This presentation is for informational purposes only and may not be incorporated into a contract or agreement.

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

Victoria Whitlock
VP Compliance Enpria, Inc.

Jeffrey Hutchins
Senior Principal Product Manager Oracle Corporation

This presentation is for informational purposes only and may not be incorporated into a contract or agreement.

Enabling Inter-Enterprise Connectivity

Addressing compliance, security, visibility, scalability, and standards from the Business and IT aspects

Agenda
Introduction Defining the problem? Solving the problem? Process example: Order-to-Cash

Who we are
Victoria Whitlock
Business Focused 22 years of IT experience Author Recognized SME
Compliance Business Integration Data Warehousing Business Intelligence Data Base Administrator Corporate Educator

Jeffrey Hutchins
Implementation Focused 24 years of IT experience Author Recognized SME
Standards Integration Architecture Data Warehousing Business Intelligence Application Developer Corporate Educator

Common Issues
Compliance & Information Technology Information Security Management Electronic Document Management Poor and Inconsistent Documentation Data / Customer / Process Integration Collaboration and Messaging Authentication Technologies Storage Technology Lack of Communication System Development Life Cycle Change Management Segregation of Duties

The Revelation
Our issues are the same !!! Compliance and Integration
Business Processes that need to be enabled Physical architectures to enable the Business Process Compliance and Integration have the same goals End-to-end Connectivity is the Lifecycle of a transaction from both a Business and a Information Technology View
Victoria Whitlock & Jeffrey Hutchins

Current Culture: Compliance

Government Compliance Industry Standards Organizations Corporate Standards International Standards Accounting Standards Industry Specific Compliance

Current Culture: IT
Managements attitude about IT spend
Y2K over spend Cavalier approach and .com over spend IT does not generate revenue

Attitudes about Compliance

Not Y2K Expenses and no value perceived

Everyone wants the mantra: To gain a competitive edge, fastest response to industry
changes, to reduce operational cost and to reduce Total Cost of Ownership.

This is not new:

History of Accounting / Computer
3500 BC 3000 BC 500 BC 50 BC 1789 1833 1886 1936 1938 1944 1946 Accounting begins Dust abacus is invented, probably in Babylonia Bead and wire abacus originates in Egypt Roman Corporations Established US Federal Government Charles Babbage designs the Analytical Machine William Burroughs develops the mechanical adding machine Security Exchange Commission established GAAP begun Hewlett-Packard is founded Grace Murray Hopper is the first programmer for the Mark I ENIAC (Electronic Numerical Integrator and Computer)

This is not new:

History of Accounting / Computer
1959 1967 1971 1977 1978 1982 1984 1990 1991 2002 COBOL is defined based on Grace Hoppers Flow-Matic First issue of ComputerWorld is published Intel Corporation announces the first microprocessor Oracle Corporation founded The first COMDEX trade show is held Sun Microsystems is founded Apple introduces the Macintosh computer Microsoft introduces Windows 3.0 World Wide Web established Sarbarnes-Oxley passed

What is the problem? Vocabulary

The words are the same but the meaning is not
Term
SOA Authentication

IT
Service Oriented Architecture System Authentication

Business
Sarbarnes-Oxley Act Transactions are authorized, and receipts and expenditures are being made only in accordance with authorizations of management.

Authorization

Privilege to To give permission. A manager authorizes perform a function a transaction by signing a voucher authorizing the disbursement. Data structure validation Digital Signature To declare or make legally valid. To mark with an indication of official sanction. To establish the soundness of. To corroborate. Business Solution

Validation

Non-Repudiation

Common Business Vocabulary

Governance
Methodology for the implementation of good engineering practices

Compliance
The enforcement of governance by law

Internal Controls
An integrated process of checks and balances established by management

How to solve this problem?

Information Technology
Establish a Baseline of your IT architecture

Corporate
Establish a Baseline of your business processes

How to uses the baselines

- Are you using it? - Are they complete? - Are they in sync? IT must become a partner in the Business Solution in order to enabling security, visibility and scalability Information
Technology Compliance

Integration Business Unit

Case Study: Order-to-Cash

A simplified view of a common business / IT process

Purchase Order Purchase Order Ship Notice Ship Notice Jeffs Distributors Invoice Invoice Payment Payment Victorias Vineyards

Business Flow: Order-to-Cash

A simplified view
PO PO Received Received PO PO Processed Processed Valid Valid PO PO

No

Manager Manager notified for notified for Resolution Resolution

Yes
ASN ASN Initiated Initiated Invoice Invoice Initiated Initiated Shipping Notice Shipping Notice Generated Generated Invoice Invoice Generated Generated PIC Slip created PIC Slip created Inventory Reduced Inventory Reduced Product to shipping Product to shipping

Payment Payment Received Received

Payment Payment Processed Processed

Payment Payment Applied Applied

Controls: Internal & Key Internal

Business Objective Notification of Purchase Order received Reconciliation of a processing failure PIC Slip created Inventory reduced Product to Shipping Ship Notice generated Invoice generated Notification of Shipping Payment Waiting Notification of Payment Notification of Payment received Notification of Payment received Ship Notice Initiated Inventory reduced Internal Control Purchase Order received Review of managers reconciliation process Key Internal Control Purchase Order received

Common IT Vocabulary
Application
Any endpoint application: Trading Partner, Legacy, Packaged, Composite or Portal..

Middleware
A centralized platform that enables an architecture to integrate all applications.

B2B Gateway
A component of the middleware that manages all interenterprise connectivity

Canonical XML Schema

A superset data structure representing a business object Create PO. Messages from each application are then mapped to this construct.

Detailed IT Flow: Order-to-Cash

EDI 850 850: PO 850: PO
AS2: MDN 997: FA AS2: MDN DB Insert DB Insert Order Import Order Import Open Interface Tables Open Interface Tables

XML 850

Dequeue Dequeue PO PO

XSLT Transform XSLT Transform

Order Process Order Process

EDI 856 HTTP Server

856: ASN 856: ASN

AS2: MDN 997: FA AS2: MDN

XML 856

Enqueue Enqueue ASN ASN

XSLT Transform XSLT Transform

DB Query DB Query

Ship Confirm Ship Confirm Event Triggered Event Triggered

EDI 810

810: Invoice 810: Invoice

AS2: MDN 997: FA AS2: MDN

XML 810

Dequeue Dequeue Invoice Invoice

XSLT Transform XSLT Transform

Invoice Process Invoice Process

DB Query DB Query

Invoice Triggered Invoice Triggered

EDI 820

820:Payment 820:Payment
AS2: MDN 997: FA AS2: MDN

XML 820

Dequeue Dequeue Payment Payment

XSLT Transform XSLT Transform

DMZ

DB Insert DB Insert

Open Interface Tables Open Interface Tables

AutoLockBox AutoLockBox Process Process

B2B Gateway

Middleware

Application

IT Flow: Order-to-Cash
PO PO
Received Received

Oracle Integration B2B PO PO Ship Notice Ship Notice Invoice Invoice Payment Payment

Oracle BPEL Process Manager PO PO Ship Notice Ship Notice Invoice Invoice Payment Payment

Oracle eBusiness Suite PO PO Ship Notice Ship Notice Invoice Invoice Payment Payment
Document Processing Process Orchestration Human Workflow

ASN ASN
Sent Sent

Invoice Invoice
Sent Sent

Payment Payment
Received Received

Inter-Enterprise Connectivity Intra-Enterprise Connectivity Trading Partners Mgmt Document Mgmt Document Mgmt Validation Batching Transformation Encryption Process Orchestration Validation Human Workflow Translation Error Handling

Enterprise Service Bus Business Activity Monitoring

Oracle Fusion Middleware

Integration Methodology:
Points to Identity and document

Integration Patterns: What are you integrating? Process: Order-to-Cash Business Objectives: Managements requirements Internal Controls: The Checks and Balances Key Internal Controls: The Auditing points Compliance requirements Architecture (middleware) requirements

How is the data accessed, structured, and processed?

Trading Partner:
Oracle Integration B2B

Middleware:
Oracle BPEL Process Manager

Application:
Oracle eBusiness Suite

Access
Trading Partner via AS2 BPEL PM via AQ

Access
Integration B2B via AQ Application via DB

Access
DB: Schema

Structure: EDI X12

850 Purchase Order 856 Shipping Notice 810 Invoice 820 Payments

Structure: XML Schema

EDI XML from Trading Partner DB XML from Application Canonical XML as transition

Structure: Tabular
Inbound: Interface tables Outbound: Database Views

Process
Each transaction set is a separate transaction Translation EDI XML AS2: Exchange process

Process
Transformation Business process Human Workflow process

Process
Setup to use API Each transaction set has a separate Concurrent Program to process data.

How are errors managed?

Trading Partner:
Oracle Integration B2B

Middleware:
Oracle BPEL Process Manager

Application:
Oracle eBusiness Suite

Error Levels
Transport Connection failed Exchange Data not received Data not sent Security violation Business Data not valid Outbound errors: Middleware notified Inbound errors: Trading Partner notified

Human Workflow
An Error Handling process was created to receive errors from both the Trading Partner and the Application. If an error occurs, a manager is notified for resolution.

Concurrent Program
Inbound: Any error results in the rejection of the data and a notification via a Oracle Workflow Outbound: Any error results in a notification via a Oracle Workflow Outbound errors: Middleware notified Inbound errors: Middleware notified

Outbound errors: Initiates a Workflow Inbound errors: Initiates a Workflow

What are the security requirements?

Trading Partner:
Oracle Integration B2B

Middleware:
Oracle BPEL Process Manager

Application:
Oracle eBusiness Suite

Authentication Authorization Secure Transport Encryption Non-Repudiation

Origin & Content Receipt

Authentication Authorization Document Retention Password Management Role Management

Authentication Authorization Database Access Role Management

What are the visibility and monitoring requirements?

Trading Partner:
Oracle Integration B2B

Middleware:
Oracle BPEL Process Manager

Application:
Oracle eBusiness Suite

Reports / Monitoring
Business Message Error Reports

Reports / Monitoring
Operational Administrative

Reports
Business Financial

Oracle Business Activity Monitoring

Business
How long does it take to process a PO? How long does it take to process a PO and respond with an ASN? What is the average time for the completion of the Order-to-Cash cycle?

IT
What are the average number of errors by Trading Partner? What are the average performance metrics for each component?

Compliance and Integration

Compliance and Integration enables you to focus on the core corporate competencies your business and allows you to create a flexible, scalable, integration business structure

It does matter.
Buying a tool does not make you Compliant The Cost of Not Doing it
By 2006, public companies that do not adopt a compliance management architecture will spend 50 percent more annually to achieve Sarbanes-Oxley compliance According to Gartner, Inc.

Common Issues Solved

Benefits of Compliance and Integration Information Security Management Electronic Document Management Poor and Inconsistent Documentation Data / Customer / Process Integration Collaboration and Messaging Authentication Technologies Storage Technology Lack of Communication System Development Life Cycle Change Management Segregation of Duties

The technology to address these issues: Oracle Fusion Middleware

Collaborative Enterprise Portal Development Tools Composition and Process Orchestration Information, Aggregation and Analysis Enterprise Application Server Management Security Grid Computing

The Business Objectives that drive the Technology Choices

Buying a tools does not solve the answer Use technology to support you business needs Design solutions that are flexible to grow with your business. Include business, finance and technology in the decision process

If so then What
Integration + Compliance = Good Corporate Governance
The Business Objectives MUST drive the technology Governance is the implementation of good engineering practices Compliance is the enforcement of governance by law The Fusion Middleware, when driven by the above:

Can enable Good Corporate Governance to a deliver flexible, scalable, integrated business structure than will support your tactical and strategic goals.

QUESTIONS ANSWERS

Learn the Technology

Visit OTN Microsites: otn.oracle.com

Try the Software

Visit the Hands-On Labs in Moscone West 1003, 1004

Ask Our Experts

Fusion Middleware Demogrounds; Sessions

Acronyms
Acronym Description
AS2 BAM BPEL BAM BI BPM B2B EDI ESB ETL HTTP XML X12 Applicability Statement 2 Business Activity Monitoring Business Process Execution Language Business Activity Monitoring Business intelligences Business Process Management Business-to-Business (B2B) Electronic Data Interchange Enterprise Service Bus Extraction Translation and Load HyperText Markup Language eXtensible Markup Language EDI Transaction Set Standard

This presentation is for informational purposes only and may not be incorporated into a contract or agreement.