the internet of service · service architectures semantic technologies web2.0 application...

SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS

The Internet of ServiceCEC Dresden

Dr. Jorge Cardoso, SAP Research

© SAP 2007 /

Internet of Services

1. SAP Research @ CEC Dresden2. The Rise of Services3. Internet of Services4. Service Engineering5. Theseus/Texo

Agenda

© SAP 2007 / © SAP 2007 / Standard Presentation / Page 3

SAP Research Global Network

Pretoria Brisbane

Palo Alto

Montréal

ShanghaiSophia Antipolis

WalldorfKarlsruhe

Dresden

Belfast

St.Gallen

Darmstadt

Campus-based Engineering CentersSAP Labs-based Research Centers

Zurich

© SAP 2007 /

Research Programs(Technology Research)

Research @ SAP Dresden

Data Management& Analytics

SoftwareEngineering

&Architecture

(Service Engineering)

SemanticTechnologies

&Applications

Smart Items

Research Fields(Application Research)

Future Manufacturing Unified Product Content Mgmt

© SAP 2007 /

SAP in Manufacturing World market leader with about 45% market shareSAP Manufacturing Solution (Planning, Execution, Quality & Maintenance Management)SAP Manufacturing Integration and Intelligence

Trends (IDC and AMR Research)PLM market will grow at a 9.7% through 2011Collaborative Product Design

19% PLM license share and 17% growth rate in 2006Collaborative decision environments

The next big IT investment area in PLMCollaborative decision-making among the top 10 predictions for Product Lifecycle Management in 2008Ontologies and semantics: The next hot topic for decision environments

Customer Needs Management (CNM) Fastest growing segment of PLM: 14% five-year

Research Field Future ManufacturingMotivation

© SAP 2007 /

Data Management & Analytics

Data analysisUnstructured infor-mation management

Data integrationHolistic datamanagement

Distributed file systems (transfer project with NetWeaver)Active Information Store (with Palo Alto)Corporate data quality (with St. Gallen)

Semi-automatic data migrationSemi-automatic message mappingOntology matchingMatching frame-work in NetWeaver

Text mining (with Business Objects) Entity centric infor-mation mana-gementData fusionUse Case for SAP Marketplace with SAP KPS

High-performance event correlationVisual analytics (with Business Objects)BI over unstructured data (Article in DB Spektrum)

Purchasing

Catalog Author-

ingCatalog Publish

ing

Catalog Author-

ingCatalog Publish

ing

IntegBiz.

Plan-ning Finan.

Accoun-ting

CRM

SRM

SCM

PRO

FIN

HCM

Expense &

Reimb.

Pay-ment

Due Item

Mgmt

Profitability

Analys.Expense &

Reimb.

Pay-ment

Due Item

Mgmt

Profitability

Analys.

Project Mgmt

Requisi-tioning

Suppl. Invoi-cingRFQ

Proces-sing

Requisi-tioning

Suppl. Invoi-cingRFQ

Proces-sing

Logistics ExecutionLogistics Execution

Cust. Invoic-

ing

Presales, Sales & Services

Supply Chain

Control

Supply Chain

Control

PersonTime Mgmt

Com-pen-

sation

Person.Admin

© SAP 2007 /

Software Engineering & Architecture

Model-Driven Business Application EngineeringModel-driven developmentAspect-oriented modelingModel transformations and viewsSoftware product lines

Service EngineeringPlanning, designing, developing and evolving service based applicationsEnabler for Service EcosystemsUser Interfaces for services

Adaptive ApplicationsMulti-modal user interface developmentContext-aware applications

© SAP 2007 /



Agenda

© SAP 2007 /

From Enterprise SOA toThe Internet of Services

Enterprise SOA 2.0External value networks…

include customers, suppliers, partners, and consumers

Enterprise SOA

Internal value networks…focus on key activities, processes

and relationships

Business Web

COMPOSED ENTERPRISE SERVICESTASK-ORIENTED SERVICES

CancelOrder

© SAP 2007 /

Trends in Globalization of Services

*[Gartner, IDC, Aberdeen]

Business

Service outsourcing – $1 billion per year per F1000 company on third party services*

Globalization of supply/demand biggest trend in service industries

SaaS growth outpacing expectations*:$6.3b in ’06$19.3b in ‘11

© SAP 2007 / Page 10 AB

© SAP 2007 / © SAP 2007 / Page 11

Trends in Globalization of Services(cont’d)

© SAP 2007 / Page 11

DirectGov.uk (UKOnline)USA.gov (FirstGov)Singapore TradeExchange

Commercial Ventures

Theseus - German Lighthouse Project (German Govt funded, €250m)Smart Services Research Centre (Australian Govt funded, €60m)Internet of Services research field – SAP Research EU FP7 service research projects (EU funded, SAP budget €35.5m)Service Research and Innovation Initiative (founded by IBM)

Research endeavours

AB

© SAP 2007 /

19911991 20052005

Trend: “Tertiarisation”Growth through services

Finance, Leasing and Business

Service Provider23,3%

Commerce, Hotel and Restaurant Industry

and Transport Sector17,9%

Building Sector6%

Industry (without Building Sector)

30,6% Agriculture and Forestry, Fishery1,4%

Public and Private Service

Provider20,8%

Finance, Leasing and Business Service

Provider29,1%

Commerce, Hotel and Restaurant Industry

and Transport Sector18,0%

Building Sector3,9%

Industry (without Building Sector)

25,8% Agriculture and Forestry, Fishery

0,9%

Public and Private Service

Provider22,3%

Source: Statistisches Bundesamt, 2006

62,0% 69,4%

Gross Value Added in Germany

© SAP 2007 /

Trend: Growing international tradeGerman backlog for services

Services trade balance 2003-2005 (Exports minus imports in bn US-Dollar)

USA

GroßbritannienSpanien

Türkei

Frankreich

GrienchelandIndien

Portugal

ÖsterreichItalien

PolenSüdafrika

Mexiko

Luxemburg

NeuseelandUngarn

Slowakei

ÖsterreichIsland

Sloweniaen

TschechienSchweiz

Finnland

Dänemark

Bulgarien

SchwedenKenia

Niederlande

BrasiilienIrland

Kanada

NorwegenJapan

ChinaGUS

Germany

World trade balance 2005 (Exports minus imports in bn US-Dollar)200180120

1840

0-40-80

-120-160

204

-828

GermanyJapan

GUSIrland

Kanada

NorwegenKores

ChinaBrasilien

MexikoSüdafrika

ItalienIsland

UngarnSlowakei

Neuseeland

Tschechien

ÖsterreichPolen

DänemarkFinnland

ÖsterreichBelgien

Niederlande

Portugal

Schweden

FrankreichTürkei

Luxemburg

GrienchelandSchweiz

Spanien

EurozoneUSA

Großbritannien

60

40

20

0

-20

-40

-60

Quelle: OECD Factbook 2007© SAP 2007 / Page 13

© SAP 2007 /

Trend: TertiarisationEmployment through services

1991(Total: 38,6 m)

1995 2000 2005(Total: 38,8 m)

Industrywithout Building Sector

Services

5 m

10 m

15 m

20 m

25 m

30 m

Building Sector

59,5%(23,0 m)

Agriculture and Forestry, Fishery7,3%3,9%

5,5%2,2%

29,3%(11,3 m)

71,9%(27,9 m)

20,3%(7,9 m)

Employees in Germany

+4,9 m

-3,4 m

© SAP 2007 / © SAP 2007 / Page 15

Business Network Transformation

Business/Consumer Web

1990s 2000s 2012

Internal Process Pipelines

Towards Lean and Agile Business Processes of the Future!

2007

B2B ChainsCollaborative

Networks

© SAP 2007 / Page 15 AB

© SAP 2007 / © SAP 2007 / Page 16

Business Network Transformation

BUSINESS WEB

HARD-WIRED VALUE CHAIN

1990s 2000s 2010s

Towards Flexible and Lean Business Processes of the Future!

The End-Customer moves to the

Centerof the Network!

AB

© SAP 2007 /

ConvergencePhysical products and services

From product … … to solutions

Drilling machine

Softwareas a Service

Software-CD

Drilling holes

NavigationMobile

© SAP 2007 / Page 17

© SAP 2007 /

Service Aspects Exporting Goods in Foreign Trade

Foreign trade processing is a complex serviceFor SMEs, foreign trade processing is NOT a core competenceA reliable value-added service provider coordinates the process on behalf of the seller

Bank

Insurance

CustomsLogisticsProvider

OceanCarrier Carrier

Abwicklung des Exports durch den Verkäufer

AKAHermes

Bank

Insurance

CustomsLogisticsProvider

OceanCarrier Carrier

Abwicklung des Exports durch einen Mehrwertdienstleister

Foreign Trade:value-added

service

AKAHermes

Seller Buyer

OrderShipment

Payment Seller Buyer

OrderShipment

Payment

© SAP 2007 /



Agenda

© SAP 2007 /

A New Phenomenon EmergesInternet of Services Vision

€

€

€

€

A worldwide, trusted Service Ecosystem of

Service Providers, Consumers and Brokers

buying, selling, repurposing and composing services for different needs

- resulting in -

A new way of organizing the interaction between

partner ecosystem & customer base

Map data

Consumers &Citizens

Industry

Government

Services in a connected world

Compute

Open Plattform

Market Research

Census data

© SAP 2007 /

DefinitionBusiness Webs are…

“ … collaborative social networks among enterprises, public organizations and individuals in order to

achieve a common set of goals enabled through the Internet of Services.

SAP Research 2006

Business Web

… characterized by:

∗ utilize Internet of Services via Enterprise SOA.

∗ deliver value-added services composed ofindividual services provided by the members of the Business Web.

∗ flexible and dynamic business modelimplementation and transformation.

∗ flexible membership of business partners basedon mediation and brokering of their provided services forming a service ecosystem.

© SAP 2007 /

The Big Picture: Vision of theInternet of Services

Open Platform for Networks

Semantic Technologies – Interoperability – Web 2.0


BUSINESS & SCIENCECluster/SME, new Service and

Business Models

CITIZEN/CONSUMER/EMPLOYEE

„Digital Lifestyle“, New Media, Communities, Collaboration

GOVERNMENT & INFRASTRUCTUREeGovernment, eEnergy, eHealth, Public Security

INTERNET of THINGS

MULTIMEDIACONTENT

SERVICE-ORIENTED SOFTWARE

APPLICATIONS

RR

© SAP 2007 /

Technical Aspects

OverviewHigh-level Building Blocks

Service Architectures

Semantic Technologies Web2.0

application (de)composition

rich servicedescriptions

informationmash-up

Business Services

ServiceDiscovery

InformationIntegration

Business Aspects

Attractiveness BusinessValue

networkeffects

business collaboration

Innovation BusinessModels

Business Web

Business Web

Business Web

Business Web


© SAP 2007 / Page 23

© SAP 2007 /

Value-added Services:Evaluation of a Retail Location

Multiple service providersCompose & enrich existing services into a value added service

Requirement: Infrastructure to compose, deliver and bill services

Service Delivery Platform

© SAP 2007 / Page 24

Map data

Census data Market Research

External Service Providers

Value-added Service Provider

Theseus / Texo

Web

Ser

vice

s

e

Serv

ices

Busi

ness

Mod

el

Bus

ines

s P

roce

ss

Tech

nica

l Pro

cess

Info

rmat

ion

Syst

em

Evaluation of a Retail Location

© SAP 2007 /



Agenda

© SAP 2007 /

A model is an abstractionA model only focus on certain aspects

A model is created to describe a phenomena

A Service

Mental model

Model

Services and Models

© SAP 2007 /

TXT, VISIO, PPT description of services

Formal definition of functional/

non-functional requirements

(semantic) Interface, message,

format,data, etc

SAWSDL, WSDL, SOAP, WS-Policy,

XML Schema, XML, WSMO, etc

WP7/WP10

Scope Model{contextual}

Business Model{conceptual}

Logical Model{system}

Technical Model{physical}

Runtime{operational}

TXT, VISIO, PPT description

of the workflow

Formal definition of functional/

non-functional, BPMN

BPMN+

WS-Policy, WS-CDL, WS-CI,

BPEL

WP7/WP10

Service Workflow


of data assets

Interrelations between semantic

data assets

Semantic data model

OWL, RDFS,XML Schema,

XML

WP7/WP10

Data


of organizational units

Organizational chart

Interaction between people and

service/processes

GUI between people and

services/processes. Security model

WS-policy

WP7/WP10

People

TXT, VISIO, PPT Goals and strategy

Business plan(rules and constraints)

Business rule model

RuleML, SWRL

WP7/WP10

Rules

ISE Methodology

ISE MethodologyBody of Methods

Requirements Design Implementation

Method =Technique and Process

A sequence of actions

leading to some result

A Method produces

models

A specific constructsupporting a

method

Examples: spiral modelwaterfall model

throwaway prototyping model

reusable software model evolutionary prototyping

modelUnderlying concepts (paradigm)E.g. service-oriented development

Preparation Market Market LunchDefinition

Confidential

© SAP 2007 /

Model-driven Service Engineering

Conceptual Perspective of ISE

Logical Perspective of ISE

Technical Perspective of ISE

Business Perspective of ISEThe strategic view on Business Services

Model-based Integration

ISE Software Workbench

© SAP 2007 /

ISE Workbench Model-driven Service Engineering

News ‐ 22.04.2008 alpha d6.3.1 available internally

Confidential

© SAP 2007 /

Where does ISE starts and stops?

ISE Methodology

Requirements Design Implementation Preparation Market Market LunchDefinition

Confidential

InnovationInnovation Ready for MarketReady for Market

Input

Comments

Discussion

An initial idea

An idea toexplore

Start ISE End ISE

Service discovery and consumption

© SAP 2007 /

New Automated Services► Digital form; execution in virtual world► Optimised „time-to-market"► Customized solutions► High security requirements

Classical Services► Service execution in

real world for humansand things

► Service execution boundto presence of a customer

Market Place

Medical ServicesEnterprise Services Media Services

Value-Added Services► Service aggregation and brokering► Internet-trading over a centralized platform

© SAP 2008 / Page 36

Internet of ServicesProject THESEUS/TEXO

AB

© SAP 2007 /

THESEUS National Research ProgramStructure and Partners

Market Leader for Applications in the

Health domain

Market Leader for Content and

Services

Market Leader for Business

Applications

Medical WebBusiness Web Consumer & Business Web

Vision

Industrypartners

TheseusUse Cases

Content owners and providers

Consumer Web

TEXO: “The Future Business Value Network”

“Scalable Semantic Image Search in Medicine”“The semantic enterprise”

“Organizing your digital life”

Ecosystem

“The world is your audience”Management of cultural assets in digital form”

Source: SAP Global Communications inputto Innovationsrat meeting © SAP 2007 / Page 37

© SAP 2007 /

Partners

IndustriepartnerSAP (Mitarbeit in allen WPs, Management)Siemens (Plattform-Dienste, Community Mining)Empolis (Dienst-Suche und Hosting-Plattform)

KMUsOntoprise (Werkzeuge für semantische Annotation)Intelligent Views (Management der Zugangsrechte)

ForschungsinstituteFZI (Semantik für das Business Web, Business Modelle)DFKI (Schnittstelle für mobile Nutzer)FhG IGD (Benutzerschnittstelle, Mash-up)FhG IAO (Dienst-Innovation)

HochschulenTU Darmstadt (Dienst-Orchestrierung, Governance)TU Dresden (Dienst-Komposition, Datenströme)TU München (Dienst-Innovation, Performance-Analyse)TU Karlsruhe (Rechtsfragen)

© SAP 2007 /

Conclusions

Growth of services worldwideService trade balance

Convergence Physical products and servicesNew technical infrastructures to deliver servicesService EngineeringMarketplaces for servicesTheseus and TexoChallenges for Service infrastructures

Semantic technologiesInnovationBusiness models

the internet of service · service architectures semantic technologies web2.0 application...

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