Download Lecture 22

Interorganizational System
Development
Lecture 22
Today Lecture




Interorganizational System Development
EXXONMOBIL
Discussion Case – Interorganizational Systems
Development
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems Development
Internet-Based Systems


Application Servers
Java Development Platform
Today Lecture…

Web Service

Web Service Advantages for E-Business
 Web Services Terminology
 Web Service Model
 TRADITIONAL WEB-BASED SYSTEMS
 WEB SERVER CLUSTERS
Today Lecture…

BUILDING A WEB SERVICE
Case Example

BEKINS
Case Example – Web Services

BUILDING A WEB SERVICE
Preparing for On-The-Fly Web Services Development
Interorganizational System Development



One of the main business trends is the appearance of
business ecosystems — “groupings” of businesses that
work closely together
 Supply Chain Management systems integrate supply
chains
These are now a major trend as they compete against
one another on their ability to reduce costs and time
across their entire chains
Development of such inter-organizational systems
requires teams from the different organizations to work
together
Supply Chain Example
Interorganizational System Development
cont.

Another type of inter-organizational system
is a platform, which provides the
infrastructure for the operation of a business
ecosystem, a region, or an industry

Sabre

Video game industry
Interorganizational System Development
cont.

Platform development is a major trend in an
increasing number of industries

Following 2 cases
1.
Exxonmobil - Yet to become a platform
2.
HKEx – points out the types of coordination needed
to develop an interorganizational system for a
business ecosystem
EXXONMOBIL
Discussion Case – Interorganizational
Systems Development



Mobil created Speedpass, a system that uses a 1.5inch-long wand that motorists can attach to their key
chain and “wave” at an electronic reader on a Mobil
gas pump to pay for gas
Mobil’s goal was to speed motorists in and out of its
stations
ExxonMobil now has five million Speedpass holders
 They buy more Mobil gas than non-Speedpass
customers, they visit Mobil stations one more time
per month, and they spend 2-3 percent more
money
EXXONMOBIL
Discussion Case – Interorganizational Systems
Development cont.

To leverage this technology, it has teamed up with
McDonald’s restaurants in Chicago to test use of
Speedpass to pay for food

How should Mobil leverage this platform even more?
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development



HKEx is Asia’s second largest stock market
To extend its reach beyond Hong Kong, it decided to
embed its business processes in an open trading
architecture by building a third-generation automatic
order matching and execution system
HKEx’s goal is integrated end-to-end computerized
trading processes, from investors through brokers to
markets
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont.

The project was daunting, involving both
internal and external people

40 staff members from varying departments

150 consultants, and

500 brokerage firms
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont.
 Development took two years, and ended with
three levels of testing

One level involved testing the systems that some 100
brokerage firms built to interface with the open
gateway
 Rollout was phased so that Hong Kong’s stock
market was not disrupted
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont


HKEx has built its processes into an open architecture
and coordinated the construction of an interorganizational system – with components from
numerous sources and participants of many kinds
It is now the foundation for its industry ecosystem
Internet-Based Systems
 HKEx’s system is not Internet based but it allows
Internet access for online trading as well as other actions
 The
Internet has opened up the options HKEx can
offer
 Internet users have become so sophisticated that
Internet-based systems must be:
 Scalable
 Reliable,
and
 Integrated
both internally and externally with systems
of customers or business partners
Internet-Based Systems
To do this companies recognize they must negotiate
‘language differences’
 E.g.
a system may have to port old COBOL
applications to Java, reconcile interface discrepancies
and interface with back-end legacy applications, often
without documentation or past experience with those
systems
Tools are available to help
 Open systems etc.

Internet-Based Systems: Application
Servers
 Originally conceived as a piece of middleware to link a Web
server to applications on other company systems

The application server has grown into a framework for
developing Internet-based applications
Figure 9-6 shows the basic application server architecture.
The virtual server takes requests from clients and Web servers
(on the left), runs the necessary business logic & provides
connectivity to the entire range of back-end systems (on the
right)
Internet-Based Systems: Application
Servers
The goal of the application server:

automate

manage technical tasks in the development and running of
Internet based applications

The result:

Developers can focus more on business issues, rather than
technical detail
Internet-Based Systems:
Java Development Platform
Java has been in many cases the starting point for the
development of Internet-based systems with an open
system architecture.
 Originally – developed to provide applets that run
on Web clients


Evolved into a full programming language
Goal = Platform for independent language
that could run on any system
 Promise applications portability: “write once, run
anywhere”
 Didn’t live up to promise = evolved into a standard
platform for developing server-side applications

Java Software Development
Internet-Based Systems:
Java Development Platform

cont.
Major components in Java server-side platform
 Enterprise

Java Beans (EJB)
Preconfigured pieces of code that IS staff no
longer have to build from scratch
 Java
2 Enterprise Edition (J2EE)
 Defines a standard for developing Internet-based
enterprise applications
Internet-Based Systems:
Java Development Platform cont
 Provide
an alternative to building online business
systems from scratch or buying packaged online
business systems because of their multi-vendor
platform capability and pre-built, reusable
components

Microsoft competes with its own versions:
 Component
 Distributed
Object Model (COM)
Component Object Model (DCOM)
Web Service
•
•
Web Service:
 “Web-based applications that dynamically interact
with other Web applications using open standards
that include XML, UDDI and SOAP”
Universal Description Discovery Integration
Simple Object Access Protocol
Service-Oriented Architecture (SOA):
 “Development of applications from distributed
collections of smaller loosely coupled service
providers”
 “A collection of services or software agents that
communicate freely with each other”
XML

Extensible Markup Language (XML) is a
markup language that defines a set of
rules for encoding documents in a format
which is both human-readable and
machine-readable.
UDDI
UDDI (Universal Description, Discovery,
and Integration) is an XML-based registry
for businesses worldwide to list
themselves on the Internet.
 Its ultimate goal is to streamline online
transactions by enabling companies to find
one another on the Web and make their
systems interoperable for e-commerce.

Web Service Advantages for E-Business

Allow companies to reduce the cost of doing e-business,
to deploy solutions faster
 Need a common program-to-program
communications model

Allow heterogeneous applications to be integrated more
rapidly, easily and less expensively

Facilitate deploying and providing access to business
functions over the Web
Web Services Terminology

SOAP (Simple Object Access Protocol)
 exchanging
XML messages on a network
 Like
RPC, it provides a way to communicate between
applications
 Unlike
RPC, it communicates over HTTP
Web Services Terminology
 Because


HTTP is supported by all Internet browsers
and servers, SOAP can run on different operating
systems, with different technologies and programming
languages
WSDL (Web Service Description Language )
 describing interfaces of Web services
UDDI (Universal Description, Discovery and Integration)
 managing registries of Web services
Web Service Model (1/3)
Web Service Model (2/3)

Roles in a Web Service Architecture
 Service
provider
Owner of the service
 Platform that hosts access to the service

 Service
requestor
Business that requires certain functions to be
satisfied
 Application looking for and invoking an interaction
with a service

 Service

registry
Searchable registry of service descriptions where
service providers publish their service descriptions
Web Service Model (3/3)

Operations in a Web Service Architecture
 Publish
 Service descriptions need to be published in order for
service requestor to find them
 Find
 Service requestor queries the service registry for the
service required
 Bind
 Service requestor invokes or initiates an interaction with
the service at runtime
Internet-Based Systems:
Web Services
The
vision of Web Services is that modules of code can
be assembled into services, which, in turn, can be linked to
create a business process at the moment it is needed and
run across enterprises, computing platforms, and data
models

There are two development modes:

One is to wrap an XML wrapper around an existing piece of
code that performs a specific function
Internet-Based Systems:
Web Services



Exposes it
Then = give it a Internet address and let others use it –
for a fee!
Second way to build a Web Service = use one someone else
has already exposed

The
following case illustrates the basics of building a Web
Service
TRADITIONAL WEB-BASED SYSTEMS

Many Web-based systems are still organized as simple
client-server architectures.
TRADITIONAL WEB-BASED SYSTEMS

The core of a Web site: a process that has access to a
local file system storing documents.
TRADITIONAL WEB-BASED SYSTEMS

How to refer to a document?
 URL (Uniform Resource Locator)?
Uniform Resource Locator

A reference called Uniform Resource Locator (URL) is
used to refer a document.

The DNS name of its associated server along with a file
name is specified.

The URL also specifies the protocol for transferring the
document across the network.

Example:
http://www.cse.unl.edu/~ylu/csce855/notes/websystem.ppt
TRADITIONAL WEB-BASED SYSTEMS


A client interacts with Web servers through a special
application known as browser.
What’s the key function of a browser?
 Responsible for displaying documents.
WEB SERVER CLUSTERS
Web servers are replicated and combined with a front end
to improve performance.
WEB SERVER CLUSTERS

The front end can be designed in two ways:
switch – simply passes data sent
along the TCP connection to one of the servers,
depending on some measurement of the server’s load.
 Transport-layer
request distribution – it first inspects
the HTTP request and decides which server it should
forward that request to.
 Content-aware
WEB SERVER CLUSTERS
 For
example, if the front end always forwards
requests for the same document to the same
server, the server may cache the document
resulting in better response times.

Approach that combines the efficiency of transportlayer switch and the functionality of content-aware
distribution has been developed.
WEB SERVER CLUSTERS





Another alternative to set up a Web server cluster is to
use round-robin DNS.
With round-robin DNS a single domain name is
associated with multiple IP addresses.
When resolving a host name, a browser would receive a
list of multiple addresses, each address corresponding to
a server.
Normally, browsers choose the first address on the list,
but most DNS servers circulate the entries.
As a result, simple distribution of requests over the
servers in the cluster is achieved.
BUILDING A WEB SERVICE
Case Example


Currency converter
The steps involve:
1. Exposing the code
2. Writing a service description
3. Publishing the service
4. Finding the service, and
5. Invoking a Web Service
BEKINS
Case Example – Web Services


Moving company which is using Web Services in its
HomeDirectUSA business
 Delivers large household appliances
Uses some 1,000 independent agents
 Formerly = faxed or phoned these agents to
arrange delivery
 Slow and not equitable to all agents
 Created an online broking system (TBE)
 Used to tender jobs to all agents
 Once accepted = unavailable to others
BEKINS
Case Example – Web Services



Results
 Lower tendering costs
 Faster customer service
 Better utilization of agents’ trucks
 So efficient = offer lower margin jobs to agents
 Increases shipping volume and revenues
Bekins’ E-Commerce Platform
Building the system
 Required commitment from several moving
partners = an interorganizational system
 Involvement = important but equally important
was their comfort with Web Services
BUILDING A WEB SERVICE
Preparing for On-The-Fly Web Services
Development

Whilst these can help enterprises develop
systems faster, the technology might have
other ramifications
 CIOs

would do well to prepare for
Possibly another round of even more
powerful, on-the-fly end user development
BUILDING A WEB SERVICE
Preparing for On-The-Fly Web Services
Development
 History



repeating itself
Spreadsheets
4GLs
Web sites
 Personal
 IS

silos of data and apps
management can address ‘in advance’ this time!
Else = Users will take development into their own hands as
they have done so eagerly in the past
Summary

Traditional approach from the 1960s evolved to give
more discipline, control, and efficiency.


Moved programming from an “art” to a “craft.”
Problems:




Development times
Low user involvement
Lack of flexibility
1970s and 1980s: data-driven development, stressed
improving early phases in development:


4GL and software prototyping permitted more rapid
development
CASE and object oriented (software re-use)
Summary

1990s:



Client-server
Internet-based systems
Integration of components and packages

The 1990s brought the need for integrated enterprise
systems and Internet-based systems

Development now focuses on the Internet,
interorganizational development, and ecosystem
applications

Systems where project management skills are even more
important due to the complexity of the systems