SOA and XBRL GL: Using XBRL GL to Achieve Data integration

Neal J. Hannon, CMA

XBRL Editor, Strategic Finance Magazine

University of Hartford

Linked Applications Rule the 90’s

BUT….Companies are becoming buriedin an avalanche of unstructured,undisciplined data

• Service-Oriented Architecture (SOA) expresses a perspective of software architecture that defines the use of services to support the requirements of software users.

• Unlike point-to-point architectures, SOAs comprise loosely coupled, highly interoperable services. These services interoperate based on a formal definition (or contract) which is independent from the underlying platform and programming language (e.g., WSDL).

• “An SOA is the big picture of all the business processes and flows of a company. It means businesspeople can visualize, for the first time, how their businesses are constructed in terms of their technology.”

• “An SOA is the blueprint that guides the development of the integration layer and its two major components:

messaging infrastructure and services.”

Source: CIO Magazine

The sea-change that is now occurring is that integration has itself become the dominant model of computing.

--Tim Jennings, Research Director

The sea-change that is now occurring is that integration has itself become the dominant model of computing.

--Tim Jennings, Research Director The Butler Group

Linking Processes with Web Services: SOA

The days of gigantic one size fits all program are over. System architects can seamlessly link major business processes of a company together using XML and XML technologies.

XML (XBRL), SOAP, Web Services, can all be “trained” to discover applications and business processes, execute commands and apply meta-data to the core business facts.

What if..

Instead of applications, businesses used data as the center of their information gathering universe?

ProcessedBusiness

Fact

Meta-data Capsule

Date

Currency

Precision

Data type

Sarbanes-Oxley Audit

Indicator

BusinessRule Check

Language

PresentationOrder

Information Rich Data

Business DataVarious formats, Structures,Platforms

Governance& Security

Application Integration Layer

XML, Web Services, XBRL-GL

Sarbanes-OxleyCompliance

Continuous Audit

ForensicAccounting

InternalAuditing

ExternalAuditing

Business Reporting

Scorecarding

KPI’s

Board AuditCommittee

SEC Reporting

Budgets

Monthlyreporting

Desk-topManagement

Data-CentricEnterprise Reporting

Real-Time Reporting

ExceptionHandling

Bus.ProcessMonitoring

BusinessRules

XBRL Fin. Reporting

SOA

BusinessIntelligence

DrillDown

BAM

DataMining

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WACOAL New Financial System

＊「 Oracle E-Business Suite 」 is trademark of Oracle

HITACHI and XBRL GL: “SPEED” & “COST”

■ Manage all financial information in whole WACOAL group■ Integrate with many kinds of legacy systems,

which run on Mainframe, Minicomputer, UNIX, or PC Servers■ Oracle E-Business Suite as ERP

Oracle E-Business Suite

AP

EIS

IR

AR

Purchasing

Sales

Materials

Workflow

Inventory

Business Systems Integrate financial Information

WACOAL groupHeadquarters

DivisionsConsolidated Companies

GL

XBRL GL Auto Journalizing System■ Easy integration and maintenance between Legacy systems and

Oracle E-Business Suite by using XBRL GL as standardized interface■ Translate many kinds of document data from many kinds of legacy systems,

which run on Mainframe, UNIX, or PC Servers, to Financial data■ 2 Layer structure, which consist of XBRL GL Conversion Engine and

Add-on business logic, make logic addition and/or modification easy

Business Systems

OracleE-Business Suite

Purchasing

Sales

Wages

XBRL GL Auto JournalizingXBRL GL Auto Journalizing

Add-onsJournalizing

XBRL GLConversion Engine

GL

AP

AR

XBRL GLDocuments

XBRL GLFinancial

Information

Additional Applications:

– Insert Pilot program details here

Summary

– Companies are moving to SOA, treating data as the center of systems architecture

– XBRL-GL is well suited for handling internal financial data in a Web Services/SOA environment

XBRL GL:

International Data Representations

Neal Hannon, CMAU of HartfordHannon@hartford.edu

Thank You! Gracias!