"To integrate is noble, to succeed - divine!". Integration Challenge Panel Chris Brown,...

"To integrate is noble, to succeed - divine!"

Integration Challenge Panel

Chris Brown, Senior Systems Analyst, Hewitt Associates

Dana Freeman, President and CEO, HRchitect, Inc.

Brad Harris, Founder, Modulelink

“Integration Challenge Panel”, April 28, 2003Chris Brown, Senior Systems Analyst, Hewitt Associates

Benefits Outsourcing Overview

Client outsources some/all of 401(k), pension, healthcare administration

Client owns demographic and payroll dataWe accept and apply changes (“elections”) based

on user request (e.g. birth of child) and client data (e.g. change to part-time status)

We drive external systems based on elections (e.g. tell a carrier/HMO to cover the child, tell payroll to change payroll deductions)

Current Architecture

Classic 3-tier model, built around batch interfaces Big Iron, Mainframes

• z/OS servers in a 3-way sysplex• Employment, pay, benefits history for 13 million

participants stored in DB2 Our application is Object-Oriented COBOL

frontable by Java Re-architecting not an option

Problem: Latency

Inherent latency, typically up to two weeks for message to get from HRIS to carrier

Bad customer experience!

Reducing Latency

Obviously can reduce latency by moving away from huge weekly batch files toward transaction-based messages

But what should messages contain?Need to be able to apply changes to 250+

client HR and payroll and 500+ carriers

Solution: HR-XML

Data model is good enough and platform-neutral

Easy to fit in existing architecture MQSeries & homegrown Java handlers Web Services & J2EE implementation Even batch mode on z/OS (390 mainframe)

Using XSL to transform HR-XML to our “native” transaction layout

Questions?

chris.brown@hewitt.com

“Integration Challenge Panel”, April 28, 2003Dana Freeman, President and CEO, HRchitect, Inc.

Software Vendor Challenges Developing custom point to point integration

solutions to multiple complementary software vendors is risky and expensive

R&D budget is spent on developing, certifying and maintaining custom integration instead of enhancing the core product

Only the complementary vendors with the highest ROI (impact on sales revenue) can be justified

Software Vendor Challenges Formal alliance partnerships are normally required

to develop, certify and maintain the integration

If complementary vendors begin to offer competitive products, alliance partnerships break down and ongoing maintenance of the integration becomes a challenge

Joint customers get caught in the middle and customer satisfaction may be impacted

HR-XML Software Vendor Value Proposition

Invest in integrating to one HR-XML standard to support multiple complementary software vendors

Maintain ongoing integration commitments and keep your customers satisfied even when alliance partners become competitors

Lots of complementary software partners increases the HR-XML value proposition

Transactions requiring real-time integration (HTTPS) make HR-XML more attractive

Customer Challenges Developing custom point to point integration solutions

between complementary software vendors requires specialized skills and is expensive

IT budget is spent on developing, testing and maintaining custom integration instead of new IT initiatives with greater ROI

Freedom of Choice - vendor supported integration is only available for a limited number of complementary software vendors

If vendor alliance partnerships break down, the customer ends up owning the ongoing maintenance of the integration

HR-XML Customer Value Proposition

Shifts the integration development and maintenance responsibility to the software vendors

Freedom of Choice – select from a wider variety of complementary software vendors

Risk Mitigation – vendors are more likely to continue supporting the integration even if they become competitors

Leverage HR-XML specifications to exchange data with custom developed in-house applications

HR-XML Background Checking Specification Example

Applicant TrackingSystem

HRMS

Background CheckVendor

For Certain Transfers and PromotionsHRMS Requests Background Check

Background Check Vendor Returns Pass/Fail CodeHRMS User Accesses Vendor’s System for Details

ATS Requests Background CheckBackground Check Vendor Returns Pass/Fail Code

ATS User Accesses Vendor’s System for Details

HRMS Sends Control Data to ATSATS Sends New Hires to HRMS

HR-XML Adoption Challenges Software vendors must support the specifications

Legacy products do not support XML New generation products do support XML Integration tool kits including middleware i.e. webMethods, Vitria etc. XML and other enabling technologies are “wet cement”

Customers need to adopt XML and a real-time integration approach

Legacy systems do not support XML Batch/FTP is often still the preferred approach XML overhead and processing efficiency

dfreeman@HRchiect.com

Questions?www.hr-xml.org

“Integration Challenge Panel”, April 28, 2003Brad Harris, Founder, Modulelink