oracle aia and soa: innovation and process excellence sanat joshi vice president, oracle industries...

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Oracle AIA and SOA: Innovation and Process ExcellenceSanat JoshiVice President, Oracle Industries Business UnitMarch 2009

Oracle Proprietary. Copyright 2006, Oracle Corporation

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement



Agenda

• The Opportunity for Relevance and Revenue

• SOA and AIA for Accelerating Innovation and Process Improvements

• Insight and Analytics• Customer Examples


Key Take-Aways

1. Customers are willing to invest in projects with immediate and measurable

ROI

2. Process Improvement, Manufacturing Operations Applications and SOA

projects remain top priorities for manufacturing companies

3. Oracle AIA and SOA can deliver rapid business process improvements

and reduce IT costs

4. Targeted Business Intelligence projects like Manufacturing Operations

Center deliver large ROI


Mfg Intelligence & Integration : Market Size

The manufacturing operations software application market, currently tremendously underserved, will continue to grow, experiencing a five-year 13% CAGR and surpassing the $8B mark by 2011. - AMR Research


Business Process Improvements is Priority

“Integrating and enhancing existing systems and processes is the most frequently cited technology priority.”

State of the CIO Survey 2007, CIO Magazine

“The 30 Most Important IT Trends for 2007”

November 2006

“When business and IT executives jointly take an end-to-end look at business processes, the resulting investments can have up to ten times the impact of traditional IT cost reduction efforts.” Managing IT in a Downturn: Beyond Cost Cutting, McKinsey & Company, 2008


SOA Spending Continues to Grow


Key Business ProcessesKey Business Processes

Think Business Process – Not IT Applications

ENTERPRISE MANAGEMENT and BUSINESS INTELLIGENCE

OPERATIONS SUPPORTBusiness Management & Control Human Resources Management

OPERATIONSConcept to Market

Demand to Delivery

Sales & Operations Planning

Strategic Sourcing

Supply Chain Execution

ManufacturingWarehouse

ManagementFulfillment/ Logistics

Installation/Commissioning

Ideation and Project/Portfolio

Management

Product Design/ Development

Quality and Cost ManagementPrototype/Pilot New Product Introduction Sustaining Engineering

Financial Control & Reporting

Cash & Treasury Management

IT ManagementEnterprise

Information Mgt.Workforce Deployment

Workforce Retention

RecruitingCompensation Management

Align Organization with Corporate Strategy

Align Market Opportunities with Investments

Design Business Infrastructure

Analyze Deviations & Initiate Corrective Actions

Provide Strategic Financial & Operation Reporting

Production Scheduling

Market to Demand

Quote, Configuration & Order Management

Product, Services, & Catalog

Management

Contract Management

Partner/Channel Management

Compensation Management

Market Planning, Budgeting, Events/ Campaigns

Sales Planning, Budgeting & Execution

Price Management

Service Life Cycle (Delivery to Retire)

Remote ManagementInstallation, Inspection, preventive Management

Contract, Warranty .. Management

Field Service Execution

Service Collaboration Service AnalysisSelf Assisted & Assisted Service

End of Life


Integration /Interactive

ServicesRepository

End to End Processes Span Organizations and Applications

Oracle SOA TechnologiesBPEL Process ManagerEnterprise Services BusBusiness Rules Engine

EdgeApplications

Order to CashProcure to Pay

XML Gateway

WSGIntegration

BrokerIntegration

Broker

IndustrySolutions

Developers

• Orders• Leads• Cases• Customers• Tasks

• Invoices

• Payments

• Financialsanctions(OFAC*)

• Procure-to-pay

• Vendor validation

• Recruiting• Person• Job data• Demographic

data

Integration Broker

Integration Broker


SOA and Oracle Application Integration Architecture

Flexible IT Architecture


Typical BPM Lifecycle

BPMLifecycle

Monitor

Optimize

Business Process

Monitoring(BAM)

Implement

Deploy

Execute

Business Process Execution (BPE)

Model

Simulate

Business Process Analysis (BPA)

Various Phases

LOB Process Owner

Developer

Process Administrator

Business AnalystProcess ArchitectBusiness Engineer

Business Analyst

BPM

Various Stakeholders

Business End User


BPM increases the business value of SOA

Front end Applications

Biz Processes/ Workflows

Service Orchestration

Implementation Services

Business Services(“Composite”)

ApplicationsPackaged/Legacy/Custom

BPM provides a great abstraction for building business systems

SOA provides the platform that bridges the business processes and operational resources

BPM optimizes the use of SOA across core business processes that impact business objectives

BPM provides a great abstraction for building business systems

SOA provides the platform that bridges the business processes and operational resources

BPM optimizes the use of SOA across core business processes that impact business objectives


J2EE Application ServerOracle WebLogic Application Server

Metadata Repository

Messaging

The Oracle SOA Technologies

Apps

AdaptersAdapters B2B B2B

PartnersDB Legacy

CONNECTIVITY

Routing Transform DataQuality

ETL &Replication

Data IntegratorData IntegratorESBESB

Mediation

ROUTING & DATA SERVICES

NativeBPEL

Business Rules

Human Workflow

BPEL Process ManagerBPEL Process Manager

ORCHESTRATION GOVERNANCE

UDDI

DiscoveryPolicies

WS Policies

Security

Web Services Web Services ManagerManager

RegistryRegistry

System Monitoring

Enterprise Enterprise ManagerManager

EventsBusiness Monitoring

BAMBAM BusinessBusinessIntelligenceIntelligence

Analytics

MANAGEMENT&

MONITORING

ApplicationDevelopmentFramework

AnalystTools

BPABPASuiteSuite

JDeveloperJDeveloper


BPEL Process Manager

Enterprise Service Bus

Oracle Data Integrator

The concept of AIA

Siebel CRM

E-Business Suite

Optimize Offer

Forecast Demand

Capture Order

Pick, Pack, Ship

Billing Deduction &

Settlement

AIA Enterprise Business Objects & Services Layer

Customer Sales Order Invoice…

SAP or ISV App

Custom Apps

End to end Composite Business Process

Common Objects, Standardized Business Services

AIA business connectors for all participating Apps

Loosely coupled

Application Business Connector Service

API or Web Service

Composite UI


Linking Processes to Applications

EnterpriseApplications

Web Services

ServiceOrchestrations

Enterprise Business Objects (EBOs)

Business Processes

Application Integration Architecture (AIA)


How is AIA Delivered

Industry Reference Models: Industry Processes and

Integrations

Process Integration Packs: Pre-built composite business

processes across multiple enterprise Applications

Foundation Pack: Common Object Models, SOA Architecture, Best practices

Pre-Built SOAand Direct Integrations

Built using Oracle Fusion Middleware


AIA Foundation Pack Faster, Structured and Repeatable Approach to Process Composition

Service Oriented Reference Architecture• Open & nonproprietary• Includes both content and technology

Enterprise Business Services Library• Prebuilt and standards-based• Application Independent

SOA Governance• Business Service Repository• SOA Test, Error Handling and Diagnostics

Service Oriented Programming Model• Same approach used by Oracle Development• Supports both web service and batch

Oracle’s own implementation of

SOA

Quicker Assembly of Composite Business

Processes

Standardized Building Blocks for Interoperability

& Reusability

End to End Lifecycle Consistency and lower TCO

Evolve to an Enterprise Architecture Leveraging

What You Have

Enterprise Business Processes• Application Independent• Annotated with Business Services

Top-Down App- Independent Business

Processes


Key Cross Application Processes (Examples)

Telecom

Order to Activate

Revenue Management

Customer Care

Retail

Integrated Logistics

Integrated Financial Controls

Multi Channel Order

Management

CPG

Trade Promotion Execution

Trade Promotion

Management

Manufacturing

Lead to Cash

Channel Management

Product Lifecycle

Management

FinancialServices

Account Origination with Core Banking

Other Core Banking

Processes

Multi-Channel Customer Service

Demand Managemen

t

Travel & Trans

Public Sector

Life Sciences

Insurance & Health

EnergyChemicalsAutoAero &

DefenseEducation &

Research

Engineering &

Constrction

Industrial

Mfg

Logistics Service

Providers

Natural Resources

Oil & GasProfessional

Services Utilities


AIA Foundation Pack 2.1.0

Enterprise Object Library : 46 Objects, 460 Service Operations

Lifecycle Extensions: Test Validation, Error Handling, Diagnostics

Governance: Service Repository, Process Models

Standards Support: CCTS 9.0, OAG, ISO 11179

• Account Balance Adjustment

• Advance Shipment Notice

• Bill Of Materials

• Customer Party

• Disbursed Payment

• Engineering Change Order

• Installed Product

• Invoice

• Item

• Item Balance

• Item Composition

• Item Structure

• Location

• Manufacture Item Composition

• Price List

• Purchase Order

• Quote

• Received Payment

• Request For Quote

• Bill of Lading

• Demand Forecast

• Freight Terms

• Shipment Request

• Inventory Reservation

• Accounting Entry

• Credit Memo

• Request For Quote

• Requisition

• Sales Order

• Shipment Plan

• Currency Exchange

• Debit Memo

• Chart of Accounts

• Payment Term

• Payable Invoice

• Pick List

• Promotion

• Shipment Receipt

• Supplier Party

• Sales Quote

• Bank Account

• Transaction Calendar

• Fund Transfer

• Fund Transfer Schedule

• Shipment Advice

• Check


AIA Partner Models & Programs

AIA Partner

Ecosystem

1

SI Strategic CoDevelopment

Model

SI Implementation

Engagement Model

3

2

SI Led Development & Validation

Model

AIA for SAP - Special Partner

Model

4

5

ISV Integration Development &

Validation Model

Partner Model

Key Characteristics

1 SI Strategic Co-Development Model

• Joint investment in development and GTM• Oracle product and IP• Partner positioned as preferred implementer in Named Accounts

2 SI Led Development Model

• Partner invests in building repeatable solutions• Uses AIA Foundation Pack and may contribute to it• Partner solution and IP. Validated, endorsed and promoted by Oracle. Listed on Oracle AIA Solution Catalog

3 SI Implementation Engagement Model

• Awareness, Education and Training on AIA• Deal Support, COE and Labs Setup for AIA products• Cost effective service delivery network for AIA

4 AIA for SAP – Special Partner Model

• Special partner model to support creation of Oracle Apps to SAP PIPs •Multiple GTM & implementation partners possible

5 ISV Integration Development & Validation Model

• ISV builds and owns the AIA business connectors for their Apps• Validated, endorsed and promoted by Oracle• Non-competitive ISVs preferred at the PIP level

The goal is to create a comprehensive partner ecosystem to develop, extend and deploy Oracle AIA


Co-Development Implies Shared Opportunity

Engage System Integrator Partners to co-invest in AIA integrations and new industry applications

Objective• Accelerate partners’ service delivery capability around Oracle solutions• Enhance Oracle’s integration and industry applications roadmap

Engagement Model• Joint investment in development resources and go-to-market activities • Partner selection based on domain expertise

Shared Opportunity• Oracle owns and supports the product• Partner positioned as preferred provider at named accounts for services


Process Monitoring and Continuous Improvement enables Operational Excellence

BI and BAM


Operational Excellence Projects = ROIMfg Integration & Intelligence

Source: AMR Research, 2003

Production efficiency improvement -- 25%

Cycle time improvement -- 13 to 20%

Increase in asset utilization -- 10%

Annual payback potential -- 10x

Plus…• Eliminate discrepancy between manual data and machine data

• Perform preventive maintenance based on machine “actuals” vs. “best guess”

• Achieve visibility for lean and six-sigma programs

• Progressively eliminate on-hold and other production issues

• Gain competitive edge by sharing quality information with customers


Production Capacity Loss Analysis - OEE Identify Improvement Opportunities

Overall Equipment Effectiveness Summary Analysis of Production Loss Types

Details of Causes for Each Loss Type

- VP of Operations

- Plant Manager

- Production Supervisor

For


Oracle Manufacturing Operations Center

The Foundation for Continuous Improvement in Manufacturing Operations

Contextualize Plant Floor Data and

Synchronize with ERP

Contextualize Plant Floor Data and

Synchronize with ERP

Provide Real-Time Intelligence for

Plant Operations

Provide Real-Time Intelligence for

Plant Operations

Leverage Next Generation Manufacturing

Operations Architecture

Leverage Next Generation Manufacturing

Operations Architecture

• Consistent mfg information for all users

• Convert equipment data into useful business info

• Ensure rapid response to manufacturing issues

• Leverage existing plant IT infrastructure

• Enable gradual upgrade of plant systems

• Simplify IT support for your core mfg strategy

• Deliver performance metrics & trends by role

• Easily build dashboards to your unique needs

• Identify performance improvement opportunities


What is Next-Generation Manufacturing Operations Architecture?

“It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice.” -- Alison Smith, February 2008

• Built on a common abstraction layerof production / equipment data

• Leverage existing investments in plant IT infrastructure – no rip & replace

• Allows for gradual upgrade of plant systems

Next-Generation Architecture

AbstractionLayer

ERP

Distributed Plant Systems

Automation & Control

Mfg Ops CenterMfg Ops Center


Oracle BI Role-Based Dashboards and KPIsDeliver Performance Measures by Responsibility

• Pre-built role-specific dashboards, reports, and alerts

• Graphical views

- Trend charts- Graphs- Tables

• Embedded best-practice calculations and KPIs

• Analytic workflows to drive actions

• Drill-downs into details forroot-cause analysis

• Leverages OBIEE+

• Configurable and customizable

- Red-yellow-greenindicators


Key Take-Aways

1. Customers are willing to invest in projects with immediate and measurable

ROI

2. Process Improvement, Manufacturing Operations Applications and SOA

projects remain top priorities for manufacturing companies

3. Oracle AIA and SOA can deliver rapid business process improvements

and reduce IT costs

4. Targeted Business Intelligence projects like Manufacturing Operations

Center deliver large ROI

Oracle Proprietary. Copyright 2006, Oracle CorporationOracle Confidential - Highly Restricted


Manufacturing Customer Examples


Ingersoll Rand uses BIEE for 360O View of Business and

Realizes Improved Sales Cycle, and Reduced Order Mgmt Costs

COMPANY OVERVIEW• Ingersoll Rand is a leading diversified industrial company providing

products, services and integrated solutions to industries ranging from transportation and manufacturing to food retailing, construction, and agriculture.

• Industry: Industrial Goods, Diversified Machinery • Employees: 40,000• Revenue: US$11.23 Billion

CHALLENGES/OPPORTUNITIES• Inability to have a single view of sector’s performance across 38

domestic and international regions, 3 channels, multiple business units, and 137 product categories

• Difficult to react to market - inability to identify root cause and drive corrective actions

• Disparate systems from consolidation, mergers, and acquisitions: Oracle ERP, Siebel CRM, Mfg/Pro, AS/400, mainframe …

SOLUTIONS• Deployed Oracle BI Order Management Analytics to over 60 users

across HQ, Sales, Marketing, and Order Management in 17 weeks (additional 250 user rollout in progress)

• Currently deploying Oracle BI Sales Analytics in 15 weeks• Incorporated data from multiple sources: E-Business Suite, Siebel

CRM, Avenue, and legacy applications (Mfg/Pro, Copes, etc.)

RESULTS

• Established the “single version of truth” to enable monitoring of entire business process from opportunity, quotation & forecast, order, booking, backlog, to invoicing.

• Improved the sales cycles with the ability to perform backlog analysis.

• Decreased the order management costs and increase on-time delivery and customer satisfaction.

• Rolled out consistent key performance indictors across multiple business units.

• Empowered users with timely information tailored to their specific role

• Proactively detected business deviations and alerted affected manager

Jan-08Pending customer approval – Internal Use Only

CUSTOMER PERSPECTIVE

• “…the YTD revenue summary reports including the drill down capabilities. If you haven't seen it I believe you will be suitably impressed (I was). If the other sectors see it, they will want it.....badly!”

• Barry Libenson• CIO


Serv

ice M

on

itori

ng

an

d S

LA

Rep

ort

ing

(O

racle

SO

A M

an

ag

em

en

t P

ack)

OnstarVehicleDetails

Lead BrokerIR Service(thru Cisco

AXG)

VIMSVIN Lookup

GlobalLocator

Dealer Details

GMCardGMCardPoints

Global SalesWorkbenchVehicle Model

Year TrimDetails

GIF OOH Handler - SSL Termination,Authentication (Fixed Password Values),

Protection against malicious content, Denial-of-Service Protection, Payload Size Checks

OWSM Agent - SAML TokenVerification, Content Based Routing (if

required)

GIF OOH Yahoo! Web Service (Business Process) - Composition of finer services

GIF OOH Service Descriptor - SAML TokenGeneration, Schema Conformance Check

SO

AP/

HTTP

SO

AP/

HTTP


Service BP

IR Service BPVIN LookupService BP

Dealer DetailsService BP

GMCardService BP

Vehicle RecallData Service

BP

GSWBService BP

Default Route


Service Proxy

IR ServiceProxy

Dealer DetailsService Proxy

GMCardService Proxy

GSWBService Proxy

SO

AP(R

PC

)/HTTP

Bu

sin

ess P

rocess

Man

ag

er

(Ora

cle

BP

M)

En

terp

rise

Serv

ice B

us

(Ora

cle

ES

B)

Ap

plicati

on

Layer

(Serv

ice

Pro

vid

ers

)

Web

Serv

ices

Man

ag

em

en

t(O

racle

WS

M)

XM

L F

irew

all

(Cis

co A

ce

XM

LG

ate

way)

SO

AP/H

TTP

SO

AP/H

TTP

XM

L/HTTP

SO

AP/H

TTP

SO

AP/H

TTP

GM Internet Firewalls

DM

ZG

M In

tran

et

Inte

rnet

Yahoo! Online Owner Hub

SO

AP/H

TTPS

SO

AP/

HTTPS

Secu

re F

TP

Serv

er

(Tu

mb

lew

eed

Secu

reTra

nsp

ort

)

I ncomingFiles Zone

OutgoingFiles Zone

EA

I Layer

(Su

nJa

va C

AP

S)

BatchInterfaceYahoo! toEverest

BatchInterfaceEverest to

Yahoo!

EverestBatch data feeds to/from

Yahoo!

SFT

P (P

ull)

SFT

P (

Push

)

GMRISVehicle

Recall DataFeed

BatchInterfaceGMRIS toGIF ODS

SFT

P (P

ush

)

Ap

plicati

on

Layer

SO

A F

ram

ew

ork

Com

pon

en

ts f

or

Yah

oo!

OO

H

Yah

oo!

OO

H B

atc

h I

nte

gra

tion

Com

pon

en

ts

SFT

P (P

ull)

GIF ODS(GMRISTables)

EA

I Layer

(SeeB

eyon

dS

RE)

Batch TransferComponents to Everest

SFT

P (P

ush

)over A

NX

SFT

P (P

ull)

over A

NX

SFT

P (

Pull)

Oracle ApplicationContainer (OC4J )

VehicleRecall

I nformationService

SO

AP/H

TTP

JDB

C

Online Owners Hub(s) provides the following information to the Vehicle Owners via the Yahoo portal.

Registering Owner’s vehicleAccount detailsOnline vehicle diagnostics Data (OVD)Card points & sale Promotion/OffersXM Radio account detailsNew OffersRenewal AlertsRecall information

Automotive OEMYahoo Owner Center Initiative


Cisco SystemsStreamline Campaign-to-Cash Business Process

Front-Office Back-Office

CRM

BPELCustomer

FulfillmentRep

PurchasingDirector

“Order toCash”

Process

Self-Service Portal

HumanIntervention

Knowledge WorkerAutomation


Data / Business Component Layer

Global Vehicle Tracking & Logistics

GLTO

Dealer Portal Portal

Web Server Static content

TAM - GLDAP

Presentation Layer

Business Process Management Layer (Orchestration and Workflow)

Locate Process

Call-Off process

Transfer process

Ru

les S

erv

ice La

yer

Service Layer

Search services

Get Search Criteria service

Get Vehicle/order Detail Service

Hide/Make available service

Call-Off Service

Request Transfer Service

Redistribute Service

Confirm TransferService

Notify User

Service

Service integration Layer (ESB)

Data access Layer

GIF

CheckAllocation

service

Check Credit service

C001

Ru

les M

an

ag

em

en

t

GLTO service

Inv.Mgt. Report. Service

Bra

zilian

Data

S

tore

E-D

rive

Ord

er

Bank

OD

S

MD

M

Rule

s R

ep

osito

ry

Re-Consign service

Infr

ast

ruct

ure

Serv

ices

Load

Bala

nci

ng

TX

Monit

ori

ng

Com

mon

Serv

ices

GVCTWeb App

CheckDlr. Active

service

Direct SalesSIVD


G James goes live on MOC

• Australia's leading integrated glass and aluminum organization

• Implementing EBS R12, first phase Financials go-live in 2008

• Implementing MOC, without waiting for roll-out to complete

• Plans to deploy entire suite of Oracle EBS

• Other products include Configurator, Flow Mfg, Financials, Procurement, Order Mgmt, Mobile Supply Chain Applications….

First customer to go-live on MOC, on November 21, 2008

• The project for their Brisbane Extrusion Plant –Tool room Department was completed in 13 weeks, by Oracle Consulting

• The deployment contains all 32 equipment from the Tool Room department that manufactures dies for Aluminum extrusion.

• On the go-live day, the MOC instance contained all transaction activity from August onwards. The MOC set up included 2,000+ items and 80,000 transactions.


GE Healthcare Implements SOA Foundation and Trade Collaborator with Oracle SOA Suite

COMPANY OVERVIEW

• Global provider of transformational medical technologies and services

• Industry: Healthcare• Employees: 42,500+• Revenue: USD$17Bn

CHALLENGES/OPPORTUNITIES

• The challenge of the SOA Foundation project was to implement a set of processes, tools and best practice for the governance, management and orchestration of web services

• The Trade Collaborator Service Enablement project is about providing a consistent, reusable set of services for our disparate ERP systems (E-Business Suite, PeopleSoft, SAP, JDE…) to carry out trade compliance checking.

SOLUTION

• SOA Foundation consists of 3 major components (OWSM, ESB and BPM) run in a clustered configuration.

• The Trade Collaborator service enablement project leverages the routing and adapting features of the ESB layer to adapt to Oracle E-Business Suite.

RESULTS

• Long term benefits of the SOA Foundation are based on the value of having strong governance and management of our SOA from the outset.

• Provides ability to change dynamic business rules without impacting core functionality

• Trade Collaborator service enablement will provide GE Healthcare with a single reusable set of services to facilitate trade compliance checking across P&L’s.

• Trade Collaborator has an indirect benefit of $672K due to a reduction in interface development and infrastructure costs for additional sites and/or businesses.

Jan-08Pending customer approval – Internal Use Only

oracle aia and soa: innovation and process excellence sanat joshi vice president, oracle industries...

Documents

growthink business process

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process improvementsinsight

market opportunities

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cost cutting

cost reduction efforts

preventive managementcontract