order to cash process flow
TRANSCRIPT
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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 decision. The development, release, and timing of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Victoria Whitlock VP ComplianceEnpria, Inc.
Jeffrey HutchinsSenior Principal Product ManagerOracle Corporation
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Enabling Inter-Enterprise Connectivity
Addressing compliance, security, visibility, scalability, and standards from the Business and IT aspects
Agenda
• Introduction• Defining the problem?• Solving the problem?• Process example: “Order-to-Cash”
Who we are…
Victoria WhitlockBusiness Focused• 22 years of IT experience• Author• Recognized SME
• Compliance• Business Integration• Data Warehousing• Business Intelligence• Data Base Administrator• Corporate Educator
Jeffrey HutchinsImplementation Focused• 24 years of IT experience • Author• Recognized SME
• Standards• Integration Architecture• Data Warehousing• Business Intelligence• Application Developer• Corporate Educator
Common IssuesCompliance & Information Technology
• Information Security Management• Electronic Document Management• Poor and Inconsistent Documentation• Data / Customer / Process Integration• Collaboration and Messaging• Authentication Technologies• Storage Technology• Lack of Communication• System Development Life Cycle• Change Management• Segregation of Duties
The Revelation
Our issues are the same !!!
Compliance and Integration• Business Processes that need to be enabled• Physical architectures to enable the Business Process• Compliance and Integration have the same goals
“End-to-end Connectivity is the Lifecycle of a transaction from both a Business and a Information Technology View”
Victoria Whitlock & Jeffrey Hutchins
Current Culture: Compliance
• Government Compliance • Industry Standards Organizations• Corporate Standards • International Standards• Accounting Standards• Industry Specific Compliance
Current Culture: IT
• Managements attitude about IT spend• Y2K over spend• Cavalier approach and “.com” over spend• IT does not generate revenue
• Attitudes about Compliance• Not Y2K• Expenses and no value perceived
• Everyone wants the mantra: “To gain a competitive edge, fastest response to industry changes, to reduce operational cost and to reduce Total Cost of Ownership.”
This is not new:History of Accounting / Computer
3500 BC Accounting begins3000 BC Dust abacus is invented, probably in Babylonia500 BC Bead and wire abacus originates in Egypt50 BC Roman Corporations Established
1789 US Federal Government1833 Charles Babbage designs the Analytical Machine1886 William Burroughs develops the mechanical adding machine 1936 Security Exchange Commission established – GAAP begun1938 Hewlett-Packard is founded1944 Grace Murray Hopper is the first programmer for the Mark I1946 ENIAC (Electronic Numerical Integrator and Computer)
This is not new:History of Accounting / Computer
1959 COBOL is defined based on Grace Hoppers Flow-Matic1967 First issue of ComputerWorld is published1971 Intel Corporation announces the first microprocessor1977 Oracle Corporation founded1978 The first COMDEX trade show is held1982 Sun Microsystems is founded1984 Apple introduces the Macintosh computer1990 Microsoft introduces Windows 3.01991 World Wide Web established2002 Sarbarnes-Oxley passed
What is the problem? Vocabulary
BusinessBusinessITITTermTermSarbarnes-Oxley ActService Oriented
ArchitectureSOA
Business SolutionDigital SignatureNon-Repudiation
To declare or make legally valid. To mark with an indication of official sanction. To establish the soundness of. To corroborate.
Data structure validation
Validation
To give permission. A manager authorizes a transaction by signing a voucher authorizing the disbursement.
Privilege to perform a function
Authorization
Transactions are authorized, and receipts and expenditures are being made only in accordance with authorizations of management.
System Authentication
Authentication
The words are the same but the meaning is not…
Common Business Vocabulary
• GovernanceMethodology for the implementation of good engineering practices
• ComplianceThe enforcement of governance by law
• Internal Controls An integrated process of checks and balances established by management
How to solve this problem?• Information Technology
Establish a “Baseline” of your IT architecture• Corporate
Establish a “Baseline” of your business processes• How to uses the baselines
- Are you using it? - Are they complete?- Are they in sync?
Integration
Business Unit
Compliance
Information Technology
“IT must become a partner in the Business Solution in order to enabling security, visibility and scalability”
Case Study: “Order-to-Cash”A simplified view of a common business / IT process
Ship NoticeShip NoticeShip Notice
InvoiceInvoiceInvoice
PaymentPaymentPayment
Purchase OrderPurchase OrderPurchase Order
Jeff’s Distributors
Victoria’s Vineyards
Business Flow: Order-to-CashA simplified view
PO Processed
PO PO ProcessedProcessed
Valid PO
Valid Valid POPO
NoNo Manager notified for Resolution
Manager Manager notified for notified for ResolutionResolution
YesYes
PIC Slip createdPIC Slip createdPIC Slip created
Inventory ReducedInventory ReducedInventory Reduced
Product to shippingProduct to shippingProduct to shipping
Shipping Notice Generated
Shipping Notice Shipping Notice GeneratedGenerated
Invoice Generated
Invoice Invoice GeneratedGenerated
Payment ProcessedPayment Payment
ProcessedProcessedPayment Applied
Payment Payment AppliedApplied
PO Received
PO PO ReceivedReceived
ASN Initiated
ASN ASN InitiatedInitiated
Invoice InitiatedInvoice Invoice InitiatedInitiated
Payment ReceivedPayment Payment ReceivedReceived
Controls: Internal & Key InternalBusiness Objective
Invoice generated
Payment Waiting
Product to Shipping
Ship Notice generated
Notification of Shipping
Notification of Payment
Inventory reduced
PIC Slip created
Reconciliation of a processing failure
Notification of Purchase Order received
Internal Control
Notification of Payment received
Ship Notice Initiated
Inventory reduced
Review of manager’s reconciliation process
Purchase Order received
Key Internal Control
Notification of Payment received
Purchase Order received
Common IT Vocabulary
• ApplicationAny endpoint application: Trading Partner, Legacy, Packaged, Composite or Portal..
• MiddlewareA centralized platform that enables an architecture to integrate all applications.
• B2B GatewayA component of the middleware that manages all inter-enterprise connectivity
• Canonical XML SchemaA superset data structure representing a business object “Create PO”. Messages from each application are then mapped to this construct.
B2B Gateway
AS2: MDN
AS2: MDN
HTT
P Se
rver
850: PO850: PO
AS2: MDN
AS2: MDN
856: ASN856: ASN
AS2: MDN
AS2: MDN
810: Invoice810: Invoice
AS2: MDN
AS2: MDN
820:Payment820:Payment
DMZ997: FA
997: FA
997: FA
997: FA
EDI850
EDI856
EDI810
EDI820
Detailed IT Flow: Order-to-Cash
Application
Ship ConfirmEvent TriggeredShip Confirm
Event Triggered
Invoice TriggeredInvoice Triggered
Order ProcessOrder Import
Open Interface Tables
Order ProcessOrder Import
Open Interface Tables
AutoLockBox Process
Open Interface Tables
AutoLockBox Process
Open Interface Tables
Invoice ProcessInvoice Process
Middleware
DequeuePO
DequeuePO XSLT TransformXSLT Transform
DB InsertDB Insert
DB QueryDB Query
DB QueryDB Query
DB InsertDB Insert
EnqueueASN
EnqueueASN XSLT TransformXSLT Transform
DequeueInvoice
DequeueInvoice XSLT TransformXSLT Transform
DequeuePayment
DequeuePayment XSLT TransformXSLT Transform
XML850
XML856
XML810
XML820
IT Flow: Order-to-Cash
Enterprise Service BusBusiness Activity Monitoring
OracleeBusiness Suite
POPO
Ship NoticeShip Notice
InvoiceInvoice
Payment Payment
• Document Processing• Process Orchestration• Human Workflow
Oracle Integration B2B
POPO
Ship NoticeShip Notice
InvoiceInvoice
PaymentPayment
PO Received
PO Received
ASNSent
ASNSent
InvoiceSent
InvoiceSent
PaymentReceived
PaymentReceived
• Inter-Enterprise Connectivity• Trading Partners Mgmt• Document Mgmt
• Batching• Encryption• Validation• Translation
POPO
Ship NoticeShip Notice
InvoiceInvoice
PaymentPayment
• Intra-Enterprise Connectivity• Document Mgmt
• Validation• Transformation
• Process Orchestration• Human Workflow• Error Handling
OracleBPEL Process Manager
Oracle Fusion Middleware
Integration Methodology: Points to Identity and document
• Integration Patterns: What are you integrating?
• Process: “Order-to-Cash”
• Business Objectives: Management’s requirements
• Internal Controls: The Checks and Balances
• Key Internal Controls: The Auditing points
• Compliance requirements• Architecture (middleware) requirements
How is the data accessed, structured, and processed?
Trading Partner:Oracle Integration B2B
Process• Each transaction set is a
separate transaction• Translation EDI XML• AS2: Exchange process
Structure: EDI X12• 850 Purchase Order• 856 Shipping Notice• 810 Invoice• 820 Payments
Access• Trading Partner via AS2• BPEL PM via AQ
Middleware:Oracle BPEL Process Manager
Process• Transformation • Business process• Human Workflow process
Structure: XML Schema• EDI XML from Trading Partner• DB XML from Application • Canonical XML as transition
Access• Integration B2B via AQ• Application via DB
Application:Oracle eBusiness Suite
Process• Setup to use API• Each transaction set has a
separate Concurrent Program to process data.
Structure: Tabular• Inbound: Interface tables• Outbound: Database Views
Access• DB: Schema
How are errors managed?Trading Partner:Oracle Integration B2B
• Outbound errors:Middleware notified
• Inbound errors:Trading Partner notified
Error Levels• Transport
Connection failed• Exchange
Data not receivedData not sentSecurity violation
• BusinessData not valid
• Outbound errors:Initiates a Workflow
• Inbound errors:Initiates a Workflow
Middleware:Oracle BPEL Process Manager
Human Workflow An Error Handling process was created to receive errors from both the Trading Partner and the Application. If an error occurs, a manager is notified for resolution.
• Outbound errors:Middleware notified
• Inbound errors:Middleware notified
Application:Oracle eBusiness Suite
Concurrent Program• Inbound:
Any error results in the rejection of the data and a notification via a Oracle Workflow
Outbound:Any error results in a notification via a Oracle Workflow
What are the security requirements?
Trading Partner:Oracle Integration B2B
• Authentication• Authorization• Secure Transport• Encryption• Non-Repudiation
• Origin & Content• Receipt
Middleware:Oracle BPEL Process Manager
• Authentication• Authorization• Document Retention• Password Management• Role Management
Application:Oracle eBusiness Suite
• Authentication• Authorization• Database Access• Role Management
What are the visibility and monitoring requirements?
Oracle Business Activity MonitoringBusiness
• How long does it take to process a PO?• How long does it take to process a PO and respond with an ASN?• What is the average time for the completion of the “Order-to-Cash” cycle?
IT• What are the average number of errors by Trading Partner?• What are the average performance metrics for each component?
Trading Partner:Oracle Integration B2B
Reports / Monitoring• Business Message • Error Reports
Middleware: Oracle BPEL Process Manager
Reports / Monitoring• Operational• Administrative
Application:Oracle eBusiness Suite
Reports• Business• Financial
Compliance and Integration
Compliance and Integration enables you to focus on the core corporate competencies your business and allows you to create a flexible, scalable, integration business structure…
It does matter….
• Buying a tool does not make you Compliant
• The Cost of Not Doing itBy 2006, public companies that do not adopt a compliance management architecture will spend 50 percent more annually to achieve Sarbanes-Oxley compliance According to Gartner, Inc.
• Information Security Management• Electronic Document Management• Poor and Inconsistent Documentation• Data / Customer / Process Integration• Collaboration and Messaging• Authentication Technologies• Storage Technology• Lack of Communication• System Development Life Cycle• Change Management• Segregation of Duties
Common Issues SolvedBenefits of Compliance and Integration
The technology to address these issues: Oracle Fusion Middleware
• Collaborative Enterprise Portal• Development Tools• Composition and Process Orchestration• Information, Aggregation and Analysis• Enterprise Application Server• Management• Security• Grid Computing
The Business Objectives that drive the Technology Choices
• Buying a tools does not solve the answer• Use technology to support you business
needs• Design solutions that are flexible to grow
with your business.• Include business, finance and technology in
the decision process
If so then What…
Integration + Compliance = Good Corporate Governance
• The Business Objectives MUST drive the technology • Governance is the implementation of good engineering practices• Compliance is the enforcement of governance by law• The Fusion Middleware, when driven by the above:
Can enable Good Corporate Governance to a deliver flexible, scalable, integrated business structure than will support your tactical and strategic goals.
Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S
Learn the TechnologyVisit OTN Microsites: otn.oracle.com
Try the SoftwareVisit the Hands-On Labs in Moscone West 1003, 1004
Ask Our ExpertsFusion Middleware Demogrounds; Sessions
Acronyms
EDI Transaction Set StandardX12eXtensible Markup LanguageXMLHyperText Markup LanguageHTTPExtraction Translation and LoadETLEnterprise Service BusESBElectronic Data InterchangeEDI
Business Process Execution Language BPELBusiness Activity MonitoringBAM
Business-to-Business (B2B)B2B
Applicability Statement 2AS2
Business Activity MonitoringBAMBusiness intelligencesBIBusiness Process ManagementBPM
Acronym Description
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”