Day 8

1
Day 8

• Foundations of Business Integration

2
Learning Objectives

• Business Integration
• Definition and relationship to BPM
• Challenges
• Requirement
• Areas
• Enterprise Application Integration
• IT vendors view of business integration
• B2B Integration
• Process design and Partner Interface Processes
• Application exercise
• Linking BPR principles to Business Integration

3
BPM and Business Integration

• BPM
• A business view of BPM Set of business processes
  that can be defined, optimized and managed
• A technical view of BPM Development using
  software designed for creating, executing, and
  monitoring business processes
• Business integration
• Exchange of business-critical information between
  applications in real time (Yee and Apte 2001)
• Highest level of optimization of a business
  process
• 35 of all IT spending is for business
  integration (Gartner Group)
• Software used for BPM
• Graphical tools For business process modeling
  and design
• Workflow System and human
• Integration technologies Application servers,
  adapters, etc.
• Business activity monitoring

4
Business integration challenges and areas

• Some challenges of business integration
• Multiple architectures, Multiple platforms,
  multiple protocols
• Proliferation of independent COTS applications
• Different data formats, different semantic value
• Two main areas of business integration
• Intra-enterprise integration Enterprise
  Application Integration (EAI)
• Inter-enterprise integration B2B integration

5
Business Integration Requirements

• Process integration
• Build BP Modeling
• Run BP Execution
• Manage BP BAM (dashboard OLAP) BP adjustment
  (business rules resource allocation)
• Application integration
• Build a point of access for the multiple
  applications involved in the integration
• ?Automate (end-to-end) business process
  activities
• ?Implement human workflow to improve exception
  management quick resolution reduced risk
• Data integration
• Allow for data consistency to have an application
  access data of another application
• ? Translations Syntax and Semantics
• ? Tools (Parser adapter) and platform-independen
  t way of representing data (XML)
• Transport integration
• Move data between points of integration
• TCP/IP suite Platform-independent protocols
  often used within and between organizations
• Tools Messaging message broker

6
Aspects of Business Integration(Source
www.ibm.com)
7
BPM cycle(Source www.oracle.com)
BPM cycle(Source www.oracle.com)
8
Managing cross organizational processes

• Need to design business processes that link an
  organization to its suppliers and/or customers
• Shaping/Supporting computer-based applications
  EDI and VAN
• Major problems involved
• Lack of standards
• Makes it difficult to quickly add new partners
  (Plug-and-Play e-process misalignment)
• Can cause delayed or inaccurate information
  (Information coordination misalignment)
• Limited number of content areas for messages
  (knowledge sharing misalignments)
• Expensive
• Partner Interface Process (PIP) help reduce such
  misalignments
• PIPs are standards developed for dialog between
  adjacent e-business processes

9
PIPs

• XML-based standard developed by RosettaNet for
  B2B Internet transactions
• Used for dialog (content) between adjacent
  e-business processes
• Depict interactions related to a business
  transaction between two partners
• Help coordinate activities and sharing
  information between partners
• Cover several areas of the SCM process (see slide
  on clusters)
• Illustrations
• PIP as touch point activities between enterprise
  processes (p.173)
• PIP in action for the inventory reporting process
  (p.179)
• Data exchanged during the purchasing process (see
  next 3 slides)

10
Partner-to-Partner Electronic Business Interface

Source RosettaNet 2002
11
RosettaNet Cluster/Segments
Source RosettaNet 2002
Cluster 1 Partner Profile Management
Cluster 6 Service and Support
Cluster 3 Order Management
Cluster 4 Inventory Management
Cluster 5 Marketing and Support
Cluster 2 Product Information
Cluster 7 Manufacturing

• WarrantyAdministration
• TechnicalService andSupportInformation

• Manage Profile Subscriptions
• Request Profile Data
• Profile Change Notification
• Profile Process Request

• Preparation for Distribution
• Product Change Notification
• Product Design Information
• Collaborative Design

• Design Transfer
• Manage Manufacturing
• Distribute Manufacturing Information (Quality)

• Quote Order Entry
• Transportation Distribution
• Returns Finance
• Ship from Stock Debit/Credit

• Demand Planning and Release
• Inventory Allocation
• Inventory Replenish-ment
• Inventory Reporting
• Sales Reporting
• Price Protection

• Lead Opportunity Management
• Marketing Campaign Management
• Design Management
• Provide Service

12
The Purchasing Process
Source RosettaNet 2002
3A4 Request
3A4 Acknowledge
Generate Purchase Order
Acknowledge Acceptance,
Rejection or Pending
S E L L E R
B U Y E R
Notify Purchase Order Acknowledgment (Accept or
Reject when 3A4 was Pending)
3A7
Reply
Change Purchase Order
3A8
Acknowledge Changes
Reply
Cancel Entire Purchase Order
3A9
Acknowledge Cancellation
Query Purchase Order Status
Reply
3A5
Distribute Purchase Order Status
3A6
13
Designing e-biz SC processes

• Scoping the process
• Identifying the e-biz processes
• Type of interaction as defined in clusters
• One partner sends X, the other receives it (see
  figure p.180)
• Designing the TO-BE e-biz PIP
• Line of visibility editing mode (Swim Lane
  diagrams)
• More objects (Role and Role interaction)
• Estimating performance metrics
• Validating PIP by others

14
Application exercise

• Business integration allows for
• Process automation
• Process consistency
• Process flexibility
• Process reporting
• Process optimization
• To which BPR principles do the statements above
  refer to?

15
Thank you