AMSSXP

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Enterprise Application Integration (EAI)
Creating Value From Business Process
Integration NameTitleDepartment
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Agenda

• What is business process integration?
• The business environment and common integration
  scenarios
• Case studies increasing business agility by
  improving enterprise application integration
• The Microsoft enterprise application integration
  solution explored

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What Is Business Process Integration?
Business Process Integration, or EAI, is a
software solution that allows businesses to
integrate internal applications, securely connect
with business partners over the Internet, and
automate business processes.
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Creating Competitive Advantage

• Get ahead of competitors by ensuring youre using
  all of your data to make smarter decisions,
  faster
• AMR Research estimates that less than 10 of
  enterprise processes are integrated in a dynamic
  framework that allows a company to respond to
  changes in market conditions
• AMR Research The Report on Enabling
  Technologies April 2001
• Without BPI a business faces
• Lost revenue opportunities
• Increased cost of doing business
• Competitive disadvantage

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The Ideal Enterprise
ConnectedCustomers
IntegratedPartners
EmpoweredEmployees

• Web Presence
• Marketing
• Commerce
• Customer Service/CRM

• Buy-Side Commerce
• Sell-Side Commerce
• Marketplace Infrastructure
• Supply Chain Mgmt

• Desktop Productivity,Collaboration
• Employee Portals
• Business Intelligence
• Mobile Solutions

IT Infrastructure Common Application
ServicesCommon Data Model
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Key Business Processes Drive Competitive
Advantage and Shareholder Value
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Business Imperatives
To build and maintain business value, an
organization must respond to todays business
imperatives

• Reduce process cycle times
• Make better decisions faster
• Leverage dynamic business relationships
• Quickly respond to customer demands
• Effectively respond to competitive threats

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Basic Enterprise Environment
Typical Enterprise
Business Partners
Custom Business Applications
Inventory/Logistics
Security Firewall
EDI
Financial Systems
XML
xCBL
Customer Relationship Management
Enterprise Resource Planning
EAI
B2B
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Business Drivers for EAI

• Automated business processes
• Conformity to business process structures
• Transaction-focused orders
• One-time data entry
• Real-time, automatic response
• Centralized business rules
• Protection of information

Source EAI Journal August 2001
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Business Drivers for B2B

• Automated touch points between partners business
  processes
• Conformity to partners organizational and
  business process structures
• Document-focused business transaction (e.g.,
  purchase order)
• No data entry
• Fast, reasonable response
• Notification only when something doesnt work
• Protection of information

Source EAI Journal August 2001
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Integration Increases Agility
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Rapidly Improve Business Processes

• Easily automate complex business processes
• Quickly design, automate and deploy business
  processes
• Automate workflow
• Document business process steps and routines
• Manage and monitor business processes
• Quickly react to problems before they affect
  bottom line
• Capitalize on more efficient supply chain

Return On Processes
Return On Customer Centricity
Return On People
Since we began using BizTalk Server last summer,
we have trimmed 80 off the time we used to spend
manually processing orders with one of our
largest customers. David Quarles, VP
Linear Technologies
Return On IT
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The Challenge

• Organization
• 100 billion manufacturing organization
• 120 plants and 150 logistics carriers
• 10,000 key suppliers of all sizes

• Business challenges
• High operational costs of manual business
  processes
• Excessive manufacturing and inventory costs from
  parts supply challenges
• Inability to quickly and easily establish new
  business relationships over the Internet
• Inability to quickly react to competitive issues
  due to inflexible systems

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The Results
Operation costs down
Integration costs down
Revenue opportunities up
Reduced operational costs by automating
traditional manual processes with small suppliers
Reduced integration costs based on ease of use
Expanded opportunities with key partners through
faster integration over the Internet
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Customer Feedback
These real-time collaborative applications will
provide Ford Motor Company an opportunity to
streamline communications both internally and
externally with our partners, customers,
dealers,  and suppliers.  This seamless
communication capability will enable Ford to
convert data into knowledge, allowing us to
integrate our entire value chain to deliver the
right products and services to our customers at
the right time. Frank Taylor VP Materials
Planning and Logistics
We believe Microsoft brings some unique
solutions to the challenges we face. We need a
strong partner in this space who understands the
importance of linking the entire enterprise and
capitalizing on the use of the Internet with
flexible communication tools." Marv Adams CIO
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Improving Focus on Customers

• Build stronger, more valuable customer
  relationships
• Deliver more responsive service, accurate answers
• Enable flawless customer interaction
• Increase revenue opportunities
• Create new channels of business opportunity
• Maximize business agility to quickly respond to
  competitive threats

Return On Processes
Return On Customer Centricity
Return On People
We used BizTalk Server to automate our customer
ordering process, integrating our ERP,
warehousing, and logistics systems with a
web-based commerce application. Customers now
place, track and change their orders online,
cutting our order processing costs by 90."
Lars Andreason, IT Manager Svenska Foder
Return On IT
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The Challenge

• Organization
• 29 billion, 300,000 employee manufacturing
  organization
• Many distributed divisions, started with Tyco
  Valve, North American manufacturing sub

• Business Challenges
• Inability to capitalize on revenue opportunities
  of international markets
• High order costs (300 per order) based on manual
  processes resulting in order entry errors,
  assembly and shipment errors, buy-backs
• Declining customer satisfaction levels due to
  manual and process errors

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The Results
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Customer Feedback
We have opened new international markets at very
little cost and have reduced our cost of sales
and in turn freed up cash flow. We anticipate
saving 1 - about 300 million of our total
revenue in direct operational expenses over the
next 3 years by implementing these solutions
across multiple business units. L. Dennis
KozlowskiCEO, Tyco International Utilizing an
industry standard approach of Plan-Design-Implemen
t-Manage and Support, we were able to implement
baseline functionality and achieve an initial
return-on-investment within 3 months after
implementation. Jeff LynchDevelopment Manager,
Tyco Flow and Controls
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Maximizing Productivity

• Simplify tasks
• One-time data entry
• Speed decision-making
• Enable more effective access to current
  information
• Inventory and logistics tracking
• Customer order management
• Resource planning
• Capitalize on existing skill sets

Return On Processes
Return On Customer Centricity
Return On People
Return On IT
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The Challenge Clear Channel

• Organization
• 5 billion international media organization,
  have grown 100 per year for last 3 years
• 1200 radio stations, 20 TV stations, billboards
• Diverse mix of systems through acquisitions

• Business Challenges
• Manual, time consuming process of aggregating
  data from disparate, distributed systems
• Substantial cost of selling advertising space to
  distributed customers
• Lost revenue based on inability to centrally
  approach and manage corporate customers
• Inability to quickly leverage acquisition value

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The Results Clear Channel

• Solution
• Microsoft .NET Enterprise Servers including
  BizTalk Server for EAI infrastructure
• Detailed advertising inventory data transformed
  and combined in centralized data store
• Web-based access to consolidated advertising
  inventory to drive customer sales

• Benefits
• Lower cost of sales based on consolidated,
  Web-based information access
• New revenue opportunities from ability to manage
  corporate assets centrally
• Greater customer satisfaction through simpler and
  more responsive account management

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Customer Feedback Clear Channel
BizTalk Server was the only solution that we
could easily adapt to meet our evolving business
needs. All the others that we evaluated, such as
webMethods and Tibco, required adapting our
business to the product. The BizTalk Server
technologies were very familiar, intuitive, and
easy for our technical personnel to learn,
allowing us to quickly and easily apply them to
solving our integration challenges. Steve
Solomon, Manager, New Technologies
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Capitalizing On IT Investments

• EAI supports key business activities including
  B2B and Supply Chain integration
• Integrate business processes running on virtually
  any application or technology
• To capitalize on BPI you must overcome
• Heterogeneous systems
• Legacy applications
• Isolated islands of data

Return On Processes
Return On Customer Centricity
Return On People
Were totally focused on our product and dont
have the resources to purchase lots of expensive
EAI and B2B solutions. Were using BizTalk Server
because it combines all of that functionality in
a product we can afford. It is going to make true
e-commerce affordable not just to the largest
companies, but to everyone. Susan McKay, VP
Aircast
Return On IT
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The Challenge UK Government

• Organization
• Government for GL-8 country
• 200 major government departments, 482 local
  government authorities
• Huge diversity of applications and technologies

• Business Challenges
• Create online portal for all government services
  to 3 mill businesses and 60 mill citizens
• Had to guarantee security and reliability of all
  interactions with government
• Massive interface and transaction volume
• Political history of time and budget overruns

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The Results UK Government

• Solution
• Microsoft .NET Enterprise Servers including
  BizTalk Server for EAI infrastructure
• Online service for obtaining digital certificates
• Online gateway to broker integration between all
  departments, businesses, and citizens

• Benefits
• Higher constituent satisfaction through
  accessibility of services and benefits online
• First government integration project in history
  to be delivered on time, on budget
• Lowered costs through flexible centralized
  service for all integration activity
• Increased flexibility to handle future diverse
  needs

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Customer Feedback UK Government
Making UK Online happen was an enormous
task...there were multiple projects within that,
of which the Gateway was probably the most
difficult technically to do.... The stakes
were enormous...we were making commitments
directly to the Prime Minister...we had to find a
team who would work with us that we could be
confident would deliver...and we did. Its
gone great. The project went live when we said
it would go live we hit our target, and we hit
our budget Andrew Pender, Electronic Envoy UK
Government
It had to be right the first time...it was
absolutely fundamental to our e-Government
vision...every challenge we have come across has
been solved. In the time that we have built
it, people would still have been doing
feasibility studies. Alan Mather, Project
Manager, UK Online
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BizTalk Server As An EAI PlatformScalable,
Reliable Internal Integration Backbone
Reduced business operations costs
Lower cost of application integration
BizTalk Server
Better Business Decisions Through Unified Data
Greater business responsiveness through
real-time data access
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BizTalk Server as a B2B PlatformSecure, Reliable
External Integration Gateway
BizTalk Server
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Complete Integration

• Cost effectively integrate applications within
  and between organizations
• EAILower the cost of internal application
  integration
• B2BQuickly implement secure, reliable trading
  partner relationships over the Internet
• Business Process AutomationDefine and implement
  integrated business processes using EAI and B2B
  services

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Supported Business Applications
Ariba
Clarus
Commerce One
Cove Systems
Eqos
FrontStep
Great Plains
J.D. Edwards
Kewill
Manhattan Associates
Mapics
McHugh
Mega
Microsoft Office XP
Navision
Onyx
Oracle
Partner Community
Peachtree
PeopleSoft
Peregrine
Pivotal
QAD
Quickbooks
Remedy
SAP
Scala Business Systems
ServiceSwitch
Siebel
Slam Dunk Networks
Staffware
Trade Power
Ultimus
VerticalNet
Visibility
Worldtrak
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