End to End Resource Planning: Towards Realtime Value Chain Optimization

1
End to End Resource PlanningTowards Real-time
Value Chain Optimization

• ANYU LEE, PHD
• Director, eCommerce RD center,
• China Academy of Sciences
• Chief Scientist,
• Beijing eBridge Service Technology Ltd.

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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 designdeployment strategy
• EERP integration platform
• EERP Promotion and Implementation

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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.

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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

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Shift to SOA

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

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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

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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
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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)

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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 designdeployment strategy
• EERP integration platform
• EERP Promotion and Implementation

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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.

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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)

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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

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Real-time Value Chain Optimization
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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
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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.

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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

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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.

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EERP the possible killer app on SOA

• SOA vs. past technology
• It directly maps business to the IT
  implementation, so it solves todays enterprises
  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

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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

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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 todays 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.

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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)

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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.

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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.

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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.

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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 designdeployment strategy
• EERP integration platform
• EERP Promotion and Implementation

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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

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EERP Quality of Service

• Service Classification
• QoS Classification
• QoS Requirements
• QoS Measurement and Evaluation
• QoS Control

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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,
  )

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QoS Classification

• Quality level
• Based on customer sense Excellent, good, normal,
  not too bad, bad)
• Based on quality data gathering 110 grades
• QoS types
• Time
• Cost
• Convenient

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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 ,)

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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.

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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

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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

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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

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EERP QoS

• Service can be combined and complex

• QoS measurement in a recursive way

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EERP QoS
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EERP QoS

• SOA as an application pattern
• loosely coupled
• dynamic binding

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EERP QoS

• Ubiquitous service QoS measurement and management
• Stand-alone QoS management
• Dynamic auditing
• Dynamic data exchange with UDDI

Registry
Quality management center
Exchange info
Audit
Audit
Consumer
Provider
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EERP QoS

• 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
1
1
Query and answer
describe
Query and answer
2
Consumer
Provider
Extended service info(with QoS)
QoS Info
Registry Info
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EERP QoS

• Quality index
• throughput time
• value range of a given parameter (for example,
  cost)
• accuracy of a given parameter
• availability

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EERP QoS

• Quality assessment can be multi-objective
• Cost/time/accuracy/ or any combination of them

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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 designdeployment strategy
• EERP integration platform
• EERP Promotion and Implementation

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EERP Service granularity

• Three types of service according its semantic
  meaning
• Fine granularity service
• Medium granularity service
• Coarse granularity service

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EERP Service granularity

• granularity effects service re-usability greatly

Service
Re-use scale
Re-use efficiency
re-usability
stability
coarse
small
high
low
low
large
low
high
high
fine
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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.

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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 its difficult to measure service
  granularity accurately.

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EERP Service granularity

• Service optimization based on service reuse
  efficiency measurement

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EERP Service reconstruction

• Service reconstruction based on stability
  calculation and Bayesian methods

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EERP Service reuse patterns
Principle of locality for component reuse
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EERP Mappings business object and software
component
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EERP in full life-cycle of infomationalization

• requirement analysis
• design
• coding
• testing
• deploy
• system run
• maintenance
• upgrading
• enabling

• Standards
• Prototype
• Service

• Low cost
• Short time
• extensibility
• configurable
• Easy to maintenance
• Dynamic adaptation

• Platform
• Application

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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 designdeployment strategy
• EERP integration platform
• EERP Promotion and Implementation

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Possible work towards Standards and
Specifications

• QoS assessment criteria hierarchy based on SOA
• 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 standard
• EERP business process auditing standard
• Extension of some existing standards

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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.

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QoS Assessment Criteria Hierarchy based on SOA

• Main content
• 1. QoS assessment criteria hierarchy based on
  SOA
• 2. QoS assessment criteria explained in detail
• 3. Method to decide weights of assessment
  criteria

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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.

60
QoS Deployment Specification based on SOA

• Main content
• 1. QoS deployment patterns in SOA systems
• 2. QoS deployment methods with each deployment
  pattern

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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.

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QoS Integration Specification based on SOA

• Main content
• 1. QoS integration patterns in SOA systems
• 2. QoS integration methods with each integration
  pattern

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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.

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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

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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.

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Service Auditing Specification based on SOA

• Main content
• Service quality auditing standard based on SOA

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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.

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EERP Business Process Definition Specification

• Main content
• 1. EERP business process definition based on SOA
• 2. EERP business process description methods

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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.

70
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

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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.

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EERP Business Process Auditing Specification

• Main content
• 1. EERP business process assessment hierarchy
• 2. EERP business process auditing methods

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Possible Extension of Existing Standards and
Specification

• UDDI
• BPEL4WS

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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

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EERP Reference implementations(1/2)
End user
Service register
Service publishing
System admin
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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

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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

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EERPtop-down service design and deployment
strategy
Step 1
Step 3
Step 5
Step 7
Business ontology definition
Service oriented analysis
Service implementation
deploy service to EERP platform
Step 2
Step 6
Step 4
Service testing
Business process discovery definition
Service oriented design
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EERPan agile service improvement strategy
Step 1
Step 2
Step 5
Top-down analysis
Business performance /QoS statistics
Service implementation
Current stat/ Business model
Step 6
Step 3
Service testing
Service oriented analysis
Step 7
Step 4
deploy service to EERP platform
Service oriented design
Step 8
service QoS assessing /retrospecting
Current stat/Business model
Implementation deployment
80
EERPtop-down business process orchestration
strategy
Step 1
Step 3
Step 5
Step 7
Business ontology definition
Service discovery
Service orchestration
execution QoS auditing
Step 6
Step 8
Step 2
Step 4
Service (business process) execution
service QoS recording assessment
Business goal Investigation/ definition
QoS deployment calculation
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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

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EERP Integration Platform(1/3)
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EERP Integration Platform(2/3)
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EERP Integration Platform(3/3)
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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

86
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.

87
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 industry 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 online, and so on.

88
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.

89
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

90

• QA