The No.1 reason why enterprise implementations fail is Integration. iCore will explain the hidden costs of point-to-point solutions and how an integration strategy can improve stability and save costs.
4. www.icoresolutions.comIntelligent Business Integration
ERP life cycle
Many applications are introduced and disappear during the life cycle of
the ERP system.
CRM HR Warehouse/
logistics
SCM
New
CRM
Web
shop
New
Web
shop
Customer
portal
E-Marketing
New
ERP
ERP
Year
1 12
6. www.icoresolutions.comIntelligent Business Integration
Calculation: Point to Point integrations
• 2 applications to be integrated
– 2 integration points
• 4 applications to be integrated
– 6 integration points
• 8 applications to be integrated
– 14 integration points
How many integration points do you have?
How many integration flows?
What is your integration cost today?
7. www.icoresolutions.comIntelligent Business Integration
iCore Integration Suite
Integration by configuration and ”best practices”!
• A flexible and robust integration solution that covers
most integration needs
– + 500 Enterprise clients in over 35 countries
– Thousands of integration projects performed
• Developed by experienced integration experts
– Harmonized to fit our proven methods and models
– To stimulate ”automation” and reuse
– Best practices and templates
• Highly scalable and event driven
8. www.icoresolutions.comIntelligent Business Integration
Loosely coupled integrations
Loosely coupled = SOA
• Neutral intermediate formats
• Reusable services
ESB
• Communication
• Routing
Adapters
• Intelligent
• Application friendly/ESB friendly
Flexibility, control and
economy!
B2B/EDI
Customers
Suppliers
Bank,
logistics partners...
9. www.icoresolutions.comIntelligent Business Integration
All in ….. or take it i steps!
…grow over time….
Start small….
…from tactic to strategic!
• Automated business transactions
• From tactical to strategic –
Long-term objective:
– Building a solid infrastructure
– Be prepared for growth
– Be able to re-use allready made solutions
• Be in control
– Extensive track & trace facility
– Extensive alarm functionality
– Validation, business logic support
10. www.icoresolutions.comIntelligent Business Integration
Driving forces for more integration
Today, costs for integration on average make up 6.7% of the IT
budget, but this figure is increasing. The reasons are:
• Accelerating costs
Increasing complexity, accelerating demands for change, low integration
support in ERP, some integration platforms lack openness
• Externally forced change
Business models and business logic change, customer loyalty and
relations transform — affecting previously designed integration
• The way IT will be delivered
Changed way of delivering IT, in-house applications will be mixed with
outsourced operations and cloud services
• Innovation
Integration and innovation will be even more intimately associated in the
future. Integration of technologies, of hardware and services, of
information et cetera
11. www.icoresolutions.comIntelligent Business Integration
Cost distribution - New investments in integration
solutions
Cost distribution, new investments:
Integration solutions tend to be complex solutions with many interfaces towards
surrounding applications, which also drive the costs of adaptations and
implementation
19% 81%
0% 20% 40% 60% 80% 100%
Cost distribution, new
investments
Licenses Resources
12. www.icoresolutions.comIntelligent Business Integration
Cost distribution - Long term for integration
solutions
Cost distribution over a ten year period
The costs for operation, administration and maintenance of integration solutions
constitute a major part of the TCO (Total Cost of Ownership) over a presumed
life cycle of ten years.
13% 35% 52%
0% 20% 40% 60% 80% 100%
Cost distribution
Initial investment Operational costs Administration & Maintenance
13. www.icoresolutions.comIntelligent Business Integration
Key figures integration
Due to new demands and fast changes, there are a lot of ongoing
integration projects in Nordic businesses at present.
Key figures Average values
Average no of integration flows 46
Average no of integrated applications 13
Average no of messages per hour 490
No of integration related incidents 10 / month
Average cost per integration flow £ 3 500 /year
Key figures from Nordic IT
businesses, 2012.
Figures for mid-sized and
large business are merged
(850 companies, 250
employees or more)
14. www.icoresolutions.comIntelligent Business Integration
Living with change!
• Automated e-business and EAI
• Loosely coupled architecture (SOA)
- enables reuse
• Integration comprises:
– A Vendor Managed Inventory (VMI)
solution
– Electronic Bank payment solutions
– A third party logistics (3PL) service
toward 3PL providers
– A comprehensive B2B/EDI solution
(exchange of an old solution)
– A Product Development
Management System (PDMS)
solution
• New ERP system Dynamics AX 2012
– Migrating from Infor M3 to Microsoft
AX 2012
– Reusing integrations, less risk in
ERP exchange
Danske bank
Customers
Suppliers
VMI
system
3PL
service
M3/Movex Dynamics AX
B2B/EDI
PDMS
system
15. www.icoresolutions.comIntelligent Business Integration
Integration at Santa Maria, Key figures
• More than 250 integration flows at present
• Radar figures
– £ 3 500/integration flow and year
– £ 915 000/year
• Comparison with iCore
– Been an iCore customer for 5 years
– £ 1 900/integration flow and year
• Including iCore Integration Suite costs (SW and Service agreement),
maintenance cost, hardware costs, inhouse staff and cost for SW APIs
• Savings with iCore
– 46% - yearly
16. www.icoresolutions.comIntelligent Business Integration
Be fast and precise!
• A comprehensive ”EA/SOA solution”
– Supporting ”best-of-breed”
• B2B integration
– Customer relations
– Supplier relations
• Web Shop
– Automated and integrated
• Mail to order department
– About missing articles
• Fast implementation of new
companies
– B2B/EDI
– Mergers and acquisitions
• Efficient administration,
development and
supervision
– 2 people inhouse
Web shop
NetSet
Consulting appl
in-house
developed
Bank
CustomersSuppliers
Dynamics
NAV
PIM
in-house
developed
EFH
Palette
B2B/EDI
PA
system
17. www.icoresolutions.comIntelligent Business Integration
Integration at ATEA – Key figures integration
• More than 300 integration flows at present
• Radar figures
– £ 3 700/integration flow and year
– £ 1 095 800/year
• Comparison with iCore
– Been an iCore customer for 7 years
– £ 1 245/integration flow and year
• Including iCore Integration Suite costs (SW and Service agreement),
maintenance cost, hardware costs, inhouse staff and cost for SW APIs
• Savings with iCore
– 66% - yearly
18. www.icoresolutions.comIntelligent Business Integration
Cost savings with iCore – Initial investments
+ Drives little infrastructure
+ Cheaper hardware/OS/DB
+ Simple and fast installation
+ Saves time
+ Scaleable business model
+ Start small and grow over time with ROI.
+ Templates that simplify
+ Standard and iCore-developed
+ Saves time
+ Refundability
+ Proof-of-Concept with 3 months test/refundability.
+ Reduced risk
= Fast ROI on initial investment with iCore
19. www.icoresolutions.comIntelligent Business Integration
Cost savings with iCore –
Operation, Administration & Maintenance
+ Drives little infrastructure
+ Cheaper hardwareOS/DB
+ Robust platform
+ Few operation problems
+ Inexpensive and simple administration
+ Easy to support
+ Outstanding standard track & trace
+ Requires less administration
+ Alarms are triggerd when errors occur.
+ Simple upgrade procedure.
+ Always backwards compatible
+ No breaking changes in product.
+ Scaleable business model
+ Start small and grow over time with ROI.
+ Templates that simplify
+ Standard and iCore-developed.
= Very good TCO with iCore
22. www.icoresolutions.comIntelligent Business Integration
Some quotes from our customers…
”iCore enables us to reduce manual
business transactions fast and easily in
alignment with our customer needs”
– Behrang Karimi, eBusiness Application Manager
iCore user since 2013 (2007)
Facts:
48.000 employees
140 sites in 28 countries
”For me, iCore is almost like the command
bridge at Starship Enterprise in Star Trek”
– Paul Latter, Integration Manager
iCore user since 2005
Facts:
Owned by US Colfax Corporation
8.700 employees
Sales and support in 80 countries
Facts:
43.000 employees
Operations in 70 countries
”At Assa Abloy the business is in continous
change. Speed, speed, speed is the
keyword”.
– Martin Almroth, Integration Manager
iCore user since 2002
Vilken typ av organisation är ni - SPARA?
AdHoc integrationsstrategi
Hårt kopplat,
ingen kontroll över dataflödena,
personberoenden, och dyrt att genomföra förändringar
alla flöden är övervakade och larmning sker om det som ska ske inte sker.
förändring lätt att genomföra – byte,
uppgradering av system drabbar endast flödena lokalt.
Andra typer av förändring som skapar behov av strukturerad integration konsolidering, avyttring och förvärv av enheter.
Integrationsflöden – kan vara många flöden mellan 2 system
Bilden ska animeras.
Då byter vi analytiker!
Här är det Deloitte som i sin Annual Technical Trend report säger att rätt förkortning på CIO i dagens tidevarv borde vara Chief INTEGRATION Officer!
Rollen som CIO evolveras kraftigt f n – och Integration är deras viktigaste uppgift i digitaliseringen!
