Walking with Dinosaurs

Innovating above Packaged Applications (ERP, CRM, HRMS)

Richard J. Merlino
Business Process & Technology Integration Manager,
UTC/Pratt & Whitney

Andrew Hawthorn
Sr. Manager, AquaLogic BPM, BEA Systems
Fact: Dinosaurs are among us

 ERP and other apps are:

• Strategic
• Essential to core processes
• Complicated
• Inflexible
• Unavoidable

 Companies must find ways to bridge people,

processes, and information to:
• Operate end-to-end business processes spanning multiple
organizations, geographies and systems
• Collaborate more effectively internally and externally
• React quickly and cost-effectively to change
 Industry Analysts Agree

“Laggards will find that one morning their

competitors who use the exact same ERP
software are suddenly zooming ahead,
shortening lead times, introducing new
products faster, and reacting faster to changing
market conditions.
IT groups that hope to respond to the business
faster need to start making decisions, setting a
strategy, and building the skills to apply SOA
and BPM as a competitive weapon.”

Source: AMR Research Report – SOA and BPM for

Enterprise Applications: A Dose of Reality, May 2007
 Innovation and Continuous
Improvements at Lower TCO
IT Budget  Demand exceeds supply
Target
$27
 Must-do projects swallow
Business Value Delivered by IT

quadrant Ne substantial proportion

Composite
Custom Apps Service-
Apps w
 Infrastructure built piecemeal
based
Apps $73
Maintai  Heterogeneous technologies
Packaged Apps Differentiated
n
Lowered TCO,
but less capabilities built  Legacy, bespoke and
differentiated on standardized
capabilities platforms & customized applications
services (lower
TCO)

Reduction in TCO
Source: Accenture 2007 Source: Boston Consulting Group

Business-IT Alignment
Continuous improvement
implementations

Source: BEA Customer Perspective

 What is SAP Recommending
to its R/3 Install Base?
Create Sales Analyze Request Place Confirm Receive
Order Stock Quotation PO Order Goods
gr Ooi r a nec S

Sales Person Procurement Procurement Procurement Procurement Warehouse

Manager Manager Manager Manager Manager
sel o R

ti n U

• Enter customer • Analysis of inventory • Delivery calls against

sales order status contracts
• Revenue impact of • Order handling
backlog • Delivery

I B
I B

I B
I B
• Initiate corrective

P AS

P AS
P AS

P AS
- no N
P AS
P AS

P AS
action
SD MM, WM MM MM, FI, CO MM, PP, SD MM, WM, FI, CO
oruPB
i rcicl spepDA

Request/Response Request/Response Response

sssseenc is

• Supplier list for • Purchase orders to • PO Confirmation • Goods receipt is

product ID selected vendors displayed to inventory service enabled via
snnoioittpa

• Supplier RFQ to manager interactive form

multiple vendors
esi r pr et n E
seci vr e S

• Portal • Portal • Portal • Portal • Portal • Portal

• B2B integration • Bus. Intelligence • Bus. intelligence • B2B integration • Data services
• Data services • B2B integration

Additional Enabling Infrastructure outside of Core R/3

• B2B integration
sei tili ba pa C
y gol onhce T

Core SAP R/3

Traditional Enterprise Applications Fall Short

My software applications
13 allow me to quickly adapt to
most customer requirements
15
My software applications offer
little or no flexibility to meet
individual customer service
21
requirements

My software applications
force me to put limits on
services I can offer

My software applications
force me to employ some
manual processes to meet
customer requirements
*Source: Aberdeen 51
Survey of 125 enterprises, “Aligning IT to Business Processes: How BPM is
Complementing ERP and Custom Applications”, Aberdeen Group, May 2007.
Application Platforms: Stuck in the 90s

While new technologies have emerged …

… application platforms have not kept up
Web 2.0  Existing platforms are designed for coding
Social Computing
paradigms, not rapid assembly and change

Virtualization  Unable to use new business models, e.g.

pay-per-use, SaaS

Business Process  New technologies are disjoint solutions to

Management
point problems
Service Oriented  Testing and deployment are not integrated
Architecture
 Governance and management are “after the
Real-Time Events fact” bolt-ons

 Real-time, event-driven applications are not

Collaboration supported
A Simplified Platform for Dynamic Business
Applications

Enabling Faster Time to Market Through Convergence & Simplification

Web 2.0 BEA Differentiators:

Integrated Assembly, Testing

Collaboration
Governance, Management

Portal  Social computing and user-composed

composite applications
& Administration

Business Process &

& Deployment
Rules Management
 BPM and SOA assets at the core for
Services & Event change-ready applications
Management
 Unified compose, test & deploy
Virtualization
experience
Fabric
 Virtualization for scale-out and
performance

 Integrated governance, management

Billing via configurable “units of use” and administration
 Per user
 Per transaction  Multi-tenant
 Per resource (e.g. CPU)
 Customer defined
Process Examples Benefiting
from Such Innovations

Product
Operational Customer
& Service
Excellence Intimacy
Leadership

Lean / Six Sigma

Demand Sensing & Innovation Networks
Shaping
Demand – Supply
Matching (S&OP, ATP) Accelerating Product
Personalized Customer Launch
Experience
Real-time Tracking of
Physical Events Product Portfolio
Customer Centric Management
Fulfilment
Shared Services /
Finance / HR Excellence Market Driven, Brand
Proactive Service Excellence
Convergence of Technologies
Creates New Opportunities

Web 2.0 for

Business User
theParticipation
Enterprise

Business and
Process
IT Alignment
Management
Business
Agility
Infrastructure Agility
Service-Oriented Architecture

Events
Responsiveness
Dynamic and
Foundation Reliability
Real-Time
Virtualization
The Vision
The Liquid Enterprise™

Enterprise Social Computing

Knowledge Multi-Channel Customer Web 2.0
Management Commerce Service

Portals Collaboration Information

Management

Business Process Management

Modeling Deployment Business Activity Real-time Process

and Simulation and Execution Management Optimization

Service Service Integration

SOA

Management & Security

Enablement
Infrastructure Business Services Data Services

Governance
Applications Packaged Custom Software-as-a-Service

Core Real Time Extreme

Enterprise Application and
Converged
Virtualization Transaction
Foundation Telecom
Platform Events Processing
 Richard J. Merlino
Business Process & Technology Integration Manager
UTC/Pratt & Whitney

Pratt & Whitney Innovates Over and Above SAP

 United Technologies Corporation (UTC)
Pratt & Whitney (PW) Corporate Overview

Sikorsky
Fire & Security Carrier

Hamilton Commercial Military

Engines Engines
Sundstrand

P&W
Canada
Pratt & Otis
Whitney
Power
Systems P&W
Rocketdyne

UTC 2007 Revenue PW 2007 Revenue

$54.8B $12.1B
Pratt & Whitney (PW)
 Business Landscape
• Highly matrixed industry – up to 50 touches at
major customers
• Growing Competition – existing ones are
getting more aggressive, new entrants
• Challenging Assets – build, manage and
maintain very costly
• Complex Assets – some of most technically
advanced in world
• Extremely Secure – DoD, FAA, customers,
suppliers, internal
• Process Centric – safety requires rigorous
processes
• Collaboration Essential – sharing across entire
value chain
• Personal – build strong relationships, 20 year
LTAs are common
• Customize – businesses choose how to work
• Extensive IT Landscape – hundreds of
systems store/manage data
 IT Landscape
HR Finance IT Eng Ops

Workflow Technologies

Interface Portal Interface

Interface Technologies
Interface Interface

App App
Application App
Integration App
Technologies App

Data Data
Data Sharing Technologies
Data Data Data
 Challenges within IT

• Changes in business process

– IT systems are not able to keep up with the business
• Greater awareness of IT within the business
– Programming a common skill within businesses
– Higher expectations placed on IT to deliver solutions
• Resource Constraints
– Funding for projects is competitive
– Finding appropriate resources to work initiatives can be difficult
 Application-Centric
Transformational IT Process-Centric
IT Eng Ops
Mgmt
Legal

Customer

Process Centric Service Oriented Solution

Sales
Workflow Technologies
Portal Technologies
Application Integration Technologies
HR
Data Sharing Technologies

•Traditional ERP systems will become the

transactional horsepower behind business
•BPM will help to move value streams forward and Purch
eliminate the “White Space”
Finance •Users will interact with ERP systems via secondary
user interfaces
Innovating Over SAP # 1: Vendor Collaboration
AquaLogic Collaboration for Innovation, Agility and Optimization

Opportunities & Challenges

• An efficient method to share SAP data with

vendors with
– Minimal human intervention
– Secure
– Quick set up

Solution Powered by BEA

• BEA AquaLogic Collaboration handles

notification, security, & storage
• .txt file is exported via SAP job to
collaboration web folder
• Minimal development time and training
 Innovating Over SAP # 2: Web CATS System
AquaLogic User Interaction for Innovation, Agility and Optimization

Opportunities & Challenges

• Integration of SAP Time & Attendance

into internal portal
– Minimize use of custom connections
– Improved user interface

Solution Powered by BEA

• BEA AquaLogic User Interaction fully

interacts with SAP via BAPIs
• Single sign on through LDAP integration
 Innovating Over SAP # 3 – Infocenters
AquaLogic User Interaction for Innovation, Agility and Optimization

Management
Dashboards

Becomes reality! CUSTOMER INFO-CENTER

Overdue
Receivables Contacts

Engine
Events Engine
Fleet
Customer
composites
Work Stops

Customer
Help Desk
Sold
Overdue

16
Copyright United Technologies, Pratt & Whitney Proprietary
Innovating Over SAP # 4 – eBusiness Portal
AquaLogic User Interaction for Innovation, Agility and Optimization

Collaboration across
enterprise firewalls
for engine overhaul 1000s of process
steps and approvals for
certification are logged.

Customer has Communities give

complete view sophisticated overview
of real time of all engines in
overhaul status the “aggregate”
 Innovating Over SAP # 5 – Value Stream Integration
AquaLogic BPM for Innovation, Agility and Optimization

• Line Maintenance – Order to

Cash
• Quality Process Clinic
Management
• Help Center Routing
• Overhaul Records Coordination
• Employee Awards
• Engine “events” Management
• Engine Wash
• Shop Processes
 Innovations Driving Substantial Benefits
Across the landscape…
• Customer satisfaction – over 100% increase in
satisfaction score
• Employee satisfaction –
search and information access
• Internal business process savings – ESN project
room collaboration = headcount reduction
• External (Customer/Supplier/Partner)
business process savings – inventory portlet
• Immediate “hard costs” savings –
inherent security & user framework
• Cost avoidance savings – engine performance
monitoring – extensive savings per event
• New revenue opportunities – marketing portlet
 In Summary
• Back end integration is a great way to drive IT
transformation:
– ERP ‘manages the enterprise’
– Portal + Collaboration gives the user a rich flexible interface
– BPM acts as the “messaging bus” for process steps
– SOA platform makes it work efficiently and cost effectively
• Integration level should be determined based on the goal
of the project
– Data aggregation from multiple sources
– Improved user interface
– Removal of an existing application
 Why BEA?

• BEA offers a flexible and complete solution to

drive innovation, agility and optimization with
Portals/Collaboration, BPM and SOA
• BEA’s solution is independent of hardware and
enterprise applications and can seamlessly co-
exists in the current IT landscape
• BEA’s willingness to team where required
Tangible next steps

1.
Discover how
BEA can tran a
sform your
organization
BEA Discovery
Workshop

2.
Benchmark
your Organiza
tion
Take the BEA
S OA &
Assessments BPM
.

3.
Try It.
Download toda
ya
a proof of con nd pilot
cept