IT Basics for Supply Networks/5

IT Basics for Supply NetworksIT Basics for Supply Networks

IT Basics for Supply Networks/5IT Basics for Supply Networks/5

Dr. Withalm Apr 20, 2023

IT Basics for Supply Networks20.04.23 Dr.Withalm2

Lectures at the University of Bratislava/Autumn 2014

30.09.2014 Lecture 1 Introduction in CNO’s & Basics of Supply Networks

07.10.2014 Lecture 2 Kanban & Essential Supply Chain Processes

21.10.2014 Lecture 3 Business Processes & Semantic Web

11.11.2014 Lecture 4 SOA and SOA basing on J2EE

18.11.2014 Lecture 5 B2B & Cloud Computing including SaaS


Summarizing of Lecture/1

Business Aspects

Fundamental Definitions of CNO’S & Examples

Assessments

CMMI

ECMM

Serious Gaming

COIN as Paradigm Project

ITA COIN Collaboration

Kanban

SCPP (Supply Chain Process Platform)

Challenges & Requirements on CDCP

DCP (Demand Capacity Planning)

CDCP (Collaborative Demand Capacity Planning


Summarizing of Lecture/2

Brief introduction of ARIS Connection SOA with ARIS Event Control – Event Driven Process Chain (EPC) Function Allocation Diagram Information Flow Diagram Event Diagram Function Organization Data

EPC/PCD Semantic WEB

Example Ontology Connection to WS

Overview of SOA SOA and WS and related Technologies Future of WEB Applications Event-Driven Business Processes

SOA basing on J2EE Change of Architectures SOA Concept SOA in J2EE Servlets Portlets Implications


Today’s Agenda

B2B Frameworks Overview Conclusions

Cloud Computing Definition Service Delivery Levels Deployment Models Architecture Standards Example

SaaS Origin Major Trends Back Ground & Context Business Strategies Business Models Metaphor Ingredients Premises IBM’s View Methodology


B2B Frameworks/1Overview/1

The first step towards this goal has already been taken in the past using Electronic Data Interchange (EDI) concept.

However, the increasing use of Web protocols, such as HTTP, and the remarkable success of HTML have favoured more flexible solutions, notably XML.

Hence, most B2B frameworks are built heavily on XML. Typically a B2B framework is a XML-based and middleware-neutral

document specification though most of the B2B frameworks require the use of Internet

and Web protocols such as HTTP, SSL, and MIME.



Originally, B2B frameworks focused solely on developing vendor-independent specifications for a set of documents to be exchanged between business

partners. Lately, the frameworks realised the need to coordinate the actions

of different business partners so that, business partners should definitely agree on the

structure of documents they exchange but they should also know when to exchange those

documents and how to articulate those external exchanges with their

internal business processes.



As a result, B2B frameworks have begun focusing both on document format and on CBP’s (Cross organizational Business Processes) that concern the exchange of those documents.

Some of these B2B frameworks specify the infrastructure required for business partners to implement those exchanges.

In other words, some frameworks specify both message format and exchange sequence and some specify the message format and an infrastructure

which allow business partners to define and implement their own interactions.


B2B Frameworks/4Summary/1

Electronic business is not an invention of the Web Already in the 80’s a standard for Electronic Data Interchange (EDI)

was established Mainly focusing on business data

Technological driver of B2B frameworks was XML United Nations bodies, OASIS (Organization for the Advancement of

Structured Information Standards) and vendors fostered the development of standards

Partly standards are focusing on business data Whereas the others tried to standardize business processes

Between the involved companies of electronic business



To the first group belong: ebXML which focuses on CPP (Collaboration Partner

Profile) and CPA (Collaboration Partner Agreement) Are in some way a superset of WSDL

cXML defining structures of purchase orders or order acknowledgment

UBI ended in a standard and is more or less successor of EDI



To the second group belong: RosettaNet providing dictionaries, PIP (Partner Interface

Processes), and TPA’s (Trading Partners Agreement) -including 5 modules

OBI entailing a buying organization Biztalk specifies message formats that encloses documents:

provided on MS servers Bolero.net is running on a server owned by an independent third

party-focusing on trading processes tpaML provides a special language to express agreements

between business partners



Two of them are meta frameworks: eCO architecture is an abstract architecture for B2B

frameworks XCBL is a set of XML building blocks and a document

framework



There are some of B2B frameworks such as ebXML, RosettaNet, OBI, cXML, BizTalk, bolero.net

The most relevant important standards are ebXML, RosettaNet and cXML even if they are very different.

Web service standards defines a standard infrastructure for locating and invoking remote application services

within and between organisations. This is a primitive set of standards

really an approach to application development, similar to older standards such as distributed objects and component-based

programming but easier to understand and deploy.



The ebXML, RosettaNet and to a lesser extent cXML standards generally speaking, relate to, how information moves

between companies including format and process.

cXML and UBL offer a standard definition of commonly used business documents. From the largest software companies

to new industry solution providers to open source projects

providers of such tools are world-wide.


Cloud Computing/Definition

The notion of what exactly is cloud computing is ... cloudy -- numerous definitions exist. A rather well-founded definition is provided by the US National Institute for Standards and Technology (NIST) Cloud computing is a model for enabling convenient, on-

demand network access to a shared pool of configurable computing resources e.g., networks, servers, storage, applications, and services

that can be rapidly provisioned and released with minimal management effort or service provider

interaction. As most other definitions, NIST's definition describes three service-

delivery models for cloud computing


Cloud Computing/Service Delivery Levels

Cloud Software as a Service (SaaS) The capability provided to the consumer is to use the provider's

applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as a Web browser (e.g., web-based email).

Cloud Platform as a Service (PaaS) The capability provided to the consumer is to deploy onto the

cloud infrastructure consumer-created applications using programming languages and tools supported by the provider (e.g., java, python, .Net).

Cloud Infrastructure as a Service (IaaS) The capability provided to the consumer is to provision

processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications.


Cloud Computing/SaaS Layer

The SaaS layer is regarded as the application layer, delivering applications over the browser or composite high-level services.

It's important to mention that cloud computing is not stuck to thin-clients. The smart phone shows that the smart client is used in practice.

Therefore, new client technology, running as plug-in in the browsers, for example Microsoft's Silverlight, Adobe's AIR, Flash, Java

FX,Google Chrome, are required to deliver the required user experience.

Prominent examples are, Microsoft online (BPOS) and live, Goggle Apps, Salesforce CRM,

SuccessFactors, Apple's AppStore and many more.


Cloud Computing/PaaS Layer/1

The PaaS layer consists of a platform technology and typical foundation infrastructure services. This could be split up in the platform and service.

The architectural platform aspect can be compared to a typical desktop operating system and infrastructure services to typical network services required in an enterprise environment.

The platform part covers the abstraction for resource management computation, storage, network

The service part covers services for directories, search, billing.


Cloud Computing/PaaS Layer/2

Current examples are Windows Azure, Goggle App Engine, Force.com. All three offerings can be regarded as PaaS, but are very different. Windows Azure is much like an .net operating system open for

developing like for an on-premise OS Google App Engine is intended to allow glue logic in Java and

Python for Google Apps Force.com is a fully proprietary platform with specific programming

language and useful services in the CRM domain. The common advantage of cloud platforms is their focus on

scalability, reliability and low operating cost. Existing applications cannot be transferred from on-premise to cloud platforms;

they typically have to be reengineered in order to gain the benefit of seamless Internet scale.


Cloud Computing/IaaS Layer

The IaaS layer covers all the current offerings in the virtualization domain.

The market leader is Amazon (Elastic Cloud) typically offering hosted operating systems like Windows or Linux.

These virtualized offerings allow fast scale of virtualized hardware, but does not scale up applications, if they are not developed for scalability already.

But also the new types of services, called storage services are related to the infrastructure level. Prominent offerings are: Amazon Simple Storage (S3), SimpleDB,

Windows Azure Storage, Google Storage. Furthermore, infrastructure services for synchronization are

provided.


Cloud Computing/Deployment Models

Private cloud The cloud infrastructure is operated solely for an organization. It may be managed by

the organization or a third party and may exist on premise or off premise. Community cloud

The cloud infrastructure is shared by several organizations (e.g. SC, CNO) and

supports a specific community that has shared concerns (e.g., mission, security

requirements, policy, and compliance considerations). It may be managed by the

organizations or a third party and may exist on premise or off premise. On-premises software is installed and run on computers on the premises (in the

building) off-premises software is commonly called "software as a service" or "computing in

the cloud." Public cloud

The cloud infrastructure is made available to the general public or a large industry

group and is owned by an organization selling cloud services.


Cloud Computing/Hybrid Cloud

These deployment models can be mixed as a "hybrid cloud": the cloud infrastructure is a composition of two or more

clouds (private, community, or public) that remain unique

entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting).


Service View vs. Architecture View

The big number of different definitions and the current buzz around cloud computing, leads to different interpretations of cloud computing.

Therefore, a cloud computing reference architecture model is introduced which allows relating technological and architectural aspects to service view

aspects. Cloud computing novelty comes from the composition of existing

technologies combined with new business models for software and service selling. It's not a single new technology.


Cloud Computing Architecture


Cloud Computing/Standards

Cloud computing heavily relies on Web standards (protocols, e.g. SOAP and REST, security, e.g. SAML (Security Assertion Markup Language ),OAuth (Open Authorization) , etc.) but there are no specific cloud computing standards for

elements and processes such as APIs, the storage, data import and export, and

backup. Furthermore, application portability is difficult, because the

platform concepts differ in resource scheduling and resource access and control from current on-premise concepts.


Cloud Computing @ SIS

Establishing an all over concept of Cloud Computing Dynamic delivery of ICT services in the form of

Applications (SaaS) Platform services (PaaS) Infrastructure services (IaaS)

The three blocks – SaaS, PaaS and IaaS – should not be looked at in isolation: they have mutual interrelationships that have to be taken into account in forming business models.


Cloud Computing /Framework of NISTNationale Institute of Standards and Technology


Cloud Infrastructure/Siemens


From a Linear Value Chain to a Cloud Computing Ecosystem


Business Models


Maturity Model

The business models can be classified and assessed by means of a maturity models and

the value chain. The maturity model has different service level development stages in

SaaS, PaaS and IaaS.


Cloud Computing/Success Factors/1

Generic cloud computing aspects Low price Flexible contractual models

Relevant factors in SaaS Best-of-breed support for the company processes that are mapped The provider’s economic reliability Integration and migration interfaces References and flexible price models


Cloud Computing/Success Factors/2

Key aspects for PaaS providers Size of the community entrusted with developing the

technology in question Simplicity of service deployment Architecture frameworks that support automatic scaling

Key aspects for IaaS providers Leveraging economies of scale Advantages in price/performance ratio Availability Security Network connection’s bandwidth


CAPPER Supply C3 (Cloud, Common Processes and Collaboration) describes an elastic cloud of common processes within defined and structured communications patterns for sharing business process information

CSC3 is at the center of a new movement in software called Cloud Computing and Platform as a Service in which the application framework is provided as customizable web-based services.

Integrated portfolio for CAPPER Supply C3Software as a Service - provides many business applications that can be deployed out of the box, or used as templates for supporting the development of custom ones. All applications can be used independently from each other, while leveraging a common set of components and features.

Platform as a Service - offers an integrated platform for developing cloud applications that are natively elastic and multi-tenant.

Infrastructure as a Service - provides an elastically scalable infrastructure for the deployment of applications and the storage of data and documents.

20.04.23

Cloud Computing/Examples/1CAPPER Supply C3 (CSC3)

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CSC3 Services are designed for business processes that have event-driven needs within their applications and require a flexible, reliable, cost-effective communication solution that can scale seamlessly.

CharacteristicsPlatform independent communication mannerCollection of operations accessible via standardized messaging networksSimple set up, operation and notification from any infrastructureHighly scalable, flexible, and cost-effective capability to publish messages

CSC3 ServicesCSC3 Data ModelCSC3 Workflow & Logical ModelCSC3 Permissions ModelCSC3 Integration Model

Cloud Computing/Examples/2CSC3 Services

20.04.23 37


Cloud Deployment ModelsPrivat CloudCommunity CloudPublic Cloud

CSC3 Single NodeElastic Collaboration with a Central Hosting Solution (DB)

CSC3 Multi NodeElastic Collaboration Cluster with a one-to-one mapping to an Elastic Cloud Cluster

CSC3 Dynamic NodeElastic Collaboration with a dynamic mapping and a cluster to cluster allocation

20.04.23

Cloud Computing/Examples/3CSC3 Elastic Collaboration

38


CSC3 SPACESupply Chain Collaboration Processes

Customer Demand Management Capacity Management Vendor Demand Management Partner Management Group Management Alert Management3SPACE

Link: https://space.csc3.org

Interregional Planning SolutionsCreation of innovative networks and solutions between

regional development planning, architecture, economy and governmental and academic partners

Delivery of e-services and e-government solutions across borders

20.04.23

Cloud Computing/Examples/4CSC3 Products

39


SaaS (Software as a Service)/2Overview

Origin Major Trends Back Ground & Context Business Strategies Business Models Metaphor Ingredients Premises IBM’s View Methodology


SaaS (Software as a Service)/1Origins

Some ideas are coming from the “Big Iron”

also some similar ideas as “Thin Clients” and “Application service providing” are going back to the late nineties

The primary idea of SaaS is the following

provide the user with application functionality via web clients

instead to force to install the whole application on his PC.


Background and Context Distinguishing ASP from SaaS

Application Hosting Model Software as a Service Model

Customer pays on delivery of software Customer pays for delivery of functional

services

Customer responsible for software

performance

Provider responsible for software

performance

Customer responsible to customize

software to business requirements

Customer responsible to configure

software to business requirements

Customer pays maintenance to fix

software

Provider fixes software or pays penalty

for failure to meet service levels

Customer buys upgrades to keep current Provider ensures currency of solution

Source: Summit Strategies, Inc “Software Powered Services: Net-native SaaS Transforms the ISV Business Model” Feb, 2005


Background and Context A tentative Roadmap towards SaaS-U

Today’s Models

(mostly fixed)

Simple Increments

(modify CPU/tiered models)

Hybrid(Fixed & Variable Usage)

Variable Usage

(Metered)

Value Driven (based on

functioncommoditisation)

SaaSSubscription

SaaS-U

Marginal cost > 0.0Value based dynamic pricing

Service infrastructure as utilityInnovation focused

Variable costsShared resources

Service oriented24632463

Fixed costsDedicated resources

Product oriented

IT Plug IT Switch IT Tap


Business Strategies

Intellectual property Bundling Standards Open source Long tail “Free” FUD (Fear, Uncertainty and Doubt)


Utility based business models: Issues & Questions

Issues Questions Market & its Rules

Ownership:

nothing is owned

Who to buy from?Who comprise the SaaS-U value chain?

How many providers, service publishers, intermediaries? Will there be

gatekeepers?

Pricing and Licensing:

value based and dynamic

How to determine value?

How to measure usage?

What gets metered?

(Customers) How to price SW based on, e.g.

Number of cars built, Number of cars hired,

Number of airline passengers,

Number of banking deposits, etc

(Providers) How to meter based on, e.g. business processes,peak/off peak pricing, tariffs, auctions, location hosting discounts, forecasting & penalties, others?

Payment:

pay only for what is used

What exactly gets billed?

How many meters?

How to get an invoice?

How to pay?

“Alignment” between pricing and metering?

One meter per “product”, per “service”?

What are the payment and clearance mechanisms?

Who gets paid?

Standards and

Interoperability

What are the “guaranteed properties” for

-Availability

-Accessibility

-Security

-Reliability

-Interoperability

-Usability

-Others?

SLA between customers and providers/third parties

SLA between providers

SLA between third parties

Customer expectations and “industry norms”

Oversight and governance


MetaphorElectricity

Infrastructure, i.e. cables (network, servers ...)

Different kinds of plug-ins (interfaces, no international standards)

Different adapters to appliances (integration of legacy systems)

Different utilities, i.e. high/low voltage

Different business models, i.e. business/private customers


MetaphorAMADEUS – IT Provider in Tourism

Infrastructure A dedicated network, which provides different booking

offers (flights, hotels, packages, events ...) TOMA interface is the connector to the utilities Utilities are different booking offers as

Flights, Packages: are provided by different organizations as airlines, tour operators, hotels ...

Business models consist of Access price, which is a fixed price for a period Booking fee, which is an amount of the whole booking

price


Ingredients

Infrastructure containing Payment services Maintenance services Monitoring services Building of domain clusters / sub webs

Providing of domain specific services, which are separated in Basic, horizontal, vertical ones

Services are built on the four cornerstones Web2.0 Web services, SOA Semantic Web Ontology

which induces the separation in domains Interfaces to make services to be integrated with ERP and legacy

systems


Premises

Technological Eclipse, IBM Websphere, Microsoft Team Foundation

Server Semantic Web languages (OWL, RDF, etc.)

Domain competency Especially in Automotive, Healthcare, Energy

Ontology Basic knowledge how ontology could be established,

which in turn also requires deep domain knowledge.


IBM’s ViewManaged Hosting and Support for SaaS Solution

Internet connectivity & Operations

Data centre LAN infra & Operations

Server Hardware Infra & Operations

Storage & Tape HW Infra & Mgmt

OS Management

Application Operations

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MethodologySaaS/1

EI Services which are available on the GSP (Generic Service Platform) will be provided via the SaaS concept. which is an emerging concept for current and future

networked enterprises SaaS is a model for SW deployment with the following

characteristics: application is hosted as a service provided to

customers across the Internet. application must neither be installed nor run on the

customer's own computer alleviates the customer's burden of software

maintenance, ongoing operation, and support. customers relinquish control over software versions or

changing requirements. conceivably reduce that up-front expense of software

purchases through less costly, on-demand pricing.


MethodologySaaS/2

From the software vendor's standpoint following issues are from importance: it has the attraction of providing stronger protection of

its intellectual property establishing an ongoing revenue stream may host the application on its own web server this function may also be handled by a third-party

application service provider (ASP). This way, end users may reduce their investment

on server hardware too.


MethodologySaaS/3

Many types of software are well suited to the SaaS model where customers may have little interest or capability in software

deployment, but do have substantial computing needs. Such Application areas are for instance:

Customer relationship management (CRM) i.e. Salesforce Video conferencing Human resources IT service management Accounting IT security Web analytics Web content management e-mail are

These are the initial markets showing SaaS success


MethodologySaaS/4

SaaS solutions were developed specifically to leverage web technologies such as the browser, thereby making them web-native.

Both data design as well as architecture of SaaS applications are specifically built with a 'multi-tenant' backend Multi-tenancy refers to a principle in software architecture where

a single instance of the software runs on a server, serving multiple client organizations (tenants). thus enabling multiple customers or users to access a shared

data model. This further differentiates SaaS from client/server or 'ASP'

(Application Service Provider) solutions because SaaS providers are leveraging enormous economies of

scale in the deployment, management, support and through the

Software Development Lifecycle.


MethodologySaaS/5

A new implementation of the SaaS vision is expected supporting the various collaborative business forms,

from supply chains to business ecosystems and becoming for them like a utility, a commodity,

the so-called Interoperability Service Utility (ISU) ISU will not just create a service platform

but mainly a new business concept – the Software-as-a-Service Utility (SaaS-U) model.


MethodologySaaS-U/1

can be seen as a software application delivery model where a software vendor develops Web-native

software services hosting and operating them for use by its customers

over the Internet. Customers do not pay for owning the software itself any

longer but rather for using it on-demand. They use it through an API accessible over the Web and

often written using Web services. fits also well with modern SOA architectures

aiming to promote software development in a way that leverages the construction of dynamic software systems which can easily adapt to volatile user

environments and be easily maintained as well.


MethodologySaaS-U/2

SOA enables flexible connectivity of applications by representing every application as a service with a standardized interface. enabling to exchange structured information quickly

and flexibly. This flexibility enables new and existing applications to be

easily and quickly combined to address changing business needs, and the ability to

easily combine and choreograph applications allowing IT services to more readily reflect business

processes


MethodologySaaS-U/3Open Issues/1

Are there success stories/lessons learned in specific domains concerning experience of ISU/SaaS-U?

SaaS-U will undergo further transformation In business models for SaaS-U the providing of platforms should be taken into

account What’s the borderline between value added services and utility services: concretely is

payment an utility service? Do utility services belong to horizontal services? Consider the differentiation between horizontal and vertical services. Assessment respectively certification authorities could be another type of stake

holder: especially in the crucial issues as QoS (Quality of Service), liability, reliability, SLA (Service Level Agreement).

There are doubts that ISU will bring intelligence in the network. Discussions about the different types of metaphors especially concerning the tab: is

mixture of cold and warm water really a metaphor for ISU? Distinguish among cost based and market based prices IPR (and patents) also for SW solutions are encouraged by CMMI assessments :

could this fact increase prices for ISU



Legal aspects must be solved

Above all liability issues

The crucial issue seems to be the Ontology.

Without Ontology UDDI will not work properly.

So no customer will really find the respective services!

It’s also very questionable, if Ontology will be standardized.

Some fears are concerning the quality of services.

Are they again “technical” services at the end of the day?

as we experienced with objects



Another hype? Ontology neither exists nor chance to agree on it.

Often on political reasons (i.e. Automotive sector – Odette) Services don’t meet the expectations of end users.

Neither value proposition nor relevant business models are met. Interfaces/connectors to ERP/legacy systems are too heavy to be

implemented. Are there enough technicians or business experts available?

IT Basics for Supply NetworksIT Basics for Supply Networks

Thank youfor your attention!


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