2008-06-18 SWT 10

Internet of Services
Universität Karlsruhe (TH)
18. Juni 2008
SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS
Dr. York Sure
CEC Karlsruhe
SAP Research
Agenda
Internet of Services
1. The Rise of Services
2. Internet Trading
3. Internet of Services
© SAP 2008 / Page 2
Demo: EU services sirective – Towards an open
plattform for constituent-centric services
© SAP 2008 / Page 3
Introduction
What is a service, anyway?
Easy to define what a service is not
excludes harvesting the land and manufacturing automobiles
Economist: “anything sold in trade that cannot be dropped on your foot”
© SAP 2008 / Page 4
Trend: “Tertiarisation”
Growth through services
Gross Value Added in Germany
1991
2005
Commerce, Hotel and
Restaurant Industry
and Transport Sector
Commerce, Hotel and
Restaurant Industry
and Transport Sector
17,9%
Finance, Leasing
and Business
Service Provider
Building Sector
6%
62,0%
30,6%
Agriculture and Forestry,
Fishery
18,0%
69,4%
Building Sector
3,9%
20,8%
Public and
Private Service
Provider
Industry (without
Building Sector)
25,8%
Agriculture and
Forestry, Fishery
0,9%
1,4%
Source: Statistisches Bundesamt, 2006
© SAP 2008 / Page 5
29,1%
23,3%
Public and
Private Service
Provider
Industry (without
Building Sector)
Finance, Leasing and
Business Service
Provider
22,3%
Trend: Tertiarisation
Employment through services
Employees in Germany
30 m
71,9%
(27,9 m)
25 m
59,5%
(23,0 m)
Services
+4,9 m
20 m
15 m
10 m
29,3%
(11,3 m)
-3,4 m
Industry
without Building Sector
5m
Building Sector
7,3%
Agriculture and Forestry, Fishery
3,9%
1991
(Total: 38,6 m)
© SAP 2008 / Page 6
1995
2000
20,3%
(7,9 m)
5,5%
2,2%
2005
(Total: 38,8 m)
Trend: Focusing on Core Competencies
Consolidation & Reducing the Value Chain
Percentage of value addition
Number of independent OEMs
57
"Most likely survivors"
• GM
• DaimlerChrysler
• Ford
• VW
• Renault/Nissan
• Toyota
41
40
31
100%
80
60
23
17
20
40
14
13
8
0
1970
© SAP 2008 / Page 7
80
90
95
98
99
OEM
2000 2010
20
0
Supplier
60
2000
2005
2010
Consequence: Agility
Flexible Business Processes of the Future
HARD-WIRED
VALUE CHAIN
© SAP 2008 / Page 8
SPECIALIZATION &
CONSOLIDATION
BUSINESS
WEB
Convergence
Physical products and services
From product …
Drilling machine
© SAP 2007 / Page 9
© SAP 2008 / Page 9
… to solutions
Drilling holes
Mobile
Navigation
SoftwareCD
Software
as a Service
Agenda
1. The Rise of Services
2. Internet Trading
3. Internet of Services
© SAP 2008 / Page 10
Amazon
Major company to sell goods over the Internet
Started with books, diversified product lines largely (… and
counting)
Long tail business model
Revenue in 2006: US$10.7 billion
Partner Program
Every partner can set links to Amazon products on own webpage
and is rewarded for created revenues by visitors of the links
Every partner can create own stores to offer own and Amazon
products
Over 900.000 registered partners world-wide
Self-enforcing process: Links are ranked highly in search engines
which makes Amazon more attractive
Services
Marketplace, Web Services, S3, EC2, Mechanical Turk, Flexible
Payment Service, Unbox, MP3 Downloads … (and counting)
© SAP 2008 / Page 11
iTunes
Internet Store + Application + Hardware
iTunes Store
Sold more than 3 billion songs in first 4 years (July 2007)
Market share of more than 80% of worldwide online digital
music sales
Single-price business model
Connects easily with iTunes application
iTunes application
Buying, playing and organizing digital media
Bundled with Macs and some HPs and Dells, available for
major OSs
Connects easily with iPod
iPod
Digital music player
Sold over 110 million times
(September 2007)
© SAP 2008 / Page 12
Software as a Service (SaaS)
Software application delivery model
Vendor develops, hosts and operates web-native applications
Customers pay per use, not for owning
Targets business users (in contrast: Web2.0 is for consumers)
Price per-user business model
Characteristics (IDC)
Network-based access to and management of commercially available software
Services offered from central location, but accessible via Web
One-to-many model (single instance, multi-tenant architecture)
Typical applications and vendors
Email, CRM, HR, Accounting, Video Conferencing, …
Salesforce, SAP BusinessBy Design…
© SAP 2008 / Page 13
Introducing... SAP Business ByDesign
The Most Complete, Adaptable On-Demand Business Solution
1
360 Degree
Solution
© SAP 2008 / Page 14
2
3
Easy-to-Use
and Adapt
IT ITIT
IT IT
IT IT
IT
IT
IT IT
Predictable,
Affordable,
Manageable IT
Agenda
1. The Rise of Services
2. Internet Trading
3. Internet of Services
© SAP 2008 / Page 15
The Big Picture:
Vision of a web-based Service Economy
NETWORK
PARTICIPANTS
OPEN
SERVICE DELIVERY
PLATFORM
NETWORK
ENABLER AND
FOUNDATION
© SAP 2008 / Page 16
GOVERNMENT &
INFRASTRUCTURE
eGovernment, eEnergy,
eHealth, Public Security
SECURE
BROADBAND
INFRASTRUCTURE
MULTIMEDIA
CONTENT
BUSINESS & SCIENCE
Cluster/SME, new Service and
Business Models
INTERNET
of SERVICES
INTERNET
of THINGS
CITIZEN/CONSUMER/
EMPLOYEE
„Digital Lifestyle“, New Media,
Communities, Collaboration
SERVICE-/USERFRIENDLY IT
SERVICE-ORIENTED
SOFTWARE
APPLICATIONS
Internet of Services – the Gathering Clouds
StrikeIron
Salesforce
USA.gov
directgov.uk
Rearden Commerce
applicationmarketplace.com.au
Microsoft CSF
TradeExchange.com
nttdocomo.com
HP (SDP 2.0)
Alibaba.com
22.verizon.com
jnetx
©©
SAP
2008
/ Page
1717
SAP
2008
/ Page
Process for exporting goods in foreign trade - a
simple process?
1.
2.
3.
4.
5.
6.
7.
8.
© SAP 2008 / Page 18
Order request
Confirmation of the order
Assure financing by home bank
Declare products to ship at customs
Logistics provider transports products to the harbor
“Overseas Forwarding” takes care of loading of the goods onto ship
Confirmation of the handover to the ocean carrier is sent to
Shipper – for sales tax and insurance
Bank – to initiate bank transfer
Receipt of the payment
The service aspects of exporting goods in
foreign trade are non-trivial
Foreign trade processing is a complex service
For SMEs, foreign trade processing is NOT a core competence
A reliable value-added service provider coordinates the process on behalf of the seller
Seller
Order
Order
Shipment
Shipment
Payment
Buyer
Seller
Payment
Buyer
Foreign Trade:
value-added
service
Insurance
Insurance
Logistics
Provider
Ocean
Carrier
Customs
Logistics
Provider
Hermes
Ocean
Carrier Carrier
Bank
Carrier
AKA
Execution of export via seller
© SAP 2008 / Page 19
Customs
Bank
AKA
Hermes
Execution of export via value-added service provider
Diversified Partnerships for Service Supply:
from the “Cloud” to the “Sky”
Service Gateway
Service provider
community
B2B standards
QoS management security, reliability,
etc.
Systems management
©©
SAP
2008
/ Page
2020
SAP
2008
/ Page
Service Aggregator
Third party
aggregators
New service offers:
bundles and variants
Service re-factoring
Service Broker
Marketplaces:
service publication,
discovery, ordering,
rewards etc
Managed service
delivery
Cost subsidising
partners
(e.g. advertisers,
marketers)
Service Channel
Services at the edge
Widgets, mash-ups
Integrated Web
authoring
Mobility and multimodal interactions
Personalization,
context awareness,
service contacts you
Demo: Service consumption
© SAP 2008 / Page 21
New service provisioning trends
Partner ecosystems
Open marketplace ecosystems
Single “clouds”
“Sky” grids
Web, content and
widgets services
Convergent digital/transaction
services, business, human, multi-step,
multi-stakeholder …
Structured classifications and
search
Structured and unstructured sources for search –
natural language search
Conventional composition of
services – mashups, service
orchestration
Formalization of service variants and service
bundles
Basic interactions:
order-request-response
Negotiations and tendering as part of ordering,
pay-as-you-go
© SAP 2007
2008 / Page 22
Thank you!
Dr. York Sure
CEC Karlsruhe
SAP Research
© SAP 2008 / Page 23
Copyright 2007 SAP AG
All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed
without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and
associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document
contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy,
and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or
other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation
shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these
materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages
Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch
SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.
Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services
sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten
Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu
Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen.
Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen
Vereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmten
Geschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die
Richtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, weder
ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck
sowie für die Gewährleistung der Nichtverletzung geltenden Rechts.
SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendung
dieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.
Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinks
zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen über
Internetseiten Dritter ab.
Alle Rechte vorbehalten.
© SAP 2008 / Page 24