SAP Systems Integration by SAP PI (XI)

© Vattenfall AB

Analyzing the needs of creating a SAP PI platform in Sweden

Department of Computer and Systems Sciences, Stockholm University

&Royal Institute of Technology

Alper Celik

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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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Thesis description

1- Create a list of stakeholders

2- Define their business and technology requirements

3-Prepare a final decision proposal based on this research work if Vattenfall Sweden should use SAP PI as their main integration platform or not.

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Agenda


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Unbundling and Future Nordic Energy Market

”Unbundling” : Seperation of sales and distribution data

”Nordic Energy Market Consolidation” : They will need more integration

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Problem Background

MS BizTalk Vs SAP PI

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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


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Method

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Agenda


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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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•N*(N-1)/2 physical connection•N*(N-1) new interfaces

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Agenda


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Tools and Frameworks: Technology Adoption Life Cycle

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Agenda


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Introduction to SAP PI

Marktplace(Internet)

BusinessPartner

SAP

SAP SAP

SAP

Third-party

BusinessPartner

ERP-System

• PI is the central communication point for all NetWeaver components

• Open XML based standards are used for integration

• PI is part of the SAP Services Oriented Architecture (SOA)

• SAP delivers pre-configured content

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Functional Covarage Comparison

Integration Platform NetWeaver .Net and Microsoft Server Products

Process Integration SAP PI MS BizTalk

Portal Solution NetWeaver Portal MS Sharepoint

Application Server Web Application Server

MS .Net, Indigo

SOA Architecture paradigm

Enterprise Service Oriented Architecture

(eSOA)

SOA on Basis of .NET and

BizTalk

SAP Microsoft

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Introduction to SAP PI (XI)

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Introduction to BizTalk

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Market Share Comparison

Available in market for:

7 years 10 years

Total number of active users:

2000 8500

Biggest customer segment:

99% SAP customers

SAP, Oracle, Microsoft

Dynamics, SSA Global

Technologies and so on

SAP PI MS BizTalk

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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 projectbudget spent on integration?

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Pop-Up Quiz

35-40 % of average ERP project budget is spenton integration (Gartner, AMR)

Source: 'Cutting Implementation Costs by Application Integration', Gartner, February 2002

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Agenda


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Analysis and Results

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SWOT Analysis for SAP PI

Strengths•Management Support•Large SAP Installations at Vattenfall

Weaknesses•Human Competence

Opportunities•SAP’s eSOA strategy and PI•Large and growing customer base•Highly optimized for SAP environment

Threats•Expensive Consultants•Unclear roadmap

Internal

External

Helpful Harmful

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SWOT Analysis for BizTalk

Strengths•Human Competence•Internal Experience

Weaknesses•Not optimized for SAP

Opportunities•Growing Customer Base•Availability of Knowledge and Experience

Threats•Expensive Consultants•High License Fees•In the future Vattenfall might be even more interested in SAP

Internal

External

Helpful Harmful

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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

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

SAP PI MS BizTalk

0 2

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1999

1992

1972

YearYear

Heterogeneous business processes, lower TCO

Scalable integrated business processes, lower TCO

Real-time integrated business processes, lower TCO

Customer NeedCustomer Need

mySAP.com,mySAP EP, SAP XI

mySAP Technology(Internet architecture)

SAP R/3,SAP APO,SAP BW

R/3 Basis (3-tier Client/Server

architecture)

R/1, R/2 ABAP (Mainframe architecture)

New Business New Business SolutionSolution

EnablingEnablingTechnologyTechnology

2003 Packaged composite business processes, lower TCO

SAP xApps SAP NetWeaver(Enterprise Services Architecture)

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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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Available in market for:

7 years 10 years

Total number of active users:

2000 8500

Biggest customer segment:

99% SAP customers

SAP, Oracle, Microsoft

Dynamics, SSA Global

Technologies and so on

SAP PI MS BizTalk

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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)

SAP PI MS BizTalk

0 4

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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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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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Marktplace(Internet)

BusinessPartner

SAP

SAP SAP

SAP

Third-party

BusinessPartner


SAP PI

BizTalk

OtherSystems

OtherSystems

Firewall

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SAP

SAP

PI

SAP PI Adoption Road Map for Vattenfall Sweden

2009- 2010 2010 2011

•Scenario 1

PI crosses the chasm

SAP improves the product quality and not just focusus on SAP integration.

SAP

PI

NonSAP

NonSAP

NonSAP

PI

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SAP

SAP

PI

SAP PI Adoption Road Map for Vattenfall Sweden

2009- 2010

SAP

NonSAP

NonSAP

NonSAP

BizTalk BizTalk

•Scenario 2

PI can not cross the chasm

SAP PI primarily directed towards SAP integration

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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 same 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. However, it is

suggested that Vattenfall continues to use MS BizTalk as the primary integration engine during the next 1-2 years due to:

i. unsufficient human competence in SAP PI within and outside Vattenfallii. an unclear roadmap of the development of SAP PIiii. the maturity of MS BizTalkiv. 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.

SAP Systems Integration by SAP PI (XI)

Technology

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