Analyzing the needs of creating a SAP PI platform in Sweden Department of Computer and Systems Sciences, Stockholm Univers University ity & Royall Institute of Technology Roya Alper Celik
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Agenda
Thesis de description Background Method Why an integration platform? Tools and Frameworks Introduction Introductio n to SAP PI (XI) (X I) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Agenda
Thesis de description Background Method Why an integration platform? Tools and Frameworks Introduction Introductio n to SAP PI (XI) (X I) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Thesis The sis des descri cripti ption on
1- Creat Create e a list of of stakeho stakeholder lders s 2- Defin Define e their their business business and and technolo technology gy requirements 3-Prep 3-Pr epar are e a fin final al dec decis isio ion n pr prop opos osal al ba base sed d on on thi this s research work if Vattenfa attenfallll Sweden Sweden should use SAP PI as their main m ain integration integration platform or not.
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction Introductio n to SAP PI (XI) (X I) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Unbundling and Future Nordic Energy Market
´Unbundling´ ´Unbundli ng´ : Seperation of sales and distribution data ´Nordic Energy Market Consolidation´ : They will need more integration
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Problem Background
MS BizTalk
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Vs
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SAP PI
Vattenfall AB Background
Europe¶s fifth largest generator of electricity Europe¶s largest producer of heat Operates in Sweden, Denmark, Finland, Germany and Poland
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Method
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Why
an integration platform? (1)
Information sharing Supporting the systems that were not designed to work together Accomodate various data types that may be dissimilar or incompatible
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Why
an integration platform? (2)
N*(N-1)/2 physical connection N*(N-1) new interfaces
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Why
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an integration platform? (3)
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Why
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an integration platform? (3)
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Tools and Frameworks: Technology Adoption Life Cycle
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Introduction to SAP PI PI is the central communication point for all NetWeaver components
SAP SAP
SAP
Open XML based standards are used for integration
SAP
PI is part of the SAP Services Oriented Architecture (SOA)
ERPSystem Business Partner
SAP delivers pre-configured content
Thirdparty
Business Partner
Marktplace (Internet)
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Functional Covarage Comparison
SAP
Microsoft
Integration Platform
NetWeaver
.Net and Microsoft Server Products
Process Integration
SAP PI
MS BizTalk
NetWeaver Portal
MS Sharepoint
Web Application Server
MS .Net, Indigo
Enterprise Service Oriented Architecture (eSOA)
SOA on Basis of .NET and
Portal Solution Application Server SOA Architecture paradigm
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BizTalk
Introduction to SAP PI (XI)
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Introduction to BizTalk
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Market Share Comparison
Available in market for: Total number of active users: Biggest customer segment:
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SAP PI
MS BizTalk
7 years
10 years
2000
8500
99% SAP customers
SAP, Oracle, Microsoft Dynamics, SSA Global Technologies and so on
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Licenses Fees
SAP PI Base Engine is priced based on the overall processed message volume expressed in Gigabytes (GB) per month. SAP PI is free to use between SAP-to-SAP. MS BizTalk Server is priced based on the server capacity. It has four different version; Enterprise, Standard, Branch, and Developer
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Pop-Up Quiz
What
is the percentage of average ERP project budget spent on integration?
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Pop-Up Quiz
35-40 % of average ERP project budget is spent on integration (Gartner, AMR)
Source: 'Cutting Implementation Costs by Application Integration', Gartner, February 2002
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Agenda
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Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Analysis and Results
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Analysis and Results
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SWOT Analysis for SAP PI Helpful
Harmful
Strengths
Weaknesses
Management Support Large SAP Installations at Vattenfall
Human Competence
Opportunities
Threats
SAP¶s eSOA strategy and PI Large and growing customer base
Expensive Consultants Unclear roadmap
Internal
External
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Highly optimized for SAP environment
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SWOT Analysis for BizTalk Helpful
Harmful
Strengths
Weaknesses
Human Competence Internal Experience
Not optimized for SAP
Opportunities
Threats
Growing Customer Base Availability of Knowledge and Experience
Expensive Consultants High License Fees
Internal
External
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In the future Vattenfall might be even more interested in SAP
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Analysis and Results Results of Stakeholders Meetings and Analysis
Insufficient human competence in SAP PI within and outside Vattenfall An unclear roadmap of the development of SAP PI
The maturity of MS BizTalk
A potential vendor lock-in situation with SAP
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1- Human Competence Enough competence in MS BizTalk No competence in SAP PI
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SAP PI
MS BizTalk
0
1
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2- Product Roadmap (1) Clear MS BizTalk Product road map Unclear SAP PI product roadmap
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SAP PI
MS BizTalk
0
2
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2- Product Roadmap (2) New Business Enabling Solution Technology
Year Customer Need 1972 Real-time integrated business processes, lower TCO
R/1, R/2
ABAP (Mainframe architecture)
1992 Scalable integrated business processes, lower TCO
SAP R/3, SAP APO, SAP BW
R/3 Basis (3-tier
1999 Heterogeneous business processes, lower TCO
mySAP.com, mySAP EP, SAP XI
mySAP Technology
SAP xApps
SAP NetWeaver
2003 Packaged composite business processes, lower TCO
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Client/Server architecture)
(Internet architecture)
(Enterprise Services Architecture)
2- Product Roadmap (3) 1- PI will be 100% Java based product 2- SAP PI will be distributed architecture based product instead of hub and spoke architecture
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3- Maturity of BizTalk and SAP PI (1)
Operational Excellence
Customer Intimacy Product Leadership
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3- Maturity of BizTalk and SAP PI (2)
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3- Maturity of BizTalk and SAP PI (3)
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3- Maturity of BizTalk and SAP PI (4)
Available in market for: Total number of active users: Biggest customer segment:
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SAP PI
MS BizTalk
7 years
10 years
2000
8500
99% SAP customers
SAP, Oracle, Microsoft Dynamics, SSA Global Technologies and so on
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3- Maturity of BizTalk and SAP PI (5)
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SAP PI
MS BizTalk
0
3
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4- Vendor lock-in situation with SAP Vattenfall is already an SAP depended company Higher switching costs in the future (Higher TCO)
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SAP PI
MS BizTalk
0
4
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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SAP PI Best-Practices
1- midsize SAP clients: mySAP-centric organizations that hadn't selected a strategic integration platform tend to adopt XI as their primary integration platform. 2- large SAP clients: In the past, many of them selected an integration platform, but they're also aware that PI (XI) will be a necessary component of the SAP infrastructure for ESA. Therefore, they recognize that it's important to "understand" the product, so now they're introducing XI alongside their established integration platforms.
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Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Final Decision Proposal (1) Use BizTalk for B2B and SAP-to-nonSAP
Use SAP PI for SAP-to-SAP Build Competence Have Experience
Make benchmarking within 1-2 years for one common integration platform
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Final Decision Proposal (2) SAP SAP
SAP Other Systems
SAP Other Systems
SAP PI BizTalk
Business Partner
Firewall
Business Partner
Marktplace (Internet)
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Thirdparty
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Final Decision Proposal (3)
SAP PI
SAP
2009- 2010
Non SAP
SAP
PI
PI
Non SAP
Non SAP
2010
2011
SAP PI Adoption Road Map for Vattenfall Sweden
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Scenario 1 PI crosses the chasm SAP improves the product quality and not just focusus on SAP integration.
Final Decision Proposal (4) Scenario 2 SAP PI
SAP
Non SAP
SAP BizTalk
Non SAP
PI can not cross the chasm
BizTalk
Non SAP
2009- 2010
SAP PI Adoption Road Map for Vattenfall Sweden
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SAP PI primarily directed towards SAP integration
Agenda
Thesis description Background Method Why an integration platform? Tools and Frameworks Introduction to SAP PI (XI) and BizTalk Analysis and Results SAP PI Best-Practices Final Decision Proposal Summary
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Summary
The European energy market is currently subject to the political regulations of ´Unbundling´ and ´Nordic Energy Market Consolidation´ which require the physical division of sales and distribution systems while on the sam e time increase the need for systems integration. Vattenfall is an agile company with a heterogenous systems environment where systems integration is a vital competence. Choice of integration platform is a strategic decision and two options are currently viable: MS BizTalk and SAP PI. A qualitative study has been conducted to aid Vattenfall in taking this decision. Vattenfall has to use SAP PI for integration between SAP instances. H owever, it is suggested that Vattenfall continues to use MS BizTalk as the prim ary integration engine during the next 1-2 years due to: i. ii. iii. iv.
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unsufficient human competence in SAP PI within and outside Vattenfall an unclear roadmap of the development of SAP PI the maturity of MS BizTalk a potential vendor lock-in situation with SAP
During the next 1-2 years Vattenfall should carefully monitor the development of SAP PI and the competence building around this product. If SAP PI becomes more mature, more widely used in the market and has a more clear vendor product strategy Vattenfall might use PI even for NonSAP-to-NonSAP scenarios.
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