Partner Selection in End to End Resource Planning: An SOA and Data Mining Based Approach

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Partner Selection in End to End Resource
Planning An SOA and Data Mining Based Approach
www.oasis-open.org
MIN NI, PHD Post-doctor research
scientist Digital China Post-doctor station
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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Changing of business environment

• Business environment is tougher
• Rapid changing of market landscape
• Globalization
• Companies want to maximize their business
  results
• Revenues up
• profits up
• costs down
• Sustaining profit growth becomes critical

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State of the enterprise

• Crisis of Complexity
• No green-field development
• New applications must integrate with existing
  heterogeneous legacy systems
• IT Must Deliver Business Agility
• Support new business opportunities
• Leverage new technologies

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Changes in IT Architecture

• Business management pushes for better IT
  utilization and greater ROI
• Re-Use of IT assets, integration of B2X and ERP.
• Merger and acquisition have become a fact of life
• Integration of historically separate systems
  across enterprise borders
• New systems must be developed with (current or
  future) heterogeneity in mind
• Results driven.
• Internet everywhere has created a set of new
  business models
• Integration anywhere and anytime is possible.

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Interoperability via SOA

• Data, logic and infrastructure accessed by
  routing XML-based messages (Web Service)
  throughout Internet
• Location is meaningless
• Multiples Services suppliers
• Ubiquitous computing
• Preserves and connects existing systems
• Using the Right Software Architecture brings
  exponential productivity gains

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SOA in Action (example)
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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SOA has proven

• Data level
• Lower cost, and more efficient way to integrate
  application across the enterprises.
• Application level
• Development with Lower entry barrier, easier way
  to collaborate, and faster development cycle.

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Next step of SOA

• Business level
• How to coordinate different services in business
  context and achieve the best business model?
• How to generate the most efficient business
  process automatically and intelligently?
• The answer is EERP
• End to End Resource Planning

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EERP concept resource planning

• With SOA and open standard, we can now help
  enterprises to improve their profits and sustain
  the profits, we introduce EERP
• End to end resource planning, optimize the
  resources along an specified value chain.

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What does EERP do?

• What is it?
• A new way to look at enterprise IT application
• Integration inside and outside of a enterprise
  border.
• A new software architecture and platform
• a collection of Web Services that perform various
  enterprise functions, data exchange, process
  integration, collaboration and other relevant
  work.
• A self-healing, intelligent, and reliable service
  choreograph platform (SoftGrid)

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Real-time Value Chain Optimization
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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EERP top-down service design and deployment
strategy
Step 1
Step 3
Step 5
Step 7
Business ontology definition
Service oriented analysis
Service implementation
deploy service to EERP platform
Step 2
Step 6
Step 4
Service testing
Business process discovery definition
Service oriented design
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EERP top-down business process orchestration
strategy
Step 1
Step 3
Step 5
Step 7
Business ontology definition
Service discovery
Service orchestration
execute QoS auditing
Step 6
Step 8
Step 2
Step 4
Service (business process) execution
service QoS recording assessment
Business goal Investigation/ definition
QoS deployment calculation
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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Value Chain Integration
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Integrating the Supply Chain Value Chain

• A Supply Chain transforms into an integrated
  Value Chain when it..
• Extends the chain all the way from all levels of
  suppliers to customers.
• Integrates the back-office operations with those
  of the front office.
• Becomes highly customer-centric, focusing on
  demand generation and customer service.
• Is proactively designed by chain members to
  compete as an extended enterprise.
• Seeks to optimize the value added by information
  and utility-enhancing services.

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Challenge of the problemto build value chain
agilely

• How to identify voice of customer', and satisfy
  them
• The complexity brought by the enormous amount of
  suppliers (over 1000 suppliers for an automobile
  manufacturer)
• The efficiency of decision-making
• The challenge of integrating enterprise and its
  suppliers

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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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Selection strategy

• Key Success Factors (QoS factors)
• -Quality
• -Cost
• -Delivery time
• -Innovation
• Continuous Improvement
• Total Value-Chain Analysis
• Dual External / Internal Optimization Focus

Customer Satisfaction
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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(QFD) Quality Function Deployment Process

• How to capture customers requirements
• QFD (aka House of Quality) was first
  implemented by Yoji Akao integrate the voice of
  the customer into the design and delivery of
  products.

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The House of Quality

• 5. Roof

5. Technical Correlations

• 3. Technical

3. Technical Characteristics

• Requirements

4. Customer Requirements -Technical
Characteristics correlation matrix
2. Product planning matrix
1. Customer Requirements

• 4. Inter

• -

• relationships

6. Goal constraints

• 6. Targets

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QFD Suppliers Selection

1. Draft a list of supplier requirements that
   contribute to the fulfillment of customers needs.
2. Formulate evaluation criteria for suppliers.
3. Determine the importance (weight) of the
   criteria.
4. Rank your suppliers, and make appropriate
   selection that will accommodate customer needs.

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Extended House of Quality reflecting candidate
suppliers
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Data Mining in supplier selection

• By data mining, frequent fault patterns under
  different environments and different use
  patterns, critical requirements can be found
• As mining result, frequent fault patterns can be
  used to build a components correlation matrix
• Manufacturers can perform competitive product
  analysis based on information from customer
  profiles and the market in order to determine
  competitive products that greatly affect the
  concerned product.

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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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An SOA-based System for supplier selection
Why use SOA? Data/Services are distributed/heterog
eneous Why choose EERP? To build real-time
value chain and perform optimization
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An SOA-based System for supplier selection based
on extended QFD and DM
Services implemented Data object
services Mining services Decision-making
services Optimizing services
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System implementation

• System requirements
• Operation System Windows NT/2000/XP/2003, LINUX,
  UNIX
• DBMS IBM DB2, Microsoft SQL Server, Sybase,
  Oracle, Informix and DBMS that support JDBC/ODBC
• Application server WebLogic, websphere, etc

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System interface
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www.oasis-open.org
Outline

• EERP
• Background
• Real-time Value Chain Optimization
• Design Implementation strategy
• Supplier selection
• Challenge of the problem
• Selection strategy
• QFD Data Mining
• Supplier selection implementation on EERP
• Conclusion

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Conclusion

1. SOA provides the possibility and flexibility to
   integrate heterogeneous systems
2. EERP use information gathered from the products
   full life-cycle to perform real-time value chain
   optimization, which is needed in real-world
   business scenarios
3. EERP will lead the trend of enterprise computing
4. Data mining can discover useful and interesting
   knowledge in business context.

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Thanks!