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Solvay Business School
SEMINAIRE DE TECHNOLOGIES DE L’INFORMATION ET DE
LA COMMUNICATION
UNIVERSITELIBRE DEBRUXELLES
eBusiness - IntroductioneBusiness - IntroductionPascale Vande VeldePascale Vande Velde
GEST 116GEST 116
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Introduction – Part I
Introduction – Part II
Payments & security
Supply chain management
Content of eBusiness courseContent of eBusiness course
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Technical enablers
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
AgendaAgenda
Case 1 : a newspaper site (information)
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A complex topic…A complex topic…
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Technical enablersTechnical enablers
Internet
Architecture developments
Linux OS
Java
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Internet historyInternet history
The Internet is a publicly available worldwide system of interconnected computer networks that transmit data by packet switching using a standardized Internet Protocol (IP)
The core networks forming the internet started out in 1969 as the ARPAnet, created by the US Department of Defence Advanced Research Projects Agency (ARPA)
The objective of the ARPAnet was to connect different computers and networks designed by different vendors into a network of networks. The Department of Defence found out that their computers could not communicate between each other
ARPAnet used a protocol called NCP (Network Control Protocol). ARPAnet moved to the TCP/IP protocol in 1983
Under ARPAnet several major innovations occurred: email (or electronic mail), the ability to send simple messages to another person across the network (1971); telnet, a remote connection service for controlling a computer (1972); and file transfer protocol (FTP), which allows information to be sent from one computer to another in bulk (1973)
Another important step in the development of the internet was National Science Foundation building of a university backbone, the NSFnet, in 1986
Internet Protocol software was soon being placed on every type of computer, and universities and research groups also began using in-house networks known as Local Area Networks or LAN's. These in-house networks then started using Internet Protocol software so one LAN could connect with other LAN's
The internet became widly used as from ’90s. In 1989, Tim Berners-Lee created HTML, HTTP, and the first web pages at CERN. In 1993, Mosaic, the first web browser, was released.
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TCP/IPTCP/IP
TCP/IP is a protocol making the communication between different networks feasible
TCP/IP is composed of 3 layers :– IP (Internet Protocol) : responsible for moving packets of data from node to node. IP
forwards each packet based on a four byte destination address (the IP number). The internet authorities assign ranges of numbers to different organizations. The organizations assign groups of their numbers to departments. IP operates on gateway machines that move data from department to organization to region and then around the world
– TCP (Transmission Control Protocol) : is responsible for verifying the correct delivery of data from client to server. Data can be lost in the intermediate network. TCP adds support to detect errors or lost data and to trigger retransmission until the data is correctly and completely received
– Sockets : is a name given to the package of subroutines that provide access to TCP/IP on most systems
Addresses– TCP assigns a unique number to every workstation in the world. This IP number is a four
byte value that, by convention, is expressed by converting each byte into a decimal number (0 to 255) and separating the bytes with a period.
– For instance, a workstation as as IP number 130.132.59.234 and all workstations in the organization have an IP number structured as follows : 130.132.*.*
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TCP/IP (cont’d)TCP/IP (cont’d)
A end user can install TCP/IP on a personal computer without any knowledge of either the corporate or the regional network. Three pieces of information are required :
– The IP address assigned to the personal computer– The part of the IP address (the subnet mask) that distinguishes other machines on
the same LAN (messages can be sent to them directly) from machines in other departments or elsewhere in the world
– The IP address of the router machine that connects this LAN to the rest of the world
For instance :– IP address : 130.132.59.234– Subnet mask : 255.255.255.0– Default router : 130.132.59.1
The subnet mask tells the server that any other machine with an IP address beginning 130.132.59.* is on the same department LAN. All messages sent from a machine beginning 130.132.59.* will be sent directly to the LAN. All other messages will be sent to the default router
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HTML/XMLHTML/XML
HTML (HyperText Markup Language), defined in 1991, is a markup language designed for the creation of web pages and other information viewable in a browser. The focus of HTML is on presentation (paragraphs, fonts, tables, graphs, etc...)
There are four types of markup elements :– Structural markup that describes the purpose of text. For example <h1>Golf/h1> will cause the
browser to render “Golf” as a first level heading– Presentational markup that describes the visual appearance of text, regardless of its function. For
example, <b>boldface</b> will render “boldface” in bold text– Hypertext markup which links parts of the document to other documents– Widget elements that create objects such as buttons and lists
There were several versions of HTML (HTML 1.0, 2.0, 3.0, 4.0) The successor of HTML is XML (eXtensible Markup Language). It was defined in 1998. HTML
uses a set of known tags that handle common formatting tasks. XML allows you to create any tag you want (is thus extensible) and then describe these tags in a meta language known as DTD (Document type definition).
A common feature of any markup language is that they intermix thet text of a document with markup instructions in the same datastream or file
XML is also widely use as format for document storage Example of markup language :
<h1> Anatidae </h1><p>The family <i>Anatidae</i> includes ducks, geese, and swans,but <em>not</em> the closely-related screamers.</p>
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Architecture BackgroundArchitecture Background
“In the old days, there was no need for technical architectures” Actually, vendors brought architecture de facto with the mainframe (e.g. IBM with CICS
and IMS) Business was seeking automation of manual processes primarily requesting “standalone”
applications There was no PAST – (no legacy systems to integrate)
Today, the IT world is much more complex and diverse Solutions are networked / distributed We have to deal with the past : legacy integration and legacy maintenance while
developing the future (web, wireless, B2B)
Architecture has evolved through generations (# tiers)
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Historical Reminder Historical Reminder 1-tier architecture (80ies)1-tier architecture (80ies)
A mainframe execution architecture is 1-tier : processing is done on the central server.
Issue : No separation of concern between presentation, business logic and data logical layers.
Batch On-Line MFDesktop
Computing
Pre
sen
tatio
n
Business Logic
Da
ta
Pre
sen
tatio
n
Business LogicD
ata
Pre
sen
tatio
n
Business Logic
Da
ta
Pre
sen
tatio
n
Business Logic
Da
ta
Pre
sen
tatio
n
Business Logic
Da
ta
Mainframe
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Historical Reminder Historical Reminder 2-tier architecture (early 90ies)2-tier architecture (early 90ies)
client server
communication
Client/server supports an execution style where processes on different machines communicate through messages: the « client » makes requests to the server through service interfaces and the server responds.
Historical push : MS Windows and its Graphical User Interface
Rationale : C/S will reduce IT costsP
rese
ntat
ion
Pre
sent
atio
n
BusinessLogic
BusinessLogic
BusinessLogic
BusinessLogic
Pre
sent
atio
nD
ata
Communication
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Historical Reminder Historical Reminder 3-tier architecture (late 90ies)3-tier architecture (late 90ies)
A Netcentric architecture allows to share transactional data and information between users and applications. Those applications allow « publishing, interacting or transacting ».
Netcentric is nothing else than an evolution of client / server, enabling the connection of employees, clients and business partners through internet.
Rationale : The web requires a specific front end server to handle thousands to potentially millions of connections.
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Multi channel platform – technical viewMulti channel platform – technical view
Business Logic Bloc 3
Fir
ewal
l
External
Inte
grat
ion
Lay
er
Services&
OperationsData
Bus
ines
s L
ogic
Blo
c 2
Business LogicBloc 1
Platfor
Platformm
Cross Channel Applications Tier
App
lica
tion
Ser
ver
Channel Management Tier
ContentContent
Businesslogic
SessionApp. Server
Marketingdata
field
field
dyna
mic
Page
SecurityPackage
Users
LDAP
Fir
ewal
l
Presentation Tier
HR/Payroll systems
CRM system
Accounting system
Reference data systems
Invoicing, billingand collection systemExternal partysystemRegulatory reportingsystemInformation deliverysystem
Business intelligence systems
Product
Product
Product
OtherProducts
Call
Call
Cent
Centrere W
eb W
eb B
rowB
rowserser
Voice
Voice
Respon
Responsese
Unit
Unit
Voice
Pho
Pho
nene
CR
CRMM
Voic
Voice e
LogLoggerger
Voice
Voice
Respon
Responsese
Server
Server
Web
Web
Brow
Browserser
BTS
Wireless
Wireless
Brow
serB
rowser
(WA
P, J2M
E)
(WA
P, J2M
E)
InternIntern
etet
Intran
etWeb
Web
Brow
Browserser
Cli
Cli
entent
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n-tier architectures aim at solving business n-tier architectures aim at solving business issuesissues
Main business drivers are :– Globalisation of financial markets (mergers
& acquisitions)
– Increased competition
– Changing client expectations
– Spread of technonolgy-enabled « eBusiness »
Main business drivers are :– Globalisation of financial markets (mergers
& acquisitions)
– Increased competition
– Changing client expectations
– Spread of technonolgy-enabled « eBusiness »
N-tier architectures provide a solution :
Resulting business needs :– Capability concentration, IT integration & cost
reductions
– Scalability
– New product types
– Short time-to-market for new product
– Flexibility (IT and salesforce)
– Multi-channel
– High system availability & security
Resulting business needs :– Capability concentration, IT integration & cost
reductions
– Scalability
– New product types
– Short time-to-market for new product
– Flexibility (IT and salesforce)
– Multi-channel
– High system availability & security
To Front-end Issues because :– They provide cross-channel coherence from
a client point of view– They allow the integration of information
usually spread over multiple systems– They allow single maintenance of
functionality offered on multiple channels– They reduce the cost of adding an additional
channel
To Mid-tier issues because : – They allow better re-usability of business
logic layer (made from components)
To Back-end integration issues because : – They help integrate legacy systems– They enable B2B integration
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LinuxLinux
Linux is an open and free OS (downloadable from internet). It is mainly used in office applications, game softwares, mobile phones, video recorders and PDAs. Linux became the most widespread OS for internet servers. Linux, being free, is also installed on many low cost computers, a.o. In developing countries.
Linux was developed by a Finner, Linus Torvalds, in 1991 at Helsinki University. Linus Torvalds is the owner of the Linux trademark. The Linux Mark Institute manages and grants Linux licences.
Most of the code (71%) was written in C; other parts were written in C++, Lisp, Perl, Fortran....
Linux is a very secure OS (“virus proof”). Sales of Linux OS grow steadily. Based on IDC, 25% of all servers and 2,8% of
desktops were running on Linux in 2002. You need an emulator to run Windows applications without Linux equivalent on
Linux. VMware enables it with more CPU (run a client OS on a host OS). In the beginning, it was difficult to install Linux on desktops; so Linux adaption was
quite slow. Nowadays, more and more computers can be bought with a Linux OS instead of a Windows OS. In addition, the installation packs are currently easier to install. They are often available on CD.
Technical support is provided by Linux suppliers and users groups.
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Linux - ApplicationsLinux - Applications
Zona Research “The New Religion: Linux and Open Source” Octobre 2000
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Linux - ApplicationsLinux - Applications
Linux systems are mainly used for back office servers. They are mainly used as web servers, file servers, print servers, DNS servers, and mail servers etc.
Linux systems focus on these domains for the following reasons:– They are very reliable and robust – The source code is accessible to fix any problems– Problems can be quickly fixed and are shared with the Community– Linux systems are very similar to Unix systems; it facilitates knowledge
transfer– Acquisition costs are limited– Highly secure (“virus proof”)
Most servers suppliers (IBM, HP, Sun, etc….) support Linux on most of their servers, including mainframes. They categorise Linux as a Tier 1 OS. All main applications are now Linux portable.
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JavaJava
Java is an object oriented language developed by James Gosling and Sun Microsystems colleagues. In the beginning, this language was named Oak (1991). Java was commercialized in 1994. It is a language derived from C++, but more intuitive than C++.
Java is independent from the platform on which it runs; therefore its success as internet application. It has been designed to support network applications :– The look and feel of a java GUI is independent of the hardware/OS– A java program can be launched on any OS/Hardware; thanks to a compilor and a
virtual machine (VM) :• The compilor transforms the java language in a code half way to the machine code• This code is processed by a virtual machine (program written in native code on the
hardware platform) that translates the java generic code in a code which can be used by the hardware
Sun created the company JavaSoft, in charge for the design and the distribution of the java language. The license granted by Sun requests that all implementations are compatible.
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JavaJava
Java is not an open source program in spite of requests by several vendors (eg IBM). There are Java APIs, to integrate a java program in a program environment. Some companies can influence the APIs design but Sun keeps ownership and control on APIs.
Security –java program must be reliable and secure since they are used in a distributed/open environment, thanks to numerous controls upstream and during the code execution– The java virtual machine applies a hierarchy of security controls on the machine on which the java
code will be executed– The java compilor also applies many controls on the source code
Easy interaction with TCP/IP protocol thanks to a library of routines. It makes the set up of network connections much easier than with a program written in C++
Frequent use of java :– Web browsers– Intranet/internet applications – Web user interface (java beans call other programs, eg in C++) – Mobile phones– Smart cards– TV set boxes– Interfacing programs
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Technical enablers
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
AgendaAgenda
Case 1 : a newspaper site (information)
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Steps to set up an ebusinessSteps to set up an ebusiness
Define the strategy, business model
Define products and services
Define future processes, functionalities required
Define sourcing
Define technical architecture
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Business modelBusiness model
Provide general and financial information to Belgian upper and middle class– Daily Belgian and international news– Financial and economic news– Leisure information
Provide information-based value added services– Archives– Personalization
Information provided based on – Own information sources– Third party information
Revenues model– Advertising– Subscription to value added services
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Products and servicesProducts and services
Products– Belgian news– Financial and economic news– Stock rates (2 minutes delay)– Investment advice– Leisure information– Newsletter– Investors’ guide
Services– Registration– My portfolio– My archives– Call centre
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Possible sourcing Possible sourcing
PortalPortalCapabilitiesCapabilities
PortalPortalCapabilitiesCapabilities
SecuritySecurity
PersonalizationPersonalization
AuthorizationAuthorization
Customer servicesCustomer services
CommunityCommunity
EAIEAIEAIEAI
Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship Management
ContentManagement
ContentManagement
Vignette Documentum Interwoven -
IBM
Pro
cess
In
teg
rati
on
Pro
cess
In
teg
rati
on
Broadvision Eportal server
IBM Abaxx ATG Dynamo …
Data extraction Data extraction tooltool
Data extraction Data extraction tooltool
Possible solutions :• A portal solution including a content and
portal functionality • A portal solution combined with a content
management solution• Mix of portal, content solutions and custom
development
• Manages multi channel distribution
• Personalization• Contribution to content• Location of content• Workflow (contribution
process)
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Typical technical architectureTypical technical architecture
Internet
Call Centre/emails
Call CentreWorkstation
ApplicationServer Content
WebServer
Archives
Firewall
Market DataFeeds
Research
Customer
Firewall
Via Call Centre Operators
Information requests
External Systems
DBServer Portal
DBServer Content
ApplicationServer Portal
News
• No necessary integration with back end systems of newspaper company
• Information feeds integrated with content management tool
• Information extraction can require specific extraction tools
• CRM tool can be added to portal functionality
Customer DB
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Information feedsInformation feeds
Archives
Market DataFeeds
Research
External Systems
News
Batch process, DB replication several times a day
Archives
Market DataFeeds
Research
News
File for updates
Files sent several times a day
File sent or automatic interface
• Depending on frequency of updates in case of real time information, back up solutions are necessary (second direct data transmission line)
• Push technique : files sent• Pull technique : connection to
information provider server
Feeding techniques depend on frequency of updates and volumes of data
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Technical enablers
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
AgendaAgenda
Case 1 : a newspaper site (information)
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Business modelBusiness model
Provide the bank’s retail clients the functionality to carry out most of their banking operations– Deposits– Account management– Loans– Credit cards
Provide the bank’s retail clients the functionality to carry out most of their equity and mutual funds transactions
– Bonds, options, derivatives excluded– Some exotic markets excluded
Build CRM tools to leverage on client information
Revenues model– Annual fees– Brokerage fees– Advertising
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Products and servicesProducts and services
Consultation– Accounts maintenance (status and operations)– Portfolios maintenance (status and operations)/transaction services– Loan maintenance– Credit cards maintenance
Management services– Relationship management (CRM)– Personnalization– …
Product support– Deposits– Loans– Credit cards– Brokerage
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Front end applicationsFront end applications
S1Virtual Financial Manager (VFM)
VLM Virtual Loan Manager
VIM Virtual Investment Manager
VBM Virtual Bank Manager
VCCM Virtual Credit Card Manager
• Retail Banking Products and Services
• Credit Card Services
• Loan Balance and Servicing
• Brokerage Services
Integrated Applications Financial Management Functions
Internet/VRU
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Customers- New- Current
S1 Virtual Financial Manager (VFM)
Products,Services and
Operation Management
Products,Services and
Operation Management
MANAGEMENTAND CONTROLMANAGEMENTAND CONTROL
INFO
RM
ATIO
ND
ELIV
ER
YIN
FO
RM
ATIO
ND
ELIV
ER
Y
RELATIONSHIPMANAGEMENTRELATIONSHIPMANAGEMENT
SER
VIC
E
DELIV
ER
YSER
VIC
E
DELIV
ER
Y
Functional OverviewFunctional Overview
Back-end SystemsFront-end Systems
Internet/VRU
ATM/POS/CARDS
Network
Branch/Call Center
Adaptive Layer
Delivery Channels
3rd Party Processing:Securities Processing
Clearing
VBMVLM
VCCMVIM
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Technical EnvironmentTechnical Environment
Bank core system
End UserClient
LocalDirector
Firewall
Firewall
CommServer
InternalNetwork
DB Server
App Server App Server
App Server
App Server
Internet
SSL
H9000
H9000
H9000
H9000
Internal Network
DB Server
Workstation
Cash Dispensersand other EMP
TerminalsTelephone Banking
CommServer
Front end Back end
• Internet user works on a local database which is a copy of the bank database (databases are replicated several times a day)• Database replication necessary
• Real time (front end) versus batch systems (back end)• Security reasons
• Back end could be outsourced to third party
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The adaptive layer provides the linkage between The adaptive layer provides the linkage between the front-end and back-end systemsthe front-end and back-end systems
ADAPTER
•Internet Account Origination - New customer and account information.•Customer and Account Maintenance - Customer and account additions, modifications, and deletions.•Deposit Account - Details of deposit accounts•Deposit Transaction - Detail listing of deposit account transactions•Credit Account - Details of credit accounts•Credit Transaction - Detail listing of credit account transactions•Credit Card Payment Reconciliation - Performance of credit card account maintenance, payments and debits•Loan Account - Detail information of loan balances•Funds Transfer - Creation, execution of review of funds transfers•Payee - Maintenance and review of payee list•Payment - Creation, execution and review of payments transactions and receive automatic payment requests from payment service.•Payment Reconciliation - Perform customer and account maintenance
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Integration of front end to back endIntegration of front end to back end
Most legacy or client/server-based enterprise applications were not designed to inter-operate with external applications or browser-based; end-user clients
Multiple and disparate
• Applications (custom, legacy, packaged)
• Platforms
• Databases
• Transaction processors
• Data entry points
• Versions of the same data
Application systems that are built at different times by different groups operating independently of each other
Incompatible business data formats
Trading Partner
CRM SCM
Lab System
SAP Legacy
eAI Vendor
Challenges
a2a: Integration of back-end systems (SAP R/3<-->Legacy)
a2a: Integration of front-end to back-end systems (Siebel<-->SAP R/3)
b2c: Integration of web applications with front- and back-end systems (self- service, customer interactions, etc.)
b2b: Integration of applications across corporate or organizational boundaries (integration of business processes among trading partners, suppliers, distributors, etc.)
eAI means Enterprise Integration
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Traditional Integration ArchitectureTraditional Integration Architecture
Limited reusability
Interfaces were typically built on an as-needed basis and were not built in a manner that allowed components to be reused
Tight coupling of applications
The interfaces were tightly coupled to the applications forcing changes to an application on one end of the interface to directly impact the other end of the interface
Invasive integration approach requiring modifications to source applications
Change to one application can affect all interfaces to/from that application
Limited scalability of architecture across the enterprise
Significant custom coding
No centralized management or visibility of information flows and business rules
Legacy
Siebel
SAP
Internet
PeopleSoft
Point-to-Point Custom Code
Traditional middleware solutions facilitate the integration of
individual applications and discrete transactions between them
Point-to-Point integration with multiple interfacing methods
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eAI ArchitectureeAI Architecture
App.A
App.B
App.C
App.DApp.
E
Message Broker
App. B
App. C
App. A
App. D
App. E
Message Brokers
Network Centric Hub/Spoke or bus messaging architecture
reduces # of connections
Loose coupling of integrated applications
Prebuilt adapters
Reusable data/message
transformation/formatting functions
Near real-time and/or batch integration
Interenterprise connections
Central control of multistep business processes
across multiple applications
eAI solution is a set of technologies that enables the integration of
end-to-end business processes and data (information) across
disparate applications to increase the organization’s ability to respond
and adapt to change by providing the following services: business
process management, application connectivity, translation and
transformation, communication middleware and message routing.
Chaining together of discrete transactions in the
form of a business process
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eAI evolutioneAI evolution
1980s: Legacy systems
• Departmental focus, but centralized platform and data
• Highly fragmented, after-the-fact view of the business
1990s: Client/Server, Packaged Applications, Netcentric
• Enterprise focus
• Partially integrated, after-the-fact view of the business
• Replaced much of existing IT investment
2000+: Enterprise Application Integration (eAI)
• Extended enterprise focus (B2B, B2C, etc.)
• Fully integrated, up-to-the-second visibility and control of the business
• Preservation of existing IT investment
• Integrate packaged, custom, legacy, and web applications
• eBusiness and B2B drive IT investments
$248$468
$892$1.199
$1.564
$2.073
$2.544
0
500
1.000
1.500
2.000
2.500
3.000
1998 1999 2000 2001 2002 2003 2004
Millions of $
Source: Gartner Group
Enterprise Application Integration Market
Main uses of eAI %
Get new applications into production quickly 38%
Move information beyond traditional confines 20%
Expand supplier and customer relationships 18%
Integrate a best-of-breed world 14%
Mergers and acquisitions 10%
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eAI componentseAI components
Business process level integration and management
Business Process Management
Prebuilt adapters to packaged applications, technology and custom adapter development kits
Application Connectivity
Message and data transformation and formatting
Translation andFormatting
Communications middleware and message routing
Communications Middleware
An eAI solution is composed of the following services:An eAI solution is composed of the following services:
The Business Process Management layer is responsible for the definition and management of cross-application business processes across the enterprise and between enterprises. These services enable the communication not just of data, but also of the business process context of the data being sent to another application.
The Communications Middleware component provides the architecture that implements various messaging models and route messages according message content and context. These services provide the connection among disparate resources, as well as security, queuing, and the functionality to reconcile network protocol differences.
The Application Connectivity layer provides reusable, non-invasive connectivity with packaged software (e.g., ERP, third-party best-of-breed) and custom legacy systems enabled by reliable, event-driven messaging.
The Transformation and Formatting layer is responsible for the conversion of data and message content and syntax to reconcile the differences between data from multiple heterogeneous systems and data sources. This layer is responsible for maintaining the information structure of the messages passed between systems and their meaning in a format that can be comprehended by another application.
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Inter-enterprise integrationInter-enterprise integration
Customer
TraditionalPartner
Vendor
Traditional Partner
Forwarding/Transportation
Work Centers
Legacy
InventoryManagement
ProductionPlanning
Purchasing
SCA
Management
DataWarehouse
CRM
Marketing
Sales
CustomerRelations
CustomerService
Management
ERP
Finance -Accounts
Receivable
Returns
OrderManagement
Shipping
Billing
WarehousesPlant
Maintenance
Finance -AccountsPayable
CRM
Portal
Internet
Suppliers
Customers
Third Party
Employees
eAI
Customer
TraditionalPartner
Vendor
Traditional Partner
Forwarding/Transportation
Work CentersWork Centers
Legacy
InventoryManagement
ProductionPlanning
Purchasing
SCA
Management
DataWarehouse
CRM
Marketing
Sales
CustomerRelations
CustomerService
Management
ERP
Finance -Accounts
Receivable
Returns
OrderManagement
Shipping
Billing
WarehousesWarehousesPlant
Maintenance
Finance -AccountsPayable
CRM
Portal
InternetInternet
Suppliers
Customers
Third Party
Employees
eAI
Convergence of eAI and B2BConvergence of eAI and B2B
The business case for a new web-application is greatly enhanced if the new application can be integrated into an overall distributed application architecture
eCommerce integration involves establishing connectivity between an enterprise’s front-end, web-based sales engine and its back-office systems
This kind of integration work is primarily intra-enterprise
Inter-enterprise integration is externally focused and requires that an enterprise’s systems be connected with those of its business partners
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Product Segmentation: Integration “Type”Product Segmentation: Integration “Type”
Each vendor initially focused on a specific integration area and has been expanding their capabilities into the other integration spaces
Business to Consumer (B2C)
Business toBusiness (B2B)
Application to Application (A2A)
EDI
Mercator
IBM
NEON
Viewlocity
SeeBeyond
webMethods*
CrossWorlds
Extricity
Sterling Commerce
Vitria
Tibco
*webMethods acquired Active to round-out their B2B-only offering.Active’s focus was only on A2A.
Evolved Capabilities
InitialOffering
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eAI Vendors’ CapabilitieseAI Vendors’ Capabilities
Source: Gartner Group Strategic Analysis Report, September 2000 – R-11-5113
Niche Players Visionaries
Challengers Leaders
Microsoft
Sept, 2000
BEA
Viewlocity
Healthcare.com Sun
Extricity
GEIS
Sterling Com.
Vignette
Candle
Optio
Sopra
Sungard
CrossWorlds
OracleFujitsu-Siemens
Software AG
Level 8
Eclipsys/MSI
AbilityTo
Execute
IBM
webMethods
VitriaNEON
SeeBeyond
Tibco
SAGA
Mercator
Clients should typically consider vendors in this area
Completeness of Vision
most feature-rich, capable technologies
Mapping of eAI vendors’ according to their capabilities
%Market Share
14
12
12
7
5
5
45Others
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Technical enablers
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
AgendaAgenda
Case 1 : a newspaper site (information)
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Business modelBusiness model
New virtual life insurance company, part of Royal Nederland (Allianz Group)
Virtual company concept:
– Very few people working for the entity
– All back offices activities have been outsourced to Accenture Insurance Services (ACIS): HRM, policy administration, finance, IT...
– Brokers and banks are representing the distribution network Key assets :
– B2B extranet to larger Brokerage organizations
– ACIS is available to other companies for outsourcing of their back office
– Full STP (Straight-Through processing)
Universal Level B2B Extranet
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ReportingFinancial administration
ServicesServices
Insurance Administration
• Process application
• Acceptance & policy printing
• Alterations
• Termination
• Prolongation & investment
• Commission calculation
Support General
• Fund alterations
• Primary process
• Obliged reports:
- Tax
- Yearly reports
- Actuarial reports
•Debtor management
• Creditor management
• In-/Excasso
• Consolidation
• Chart of accounts mgt.
• Service management
• IT operations
• IT applications mgt.
• Management
• Human Resources
• Office management
New Business
• New products
• New services
• Legal changes
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Technical ArchitectureTechnical Architecture
F I REWALL
Policy Express
CIA
Web Case Management
UnipasC/S
ExactC/S
Interface
Client relationdatabase
Reportingdatabase
Web
Policyholder
Broker
To speed up the interaction between ACIS and the intermediary parties, internet initiatives are being developed. In addition to the capability to access workflow management (CIA) and to deliver policy applications electronically (Policy Express), the brokers are given the opportunity to acquire policy quotations on-line.
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Life Life insurance ainsurance applicationpplication process process
•Initial check•Work Preparation
Process Checklist
Medical Acc.
Process Standard
Acceptance
ProcessMedical
Acceptance Requirements
Medical Examination
Renew Policy
Quotation
MedicalAdvice
Intermediary
Collect Confirmation& final docs.
Follow-up open items
Process & Issue Policy
Policy
MedicalAcceptance
Report
RejectionProcess
Universal Leven Medical Acceptance
(Royal)
Case Management
ProgressNotice
Applic.
Case Management
One of the key process characteristics of the application handling at ACIS, is the fact that standard applications in compliance with the UL medical criteria can be processed without interference from the UL Medical Acceptance department. This considerably speeds up the processing procedures.
INSURANCE
UL / EXTERNALS
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WorkWorkfflow Managementlow Management
The Case Management system helps to keep track of the application status application, dealing with the parties involved in the process. In order to monitor the progress, it produces reports that measure the status against the agreed Service Level.
C.M.: Application
C.M.: Medical Acceptance
Applicant Info:• Client data from UniPas
Application Milestone Dates:• Application received• Progress notice• Letter of covering• Mortgage passing• Last document received• Issuing policy• Service Level benchmark
Medical Milestone Dates:• Medical checklist• Medical examination• Authorization• Medical report• Medical adviser
Policy Application Status:• Pipeline• Passing• Actual• Alteration• Rejected New Quotation Info:
• Mark-up percentage • Restrictions• Date new quotation• Date client approval
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What is Workflow ?What is Workflow ?
Workflow can be broken down into 3 concepts:
Workflow describes how work moves through an organisation, i.e. workflows are an organisation’s business processes and the rules that drive and control the processes.
Workflow Automation is the electronic modelling of these business processes, i.e. mapping process flows and capturing rules and business logic.
Workflow Management is the ability to maintain and manage work in an operational environment, i.e. monitor, revise, balance, re-route work.
In summary: “The action of electronically modelling business processes so that resources and tasks
can be coordinated, monitored and revised to improve productivity”
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The Role of Workflow AutomationThe Role of Workflow Automation
Definition:
The action of electronically modeling an entire business process, which can then be coordinated, monitored, and revised to improve productivity
“Workflow” can be:
• Routed Paper• The Business Flows of Corporation X • A Systems Architecture Component/Service• A Function of a Package Solution (e.g. ERP)• A Workflow Management System
Functions:
• Offer a tool set through which to MODEL entire business processes
• Provide application services which automatically COORDINATE manual and automated process functions
• Maintain extensive statistics from which to MONITOR process performance
• Provide a flexible framework for management to dynamically REVISE business processes
Process Management
1] Route Building
routes work items to the next required activity
2] Rules Building
provides the intelligence for determining process paths for a work item, based on the process state and the outcome of previous tasks
3] Roles Management
defines a user or a workgroup’s responsibilities and tasks in the process
4] Queue Management provides access and control of work queues or “in-baskets”
5] Monitor / Reporting
Functions
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High Level Rules for WorkflowHigh Level Rules for Workflow
Workflow Technology is Value Added
when The Enterprise Has:
Well defined (modelable) business processes
Static business processes
Few (or consistent) exceptions
Delays occur due to process transfer time
Delays due to business process steps being separated by physical distance
Tracking or auditing of work in progress is a priority
…and can result in:
Increased Productivity
• Workers focus on value-adding activities• Directs users to high priority work• Automates routing of work• Concurrent access capabilities
Reduced Costs
• Reduced manual effort• Reduced administrative effort• Improved resource utilization• Reduced transfer time between activities
Increased Control
• Automated audit trail• Improved accountability• Exception handling• Faster communication• Faster decision making• Monitors task and process costs
Increased Flexibility
• Improved information access• Maximize decision making capability at point of decision• Single point of process modification• Dynamic reprioritization and redistribution of work
Powerful Statistics
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Conceptual Workflow ArchitectureConceptual Workflow Architecture
Workflow Participant Management
ProcessDefinitions
ActivityDefinitions
ResourceDefinitions
MilestoneDefinitions
RuleDefinitions
Workflow Procedures Database
Workflow Process Owner Services User Workflow Services
Workflow Engine
Workflow APIs
Manufacturing
Human ResourcesMarketing
Finance / Accting Customer Service
Order Entry Manufacturing
Human ResourcesMarketing
Finance / Accting Customer Service
Order Entry
RDBMS Business Applications
Process Statistics Database
QueueData
ProcessInstance
Data
Work Item Reassignment
ResourceScheduling
Management Reporting
Application Workflow ServicesBatch
ProcessesAsynch
ProcessesProcess Initiation
PerformanceSupport
(Online Help)
Manufacturing Finance / Accting
Marketing
Order Entry Customer Services
Human Resources
DesktopApps.
Process Initiation
ProcessReview
Message Box
WorklistHandler
Workflow Systems AdministrationResource
MaintenanceProcess RuleMaintenance
ProcessMapping
Event Manager
Rule & Route Management
InstanceManagement
QueueManagement
AlertManagement
ILLUSTRATIVE
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What components make up a Workflow Solution?What components make up a Workflow Solution?
Workflow solutions are made up of several basic components necessary to design, build and execute workflow management systems:
1. Process Design Methodology – a workflow system should be designed with the process flow as the focal-point
– typically, an organisation would use their own standards/methodology
2. Process Mapping Tool– draws a map representing process flows
– vendors typically offer a graphical mapping tool to “visualise” the process flow
3. Rules Builder – defines routing procedures, security, priority, alert notifications, etc.
– usually integrated with the process mapping tool
4. Workflow Engine• manages the process flow between client applications, server applications, users, data stores.
• moves work items along the process maps
• central point of coordination and management
5. Workflow Administrator Utility
– run-time component which gathers workflow statistics and generates reports, e.g. processing times, queue volumes, workgroup volumes, alert notifications etc..