1. 0 SOA and ERP

2. 1 Selim Burduroğlu Enterprise Architect Friday, December 2, 2005

3. 2 Agenda ERP Market Trends and Evolution What is Service Oriented Architecture (SOA)? What makes up an SOA? Definitions and Brief Description SOA Stages for ERP Project Fusion & Oracle Fusion Middleware Evolution of Application Architecture Benefits of SOA Bottom Line

4. 3 ERP Market trends Continuing vendor consolidation Fewer large new deals, more sales to existing customers Emphasis on recurring revenue Maintenance, hosting, subscription licensing Focus on midmarket and industries Growing importance of SOA platforms in technology buying decisions Simplicity and usability (UI, tools, reporting) Lifecycle Management (implementation, upgrades)

5. The Emergence of ‘Applistructure’ Ken Vollmer March 18, 2003 The increasing availability of prebuilt horizontal and vertical business processes designed to be used with application integration middleware is a trend that will have significant impact on the software market … The increased usage of prebuilt business processes is resulting in a blurring of the boundary between application software and infrastructure middleware and creating a new class of software that could be referred to as “applistructure” software. Evolution According to

6. 5 ERP systems became a universe of their own Integration was never a key strength of ERP system ERP vendors are stuck in own development history Users don’t like revolutionary changes to the applications world Web Services and SOA (Service Oriented Architecture) are the new driving forces for architectures Source: ERP&SOA – A Contradiction? Meta Group Interactive Briefing Paris – 29 April 2004 Ruediger Spies (VP Enterprise Application Strategies)

7. Evolution Summary Applistructure Applications Infrastructure “the emphasis in the war for domination in ERP systems is moving away from business functionality and toward a battle about platforms.” Stewart McKie of Ventana Research March 14, 2005

8. 7 Applistructure A successful applistructure will comprise five elements: Continuously decrease the operational cost of information technology Permit a fast and flexible reconfiguration of business processes Deliver secure and reliable service levels Permit upgrades and product enhancements on the fly Allow different technology providers as well as custom/legacy code to plug and play seamlessly Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications? Monday, January 03, 2005 Erik Keller Erik Keller

9. 8 What is SOA?

10. 9 ? SOA XML WSDL BPEL UDDI SOAP WS-S

11. 10 General Contractor X BPEL Process UDDI “ Concrete Estimates ” call 555- 1234 (WSDL) XML XML – Extensible Markup Language UDDI – Universal Description, Discovery and Integration Service WSDL – Web Services Descriptive Language Web Service BPEL – Business Process Execution Language SOA SOAP SOAP – Simple Object Access Protocol

12. 11 Definitions A service is a unit of discrete business functionality. A service oriented architecture provides a standards based platform that allows services to be provided, discovered, and consumed by each other, to facilitate the creation of a orchestrated business process. A service oriented application is a set of application functionality that fully leverages the power of a service oriented architecture.

13. 12 SOA stages for ERP Integration of heterogeneous applications across multiple platforms Time frame: Now Modular components within suites Time frame: Two to three years Market transformation to standards-based architectures Time frame: End of decade

14. 13 The Future of Applications Leveraging Infrastructure to lower cost of obtaining and using new application functionality(Composite App) – Applistructure Based on an Application Infrastructure – Service-Oriented Architecture

15. 14 Common Architecture Today

16. 15 What is SOA Really About? 40 65 % of IT Budgets spent on Integration Activities % of ERP Application Implementation Costs spent on Integration

17. 16 Integration vs. Interoperability Integration Two (or more) applications exchange data Interoperability Two (or more) applications are able to exchange information (if they want to). It is About Reusability!

18. 17 Oracle Fusion Middleware Oracle Information Age Applications EBS JDE PSFT Project Fusion Time Project Fusion A evolving process or “journey” Initiative to build SOA-based Information Age Applications and the Fusion Middleware required to enable them Project Fusion

19. 18 Oracle Fusion Middleware Family of integrated, standards- based, customer-proven products Enables greater agility, better decisions, and reduced cost & risk today Fusion Middleware IS that infrastructure. And is available now! Development Tools Orchestration Security Portal Integration Management Collaboration

20. 19 Evolution of Application Architecture Infrastructure DB Tools Applications

21. 20 …and more applications… Applications Infrastructure DB Tools DB Tools DB Tools DB Tools Issues Inconsistent look- and-feel Inflexible, hard to change Poor information access, integrity Leads to… Multiple user interfaces Fragmented processes Silos of data

22. 21 Applications ‘Middleware’ Orchestration Infrastructure Business Process The Onboarding Process DB Tools DB Tools DB Tools DB Tools Core HR eRecruit Badging Security Promise of Middleware Agility & interoperability Reduces TCO Adaptable BPs Middleware ‘Platform’ solution based on industry standards Single vendor sourced ‘Holistic’ business process management Evolution of the Platform Emergence of Orchestration

23. 22 Applications ‘Middleware’ Orchestration Infrastructure Business Process The Onboarding Process DB Tools DB Tools DB Tools DB Tools Core HR eRecruit Badging Security However today’s applications... Still manage their own workflow Need to retrofit industry standards Don’t natively leverage the Middleware capabilities Evolution of the Platform Emergence of Orchestration ? ? ?

24. 23 ‘Middleware’ Applications Orchestration Infrastructure Business Process The Onboarding Process Evolution of the Applications Emergence of Services Oriented Architecture (SOA) DB Tools SOA DB Tools DB Tools DB Tools Core HR eRecruit Badging Security Services SOA Applications Standards based Business Process Management Common language shared by applications Plug and play functionality

25. 24 DB Tools ‘Middleware’ Fusion Middleware: The Enabler Orchestration + Infrastructure Oracle Fusion Middleware Services Applications Orchestration Infrastructure Business Process Business Process DB Tools Services SOA DB Tools DB Tools DB Tools Oracle Fusion Middleware Family of integrated, standards based, components Based on existing, mature technology products Over time adding the best design ideas from –eBusiness Suite –PeopleSoft Enterprise –JD Edwards EnterpriseOne Data Hubs XML Publisher Identity Mgmt Integration JDeveloper Oracle Portal BPEL / BAM

26. 25 Application Server Leader Source: Forrester Wave™: Application Server Platforms Q1 ’05

27. Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications AMR Research Report, 1/3/05 Applistructure Leader

28. 27 Oracle’s SOA Provides Integration Repository – Provides single definition of all interfaces and catalogs all published APIs Business Activity Monitoring – Allows business users to set performance targets, monitor exceptions Business Process Execution Language – using GUI and Enterprise Services, business analysts can adjust business processes

29. 28 Benefits of SOA Simplified Integration – Connect disparate applications quickly by creating standardized services Increase Reuse – Applications components are easily used saving development time and increasing application reliability Easier Maintainability – Changes/Version are not all-or-nothing Greater Agility – Rapid deployment of business processes or modifications of existing ones in response to market changes Reduced Risk – Adaptable processes and single security model for accessing services enables ongoing regulatory compliance in a timely, cost-effective manner

30. 29 Applistructure A successful applistructure will comprise five elements: Continuously decrease the operational cost of information technology Permit a fast and flexible reconfiguration of business processes Deliver secure and reliable service levels Permit upgrades and product enhancements on the fly Allow different technology providers as well as custom/legacy code to plug and play seamlessly Source: Applistructure: The Next Big or Bust Thing for Enterprise Applications? Monday, January 03, 2005 Erik Keller Erik Keller

31. 30 Why Oracle? Insight – Agility - Lowest cost Proven technology to implement SOA Richest set of applications services Industry leader in grid computing Delivers accurate information faster, for smarter decisions With end-to-end security

32. 31 The Bottom Line Web Services is an enabler of Service Oriented Applications not the answer Service Oriented Applications should be transparent to end users and increase productivity Oracle is committed to delivering the both the parts and the solution to meet your business needs

33. A Q & Q&A

34. Thank You!