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Business Network Transformation

Business Network Transformation

It is practically impossible to imagine any company in this global economy that works isolated and does not connect to suppliers, partners and suppliers at some stage. This global ecosystem can be remoulding associations between companies in different and often uncomfortable ways. Businesses are organizing collaborative partnerships globally to aid their business businesses locally. That extends their business benefit and gain competitive gain. These enterprises are finding beyond typical business boundaries to lower costs, increase profit and improve quality of service they offer by tapping into applications, employees, and infrastructure regardless of where they reside. So, companies are looking to gain competitive benefits by leveraging these novel opportunities arose from intercompany interactions.

Though Business Network Transformation is not a new concept, this idea had been kept apart from action because of IT limitations. Companies traditionally centered on customers, internal functions and expense cutting to distinguish their business in this ecosystem. But IT has evolved this perception just lately. Enhanced IT functions for connection, collaboration and information posting caused raising global competition. Companies realised a new way of conducting business – “working together while working for others”. Examining their worth chains and understanding this competitive weapon resulted in formation of Business Networks.

This paper provides the following topics;

Business Network transformation explained with example

How IT helps business networks and part of IT in business network transformation

Service Oriented Architecture (SOA) explained with 3 achievements stories

Relating Provider Oriented Architecture to Business Resource Planning packages


Business Network Transformation

According to Philip Lay and Geoffrey Moore, Organization Networks are “groups of companies that work together toward a specific objective for mutual personal benefit”. The case in point below helps to understand Business Network Transformation.

Business network of MOBILE PHONE Company:


Mobile handset manufacturers, Chipset supplier, Network switching manufacturer, Agreement manufacturers, Cellular carriers, Routing Vendors, Program enablers, Service providers – voicemail, email, cellular search, banking, video recording streaming etc., Advertisers – banking institutions, pharmaceuticals, CPG businesses etc., Consumers – cellular phone owners, sellers enterprises etc.

Strategic Objective:

A multi channel marketing strategy to transit from manufacturing handsets and apparatus to a software service provider.

Business process and IT implications:

Demand data ought to be visible to ensure higher level of retail inventory through rapid source chain response. This implies binding marketing programs and sell-out data to improve marketing return on investment.

This case in point shows a provider with collaborating companions in a business network and their strategic goal to transformation.

As the definition of business networks is becoming known to everyone, the pace in which these networks are manufactured and changed and what IT means are necessary for this transition became a challenge.

Role of IT in Business Network Transformation

Potential to compete in this global market depends upon business’s network of individuals and flexible functions. New technologies like Services Oriented Architecture (SOA) and Software as something (SaaS) enable these systems to amplify chances and flourish. Successful and efficient interaction by sharing facts across its ecosystem of suppliers, employees, clients and distributors is enabled by implementing such service oriented architecture and products and services. Utilising these capabilities, businesses can provide improved customer experience because of improved intercompany conversation. These potentials also permit seamless conversation with intra company devices focusing on bettering value chain.

Taking full advantage of these global options from business networks and becoming globally built-in enterprise demands high level of flexibility. Businesses need to merge newly acquired business potentials and technologies with legacy applications. Existing IT infrastructure must be adaptable to changes in business models and should be prepared to accommodate them. Information has already been staying shared internally across departments within the business but now it should be shared externally across organization companions, across countries and continents. Business processes must be agile and regular alignment between business and IT is critical.

Service Oriented Architecture (SOA):

Service oriented architecture (SOA) enables business organizations to do this agility needed to contend in global ecosystem. It divides the business enterprise into functional pieces that are simple to be drawn jointly quickly and economically. They happen to be versatile enough to reuse in meaningful combinations to meet evolving business desires. These components are named ‘Services’. These combinations of services permit efficient collaboration and communication across provider lines and unearth facts buried within business techniques.

According to IBM, Support Oriented Architecture (SOA) is definitely “A business-centric IT architectural approach that helps integrating your organization as linked, repeatable organization tasks, or services.” Provider oriented architecture is essentially collection of services. These services are loosely coupled and implemented in standard ways. In other words, caller needs no knowledge of the technology or area of service provider. For instance ‘Create invoice’ as something could be invoked by any other business device or from any business application when invoice must be created.

SAP defined Business SOA as “A good blue print for an adaptable, adaptable and available IT architecture for developing services-based, modular business solutions.”

Three top features of an SOA:

These three features give value in a business by implementing SOA.

Software reuse:

Reusing components is among the important benefits of SOA. Reusable components permit companies to avoid redundancy. For example a business has many efficient silos and each silo generally needs information from various other silo such as customer information or invoice. When these silos are employing disparate technologies and are operating on different systems, they want duplicate instances of these details in each silo. SOA produces sole version of such solutions which is often shared across all practical silos.

Composite applications:

Composite applications are innovative cross-practical applications shaped by combining operation from many existing devices. For example, SOA enables companies to provide a single point access to a range of goods through a self service portal for business companions. Usually this portal may be a blend of different procedures with different technologies supported because of it services.

Standard interface:

Caller of a service does not need to have understanding of service’s location or technology platform on which it had been developed. Interface to products and services in SOA takes regular contact form. This facilitates a overall flexibility to run companies where they are required irrespective of location and technology with increased ease. It can also increase IT proficiency, improve quality of support and keep your charges down.

Coming to business partners, these loosely coupled, common interfaced products and services provide extra benefits. Spouse need not to understand progress of execution of a service, as SOA gives transparency of area and technology. Standard user interface allows partners to call a service having minimum information about the service.

In essence, the here are the huge benefits fall into three organization categories:

Business Effectiveness:

Business agility

Greater acceleration in responsiveness to market

Competitive advantage

Improved business process efficiency

Accuracy in deployment of information according to business needs

Cost factor:

Maintenance costs are reduced

Minimum skills and initiatives needed for business change

Optimized price due to choice of platform, technology and location

Risk factor:

Incremental deployment

Enhanced IT quality

Optimized payback times

Enterprise Resource Arranging and Program Oriented Architecture:

A single system with the capacity of accommodating business data which is centralised and accessible across all efficient areas in the company was the basic concept of ERP. Before ERP era, data would flow across sections but not stored in a single system. The single system was the selling point of all ERP vendors like SAP, IBM, Microsoft, Oracle etc. ERP execution requires no service work to integrate smaller elements but ERP implementation normally required greater customization. Without customization, ERP software packages seldom matched business functions and getting to the prepared to work status. Though implementing ERP effects many advantages, it has few drawbacks regarding price, customization and timeline for implementation. So ERP implementation and support are costly and time consuming. Additionally it is costly in the area of upgrading since it is tightly coupled package deal. The evolution of Services oriented architecture concept centered on these pitfalls of ERP. The Enterprise application vendors used consumer server technology in 1990s and web client technology in 2000s. Now they are transiting to Assistance oriented architecture approach to ERP. This blend of ERP predicated on SOA is best of breed procedure facilitating customers to have more options to select products and services from any vendor. SOA can be said as father of modern social structure theory It again architectures. Due to this combination, ERP parts became services in Service oriented architecture. The below two happen to be leading ERP suppliers who recently released their ERP package based on SOA,

SAP – Enterprise SOA:

SAP NetWeaver may be the new product based on SOA. SAP NetWeaver can be a platform on which other components such as Finances, Human Resource, Business Intelligence, Business method outsourcing etc are applied. It boasts advantages predicated on its SOA features such as web connections, Organization network transformation etc.

Oracle – Oracle Fusion Middleware:

Fusion Middleware is normally Oracle’s product based on SOA.

It is a category of products seamlessly integrated to run agile business applications. Business Intelligence, User Interface, Content management, SOA & Procedure Management etc. are pieces in this package.

IBM – Smart SOA:

Smart SOA is a set of guiding principles derived from solidified guidelines and documented assignments. They have created entry items to each of their products such as Business Intelligence, BPM etc. These entry details are undertaking “well identified, focused and individual project to meet up individual business need”.

The position of SOA in Business Network Transformation could be very easily understood from the achievements stories below.

Ergon takes oil business to the web

Ergon is United States based Petroleum Company. This can be a privately owned company with 2,500 staff members. It specializes in petroleum items with up and downstream operations like refineries, revenue and final trucking.

Business need:

Ergon wanted to integrate internal processes to improve access to the information and to deliver that details to its customer. The business wished to introduce self services portals and automated workflows to accelerate price range approval processes.


Ergon has more than 50 operations within the business and each of which is a distinguished income centre that reports back again to the headquarters. They implemented SAP organization workflow on existing SAP infrastructure to support purchasing and also to automate acceptance of requisitions. Ergon as well implemented IBM TotalsStorage DS6800 and transformed its databases to IBM D2 facilitating upgrade their ERP to SAP ECC 6.0 in future.


Enterprise wide:

SAP standardized their organization procedures molar mass sodium chloride. SAP enabled Ergon’s workers to gain consolidated view of specific workflow and also to make better handles their suppliers. SAP ECC 6.0 based on SAP NetWeaver fetches even more options for Ergon later on. Portals enabled users to view core functionality tailored close to business requirements. SAP NetWeaver created one enterprise platform.

They could efficiently align their business wants with their SAP ERP option with greater flexibility and helping Ergon’s changeover to SOA.

Business flow:

Ergon implemented SAP organization workflow to support purchasing process as part of its ongoing enhancements to interior efficiency. SAP workflow tool accelerated approval of requisition process. This saved large amount of administrative time by generating automated routing and email messages. SAP business workflow decreased administrative workload and accelerated purchasing. After successful implementation of workflow device and gained benefits from it, Ergon is now seeking to extend this instrument into other practical areas such as for example human resources.

Storage Performance:

Information access rates were improved plus they saved 10-12 hours per weekend on data source protection. This enabled freeing complex staff and to accomplish better throughput for live users. They could increase the access up to 17 times faster than ahead of. DS 6800 made reviews and transactions through SAP applications work much more quickly. Storage effectiveness is increased with new storage systems DS6800 and DB2 for business critical SAP systems.


SAP and IBM proved helpful collectively and IBM’s DB2 is continually supporting SAP applications. As performance and availability have grown to be important aspects in extending SAP applications to even more functional areas, this blend of SAP applications and IBM DB2 on IBM hardware using AIX operating system is helping Ergon to deliver excellent response times.

Bezeq setup SOA:

Bezeq is Israel established leading telecommunications provider. This can be a privately owned enterprise with 7,700 workers and with revenue of US $ 1 Billion. Its item and services selection includes, domestic, international and mobile phone services, internet and data communication services.

Business need:

Bezeq wished to maintain give attention to new vision that’s client facing. In the extremely competitive industry they wished to keep their market shares regulated tightly. Field technicians needed apparatus with mobile functions such as to prepare electronic bills, or buyer receipts etc. In addition they planned to architect a reusable set of web services.

Their objectives were in order to avoid constraints of position with handheld cellular devices and to provide application coders with a reusable set of services.


Bezeq implemented SAP NetWeaver technology program including exchange infrastructure, business portal parts and Web Dynpro expansion environment for traveling with a laptop.


Enterprise wide:

End to end business procedure integration was made possible by implementing SAP NetWeaver. This platform as well enabled real-time monitoring of field mend procedures. As NetWeaver is founded on SOA, Bezeq could achieve improvements in procedures surrounding service calls. Bezeq achieved speed in service completion from assignment to invoice. It has time to focus on streamlining its core telecommunications operations.

Avoiding constraints of physical site:

Field technicians are given PDAs to get service calls by which they are able to order replenishments which also updates central inventory and customer records. They can work with these PDAs from their homes and even while travelling. They are able to even get do the job related communications and use their autos as local and mobile phone warehouse for acquiring and distributing parts to clients.

Reusable services:

For traveling with a laptop, team has chosen Net Dynpro development environment. It is actually to program specialist PDAs to access directly SAP NetWeaver portal element. Access to back end operation that calls to the back end SAP system was encapsulated as reusable we providers. Decrease in costs and risk in conditions of both money and time is normally ensured by this make use of encapsulated web services that’s also adaptable and reusable.

Business model evaluation:

Equipment and supplies will be optimally allocated and handled using tools that technicians use. Company eliminated hour very long scheduling session and therefore saved significant amount of cash. They started saving 3, 250 hours weekly. Bezeq in addition has reduced average response times to provider requests from 6 days and nights to 2 working days that should help increase customer satisfaction.

Wipro Technology helps its customers to make it quick

Wipro Technologies is usually a division of Wipro Small, the earliest global IT services business to be certified in PCMM level 5 and SEI CMM level 5 and with twelve-monthly revenue is All of us $4.3 Billion and 99,965 personnel. They are among the largest item engineering and support companies globally. They have complete research and development and provide IT solutions and products and services like systems integration, data systems outsourcing, software program development, package execution and maintenance services.

Business need:

Wipro wanted to improve business process agility to be able to improve customer encounter for large automotive manufacturer in THE UNITED STATES to improve competitive advantage. They also wanted to avoid difficulties involved in services level agreements in the regions of service contracts, monitoring agreements and monitor design instances by deploying IT management tools. Wipro planned to improve secureness level in exposing IT offerings of the auto manufacturer.


Wipro implemented Oracle product or service including Oracle Fusion Middleware, Oracle SOA fit including web services supervisor and BPEL process supervisor. They also implemented Oracle Enterprise manager an ERP solution that includes Tuning pack, Diagnostics pack, Operations pack for SOA and Construction management pack.


Enterprise wide:

Oracle’s customer, the motor vehicle producer could roll out new solutions quickly and leveraged existing IT infrastructure and investments. They could efficiently manage the implementation including services by various stakeholders, business units and vendors. Business to client portal enabled Wipro’s customer to gain access to information online. They also gained the opportunity to analyse their It again infrastructure, capacity setting up and service planning.

Oracle SOA Suite:

As consumer deployed Oracle SOA suite, it allowed them to roll out fresh services in fast speed while leveraging existing IT investments. Business to customer portal developed using this suite allowed automotive manufacturer to gain access to information such as vehicle service alerts, marketing campaign information, recall facts and credit card prize points online. They also built a composite request enabled by SOA suite to aggregate username and passwords gathered from disparate functional units in the business. Earlier, this application expansion used J2EE and got over one year and now with SOA suite it got 90 days.

As portion of SOA suite, Web services Manager assure Oracle’s customer to really have the appropriate authorisation to access services.

Oracle Enterprise Manager:

This merchandise from Oracle enabled its consumer to proactively analyse IT infrastructure, service effectiveness and capacity planning. Within Enterprise Manager, Diagnostic pack allowed the automotive manufacturer to view problem areas within a view.

These success tales reveal how SOA allows businesses to gain competitive advantages by strengthening their business network and internal capabilities.


In this commoditizing global overall economy it is critical to be capable of operate effectively in business networks and also to sustain competitive edge. This ability to operate business effectively is made easy by Best of Breed IT remedy (SOA and ERP) allowing businesses to master global scale. However the businesses have a task to come out of the shell to get on these technologies to stand at the very top within their niche markets. They also gain good thing about auditing their current infrastructure, business processes and integrate them to accomplish single view.

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