Walking With Dinos Hawthorn Merlino v3

Embed Size (px)

Citation preview

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    1/27

    Walking with Dinosaurs

    Innovating above Packaged Applications (ERP, CRM, HRMS)

    Richard J. Merlino

    Business Process & Technology Integration Manager,

    UTC/Pratt & Whitney

    Andrew HawthornSr. Manager, AquaLogic BPM, BEA Systems

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    2/27

    Fact: Dinosaurs are among us

    ERP and other apps are:

    Strategic

    Essential to core processes

    Complicated

    Inflexible

    Unavoidable

    Companies must find ways to bridge people,

    processes, and information to:

    Operate end-to-end business processes spanning multipleorganizations, geographies and systems

    Collaborate more effectively internally and externally

    React quickly and cost-effectively to change

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    3/27

    Laggards will find that one morning theircompetitors who use the exact same ERP

    software are suddenly zooming ahead,

    shortening lead times, introducing newproducts faster, and reacting faster to changingmarket conditions.

    IT groups that hope to respond to the businessfaster need to start making decisions, setting astrategy, and building the skills to apply SOA

    and BPM as a competitive weapon.

    Source: AMR Research Report SOA and BPM forEnterprise Applications: A Dose of Reality, May 2007

    Industry Analysts Agree

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    4/27

    Source: Accenture 2007

    Innovation and ContinuousImprovements at Lower TCO

    Reduction in TCO

    Target

    quadrant

    Bus

    inessVa

    lueDeliveredbyIT

    Custom Apps

    Packaged AppsLowered TCO,but less

    differentiatedcapabilities

    Differentiatedcapabilities builton standardized

    platforms &

    services (lowerTCO)

    Service-basedApps

    CompositeApps

    $27

    New

    $73Maintai

    n

    IT Budget Demand exceeds supply

    Must-do projects swallowsubstantial proportion

    Infrastructure built piecemeal

    Heterogeneous technologies

    Legacy, bespoke andcustomized applications

    Source: Boston Consulting Group

    Business-IT AlignmentContinuous improvement

    implementations

    Source: BEA Customer Perspective

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    5/27

    Sales Person ProcurementManager

    ProcurementManager

    ProcurementManager

    ProcurementManager

    WarehouseManager

    Enter customer

    sales order

    Analysis of inventory

    status

    Revenue impact of

    backlog Initiate correctiveaction

    Delivery calls against

    contracts

    Order handling

    Delivery

    Request/Response Supplier list forproduct ID

    Supplier RFQ to

    multiple vendors

    Request/Response Purchase orders toselected vendors

    Response PO Confirmationdisplayed to inventory

    manager

    Goods receipt isservice enabled via

    interactive form

    Portal

    B2B integration

    Portal

    Bus. Intelligence

    Portal

    Bus. intelligence Data services B2B integration

    Portal Portal

    B2B integration

    Portal

    Data services B2B integration

    Roles

    Org

    Unit

    Process

    Descrip

    tion

    Ente

    rprise

    Serv

    ices

    Techn

    ology

    Capab

    ilities

    Create SalesOrder

    AnalyzeStock

    RequestQuotation

    PlacePO

    ConfirmOrder

    ReceiveGoods

    Scenario

    Business

    Applications

    SA

    P

    SAP

    BI S

    AP

    BI N

    on-

    SAP

    SAP

    BI S

    AP

    BI S

    A

    PSD MM, WM MM MM, FI, CO MM, PP, SD MM, WM, FI, CO

    What is SAP Recommendingto its R/3 Install Base?

    Additional Enabling Infrastructure outside of Core R/3

    Core SAP R/3

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    6/27

    Traditional Enterprise Applications Fall Short

    *Source: Aberdeen Survey of 125 enterprises, Aligning IT to Business Processes: How BPM is

    Complementing ERP and Custom Applications, Aberdeen Group, May 2007.

    My software applications

    allow me to quickly adapt tomost customer requirements

    My software applicationsforce me to put limits onservices I can offer

    My software applicationsforce me to employ somemanual processes to meetcustomer requirements

    My software applications offerlittle or no flexibility to meetindividual customer servicerequirements

    15

    13

    21

    51

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    7/27

    Application Platforms: Stuck in the 90s

    While new technologies have emerged

    application platforms have not kept up

    Existing platforms are designed for coding

    paradigms, not rapid assembly and change

    Unable to use new business models, e.g.

    pay-per-use, SaaS

    New technologies are disjoint solutions to

    point problems

    Testing and deployment are not integrated

    Governance and management are after the

    fact bolt-ons

    Real-time, event-driven applications are not

    supported

    While new technologies have emerged

    Web 2.0Social Computing

    Business ProcessManagement

    Service OrientedArchitecture

    Collaboration

    Virtualization

    Real-Time Events

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    8/27

    A Simplified Platform for Dynamic BusinessApplications

    BEA Differentiators:

    Social computing and user-composed

    composite applications

    BPM and SOA assets at the core for

    change-ready applications

    Unified compose, test & deploy

    experience

    Virtualization for scale-out and

    performance

    Integrated governance, management

    and administration

    Multi-tenant

    Enabling Faster Time to Market Through Convergence & Simplification

    Billing via configurable units of use

    Per user

    Per transaction

    Per resource (e.g. CPU)

    Customer defined

    Web 2.0CollaborationPortal

    Business Process &

    Rules Management

    Services & EventManagement

    VirtualizationFabricG

    overnanc

    e,Man

    age

    ment

    &Adminis

    tra

    tion

    Integrated

    Assembly,Testing

    &Deploym

    ent

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    9/27

    Product& Service

    Leadership

    OperationalExcellence

    Process Examples Benefitingfrom Such Innovations

    CustomerIntimacy

    Innovation Networks

    Accelerating ProductLaunch

    Product PortfolioManagement

    Market Driven, BrandExcellence

    Demand Sensing &Shaping

    Personalized CustomerExperience

    Customer CentricFulfilment

    Proactive Service

    Lean / Six Sigma

    Demand SupplyMatching (S&OP, ATP)

    Real-time Tracking ofPhysical Events

    Shared Services /Finance / HR Excellence

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    10/27

    Convergence of TechnologiesCreates New Opportunities

    Web 2.0 for the Enterprise

    Business Process Management

    Service-Oriented Architecture

    Business User Participation

    Business and IT Alignment

    Infrastructure Agility

    BusinessAgility

    Dynamic FoundationVirtualization

    Real-TimeEvents

    Responsiveness and Reliability

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    11/27

    The VisionThe Liquid Enterprise

    SOAInfrastructure

    EnterpriseFoundation

    Packaged Custom Software-as-a-Service

    Service Integration

    Governanc

    e

    Management&S

    ecurity

    ExtremeTransactionProcessing

    ServiceEnablement

    Applications

    VirtualizationConverged

    Telecom

    Real Timeand

    Events

    CoreApplication

    Platform

    Business Services Data Services

    Enterprise Social Computing

    Multi-ChannelCommerce

    KnowledgeManagement

    CustomerService

    Web 2.0

    Portals Collaboration InformationManagement

    Business Process Management

    Modelingand Simulation

    Deploymentand Execution

    Business ActivityManagement

    Real-time ProcessOptimization

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    12/27

    Richard J. Merlino

    Business Process & Technology Integration ManagerUTC/Pratt & Whitney

    Pratt & Whitney Innovates Over and Above SAP

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    13/27

    United Technologies Corporation (UTC)Pratt & Whitney (PW) Corporate Overview

    Commercial

    Engines

    Military

    Engines

    P&W

    Canada

    Power

    Systems P&W

    Rocketdyne

    OtisPratt &Whitney

    Carrier

    Sikorsky

    Fire & Security

    Hamilton

    Sundstrand

    UTC 2007 Revenue$54.8B

    PW 2007 Revenue$12.1B

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    14/27

    Pratt & Whitney (PW)

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    15/27

    Business Landscape Highly matrixed industry up to 50 touches at

    major customers Growing Competition existing ones are

    getting more aggressive, new entrants Challenging Assets build, manage and

    maintain very costly Complex Assets some of most technically

    advanced in world Extremely Secure DoD, FAA, customers,

    suppliers, internal Process Centric safety requires rigorous

    processes

    Collaboration Essential sharing across entirevalue chain

    Personal build strong relationships, 20 year

    LTAs are common Customize businesses choose how to work Extensive IT Landscape hundreds of

    systems store/manage data

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    16/27

    Data

    App

    Interface

    Data

    App

    Interface

    Data

    App

    Interface

    Data

    App

    Interface

    Data

    App

    Interface

    HR Finance IT Eng Ops

    Data Sharing Technologies

    Application Integration Technologies

    Workflow Technologies

    IT Landscape

    Portal Technologies

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    17/27

    Challenges within IT

    Changes in business process

    IT systems are not able to keep up with the business

    Greater awareness of IT within the business

    Programming a common skill within businesses Higher expectations placed on IT to deliver solutions

    Resource Constraints

    Funding for projects is competitive

    Finding appropriate resources to work initiatives can be difficult

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    18/27

    HR

    Mgmt

    Finance

    IT

    Sales

    Legal

    OpsEng

    Purch

    Customer

    Data Sharing Technologies

    Application Integration Technologies

    Portal Technologies

    Workflow Technologies

    Traditional ERP systems will become thetransactional horsepower behind business

    BPM will help to move value streams forward andeliminate the White Space

    Users will interact with ERP systems via secondaryuser interfaces

    Process Centric Service Oriented Solution

    Transformational ITApplication-Centric Process-Centric

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    19/27

    BEA AquaLogic Collaboration handlesnotification, security, & storage

    .txt file is exported via SAP job tocollaboration web folder

    Minimal development time and training

    An efficient method to share SAP data withvendors with Minimal human intervention Secure Quick set up

    Opportunities & Challenges

    Solution Powered by BEA

    Innovating Over SAP # 1: Vendor CollaborationAquaLogic Collaboration for Innovation, Agility and Optimization

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    20/27

    BEA AquaLogic User Interaction fullyinteracts with SAP via BAPIs

    Single sign on through LDAP integration

    Integration of SAP Time & Attendanceinto internal portal Minimize use of custom connections Improved user interface

    Opportunities & Challenges

    Solution Powered by BEA

    Innovating Over SAP # 2: Web CATS SystemAquaLogic User Interaction for Innovation, Agility and Optimization

    https://mysite.pw.utc.com/pwportal/mypage/mypage.asp?UserID=10974&PageID=-10974https://mysite.pw.utc.com/pwportal/mypage/mypage.asp?UserID=10974&PageID=-10974
  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    21/27

    Copyright United Technologies, Pratt & Whitney Proprietary

    16

    Overdue

    Receivables

    Work Stops

    Sold

    Overdue

    CUSTOMER INFO-CENTER

    Contacts

    Engine

    Fleet

    Customer

    Help Desk

    Engine

    Events

    Becomes reality!

    ManagementDashboards

    Customercomposites

    Innovating Over SAP # 3 InfocentersAquaLogic User Interaction for Innovation, Agility and Optimization

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    22/27

    Collaboration acrossenterprise firewalls

    for engine overhaul

    Innovating Over SAP # 4 eBusiness Portal

    Customer hascomplete view

    of real timeoverhaul status

    1000s of processsteps and approvals for

    certification are logged.

    Communities givesophisticated overview

    of all engines inthe aggregate

    AquaLogic User Interaction for Innovation, Agility and Optimization

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    23/27

    Line Maintenance Order toCash

    Quality Process ClinicManagement

    Help Center Routing

    Overhaul Records Coordination

    Employee Awards

    Engine events Management

    Engine Wash

    Shop Processes

    Innovating Over SAP # 5 Value Stream IntegrationAquaLogic BPM for Innovation, Agility and Optimization

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    24/27

    Customer satisfaction over 100% increase in

    satisfaction score

    Employee satisfaction

    search and information access

    Internal business process savings ESN projectroom collaboration = headcount reduction

    External (Customer/Supplier/Partner)

    business process savings inventory portlet

    Immediate hard costs savings inherent security & user framework

    Cost avoidance savings engine performance

    monitoring extensive savings per event

    New revenue opportunities marketing portlet

    Innovations Driving Substantial BenefitsAcross the landscape

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    25/27

    In Summary

    Back end integration is a great way to drive ITtransformation:

    ERP manages the enterprise

    Portal + Collaboration gives the user a rich flexible interface

    BPM acts as the messaging bus for process steps

    SOA platform makes it work efficiently and cost effectively

    Integration level should be determined based on the goalof the project

    Data aggregation from multiple sources

    Improved user interface

    Removal of an existing application

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    26/27

    Why BEA?

    BEA offers a flexible and complete solution todrive innovation, agility and optimization withPortals/Collaboration, BPM and SOA

    BEAs solution is independent of hardware andenterprise applications and can seamlessly co-exists in the current IT landscape

    BEAs willingness to team where required

  • 8/14/2019 Walking With Dinos Hawthorn Merlino v3

    27/27

    Tangible next steps

    1.DiscoverhowaBEAcantransformyourorganizationBEADiscoveryWorkshop

    3.TryIt.

    Downloadtodayandpilotaproofofconcept

    2.

    BenchmarkyourOrganizationTaketheBEASOA&BPMAssessments.