IBM eBusiness Infrastructure kevin 22March06psznhn/G53DDB/LectureNotes-2007/... · 2007-03-22 · Case Study: Procure to Pay Process Division Where We Are Heading Customer Shared

1

© 2007 IBM Corporation

ee--business Infrastructurebusiness Infrastructure““Technology for BusinessTechnology for Business””

Kevin MaloneSoftware Technical Strategist

IBM SoftwareFellow of The British Computer Society

Fellow of The Institute of Engineering and Technology

kevin_malone @ uk.ibm.com

22nd March 2006


Microelectronics

Geographies

AsiaPacific

Americas

EMEA:(Europe,

Middle East,Africa)

IBM GlobalServices

Business Consulting Integrated Technology Strategic Outsourcing

Systems and Storage Group

System - ISystem - pSystem - xSystem - zBladesDisk / Tape / …

Software Group

TechnologyGroup Research

Industry

CommunicationsDistributionFinancial ServicesIndustrialPublic. . . . .

IBM Global Financing

LeasingFinancing

320,000+ EMPLOYEESOPERATIONS IN 174 COUNTRIES> $90 ANNUAL REVENUE

InformationLotusRationalTivoliWebSphere

Zurich, Almaden, Austin, New York, Haifa, Delhi, Beijing, Toyko

2


IBM Values …

Dedication to every client's success

Innovation that matters, for the IBM company and for the world

Trust and personal responsibility in all relationships


IBM Research Worldwide

1945 1st IBM Research Lab in NY

(Columbia U) ZürichBeijing

Austin DelhiTokyo

1952San JoseCaliforniaAlmaden

Watson

Haifa

5 Nobel Laureates

#1 In U.S. Patents – now 13 years in a row

3


Bagalore

Copenhagen

Rome

Boeblingen

Barcelona

LexingtonWestfordNorth ReadingCambridgePoughkeepsieSomersHawthorne

Boca RatonAustin

Rochester

TorontoOttawa

PittsburghBethesdaRaleigh

Atlanta Yamato

Shanghai

Beijing

Singapore

LenexaPortland

Menlo ParkOaklandBurlingameCupertinoSVL

BoulderDenver

Tucson

Paris

StainesHursley

DublinWestgate

IBM Software - Research & Development Locations


Connecting All the DotsIntegration is the Key

4


People Processes Information

ExistingApplications & DataPartners New

Applications

Connectivity Services

What are Businesses trying to Achieve ?


1971

1974

1920

1873

1829

Build-out of Interstate highways IMF, World Bank

Separation of savings, investment banks SEC

Current period of Institutional Adjustment

Historical Cycles

Source: “Technological Revolutions and Financial Capital, Carlota Perez, 2002

1908

1875

1829

1771

Steam and Railways

Steel, Electricityand Heavy Engineering

Oil, Automobilesand Mass Production

Information and Telecommunications

The Industrial Revolution

Depression1893

Crash1929

Dot.comCollapse

Panic1847

Panic1797

INNOVATION DEPLOYMENTInterruption Frenzy Synergy Maturity

Formation of Mfg. industryRepeal of Corn Laws opening trade

Joint stock companies Industry exploits economies of scale

5


The Three Waves of IT

2000s / Network Based Computing: e-business Connection / Integration

'80s/'90s Client / Server Local Empowerment

'60s/'70s Centralized Computing Functional Automation

1990s


Phases of e-business Adoption

"An on demand business is an enterprise whose business processes– integrated end-to-end across the company and with key partners, suppliers and customers–can respond with speed to any customer demand, market opportunity or external threat."

"an evolutionary journey"

Integrate InternallyAccess Publish Transact Integrate Externally Adapt Dynamically

ACCESSACCESS INTEGRATIONINTEGRATION ON DEMANDON DEMAND

AA BB CC AA BB CCAA BB CC

Processes Bounded by Functions

Processes Extend Beyond Functions

Business Led Processes Extend to Value Nets

6


The Vertical Silo Problem

Division “A” Division “B” Division “C” Division “D” Division “E”


Process Improvement

7


Case Study: Procure to Pay Process

Division

Where We Are Heading

Customer

Shared Service

Supplier

Outsourced


E01-EDI

Data Warehouse(Interfaces to and from the

Data Warehouse are notdisplayed on this diagram)

G02 - GeneralLedger

A05 - AP

S01 - SalesCorrections

I01 POReceiving

I03 Return toVendor

I06 WarehouseManagement

MaininframePC/NT apps Unix apps3rd Party Interface

S06 - Credit App

P15 EES EmployeeChange Notice

OTHER APPS - PCAP - Collections/Credit

TM - Credit Card DB

ACCTS REC APPS - PC990CORBad Debt

Benefical FeesBeneficial Reconcil

JEAXFJEBFAJEBKAJEDVAJESOAJEVSAJEVSF

NSFTeleCredit Fees

INVENTORY CONTROL APPS - PCCode Alarm

Debit ReceivingsDevo Sales

Display InventoryIn Home

JunkoutsMerchandise Withdrawl

Promo CreditsRTV Accrual

ShrinkAP Research - Inv CntrlAP Research-Addl Rpts

Book to Perpetual InventoryClose Out Reporting

Computer Intelligence DataCount Corrections

Cross Ref for VCB DnldsDamage Write OffDebit Receivings

DFI Vendor DatabaseDisplay Inventory ReconcilDisplay Inventory Reporting

INVENTORY CONTROL APPS - PCDPI/CPI

IC BatchingInventory Adj/Count CorrectInventory Control Reports

Inventory LevelsInventory Roll

Merchandise WithdrawlOpen ReceivingsPI Count Results

PI Time Results from InvPrice Protection

Sales Flash ReportingShrink Reporting

SKU Gross MarginSKU Shrink Level Detail

USMVCB Downloads

Journal Entry Tool Kit

Scorecard - HR

L02-ResourceScheduling(Campbell)

P09 - P17Cyborg

M02 - Millennium

M03 - Millennuim 3.0

Banks - ACH and Pos toPay

Cobra

B01 - StockStatus

S03-Polling

P14 On-line NewHire Entry

CTS

Plan Administrators(401K, PCS, Life,

Unicare, SolomonSmith Barney)

D01 Post LoadBilling

I04 HomeDeliveries

I02 -Transfers

Arthur Planning

I07 PurchaseOrder

I12 EntertainmentSoftware

I05Inventory Info

E13E3 Interface

S04 - Sales Posting

V01-Price ManagementSystem

I10 Cycle PhysicalInventory

I55 SKUInformation

K02Customer Repair

Tracking I35 Early WarningSystem

B02 MerchandiseAnalysis

I13- AutoReplenishment

U18 - CTO

Intercept

I09 Cycle Counts

E02-EmployeePurchase

Texlon 3.5

ACH

Stock Options

I17 Customer PerceivedIn-Stock

U16-Texlon

SiteSeer

C02 - CapitalProjects

F06 - FixedAssets

US Bank ReconFile

Star Repair

EDICoordinator

Mesa Data

NEW SoundscanNPD Group

AIG Warranty Guard

Resumix

Optika

Store BudgetReporting

P16 - Tally Sheet

Cash Receipts/Credit

S05 - HouseCharges

Ad Expense

L01-PromoAnalysis

V02-PriceMarketingSupport

BMP - Busperformance Mngt

StoreScorecard

I11 PriceTesting

Valley Media

P09Bonus/HR

I15 Hand ScanApps

Roadshow

POS

S08 - VertexSalesTax

A04 - CustRefund Chks

Equifax

ICMS Credit

CellularRollover

S09 - DigitalSatelliteSystem

NPD,SoundScan

Sterling VANMailbox (Value)

I18SKU Rep

X92-X96Host to AS400

Communication

S02 -Layaways

Washington,RGIS,

Ntl Bus Systems

V04-SignSystem

I14 Count CorrectionsNARM

P01-EmployeeMasterfile

I06 - CustomerOrder

FrickCo

UAR - Universal AccountReconcilliation

DepositoryBanks

S07 - CellPhones

S11 - ISPTracking

AAS

Fringe PO

Cash Over/Short

L60 MDFCoop SKU Selection

Tool

SKUPerformance

SupplierCompliance

1

I35 - CEI

ASIS

Misc Accounting/Finance Apps - PC/NTCOBA (Corp office Budget Assistant)

PCBS(Profit Center Budget System)Merchandising Budget

AIMSMerch Mngr Approval

Batch ForcastingAd Measurement

AIMS Admin

AIMSReportingAd

Launcher

V03- MktReactions

SpecSource

CTO2.Bestbuy.com

RebateTransfer

SignSystem

CopyWriter'sWorkspace

ELTPowerSuite

StoreMonitor

AIS Calendar

Stores & Mrkts

Due Dates

Smart Plus

InsertionsOrders

BudgetAnalysis Tool

Print CostingInvoice App

AIS Reports

BroadcastFilter

Smart PlusLauncher

GeneralMaintenance

Printer PO

PrinterMaintenance

VendorMaintenance

Vendor Setup

Connect 3

Connect 3Reports

Connect 3PDF Transfe

Spec SourceSKU Tracking

S20-SalesPolling

Prodigy

PSP

In-HomeRepair

WarrantyBillingSystem

Process Servers(Imaging)

Prepared by Michelle Mills

The IT reality is…………..

8


ApplicationApplicationServerServer

EnterpriseEnterprise

Basic Transport

ClientClientClientClient

ClientClientClientClient

19901990

NetworkNetworkClientClientNetworkNetwork

ClientClient


Service Service ProviderProvider

TodayToday

Intelligent Network

NetworkNetworkClientClient


Security DirectoryNetwork Mgmt.

Mobility

Policy Mgmt.Caching Transcoding

Multicast Class of Service



EnterpriseEnterprise

Infrastructures are Evolving


Horizontal Integration is the New Challenge

Bridging the gap between business transformation and IT Bridging the gap between business transformation and IT

DatabasesW orld W ideW eb

W ebServer

Transactions

SupplierNetw orks

InternalSystem s

Custom erConnections

9


Quality of Service Requirements

Security $1K $2M $20M+Risk of Breach

SIMPLE INTERMEDIATE ADVANCED

Scalability 200 2,400 18MTransactions volume/Day

Availability $1K $200K $20MCost of outage/Human resources

Flexibility 5% 10% 75%% of data Required

Interoperability 2 4-8 8-16Number of participants applications types


Open Standards are not a Luxury

WebServices

OpenSource

HTML

J2EEXML

Standards Adoption

Industry Participation

Standards Development Open Internet

Open Platform

Web Services Leadership

Windows Linux AIX Solaris HP-UX OS/400 zOS

Universal Tool Platform

Enable integration across value-net / Increase deployment speed / Reduce costs

10


Software for an On Demand Infrastructure

RunModel + Assemble

ManageDeployIntegrate

ProcessesIntegrate People

Integrate Information


Software Development Drives Innovation

* Gartner, April 2003, Embedded Software Development and Management - Automotive Industry

Source: Mercedes

11


Today, many people work like this...


People could work like this …personalised and integrated with the business role

12


Virtualization of Integration

Portal


““Desktop of the FutureDesktop of the Future””


Evolution of integration technologies…Message Queuing Traditional

Message BrokeringEnterprise

Service Brokering

Application Application

Degree of Flexibility and Re-use

Direct Connectivity

Application

Line

s of

cod

e

Application Services

Integration logic

IntegrationLogic

Middleware

Middleware

Service Oriented Middleware

Integration logic

13


How much data exists?

PaperFilmVideotapeCDs

Digital camerasTape

Disk drivesFile systems

300 Exabytes

20 Exabytes

1000 Petabytes

100 Terabytes

HTML

AnalogAnalogdatadata

OffOff--lineline

OnlineOnline

.InternetInternet

1012

1015

1018

1018


Creating value with informationCreating value with information

Managing transactions

Managing content

Gaining insight

Information as a service

ValueValue

TimeTime

Information On Demand

Information on demand

14


IT Service Management

Manual processesAd hoc practicesReactive and tactically alignedResource intensive

Automated processes Local expertiseProactive and PredictiveAutomated provisioning

Integrated processesBest practicesAutomated, self managed environmentDynamic provisioning

IT Focus Business Focus

BasicManaged

PredictiveAdaptive

On Demand

Element Management

IT SystemsManagement

IT Service Management

Levels of Automation


Converted 3 million lines of C++ to JavaReuse of Java components driving 1/3 reduction in code base 3 times/day, 6 days/week HTML rolls to the siteOnce a week significant feature releases go live-to-siteDeployed internationally within 3 weeks Nearly 30K lines of code change weekly8000 transactions / second1000 million hits per day

Infrastructure Delivering Business

“With over 8,000 transactions per second, millions of users see how we do our jobs every day.”

TMTM

15


end-of-life used/vintagenew/scarce in-season retail

The total value of goods sold on the site - $34 Billion per annum

• From obscure to collectable art to memorabilia to weird – everything’s available.• 135 Million registered users – 40% growth p.a.• Average trade value >$1000 per second•Represents 24% of all of U.S. e-commerce*

*Source IDC, cited in eBay Press Release Feb 10,2005

Where eBay works


On a typical day, eBay sells…..Over 1 million items

A Video game every 8 seconds

An article of clothing every 2 seconds

A car every hour

A digital camera every minute

A piece of Jewelry every 80 seconds

16


11 million bids

makes 9 million database calls

pumps out 40 million e-mails

>5 “Libraries of Congress” transmitted

spews out a log file that's a terabyte in size

> 135 Million users !!

On an average day …..TMTM


eBay APIs – Driving volumes of transactions

eBay Web Services supports some 2.5 billion API calls per month

Approximately half of all listings on eBay.com involve eBay Web Services

25,000 outside developers are using the APIs

Participating developers have produced more than 1,600 applications

17


Web 2.0 Themes

The Intelligent Web Harnessing Collective

Intelligence

Tools: RSS, AJAX, PHP,

Ruby, Lightweight

Java

End of the Software Release

Cycle

Software above a single device

Data is theCompetitive Advantage

Standards: REST, XHTML, CSS

Techniques: Mash-up, wiki,

tagging, blogging

Rich user experiences

Light-weight programming

models

Web as a Platform


IBM Software -- Middleware Platform

Linux Unix Windows OS/400 z/OS

Servers Storage

ProcessesProcesses

SystemsEnvironment

WebSphereWebSphere DB2DB2 TivoliTivoli RationalRationalLotus

ApplicationsApplications

MiddlewareEnvironmentMiddlewareEnvironment

LPS CRP

Information on demand using the power of integrated information.

Intelligent management software for the on demand world.

Software for collaboration and human productivity.

Software development platform for an on demand world.

Integration and application infrastructure software.

18



ExistingApplications & DataPartners New

Applications

Service Oriented Architecture

What are Businesses trying to Achieve ?

Partners


The New IT Infrastructure

DatabasesWorld WideWeb

WebServer

Transactions

SupplierNetworks

InternalSystems

CustomerConnections

End-to-end integration of transactionsLeverage existing applications and dataApplications act as processesWorkload optimized to any serverScalable, available, reliable, secure and manageable

Run

Visit ibm.com / software

19


ibm.com / softwareibm.com/software

IBM Software

®

Thank YouKevin_Malone @ uk.ibm.com

Build ON demand businessinfrastructures with IBM Software


Documents

IBM eBusiness Infrastructure kevin 22March06psznhn/G53DDB/LectureNotes-2007/... · 2007-03-22 · Case Study: Procure to Pay Process Division Where We Are Heading Customer Shared