Business Goal-Driven Optimization of Business Process in EERP James Wei Guo, eBridge China Symon Chang, BEA Systems Inc. April 29, 2008 Copyright © 2008 Beijing eBridgeChina Ltd

Outline n Introduction of EERP n What is the Business Goal? n How to Optimize to Reach the Goal? n Information needed n Q & A

At the Beginning of the Day n Opportunities! n Possibilities! XML SOAP WSDL UDDI WSS WSRM WS-SX WSA MTOM SOA Web Services

At the End of the Day n Results! n Profits! ROI TCO SLA QoS

And Everything in Between n Planning n Execution End-to-End Resource Planning Scalability Interoperability Manageability Performance Reliability Availability Security Collaboration: customers suppliers partners competitors People Applications Systems Facilities

What is EERP? n End-to-End Resource Planning (EERP) is a business-centric approach to end-to-end integration and optimization of business processes and services to increase business agility and adaptability to ever-changing environment, improve business performance, sustain competitive advantage, and ultimately create business value and accomplish the business objective. Business-Centric Optimization! For Business Value

Sample Business Processing Flow n Multi-step n Multi-party n Multi-hop Bank Accounts Receivable Mail Check Authorizer Requisitioner Procurement Invoice Ship Receive Accounts Payable & Change Order Supplier Purchase Order & Change Order Acknowledgment Gather Reqs Source Contract Catalog Search Analysis NegotiateAnalyzeReconcile It is not just simple request and response! End-to-End is beyond point-to-point collaboration between Web Services.

End to End Web Services Environment n Central and distributed registries of software components n Distributed deployment n Cross Internet n Access from multiple devices n Multiple users Multiple hops Multiple steps Multiple alternatives Characteristics of the Environment:

Combination of Multiple Alternatives n A simple WS-Policy representation of alternatives: n This is four alternatives n In the end-to-end multi-hops, multi-steps and multi-parties environment, the combination of multi-alternatives can result into hundreds to thousands alternatives  Is equivalent to

The Challenge -- Optimization n Multiple parties Multiple hops Multiple steps Multiple alternatives How to find the best solution in: How to select the best alternative? Business Goal-Driven Optimization Requires dynamic end-to-end integration and optimization across value chains.

At the End of the Day n We have many standards for Web Services now n The question is: Where is the BEEF? WS-* standards SOAP 1.1 WS-Security 1.0 WS-Addressing 0.8 WS-Policy 1.2 WS-Reliable Messaging 1.0 WS-Trust 1.0 WS-Secure Conversation 1.2 SOAP 1.2 WS-Addressing 1.0 WS-Reliable Messaging 1.1 WS-Policy 1.5 WS-Security 1.1 SAML 1.1 SAML 2.0 WS-Secure Conversation 1.3 WSS SAML 1.1 Token Profile 1.0 WS-Trust 1.3 WS-Security Policy pre 1.2 WS-Security Policy 1.2 WSS SAML 1.1 Token Profile 1.1 WSS SAML 2.0 Token Profile 1.1

What is the BEEF? n BEEF – Benefits of End-to-End Functions n It is the Business Goal n At the end of day, the Business really want is: Faster, Better and Cheaper Faster, Better and Cheaper l Performance l Price l Quality of Service Time-to-Market Cost/Profits Features and Services Resource Utilization Availability Time Money Quality

How to Maximize the BEEF? n The question is: n In the multi-hops, multi-parties, multi-steps, and multi-alternatives end-to-end business process environment n How to optimize to get maximum benefits? Faster Better Cheaper

Optimization of WS-SecurityPolicy n Let’s use WS-SecurityPolicy from WS-SX TC for example n The TC defines many security policy assertions n These policy assertions group together become policy alternatives n There are many policy examples documented n For the end user, which policy to be used is a big challenge

Which policy alternative to use? n There are many policies, and user can define even more policies. Which policy should be used? n Depending on user requirements and preference l Performance -- heavy vs. light transaction load l Security -- low vs. high security requirements l Interoperability -- do we need to support different versions? l Credential Availability -- X509 vs. Username Token, clear vs. digest password Performance Security Availability Interoperability

Methodology in EERP n End-to-End is beyond point-to-point collaboration between Web Services. n Resource Planning helps to reasonably distribute resources, e.g. people, application, system, etc by business rules (knowledge).

Business Goal-Driven Optimization n In EERP, to reach maximum benefits, we need the following: l “Where” is the BEEF l “When” is the BEEF l “What” is the BEEF l “How much” is the BEEF

“Where” is the BEEF n The location is an important element in End-to-End Resource Planning n Different places process may cost differently and get different results n The service need to have location elements: l Logic location -- WS-Addressing l Physical location -- Geo-coding, i.e. latitude/longitude

“When” is the BEEF n The time is an important element in the End- to-End Resource Planning n The service need to have time elements n Different time may cost differently n Time include both: available time and duration l Availability calendar l Throughput

“What” is the BEEF n What kind of Service, or what is the quality of the service are important elements, too n Need to standardize the following: l EERP-Rating n Reputation-based n Historic data for rating l EERP-Quality n Describe industry service quality through standardized way

“How much” is the BEEF n How much refers to the cost or price of the services n What is the cost/price of the service is an important elements, too l Unit l Amount l Currency n Need to have standard way to track the cost of each services

Optimize on Where, When, What and How Much n End-to-End Resource Planning n With the information of location, time, service quality and cost, the Goal of Optimization can be reached Multi-hop, multi-step, multi-user, and Multi-alternatives Analysis Modeling Operation EERP-RATING EERP-QOS EERP-SLA Preference: Fast Better Cheaper WS-* SOA BPM Semantics

Questions?