Interorganizational System Development Lecture 22.

Interorganizational System Development

Lecture 22

Today Lecture

Interorganizational System Development EXXONMOBIL

Discussion Case – Interorganizational Systems Development

HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems Development

Internet-Based Systems Application Servers Java Development Platform

Today Lecture…

Web Service

Web Service Advantages for E-Business Web Services Terminology Web Service Model TRADITIONAL WEB-BASED SYSTEMS WEB SERVER CLUSTERS

Today Lecture…

BUILDING A WEB SERVICECase Example

BEKINSCase Example – Web Services

BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services Development

Interorganizational System Development

One of the main business trends is the appearance of business ecosystems — “groupings” of businesses that work closely together Supply Chain Management systems integrate supply

chains These are now a major trend as they compete against

one another on their ability to reduce costs and time across their entire chains

Development of such inter-organizational systems requires teams from the different organizations to work together

Supply Chain Example

Interorganizational System Developmentcont.

Another type of inter-organizational system is a platform, which provides the infrastructure for the operation of a business ecosystem, a region, or an industry

Sabre

Video game industry

Interorganizational System Developmentcont.

Platform development is a major trend in an increasing number of industries

Following 2 cases

1. Exxonmobil - Yet to become a platform

2. HKEx – points out the types of coordination needed to develop an interorganizational system for a business ecosystem

EXXONMOBILDiscussion Case – Interorganizational

Systems Development

Mobil created Speedpass, a system that uses a 1.5-inch-long wand that motorists can attach to their key chain and “wave” at an electronic reader on a Mobil gas pump to pay for gas

Mobil’s goal was to speed motorists in and out of its stations

ExxonMobil now has five million Speedpass holders They buy more Mobil gas than non-Speedpass

customers, they visit Mobil stations one more time per month, and they spend 2-3 percent more money

EXXONMOBILDiscussion Case – Interorganizational Systems

Development cont.

To leverage this technology, it has teamed up with McDonald’s restaurants in Chicago to test use of Speedpass to pay for food

How should Mobil leverage this platform even more?

HONG KONG EXCHANGES & CLEARINGCase Study – Interorganizational Systems

Development HKEx is Asia’s second largest stock market To extend its reach beyond Hong Kong, it decided to

embed its business processes in an open trading architecture by building a third-generation automatic order matching and execution system

HKEx’s goal is integrated end-to-end computerized trading processes, from investors through brokers to markets


Development cont.

The project was daunting, involving both internal and external people

40 staff members from varying departments

150 consultants, and

500 brokerage firms


Development cont.

Development took two years, and ended with three levels of testing

One level involved testing the systems that some 100 brokerage firms built to interface with the open gateway

Rollout was phased so that Hong Kong’s stock market was not disrupted


Development cont

HKEx has built its processes into an open architecture and coordinated the construction of an inter-organizational system – with components from numerous sources and participants of many kinds

It is now the foundation for its industry ecosystem

Internet-Based Systems

HKEx’s system is not Internet based but it allows Internet access for online trading as well as other actions

The Internet has opened up the options HKEx can offer

Internet users have become so sophisticated that Internet-based systems must be:

Scalable

Reliable, and

Integrated both internally and externally with systems of customers or business partners

Internet-Based Systems

To do this companies recognize they must negotiate ‘language differences’

E.g. a system may have to port old COBOL applications to Java, reconcile interface discrepancies and interface with back-end legacy applications, often without documentation or past experience with those systems

Tools are available to help Open systems etc.

Internet-Based Systems: Application Servers

Originally conceived as a piece of middleware to link a Web server to applications on other company systems

The application server has grown into a framework for developing Internet-based applications

Figure 9-6 shows the basic application server architecture. The virtual server takes requests from clients and Web servers (on the left), runs the necessary business logic & provides connectivity to the entire range of back-end systems (on the right)

Internet-Based Systems: Application Servers

The goal of the application server:

automate

manage technical tasks in the development and running of Internet based applications

The result:

Developers can focus more on business issues, rather than technical detail

Internet-Based Systems:Java Development Platform

Java has been in many cases the starting point for the development of Internet-based systems with an open system architecture.

Originally – developed to provide applets that run on Web clients

Evolved into a full programming language

Goal = Platform for independent language that could run on any system

Promise applications portability: “write once, run anywhere” Didn’t live up to promise = evolved into a standard platform for developing server-side applications

Java Software Development

Internet-Based Systems:Java Development Platform cont.

Major components in Java server-side platform

Enterprise Java Beans (EJB)

Preconfigured pieces of code that IS staff no longer have to build from scratch

Java 2 Enterprise Edition (J2EE) Defines a standard for developing Internet-based

enterprise applications

Internet-Based Systems:Java Development Platform cont

Provide an alternative to building online business systems from scratch or buying packaged online business systems because of their multi-vendor platform capability and pre-built, reusable components

Microsoft competes with its own versions:

Component Object Model (COM)

Distributed Component Object Model (DCOM)

Web Service

• Web Service: “Web-based applications that dynamically interact

with other Web applications using open standards that include XML, UDDI and SOAP”

Universal Description Discovery Integration

Simple Object Access Protocol• Service-Oriented Architecture (SOA):

“Development of applications from distributed collections of smaller loosely coupled service providers”

“A collection of services or software agents that communicate freely with each other”

XML Extensible Markup Language (XML) is a

markup language that defines a set of rules for encoding documents in a format which is both human-readable and machine-readable.

UDDI UDDI (Universal Description, Discovery,

and Integration) is an XML-based registry for businesses worldwide to list themselves on the Internet.

Its ultimate goal is to streamline online transactions by enabling companies to find one another on the Web and make their systems interoperable for e-commerce.

Web Service Advantages for E-Business

Allow companies to reduce the cost of doing e-business, to deploy solutions faster Need a common program-to-program

communications model

Allow heterogeneous applications to be integrated more rapidly, easily and less expensively

Facilitate deploying and providing access to business functions over the Web

Web Services Terminology

SOAP (Simple Object Access Protocol)

exchanging XML messages on a network

Like RPC, it provides a way to communicate between applications

Unlike RPC, it communicates over HTTP

Web Services Terminology

Because HTTP is supported by all Internet browsers and servers, SOAP can run on different operating systems, with different technologies and programming languages

WSDL (Web Service Description Language ) describing interfaces of Web services

UDDI (Universal Description, Discovery and Integration) managing registries of Web services

Web Service Model (1/3)


Roles in a Web Service ArchitectureService provider

Owner of the service Platform that hosts access to the service

Service requestor Business that requires certain functions to be

satisfied Application looking for and invoking an interaction

with a serviceService registry

Searchable registry of service descriptions where service providers publish their service descriptions


Operations in a Web Service ArchitecturePublish

Service descriptions need to be published in order for service requestor to find them

Find Service requestor queries the service registry for the

service required

Bind Service requestor invokes or initiates an interaction

with the service at runtime

Internet-Based Systems: Web Services

The vision of Web Services is that modules of code can be assembled into services, which, in turn, can be linked to create a business process at the moment it is needed and run across enterprises, computing platforms, and data models

There are two development modes: One is to wrap an XML wrapper around an existing piece of

code that performs a specific function

Internet-Based Systems: Web Services

Exposes it

Then = give it a Internet address and let others use it – for a fee!

Second way to build a Web Service = use one someone else has already exposed

The following case illustrates the basics of building a Web Service

TRADITIONAL WEB-BASED SYSTEMS

Many Web-based systems are still organized as simple client-server architectures.


The core of a Web site: a process that has access to a local file system storing documents.


How to refer to a document? URL (Uniform Resource Locator)?

Uniform Resource Locator

A reference called Uniform Resource Locator (URL) is used to refer a document.

The DNS name of its associated server along with a file name is specified.

The URL also specifies the protocol for transferring the document across the network.

Example: http://www.cse.unl.edu/~ylu/csce855/notes/web-

system.ppt


A client interacts with Web servers through a special application known as browser.

What’s the key function of a browser? Responsible for displaying documents.

WEB SERVER CLUSTERS

Web servers are replicated and combined with a front end

to improve performance.

WEB SERVER CLUSTERS

The front end can be designed in two ways:

Transport-layer switch – simply passes data sent along the TCP connection to one of the servers, depending on some measurement of the server’s load.

Content-aware request distribution – it first inspects the HTTP request and decides which server it should forward that request to.

WEB SERVER CLUSTERS

For example, if the front end always forwards requests for the same document to the same server, the server may cache the document resulting in better response times.

Approach that combines the efficiency of transport-layer switch and the functionality of content-aware distribution has been developed.

WEB SERVER CLUSTERS

Another alternative to set up a Web server cluster is to use round-robin DNS.

With round-robin DNS a single domain name is associated with multiple IP addresses.

When resolving a host name, a browser would receive a list of multiple addresses, each address corresponding to a server.

Normally, browsers choose the first address on the list, but most DNS servers circulate the entries.

As a result, simple distribution of requests over the servers in the cluster is achieved.

BUILDING A WEB SERVICECase Example

Currency converter

The steps involve:1. Exposing the code2. Writing a service description3. Publishing the service4. Finding the service, and 5. Invoking a Web Service


Moving company which is using Web Services in its HomeDirectUSA business Delivers large household appliances

Uses some 1,000 independent agents Formerly = faxed or phoned these agents to

arrange delivery Slow and not equitable to all agents

Created an online broking system (TBE) Used to tender jobs to all agents Once accepted = unavailable to others


Results Lower tendering costs Faster customer service Better utilization of agents’ trucks So efficient = offer lower margin jobs to agents

Increases shipping volume and revenues Bekins’ E-Commerce Platform Building the system

Required commitment from several moving partners = an interorganizational system

Involvement = important but equally important was their comfort with Web Services

BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services

Development

Whilst these can help enterprises develop systems faster, the technology might have other ramifications

CIOs would do well to prepare for

Possibly another round of even more powerful, on-the-fly end user development

BUILDING A WEB SERVICEPreparing for On-The-Fly Web Services

Development

History repeating itself

Spreadsheets 4GLs Web sites

Personal silos of data and apps

IS management can address ‘in advance’ this time! Else = Users will take development into their own hands as

they have done so eagerly in the past

Summary Traditional approach from the 1960s evolved to give

more discipline, control, and efficiency. Moved programming from an “art” to a “craft.” Problems:

Development times Low user involvement Lack of flexibility

1970s and 1980s: data-driven development, stressed improving early phases in development: 4GL and software prototyping permitted more rapid

development CASE and object oriented (software re-use)

Summary 1990s:

Client-server Internet-based systems Integration of components and packages

The 1990s brought the need for integrated enterprise systems and Internet-based systems

Development now focuses on the Internet, interorganizational development, and ecosystem applications Systems where project management skills are even more

important due to the complexity of the systems

Interorganizational System Development Lecture 22.

Documents

Transcript of Interorganizational System Development Lecture 22.