Transcript SEMINAIRE DE TECHNOLOGIES DE L’INFORMATION ET DE LA COMMUNICATION eBusiness - Introduction

UNIVERSITE
LIBRE DE
BRUXELLES
Solvay Business School
SEMINAIRE DE TECHNOLOGIES
DE L’INFORMATION ET DE
LA COMMUNICATION
GEST 116
eBusiness - Introduction
Pascale Vande Velde
Content of eBusiness course
Technologies de l’information et de
La communication
Introduction – Part I
Introduction – Part II
Payments & security
Supply chain management
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Agenda
Technologies de l’information et de
La communication
Technical enablers
Case 1 : a newspaper site (information)
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
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Technologies de l’information et de
La communication
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A complex topic…
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Technical enablers
Technologies de l’information et de
La communication
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Internet
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Architecture developments
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Linux OS
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Java
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Internet history
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The Internet is a publicly available worldwide system of interconnected computer networks that
transmit data by packet switching using a standardized Internet Protocol (IP)
The core networks forming the internet started out in 1969 as the ARPAnet, created by the US
Department of Defence Advanced Research Projects Agency (ARPA)
The objective of the ARPAnet was to connect different computers and networks designed by
different vendors into a network of networks. The Department of Defence found out that their
computers could not communicate between each other
ARPAnet used a protocol called NCP (Network Control Protocol). ARPAnet moved to the TCP/IP
protocol in 1983
Under ARPAnet several major innovations occurred: email (or electronic mail), the ability to send
simple messages to another person across the network (1971); telnet, a remote connection
service for controlling a computer (1972); and file transfer protocol (FTP), which allows information
to be sent from one computer to another in bulk (1973)
Another important step in the development of the internet was National Science Foundation
building of a university backbone, the NSFnet, in 1986
Internet Protocol software was soon being placed on every type of computer, and universities and
research groups also began using in-house networks known as Local Area Networks or LAN's.
These in-house networks then started using Internet Protocol software so one LAN could connect
with other LAN's
The internet became widly used as from ’90s. In 1989, Tim Berners-Lee created HTML, HTTP, and
the first web pages at CERN. In 1993, Mosaic, the first web browser, was released.
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TCP/IP
Technologies de l’information et de
La communication
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TCP/IP is a protocol making the communication between different networks feasible
TCP/IP is composed of 3 layers :
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Addresses
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IP (Internet Protocol) : responsible for moving packets of data from node to node. IP
forwards each packet based on a four byte destination address (the IP number). The internet
authorities assign ranges of numbers to different organizations. The organizations assign
groups of their numbers to departments. IP operates on gateway machines that move data
from department to organization to region and then around the world
TCP (Transmission Control Protocol) : is responsible for verifying the correct delivery of
data from client to server. Data can be lost in the intermediate network. TCP adds support to
detect errors or lost data and to trigger retransmission until the data is correctly and
completely received
Sockets : is a name given to the package of subroutines that provide access to TCP/IP on
most systems
TCP assigns a unique number to every workstation in the world. This IP number is a four byte
value that, by convention, is expressed by converting each byte into a decimal number (0 to
255) and separating the bytes with a period.
For instance, a workstation as as IP number 130.132.59.234 and all workstations in the
organization have an IP number structured as follows : 130.132.*.*
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TCP/IP (cont’d)
Technologies de l’information et de
La communication
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A end user can install TCP/IP on a personal computer without any knowledge of either
the corporate or the regional network. Three pieces of information are required :
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For instance :
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The IP address assigned to the personal computer
The part of the IP address (the subnet mask) that distinguishes other machines on the same
LAN (messages can be sent to them directly) from machines in other departments or
elsewhere in the world
The IP address of the router machine that connects this LAN to the rest of the world
IP address : 130.132.59.234
Subnet mask : 255.255.255.0
Default router : 130.132.59.1
The subnet mask tells the server that any other machine with an IP address beginning
130.132.59.* is on the same department LAN. All messages sent from a machine
beginning 130.132.59.* will be sent directly to the LAN. All other messages will be sent
to the default router
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HTML/XML
Technologies de l’information et de
La communication
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HTML (HyperText Markup Language), defined in 1991, is a markup language designed for the
creation of web pages and other information viewable in a browser. The focus of HTML is on
presentation (paragraphs, fonts, tables, graphs, etc...)
There are four types of markup elements :
– Structural markup that describes the purpose of text. For example <h1>Golf/h1> will cause
the browser to render “Golf” as a first level heading
– Presentational markup that describes the visual appearance of text, regardless of its function.
For example, <b>boldface</b> will render “boldface” in bold text
– Hypertext markup which links parts of the document to other documents
– Widget elements that create objects such as buttons and lists
There were several versions of HTML (HTML 1.0, 2.0, 3.0, 4.0)
The successor of HTML is XML (eXtensible Markup Language). It was defined in
1998. HTML uses a set of known tags that handle common formatting tasks. XML
allows you to create any tag you want (is thus extensible) and then describe these
tags in a meta language known as DTD (Document type definition).
A common feature of any markup language is that they intermix thet text of a
document with markup instructions in the same datastream or file
XML is also widely use as format for document storage
Example of markup language :
<h1> Anatidae </h1>
<p>
The family <i>Anatidae</i> includes ducks, geese, and swans,
but <em>not</em> the closely-related screamers.
</p>
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Technologies de l’information et de
La communication
Architecture Background
“In the old days, there was no need for technical architectures”
 Actually, vendors brought architecture de facto with the mainframe (e.g. IBM with CICS
and IMS)
 Business was seeking automation of manual processes primarily requesting “standalone”
applications
 There was no PAST – (no legacy systems to integrate)
Today, the IT world is much more complex and diverse
 Solutions are networked / distributed
 We have to deal with the past : legacy integration and legacy maintenance while
developing the future (web, wireless, B2B)
 Architecture has evolved through generations (# tiers)
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Historical Reminder
1-tier architecture (80ies)
Technologies de l’information et de
La communication
Batch
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On-Line MF
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Presentation
Data
Business Logic
Data
Data
Business Logic
Business Logic
Presentation
Business Logic
Presentation
Business Logic
Data
Mainframe
Data
Presentation
Presentation
A mainframe execution architecture is 1-tier : processing is done on the central server.
Issue : No separation of concern between presentation, business logic and data logical layers.
Desktop
Computing
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Historical Reminder
2-tier architecture (early 90ies)
Technologies de l’information et de
La communication
Client/server supports an execution style where processes on different machines communicate
through messages: the « client » makes requests to the server through service interfaces and the
server responds.
Historical push : MS Windows and its Graphical User Interface
Rationale : C/S will reduce IT costs
communication
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Business
Business
Logic
Logic
server
Communication
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Business
Business
Logic
Logic
Data
Presentation
Presentation
Presentation
client
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Technologies de l’information et de
La communication
Historical Reminder
3-tier architecture (late 90ies)
A Netcentric architecture allows to share transactional data and information between users and
applications. Those applications allow « publishing, interacting or transacting ».
Netcentric is nothing else than an evolution of client / server, enabling the connection of
employees, clients and business partners through internet.
Rationale : The web requires a specific front end server to handle thousands to potentially millions
of connections.
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Multi channel platform – technical view
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La communication
Presentation Tier
Channel Management Tier
Cross Channel Applications Tier
External
CRM system
Business intelligence systems
BTS
field
Internet
Page
Business Logic
Bloc 1
Session
Reference data systems
HR/Payroll systems
Invoicing, billing
and collection system
External party
system
Regulatory reporting
system
Information delivery
system
Business Logic
Bloc 3
Intranet
Content
Content
Web
Browser
Marketing
data
Security
Package
Firewall
Client
Services
&
Operations
Data
Users
Integration Layer
App. Server
Firewall
Web
Browser
dynamic
Wireless Browser
(WAP, J2ME)
Business
logic
Business Logic Bloc 2
field
Application Server
Accounting system
Product
Product
Call
Centre
LDAP
Web
Browser
Platform
Product
Voice
Response
Unit
Phone
Voice
Response
Server
CRM
Other
Products
Voice
Voice
Logger
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Technologies de l’information et de
La communication
n-tier architectures aim at solving business
issues
N-tier architectures provide a solution :
Main business drivers are :
– Globalisation of financial markets (mergers &
acquisitions)
– Increased competition
– Changing client expectations
– Spread of technonolgy-enabled
« eBusiness »
To Mid-tier issues because :
– They allow better re-usability of business logic
layer (made from components)
Resulting business needs :
– Capability concentration, IT integration & cost
reductions
– Scalability
– New product types
– Short time-to-market for new product
– Flexibility (IT and salesforce)
– Multi-channel
– High system availability & security
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To Front-end Issues because :
– They provide cross-channel coherence from a
client point of view
– They allow the integration of information
usually spread over multiple systems
– They allow single maintenance of functionality
offered on multiple channels
– They reduce the cost of adding an additional
channel
To Back-end integration issues because :
– They help integrate legacy systems
– They enable B2B integration
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Linux
Technologies de l’information et de
La communication
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Linux is an open and free OS (downloadable from internet). It is mainly used in office
applications, game softwares, mobile phones, video recorders and PDAs. Linux became the
most widespread OS for internet servers. Linux, being free, is also installed on many low
cost computers, a.o. In developing countries.
Linux was developed by a Finner, Linus Torvalds, in 1991 at Helsinki University. Linus
Torvalds is the owner of the Linux trademark. The Linux Mark Institute manages and grants
Linux licences.
Most of the code (71%) was written in C; other parts were written in C++, Lisp, Perl,
Fortran....
Linux is a very secure OS (“virus proof”).
Sales of Linux OS grow steadily. Based on IDC, 25% of all servers and 2,8% of desktops
were running on Linux in 2002.
You need an emulator to run Windows applications without Linux equivalent on Linux.
VMware enables it with more CPU (run a client OS on a host OS).
In the beginning, it was difficult to install Linux on desktops; so Linux adaption was quite
slow. Nowadays, more and more computers can be bought with a Linux OS instead of a
Windows OS. In addition, the installation packs are currently easier to install. They are often
available on CD.
Technical support is provided by Linux suppliers and users groups.
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Linux - Applications
Technologies de l’information et de
La communication
Zona Research “The New Religion: Linux and Open Source” Octobre 2000
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Linux - Applications
Technologies de l’information et de
La communication
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Linux systems are mainly used for back office servers. They are mainly used as
web servers, file servers, print servers, DNS servers, and mail servers etc.
Linux systems focus on these domains for the following reasons:
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They are very reliable and robust
The source code is accessible to fix any problems
Problems can be quickly fixed and are shared with the Community
Linux systems are very similar to Unix systems; it facilitates knowledge transfer
Acquisition costs are limited
Highly secure (“virus proof”)
Most servers suppliers (IBM, HP, Sun, etc….) support Linux on most of their
servers, including mainframes. They categorise Linux as a Tier 1 OS. All main
applications are now Linux portable.
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Java
Technologies de l’information et de
La communication
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Java is an object oriented language developed by James Gosling and Sun
Microsystems colleagues. In the beginning, this language was named Oak
(1991). Java was commercialized in 1994. It is a language derived from C++, but
more intuitive than C++.
Java is independent from the platform on which it runs; therefore its success as
internet application. It has been designed to support network applications :
– The look and feel of a java GUI is independent of the hardware/OS
– A java program can be launched on any OS/Hardware; thanks to a compilor and a
virtual machine (VM) :
• The compilor transforms the java language in a code half way to the machine code
• This code is processed by a virtual machine (program written in native code on the hardware
platform) that translates the java generic code in a code which can be used by the hardware
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Sun created the company JavaSoft, in charge for the design and the distribution
of the java language. The license granted by Sun requests that all
implementations are compatible.
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Java
Technologies de l’information et de
La communication
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Java is not an open source program in spite of requests by several vendors (eg
IBM). There are Java APIs, to integrate a java program in a program
environment. Some companies can influence the APIs design but Sun keeps
ownership and control on APIs.
Security –java program must be reliable and secure since they are used in a
distributed/open environment, thanks to numerous controls upstream and during
the code execution
– The java virtual machine applies a hierarchy of security controls on the machine on
which the java code will be executed
– The java compilor also applies many controls on the source code
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Easy interaction with TCP/IP protocol thanks to a library of routines. It makes the
set up of network connections much easier than with a program written in C++
Frequent use of java :
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Web browsers
Intranet/internet applications
Web user interface (java beans call other programs, eg in C++)
Mobile phones
Smart cards
TV set boxes
Interfacing programs
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Agenda
Technologies de l’information et de
La communication
Technical enablers
Case 1 : a newspaper site (information)
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
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Steps to set up an ebusiness
Technologies de l’information et de
La communication
Define the strategy,
business model
Define products and
services
Define future processes,
functionalities required
Define sourcing
Define technical
architecture
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Business model
Technologies de l’information et de
La communication
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Provide general and financial information to Belgian upper and middle class
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Provide information-based value added services
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Own information sources
Third party information
Revenues model
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Archives
Personalization
Information provided based on
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Daily Belgian and international news
Financial and economic news
Leisure information
Advertising
Subscription to value added services
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Products and services
Technologies de l’information et de
La communication
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Products
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Services
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Belgian news
Financial and economic news
Stock rates (2 minutes delay)
Investment advice
Leisure information
Newsletter
Investors’ guide
Registration
My portfolio
My archives
Call centre
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Possible sourcing
Technologies de l’information et de
La communication
• Manages multi channel
distribution
• Personalization
• Contribution to content
• Location of content
• Workflow (contribution
process)
 Broadvision
 Eportal server
IBM
 Abaxx
 ATG Dynamo
…
Possible solutions :
• A portal solution including a content and
portal functionality
• A portal solution combined with a content
management solution
• Mix of portal, content solutions and custom
development
Customer Relationship Management
Portal
Capabilities
Authorization
Personalization
Customer services
Community
Process Integration
Security
Data extraction
tool
Content
Management
 Vignette
 Documentum
 Interwoven IBM
EAI
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Typical technical architecture
Technologies de l’information et de
La communication
Call Centre/
emails
Via Call
Centre
Operators
• No necessary integration with back end
systems of newspaper company
• Information feeds integrated with content
management tool
• Information extraction can require specific
extraction tools
• CRM tool can be added to portal functionality
Call Centre
Workstation
Information requests
Customer
Firewall
Firewall
Application
Server Portal
DB
Server Portal
Customer
DB
Internet
Web
Server
External Systems
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Application
Server Content
Market Data
Feeds
DB
Server Content
Research
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News
Archives
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Information feeds
Technologies de l’information et de
La communication
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Feeding techniques depend on frequency of updates and volumes of data
Archives
Archives
Batch process, DB replication
several times a day
Market Data
Feeds
Research
News
File sent or automatic interface
Market Data
Feeds
• Depending on frequency of updates
in case of real time information,
back up solutions are necessary
(second direct data transmission
line)
• Push technique : files sent
• Pull technique : connection to
information provider server
Research
File for updates
Files sent
several times a day
News
External Systems
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Agenda
Technologies de l’information et de
La communication
Technical enablers
Case 1 : a newspaper site (information)
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
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Business model
Technologies de l’information et de
La communication
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Provide the bank’s retail clients the functionality to carry out most of their banking
operations
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Provide the bank’s retail clients the functionality to carry out most of their equity and
mutual funds transactions
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Bonds, options, derivatives excluded
Some exotic markets excluded
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Build CRM tools to leverage on client information
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Revenues model
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Deposits
Account management
Loans
Credit cards
Annual fees
Brokerage fees
Advertising
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Products and services
Technologies de l’information et de
La communication
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Consultation
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Management services
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Relationship management (CRM)
Personnalization
…
Product support
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Accounts maintenance (status and operations)
Portfolios maintenance (status and operations)/transaction services
Loan maintenance
Credit cards maintenance
Deposits
Loans
Credit cards
Brokerage
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Front end applications
Technologies de l’information et de
La communication
Integrated Applications
Financial Management Functions
S1
Virtual Financial
Manager (VFM)
VBM Virtual Bank Manager
VCCM Virtual Credit Card Manager
Internet/
VRU
VLM Virtual Loan Manager
VIM Virtual Investment Manager
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• Retail Banking Products and
Services
•
Credit Card Services
•
Loan Balance and Servicing
•
Brokerage Services
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Functional Overview
Technologies de l’information et de
La communication
Delivery Channels
ATM/POS/
CARDS
Network
Back-end Systems
RELATIONSHIP
MANAGEMENT
- New
- Current
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Products,
Services and
Operation
Management
MANAGEMENT
AND CONTROL
Customers
Branch/Call Center
SERVICE
DELIVERY
VBM
VLM
VCCM
VIM
INFORMATION
DELIVERY
S1 Virtual Financial
Manager (VFM)
Adaptive Layer
Internet/
VRU
Front-end Systems
3rd Party Processing:
Securities Processing
Clearing
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Technical Environment
Technologies de l’information et de
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• Internet user works on a local database which is a copy of the bank database (databases are replicated several times a day)
• Database replication necessary
• Real time (front end) versus batch systems (back end)
• Security reasons
• Back end could be outsourced to third party
Back end
Front end
End User
Client
DB Server
CommServer
SSL
9000
H
DB Server
Internal
Network
Internet
Firewall
App Server
Internal
Network
Local
Director
CommServer
Workstation
Bank core system
9000
H
Firewall
9000
H
9000
H
App Server
App Server
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Terminals
Cash Dispensers
and other EMP
Telephone
Banking
App Server
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Technologies de l’information et de
La communication
ADAPTER
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The adaptive layer provides the linkage between
the front-end and back-end systems
•Internet Account Origination - New customer and account information.
•Customer and Account Maintenance - Customer and account additions,
modifications, and deletions.
•Deposit Account - Details of deposit accounts
•Deposit Transaction - Detail listing of deposit account transactions
•Credit Account - Details of credit accounts
•Credit Transaction - Detail listing of credit account transactions
•Credit Card Payment Reconciliation - Performance of credit card account
maintenance, payments and debits
•Loan Account - Detail information of loan balances
•Funds Transfer - Creation, execution of review of funds transfers
•Payee - Maintenance and review of payee list
•Payment - Creation, execution and review of payments transactions and receive
automatic payment requests from payment service.
•Payment Reconciliation - Perform customer and account maintenance
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Integration of front end to back end
Technologies de l’information et de
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SCM
CRM
Trading
Partner
eAI
Lab
System
Vendor
Challenges
SAP
 Most legacy or client/server-based enterprise
applications were not designed to inter-operate
with external applications or browser-based; enduser clients
 Multiple and disparate
eAI means Enterprise Integration
• Applications (custom, legacy, packaged)
• Platforms
 a2a: Integration of back-end systems (SAP R/3<-
• Databases
->Legacy)
• Transaction processors
 a2a: Integration of front-end to back-end
systems (Siebel<-->SAP R/3)
• Data entry points
• Versions of the same data
 Application systems that are built at different
times by different groups operating independently
of each other
 Incompatible business data formats
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Legacy
 b2c: Integration of web applications with frontand back-end systems (self- service, customer
interactions, etc.)
 b2b: Integration of applications across corporate
or organizational boundaries (integration of
business processes among trading partners,
suppliers, distributors, etc.)
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Technologies de l’information et de
La communication
Traditional Integration Architecture
 Traditional middleware solutions facilitate the integration of individual
applications and discrete transactions between them
Point-to-Point Custom Code
Point-to-Point integration with multiple interfacing methods
 Limited reusability
Interfaces were typically built on an as-needed basis and
were not built in a manner that allowed components to be
reused
Siebel
SAP
 Tight coupling of applications
The interfaces were tightly coupled to the applications forcing
changes to an application on one end of the interface to
directly impact the other end of the interface
Legacy
 Invasive integration approach requiring
modifications to source applications
 Change to one application can affect all interfaces
to/from that application
 Limited scalability of architecture across the
enterprise
Internet
People
Soft
 Significant custom coding
 No centralized management or visibility of
information flows and business rules
V.1.0
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eAI Architecture
Technologies de l’information et de
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 eAI solution is a set of technologies that enables the integration of
end-to-end business processes and data (information) across
disparate applications to increase the organization’s ability to respond
and adapt to change by providing the following services: business
process management, application connectivity, translation and
transformation, communication middleware and message routing.
App.
B
Message Brokers
App.
C
App.
A
Message
Broker
Chaining together of discrete transactions in the
form of a business process
App.
D
App.
E
 Hub/Spoke or bus messaging architecture
reduces # of connections
Network Centric
App.
B
 Loose coupling of integrated applications
App.
C
 Prebuilt adapters
 Reusable data/message
transformation/formatting functions
 Near real-time and/or batch integration
App.
A
 Interenterprise connections
App.
D
App.
E
 Central control of multistep business processes
across multiple applications
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eAI evolution
Technologies de l’information et de
La communication
 1980s: Legacy systems
Millions of $
• Departmental focus, but
centralized platform and data
3.000
• Highly fragmented, after-the-fact
view of the business
2.500
Enterprise Application Integration Market
$2.544
$2.073
2.000
$1.564
 1990s: Client/Server, Packaged
Applications, Netcentric
• Enterprise focus
1.500
$1.199
$892
1.000
• Partially integrated, after-the-fact
view of the business
500
• Replaced much of existing IT
investment
$468
$248
0
1998
1999
2000
2001
2002
2003
2004
Source: Gartner Group
 2000+: Enterprise Application Integration (eAI)
• Extended enterprise focus (B2B, B2C, etc.)
• Fully integrated, up-to-the-second visibility and control
of the business
Main uses of eAI
Get new applications into production quickly
38%
• Preservation of existing IT investment
Move information beyond traditional confines
20%
• Integrate packaged, custom, legacy, and web
applications
Expand supplier and customer relationships
18%
Integrate a best-of-breed world
14%
Mergers and acquisitions
10%
• eBusiness and B2B drive IT investments
V.1.0
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eAI components
An eAI solution is composed of the following services:
Business Process
Management
Business process level integration
and management
Application
Connectivity
Prebuilt adapters to packaged
applications, technology and
custom adapter development kits
The Application Connectivity layer provides reusable, non-invasive
connectivity with packaged software (e.g., ERP, third-party best-ofbreed) and custom legacy systems enabled by reliable, eventdriven messaging.
Message and data transformation
and formatting
The Transformation and Formatting layer is responsible for the
conversion of data and message content and syntax to reconcile
the differences between data from multiple heterogeneous systems
and data sources. This layer is responsible for maintaining the
information structure of the messages passed between systems
and their meaning in a format that can be comprehended by
another application.
Communications middleware and
message routing
The Communications Middleware component provides the
architecture that implements various messaging models and route
messages according message content and context. These services
provide the connection among disparate resources, as well as
security, queuing, and the functionality to reconcile network
protocol differences.
Translation and
Formatting
Communications
Middleware
V.1.0
The Business Process Management layer is responsible for the
definition and management of cross-application business
processes across the enterprise and between enterprises. These
services enable the communication not just of data, but also of the
business process context of the data being sent to another
application.
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Inter-enterprise integration
Convergence of eAI and B2B
Suppliers
Customers
 The business case for a new webapplication is greatly enhanced if the new
application can be integrated into an overall
distributed application architecture
 eCommerce
integration
involves
establishing
connectivity
between
an
enterprise’s front-end, web-based sales
engine and its back-office systems
This kind of integration work is primarily intraenterprise
 Inter-enterprise integration is externally
focused and requires that an enterprise’s
systems be connected with those of its
business partners
Internet
Third Party
Employees
CRM
Portal
CRM
Data
Warehouse
eAI
Marketing
Management
Sales
Traditional Partner
Customer
Relations
Vendor
Legacy
Customer
Service
Management
Forwarding/
Transportation
Traditional
Partner
Work Centers
Customer
Inventory
Management
Purchasing
Production
Planning
V.1.0
Order
Management
ERP
SCA
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Warehouses
Returns
Finance Accounts
Receivable
Billing
Plant
Maintenance
Shipping
Finance Accounts
Payable
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Product Segmentation: Integration “Type”
Each vendor initially focused on a specific integration area and has been
expanding their capabilities into the other integration spaces
EDI
Application to
Application (A2A)
Business to
Business (B2B)
Business to
Consumer (B2C)
CrossWorlds
Initial
Offering
Extricity
IBM
Mercator
NEON
Evolved
Capabilities
Tibco
SeeBeyond
Sterling Commerce
Viewlocity
Vitria
webMethods*
*webMethods acquired Active to round-out their B2B-only offering.
Active’s focus was only on A2A.
V.1.0
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eAI Vendors’ Capabilities
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Mapping of eAI vendors’ according to their capabilities
Clients should typically consider
vendors in this area
Challengers
most feature-rich, capable
technologies
Leaders
Market Share
%
14
IBM
12
Ability
To
Execute
Mercator
Microsoft
Tibco
Vitria
Software AG
12
NEON web
Methods
SeeBeyond
BEA
SAGA
GEIS
CrossWorlds
Sopra
Sun
Healthcare.com
Vignette
Sungard
Oracle
Level 8
Fujitsu-Siemens
Viewlocity
Extricity
Sterling Com.
Candle
Eclipsys/MSI
Optio
Sept, 2000
Niche Players
Visionaries
7
5
5
Others
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Completeness of Vision
Source: Gartner Group Strategic Analysis Report, September 2000 – R-11-5113
V.1.0
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Agenda
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Technical enablers
Case 1 : a newspaper site (information)
Case 2 : web banking site (transaction)
Case 3 : life insurance site (servicing)
V.1.0
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Business model
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Universal Level B2B Extranet
 New virtual life insurance company, part of Royal Nederland (Allianz
Group)
 Virtual company concept:
– Very few people working for the entity
– All back offices activities have been outsourced to Accenture
Insurance Services (ACIS): HRM, policy administration, finance,
IT...
– Brokers and banks are representing the distribution network
 Key assets :
– B2B extranet to larger Brokerage organizations
– ACIS is available to other companies for outsourcing of their back
office
– Full STP (Straight-Through processing)
V.1.0
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Services
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Insurance Administration
Financial administration
• Process application
•Debtor management
• Fund alterations
• Acceptance & policy printing
• Creditor management
• Primary process
• Alterations
• In-/Excasso
• Obliged reports:
• Termination
• Consolidation
- Tax
• Prolongation & investment
• Chart of accounts mgt.
- Yearly reports
• Commission calculation
Support
V.1.0
Reporting
- Actuarial reports
General
New Business
• Service management
• Management
• New products
• IT operations
• Human Resources
• New services
• IT applications mgt.
• Office management
• Legal changes
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Technical Architecture
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To speed up the interaction between ACIS and the intermediary parties, internet initiatives are being developed.
In addition to the capability to access workflow management (CIA) and to deliver policy applications
electronically (Policy Express), the brokers are given the opportunity to acquire policy quotations on-line.
Web
Policyholder
Web
CIA
Broker
V.1.0
F
I
R
E
W
A
LL
Client relation
database
Case Management
Reporting
database
Unipas
C/S
Policy
Express
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Interface
Exact
C/S
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Life insurance application process
One of the key process characteristics of the application handling at ACIS, is the fact that standard applications in
compliance with the UL medical criteria can be processed without interference from the UL Medical Acceptance
department. This considerably speeds up the processing procedures.
Case Management
INSURANCE
Applic.
Process
Standard
Acceptance
•Initial check
•Work
Preparation
Follow-up
open items
Process
Checklist
Medical Acc.
Collect
Confirmation
& final docs.
Process
Medical
Acceptance
Requirements
Medical
Acceptance
Report
Renew
Policy
Quotation
Process &
Issue
Policy
Policy
Rejection
Process
Medical
Advice
UL / EXTERNALS
Medical
Examination
Universal Leven
Medical Acceptance
(Royal)
Intermediary
Progress
Notice
Case Management
V.1.0
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Workflow Management
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The Case Management system helps to keep track of the application status application, dealing with the parties involved
in the process. In order to monitor the progress, it produces reports that measure the status against the agreed Service
Level.
C.M.: Application
Applicant Info:
• Client data from
UniPas
Policy Application Status:
• Pipeline
• Passing
• Actual
• Alteration
• Rejected
New Quotation Info:
• Mark-up percentage
• Restrictions
• Date new quotation
• Date client approval
C.M.: Medical Acceptance
Application Milestone Dates:
• Application received
• Progress notice
• Letter of covering
• Mortgage passing
• Last document received
• Issuing policy
• Service Level benchmark
V.1.0
Medical Milestone Dates:
• Medical checklist
• Medical examination
• Authorization
• Medical report
• Medical adviser
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What is Workflow ?
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Workflow can be broken down into 3 concepts:
 Workflow describes how work moves through an organisation, i.e. workflows are an
organisation’s business processes and the rules that drive and control the processes.
 Workflow Automation is the electronic modelling of these business processes, i.e.
mapping process flows and capturing rules and business logic.
 Workflow Management is the ability to maintain and manage work in an operational
environment, i.e. monitor, revise, balance, re-route work.
In summary:
 “The action of electronically modelling business processes so that resources and tasks
can be coordinated, monitored and revised to improve productivity”
V.1.0
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
The Role of Workflow Automation
Definition:
The action of electronically modeling an entire business
process, which can then be coordinated, monitored,
and revised to improve productivity

“Workflow” can be:
•
Routed Paper
•
The Business Flows of Corporation X
A Systems Architecture Component/Service
A Function of a Package Solution (e.g. ERP)
A Workflow Management System
•
•
•

V.1.0
Process Management
Functions
1] Route Building
routes work items to the next required activity
2] Rules Building
provides the intelligence for determining
process paths for a work item, based on the
process state and the outcome of previous
tasks
Functions:
3] Roles Management
defines a user or a workgroup’s
responsibilities and tasks in the process
•
Offer a tool set through which to MODEL entire business
processes
•
Provide
application
services
which
automatically
COORDINATE manual and automated process functions
4] Queue Management
•
Maintain extensive statistics from which to MONITOR process
performance
5] Monitor / Reporting
•
Provide a flexible framework for management to dynamically
REVISE business processes
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provides access and control of work queues
or “in-baskets”
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High Level Rules for Workflow

Workflow Technology is Value Added
when The Enterprise Has:
•
•
•
•

Well defined (modelable) business processes

Static business processes

Few (or consistent) exceptions

Delays occur due to process transfer time

Delays due to business process steps being
separated by physical distance



V.1.0
Automated audit trail
Improved accountability
Exception handling
Faster communication
Faster decision making
Monitors task and process costs
Increased Flexibility
•
•
•
•

Reduced manual effort
Reduced administrative effort
Improved resource utilization
Reduced transfer time between activities
Increased Control
•
•
•
•
•
•

Workers focus on value-adding activities
Directs users to high priority work
Automates routing of work
Concurrent access capabilities
Reduced Costs
•
•
•
•
Tracking or auditing of work in progress is a
priority
…and can result in:
Increased Productivity
Improved information access
Maximize decision making capability at point of decision
Single point of process modification
Dynamic reprioritization and redistribution of work
Powerful Statistics
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Conceptual Workflow Architecture
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Human Resources
Marketing
Order Entry
Customer Services
Human Resources
Marketing
Manufacturing
Finance / Accting
Business
Applications
User Workflow Services
Worklist
Handler
Message
Box
Desktop
Apps.
Process
Review
Order Entry
RDBMS
Application Workflow Services
Process
Initiation
Customer Service
Manufacturing
Order Entry
Manufacturing
Human Resources
Finance / Accting
Customer Service
Finance / Accting
Marketing
Batch
Processes
Asynch
Processes
Process
Initiation
Workflow Process Owner Services
Work Item
Reassignment
Resource
Scheduling
Management
Reporting
Workflow APIs
ILLUSTRATIVE
Workflow Engine
Process Statistics
Database
Event Manager
Workflow Participant Management
Instance
Management
Queue
Management
Alert
Management
Queue
Data
Rule & Route Management
Workflow Procedures Database
Process
Instance
Data
Performance
Support
(Online Help)
Workflow Systems Administration
Process
Mapping
V.1.0
Resource
Maintenance
Process Rule
Maintenance
Process
Definitions
Activity
Definitions
Rule
Definitions
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Milestone
Definitions
Resource
Definitions
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What components make up a Workflow Solution?
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Workflow solutions are made up of several basic components necessary to design, build and execute
workflow management systems:
1. Process Design Methodology
–
–
a workflow system should be designed with the process flow as the focal-point
typically, an organisation would use their own standards/methodology
2. Process Mapping Tool
–
–
draws a map representing process flows
vendors typically offer a graphical mapping tool to “visualise” the process flow
3. Rules Builder
–
–
defines routing procedures, security, priority, alert notifications, etc.
usually integrated with the process mapping tool
4. Workflow Engine
•
•
•
manages the process flow between client applications, server applications, users, data stores.
moves work items along the process maps
central point of coordination and management
5. Workflow Administrator Utility
–
V.1.0
run-time component which gathers workflow statistics and generates reports, e.g. processing
times, queue volumes, workgroup volumes, alert notifications etc..
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