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End to End Resource Planning:Towards Real-time Value Chain Optimization
ANYU LEE, PHDDirector, eCommerce R&D center, China Academy of SciencesChief Scientist, Beijing eBridge Service Technology Ltd.
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
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
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.
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
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.
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
Shift to SOA
Exposing business partners as services that are: loosely coupled standards based, message driven, published and discoverable, and QoS measurable.
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
SOA in Action (example)
PurchasePurchase
E-commerceE-commerceserviceservice
CRM service CRM service
Fulfillment servicesFulfillment services
Authentication Authentication and and authorization authorization servicesservices
Credit authorizationCredit authorizationserviceservice
Billing servicesBilling services
Ack/ReceiptAck/Receipt
Triggers a Triggers a business processbusiness processImplemented by a Implemented by a
set of servicesset of services
ServiceServiceconsumer consumer
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)
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
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 enterp
rise, 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 s
pecified value chain.
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)
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
Real-time Value Chain Optimization
SCMServices
CRMServices
ERPServices
MRP IIServices
…… Service layer
Real-time auditing
& measuring
EERP platformExtended
UDDI
QoSdesc
Intelligent searching & scheduling
Business goal
Optimize for time
Optimize for profit
Optimize for ……
Real-time Value Chain Optimization
From SOA to EERP
StandardStandardWebWeb
ProtocolsProtocols
Web Web ServiceService
A unit of programmable business A unit of programmable business logic accessible logic accessible via standard Web protocolsvia standard Web protocols
UDDIUDDIUniversal Description, Universal Description,
Discovery, and IntegrationDiscovery, and Integration
UDDIUDDIUniversal Description, Universal Description,
Discovery, and IntegrationDiscovery, and Integration
Discover Web Services Discover Web Services on the intranet or Interneton the intranet or Internet
WSDLWSDLWeb ServicesWeb Services
Description LanguageDescription Language
WSDLWSDLWeb ServicesWeb Services
Description LanguageDescription Language Describe a Web Service Describe a Web Service
contractcontractSOAPSOAP
Simple ObjectSimple ObjectAccess ProtocolAccess Protocol
SOAPSOAPSimple ObjectSimple Object
Access ProtocolAccess Protocol Invoke a Web Service Invoke a Web Service
XML, XSD & HTTPXML, XSD & HTTPXML, XSD & HTTPXML, XSD & HTTP Built with Web Standards Built with Web Standards
EERPEERPServiceService
A unit of auditable business logic A unit of auditable business logic accessible accessible via standard Web protocols and via standard Web protocols and EERP protocolsEERP protocols
EERPEERPUniversal QoS audition, Universal QoS audition, Integration and RoutingIntegration and Routing
EERPEERPUniversal QoS audition, Universal QoS audition, Integration and RoutingIntegration and Routing
Discover the most suitable Discover the most suitable Services on the intranet or Services on the intranet or Internet for business goalInternet for business goal
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.
EERP briefing
How does it work? Vendors base on EERP principle to develop next generat
ion 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
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 36
0 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.
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
EERP: manufacture(1/2)
Reference implementation A furniture manufacturer.
Value chain identification Service-lization: SCM, ERP, CPM (channal partner managemen
t), 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
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.
EERP: eGovernment(1/2)
Reference implementation GSP (government service platform)
20 government processes selected Objectives identified as: fast throughput, tighter contr
ol, accuracy, policy impact and correlation with central government policy.
200+ eGovernment applications are converted to WebServices.
Modified ESB to a GSP (SOAP + WSDL + BPEL)
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.
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.
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.
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
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
EERP: Quality of Service Service Classification QoS Classification QoS Requirements QoS Measurement and Evaluation QoS Control
Service Classification Service classification is the basis of t
he QoS definition Service can be classified on the basi
s of : Application envirement (Transportation,
communication, energy, ...) Objective ( QoS requirement (Time sensitive, cost
sensitive, …)
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…
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 ,…)
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.
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
…
… …
QoS measurement and evaluation The technologies to collect QoS status info
mations Technology architecture Collect agent service/QoS management platfor
m/QoS service QoS Evaluation
QoS evaluation methods QoS evaluation time scale QoS evaluation granularity The QoS evaluation of Different services
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
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
EERP: QoS Service can be combined and complex
Service A
Service A1 Service A2
Service B
Service A11 Service A12
Topmost business process
granularity
QoSMeasurement
For alllevels
QoS measurement in a recursive way
EERP: QoS
Internet
Distributed computing
Distributed object/component
CORBA DCOM Java/EJB
Web Service
Service Grid
Parallel computingdistributed system
clusteringMeta computing
Computing grid
SOA
EERP: QoS
Registry
Consumer Provider
SOA as an application pattern: loosely coupled dynamic binding
EERP: QoS
Registry
Consumer Provider
Ubiquitous service QoS measurement and management Stand-alone QoS management Dynamic auditing Dynamic data exchange with UDDI
Quality management
center
Exchange info
AuditAudit
EERP: QoSTwo approaches for consumer to find a service that match its require
ment Look for service in Registry only Look for service in Registry and Quality management center both(Q
oS on demand)
Registry
Consumer Provider
Quality management
center
Exchange info
describe
Query a
nd answ
er
Registry
Consumer Provider
Quality management
center
Exchange info
describe
Query a
nd answ
er
Query and answer1 12
Extended service info(with QoS)
QoS InfoRegistry Info
EERP: QoS
Quality index: throughput time; value range of a given parameter
(for example, cost); accuracy of a given parameter; availability
EERP: QoS
Quality assessment can be multi-objective:
Cost/time/accuracy/…… or any combination of them
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
EERP: Service granularity
Three types of service according its semantic meaning:
Fine granularity service Medium granularity service Coarse granularity service
EERP: Service granularity granularity effects service re-usability greatly
coarse
Service Re-use scale
large
small
Re-use efficiency
low
high
re-usabilityre-usability
high
low
stability
high
low
fine
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.
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.
EERP: Service granularity Service optimization based on service reuse
efficiency measurement
EERP: Service reconstruction
Service reuseData collection
Service reuseData analysis
Transcendental probability
Bayesian analysis
Empirical probablity
Service stability
calculation
Service reconstructionReconstruction principles
Service reconstruction based on stability calculation and Bayesian methods
EERP: Service reuse patterns
Principle of locality for component reuse:
EERP: Mappings business object and software component
EERP in full life-cycle of infomationalization
requirement analysis
design coding testing deploy system run maintenance upgrading enabling
Low cost Short time extensibility configurable Easy to maintenan
ce Dynamic adaptatio
n
•Standards•Prototype•Service
•Platform•Application
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
Possible work towards Standards and Specifications: QoS assessment criteria hierarchy based on SO
A QoS deployment standard based on SOA QoS integration standard based on SOA Service re-structure standard based on SOA Service auditing standard based on SOA EERP business process definition standard EERP business process quality assessment stan
dard EERP business process auditing standard Extension of some existing standards
QoS Assessment Criteria Hierarchy based on SOA
Function: Quality of Service(QoS) is a critical technical problem in application of SOA. Assessment criteria hierarchy of QoS will guide the definition and optimization of service in SOA-based systems.
QoS Assessment Criteria Hierarchy based on SOA
Main content: 1. QoS assessment criteria hierarchy bas
ed on SOA; 2. QoS assessment criteria explained in
detail; 3. Method to decide weights of assessme
nt criteria ;
QoS Deployment Specification based on SOA
Function: To ensure services complete with quality that user demanded in SOA systems, QoS of services(and sub-services of combined services) should be dynamically managed. Those business processes can satisfy users’ command will be selected and executed.
QoS Deployment Specification based on SOA
Main content: 1. QoS deployment patterns in SOA sy
stems; 2. QoS deployment methods with each
deployment pattern;
QoS integration Specification based on SOA
Function: In SOA systems, low-level services of business operation form high-level services gradually. During the integration process, how to ensure QoS of combined services.
QoS Integration Specification based on SOA
Main content: 1. QoS integration patterns in SOA s
ystems; 2. QoS integration methods with eac
h integration pattern;
Service Re-structure Specification based on SOA
Function: SOA-based system consists of multiple level, multiple granularity services. Service granularity greatly effects reusability, reuse efficiency, and service management efficiency. This standard focuses on optimization and assessment methods of services through service re-structure.
Service re-structure Specification based on SOA
Main content: 1. Service re-structure patterns in
SOA systems; 2. Service re-structure methods; 3. Assessment of services after re-
structure;
Service Auditing Specification based on SOA
Function: SOA-based system consists of multiple level, multiple granularity services. This standard focuses on auditing methods of service quality through service re-structure.
Service Auditing Specification based on SOA
Main content: Service quality auditing standard based
on SOA;
EERP Business Process Definition Specification
Function: Business process definition form the fundamental of EERP systems’ design and implementation. This standard will put forward a uniform, consistent, integrate-able description method, which is needed by EERP, to support requirement analysis, design, implementation and dynamically optimization.
EERP Business Process Definition Specification
Main content: 1. EERP business process definition
based on SOA; 2. EERP business process description
methods;
EERP Business Process Quality Assessment Standard
Function: Quality assessment is one the most important activity in design and implementation of EERP. This standard put forward quality assessment method for EERP systems, which will guide the building of EERP systems.
EERP Business Process Quality Assessment Specification
Main content: 1. Quality assessment hierarchy of EERP
business process; 2. Quality assessment criteria of EERP
business process explained in detail; 3. Methods to decide weights of quality
assessment criteria;
EERP Business Process Auditing Specification
Function: Business processes effects the assessment result of EERP system greatly. EERP business process auditing standard provides method to measure performance of EERP system.
EERP Business Process Auditing Specification
Main content: 1. EERP business process
assessment hierarchy; 2. EERP business process auditing
methods;
Possible Extension of Existing Standards and Specification
UDDI BPEL4WS
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 and deployment strategy
EERP integration platform EERP Promotion and Implementation
EERP: Reference implementations(1/2)
Service register
Service publishing
System admin
End user
Target value chain building
Servicesegmenting
EERP soft computing grid(BPEL4WS)
Service management
platform(UDDI)
Service
managem
ent portal
EE
RP
portalM
aintain portal
Operation target selection
QoS
EERP: Reference implementations(2/2)
Step-wise implementation Scenario analysis, value chain building
Decide all related services and operation mode Analysis scenario in offline, batch-mode
Aiming at the whole value chain operation Consummate related services step-by-step
Primary application, complex application, real-time business Integrate into operational system, form a dynamic
whole scenario Reflect effects of environment changing on business
operation
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 and deployment strategy
EERP integration platform EERP Promotion and Implementation
EERP : top-down service design and deployment strategy
Business process
discovery & definition
Business ontology definition
Service oriented analysis
Service oriented design
Service implementation
Service testing
deploy serviceto EERP platform
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
EERP : an agile service improvement strategy
Business performance/QoS statistics
Service oriented analysis
Service oriented design
Service implementation
Service testing
deploy serviceto EERP platform
Step 3
Step 2
Step 4
Step 5
Step 6
Step 7
serviceQoS assessing/retrospecting
Top-down analysis
Implementation & deployment
Current stat/Business model
Current stat/Business model
Step 8
Step 1
EERP : top-down business process orchestration strategy
Business goal Investigation/
definition
Business ontology definition
Service discovery
QoS deployment& calculation
Service orchestration
Service(business process)
execution
execution QoSauditing
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
service QoSrecording & assessment
Step 8
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 and deployment strategy
EERP integration platform EERP Promotion and Implementation
EERP Integration Platform(1/3)
EERP Integration Platform(2/3)
EERP Integration Platform(3/3)
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 and deployment strategy
EERP integration platform EERP promotion and implementation
Promotion and Implementation(1/4)
Organized numerous SOA discussion sessions among the 33 member companies in the past 2 years.
Established the strategic partnership and cooperation with OASIS, the leading SOA technology standard organization with over 64 countries participated.
I was successfully elected to be a member of TAB, the only Asian member ever in the TAB.
Published the ChangFeng SOA Strategy Whitepaper, developed a three year plan to lead the SOA advance and commercilization.
Helped our member companies to acquire the first SOA related projects.
Promotion and Implementation (2/4)
ChangFeng alliance organized 4 working groups to address the standard issues:
RM for EERP Based on OASIS RM, propose a RM for SORP/EERP for specific in
dustry verticals. Design methodology for EERP
Develop a suite of ROI analysis, system analysis, value chain identification and service choreography guideline and so on.
QOS management for EERP Quality model, protocol and end to end QoS insurance.
Best implementation practice for EERP Standard test suite for service qualification, system test before onlin
e, and so on.
Promotion and Implementation (3/4)
In next 3 years, ChangFeng alliance will organize across the country:
5,000 certified EERP webservice developers Open sources
50,000 registered technical participants Contributed through IM, Blog, and email.
UDDI service Test, publish, search, ….
EERP portal with service integration support Various industry vertical and consumer services.
Promotion and Implementation (3/4)
National Service Collaboration Platform (NSCP)
Open source service development Service registration and management Service value chain knowledge base Best practice EERP knowledge base Online service acquisition
Q&A