Enterprise resource planning (ERP)

1. Enterprise resource planning (ERP)

2. ERP • integrate (or attempt to integrate) all data and processes of an organization into a unified system • use multiple components of computer software and hardware • use of a unified database to store data for the various system modules • attempt to cover all basic functions of an organization http://en.wikipedia.org/wiki/Enterprise_resource_planning

3. ERP • a software package generally would only need to provide functionality in a single package that would normally be covered by two or more systems. e.g., payroll and accounting functions would be considered an ERP software package. • eliminates the need for external interfaces previously required between systems

4. Three Tier Software Architectures Emerged in the 1990s to overcome the limitations of the two tier architecture • user interface (client) • process management where business logic and rules are executed and can accommodate hundreds of users • data management (server) components Increased performance, flexibility, maintainability, reusability, and scalability, while hiding the complexity of distributed processing from the user Source: Software Engineering Institute (SEI) at CMU http://www.sei.cmu.edu/str/descriptions/threetier.html

5. Middle process management tier • control transactions and asynchronous queuing to ensure reliable completion of transactions [Schussel 96]. • manages distributed database integrity by the two phase commit process (Database Two Phase Commit). • provides access to resources based on names instead of locations, and thereby improves scalability and flexibility as system components are added or moved [Edelstein 95].

6. User System Interface (such as session, text input, dialog, and display management services) Processing Management (such as process development, process enactment, process monitoring, and process resource services) Database Management (such as data and file services) Two Tier Software Architectures

7. Sample Modules • Manufacturing • Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow • Supply Chain Management • Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation • Financials • General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets • Projects • Costing, Billing, Time and Expense, Activity Management • Human Resources • Human Resources, Payroll, Training, Time & Attendance, Benefits • Customer Resources and Marketing • Sales and Marketing, Commissions, Service, Customer Contact and Call Center support • Data Warehouse • and various Self-Service interfaces for Customers, Suppliers, and Employees

8. Advantages • Integration: • design engineering (how to best make the product) • order tracking from acceptance through fulfillment • the revenue cycle from invoice through cash receipt • managing interdependencies of complex Bill of Materials • tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced) • the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level. • Computer security

9. Disadvantages • Inadequate investment in ongoing training • Undercapitalized - ERP system is often operated by personnel with inadequate education in ERP

10. Risks • Personnel turnover • Customization of the ERP software is limited • Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage • very expensive to install • ERP vendors can charge sums of money for annual license renewal • Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. • too rigid and too difficult to adapt to the specific workflow and business process of some companies

11. Risks (cont.) • Systems can be difficult to use • Can suffer from the "weakest link" problem • Many of the integrated links need high accuracy in other applications to work effectively • Switching costs are very high • Blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale • Resistance in sharing sensitive internal information between departments • Compatibility problems with the various legacy systems of the partners • The system may be over-engineered relative to the actual needs of the customer

12. SAP • Systemanalyse und Programmentwicklung • founded in 1972 by five former IBM engineers in Mannheim, Germany • Later changed to • Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications And Products in Data Processing") • SAP is the largest software company in Europe and the third largest in the world

13. holds a partnership with Hewlett-Packard • new services linked to NetWeaver and Enterprise SOA (service-oriented architecture)

14. SAP R/3 • "R" - realtime • 3 - 3-tier architecture: database, application server and client (SAPgui)

15. SAP Users .. • HERO HONDA MOTORS LTD. • New Delhi–based Hero Honda, established in 1985 as a joint venture between Hero Group of India and Honda of Japan. • The world’s largest two-wheeler manufacturer. • Use mySAP™ Supplier Relationship anagement • integrate and automate its large and complex supply chain --better respond to customer changes, cut time to delivery, and eliminate waste. • In the past 6 years, its sales volume has grown by 400%.

17. Enterprise Applications & Business Solutions Enterprise Applications mySAP Business Suite • mySAP Customer Relationship Management • mySAP ERP • mySAP Product Lifecycle Management • mySAP Supply Chain Management • mySAP Supplier Relationship Management • Duet • SAP Manufacturing • SAP Service and Asset Management • SAP xApps Composite Applications • SAP xApp Analytics • SAP xApps for Mobile Business Business Solutions SAP Solutions for Governance, Risk, and Compliance SAP Solutions for Information Workers • Small Business Solutions • SAP Solutions for Midsize Companies • SAP All-in-One • Solution Extensions

18. Example • mySAP Supply Chain Management • http://www.sap.com/usa/solutions/business-suite/scm/index.epx • LSI Logic: Synchronizing Supply with Demand

19. mySAP Supply Chain Management - Release 2005- Solution Map • http://www.sap.com/global/scripts/jump_frame.epx?content=/businessmaps/5F7358118AA6D511B1A80090270F6F87.htm&CloseLabel

20. SAP NetWeaver Visual Composer • SAP NetWeaver Visual Composer: Enabling Embedded Business IntelligenceExplore how SAP NetWeaver Visual Composer allows you to present data in a user-friendly interface, explore data for further analysis, and compose model-based applications without manual coding. Watch the demo. • http://www.sap.com/usa/platform/netweaver/demos/index.epx -- see demo

21. SAP NetWeaver BI: Web-Based Data Analysis • SAP NetWeaver BI allows users to access business intelligence data in a familiar Web browser, and easily define and manage queries. • http://www.sap.com/usa/platform/netweaver/demos/index.epx - Watch SAP SAP NetWeaver BI

22. mySAP Customer Relationship Management • acquiring and retaining customers • improving customer loyalty • gaining customer insight • and implementing customer-focused strategies

23. mySAP CRM Demo • http://www.sap.com/cdrp/index.epx?type=flash&collateral=%2fdemos%2fflash_detection.epx%3fswfUrl%3dgreen%2cformat%2chttp%3a%2f%2fwww.sap.com%2cxml%2fCRM_LSP_displayCRM.xml%2ctrue

24. ASSET LIFECYCLE MANAGEMENT CAMPUS SOLUTIONS CUSTOMER RELATIONSHIP MANAGEMENT ENTERPRISE PERFORMANCE MANAGEMENT ENTERPRISE SERVICE AUTOMATION (PROJECT MANAGEMENT) FINANCIAL MANAGEMENT HUMAN CAPITAL MANAGEMENT SUPPLIER RELATIONSHIP MANAGEMENT (PROCUREMENT) SUPPLY CHAIN MANAGEMENT Oracle's PeopleSoft Enterprise Applications http://www.oracle.com/applications/peoplesoft-enterprise.html

25. Enterprise Manager • Applications Management • Application Management Pack for Oracle E-Business Suite • Application Management Pack for PeopleSoft Enterprise • Application Management Pack for Siebel • Middleware Management (see slide 29) • Database Management • Heterogeneous Support • Manage Oracle and Non-Oracle Technologies within a Single Console

26. Real App. Clusters • Manageability • Partitioning • Content Database • Records Database • OLAP • Data Mining • Database Vault • Advanced Security • Label Security • Spatial

27. Middleware • computer software that connects software components or applications • used most often to support complex, distributed applications. • web servers, application servers, content management systems, and similar tools that support application development and delivery. • integral to modern information technology based on XML, SOAP, Web services, and service-oriented architecture. http://en.wikipedia.org/wiki/Middleware

28. ORACLE FUSION MIDDLEWARE

30. CK-ERP CRM/ERP/MRP/accounting system with 22 modules - Admin,i18n, ContactMgmt, CRM, CustomerSelfService, VRM, MRP, Warehouse, Inventory,Service, Ledger, BankRec Payables, Receivables, PO, SO, Quotation, POS(Cashier), POS(Mgr), HR, StaffSelfService & Payroll. Open source ERP… http://sourceforge.net/projects/ck-erp

31. Service-oriented architecture (SOA) principles • Reuse, granularity, modularity, composability, componentization, and interoperability • Compliance to standards (both common and industry-specific) • Services identification and categorization, provisioning and delivery, and monitoring and tracking http://en.wikipedia.org/wiki/Service-oriented_architecture

32. SOA- specific architectural principles • Service Encapsulation • Service Loose coupling - Services maintain a relationship that minimizes dependencies and only requires that they maintain an awareness of each other • Service contract - Services adhere to a communications agreement, as defined collectively by one or more service description documents • Service abstraction - Beyond what is described in the service contract, services hide logic from the outside world • Service reusability - Logic is divided into services with the intention of promoting reuse • Service composability - Collections of services can be coordinated and assembled to form composite services • Service autonomy – Services have control over the logic they encapsulate • Service optimization – All else equal, high-quality services are generally considered preferable to low-quality ones • Service discoverability – Services are designed to be outwardly descriptive so that they can be found and assessed via available discovery mechanisms[7]