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IPPTF 2007 Saint Petersburg October 10 SOA for profit in the Pulp & Paper business Per Björkegren – Sogeti.

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Presentation on theme: "IPPTF 2007 Saint Petersburg October 10 SOA for profit in the Pulp & Paper business Per Björkegren – Sogeti."— Presentation transcript:

1 IPPTF 2007 Saint Petersburg October 10 SOA for profit in the Pulp & Paper business Per Björkegren – Sogeti

2 Page 2 IPPTF - SOA for profit in Pulp & Paper Welcome to this short journey into SOA and its potential for the Pulp & Paper industry

3 Page 3 IPPTF - SOA for profit in Pulp & Paper IT strategist Business developer Enterprise Architect Research principal From Karlstad in Sweden Working for which is a service line within group The largest consulting firm owned in Europe (France) Formally appointed to the research institute in Netherlands Per Björkegren

4 Page 4 IPPTF - SOA for profit in Pulp & Paper My grandmothers grandfather came from Russia Ö:a Ämtervik

5 Page 5 IPPTF - SOA for profit in Pulp & Paper The ancestors on my fathers side came from Vallonia Sunnemo Ö:a Ämtervik

6 Page 6 IPPTF - SOA for profit in Pulp & Paper These movements created the industry in Wermland Sunnemo Ö:a Ämtervik

7 Page 7 IPPTF - SOA for profit in Pulp & Paper The paper industry in Wermland and its neighborhoods lately became what is called the Paper Province 50 years ago there were more than 50 Pulp & Paper mills in this area Today there are quite a few mills left. Instead Europes largest cluster of companies around Pulp and Paper has emerged..

8 Page 8 IPPTF - SOA for profit in Pulp & Paper OK, back on to the trail.. SOA.. Service Oriented Architecture is todays way of implementing Enterprise Architecture

9 Page 9 IPPTF - SOA for profit in Pulp & Paper How many have heard about SOA? HANDS UP!

10 Page 10 IPPTF - SOA for profit in Pulp & Paper OK, back on to the trail.. SOA, Service Oriented Architecture is todays way of implementing Enterprise Architecture

11 Page 11 IPPTF - SOA for profit in Pulp & Paper Enterprise Architecture is a mechanism that helps you realise a business strategy Todays situation Next Vision ARCHITECTURE GUIDES YOU TOWARDS THE VISION

12 Page 12 IPPTF - SOA for profit in Pulp & Paper ”A company can outperform rivals only if it can establish a difference that it can preserve” The overall driving strategy And what is the strategy to any company? Michael Porter 1994 It is about differentiation!

13 Page 13 IPPTF - SOA for profit in Pulp & Paper What creates differentiation? FLEXIBILITY AGILITY EFFICIENCY Towards a real-time business

14 Page 14 IPPTF - SOA for profit in Pulp & Paper We are living in an ever- changing world..  Growth in Asia  Extended EU  Extended/Changed regulations  24/7 government  11th September  Sarbanes-Oxley act  Iraq war  Storms in southern Sweden  Energy market  Earthquakes in Pakistan  Birds influenza  Floods in New Orleans ..  Growth  Cost chasing  Quarter’s economy  Mergers & Acquisitions  Partnership & Alliances  Shared services  Outsourcing  New business models.. The world seems to be more and more instable.. Change is even more the general condition EXTERNAL FORCESINTERNAL FORCES

15 Page 15 IPPTF - SOA for profit in Pulp & Paper IT has evolved into a complex structure

16 Page 16 IPPTF - SOA for profit in Pulp & Paper “Todays IT-structures, as hard as they are to understand, are the perceived far most biggest hindrance many organisations face when they try to plan and perform strategic movements” McKinsey “Flexible IT, Better Strategy”, John Seely Brown & John Hagel III Based on more than 1000 CEO interviews Some even avoid to do necessary changes due to this complexity MORE THAN 1000 CEO’s SAID:

17 Page 17 IPPTF - SOA for profit in Pulp & Paper Put it together with the heavy technology push.. Technology Push S O A ³ Hokus pokus, here’s the hype!

18 Page 18 IPPTF - SOA for profit in Pulp & Paper What is SOA for a Pulp & Paper business? FIRST You need to look at your business with new glasses..

19 Page 19 IPPTF - SOA for profit in Pulp & Paper Well, a new way of modelling your business is needed to enable flexibility and agility.. SOA has to start from a well defined business model What do I mean?

20 Page 20 IPPTF - SOA for profit in Pulp & Paper Don’t set detailed processes as guiding architecture Define business capabilities!! View stock Update plan Register order Allocate capacity Recieve parameters Optimise production Register prospect Recieve parameters Control process Control process Dispatch goods Transport goods Un-load goods Store goods Prepare loading Load goods Confirm dispatch Send Invoice Control APL The capabilities are the things you DO in your business

21 Page 21 IPPTF - SOA for profit in Pulp & Paper Maintain Manufacturing plants Make Pulp Manage Ledgers Plan Mill production Make Paper Refine Paper Process Sales orders Distribute products Secure Cash Manage Customer Relations Manage Quality Analyze Market Manage Warehouses Control Corporate KPI:s Consolidate Finances Plan deliveries Develop Products Plan Logistics Capacity Manage Environmental Issues Create Business Structure the capabilities into relevant domains!

22 Page 22 IPPTF - SOA for profit in Pulp & Paper Warehouse Management Goods In Move goods Pack goods Stock Inventory Goods Out Repair goods Information Interface Receive advice Report Goods move Report Goods received Cross- dock Handle pallets Report Inventory Recieve Instruction Physical goods Interface Road Loading dock Railroad Loading dock A domain is described with capabilities and information flows in and out

23 Page 23 IPPTF - SOA for profit in Pulp & Paper If this is done right, you have a Reference model that can support guidance in your strategic journey

24 Page 24 IPPTF - SOA for profit in Pulp & Paper SOA Principle: Secure that your information systems follow the domain demarcations

25 Page 25 IPPTF - SOA for profit in Pulp & Paper SOA Principle: Secure that the information interfaces are created according to the model

26 Page 26 IPPTF - SOA for profit in Pulp & Paper If you follow these principles, the new IT structure will enable you to set up almost any business scenario

27 Page 27 IPPTF - SOA for profit in Pulp & Paper The domains are high-level building blocks for business processes Order Entry Billing Close Delivery Operations Planning Paper Production Paper Converting Transport Management Transport Operations Warehouse Management Sales Management Order Entry Warehouse Management Transport Operations Scenario 1 – Stock order Close Delivery Operations Planning Paper Production Transport Management Order Entry Warehouse Management Order Entry Warehouse Management Scenario 2 – Converting order Close Delivery Scenario 3 – Production order Paper Converting Warehouse Management Transport Operations Planning Paper Converting Warehouse Management Transport Management Close Delivery Transport Operations Transport Management A simple setup of domains

28 Page 28 IPPTF - SOA for profit in Pulp & Paper Order Entry Warehouse Management Close Delivery Paper Converting Warehouse Management Transport Operations Planning Transport Management External Warehouse provider External Transport provider The same interfaces shall be used to all domains whether they are internal or external Internal activities The domains also make it easier to handle extended enterprise scenarios

29 Page 29 IPPTF - SOA for profit in Pulp & Paper The information interfaces are key.. Information Interface Receive advice Report Goods move Report Goods received Report Inventory Recieve Instruction To standardise the information interfaces to each domain will create magic! This is SOA at the core!

30 Page 30 IPPTF - SOA for profit in Pulp & Paper The domains can be used to describe business units configuration A typical sales company Order Entry Billing Close Delivery Sales Management A typical converting unit Warehouse Management Paper Converting Transport Management Operations Planning FinanceHR FinanceHR A typical production unit Warehouse Management Paper Converting Transport Management Operations Planning FinanceHR Paper Production Plant Maintenance Supply Purchasing Pulp Production

31 Page 31 IPPTF - SOA for profit in Pulp & Paper We have now looked into SOA from the business level and how it can provide the needed business agility

32 Page 32 IPPTF - SOA for profit in Pulp & Paper There are other benefits to gain: - More cost efficient IT in a longer term - Better use of data in a more real-time style

33 Page 33 IPPTF - SOA for profit in Pulp & Paper I strongly believe that SOA has a huge potential for the Pulp and Paper industry

34 Page 34 IPPTF - SOA for profit in Pulp & Paper I then mean the SOA that starts on the business level, NOT the SOA that is presented by many vendors as a new technology

35 Page 35 IPPTF - SOA for profit in Pulp & Paper So, let’s start to re- think your business models AND secure that Informations System are built according to them

36 Page 36 IPPTF - SOA for profit in Pulp & Paper If you want to know more, don’t hesitate to contact me! I brought 10 copies of the book The book is also available free in PDF-format on the net

37 Page 37 IPPTF - SOA for profit in Pulp & Paper THANK YOU! SOA is for profit!


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