granularity accurately.

  50. EERP: Service granularity • Service optimization based on service reuse efficiency measurement

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