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THE EAI PARADIGM SHIFT 1 ABSTRACT Enterprise Application

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THE EAI PARADIGM SHIFT 1 ABSTRACT Enterprise Application Powered By Docstoc
					                          THE EAI PARADIGM SHIFT


ABSTRACT

Enterprise Application Integration has been in the mainstream for the past 5
years. Companies deploying EAI solutions have reaped significant measurable
ROI in terms of cost savings and working capital benefits. However, over the past
few years, there has been a significant evolution in the EAI technology and as a
result, a change in the market place landscape, resulting in the emergence of
new paradigms with-in the EAI space.

The paper attempts to understand the factors influencing the paradigm shift, the
emerging trends in EAI and its implications for people who hold a stake in its
success.




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                        THE EAI PARADIGM SHIFT



Paper Title: The EAI Paradigm Shift

Name(s) of Author(s): Madhavan Krishnan

Email Address: madhavan.krishnan@wipro.com

Telephone with Extn: +91-80-25588422 Ext 4136

Location: Bangalore, India




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                        THE EAI PARADIGM SHIFT


TABLE OF CONTENTS

ABSTRACT                                          1
1 FACTORS INFLUENCING THE PARADIGM SHIFT          4
2 THE NEW EAI PARADIGM                            8
3. I MPLICATIONS OF THE NEW PARADIGM              9
4. C ONCLUSION                                   10
5. R EFERENCES AND ACKNOWLEDGMENTS               10
6. A PPENDIX 1.0                                 11
7. A BOUT THE AUTHOR                             11




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                            THE EAI PARADIGM SHIFT


1 Factors Influencing the Paradigm Shift

Let us analyze some under-currents that are causing the paradigm shift.


   1.1 Changing Business Drivers

      Table below lists the top 4 EAI business objectives of enterprises.

 EAI Business Drivers 5 years ago          EAI Business Drivers today
Enable company to conduct business Streamline business processes
over the internet by connecting •                Both internally and across the
application systems at the back end              value chain
                                           •     Improve efficiency, reduce risk,
                                                 raise productivity levels
Handle applications and systems Enable EAI as a necessary technology
integration   due     to    acquisitions, infrastructure for a company’s future IT
mergers, deregulation etc                 projects
Automate application(s) execution in a Maximize return on the investments
complex business process value chain made in previous years
Improve Productivity levels               Rapidly bring new offerings to market
                    Table: 1.0 Top 4 EAI objectives, extract from analysts’ view of EAI


      Research from EAI Analysts show the mandate of EAI has evolved from
      being an infrastructure to conduct an enterprise’s business over the
      Internet to an avenue that streamlines the company’s business process. In
      other words, EAI has evolved from being looked at as an ‘essential cost’ to
      an avenue that can provide vital cost savings, resulting in better working
      capital management and ensure streamlined, reduced risk operations .




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                                   THE EAI PARADIGM SHIFT



      1.2. Technology evolution (From application connectivity to business
      process modeling and management)

      Let’s face it; connectivity EAI has become a commodity today, given that a
      substantial IT project today is going to be spread across multiple
      applications. Breakthroughs in ‘Business Process Modeling and
      Management’ technology have enabled companies to realize that there is
      more to EAI than just interface integration. As a result, connectivity
      component of EAI, although still important, is now considered as a
      seamless component that ‘works’. Companies have realized that they can
      substantially increase benefits out of EAI by extending the EAI
      infrastructure to manage and streamline their business processes.



                            ROI ON EAI BASED ON AREA OF FOCUS
                                                        327%
                  350
                  300
ROI achieved in




                  250
  percentage




                  200                     126%
                  150           104%
                  100
                   50
                    0
                                              1
                                       Area of focus

                  Connectivity EAI                       Business Process Reengineering
                  Business Process Transformation
      (Source: Research data source from webinar on integration technology) Chart 1.0 ROI based on Area of Focus

      A recent study shows how the return from integration technology can be
      substantially higher if EAI objectives extend beyond simple application-to-
      application connectivity. Re-engineering business processes and business
      process transformation unleashed by the power of Business Process
      Modeling and Management techniques can help identify opportunities to
      eliminate redundancies and transform the existing business processes for
      greater productivity gains.

      However, in order to reap the rich rewards, EAI will now have to be looked
      at with a different lens. EAI leaders would have to put together a process



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                   THE EAI PARADIGM SHIFT
that unleashes the creativity of business analysts, technology experts and
the immense power of these ever improving EAI / BPM tools .

Please refer Appendix 1.0 for a brief description of emerging EAI
technology terminology.




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                     THE EAI PARADIGM SHIFT


1.3. Changing EAI Market Landscape

As with every new concept, early adopters of EAI enjoyed a distinct first
mover advantage in terms of greater cost savings, improved process
efficiencies, and a more streamlined business process execution vis-à-vis
with competition. Soon, the rest of the pack joined the race and very soon
everyone was on level playing field again. So, the market place demanded
break-through in technology that would provide innovative companies with
a distinct competitive advantage. This coincided with evolution of business
process abstraction, modeling and execution techniques that helped
enterprises to graphically model and automate the execution of their
business processes.




             (Source: Analysts view of EAI) Figure 1.0 EAI Deployment Stages as of 2003


Market survey clearly shows that there is a distinct competitive advantage
to be had if an EAI deployment can be extended to streamline, automate
and transform a company’s business process. This means, just
implementing any EAI solution will not guarantee competitive advantage
anymore. This presents as much of an opportunity as challenges that
accompany this initiative. It is an opportunity to gain substantially higher
returns, greater cost savings and the lead over the competition, if
implemented the right way.



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                                              THE EAI PARADIGM SHIFT
                          Companies can achieve unprecedented productivity gains and working
                          capital benefits if they can use process modeling and management tools
                          to unleash the power of the once standalone systems. As chart 2.0 shows,
                          the enterprises that have successfully scaled up their EAI implementation
                          to BPM and BAM (business activity monitoring) are few and far between,
                          while the rest of the market is still catching up



2 The New EAI Paradigm



                                            EAI Evolution Curve
                                              NOW

                                                                     Collaborative
                                                                     Extended
  Value of EAI in Units




                                             Business                Enterprise
                                             Process                 Integration,
                                             WorkFlow                WebServices,
                              Functional
                                             Integration             Grid
                              Application
                                                                     Computing
                              Integration




                          1                        6                           11
                                                  Time in Years

                                               Chart 2.0 EAI Evolution Curve

  Time chart of EAI evolution shows that a steady increase in value of EAI
  implementation with time, provided companies kept pace or stayed ahead of
  EAI evolution curve. As seen in the chart 2.0, the present trend is
  unambiguously towards ‘Business Process Management’.

  Given this, it is obvious that EAI has now evolved from an end in itself to the
  technological enabler of business process management. This means that EAI
  has changed from a technology centric initiative to a process centric initiative
  and the stake holders ought to look at EAI as a way of better managing their
  business processes.




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                         THE EAI PARADIGM SHIFT
3. Implications of the new paradigm

   3.1 Business Implications

      •    Management will now have to view EAI as a Business-IT joint
           initiative. This means, business analysts and users will have be
           involved at every step along the way of an EAI initiative.

      •    In order to extract the maximum value out of EAI, management will
           have to be open to the new avenues of opportunities that EAI-BPM
           initiative could potentially open up. Chart 1.0 shows how companies
           that employ EAI to transform the way they do their business reap far
           greater rewards out of EAI than the conventional implementation.

      •    Business and IT would have to redefine and renegotiate new EAI
           service level agreements (SLA).

               o    Business Process level execution SLA instead of application
                   level SLA

               o Context specific information availability

               o Matrix reporting,      exception    handling   and   escalation
                 procedure


   3.2 IT Implications

      •    The need to redefine EAI job roles and responsibilities

               o A successful EAI team will now include personnel who have
                 a blend of technology and business domain skills. This
                 implies, EAI IT consultants will now have to reinvent
                 themselves as technology cum business consultants.

               o This team will now be responsible for business process
                 execution, directly impacting the company’s day-to-day
                 operations.

               o EAI experts will now be responsible for collecting, monitoring
                 and reporting business process execution metrics to
                 management.

               o Help identify and eliminate business process bottlenecks
                 and streamline process improvements.



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                          THE EAI PARADIGM SHIFT

      •     Emergence of dedicated EAI Center of Excellence and Competence
            Centers.

            Enterprises will have the task of bridging the gap between the
            product offerings from EAI vendors and customized EAI-business
            process automation requirements of their companies. These
            companies will soon realize that there is much customization and
            dedicated focus required to tailor the EAI technology solutions to
            meet their business demands. This will lead to the emergence of
            competency centers that continuously analyzes, evaluates and
            improves the integration best practices, bench marking their
            solutions against the best in their industry segments. These
            competency centers will also be entrusted with the task of evaluating
            and recommending new technology solutions to the enterprises’
            various business units in line with the company’s technology road
            map.

      •     The need to redefine and continuously improve EAI best practices in
            the new context .

      •     The need to come up with new metrics to measure the effectiveness
            of the EAI solution.


4. Conclusion

EAI implementation has now matured from applications integration to business
processes / work flow integration. The trend is towards deep routed intelligent
automation and collaborative integration, involving an enterprise’s business
processes. This trend alters the basic fabric of the way EAI has been perceived
to be functioning all these years. Businesses and EAI consultants alike would
have to reinvent and re-skill themselves to the emerging demands of the market
place. The onus is on the leaders to analyze the impacts of this paradigm shift on
their team and prepare their team to emerge as winners in the new EAI world.


5. References and Acknowledgments

Research data in this paper are extracted from various sources listed below on
the Internet and acknowledged

Webinars and presentations from EAI product vendors sites like www.tibco.com
Ruthless Execution by Amir Hartman
Analysts View of EAI by Steve Craggs
EAI Industry Consortium
EAI Journal


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                           THE EAI PARADIGM SHIFT
EAI Symposium

6. Appendix 1.0

A brief description of emerging EAI concepts

SOA (Service Oriented Architecture) – Is an architectural style that is
principled around defining and exposing loosely coupled, normalized and course-
grained business functionality in a manner independent of underlying
implementation of those services

Extended Enterprise – Is a virtual concept of referring to an organization’s
supply chain partners outside a company’s firewall

Business Process Management – Refers to a concept of managing, monitoring
and reporting an organization’s business processes through software tools

Enterprise Service Bus – Refers to an integration engine that is event driven,
supports distributed operation and management, supports content based routing
and transformation and provides a platform for business process automation and
management

Grid Computing – Refers to an ambitious and exciting global effort to develop
an environment in which individual users can access computers, databases and
experimental facilities simply and transparently, without having to consider where
those facilities are located


7. About the Author

Madhavan Krishnan is an EAI consultant with the Es-eEnabling group of Wipro
Technologies. He is currently involved in EAI consulting for a large electric utility
company in the United States. Over the years he has worked with several large
customers in manufacturing and financial services, helping them deploy EAI
solutions. He holds a bachelor’s degree in Electronics and Communications
Engineering from the university of Mysore, India.




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