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ACC-821 – 8 DEC 2004 The Evolution of Enterprise Systems - II

ACC-821 – 8 DEC 2004 The Evolution of Enterprise Systems - II. Communities Independent view Collaboration space ebXML & open-edi Ecological Fit. Collaboration Space. Value Exchange. Buyer. Seller. Third Party. Japan expert contribution to 15944-4, 9 May 2002, Seoul Korea .

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ACC-821 – 8 DEC 2004 The Evolution of Enterprise Systems - II

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  1. ACC-821 – 8 DEC 2004The Evolution of Enterprise Systems - II • Communities • Independent view • Collaboration space • ebXML & open-edi • Ecological Fit Julie Smith David and William E. McCarthy 2002

  2. Collaboration Space Value Exchange Buyer Seller Third Party Julie Smith David and William E. McCarthy 2002 Japan expert contribution to 15944-4, 9 May 2002, Seoul Korea

  3. Electronic Collaboration – WHY??Michael Hammer -- The Agenda “Extend Your Enterprise” See your business not as a self-contained company but as part of an extended enterprise of companies that work together to create customer value. Identify and strengthen the key processes at which you excel; outsource everything else to someone better equipped to do it. Be prepared to rethink your company’s identity and strategy in fundamental ways. Julie Smith David and William E. McCarthy 2002

  4. Electronic Collaboration – WHY??Michael Hammer -- The Agenda “Knock Down Your Outer Walls” Streamline the connections between your processes and those of your customers and suppliers Relocate work between companies so that it is done by whoever can do it best Coordinate through open sharing of data between companies (independent view of transactions?) Exploit the opportunity of collaborating with co-customers and co-suppliers Julie Smith David and William E. McCarthy 2002

  5. Independent view of Inter-enterprise events Enterprise #1 Enterprise #2 Business Process Business Process Business Process Business Process Business Process Business Process Business Process Business Process Business Process Enterprise #3 Trading Partner view of Inter-enterprise events (upstream vendors and downstream customers) Collaboration Perspective: Trading Partner vs. Independent Dotted arrows represent flow of goods, services, and cash between different companies; solid arrows represent flows within companies Julie Smith David and William E. McCarthy 2002 Japan expert contribution to 15944-4, 22 Oct 2001, Victoria BC ,

  6. Perspective-Dependent Collaboration Descriptions: • Inside agent & outside agent • Vendor & Customer • Inflow & Outflow • Sale & Purchase • Cash Receipt & Cash Disbursement Julie Smith David and William E. McCarthy 2002

  7. Perspective-Independent Collaboration Descriptions: • Initiating agent & Responding agent • Flow • Shipment • Payment • Buyer & Seller ?? Julie Smith David and William E. McCarthy 2002

  8. Event-Type Economic Event typification quantity applied duality Shipment Payment … Julie Smith David and William E. McCarthy 2002

  9. Economic Event Economic Agent accountability Economic Agent Type typification Julie Smith David and William E. McCarthy 2002

  10. Electronic Collaboration – Old (bottom-up) and New (top-down) • OLD technology is EDI (electronic data interchange) • EDI has standard documents or transaction sets @ to X12 (American) or EDIFACT (everywhere else) • Industry – RosettaNet • Cross Industry -- OAG • NEW technology is XML • Bottom-up  UBL • Top-down  ebXML or BP emphasis Julie Smith David and William E. McCarthy 2002

  11. ebXML -- 101 Julie Smith David and William E. McCarthy 2002

  12. Business Semantics of ebXML • ebXML uses a concept of shared business objects to keep a partner’s processes aligned with another partner’s processes • When partners in a collaboration agree on the same value (or state) of a shared business object, then each of their business processes should be synchronized, and the partners are said to be in state alignment • ebXML calls a shared business object a Business Entity (BE) • Examples of Business Entities: A purchase order, a shipping container • An instance example of a BE : PO AB1234, SEAU 6547347 • A BE has 2 important points : • a state value (the business object is in a ‘condition’) • a lifecycle(the phases a business object goes through from start to finish) • Understanding the behavior and lifecycle of BE is critical to modeling • There will be a Library of Business Entities Source: ebXML COOL presentation by R. Haugen & J. Yunker) Julie Smith David and William E. McCarthy 2002

  13. Business State Alignment • Means both trading partners must agree on the state of each Business Object at the end of each Business Event. • For example, the Order is not accepted until both partners agree explicitly that it is accepted. • The Business Transaction protocol must insure that both partners transition to the new Business State - or neither does. • Think “electronichandshake”. Julie Smith David and William E. McCarthy 2002 Source: ebXML BCP&MC Bob Haugen

  14. Business Transaction Economic Contract reciprocal Regulator Third Party Business Event Economic Resource Type governs Agreement typifies establish specifies specifies Business Role involves Economic Commitment Economic Event Type specifies qualifies fulfills reserves typifies Economic Resource Economic Event stockflow Economic Agent from to constrains duality Partner requires Bilateral Collaboration Mediated Collaboration participates ISO Open-edi Ontology Collaboration Model Julie Smith David and William E. McCarthy 2002

  15. An Example Business Transaction with Business Events Grouped in Phases Julie Smith David and William E. McCarthy 2002

  16. Candidate Planned Identified Proposed Substituted Specified EconomicResourceType <<BusinessEvent>> publishCatalog <<BusinessEvent>> sendCatalogRequest <<BusinessEvent>> acceptAvailabilityAndPriceRequest <<BusinessEvent>> sendOffer <<BusinessEvent>> acceptOffer <<BusinessEvent>> shipAcceptableSubstitute State Machine Diagram for Economic Resource Type Julie Smith David and William E. McCarthy 2002

  17. Sample States for Business Objects Julie Smith David and William E. McCarthy 2002

  18. waiting-start – in-service completed -- aborted --suspended candidate planned identified proposed specified substituted Business Transaction governs Agreement Economic Event Type Economic Resource Type establish specifies specifies Business Role involves typifies Economic Commitment reciprocal qualifies specifies reserves fulfills typifies Economic Event stockflow from to duality Economic Resource Economic Contract Partner materializes settles Economic Claim materialized settled negotiation pending  negotiation in-service  negotiation complete Sample Business Objects with State Life Cycles Julie Smith David and William E. McCarthy 2002

  19. ebXML vision • A global electronic market place where enterprises of any size, anywhere can: • Find each other electronically • Conduct business through the exchange of XML based messages • Using standard message structures • According to standard business process sequences • With clear business semantics • According to standard or mutually agreed trading partner agreements • Using off the shelf purchased business applications • TEAMS: BP, CC, TP, security, messaging services, architecture, QC, etc. Julie Smith David and William E. McCarthy 2002

  20. XML XML Business Scenarios Business Scenarios 1 COMPANY A Business Profiles Business Profiles Request Business Details 2 Build Local System Implementation ebXML ebXML 3 Register Implementation Details Registry Registry Register COMPANY A Profile Download 4 Query about COMPANY A profile Agree on Business Arrangement Scenarios and Profiles 5 DO BUSINESS TRANSACTIONS 6 COMPANY B ebXML ebXML compliant compliant system system Collaborative Process – Interactions 1 Collaboration Protocol Profiles, Business Process Models (BPSS) XML Business Scenarios 1 1 COMPANY A COMPANY A Business Profiles Request Business Details Request Business Details 2 2 Build Local System Build Local System 3 Collaboration Protocol Profiles Implementation Implementation ebXML 3 3 Register Implementation Details Register Implementation Details Registry Register COMPANY A Profile Register COMPANY A Profile 4 Collaboration Protocol Profiles, Business Process Models (BPSS) Download Download 4 4 Query about COMPANY A profile Query about COMPANY A profile Agree on Business Arrangement Agree on Business Arrangement Scenarios and Profiles Scenarios and Profiles 5 5 5 Collaboration Protocol Agreement DO BUSINESS TRANSACTIONS DO BUSINESS TRANSACTIONS 6 6 COMPANY B COMPANY B ebXML compliant system Julie Smith David and William E. McCarthy 2002

  21. CPP CPA Summary What Parties ARE SCHEDULED to do Collaboration Protocol Agreement (CPA) BusinessProcess Definition BusinessProcess Definition intersection, negotiation Party 1 CPP Party 2 CPP What Parties COULD do Julie Smith David and William E. McCarthy 2002

  22. ebXML Architecture BusinessDocuments Core/IndustryComponents BusinessProcess Design Time Business Libraries, Trading Partner Directories, etc… Registries/Repositories CollaborationProtocolProfile CollaborationProtocolProfile CP Agreement BusinessServiceInterface BusinessServiceInterface Transport Message Runtime BusinessServices/App’s BusinessServices/App’s Julie Smith David and William E. McCarthy 2002

  23. UMM metamodel Business Domain View (BDV) Business Area Process Area Business Process Business Requirements View (BRV) Agreement Business Collaboration (binary or multiparty) Partner Economic Resources Economic Event Business Transaction View (BTV) Requesting Business Activity Authorizing Roles Business Transaction Responding Business Activity Business Documents Business Service View (BSV) Requesting Service Transaction Business Messages Network Component Responding Service Transaction Julie Smith David and William E. McCarthy 2002 Source: ebXML TMWG

  24. XBRL  • Business Process XML (ebXML, OAG, ISO)   XBRL traditional financial statements traditional financial statements Business Service Interface (BSI) Business Service Interface (BSI) Enterprise System for Company B Enterprise System for Company A transactions, business events, value creation, and controls COMPANY A COMPANY B • General Ledger Taxonomy: • AccRec (B) – xx Sales -- xx • COGS – yy Inventory – yy • Cash -- xx AccRec (B) – xx • General Ledger Taxonomy: • Purchases – xx AccPay (A) – xx • AccPay (A) -- xx Cash – xx Collaboration System Collaboration Messaging for: Planning Identification Negotiation Actualization Post-Actualization Julie Smith David and William E. McCarthy 2002 Traditional EDI XML domains

  25. The Semantic Web • Beyond Enterprise Systems • Everybody-to-everybody • RDF & ontologies • Agent technology Julie Smith David and William E. McCarthy 2002

  26. Characteristics Speed of change Competition Complexity Corporate Structure Size Ecological Niches Ocean Lakes Desert Mountains Puddle Organizational Fit for Enterprise Systems Julie Smith David and William E. McCarthy 2002

  27. where you will live your careers the most Enterprise Information Systems Basic Accounting Systems Counting artifacts e-collaboration systems Julie Smith David and William E. McCarthy 2002 Enterprise Systems classification structure is from David, McCarthy & Sommer, Communications of the ACM, May 2003, pp. 65-9. back

  28. QUESTIONS ?? Julie Smith David and William E. McCarthy 2002

  29. Enterprise Information Systems Basic Accounting Systems Counting artifacts e-collaboration systems Enterprise Systems classification structure is from David, McCarthy & Sommer, Communications of the ACM, May 2003, pp. 65-9. back Julie Smith David and William E. McCarthy 2002

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