<Insert Picture Here> Oracle AIA and SOA: Innovation and Process Excellence Sanat Joshi Vice President, Oracle Industries Business Unit March 2009 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Oracle Proprietary. Copyright 2006, Oracle Corporation Agenda • The Opportunity for Relevance and Revenue • SOA and AIA for Accelerating Innovation and Process Improvements • Insight and Analytics • Customer Examples Oracle Proprietary. Copyright 2006, Oracle Corporation <Insert Picture Here> Key Take-Aways 1. Customers are willing to invest in projects with immediate and measurable ROI 2. Process Improvement, Manufacturing Operations Applications and SOA projects remain top priorities for manufacturing companies 3. Oracle AIA and SOA can deliver rapid business process improvements and reduce IT costs 4. Targeted Business Intelligence projects like Manufacturing Operations Center deliver large ROI Oracle Proprietary. Copyright 2006, Oracle Corporation Mfg Intelligence & Integration : Market Size The manufacturing operations software application market, currently tremendously underserved, will continue to grow, experiencing a fiveyear 13% CAGR and surpassing the $8B mark by 2011. - AMR Research Oracle Proprietary. Copyright 2006, Oracle Corporation Business Process Improvements is Priority “Integrating and enhancing existing systems and processes is the most frequently cited technology priority.” State of the CIO Survey 2007, CIO Magazine “The 30 Most Important IT Trends for 2007” November 2006 “When business and IT executives jointly take an end-to-end look at business processes, the resulting investments can have up to ten times the impact of traditional IT cost reduction efforts.” Managing IT in a Downturn: Beyond Cost Cutting, McKinsey & Company, 2008 Oracle Proprietary. Copyright 2006, Oracle Corporation SOA Spending Continues to Grow Oracle Proprietary. Copyright 2006, Oracle Corporation Think Business Process – Not IT Applications Key Business Processes ENTERPRISE MANAGEMENT and BUSINESS INTELLIGENCE Align Organization with Corporate Strategy Align Market Opportunities with Investments Design Business Infrastructure Analyze Deviations & Initiate Corrective Actions Provide Strategic Financial & Operation Reporting OPERATIONS Concept to Market Ideation and Project/Portfolio Management Product Design/ Development Quality and Cost Management Prototype/Pilot Sustaining Engineering New Product Introduction Market to Demand Market Planning, Budgeting, Events/ Campaigns Price Management Product, Services, & Catalog Management Partner/Channe l Management Sales Planning, Budgeting & Execution Quote, Configuration & Order Management Contract Management Compensation Management Demand to Delivery Sales & Operations Planning Strategic Sourcing Supply Chain Execution Production Scheduling Manufacturing Warehouse Management Fulfillment/ Logistics Installation/ Commissioning Service Life Cycle (Delivery to Retire) Self Assisted & Assisted Service Remote Management Installation, Inspection, preventive Management Contract, Warranty .. Management Field Service Execution Service Collaboration Service Analysis End of Life OPERATIONS SUPPORT Business Management & Control Financial Control & Reporting Cash & Treasury Management Human Resources Management IT Management Enterprise Information Mgt. Recruiting Oracle Proprietary. Copyright 2006, Oracle Corporation Workforce Deployment Workforce Retention Compensation Management End to End Processes Span Organizations and Applications Edge Applications Order to Cash Procure to Pay Industry Solutions Oracle SOA Technologies BPEL Process Manager Enterprise Services Bus Business Rules Engine Developers Integration / Interactive Services Repository Integration Broker XML Gateway • • • • • • Invoices • Payments • Financial Orders Leads Cases Customers Tasks sanctions (OFAC*) WSG • Procureto-pay • Vendor validation Oracle Proprietary. Copyright 2006, Oracle Corporation Integration Broker • • • • Recruiting Person Job data Demographic data SOA and Oracle Application Integration Architecture Flexible IT Architecture Oracle Proprietary. Copyright 2006, Oracle Corporation Typical BPM Lifecycle Various Stakeholders Various Phases Business Process Monitoring (BAM) Business Process Analysis (BPA) Business Analyst Model Simulate Optimize BPM Lifecycle Business Analyst Process Architect Business Engineer LOB Process Owner BPM Monitor Implement Business End User Deploy Execute Developer Business Process Execution (BPE) Process Administrator Oracle Proprietary. Copyright 2006, Oracle Corporation BPM increases the business value of SOA BPM provides a great abstraction for building business systems Front end Applications Business Services (“Composite”) SOA provides the platform that bridges Biz Processes / Workflows the business processes and operational resources Service Orchestration Implementation Services Applications Packaged/Legacy /Custom BPM optimizes the use of SOA across core business processes that impact business objectives Oracle Proprietary. Copyright 2006, Oracle Corporation The Oracle SOA Technologies BPA MANAGEMENT Suite & Analyst MONITORING Tools Events Analytics ORCHESTRATION Business Monitoring JDeveloper BPEL Process Manager Application Development Framework Business Intelligence BAM Data Integrator Routing Transform Mediation ETL & Data Replication Quality CONNECTIVITY Adapters Apps Messaging DB Legacy System GOVERNANCE Monitoring Web Services Manager Native Business Human BPEL Rules SERVICES Workflow ROUTING & DATA ESB Enterprise Manager B2B Partners J2EE Application Server Oracle WebLogic Application Server Oracle Proprietary. Copyright 2006, Oracle Corporation WS Policies Security Registry UDDI Discovery Policies Metadata Repository The concept of AIA Optimize Offer Siebel CRM Forecast Demand Capture Order Pick, Pack, Ship Deduction & Settlement Billing Enterprise Service Bus Sales Order Invoice… Customer E-Business Suite BPEL Process Manager AIA Enterprise Business Objects & Services Layer Oracle Data Integrator SAP or ISV App Custom Apps Composite UI End to end Composite Business Process Common Objects, Standardized Business Services Application Business Connector Service AIA business connectors for all participating Apps API or Web Service Loosely coupled Oracle Proprietary. Copyright 2006, Oracle Corporation Linking Processes to Applications Application Integration Architecture (AIA) Business Processes Enterprise Business Objects (EBOs) Service Orchestrations Web Services Enterprise Applications Oracle Proprietary. Copyright 2006, Oracle Corporation How is AIA Delivered Industry Reference Models: Industry Processes and Integrations Process Integration Packs: Pre-built composite business processes across multiple enterprise Applications Foundation Pack: Common Object Models, SOA Architecture, Best practices Pre-Built SOA and Direct Integrations Built using Oracle Fusion Middleware Oracle Proprietary. Copyright 2006, Oracle Corporation AIA Foundation Pack Faster, Structured and Repeatable Approach to Process Composition Enterprise Business Processes • Application Independent • Annotated with Business Services Enterprise Business Services Library • Prebuilt and standards-based • Application Independent SOA Governance • Business Service Repository • SOA Test, Error Handling and Diagnostics Top-Down AppIndependent Business Processes Oracle’s own implementation of Standardized Building BlocksSOA for Interoperability & Reusability End to End Lifecycle Consistency and lower TCO Quicker Assembly of Composite Business Processes Service Oriented Programming Model • Same approach used by Oracle Development • Supports both web service and batch Service Oriented Reference Architecture • Open & nonproprietary • Includes both content and technology Evolve to an Enterprise Architecture Leveraging What You Have Oracle Proprietary. Copyright 2006, Oracle Corporation Key Cross Application Processes (Examples) Telecom Auto Manufacturing Order to Activate Lead to Cash Revenue Management Channel Management Customer Care Product Lifecycle Management Aero & Defense Chemicals Education & Research Energy Engineering & Constrction Retail Trade Promotion Execution Account Origination with Core Banking Integrated Financial Controls Trade Promotion Management Multi-Channel Customer Service Multi Channel Order Management Demand Management Other Core Banking Processes Integrated Logistics Industrial Mfg Financial Services CPG Insurance & Health Life Sciences Logistics Service Providers Natural Resources Oracle Proprietary. Copyright 2006, Oracle Corporation Oil & Gas Professional Services Public Sector Travel & Trans Utilities AIA Foundation Pack 2.1.0 Enterprise Object Library : Lifecycle Extensions: Governance: Standards Support: • Account Balance Adjustment • Advance Shipment Notice • Bill Of Materials • • • • • • • Item Balance 46 Objects, 460 Service Operations Test Validation, Error Handling, Diagnostics Service Repository, Process Models CCTS 9.0, OAG, ISO 11179 • Bill of Lading • Item Composition • Demand Forecast • Item Structure • Freight Terms • Location • Shipment Request • Manufacture Item • Customer Party Composition • Disbursed Payment • Price List • Engineering Change • Purchase Order • Order • Quote • Installed Product • Received Payment • Invoice • Request For Quote • Item • Currency Exchange • Debit Memo • Bank Account • Transaction Calendar • Chart of Accounts • Fund Transfer • Inventory Reservation • Accounting Entry • Credit Memo • Request For Quote • Requisition • Sales Order • Shipment Plan Payment Term Payable Invoice Pick List Promotion Shipment Receipt Supplier Party Sales Quote Oracle Proprietary. Copyright 2006, Oracle Corporation • Fund Transfer Schedule • Shipment Advice • Check AIA Partner Models & Programs The goal is to create a comprehensive partner ecosystem to develop, extend and deploy Oracle AIA SI Strategic CoDevelopment Model ISV Integration Development & Validation Model SI Led Development & Validation Model 2 1 5 AIA Partner Ecosystem 4 AIA for SAP Special Partner Model Partner Model Key Characteristics 1 SI Strategic CoDevelopment Model • Joint investment in development and GTM • Oracle product and IP • Partner positioned as preferred implementer in Named Accounts 2 SI Led Development Model • Partner invests in building repeatable solutions • Uses AIA Foundation Pack and may contribute to it • Partner solution and IP. Validated, endorsed and promoted by Oracle. Listed on Oracle AIA Solution Catalog 3 SI Implementation Engagement Model • Awareness, Education and Training on AIA • Deal Support, COE and Labs Setup for AIA products • Cost effective service delivery network for AIA 4 AIA for SAP – Special Partner Model • Special partner model to support creation of Oracle Apps to SAP PIPs •Multiple GTM & implementation partners possible 5 ISV Integration Development & Validation Model • ISV builds and owns the AIA business connectors for their Apps • Validated, endorsed and promoted by Oracle • Non-competitive ISVs preferred at the PIP level 3 SI Implementation Engagement Model Oracle Proprietary. Copyright 2006, Oracle Corporation Co-Development Implies Shared Opportunity Engage System Integrator Partners to co-invest in AIA integrations and new industry applications Objective • Accelerate partners’ service delivery capability around Oracle solutions • Enhance Oracle’s integration and industry applications roadmap Engagement Model • Joint investment in development resources and go-to-market activities • Partner selection based on domain expertise Shared Opportunity • Oracle owns and supports the product • Partner positioned as preferred provider at named accounts for services Oracle Proprietary. Copyright 2006, Oracle Corporation Process Monitoring and Continuous Improvement enables Operational Excellence BI and BAM Oracle Proprietary. Copyright 2006, Oracle Corporation Operational Excellence Projects = ROI Mfg Integration & Intelligence Production efficiency improvement -- 25% Cycle time improvement -- 13 to 20% Increase in asset utilization -- 10% Annual payback potential -- 10x Plus… • Eliminate discrepancy between manual data and machine data • Perform preventive maintenance based on machine “actuals” vs. “best guess” • Achieve visibility for lean and six-sigma programs • Progressively eliminate on-hold and other production issues • Gain competitive edge by sharing quality information with customers Source: AMR Research, 2003 Oracle Proprietary. Copyright 2006, Oracle Corporation Production Capacity Loss Analysis - OEE Identify Improvement Opportunities Overall Equipment Effectiveness Summary For Analysis of Production Loss Types - VP of Operations - Plant Manager - Production Supervisor Details of Causes for Each Loss Type Oracle Proprietary. Copyright 2006, Oracle Corporation Oracle Manufacturing Operations Center • Consistent mfg information for all users • Convert equipment data into useful business info • Ensure rapid response to manufacturing issues Contextualize Plant Floor Data and Synchronize with ERP • Deliver performance metrics & trends by role • Easily build dashboards to your unique needs • Identify performance improvement opportunities Provide Real-Time Intelligence for Plant Operations • Leverage existing plant IT infrastructure • Enable gradual upgrade of plant systems • Simplify IT support for your core mfg strategy Leverage Next Generation Manufacturing Operations Architecture The Foundation for Continuous Improvement in Manufacturing Operations Oracle Proprietary. Copyright 2006, Oracle Corporation What is Next-Generation Manufacturing Operations Architecture? Next-Generation Architecture ERP Abstraction Layer Mfg Ops Center Distributed Plant Systems Automation & Control • Built on a common abstraction layer of production / equipment data • Leverage existing investments in plant IT infrastructure – no rip & replace • Allows for gradual upgrade of plant systems “It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice.” -- Alison Smith, February 2008 Oracle Proprietary. Copyright 2006, Oracle Corporation Oracle BI Role-Based Dashboards and KPIs Deliver Performance Measures by Responsibility • Pre-built role-specific dashboards, reports, and alerts • Graphical views - Trend charts - Red-yellow-green - Graphs indicators - Tables • Embedded best-practice calculations and KPIs • Analytic workflows to drive actions • Drill-downs into details for root-cause analysis • Leverages OBIEE+ • Configurable and customizable Oracle Proprietary. Copyright 2006, Oracle Corporation Key Take-Aways 1. Customers are willing to invest in projects with immediate and measurable ROI 2. Process Improvement, Manufacturing Operations Applications and SOA projects remain top priorities for manufacturing companies 3. Oracle AIA and SOA can deliver rapid business process improvements and reduce IT costs 4. Targeted Business Intelligence projects like Manufacturing Operations Center deliver large ROI Oracle Proprietary. Copyright 2006, Oracle Corporation <Insert Picture Here> Manufacturing Customer Examples Oracle Confidential - Highly Restricted Oracle Proprietary. Copyright 2006, Oracle Corporation Ingersoll Rand uses BIEE for 360O View of Business and Realizes Improved Sales Cycle, and Reduced Order Mgmt Costs COMPANY OVERVIEW • Ingersoll Rand is a leading diversified industrial company providing products, services and integrated solutions to industries ranging from transportation and manufacturing to food retailing, construction, and agriculture. • Industry: Industrial Goods, Diversified Machinery • Employees: 40,000 • Revenue: US$11.23 Billion CHALLENGES/OPPORTUNITIES • Inability to have a single view of sector’s performance across 38 domestic and international regions, 3 channels, multiple business units, and 137 product categories • Difficult to react to market - inability to identify root cause and drive corrective actions • Disparate systems from consolidation, mergers, and acquisitions: Oracle ERP, Siebel CRM, Mfg/Pro, AS/400, mainframe … CUSTOMER PERSPECTIVE • “…the YTD revenue summary reports including the drill down capabilities. If you haven't seen it I believe you will be suitably impressed (I was). If the other sectors see it, they will want it.....badly!” • Barry Libenson • CIO RESULTS • Established the “single version of truth” to • SOLUTIONS • Deployed Oracle BI Order Management Analytics to over 60 users across HQ, Sales, Marketing, and Order Management in 17 weeks (additional 250 user rollout in progress) • Currently deploying Oracle BI Sales Analytics in 15 weeks • Incorporated data from multiple sources: E-Business Suite, Siebel CRM, Avenue, and legacy applications (Mfg/Pro, Copes, etc.) • • • • enable monitoring of entire business process from opportunity, quotation & forecast, order, booking, backlog, to invoicing. Improved the sales cycles with the ability to perform backlog analysis. Decreased the order management costs and increase on-time delivery and customer satisfaction. Rolled out consistent key performance indictors across multiple business units. Empowered users with timely information tailored to their specific role Proactively detected business deviations and alerted affected manager Pending customer approval – Internal UseOracle Only Proprietary. Copyright 2006, Oracle Corporation Jan-08 Automotive OEM Yahoo Owner Center Initiative Yahoo! Online Owner Hub GSWB Service BP Vehicle Recall Data Service BP Onstar Vehicle Details Service Proxy IR Service Proxy Dealer Details Service Proxy GMCard Service Proxy GSWB Service Proxy SOAP/HTTP SOAP/HTTP VIMS VIN Lookup Global Locator Dealer Details GMCard GMCard Points Global Sales Workbench Vehicle Model Year Trim Details Batch Interface Everest to Yahoo! Oracle Proprietary. Copyright 2006, Oracle Corporation Oracle Application Container (OC4J) Secure FTP Server (Tumbleweed Secure Transport) SFTP (Pull) EAI Layer (SeeBeyond SRE) Application Layer Vehicle Recall Information Service GMRIS Vehicle Recall Data Feed SFTP (Pull) over ANX Lead Broker IR Service (thru Cisco AXG) SFTP (Push) over ANX Onstar Vehicle Details Batch Transfer Components to Everest Everest Batch data feeds to/from Yahoo! Yahoo! OOH Batch Integration Components GMCard Service BP EAI Layer (Sun Java CAPS) Dealer Details Service BP Batch Interface Yahoo! to Everest JDBC VIN Lookup Service BP Batch Interface GMRIS to GIF ODS Outgoing Files Zone SFTP (Push) Web Services Management (Oracle WSM) IR Service BP SOAP/HTTP Business Process Manager (Oracle BPM) Onstar Vehicle Details Service BP XML/HTTP Enterprise Service Bus (Oracle ESB) SOAP/ HTTP (GMRIS Tables) GIF OOH Yahoo! Web Service (Business Process) - Composition of finer services SOAP/HTTP Application Layer (Service Providers) GIF ODS Incoming Files Zone SFTP (Pull) OWSM Agent - SAML Token Verification, Content Based Routing (if required) SOAP/HTTP Service Monitoring and SLA Reporting (Oracle SOA Management Pack) GIF OOH Service Descriptor - SAML Token Generation, Schema Conformance Check SOAP(RPC)/HTTP GM Intranet SOA Framework Components for Yahoo! OOH Default Route SOAP/ HTTP XML Firewall (Cisco Ace XML Gateway) SOAP/ HTTPS GIF OOH Handler - SSL Termination, Authentication (Fixed Password Values), Protection against malicious content, Denial-ofService Protection, Payload Size Checks SFTP (Pull) SFTP (Push) SOAP/HTTPS GM Internet Firewalls DMZ Registering Owner’s vehicle Account details Online vehicle diagnostics Data (OVD) Card points & sale Promotion/Offers XM Radio account details New Offers Renewal Alerts Recall information Internet Online Owners Hub(s) provides the following information to the Vehicle Owners via the Yahoo portal. Cisco Systems Streamline Campaign-to-Cash Business Process Front-Office Back-Office Self-Service Portal BPEL Customer CRM “Order to Cash” Process Fulfillment Rep Human Intervention Knowledge Worker Automation Purchasing Director Oracle Proprietary. Copyright 2006, Oracle Corporation Global Vehicle Tracking & Logistics Dealer Portal Portal TAM - GLDAP Web Server Static content TX Monitoring GVCT Web App Presentation Layer Call-Off process Transfer process Infrastructure Services Get Search Criteria service Request Transfer Service Confirm Transfer Service Check Credit service Get Vehicle/order Detail Service Hide/Make available service Call-Off Service Check Allocation service Redistribute Service Inv.Mgt. Report. Service Notify User Service Check Dlr. Active service Re-Consign service GLTO service Service Layer Service integration Layer (ESB) C001 GIF GLTO Direct Sales SIVD Data / Business Component Layer Oracle Proprietary. Copyright 2006, Oracle Corporation Rules Repository Brazilian Data Store E-Drive Order Bank ODS MDM Load Balancing Data access Layer Common Services Search services Rules Service Layer Business Process Management Layer (Orchestration and Workflow) Rules Management Locate Process G James goes live on MOC First customer to go-live on MOC, on November 21, 2008 • Australia's leading integrated glass and aluminum organization • Implementing EBS R12, first phase Financials go-live in 2008 • Implementing MOC, without waiting for roll-out to complete • Plans to deploy entire suite of Oracle EBS • Other products include Configurator, Flow Mfg, Financials, Procurement, Order Mgmt, Mobile Supply Chain Applications…. • The project for their Brisbane Extrusion Plant –Tool room Department was completed in 13 weeks, by Oracle Consulting • The deployment contains all 32 equipment from the Tool Room department that manufactures dies for Aluminum extrusion. • On the go-live day, the MOC instance contained all transaction activity from August onwards. The MOC set up included 2,000+ items and 80,000 transactions. Oracle Proprietary. Copyright 2006, Oracle Corporation GE Healthcare Implements SOA Foundation and Trade Collaborator with Oracle SOA Suite COMPANY OVERVIEW RESULTS • Global provider of transformational medical technologies and services • Long term benefits of the SOA Foundation • Industry: Healthcare • Employees: 42,500+ • Revenue: USD$17Bn CHALLENGES/OPPORTUNITIES • The challenge of the SOA Foundation project was to implement a set of processes, tools and best practice for the governance, management and orchestration of web services • The Trade Collaborator Service Enablement project is about providing a consistent, reusable set of services for our disparate ERP systems (E-Business Suite, PeopleSoft, SAP, JDE…) to carry out trade compliance checking. are based on the value of having strong governance and management of our SOA from the outset. • Provides ability to change dynamic business rules without impacting core functionality • Trade Collaborator service enablement will provide GE Healthcare with a single reusable set of services to facilitate trade compliance checking across P&L’s. • Trade Collaborator has an indirect benefit of $672K due to a reduction in interface development and infrastructure costs for additional sites and/or businesses. SOLUTION • SOA Foundation consists of 3 major components (OWSM, ESB and BPM) run in a clustered configuration. • The Trade Collaborator service enablement project leverages the routing and adapting features of the ESB layer to adapt to Oracle E-Business Suite. Pending customer approval – Internal UseOracle Only Proprietary. Copyright 2006, Oracle Corporation Jan-08 Oracle Proprietary. Copyright 2006, Oracle Corporation