Chevron: A Proven Path to Becoming an Integrated Intelligent Enterprise | SAP TechEd in 2020
[MUSIC PLAYING] Hello, and welcome at SAP TechEd 2020. My name is Katrin von Ahsen. I'm a product manager for intelligent enterprise technology at SAP. Today I have with me Enrique and Francisco from Chevron. Enrique, would you like to introduce yourself? Thank you, Katrin. My name is Enrique Barrantes.
I'm an ERP API and integration product manager for Chevron. And Francisco, would you like to do so as well? Hello, everyone. This is Francisco Grosso and I'm an integration architect for the digital program at Chevron.
Both will show us later on during the presentation how they have applied the integration methodology at Chevron. But before delving into the detail, let's take a quick look at the agenda. First, I will start with the integration methodology for the intelligent enterprise and then I would like to walk you through the use cases of the SAP Integration Solution Advisory Methodology, then I would like to hand over to Enrique, who will actually walk you through the integration strategy at Chevron. Finally, we will wrap it up with the key takeaways.
So let's get started with the introduction regarding the bigger picture of our integration methodology. this year SAP has published the white paper, Intelligent Enterprises are Integrated Enterprises, which outlines SAP's plans for delivering an integrated intelligence suite. The key pillars of this integration strategy are the so-called suite qualities which help us to deliver a truly end-to-end integrated business processes to our customers. The key integration technology of this Integrated Suite is SAP Cloud Platform Integration Suite. This solution offers a wide choice of integration capabilities which helps you to integrate SAP partner applications and also third party applications. The third pillar of this strategy is the SAP Integration Solution Advisory Methodology.
And this will be the focus of today's session. This methodology helps you to define and execute an integration strategy for your organization. Last but not least, SAP also offers integration services for you which helps you actually to become an intelligent enterprise along your journey.
So let's take a look at the today's integration situation at our customers around. we see actually that the application landscapes are fast evolving, the scope of integration is increasing. even though we're aiming to deliver end-to-end integrated business processes, there are lots of other digital transformation projects, merger, and acquisition activities, internet of things, industry 4.0 activities, in today's organization which constantly increases the scope of integration.
it's really quite challenging for enterprise architects for instance to define the future integration architecture, which was able to cope with all this new integration requirements. Another challenge is actually to define in hybrid integration platform which can support the current integration requirements but is also open to technical and integrate the new integration requirements residing out of all these projects. The third aspect is for instance integration governance. it's not enough just to introduce an integration solution and to define an integration strategy, you need to execute on that. And here actually are some governance processes and organizational aspects have to be taken into account.
This leads to the fourth aspect which is about the agility and to enable a practice of enablement to scale out actually the integration knowledge across and even beyond your organization. And all these actually influence by the customer context. For instance, the overall enterprise architecture strategy, the future application, landscape and so on, significantly impacts how you shape and define an integration architecture and how you, for instance, shape an integration platform. And this is actually quite a challenging activity to get this all sorted out.
So for this purpose, SAP has introduced the SAP Integration Solution Advisory Methodology. this is a simple approach for defining and also executing an integration strategy. let's take a quick look at the building blocks. the first aspect is here that we offer an agnostic framework which helps you to define and execute an integration strategy which is tailored to the needs of your organization.
Technology agnostics means here in this context that it's an open framework which can apply to SAP integration technology, but also to integration technologies and applications from other vendors. The second major pull out of this framework is that we deliver accelerators along that. For instance, integration use case patterns, architecture blueprints, integration best practices, which you can simply reuse or adapt and extend to cover specific requirements too. The third aspect is actually that this methodology covers all integration dimensions in today's hybrid and diverse environments. this means SAP and non-SAP applications, legacy applications, all types of integration fonts you are managing to integrate with data, with processes, with things and more. So moving on to the use cases of the SAP Integration Solution Advisory Methodology.
So it's not only the methodology which we are offering, but also a structured approach for adopting the methodology. here we can actually see provide a well-defined path for adopting the methodology starting with an assessment after integration strategy. here you can actually revisit your current integration strategy if it still meets your today's requirements. In the second step, you can design your hybrid integration platform. So here this is actually not typically something you just procure a single integration solution and implement. It's in most cases a combination of server integration services and technology which you leverage in orchestration.
The third use case actually to define integration best practices. So you need to provide guidance and gap rates to your integration developers, which makes sure that all these integrations are implemented in a consistent fashion. Last but not least, the use case, enable a practice of empowerment, covers the organizational dimension of integration. So how to make sure that this knowledge is spread across your organization and even beyond your organization boundaries to what third party system integrates, and some more, and how to involve your lines of business users and to empower them to develop some integrations within their area of responsibility too.
let's take a look at the first use case, to assess your integration strategy. that's an example from the framework which you can simply use and apply to assess your enterprise integration strategy. at some high level of coupling on the level of integration domains. Integration domains are typical integration areas within an application landscapes, for instance, on-premise to on-premise integration or on-premise to cloud integration when you're starting consuming cloud-based applications and depending on your strategy, you might also look to integrate with So physical things from the internet or things or to connect with user-centric applications for instance mobile devices. The second step of the scoping approach for performing the integration strategy assessment, is to look at the integration style.
So these are archetypes of integration, which you can see across our customer base. For instance, process integration or to integrate this data to synchronize data between business applications or to integrate user-centric applications like mobile apps with business applications. once you have done the first high level scoping of data integration styles, you can further detail it on the level of integration use case patterns.
So here we deliver you a catalog of predefined use case patterns which helps you to identify the integration use cases within your organization. For instance, for the process integration area, we have A2A integration, so application to application integration, master datas integration, B2B, so referring to business to business integration, and B2G for business to government integration. all these use cases have specific integration requirements and requires in some cases dedicated integration technologies.
At the bottom, you can see the cross-use cases. these are the ones which cannot be related to a single integration styles, for instance, API managed integration can be used for process integration scenarios and also, for instance, for user-centric integration use cases. Moving onto the next use case of the integration solution advisory methodology. here you design actually your hybrid integration platform and this is done to perform technology mapping. the integration styles and use case patterns of scope before can now be mapped to the respective integration technologies.
For instance, on an enterprise service plus, integration platform as a service offering and more. And as you can see, you can leverage a single integration technology for server use case patterns or in turn some use case patterns require more than one integration technology. The third use case is about defining integration best practices.
And I think that's one of the key values of our framework that we deliver, predefined best practices. So common best practices we gain from our various customer projects. So here to give you an example common do's and don'ts which can act as guard rails for your integration developers to build integrations following certain standards.
here I have depicted the ones for the process integration styles, for instance, to consider security requirements or to design fault-tolerant integration scenarios and more. So you can use these do's and don'ts as a starting point and enrich these with custom ones as needed. Furthermore, we also deliver architecture blueprints for these use case patterns with our framework. So which illustrate how several integration technologies are used in orchestration for one integration use case pattern. These are also complemented with decision criteria and selection criteria which makes it more easier for you to identify the right implementation case for your integration requirement. The fourth use case about the enable a practice of empowerment, covers all the organization aspects, for instance, to introduce an integration center of excellence to institutionalize integration rules.
So it's not only the common integration rules you know, like the classical integration developer integration administrator. you can also think of new integration rules from the lines of business users for instance. And the last aspect is to introduce integration governance to make sure to introduce right quality assurance processes and governance processes to make sure that everything is implemented and to meet what you have defined to fall in your integration strategy.
Having said that, I would like now to hand over to Enrique, who will walk us or get started with the integration strategy of Chevron. Thank you very much Katrin. So I'm just going to work very quickly, Francisco and I and we'll give you a little bit of a taste of how all those SAP do's and don'ts and best practices help us to define our integration strategy at Chevron. And before we start giving you an overview of how we apply these integration methodology solution for Chevron, just give you a quick overview about Chevron.
So Chevron is the second largest oil company in the United States. We are around 51,000 employees, 2.7 million barrels that changes from day to day and has 1.7 million barrels per day
in the refining capacity. So huge company all over the world with a lot of challenges, not only in processes but also in integrations and that's why we needed that help. Some of the Chevron detailed imperatives that we have as an overarching strategy are defining these six main principles or pillars.
So, one, is that data is a Chevron asset, second of all, is connect through APIs. That's something that many companies are following today. Security by design and detail platforms.
Also we have a good partnership with Microsoft and that's why we're selecting Azure first. So this is an important point that we will share with you in a few seconds. And last but not least is be agile.
So in this world where the technology is changing very fast, we're choosing to be as agile as possible to adopt all these new technologies. Having said that, we are here to highlight one of the main capabilities or design imperatives which is connect through APIs. Just as many other companies our principle is API first but not only.
So we understand the API world is a vehicle where we can easily communicate and connect with business partners or internal functions and will simplify our integration landscape and it will give you more bank power above in terms of total cost of ownership. So definitely something that we're pursuing just like Amazon is that a long, long time ago and we're moving along that direction. In our business, in the oil and gas industry, in Chevron, just like any other oil industry, we divide our businesses in three main segments, which is upstream, which is, as you can see exploration and produce all the oil and gas and all that midstream which involves a lot of transportation. We have our shipping company-- very huge company here at Chevron, and refine and market which is very complicated processes to refine all that hydrocarbons and put it into the market.
And obviously all this information that moves back and forward between all those processes are through three integrations in mainly APIs You will see some of the integration principles that we have in Chevron that align very close to what SAP offers as best practices. So you can see there is decoupling obviously. Loosing coupling and make sure that we can connect with all our different functions. Reusability, that's huge for us. It's very easy to end up repeating or duplicating integrations to satisfy different business needs.
So this is a key point for us to keep the total cost of ownership low. And interoperability, we want to make sure that it performs properly, that is accurate, that is securely, and it's efficiently. And I wouldn't go through all those 10 points in here.
But you can see that many of the principles that SAP offers in their methodology already aligned with what we already have in our methodology. I'm just going to quickly introduce one big project that we are part of it, Francisco and I. And that's where we are now and where we're trying to go and why the reason to engage SAP in helping us out to define our integration strategy. So where are we now within the whole ECC aspect of SAP? Having two ERPs, SAP and Oracle, JD Edwards, and where are we going is to SAP S/4HANA of course. Well, some of the why's, is because we want increase the speed and agility and tap all those business capabilities that the ERP can offer to us. And we are trying to do this through all these process and technology.
So this project is big. It's planning to go across all different regional locations and different users. So we have a long way for us to go. And definitely integration is a very key concept that we need to make sure that we enable properly. So for that I'm going to hand that over to Francisco that he's going to explain you how we were comparing our existing integration strategy with what SAP has to offer and how we come up with our solution. Over to you Francisco.
Thank you Enrique. The integration solution advisory methodology help us to first identify the domains for our integrations. As Enrique mentioned, Chevron is a big company, a global company. And their integrations are from on-prem to cloud, to business to business, business to government and from SAP to non-SAP. So it's a very complex landscape and we needed some help to identify those domains and based on that define our use case that we are going to see now. So here is a brief overview of the digital core integration strategy.
The main goal of our digital code integration strategy is to leverage out of the box SAP integrations. As Enrique mentioned before, we are going into a war with SAP S/4HANA as our main ERP and we want to leverage as much out of the box API integration as we can. This is to increase the time to production, to reduce error, and to increase usability.
We have the following integration partterns we have APIs and services, messaging and data integration as our main integration pattern Our guiding principles for a digital platform strategy is to first loose coupling. These need to have interfaces that as microservices that they don't have as many dependencies as before. Another one is to increase the usability to maximize reuse. And the last one is to have interoperability, to have multiple subscribers.
So as I was mentioning before, Chevron has integration with many, many SAP and non-SAP applications. We needed to make sure that we have our strategically aligned for all those domain. And the SAP will actually help us to reach that goal. So we have all decision matrix which is what help us to find the best partner for each use case. Basically we want to leverage as much as we can for APIs.
And the messaging parttern we want Chevron to be driven by events, integrations. But in some cases, we need to use some data integration tools because the data that we are moving is too big to be moved using APIs. So we use a data integration pattern. One key piece of the methodology is to set up a governance in place, an API integration governance. And here in Chevron, we need that as part of our digital imperative to connect through APIs. So the different really great and assigned teams are following this guidance coming from the API integration governance which basically consists of enforcing SAP standard through SAP Cloud Platform Integration, Enterprise Messaging and API Management.
We have some exiting SAP ECC integration that need to go to production. So we are enforcing those teams to follow the new and future SAP S/4HANA canonical for those integration. So this is our digital core integration roadmap. And in a roadmap, we have as the main tool, SAP Cloud Platform API Management, Cloud integration, and SAP API Business Hub.
The last one is the most important for us because in there, we can find an integration content, out of the box offer by SAP, which is what we want to use and deploy in our Chevron. The select messaging tool is SAP Cloud Platform Enterprise Messaging we want to leverage the events in the back end as much as we can and connect that with our partners. For later integration, we are using SAP Smart Data Integration for data integration, SAP Landscape Transformation Replication Server for data migration and transformation. And the same for data services.
We are using SAP Cloud Platform Integration for data services to connect to our SAP Integrated Business Planning tasks. Now, heading back to you, Katrin, for the key takeaways. Thanks, Francisco, for these very useful and helpful insights, how Chevron has adopted the Integration Solution Advisory Methodology.
let's wrap up the session with the key takeaways. the SAP Integration Solution Advisory Methodology, helps you to raise the integration that true to level of your organization. You can start rather simple with adopting the use cases one by one. So in a step wise fashion. You just can focus on the topics and aspects which are relevant for your organization. for instance just line it and look at the process integration style for instance or just for particular integration use case patterns.
as you have seen, we deliver proven best practices and accelerators with a framework. we have a set of vendor agnostic best practices as you have seen with integration do's and don'ts which I have presented. But we also have SAP integration products to specific best practices available within our framework to do. last but not least, the methodology helps you really to establish integration as a recognized discipline. integration is actually a key enabler of digital transformation projects. Actually the white paper from SAP indicates the same that intelligent enterprises are integrated enterprises, integration is always a requirement or prerequisites for taking it to the next step or level to gain some business insights out of that.
with that, let's take a look at further sessions at SAP TechEd which are related to integration aspects. So I would highly recommend to check out here the session CIO guides for cloud and hybrid integration architectures. You have seen that Chevron has also referred to these guides and we have some updates about these guides.
So check it out the session. An update on the integration strategy, where we will walk you through the single suite qualities and integration technology concepts related to that. We have also a session about integration design guidelines and patents.
So this is actually for the ones of you who leveraging SAP Cloud Platform Integration Suite. So here we have really, product-specific best practices for designing and defining enterprise grade patterns. if you're looking for more information about the methodology as such, you may check out our public learning page at sap.com/integration-methodology. So for the one's of you who are looking to continue your learning experience at SAP TechEd, you may check out here the related offerings which helps you actually to grow new learnings at SAP Learning Hub. there are plenty of materials available also for the intelligent enterprise for the integration strategy and our integration technology portfolio which is SAP Cloud Platform Integration Suite.
And with that, I would like to thank you for joining the session and also would like to thank you Enrique and Francisco for sharing their insights how Chevron has adopted and applied the SAP Integration Solution Advisory Methodology for really improving the integration at Chevron along SAP S/4HANA implementation project. Thank you for your interest in the session and wish you all the best and goodbye. [MUSIC PLAYING]