The Emergence of the Multienterprise Business Process Platform

1
The Emergence of the Multienterprise Business
Process Platform

• Dwight Klappich

2
Key Issues

• What is the ME-BPP and what is driving the
  emergence of this technology framework?
• What are the enablers and barriers to the
  formation of an ME-BPP?
• How does an enterprise prepare for and exploit an
  ME-BPP?

3
Where "Multienterprise" Exists
Key Customers
Key Suppliers
Data Synchronization Order Management/ATP Business
Process Hub
Strategic Sourcing Forecasting/Replenishment
Non Key Customers
Non Key Suppliers
Catalog Order Management Business Process Network
Catalog E-Procurement
Your Firm Here
Catalog Order Management Portal
Tendering Global Trade
Replenishment ATP
Distributors
Co-Packers
Logistics Providers
4
But Is Multienterprise Just Déjà Vu all Over
Again?

• E-Marketplaces
• Private Trading Exchanges
• Industry Consortia
• Standards
• Business-to-Business (B2B)
• Collaboration

• Cooperation
• Collaboration
• Multienterprise
• Business Process Platform
• Service-Oriented Architecture (SOA) Maturity
• B2B and Application-to-Application (A2A)
  Integration

5
Don't Just Integrate Your Multienterprise
Processes Share Them!

• Redefine business processes in such a way that
  symmetry (interoperability) can be observed

"I buy"
Process not defined in a way that supports
symmetry
"I sell"
Check exchange rate before placing PO
"Exchange Rate"
Order Entry
Externalizing process tasks can help create
symmetry
"Purchasing"
Collaboration and Performance Management
Common routines and tasks externalized and
redesigned to support a shared data model
"I buy"
"I sell"
6
The Business Process Platform
Devices
Sensory Network
Portal
Packaged UI
Users Experience
BSR
Enterprise Services Business/Messaging
Enterprise-Specific Orchestrated Business
Processes
Packaged Business Processes
Business Apps. and Processes
BPM BI
Enterprise-Specific Analytics
Business Analytics
Co/Outsourced and B2B Integration
Packaged Analytics
Enterprise Service Business/Messaging
Enterprise Semantics and Data Services Master
Data and Metadata
Information Data
Physical Data
Described
Semi-described
Self-described
Undescribed
BI business intelligence BPM business process
management BSR business service repository UI
user interface
7
Traditionally, Most Process Execution and
Visibility Occurred Within Enterprise Walls
Processes
B2B documentsand transactions
Company A
Company B
8
Multienterprise Integration and Business Services
Are Emerging in the B2B Domain
New Business Services for EstablishedBusiness
Process
Integration Service Provider
Reformatted B2B documentsand transactions
B2B documentsand transactions
Company B
Company A
9
In the Tectonic Shift, Whole Processes Are Moved
and Created in the B2B Domain
Moved Business Process
Business Services
New BusinessProcess
ASP, Software as a Service, Business Process
Network, etc.
Reformatted B2B documentsand transactions
B2B documentsand transactions
Company A
Company B
10
B2B's Hierarchy of Needs
Multienterprise process-focused
Applications Longer-term differentiation Composit
e process design through execution Manage
Business Processes
Immature
Value from Innovation
Extended enterprise-focused Visibility,
analytics, BI Some short-term differentiation Proc
ess visibility Monitor
Business Services
Value from Automation
Maturing
Enterprise-centric Infrastructure Undifferentiated
Multistep process integration Link
Business Documents
Mature
11
Where all the Pieces Fit And It's Not Just
About Technology
Business Process Hub (BPH)

• A BPP is used to govern enterprise processes
• An ME-BPP is for multistakeholder shared
  processes
• A BPH hosts applications for a community
• A BPN integrates processes between companies

Multienterprise Business Process Platform (ME-BPP)
Business Process Platform (BPP)
Business Process Network (BPN)
Company Z
Company A
12
Barriers to Implementing Multienterprise
Applications and Processes

• Lack of maturity with
• Information infrastructure
• B2B integration portfolio strategy
• Understanding and awareness of SaaS, outsourcing
  and BPO
• Governance of business applications
• Trading partners with similar conditions and
  opportunities
• Misconception that this is cost-add not cost-cut
  or revenue enhancing
• Question of governance
• Who pays for this, and who recognizes the
  reward?
• Shared PL?
• Inertia in today's multipronged B2B integrated
  networks
• Pre-formation of ecosystem management

13
Redefining Process Boundaries Will Allow Multiple
Processes to Leverage Common Technology

• Sell-Side ME-BPP for
• Data Synchronization
• EDI
• Distribute Order Management
• ATP
• Catalog/Search
• Portal
• Collaborative Planning

• Buy-Side ME-BPP for
• Strategic Sourcing
• Forecasting/Replenishment
• EDI
• Portal
• Supply Performance Management
• Supplier Information Management

Your Firm Here
Remaining extended SCM/enterprise
Carrier Portals Tendering Global Trade EDI
14
Recognize the Networks You Are in
The Focus Shifts to the Ecosystem

• 1990
• My Enterprise
• Integration
• Inside
• Hub
• Department Productivity

• 2008
• My Trading Partners
• Collaboration
• Inside-out
• Hub-and-spoke
• Supply Chain Integration

• 2010
• My Ecosystem
• Synchronization
• Outside-in
• Peer-to-peer
• Ecosystem Synergy

Think Facebook - MySpace For Business
15
Solutions and Examples Multienterprise
Applications

• Where is multienterprise integration and business
  processes emerging
• Wide Range of Providers
• Business Process Networks Business Process Hubs
  (e-marketplaces) Integration Service Providers
  System Integrators Business Process Outsourcers
• Wide Range of Industries and Processes
• Logistics, Finance, Order Visibility, Compliance,
  Partner Performance Management
• Look for simplified integration environment or
  access to cheaper and more advanced (shared
  investment) business service applications

16
Domestic Transaction
Transactions
Transactions
Logistics Service Provider
Shipment
Order
Receipt
Acknowledgement
Invoice
Payment
Customer
Vendor
Transactions
17
Linear View of a Global Transaction
P.O.
Shipment
18
Simple Network View of a Global Merchandise Flow
Customer Demand
Domestic Factories
Merchandise
Store
EDI 856 / 214
China Factories
Merchandise
Merchandise
EDI 856 / 214
Merchandise
EDI 856 / 214
Orders
Warehouse
Port of Un-load
Merchandise
Orders
Land Transport
Merchandise
Merchandise
EDI 856 / 214
Physical Flow Info Flow
Consolidator
Ocean Transport
Deconsolidation
Merchandise
Port of Loading
19
The Emergence of Multienterprise Business Process
Platform

• Leverage pervasiveness of community,
  relationships, shared business objectives
• Exploit mature connectivity and efficient
  document exchange
• Reduce investment behind the firewallfor shared
  investments
• Mix packaged processes, applicationswith
  configured (SOA/WOA)processes
• Beyond "process integration" to"process sharing"

20
Recommendations

• Leverage ME-BPP to implement shared
  multienterprise processes
• Recognize that multienterprise is not a
  technology it's a strategy enabled by
  technology involving
• communities of interest (business relationships)
• communities of trust
• shared infrastructure (including a B2B gateway)
• shared applications
• Develop a multienterprise strategy involving
• a "portfolio approach" of B2B interactions that
  might, over time, rationalize to fewer methods
• consolidate separate B2B projects on one gateway
• incorporate your B2B integration strategy into
  your business apps strategy
• Establish clear metrics for tracking the success
  of your multienterprise projects
• Link improvements in B2B projects to the business
  (for example, profit)

21
The Emergence of the Multienterprise Business
Process Platform

• Dwight Klappich

Q A
22
Two Worlds Are Maturing and Creating an
Opportunity for Convergence

• B2B transactions are proliferating nonlinearly.
• Users are beginning to implement a holistic
  multienterprise B2B strategy, rather than
  discrete projects.
• Electronic data interchange (EDI) software is
  dead B2B gateway software supports more complex
  multienterprise projects.
• EDI value-added networks (VANs) are dead
  Integration service providers give companies the
  option of outsourcing multienterprise integration
  projects.

• Definition of "Business Applications" is
  changing analytical, business, packaged,
  composite, legacy, home grown, suite, best of
  breed etc.
• Enterprise resource planning (ERP) and BI is dead
  The rise of SOA and reuse of information,
  analytical and application logic is leading to
  both a convergence and simplification of what we
  mean by "application."
• SOA, Web 2.0, BPM and master data management
  (MDM) are creating new opportunities to exploit
  IT.