EAI - Business Case

PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and 168,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion.

PepsiCo's QTG division consists of the Quaker, Tropicana and Gatorade businesses. QTG's powerhouse brands include Tropicana Pure Premium, Gatorade Thirst Quencher, Propel, Quaker Oatmeal, Rice-a-Roni, Cap'n Crunch and Life cereals.

Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

Pepsico OneUp
The PepsiCo One Up Project is to collaborate the whole business in SAP System from the legacy systems. Five Companies Pepsi Cola , Frito lays , Tropicana , Gatorade and Quaker have been merged together to form today’s PepsiCo. This PepsiCo OneUp Project is implementing an integrated technology to empower the real time data and tools access.

Need of EAI in Pesico
PepsiCo understands that, to survive the competition in today's fast paced economy and to reduce its time-to-market, it needs to put an integration solution in place as soon as possible. The integration model should integrate all the existing legacy systems irrespective of the platforms and operating systems that these systems are based upon. The model should take care of the various data formats that would pass through this integration scenario and apply the necessary transformation, translation, and data validation rules upon them. And last, but definitely not the least, this integration solution should be scalable enough such that any new system could be easily plugged into this solution in the future with minimal changes.

The integration model should provide:

• Integration between the various legacy systems
  
• Automated process for procurement of goods
  
• Data transformation and translation logic according to the prescribed rules
  
• Persistent storage mechanism for the data
  
• Validation of business data to a certain extent
  
• Connectivity to various drop zones and databases
  

See the following picture :


As-is scenario, these legacy systems are acting as independent data silos with absolutely no kind of data-sharing happening between them. If the North America SAP system wants to procure something from any of its vendors, it does so by using some kind of manual process at its end. The same scenario is replicated for all the other systems, too. And, this is leading to a lot of data duplication taking place. For example, if two different systems are using the same vendor (say, Vendor A) for procuring beverages, this vendor (Vendor A) information is getting stored at both the legacy systems. Also, this kind of scenario makes it impossible to leverage existing information across multiple systems.

Project Life Cycle
Design and Architecture

The EAI solution proposed would make use of the integration capabilities of the Seebeyond eGate software to seamlessly integrate the various individual legacy systems of the Pepsico company with the SAP-based purchasing order (PO) system.

TIBCO provides the core integration platform, comprehensive systems connectivity, guaranteed messaging, and robust transformation capabilities.




In this scenario, the SAP-based PO system acts as a data hub for all the legacy systems such that all the procurement orders at PepsiCo would be routed through this SAP based PO system. Also, TIBCO is acting as the integration hub between the SAP-based PO system on one end and the legacy systems at the PepsiCo company on the other, thereby enabling a bi-directional flow of data.