实时企业和商务流程融合.ppt

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实时企业和商务流程融合 Dion Wiggins Gartner副总裁， 亚太地区研究主管 Louisa Liu Gartner亚太地区 研究分析员 中国北京 2004年4月15日 这就是 “现时经济” (不是 “新经济”) 驱使商务改变的两个关键驱动力 更快的经济发展步伐 浮现 出现 威胁 三年一度 持续更新 战略 窗口 钥匙孔 机会 预测 混乱 需求 需求便利性 缺乏耐心的客户 “被时间折磨" 对速度的需求 107 106 105 104 1,000 100 10 1 秒 贸易分析 文件传输 电话中心需求 贸易结算 组装到订购PC 更新数据仓库 航线运作 跟踪财务状况 供应链更新 10 秒 电话激活 1 月 1 小时 Mail … express … fax … E-mail 3 天 45 秒 6 星期 24 小时 5 天 1 天 30 分 5 秒 8 小时 20 分 30 秒 1 天 5 分 1 天 15 分 3 天 1 小时 商务流程融合的目标是通过融合动态的、 对时间消耗敏感的、端对端的商务流程IT方面 的支持，形成商务能力的转变。 商务流程融合需要模块和集成应用功能性以及IT基础设施为基础，能直接具有流程管理能力，这些将围绕交易、分析和协作性质的各种流程。 什么是商务流程融合？ The Real Time Enterprise competes by using up-to-date information to progressively remove delays in managing and executing its critical business processes. 抽象概念 – 一个努力的目标 The Real Time Enterprise 管理需要加速，而不仅仅是运作 managing and executing 在符合时间需求的情况下，达到尽可能快的速度 up-to-date information 焦点的制定非常重要，核心、区别性和高价值流程必须优先处理。 critical business processes 有价值的客户和市民的认可 competes 一个重复持续性的工作 – 不是一个一次性工作 progressively remove delays 定义: 实时企业 根本目标是流程的改变 向关键商务活动的即时发现和报告能力迈进。 削减端对端响应时间，并以此达到外部环境的要求。 致力于能有效加速你商务战略发展，并给你带来最大化竞争优势的方面。 RTE ‘旋风模式’ 制定焦点方面 1998 2008 2013 2003 实时企业 不连贯的企业 通过IT达成的商务灵活性 消息为导向的中间件 商务活动监视 商务流程管理 门户和应用平台套件 基于部件的应用服务器 集成（Integration Broker） 商务流程融合 Web服务和Web服务网络 转变 复杂事件管理 中间件基础设施在改变企业 下一件大事: 一个商务应用的革命 — 执行发展 2003 2007 2009 2005 应用迷宫 广泛采用面向服务体系结构的应用软件 大量流程创新 早期面向服务体系结构，标准和应用开发工具 面向服务体系结构标准，模式的广泛集成 早期融合应用 (内部和厂商) 将面向服务体系结构完整集成到体系结构当中 类型 A 类型 B 类型 C 广泛采用融合应用软件 采用高峰： 下一代应用，体系结构和流程 流程执行和价值 商务灵活性 商务流程融合应用 应用服务器 端对端流程 企业 供应商 合作伙伴 客户 集成 门户 内容和协作 分析 面向服务体系结构 — Web服务 管理 (例如BPM, BAM, CPM) ERP CRM PLM SCM ext ext 实时管理将带动竞争优势 传统企业： 垂直集成，连接 越大越好 获取电子商务 更好，更快，更廉价的将会胜出 获取流程同步 严格的，经常是基于ERP的体系结构 应用保证组织 客户 供应商 实时企业： 实质集成，Web动力 越灵活越好 多企业协作商务 提供及时，可行性信息的将胜出 内部和外部端对端流程融合 灵活的，“开放的”，面向服务体系结构 应用保证流程 基于Web的 基础设施 企业/ 供应商/ 合作伙伴 客户 行业网络 企业神经系统：实时企业的基础设施 数据中心 (后台) 分枝 经销 客户 供应商 制造 运送 呼叫中心 Web 销售商 金融 预测 企业神经系统 数据中心 （后台） 分枝 经销 客户 供应商 制造 运送 呼叫中心 Web 销售商 金融 预测 理想的灵活系统 严格的现实性 2004: 投资并致力于形成自己的企业体系结构 2008 企业体系结构： 应用 部件 模式 企业 商务关系网格 商务流程 风格 砖块 其他 客户 传统结构 1997 混杂的体系结构: 包裹 “骨干” 内部 模块体系 结构 “模块” 商务优势 2005: 最新的最佳部件和模式套件，使用于ERPII 2007: 商务流程融合；网络同步 2003: 集成SOAP范围 的传统应用 商务优势 商务优势 贸易伙伴信息流程更好的能见度 消除手动期待值管理；更好的贸易伙伴集成 接近实时生态系统，对市场刺激作出反应 市场 活动 市场 活动 市场 活动 客户 分销 企业 供应商 客户 分销 企业 供应商 商务流程融合: 一个关键的面向服务应用目标 SOBA将开发和配置于应用平台套件(APS)或智能企业套件(SES) / APS 合并 什么是面向服务商务应用？(SOBAs)? 1. 商务应用设计用于面向服务体系结构 可以应用于传统商务应用 (ERP, CRM, SCM),垂直行业应用和新类型的应用 3. 可以由厂商，外部服务提供商和最终用户以复合或非复合方式，包括包裹复合应用来提供 4, 对于商务流程融合，协作商务和实时内容集成来说，可以提供比传统应用更好的能力 5. 合并及利用Web服务标准 - SOAP 和 XML 针对合并复合形式，快速脱离复合形式，为选择适合的方式，强调对模块设计 商务应用服务 ERP CRM (例如，客户记录（多系统，复合或适合的服务） 面向服务 的商务应用 四种面向服务的应用类型开始出现 1. SOAP-打包的传统应用 2. 全新的最佳部件 3. 模块企业套件 4. 复合面向服务商务应用，包 扩商务流程融合应用 CRM SRM Mfg. SRM 批发 SCM 零售 SCM ERP BOB SRM ERP BOB 零售 制造业 供应商批发 第一层: 企业 第二层: 拓展的企业 第三层: 供应链 客户 关键属性 1. SOA为中心的设计 2. 模块，开放和复合为基础 3. 对关键标准的使用 (SOAP, BPEL, WS*) 4. 提供，消耗WS 第四层: 价值网络 关键厂商 SAP Oracle Siebel PeopleSoft i2 供应商 (按层排列) 客户 客户 购买者 销售者 零售 制造业 SOBA框架结构，至2009年 CRM CRM CRM CRM CRM 摘录于 “Magic Quadrant: for WS Major Vendor Influence, 3Q03,” 2003年9月 2003年9月更新 Sun Microsystems H-P Novell Microsoft IBM BEA Oracle SAP PeopleSoft CA Fujitsu Siebel 四个商务应用厂商开始明确表示WS的影响力 远景规划完整性 有远见者 新竞争者 挑战者 领导者 执行能力 “这不 可能” 有限的技 术人员资 源 低估了 挑战 少数一些有意义 的成功 最终用户快速的面向服务商务应用的投资回报 对商务流程 融合的优势 有了了解 标准开发 缓慢而稳 定 厂商的所有权行为 标准开发 的拖延 SOA的利益在用户看来还不能被认可 注意力没有放到有优势的数据模式 协作商务 的快速增 长 正面因素将主导 应用集成 继续是首 要的IT挑 战 SOBA开发： 推动力和阻力 第一步 针对第一层客户和供应商分类应用份额 找出限制实时商务流程集成的瓶颈所在，开始考虑基于商务应用配置上的面向服务的商务流程融合。 使用有限的基于SOAP的Web服务来调查内部ERP应用的一致性。 通过有限的SOAP和WSDL集成，转化传统应用为面向服务的商务应用。 第二步 开始开发复合SOBA，保证端对端商务流程融合。 定义和建立与顶层贸易伙伴的Web服务。 促使你的关键应用软件提供商表明他们的计划，让他们的产品能符合SOBA以及他们的转化路线方案。应用提供商如果不能提供这些答案，那么他们的合作实力评估成绩应该在你的列表中出现下滑。 第三步 到这里你应该已经做好准备完整的配置一个企业面向服务的体系结构，强调复合应用开发和完整的应用交互工作能力。 把现有的商务应用转化为面向服务的商务应用形式。 计划和拨款，对你大多数的体系工程设计者，计划人员和IT管理人员进行培训，让他们完全理解和注意SODA，SOBA和SOA的原理。 面向服务商务应用建议 结论 面向服务的商务应用，也就是SOBA，代表着SOA进入主流并可以提供实实在在的利益 虽然面向服务的商务应用可以从已经建立使用的应用中转化，但是最能带来利益的依然会是完全重新设计的应用 一个关键的面向服务商务应用的价值在于这将是保证端对端商务流程融合能够成为现实的必要一环。 厂商正在开始提供面向服务的商务应用产品；这种趋势直到2008年都将继续。 商务流程融合将提供一个战略竞争优势。到2008年，商务流程融合将成为普通的东西。但是对于那些没有实施商务流程融合的企业而言，他们将处于一个战略劣势。 问题和回答? Dion Wiggins Gartner副总裁， 亚太地区研究主管 Louisa Liu Gartner亚太地区 研究分析员 实时企业和商务流程融合 If the majority of economists are right, many of the economies of the developed world will return to healthier economic growth levels by 2004. As they do, enterprises will move beyond short term cost control to consider how to start investing again for future competitive advantage. But business is different in the post-Internet economy. We are not in a “new economy;” rather it is a “now economy.” Speed will be the dominant issue. Change itself is now continuous — there are no “quiet settled periods.” Strategy, that used to be an exercise every three years, becomes almost a rolling process. Windows of opportunity, to attack new markets, introduce products, select M&A options, used to be measured in months. Now it's just weeks or even days. Demand, that used to seem predictable — becomes chaotic. In part, these are effects of the faster, freer, cheaper flow of information . And along with the faster pace of economic change, is the condition of the moderately wealthy consumers of the developed world who lead increasingly busy, time-sliced working and leisure lives. Consumers, the driving force at the end of every value chain, become more demanding and more impatient. They are the “time tortured,.” and they will pay for speed and convenience (., 78 percent of . consumers with incomes > £45K rate convenience above price in their grocery-buying decisions — GartnerG2 research 2002). Action Item: In 2003 enterprise leaders must consider how they will deal with the twin challenges of the “now economy”: faster economic pace and the time-tortured consumer. Strategic Planning Assumption: The velocity of business processes and the related need to decrease information “float” will continue to accelerate through 2006 ( probability). We have all heard the adage that “time is money.” The economic value of a given slice of time continues to rise. A month this year is worth more than a month 10 years ago, or even a month last year. Elapsed time is a universally agreed-on and widely applicable metric (more so than financial cost in many internal business accounting situations). In an increasingly globalized and virtualized business environment, elapsed time is a scarce commodity that can't be digitally replicated or suddenly reduced in value. It is a hard anchor point for change management strategies. Time can be easily, frequently and inexpensively measured and recorded. The velocity of business will continue to increase in 2003 and both failure to act and an act of failure will cost more than ever. The increasing velocity of business change magnifies successes and failures. Why is change accelerating? It is because we are more interconnected and interdependent than ever before. We are interconnected because of technology. The pace of innovation is much faster as well. As the velocity of business increases, so must the process time of all core elements of business, driving enterprises towards become a RTE and requiring business improvement involving substantial changes to business processes using modern IT and telecommunications. This time-based transformation will focus on a continuous reduction of the elapsed time taken in major business processes. Absolute real-time performance — even in information-handling tasks — may be in the future in many cases. However, progress toward that goal will more often than not yield benefits as a by-product. This will be experienced in cost reductions and customer service improvements that previously have eluded enterprise IT and business strategists. The RTE evolves from and builds on a number of important business technology concepts, such as the zero-latency enterprise and business activity monitoring. The relationship between enterprise CRM programs and emerging RTE initiatives is not yet clear; however we believe that these will be complementary in most cases, and synergistic in many cases. The RTE is not a technology, but many technologies (old and new) will be valuable to it. Nor is RTE a stand-alone business strategy. It can be viewed as part of a strategy or an enabler, but "being faster" is not an end in its own right. However, the ability of a management team to strive for continuous improvements to cycle times is a valuable capability that will be prized, as it is in leading-edge proponents of RTE techniques, such as Dell and Cisco. Key Issue: What is Business Process Fusion? Business Process Fusion addresses creation and support of full “end-to-end” processes, whether within or between enterprises. But this is more than just linking transaction flows — it also encompasses the management processes which oversee and direct the operational activities. Addressing the full range of business processes from strategic to operational therefore requires integration of systems supporting all the styles of process found within the enterprise, not just the transactional systems typical of operational processes. Definition The RTE is not entirely new. For example, manufacturing has used related ideas, such as just-in-time ordering and lean inventory, for the past 20 years. Because of the Internet, however, the RTE is evolving to become a broader concept. Many IT vendors are increasing their RTE marketing and promotion campaigns. Enterprises such as PeopleSoft, Asera, Tibco Software, Hewlett-Packard and EMC use the term "RTE" in a variety of contexts. Others, such as Microsoft, IBM, Cisco Systems and Oracle, describe similar real-time ideas. Collectively, these vendors are broadening the RTE debate. Gartner believes that in 2003, the timing and relevance of these messages will strike a chord among business and IT strategists who are looking for a new change lever as IT and the economy slowly emerge from the economic downturn. The coinciding negative effects of the IT recession and the global economic downturn have taken their toll on embattled enterprise IT strategists. Managers have cut costs dramatically in response to the perceived waste generated during the IT "boom" times. Sensible IT cost control now has been achieved, and a re-orientation of portfolios toward basic, but relatively superficial, business cost reductions has taken place. However, most core processes — and often core systems — in most major enterprises remain substantially unchanged. IT and business strategists are re-examining the opportunities for fundamental business improvement through the exploitation of technology. They intend to move beyond putting "e-icing" on an old cake. Because of some of the transparency effects of the Internet, many executives are more eager to cooperate to achieve deeper change. The maturing technology of the post-Internet era now makes it economically viable to migrate many business processes to real-time or near-real-time operation. Regardless of whether specific business processes can or should be operated in absolute real time, the act of exploring the possibility will create efficiencies. This will happen as enterprises compete to get as close as possible to optimally balanced levels of lag in key business cycles. The RTE is still at the preliminary stage of evolution, but its outline is becoming clearer. It will become an important IT investment area by year-end 2003. RTE concepts begin to be understood across Asia in 2003, leading to a heightened interest in enterprise architecture, application integration and middleware as ways of reducing the elapsed times of critical business processes. Strategic Planning Assumption: By YE2003, more than 20 percent of Global 2000 enterprise CIOs will cite the real-time enterprise as one of their top-five investment areas ( probability). Through 2003, management process-delay reduction projects will be a higher priority than further reductions in operational process delays in the majority of Global 2000 enterprises ( probability). The RTE is predicated on an event-driven viewpoint — how long does it take to respond to, and ultimately resolve, a significant occurrence? Internet-era technology can be used to reduce the cost of communication and increase speed. It can help to co-ordinate and to measure, to facilitate collaboration and to match resources. However, maximizing the value requires an end-to-end view to which the technology can be applied. In the cyclones model we provide a common framework for identifying the major, end-to-end, event-to-response cycles in a "typical" enterprise. More than half of the RTE cyclones are managerial. Internal management processes have often been left untouched by previous process improvement initiatives. As a result, management decision-making process times now often hinder operational response times, and managers are less productive than they should be. Action Item: CIOs and business/IT strategists should adapt a version of the cyclones model to represent the highest-level, most-critical event to response cycles that impact the strategic performance of their enterprises. Think creatively about what might be necessary to cut today's cycle time in half or even by 90 percent. Focus attention on the management and leadership areas — which may not have been subject by technology improvement in recent years. Do not fall into the trap of trying to make existing operational process go a little faster — that approach will likely yield relatively poor returns. Tactical Guideline: strategists and planners should apply IT to optimise end-to-end process cycle times for long process chains that that span the organisation. Further local and isolated optimisation will deliver diminishing returns. Key Issue: What is RTE and what are its business benefits ? Strategic Planning Assumption: Through 2005, enterprises that fail to embrace application integration as a critical business issue will face serious business risks by 2008 ( probability). It will take the IT industry 15 years to transform its mainstream operations to zero-latency real time. It takes at least five years for an individual enterprise to become competent in building and succeeding with real-time enterprise projects. By 2008, enterprises still disconnected and disorganized will be at a dangerous competitive disadvantage. It will be too late to start the transition then. The time to do so is now. An enterprise is technically enabled for basic real-time business operations when its applications can automatically respond to changes that occur in two or more applications. New government regulations (. PATRIOT Act, Sarbanes-Oxley) and the increasing velocity of business operations create demand for real-time enterprise information processing. Unlike in 1993, middleware technologies are available today to help establish a real-time business infrastructure (integration brokers, service-oriented application servers, business process managers); new standards and technologies are emerging (business activity monitoring, Web services networks, complex event processing). The confluence of new technological opportunities and escalating business imperatives will transform mainstream enterprise IT, and in the process, fundamentally fuse the business and its IT. Action Items: Begin to invest in real-time enterprise middleware infrastructure now or face dangerous challenges by 2008 from more-agile, faster and better-informed competitors. Begin systematic investment in integration infrastructure now. Strategic Imperative: By 2006, enterprises must have adapted their architecture and infrastructure to aggressively begin deploying BPF and C-commerce applications. Those lacking these capabilities will operate at a distinct competitive disadvantage. In 2003, a new generation of application software is emerging. By 2007, most enterprises will have adopted these applications into their business operations. Two features characterize these next-generation applications : 1) an SOA and 2) the fusion of processes that are naturally linked (in other words, enterprises require an end-to-end view and integration across these processes.) The evolution of application software from 2003 to 2007 can be described from two perspectives: technology adoption, and how SOA and fusion principles are used to provision (build or acquire) applications software and business services. User and vendor enterprises must integrate these principles into three aspects of their technical environment: architecture, infrastructure and applications software.. In terms of business use adoption, Type A, B and C enterprises will adopt next-generation applications at a different pace. In 2004, expect most Type A enterprises to move quickly to adapt to the technology, including implementing early service-oriented applications (purchased or in-house developed). Type B enterprises will refocus architecture and rebuild infrastructure in 2004; they will wait for wide availability and stability of new applications and actively begin implementation in 2005 and 2006. Type C enterprises will wait until next-generation approaches are proven and mainstream. By 2006, however, most Type C enterprises will have the architecture and infrastructure to begin implementing these applications. Key Issue: What demands does Business Process Fusion place on IT applications and infrastructure, and how are vendors reacting? One of the more obvious outcomes of Business Process Fusion will be the emergence of a new category of software applications. These applications will have the process orientation and flexibility necessary for fusion. The platform for such applications will combine the infrastructure of application server and integration broker with portal, analytics, content management and collaboration support technology. Service-oriented architecture and integration with existing applications systems will be pre-requisites for these products. Most visible will be the capabilities delivered at the management level, arising from the overview that will be provided on underlying processes. This will appear in facilities such as monitoring and alerting mechanisms, process (re-)configuration and performance assessment. Faced with the integration potential of these applications, enterprises will be challenged to make strategic decisions about how far to consolidate IT purchases with a single vendor as opposed to maintaining vendor independence between application categories and between applications and infrastructure. They will also be challenged to view the (extended) enterprise as a network of interdependent business functions, rather than a collection of independent processes. Strategic Imperative: A new discipline of enterprisewide process management will be needed for broad success in deploying the new applications. Which business and technology trends will drive application software requirements? The real time enterprise (RTE) is a strategy and may never be fully realized; however, the associated objectives and actions (systematically removing delays from time-critical processes) will significantly change enterprise activities. By 2008, real-time processing will be a standard requirement in critical business processes. The RTE demands new processes, better data-capture techniques and changes in managerial culture. Such a change program will, necessarily, affect all application software including packages (enterprise resource planning, supply chain management and customer relationship management), knowledge work support (business intelligence, content management, knowledge management) and in-house developed software. Real-time management will not usually require wholesale replacement of application software that supports critical processes; however, it will require changes in how this software is used and how substantial functions are added and implemented. Enterprises will be required to identify critical requirements for real-time processes and build a base of RTE methodologies and tools to enable them: business process analysis, process design, business activity monitoring, knowledge management and distributed decision making. Definition: The real time enterprise (RTE) competes by using up-to-date information to progressively remove delays in managing and executing its critical business processes. Strategic Planning Assumption: By 2008, more than 75 percent of midsize and large enterprises will have an official policy endorsing systematic application integration, thus replacing earlier directives to seek single-platform homogeneity ( probability). The infrastructure for the real-time enterprise must be infrastructure that works with a real enterprise. Through 2008, improving enterprise agility will remain an enterprise imperative, yet it will remain a difficult and expensive proposition, because it requires the integrated coexistence of distinct and independent platforms and architectures. The real-time enterprise is not a monolithic homogeneous environment. It will not be accomplished by replacing the current heterogeneous and chaotic network of applications with a single set of applications, data models, middleware platforms or library of services. The best examples of real-time enterprise infrastructure are the enterprise nervous system (ENS) networks built to respectfully adopt the key existing enterprise applications. Respect in this case means with minimal intrusion. The realistic approach to the integration of systems is to build an environment where systems of different and independent design can participate with a clear and minimal impact on their independence. All systems must share information and be accessible via the designated protocols and transports of the established ENS. With that limitation, the participating systems remain independent. ENS thus provides the infrastructure that, on one hand, allows integrated views of enterprise information resources and, on the other hand, permits deployment of experimental and nonstandard systems. ENS delivers agility and manageable introspection to the real-time enterprise — key requirements for the modern enterprise IT. Action Item: It takes three to five years for an enterprise to develop competence in building an ENS. Plan for multiyear investments as a prerequisite to successful RTE operations. Key Issue: Where should enterprises invest in 2004 through 2006? Applications are changing their architectures from closed, monolithic and merely Web-aware to “open,” componentized and Web-based. As this overhaul proceeds, users will have to spend substantially more to upgrade to these new architectures. However, users will also need to embrace a new, broader and more-inclusive view of enterprise architecture (and many are already doing this). This new enterprise-architecture view requires users to start from the top-down by: 1) Understanding the requirements of participating in what we call the business relationship grid, or the technological “nervous” system of a community of enterprises. 2) Defining the fundamental enterprise and multienterprise business processes to be executed, and categorizing the styles of those processes. 3) Determining the best reference models or patterns of IT solutions for each style. 4) Defining the building components or “bricks” of technological capability. At each level there can be a series of appropriate needs, principles, processes, guidelines and standards that are necessary to gain architectural consistency and its corresponding benefits. Action Item: Plan to upgrade to new application architectures, but within the context of a greater enterprise-defined architecture that enables agility and value-network collaboration. What are service-oriented business applications? In 2003, the purchasing categories for software applications will start to change with the appearance of a new breed of cross-functional, end-to-end process service-oriented business applications. These business process fusion applications — constructed of individual service-oriented business applications linked end-to-end to support an entire business process — may be constructed through composite application development within the enterprise, or purchased from a third-party vendor or integrator. The scope of business process fusion service-oriented business application deployment may be internal or move across supply chains or value networks. The platform for such applications will combine the infrastructure of application servers and integration brokers with portals, content management and collaboration support technology. Enterprises will be challenged to make strategic decisions as to how far to consolidate IT purchases with a single vendor, as opposed to maintaining vendor independence between application categories and between applications and infrastructure. They will also be challenged to view the (extended) enterprise as a network of interdependent business functions, rather than a collection of independent processes. Beyond the drive for innovation, the emergence of these applications is also driven by a more-specific shift in business demand. Business success is predicated increasingly on flexibility and speed in linking business processes — that is what increases the rate at which enterprises can deliver value to customers. A new style of business application, service-oriented business applications (which are sometimes referred to as SOBA), is emerging to help enterprises make use of service-oriented architectures (SOAs). SOAs' capabilities provide value through cost-effective leveraging of information assets and emphasize the construction of dynamic composite chains of loosely coupled applications to reflect real-time business conditions. Service-oriented business applications have had an impact on closed enterprise environments, and among narrow trade partner groupings. Service-oriented business applications will begin to play a key role in enabling enterprises to integrate best-of-breed components in monolithic supply chain architectures and emerging industry value networks later in this decade. Service-oriented business applications build on SOA — runtime concepts leveraging loose coupling and architectural issues — and leverage service-oriented development of applications (SODA) — development time concepts leveraging reuse and dynamic binding. Building applications on SOA is more than an application development (AD) benefit — it makes changes and wider easier and cheaper, even across organizational boundaries and between enterprises. The development of composite service-oriented business applications, or business process fusion applications, in short time spans, will be a key SOA activity. The incorporation of, and the ability to work with, Web service standards (including SOAP, WSDL, and BPEL) is a key characteristic of service-oriented business applications. Action Item: service-oriented business application’s are not hype, and offer real-time SOA benefits. What are service-oriented business applications? Four distinct types of service-oriented business applications are emerging: 1. SOAP-wrapped legacy applications, limited in terms of SOA functionality, include composite AD and form a first-generation service-oriented business application migration strategy for vendors and end users. End users may also deploy their own SOAP-wrapped legacy applications. 2. New best-of-breed components, with broad horizontal or industry vertical targets in mind, can be used separately to form the basis of suite offerings, or be linked through rapid composite application deployment at the enterprise or third party level to create business process fusion applications. 3. Modular enterprise suites, composed of composite service-oriented business applications, will have the ability to couple with legacy, vertical industry and best-of-breed components to create business process fusion applications. 4. Composite service-oriented business applications, including business process fusion applications, may be developed internally by enterprises through the use of SOA capabilities, or sold by vendors, system integrators and third-party developers. Business process fusion applications are derived from an explicit process model, with the scope of a full end-to-end business process. Strategic Planning Assumption: Four types of service-oriented business applications: SOAP-wrapped legacy applications, new best-of-breed components, modular enterprise suites and composite service-oriented business applications will diverge in terms of deployment and capabilities through 2008 ( probability). What are service-oriented business applications? How service-oriented business application's will be deployed: 2003: The first wave of service-oriented business applications will be deployed within enterprise boundaries. Although SOAP-wrapped legacy applications are beginning to be made available, first-wave service-oriented business applications are typically the result of internal composite AD and represent limited business process fusion capabilities. 2003–2005: The second wave of applications, including actual vendors product offerings, and business process fusion capabilities, will be designed to work within enterprise boundaries or among limited trading partner groupings. 2005–2007: The third wave will be composite-based, and ultimately used across entire industry supply chains. Trading partners will collaborate in developing these applications, integrating best-of-breed components, and deploy them in a multi-platform environment, together with XML-based standards. After 2007: The fourth wave of service-oriented business application's will enable entire industry value networks in specific industries, Business applications modules, including ERP, SCM, SRM, CRM, PLM, BAM and emerging demand-chain management applications (DCM will use application interoperability gained through native service-oriented development. Strategic Planning Assumption: In 2006, more than 80 percent of all business application product sold worldwide will be service oriented ( probability). Key Issue: How will vendors respond with service-oriented business applications through 2008? What are major vendors doing in this arena? This Magic Quadrant illustrates the relative position of the major vendors and their influence over Web Services technologies and the evolution of Web services in general. To qualify as a major vendor, it must have annual revenue of more than $500 million. Criteria evaluated include 1) breadth of strategy, 2) standards influence (not standards compliance, and not B2B semantics standards such as ebXML), 3) developer influence, 4) business models (for their company and the industry) and 5) leverage and exploitation of Web services beyond traditional developers. The last category is new in this update of the Magic Quadrant. It is illustrative of the impact Web services is beginning to have as it moves into the mainstream and this effect is beyond traditional developers and integration specialists. For this reason, we have added three business application vendors — PeopleSoft, SAP and Siebel — in addition to Oracle, which has been on prior Web service Magic Quadrant releases. All four business application vendors are expected to increasingly affect the Web services market through the transformation of established products to service-oriented business application formats, new service-oriented business application product development, and the introduction of platforms for composite AD using products from multiple vendor sources. Key Issue: How will service-oriented business applications enable the enterprise to respond to competitive demands? Inhibitors: Not believing these models can be developed blocks development. Benefits of SOA fail to be recognized by end users. Lack of human technical resources will constrain progress. Attention not paid to underlying data models stops real-time business process fusion. Standards development lags, leading to limited dynamic capabilities. Vendor proprietary behavior freezes formation of multivendor best-of-breed service-oriented business application composites. Accelerators: Progress in standards development occurs as vendors agree on the higher levels of Web services. Application integration is seen as primary IT challenge. Business process fusion advantages are understood by end users, triggering service-oriented business application demand. Rapid service-oriented business application end-user ROI frees resources for internal development and external product purchases. Growth of collaborative commerce triggers development and deployment among trading partners. Significant successes will demonstrate the advantages and viability of service-oriented business applications and related composite AD. Action Item: Service-oriented business application accelerators will overcome potential inhibitors. Enterprises and vendors should be aware that, despite “bumps” along the way, factors point to the service-oriented business application deployment. Recommendations Within Three Months: • Categorize the applications shared with top-tier customers and suppliers. • Identify bottlenecks stopping real-time business process integration. • Investigate the unification of internal ERP applications using limited SOAP-based Web services. Within Six Months: • Start development of composite SOBAs enabling end-to-end business process fusion. • Identify and begin to build Web services with top-tier trading partners. Within 24 Months: • You should be well on your way to full deployment of an enterprise SOA emphasizing composite application development and full application interoperability. • Migrate current business applications to service-oriented (SOBA) formats.