ERP Systems, SOA, and IT Architecture.
SAP's Vision & Strategy to achieve flexible and agile
business systems
April, 2007
About SAP
 The world’s leading enterprise application company
The Enterprise SOA value proposition for SAP
 Flexible systems at lowest cost
Enterprise SOA in Action
 Learn & Discover, Compose, Deploy
Summary and Q&A
Performance over last 10 years
A$14.9bn
R&D
A$2.34bn
 SAP AG 2006, 3
2006 Outperformed the market again
 SAP AG 2006, 4
SAP’s product portfolio
 SAP AG 2006, 5
About SAP
 The world’s leading enterprise application company
The Enterprise SOA value proposition for SAP
 Flexible and agile systems, at lowest cost, and highest quality
Enterprise SOA in Action
 Learn & Discover, Compose, Deploy
Enterprise Services Enablement of SAP Business Suite
 Concepts, Methodology, Governance
Summary and Q&A
Geoffrey Moore’s Core/Context Model
CONTEXT
CORE
Focus: Productivity
Focus: Differentiation
INNOVATION
Mission
Critical
Activities
STANDARDIZATION
Enabling
INVENT
Activities
INVENTION
 SAP AG 2006, 7
Courtesy to G. Moore’s “Living on the fault line”
OUT-TASK
SCALE
CONS.
RETIRE
COMMODITIZATION
Geoffrey Moore’s Core/Context Model
Core
Context
Process creates
differentiation that
wins customers
All other
processes
Mission Critical
Process shortfall creates
serious and immediate risk
High Risk
Enabling
All other processes
Reward
Resources get tied up in mission-critical context
 SAP AG 2006, 8
Geoffrey Moore’s Core/Context Model
Core
Context
Process creates
differentiation that
wins customers
All other
processes
Process shortfall creates
serious and immediate risk
Best-of-Breed
Packaged
Solutions
Enabling
Rapid
Prototype
Outsourced
Mission Critical
All other processes
High Risk
Reward
Packaged solutions take care of Context processes
 SAP AG 2006, 9
What is happening in business that drives the software business
•Rapid business model change imposes need for rapid delivery of
new capability
•Hardwired business processes are great for stable “nondifferentiated” business process, but suicide for innovators
•Commoditisation of technology layers leads to low cost entry and
industrialisation
IMPLIES
•Forced redesign to allow rapid innovation of software while
keeping quality and stability of context processes
•Decoupled process model to allow agility
•Agility to move from core to context at the pace of business
•Agility to rapidly remodel processes without restrictions
 SAP AG 2006, 10
Enterprise Services Enable the Agile Enterprise
Build vs. Buy - Adding the Third Option
Build
Buy
Custom Code
Home
Grown
Packaged Application
Home
Grown
CRM
ERP
...
Compose
Buy
Build
Home
Grown
 SAP AG 2006, 11
Home
Grown
CRM
ERP
...
Key Enterprise SOA development initiatives
•Make the entire product base “service enabled”
•Ensure usability by the wider “non-SAP” community
•Deliver beyond SOA to include logical interconnectivity not just
technical or semantic interoperability
•Provide a technology platform and process composition
environment for SAP development, and our customers, but keep it
open for the wider community
•Create logical Enterprise Services packages as working starting
points for composites
•Accelerate adoption through the Software Developer Network
community
•Establish Industry focused Value Networks
 SAP AG 2006, 12
mySAP ERP 2005 Powered by SAP NetWeaver
mySAP ERP 2005 = Stable Core for Continuous Innovation
 Enterprise service-enabled and
open standards-based
 Dramatic user experience
improvements
 300+ industry-specific functional
enhancements
since mySAP ERP 2004
2005 2006
2007
2008
2009
2010
Enhancement Packages
mySAP ERP 2005
Next
Release
SAP NetWeaver
INNOVATE AT YOUR CHOSEN PACE
 SAP AG 2006, 13
 Enterprise SOA reshapes software
delivery and consumption
 mySAP ERP 2005 remains core for
the next 5 years
 Continuous stream of innovation
through enhancement packages
Introducing Enterprise Services Packages
Make the value of Enterprise SOA tangible
“Connecting the dots" between enterprise services
Business Scenarios
& Interface Definitions
Customer
Collaborative Wiki
SAP
Partner
Services
Built-in Governance
 SAP AG 2006, 14
Implemented Services
& Sample Usage
Introducing Enterprise Services Packages
Make the value of Enterprise SOA tangible
Enterprise Services Packages
Each Enterprise Services Package includes
everything customers needs to know to get the
business capability up and running with the
package
 Out of the box service-enablement of mySAP
ERP 2005 based on enterprise services
 The definition of these enterprise services in
the enterprise service repository
 Consuming applications
 Grouped by main business
scenarios
 Deliver high-impact business
capability
 Provide “quick wins” for the
business
 SAP AG 2006, 15

Links to applications

Sample code

Best practices

Composites
 Content and advice provided by SAP, its
partners, and other customers, delivered via
social medial technology (Wiki)

Processes

Enterprise services

Quick deployment
Co-Innovation with partners and customers
ES Packages can be extended and elaborated over time
Enterprise Services Packages
Customer / Partner Groups
 Industry Value
Networks
 SAP Partners
 ASUG/GLP
 Other
Enterprise Services
Definition Groups
 SAP AG 2006, 16

ES Packages are coinnovated with the help of
ES Community

Common platform and
standards

Address industry-specific
challenges
5 Industry Value Networks
Industry Value
Network
 SAP AG 2006, 17
Focus Areas
Chemicals




Intellectual Property Management
Process & Asset Optimization
Price & Performance Management
Compliance Management
Consumer
Products





Supply Chain Planning & Execution
Manufacturing Planning & Execution
Sales & Marketing
Food & Safety Compliance
Industry-specific Food & Bev. Solutions
High Tech




Manufacturing Visibility & Control
Product Compliance
Price Management
Service Parts Management
Retail
Store & Multi-Channel
 Store Operations e.g. POS
 Device Conectivity e.g. Handheld
 Customer Intimacy
 Customer Analytics
Public Sector
Tax & Revenue Management
 Collection Management
 Customs Management
 Rules & Regulations
 Tax Analytics
Delivering
About SAPthe Value of Enterprise SOA
 The
Enhancement
Packages
& application
enterprisecompany
services packages
world’s leading
enterprise
Enterprise
SOA inSOA
Action
The Enterprise
value proposition for SAP
 Learn
& and
Discover,
Compose,atDeploy
Flexible
agile systems,
lowest cost, and highest quality
Enterprise Services Enablement of mySAP Business Suite
Enterprise
SOA in Action
 Concepts, Methodology,
Governance
 Learn & Discover, Compose, Deploy
Summary and Q&A
The NetWeaver Technology Fridge
 SAP AG 2006, 19
Design-time environment
for UI Modeling &
Configuration
 Targets the “Business Expert”
 Significantly reduce development
effort
 Model-to-Code
 Easy adaption
 SAP AG 2006, 22
Content Complexity
Model-to-Code:
Content Development by Business Experts
SAP NetWeaver
Developer Studio
Visual Composer
Portal
Content
Studio
Required Skills
Enterprise Services Workplace
Access to enterprise services
Browse
 Enterprise Services
 Collaborate via SDN
 ES packages
Test-drive
 Consume enterprise
services
 mySAP Business Suite
2005
 Enterprise Service
Repository
Use
 Easy access to implement
required pieces
www.sdn.sap.com  Enterprise SOA  ES Workplace
 SAP AG 2006, 24
Delivering the Value of Enterprise SOA
 Introduction to enterprise services packages
Enterprise SOA in Action – Demo
 Learn & Discover, Compose, Deploy
Enterprise Services Enablement of mySAP Business Suite
 Concepts, Methodology, Governance
Summary
Transforming Organizations
Setup, Roles and Skills – Break the Silos
 From technology driven application development to business driven IT services
 From technology skills based to business knowledge and communication
 From technology partners to innovation partners
Disruptive Innovators
Business Process
Landscape
Composers
Repository Keepers
IT Platform
 SAP AG 2006, 27
Consolidators
Summary
SAP Delivers on enterprise
SOA
 From getting started to
deployment
 Simplified access via SDN/ES
Workplace
 Collaborative, open and
available today
SAP delivers customer value
 Common language between IT
and business in ESR
 Direct consumption of
productized enterprise services
 Innovation without disruption
 SAP AG 2006, 28
Questions ?
SAP NetWeaver Is Open
Driving TCO Reduction Through Industry Standards
W3C
OASIS
JCP
WS-I
Eclipse
.org
mySQL
OMG
…
 SAP AG 2006, 30
SAP NetWeaver™
XML Encr. & Sign., DSIG, SAML …
Orgs
Standards Supported (Selection)
PEOPLE INTEGRATION
Multi channel access
Portal
Collaboration
JAAS, WSRP,
Personal Java
INFORMATION INTEGRATION
Knowledge Mgmt
Business Intelligence
Master Data Mgmt
ICE , WebDav , XML/A,
JMI, XMI, CWM, ODBO
PROCESS INTEGRATION
Integration Broker
Business Process Mgmt
BPEL, CIDX,
RosettaNet, CPPA
APPLICATION PLATFORM
J2EE
HTTP,
ABAP
DB and OS Abstraction
XML, SMTP, J2EE, WSDL,
SOAP, UDDI, XSLT
What makes a Service an Enterprise Service?
Readability
 Compare it to a book
–
–
–
Global data type – the letters available to build meaningful words
Messages and service cut – the sentences have the same grammar
Taxonomies of Process Components, Business Objects, Interfaces
- the chapters in the book have the same structure
Reuse
 The reuse of services makes up the value
of the ESR
 SAP AG 2006, 31
Global Data Types - Building Blocks for Interfaces
1
1 ..*
Global Data
Type (SAP )
Example:
: Price
1 ..*
1
Core Data Type
(CCTS )
Example: Currency
1 ..*
1
Primitive Data
Type (XSD )
“
Example: float, string,
token, binary
Global Data Types are SAP-wide defined data types with business
content. They are defined in accordance to industry standards and
offer customers a way to use one common data structure.
Characteristics:
 Standard (ISO 15000-5 and UN/CEFACT CCTS1)
 Defined in Enterprise Services Repository
 SAP-wide approved with reference to the Governance Process2
 Semantic building blocks for interfaces (reuse)
 SAP AG 2006, 32
Interoperability: Types
What is
the order
status?
Purchase Order
明天运
输。
Service Consumer
Service Provider
Semantical / Logical Interoperability
Same Understanding between Service Consumer and Service
Provider, e.g. Address or Name.
Technical Interoperability
- unified Transport Protocols (e.g. TCP/IP)
- security standards (e.g. Web Services Security)
- formats for structured communication (e.g. XML, SOAP…)
 SAP AG 2006, 33