1 / 34

CHAPTER 3

CHAPTER 3. ENTERPRISE SYSTEMS ARCHITECTURE. Learning Objectives. Examine in detail the enterprise systems modules and architecture . Understand the implication of good architecture on ERP implementation .

robertcmcdonald
Download Presentation

CHAPTER 3

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 3 ENTERPRISE SYSTEMS ARCHITECTURE

  2. Learning Objectives • Examine in detail the enterprise systems modules and architecture. • Understand the implication of goodarchitecture on ERPimplementation. • Know the various types of ERParchitectures and the related benefits and drawbacks of each architecture. • Learn about the ServiceOrientedArchitecture and its impact on ERPsystems.

  3. Preview • Once ERP systems are integrated and implemented successfully in a company, they become the cornerstone of the organization because every single transaction will be processed through this system. • In addition to the Systems Integration, it is also necessary to focus on: • Business process architecture. • Businessrequirements. • Budget. • Project management. • Commitments from top management. • Continuous communication with employees informing them about future changes. • ERP implementation isn’t just about system software. It is easy to install new system. The hard part is changing the business processes of the people who will use the system. (nobody likes process change, particularly when they don’t know what is coming).

  4. Why Study Enterprise Systems Architecture? • ERP architecture should provide a foundation for both the functional and the technicalneeds of the organization and adopt the future business challenges. • Thus we should understand the ESA as it will: • Help management and the implementation teams understandin detail the relationship between complex IT (Hardware, Software, people) and complex organization components such as company structure, business rules, people. This will help • Managers and implementation teams understand in detail the feature and components of Enterprise System. • Provide a visual representation of the complex system interfaces among the ERP application and databases, operating systems, legacy applications, and networking. • Management can develop a better IT plan if the system infrastructure requirements, training requirements, change management requirements, and business process reengineering requirements, among others are clarified.

  5. Enterprise Systems Architecture (ESA) Model • Enterprise System Architecture can be viewed from two different angles: • Functional angle: define ERP modules that support the various business functions. • SystemAngle: defines the ERP architecture through the physical components of Hardware, Software, and networking.

  6. ERP Modules • The key role of an ERP systemis to provide support for such business functions as accounting, sales, inventorycontrol, and production. • ERP provides the same functionality to the users(the silo system to the users), but the data is integrated or sharable across all the ERP modules. Means, data needs to be entered into the system once, and depending on the organization’s business rules, it is made available to users either inside or outside the organization. • ERP vendors, including SAP, Oracle, and Microsoft provide modules that support the majorfunctionalareas of a business (accounting, production, financialmanagement, HR, salesorderprocessing, and Procurement) to implement businessprocesses for these functions. • The ERP software set in the best business practices that implement the organization’s policy and procedure via business rules.

  7. ERP Modules From Three Vendors

  8. ERP Modules From Three Vendors (Cont’d)

  9. Overview of Modules • Production Helps in the planning and optimizing of the manufacturing capacity, parts, components, and material resources using historical production data and sales forecasting. • Purchasing Streamlines the procurement process of required raw materials and other supplies. It automates the processes of identifying potential suppliers, negotiating price, awarding purchase orders to the supplier and billing processes. • Inventory Management Facilitates the processes of maintaining the appropriate level of stock in a warehouse

  10. Overview of Modules (Cont’d) • Sales and Marketing Implements functions of order placement, orderscheduling, shipping, and invoicing • Finance Can gather financial data from various functional departments and generate valuable financialreports • Human Resource Streamlines the management of humanresources and humancapitals. HR modules maintain a complete employee database including contact information, salary details, attendance, performance evaluation and promotion.

  11. Benefits of Key ERP Modules • Self Services • Enable flexiblesupport for employees’ businessfunctions with view of information tailored to their needs • Simplifiedaccess to relevant information • Performance Management • Delivery of real-time, personalizedmeasurements • Access to such information as business statistics and key performance measurements • Financials • Ensure predictability of business performance • Gain deeperinsight across the enterprise • Automate accounting and financial SCM • Rigorous support for financial reporting

  12. Benefits of Key ERP Modules (Cont’d) • HR Management • Attract the right people, develop and leverage their talents, alignefforts with corporate objectives, and retain top performers • Increase efficiency through using standardized and automated employees processes • Enable creation of project teams based on skills and availability, monitor progress on projects, track time, and analyze results • Procurement and Logistics Execution • Costsavings for all spending categories by automation such as routine tasks • Reducecosts through process automation, integration of suppliers, and better collaboration • Improveresourceutilization (RFID and bar codes) • Enhanceproductivity of incoming and outgoing physical goods movements • Reducetransportationcosts through better collaboration

  13. Benefits of Key ERP Modules (Cont’d) • Product Development and Production • Shorten time to market • Deliver higher quality products and ensure timely delivery • Improve visibility in realtime (availability check) • Sales and Service • Higher numberofsalesorders processed and reducedadministrativecosts • Easyaccess to accurate, timelycustomerinformation • Cost-effective mobileaccess for field employees • Reducetravelcosts by using onlinefunctions • stick to environmental, health, and safety reporting requirements

  14. ERP Architecture • ERP applications are most commonly deployed in a distributed and often widely dispersed manner. While servers maybe centralized, the client are usually spread to multiple locations throughout the enterprise. • ERP system architecture is organized in layers or tiers to manage system complexity in order to provide scalability and flexibility via plug-n-play systems capability. • If server is capable of handling10users simultaneously on a simple two layer client server architecture, your network will be limited to only 10 users. By adding one more layer of a server in the middle (assuming this server handle 10 users) you can scale the number of users to 100 without replacing the original server or client. This is an example of hardware layering. This why N-tier client server architecture is other term to describe ERP. • Traditional ERP architecture generally has three layers, with each responsible for a particular system function. • Data Tier (responsible for Data Management): provide central repository for all the data that is shared • Business Tier (provide components to apply business logic of functional modules). The components are reusable objects of business process rules. • Presentation Tier (responsible for End-User Interface—GUI) • The business tier feeds data into the presentation tier.

  15. Layered Architecture Example • The Layered ERP architecture generalizes the functional layers to allow it to change with newer technologies. • A Web-based user interface is provided. • Users can access the application via the Internet. • The PC needs to be capable of running a Java-enabled web browser (Explorer). The user interact with JVM interface layer to establish secure connection through secure socket layer (SSL) connection. • The user communicating with the server through the applicationssoftwarelayer (ASL), where all business process logic and functionality are resides for either manufacturing, distributing, etc. • Three tiers are provided. • The datatier focus is on structure of all organizational data and its relationships with both internal and externalsystems. • The database access layer (DAL) extract the data from the database for ERP modules. • The application tier consists of a Web browser and reporting tool where business processes and end-users interact with the system. • Via the presentation tier, a Web-based portal allows users the ability to access and analyze information through their Web browser.

  16. Example of InfoNet Architecture

  17. Types of ERP Architectures • Two-Tier Architecture • The server handles both application and database duties. The clients are responsible for presenting the data and passing user input back to the server. • Benefits • Easy-to-use and access to information and services • Lowcost in terms of infrastructure requirements • Highperformance with a limited number of workstations • Drawbacks • Inflexible in terms of adding more clients and software • Requires expensivemiddleware for integration • Changes or modifications in database affect applications • Limitedflexibility in moving program functionality from one server to another

  18. A Two-Tier ERP Architecture

  19. Types of ERP Architectures (Cont’d) • Three-Tier Architecture (for thousands of users) • The application, database, and presentation layers are separated into independent operating units. The layers are independent, but they are communicate with each other through standard interfaces such as Application Programming Interface (API), ODBC, JDBC,...There is no requirement for middleware in this architecture. • The 3-tiers arch allocate the middle layer for applications to run on a shared host environment rather than in the client environment. • Application layer dose not drive the GUI, rather it shares business logic , computation and dataretrieveengine. • Benefits • Scalability - Easier to add, change, and remove applications • Reliability - Implementing multiple levels of redundancy • Flexibility - Flexibility in partitioning is very simple • Maintainability - Support and maintenance costs are less on one server • Reusability - Easier to implement reusable components • Security - IT staff has more control system to provide higher security • Drawbacks • Can be very expensive and complex.

  20. A Three-Tier ERP Architecture

  21. Web-Based Architectures • Web (Internet) -based architecture often described as a fourthtier where the Presentation tier is split into WebServices tier and WebBrowser tier. • The functionality is supported by the following Internet access technology: • Web server – ERPPortal – BackendServerIntegration – BrowserPlugIn or Applets • Using Internet Architecture, end users can access ERP applications over the web browser, as well as more easily integrate their applications with existing internal system and external trading partner system. • The Internet architecture can be servercentric (only need access to the Internet and a standardbrowser) or clientcentric (need installation of Software Development Kits (SDK)). • Benefits • End-users have access to ERP applications over the Web. • Easily integrate ERP applications with existing systems. • Server-centric—No complex, expensive client software installation. • Client-centric—Architecture has betterresponsetime because user requests are mostly processed on the client’s computer. • Web-based architectures also allow better system-to-system integration. • Drawbacks • Client-centric architectures lack security.

  22. Example of PeopleSoft’s Server-Centric Internet Architecture

  23. Service-Oriented Architectures • Also known as object-oriented architectures for Web platforms. It is a collection of services (functions) to support ERP functional module. They can be individually be distributed anywhere in the system; however, SOA encourages these services to fulfill with certain design principles, yet to evolveindependently from each other. • SOA goes beyond sharing basic data and methods to sharing businesslogic • Breaks the business tier into smaller, distinct units of services, collectively supporting an ERP functional module • Allows message interaction between any service consumer and service provider • A consumer from a device using any operating system in any language can use this service.

  24. A SOA Architecture • SOA is a software development model based on a contract between a consumer (client) and provider (server) that specifies the following: • Functional description of the service • Input requirements and output specifications • Precondition environment state before service can be invoked • Post condition environment state after service has been executed • Error handling when there is a breakdown

  25. Benefits of Service-Oriented Architectures SOA offers the following benefits over traditional approaches to distributed computing: • Business-levelsoftwareservices across heterogeneous platforms • Complete location independence of business logic • Services can exist anywhere (any system and any network) • Loosecouplingacrossapplicationservices: The consumer of the service is required to provide only the stated data on the interface definition, and to expect only the specified results on the interface definition. The service is capable of handling all processing (including exception processing). • Granular authentication and authorization support • Dynamic search and connectivity to other services

  26. Benefits of Service-Oriented Architectures (Cont’d) Short term benefits of the SOA are: • Enhances reliability of the architecture • Reduceshardware acquisition costs • Leveragesexistingdevelopmentskills • Accelerates movement to standards-based server and application consolidation • Provides a databridge between incompatible technologies

  27. Benefits of Service-Oriented Architectures (Cont’d) Long term benefits of SOA: • Provides the ability to build compositeapplications • Creates a self-healing infrastructure that reducesmanagementcosts • Provides truly real-timedecision-makingapplications • Enables the compilation of a unified taxonomy of information across an enterprise

  28. Benefits of Service-Oriented Architectures (Cont’d) Business value benefits of SOA: • Increases the ability to meetcustomer demands more quickly • Lowercosts associated with maintenance of technology • Empowersthemanagement of business functionality closer to the business units • Leveragesexistinginvestments in technology • Reducesrelianceonexpensivecustomdevelopment

  29. Drawbacks of Service-Oriented Architectures • SOA implementations are costly and time-consuming • Requires complexsecurityfirewalls in place to support communication between services • Performance can be inconsistent

  30. Drawbacks of Service-Oriented Architectures (Cont’d) • Requiresenterprise-levelfocus for implementation to be successful • Securitysystem needs to be sophisticated • Costs can be high because services needs to be junked very often

  31. Implications for Management • Enterprise architecture is an important technology for the long-term functioning of the organization. • ERP architecture decisions are complex because their impact goes beyond systems and technology to people, organizational policy, and business processes. • ERP architecture must be flexible to support a diverse set of hardware and software platforms. • Management must learn how to filter out the hyped technologies that do not provide value to their organization.

  32. Summary • Major vendors provide modules to support basic business functions as accounting, finance, marketing, and HR to such advanced business functions as self-service, compliance management, and business intelligence. • ERP systems have traditionally been organized in three-tiers: data, application, and presentation. • There are various types of layered architecture. • Two-tier architecture is the simplest form. • Three-tier architectures separate application from the presentation layer. • Web-based architectures facilitate better integration with Internet technologies.

  33. Summary (Cont’d) • Service-oriented architecture separates the service provider from the service consumer. • Object-oriented system architectures have a higher degree of separation. • Top management must therefore be involved in designing the architecture from the very beginning of the ERP implementation project.

  34. Review Questions • What is necessary for the ERP implementation to be successful? • What is ERP system architecture? • Why is it important to have good enterprise system architecture? • What is the role of architecture in ERP implementation? • List five of the major functional modules of ERP. • Discuss the different types of ERP architectures. • List benefits and limitations of one ERP architecture. • What is service-oriented architecture and how is it different from Web services architecture? • What are the key benefits and limitations of systems integration? • What is the role of management in designing enterprise systems integration?

More Related