Custom Solution Development Agreement by ghz13491


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									Busting Myths of On-Demand:
     Peter Coffee
     Director, Platform Research

     Robert Ball
     Integrations Lead
     Activant Solutions

     Randy Berger
     Process Development Manager
     Siemens Power Transmission and Distribution
More than a Browser

  Myth: It’s hard to integrate with on-demand systems
    – The browser looks like a “glass wall”
    – Access to other data and logic are important

  Busted: On-demand integration is easier, faster,
   and less risky
    – Native connectors
    – Enterprise middleware
    – Web 2.0 “mash-ups”
Keys to Enterprise On-Demand

  Business-oriented API
  Synchronization as required
  Scalable to high data volume
                                 Platform for Service Oriented Architecture
  Open to data diversity

                                                                          Legacy App

                                                                          Legacy App
Agreement on Objectives

  Integration of what?
    – Data                      Mash-ups from   Native ERP
                                AppExchange     Connectors                               Toolkits
                                                             Connectors   Ecosystem
    – Logic
    – User interface

  Toward what end?
    – Indefinite co-existence
    – Legacy system consolidation
    – Strategic move to on-demand development
Agreement on “Success”

  Cost reduction
  Performance achievement
  Service-oriented architecture
  Risk management
  Governance improvements
                              Enterprise-ready ERP integration options

A comprehensive solution built on the Web Services API

                                         1              2              3

    Mash-ups from     Native        Native ERP                     Developer
    AppExchange      Desktop        Connectors                      Toolkits
Example 1: Native ERP Connectors
Synchronization, Pre-Built Templates, and Packaged Transfomation

  Mash-ups from     Native     Native ERP                  Developer
  AppExchange      Desktop     Connectors                   Toolkits
Activant – Increased Sales Productivity with Integration to Oracle 11i Connect for Oracle 11i and Fusion Middleware

       Salesforce                                                                Oracle 11i

Challenge                                          Solution                                           Results
  Inconsistent view of customers across            Used ConnectOracle 11i, a native        Higher sales productivity
                                                     connector from, to synchronize
   multiple applications since                                                          Sales can now access critical ERP data via
                                                     customers across systems; including custom
   was implemented company-wide a year ago           Oracle programs to enhance functionality           Salesforce
   resulted in reduced sales productivity           Customer master integration will serve as the     Reduced time per sales call
                                                     springboard for process integration via Oracle
  Sought to return sales productivity by            Fusion BPEL manager                               Synchronized Customer Master across front and
   providing critical customer data to sales                                                            back office
                                                    Next phases:
   teams through a single interface                     – Contacts                                     Highly reliable, hybrid solution installed in
  Highly technical, resource intensive build of        – Web Portal                                    minimal time under budget.
   integration versus vendor-provided                   – Install Base                                 Higher quality data, better communication
   integration appliance                                – Items, Pricing                                between Sales and Finance departments
                                                        – Order Entry
Activant – Who are we

                   Activant Solutions Inc. – Livermore, CA

   Systems Integrator
   Leading provider of POS/ERP solutions for medium sized businesses in four
   vertical markets: Hardware Stores, Auto Parts, Lumber/Building, Wholesale
   Distribution. Revenue = $500 million/year. Approximately 400 sales reps.

   Complete Solutions Provider
   Integrate the hardware, OS, database, apps software, connectivity, content,
   and services to be the “IT Department” for our customers.

   Steep Growth Curve
   Several acquisitions per year ($50 million - $200 million companies).

   Most Sales to Existing Customers
   Over 2/3 of sales revenue comes from existing customers. Approx. 2/3 of total
   revenue comes from recurring fees (license, content subscription & services).
Activant – ERP Integration Challenge Faced

            Business Challenges                                 Technical Challenges

   Change processes in Finance to maintain            Data denormalization issue
    needed data on Oracle                                 – “Safety Net” concurrent requests
                                                          – Packing multiple data items into a single
                                                            descriptive flexfield
   Persuade sales reps to allow Oracle to overwrite
                                                       Oracle Business Event system (Workflow)
    “their” data
                                                          – Implementing changes
                                                          – Overloading
   Transformation business logic
                                                       KNA Process
                                                          – Oracle descriptive flexfield  Salesforce
   Synchronize the meaning of data items                   workflow
                                                       Implementation strategy
                                                          – Comparing Oracle & Salesforce data
   Develop feedback channels (Sales – Finance)
                                                          – Phased go-live using data load utility
                                                          – Temporary Salesforce workflow
   Key New Accounts (KNA) process
Activant – Solution - Roadmap

    Business Analysis
    This is critical! - Much of Activant’s was already done as a result of legacy
    integration, and initial salesforce data load. Activant had additional work
    resulting from legacy system data not being on Oracle yet.

    Develop on Oracle First
    The ERP effort is bigger, more risky and has more “red tape.” Salesforce
    development & Connect development is much smaller – more fun.

    Have Sales Sign Off on the Data
    Show them the differences between what’s in Salesforce now and what Oracle
    will overwrite with. Work through the differences until Sales is satisfied before

    Go Live in Phases (if Possible)
    By coupling data signoff with Go Live, the process is smoother. By
    implementing in phases it is more manageable.
Activant – Benefits

 Increased Sales & Finance Productivity
 Hidden cost of sales having to “look up” information eliminated, especially when it required
 calling someone. Finance gets better feedback and can get the data correct quicker (less
 back & forth).

 Team Spirit
 Before, Sales complained about the data that Finance maintained and their
 responsiveness. Now it’s a partnership and Sales shares responsibility for data accuracy.

 Better Reporting
 By having the data synchronized, reporting on Oracle & Salesforce data together is easy.

 More Accurate Data / Communication
 With the feedback loop, The Oracle data is more accurate. Finance uses the integration to
 communicate needs about customers to Sales.

 Easy to Monitor & Maintain
 Oracle alerts & Salesforce workflow notifications provide electronic alerts, often before
 problems occur.
Example 2: Integration Partner Ecosystem Connect Category on the AppExchange

   Certified connectors to more than 30 integration middleware partners


           Document Management

                                 Integration Appliances


                                 Data Integration
SIEMENS Business Overview
Information and      Automation                                                            Medical
                                               Power             Transportation                                 Lighting
Communications       and Control

Communications 1   Automation and        Power Generation         Transportation       Medical Solutions        OSRAM
                   Drives                                         Systems
 Siemens           Industrial               TurboCare
 Business          Solutions and                                  Siemens VDO
 Services          Services                                       Automotive
                   Siemens Building Transmission and
                   Technologies     Distribution                                     $6B annual Global sales
                                                                                     18,000 employees
                        28.5%                                                        #2 global market share

               1) Since Oct.1, 2006 represented by Siemens Networks GmbH Co. KG
                  and Siemens Enterprise Communications GmbH & Co. KG
Our ERP & CRM Environment

  – 550 seats across three Operating Companies
  – Used for joint sales force in North America

  – System of Record for SPTD
  – Order Mgmt – Financials - Purchasing
ERP Integration Challenge Faced

   Business processes not yet fully harmonized
   Business Warehouse not in place yet
   High demand for reporting key business performance
   Limited in-house developer support


  Visibility of pipeline through shipment in one place

  Integration without code development!
Possible Options

  Custom Code
     – Quick but dirty
     – Too programming intensive
     – Difficult to modify as needs changed

  Traditional Integration Tools
     – Too costly
     – Long learning curve
     – No native connectivity
  Integration Appliance
     – New technology
     – Configuration-based approach
     – Built-in & SAP Connectivity
Solution - Roadmap

                     Customer Master

                 Invoicing/Billing Master

                        Order Master

                       Pricing Master

                      Product Master

                Cast Iron Integration Appliance
Benefits & Lessons Learned

    Integration strategy follows CRM platform strategy
      – No Software, no development, rapid deployment, easy to change
    Make simplicity a “must-have” while reviewing implementation options
      – Choose Simple solutions, not build-it-yourself tools
      – Cast Iron platform approach was the correct decision for us
    Clearly define the business and technical requirements up front
      – Key to rapid deployment is agreement up front
    Start simple… and deliver quick results
      – Support for first project success was critical
      – Build on initial experience
    Never underestimate the "Ahhh Factor"
      – Success is contagious!
Thousands of Customers Integrate with Every Day
Now Serving Over 1 Billion API Integration transactions per Month
Integration Best Practices

  Partner with Business – Understand the Processes
  Choose Approach Based on Cost vs. Benefits
  Look for great partners – Buy vs. Build
  Target Quick Wins
  Plan for Growth
Thank you!

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