UPGRADE TO SAP ERP AND MOVE INTO THE WORLD OF ENTERPRISE SOA - White paper Van applicatiecompl naar een businessgerichte architectuur
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UPGRADE TO SAP ERP AND MOVE INTO THE WORLD OF ENTERPRISE SOA White paper Van applicatiecompl naar een businessgerichte architectuur white paper ESOA-1.indd 1 27-04-2007 10:54:14
CONTENTS MAXIMIZE MANUFACTURING TOGETHER - MMT 3 SAP ERP IS NO LONGER “JUST ERP” - IT FORMS THE BASIS OF AN ENTERPRISE SOA COMPOSITION PLATFORM 4 3.1 Enterprise SOA - What’s all the fuss about? 4 3.2 Enterprise SOA delivers 4 3.3 What are the Business Drivers and Benefits of eSOA 5 3.4 eSOA within an Enterprise Architecture Framework 7 3.5 Why you should upgrade 7 3.6 SAP ERP - the go to release 8 3.7 Getting started 9 ATOS ORIGIN AND SAP 10 Written by: Gary Dunn Global Alliance Director SAP Andy Brown Principal Consultant Enterprise SOA UK Hans Diepstraten Principal Consultant Enterprise SOA NL 2 white paper ESOA-1.indd 2 27-04-2007 10:54:14
MAXIMIZE MANUFACTURING TOGETHER - MMT Manufacturing isn’t getting easier. Enterprises are under In addition, Atos Origin and HP have also joined forces to constant pressure to deliver innovative products, respond offer manufacturing companies SAP-based IT solutions to customer demands more quickly, and improve efficien- which were launched for the first time at SAPPHIRE ’06 cies. Furthermore, the challenges of globalization, in Paris. increasing regulatory demands, mergers and acquisitions, complex supply chains and operational costs are ever MMT - ‘Maximize Manufacturing Together’ - present. MMT is designed to help manufacturing companies consolidate their infrastructure and align software while In response to this, Atos Origin has aligned with SAP’s implementing world class pre-configured SAP IBU’s for the Process and Discrete Industries to jointly solutions in order to streamline the IT landscape and offer the Maximize Manufacturing Together (MMT) reduce its cost. approach. MMT empowers enterprises with information, dependability, and industry-specific functionality through a The MMT approach leverages and improves operational single set of solutions enabling them to innovate, adapt, application landscape infrastructures and is developed and succeed in today’s market. together with you for your business. It provides recog- nized thought leadership around a number of key areas that support the following strategic priorities: • Innovation • Reducing TCO • Optimizing Operation and Service Delivery • Developing an innovative Integration Model and Common Process Definition • Standardizing an innovative platform • Maximizing the value of Innovation / New solutions Based on Atos Origin’s strong global manufacturing heritage and customer base, the MMT approach is aligned with SAP’s Industry Business Units. It targets manufacturing companies in the key industries of Auto- motive, Chemical, High Tech and Oil & Gas. 3 white paper ESOA-1.indd 3 27-04-2007 10:54:15
SAP ERP IS NO LONGER “JUST ERP” - IT FORMS THE BASIS OF AN ENTERPRISE SOA COMPOSITION PLATFORM Based on the NetWeaver platform, all SAP ERP’s functional enhancement packages will be enterprise service-enabled and, just as importantly, will have the ever increasing industry specific composite applications being developed by SAP xApps Certified partners contained within. In other words these will replace “old processes”. When the eSOA enhancement packages are installed, all “old” enhancements in those areas become obsolete and the SAP NetWeaver Enterprise SOA environment, including life cycle management, is activated. The first SAP ERP eSOA Enhancement package has recently become available and includes hundreds of enterprise services that enable functional enhancements for human capital management and financials applications, as well as specific industry enhancements for the retail and manufacturing industries. For the manufacturing sector, the package contains innovations for adaptive manufacturing. Specifically, the integration of manufacturing execution systems (MES), manufacturing work instructions, and quality management into the ERP system, providing real-time visibility into production processes across the globe. 3.1 ENTERPRISE SOA – WHAT’S ALL THE FUSS ABOUT? The Enterprise Service Orientated Architecture (SOA) from SAP provides an approach for implementing service-based, enterprise-wide business solutions that offer the increased levels of adaptability, flexibility and openness required to reduce TCO and drive innovation. This approach combines SAP’s experience in enterprise applications with the flexibility of enterprise services and other open standards to fulfill business requirements. It is supported by an adoption program and tools that enable an evolu- tionary transition from a varied architecture of SAP solutions, SAP NetWeaver® and non-SAP systems into a homoge- neous, business-driven Service Oriented Architecture landscape. 3.2 ENTERPRISE SOA DELIVERS • An integrated platform for Enterprise Services • A mature Business Process Management tool for process-composition and orchestration: the Business Process Platform • An Enterprise Services Repository from which business services can be called and composed into applications and processes • A simple toolset and product mix with clearly defined roles 4 white paper ESOA-1.indd 4 27-04-2007 10:54:15
N 3.3 WHAT ARE THE BUSINESS DRIVERS AND BENEFITS OF ESOA So what, in the context of the ERP marketplace, is This commoditization process is described by Geoffrey Enterprise SOA? Firstly, Enterprise SOA is not a prod- Moore in his book Living on the Fault Line, where the uct. It is a design principle for software development, notion of ‘core’ and ‘context’ processes are explained. deployment and maintenance, founded on the prin- Moore describes a business reality in which invention, ciples of the service oriented architecture (SOA). innovation, standardization and commoditization are essential ingredients to categorizing business processes Enterprise SOA is founded on four basic principles or as either core or context. pillars. These are: • Service Oriented Architecture – provides the Any process that helps a company differentiate itself technology architecture from its competition in order to grow is a core process • Business context – provides business logic, and those that improve productivity are context pro- integrity and integration cesses. • Enterprise services – provides re-usable application functionality The key point is the cyclical nature of the business • Pragmatic application – use of the services process lifecycle: any process that has successfully where it makes sense set a business apart from the competition (core) will inevitably be copied by the competition and in due But before looking at how you can move your company course become context, forcing an organization to towards Enterprise SOA, it is worth considering the invent or innovate to re-capture that differentiation. business drivers that could prompt your company’s decision to undertake this. If we look at companies that have invested in ERP systems, we can see that these companies now have excellent best-practice business processes at their ���� ������� disposal which they can use as differentiators to gain a ���������������� competitive advantage in their respective industry ���������� ��������������� ���������� sectors. ������������� Inevitably though, the competition has also invested in ������� those same ERP systems, with those same best- practice processes, thus cancelling out the differentia- �������� �������� tors. In essence, what were once key differentiators for ����� a company are now becoming commodities for the industry as a whole. ���������� �������� ������ ������ “The radical of one century is the conservative of the next. The radical invents the views. When he has worn them out the conservative adopts them.” Mark Twain, (1835 - 1910) ��������� ��������������� 5 white paper ESOA-1.indd 5 27-04-2007 10:54:15
It is clear that successful businesses are maintaining a which is intended to support and enable the cyclical set of core processes which are clear differentiators, nature of the core/context model through the use of an while standardizing as many processes as possible in open, standardized architecture. order to reduce cost and improve productivity. With Enterprise SOA, it is possible to accurately relate One of the key enablers of differentiation in a competi- IT landscapes to business models and to quickly re- tive market is innovation, and from Moore’s model we configure such landscapes to match changing business can see that there are two distinct paths to innovation needs. Some may say that we have seen all this before within a business. Firstly, the migration of an inventive with the Service Oriented Architecture, as it offered the solution through to a mission critical activity within the potential to deliver the IT flexibility that companies were ‘core’ family, and secondly, the composition of innova- looking for and was also based on a distributed soft- tive solutions from a set of standardized processes in ware model. the ‘context’ family. Enterprise SOA uses SOA as its foundation, but adds For businesses to remain competitive, they must business context to the processes by ensuring that the establish differentiation quickly, effectively and cheaply – enterprise services themselves are based on business all of which is difficult to achieve with the architectures processes. For example, an Enterprise SOA service for seen in most companies today. ‘cancel order’ should not only delete the order from the required system, but also deal with all other conse- The method of process migration can only be effectively quences (systems) throughout the enterprise of that achieved if all the processes are made available on the order being cancelled. Moving to an Enterprise SOA same deployment platform. Services Oriented Architec- landscape is a good option for organizations who want ture principles can be used to design this platform, to maintain their competitive advantage. �������������� ����������� �������������� �������������� �������������� �������������� ���������������� ���������������� ������������������� ����������������������� ��������������������� ��������������������������������������������������� ������� ������������� ������������������ ������������������������ ������������������ ������������� �������������������� ���������������� ����������������������� ������� �������������� ������������������ ���������������� ��������������� ������������������������ ������������������������������������ ��������������������������������� ������������������������ ��������������������������� ������������������������������� ������������������������ ������� �������������� �������������������������� ��������������������� ������������������������������� ������������������������������ 6 white paper ESOA-1.indd 6 27-04-2007 10:54:16
3.4 ESOA WITHIN AN ENTERPRISE ARCHITECTURE FRAME- 3.5 WHY YOU SHOULD UPGRADE WORK Your SAP system represents a significant investment for As we have seen, Enterprise SOA leads to a completely your company, and the upgrade strategy that you different SAP product portfolio and architecture and determine will undoubtedly have a significant effect on brings substantial business benefits. However to make the future of your IT infrastructure and your business the transition to eSOA the transition needs to be performance. Therefore any upgrade strategy has to be managed from an Enterprise Architecture approach. based on a thorough and complete understanding of your company’s specific business process innovation In Enterprise Architecture five dimensions are developed requirements. concurrently - Business Case, Competences, Gover- nance, Process and Content, each containing different In the past SAP upgrades have traditionally consisted of views - Interaction, Process, Information, Application large stepping stones that encouraged companies to and Technology. The transition to Enterprise SOA is upgrade so as to enjoy the benefits of extensive new executed at strategic and tactical levels in a planned EA functionality and support. However, with the arrival of development process and is implemented through SAP ERP, all this has changed and now you have the stable intermediate plateaus. The focus of the analysis flexibility and transparency required in order to continu- and design for eSOA is based on autonomous IT ously adapt to business innovation. domains. Furthermore, Enterprise SOA is intrinsically not SAP centric. To help enterprises move seamlessly to this model, Atos Origin has taken its industry leading Atos Enter- prise ArchitectureTM approach and combined it with the SAP eSOA Adoption Program to create the Atos Origin eSOA Master Plan - a unique and powerful toolset which truly encompasses the complete lifecycle of a business transformation. Using the eSOA Master Plan, Atos Origin can guide manufacturing companies through this step-by-step process towards a highly flexible, tailored eSOA service portfolio. ��� ����� ����� ���������������������������� ��� ����� ��� ����� ������������ ����� �� ��������� ���������� �������� ��������������������� ���������� ��� ����� ��������������������������� ����� ������� ������������ ������������������� �������� 7 white paper ESOA-1.indd 7 27-04-2007 10:54:16
3.6 SAP ERP – THE GO TO RELEASE The SAP ERP solution enables companies to take an evolutionary approach for the next technology shift toward eSOA, thus protecting and leveraging the investments customers have already made in SAP R/3 software. (SAP R/3 function- ality is now found in SAP ERP.) Embracing many of the technologies that comprise the SAP roadmap for Enterprise Services Oriented Architecture (eSOA), SAP ERP helps organizations gain increased productivity through new user interfaces and roles, integrated analytics in all business processes, and the flexibility to create differentiated business processes to satisfy their customers. For the first time the core SAP platform will remain stable and continue unchanged until at least 2010. Upgrades will now consist of focused functional, industry specific enhancement packages, 2 per year, that can either be turned on or off with a new switch framework. Quite simply, this means that once on the SAP ERP platform you are protected from the complexity and cost of large system upgrades and your business is free to innovate, knowing that these innovations will not become obsolete in the future. With SAP releasing these smaller functional enhancement packages, it also becomes far easier to build an upgrade business case within your organization. By effectively being able to select those future enhancements that align with your business needs, any upgrade will become far less costly in terms of both money and resources. There are the four key areas of change with SAP ERP: • User Productivity User productivity is enhanced by pushing process execution to the end user wherever possible and providing them with self-service scenarios and embedded real-time analytics at their fingertips. Routine tasks are automat- ed, and more complex processes are supported by specific (composite) applications and dashboards available to smaller groups of expert users. • Analytics In SAP ERP analytics are achieved by integrating SAP BI with Visual Composer and the Composition Environment. This brings the value of business intelligence to wider groups of users across the enterprise. • Deployment SAP ERP enables the consolidation of BI, Portal, knowledge management etc into one consolidated, not distributed, system landscape. • Enterprise Services enablement The Enterprise Service Repository sits within SAP ERP, giving you the flexibility to move forward at your own pace and enhance the value of your ERP systems in incremental stages. The ESR will also be able to include enterprise services developed by independent software vendors (ISVs) specifically for SAP ERP, as well as enterprise services from 3rd parties. This will bring major improvements in flexibility and agility. 8 white paper ESOA-1.indd 8 27-04-2007 10:54:16
3.7 GETTING STARTED As a strategic SAP partner, Atos Origin has built a tailored eSOA services portfolio based on individual customer needs. Atos Origin offers services which include eSOA opportunity workshops, a Business Case or Total Cost of Ownership (TCO) discovery sessions. Importantly, we also build a tailored eSOA roadmap specifically for you, imple- ment the offering and carry out the “go live”. Finally, we enable you to fully harness the value of eSOA through continu- ous improvements delivered during managed operations. In order to achieve true customer benefits, our specialists are fully equipped to support you in moving from an IT to a process/innovation architecture. Furthermore, Atos Origin’s consultants are continuously updated in the very latest expertise and maintain a thorough and professional understanding of the business benefits delivered through such an architecture. Through the combined services of Atos Origin and the products of SAP, you can realize fast and effective business per- formance improvements and cost savings. 9 white paper ESOA-1.indd 9 27-04-2007 10:54:16
ATOS ORIGIN AND SAP Atos Origin is an official partner of SAP with over 20 years experience working with SAP applications. It is an SAP Global Services partner, an SAP Global Hosting Partner, a member of the SAP NetWeaver® Partnership Initiative and a leading member of the Enterprise SOA adoption program. In 2006, Atos Origin won the SAP Pinnacle award in the hosting SAP applications category and was also a finalist in the 2006 Netweaver Showcase category. In addition, Atos Origin is a finalist in the 2007 SAP Pinnacle awards in the Enterprise SOA - Migration Excellence and Hosting categories. Atos Origin has a long-term relationship with SAP and in-depth knowledge of the SAP portfolio and SAP- certified solutions enabling it to provide a service tailored to its customers, with advice and implementation by a dedicated team of experts. Atos Origin has established a wealth of knowledge and skills in SAP and the underlying IT infrastructure through implementing and managing complex, integrated global solutions for some of the largest corporations in the world. It has over 4,400 SAP consultants around the globe and operates SAP Certified Datacenters in all geographical regions ensuring the continuous availability of business critical applications and systems. With Atos Origin’s Maximize Manufacturing Together initiative, this expertise is specifically focused on the Chemicals, High Tech, Oil & Gas and Automotive industries, in order that Manufacturing companies can realize the full benefits of eSOA awareness and adoption. 10 white paper ESOA-1.indd 10 27-04-2007 10:54:17
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Atos Origin Corporate Village Da Vincilaan 5 B-1930 Zaventem Belgium Tel: +32 (0) 2712 3699 email: more-info@atosorigin.com www.atosorigin.com © Global Marketing 04/07 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish symbol itself are registered trademarks of Atos Origin SA. April 2007 white paper ESOA-1.indd 12 27-04-2007 10:54:17
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