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

© Vattenfall AB
 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
• 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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 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
• 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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 Method

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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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 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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 Why an integration platform? (2)

•N*(N-1)/2 physical connection

•N*(N-1) new interfaces

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 Why an integration platform? (3)

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 Why an integration platform? (3)

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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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 Tools and Frameworks: Technology Adoption Life Cycle

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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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 Introduction to SAP PI

SAP • PI is the central

SAP SAP communication point for all
NetWeaver components
SAP • Open XML based standards
are used for integration
ERP-
• PI is part of the SAP
System
Services Oriented
Business
Partner Architecture (SOA)
Third-
• SAP delivers pre-configured
Business
Partner
party
content
Marktplace
(Internet)

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 Functional Covarage Comparison

SAP Microsoft
Integration Platform NetWeaver .Net and Microsoft
Server Products
Process Integration SAP PI MS BizTalk
Portal Solution NetWeaver Portal MS Sharepoint
Application Server Web Application MS .Net, Indigo
Server
SOA Architecture Enterprise Service SOA on Basis of .NET
paradigm Oriented Architecture and
(eSOA) BizTalk

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 Introduction to SAP PI (XI)

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 Introduction to BizTalk

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 Market Share Comparison

SAP PI MS BizTalk
Available in 7 years 10 years
market for:

Total number of 2000 8500

active users:

Biggest customer 99% SAP SAP, Oracle,

segment: customers Microsoft
Dynamics, SSA
Global
Technologies and
so on

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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 project

budget spent on integration?

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 Pop-Up Quiz

35-40 % of average ERP project budget is spent

on integration (Gartner, AMR)

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

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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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 Analysis and Results

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 Analysis and Results

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 SWOT Analysis for SAP PI

Helpful Harmful
Strengths Weaknesses
•Management Support •Human Competence
•Large SAP Installations at Vattenfall

Internal

Opportunities Threats
•SAP’s eSOA strategy and PI •Expensive Consultants
•Large and growing customer base •Unclear roadmap

External •Highly optimized for SAP environment

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 SWOT Analysis for BizTalk

Helpful Harmful
Strengths Weaknesses
•Human Competence •Not optimized for SAP
•Internal Experience

Internal

Opportunities Threats
•Growing Customer Base •Expensive Consultants
•Availability of Knowledge and Experience •High License Fees
External •In the future Vattenfall might be even
more interested in SAP

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 Analysis and Results

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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 2- Product Roadmap (2)

New Business Enabling

Year Customer Need
Solution Technology

1972 Real-time integrated business R/1, R/2 ABAP (Mainframe

processes, lower TCO architecture)

1992 Scalable integrated business SAP R/3, R/3 Basis (3-tier

processes, lower TCO SAP APO, Client/Server
SAP BW architecture)

1999 Heterogeneous business mySAP.com, mySAP

processes, lower TCO mySAP EP, Technology
SAP XI (Internet
architecture)
2003 Packaged composite business SAP xApps SAP NetWeaver
processes, lower TCO (Enterprise Services
Architecture)

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 2- Product Roadmap (3)

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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 3- Maturity of BizTalk and SAP PI (1)

Operational Excellence

Customer Intimacy
Product Leadership

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 3- Maturity of BizTalk and SAP PI (2)

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 3- Maturity of BizTalk and SAP PI (3)

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 3- Maturity of BizTalk and SAP PI (4)

SAP PI MS BizTalk
Available in 7 years 10 years
market for:

Total number of 2000 8500

active users:

Biggest customer 99% SAP SAP, Oracle,

segment: customers Microsoft
Dynamics, SSA
Global
Technologies and
so on

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 3- Maturity of BizTalk and SAP PI (5)

SAP PI MS BizTalk

0 3

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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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 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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 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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 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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 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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 Final Decision Proposal (2)

SAP
SAP SAP
Other
Systems
SAP
Other
Systems

SAP PI
Business
Partner
BizTalk
Firewall

Business
Partner

Third-
Marktplace
party
(Internet)

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Final Decision Proposal (3)

•Scenario 1
Non
SAP SAP
SAP PI crosses the chasm

PI SAP improves the product

PI PI quality and not just focusus
on SAP integration.

SAP Non Non

SAP SAP

2009- 2010 2010 2011

SAP PI Adoption Road Map for Vattenfall Sweden

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Final Decision Proposal (4)

•Scenario 2
SAP SAP Non
PI can not cross the
SAP chasm
PI BizTalk BizTalk
SAP PI primarily directed
towards SAP integration

SAP Non Non

SAP SAP

2009- 2010

SAP PI Adoption Road Map for Vattenfall Sweden

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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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 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 Vattenfall
ii. an unclear roadmap of the development of SAP PI
iii. the maturity of MS BizTalk
iv. 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.

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 With that...

Thank you very much for your attention

Alper Celik
Alperc@kth.se

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