Busting Myths of On-Demand: Integration Peter Coffee Director, Platform Research salesforce.com 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 Native Desktop Integration Partner Developer 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 Force.com Web Services API 1 2 3 Integration Mash-ups from Native Native ERP Developer Partner AppExchange Desktop Connectors Toolkits Ecosystem Connectors Example 1: Native ERP Connectors Synchronization, Pre-Built Templates, and Packaged Transfomation Integration Mash-ups from Native Native ERP Developer Middleware AppExchange Desktop Connectors Toolkits Connectors Connectors Activant – Increased Sales Productivity with Integration to Oracle 11i Force.com Connect for Oracle 11i and Fusion Middleware Salesforce Oracle 11i Challenge Solution Results Inconsistent view of customers across Used Force.com ConnectOracle 11i, a native Higher sales productivity connector from salesforce.com, to synchronize multiple applications since salesforce.com 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 & Force.com 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 implementing. 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 Force.com Connect Category on the AppExchange Certified connectors to more than 30 integration middleware partners Middleware SOA Document Management Integration Appliances Composites 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 Power Siemens Building Transmission and Technologies Distribution $6B annual Global sales 18,000 employees 28.5% #2 global market share 19.7% 19.3% 17.3% 9.8% 5.4% 1) Since Oct.1, 2006 represented by Siemens Networks GmbH Co. KG and Siemens Enterprise Communications GmbH & Co. KG Our ERP & CRM Environment Salesforce.com – 550 seats across three Operating Companies – Used for joint sales force in North America SAP – 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 WANTED: 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 salesforce.com connectivity Integration Appliance – New technology – Configuration-based approach – Built-in salesforce.com & 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 salesforce.com 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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