IST 421 Advanced Systems and Enterprise Integration Week

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IST 421: Advanced Systems and Enterprise Integration Week 10

IST 421: Advanced Systems and Enterprise Integration Week 10

Enterprise Systems Landscape Source: Modi and Mabert, 2011. The Enterprise Systems Industry Landscape. Handbook

Enterprise Systems Landscape Source: Modi and Mabert, 2011. The Enterprise Systems Industry Landscape. Handbook of Research in Enterprise Systems. Sage Publications

Enterprise Systems Landscape Source: Modi and Mabert, 2011. The Enterprise Systems Industry Landscape. Handbook

Enterprise Systems Landscape Source: Modi and Mabert, 2011. The Enterprise Systems Industry Landscape. Handbook of Research in Enterprise Systems. Sage Publications

SAP Enterprise Systems Suite 4 Source: SAP

SAP Enterprise Systems Suite 4 Source: SAP

Enterprise Resource Planning 5 Source: SAP

Enterprise Resource Planning 5 Source: SAP

ERP Evolution � � MRP: Materials Requirement Planning � Calculates and maintains an optimum

ERP Evolution � � MRP: Materials Requirement Planning � Calculates and maintains an optimum manufacturing plan based on master production schedule, sales forecast, inventory status, open orders, and bills of material � MRPII allowed continuous adjustment in production schedules due to fluctuating sales forecasts ERP: Enterprise Resource Planning � � Extended ERP � � Integrated application to manage all resources across all functional areas Includes other software and business processes, such as CRM, SCM, PLM etc. to integrate with supply chain SAAS: Software As A Service � ERP system hosted at vendor site over the internet � Uses Multi-tenancy as the architectural model that allows vendors to serve multiple clients (or tenants) from a single shared instance of the application 6

ERP Platforms Source: Panorama Consulting 7

ERP Platforms Source: Panorama Consulting 7

ERP � Focus primarily on internal operations of an organization � Integrate functional and

ERP � Focus primarily on internal operations of an organization � Integrate functional and cross-functional business processes � Usually sold in modules, or groups of related programs that perform a major function within an ERP system 8 Source: Panorama Consulting

ERP: Pros and Cons � � Advantages � ERP vendors offer industry best practices

ERP: Pros and Cons � � Advantages � ERP vendors offer industry best practices by building them into their products � Help intra- and inter-enterprise integration � Give business process view and break functional silos Challenges � Impose a standardized way of conducting business processes � Employees may find systems difficult to use, too restrictive, and inflexible � Ongoing maintenance, upgrades and ability to change with changing business needs requires an enormous effort and cost (“ERP treadmill”) 9 Source: Panorama Consulting

Why ERP? Source: Panorama Consulting

Why ERP? Source: Panorama Consulting

ERP Customization 11 Source: Panorama Consulting

ERP Customization 11 Source: Panorama Consulting

ERP Market � � Tier 1 � Companies with 1000+ employees � MNCs, Fortune

ERP Market � � Tier 1 � Companies with 1000+ employees � MNCs, Fortune 500, government entities, companies with sales over $250 m Tier 2 � Mid-sized companies with 100 -999 employees and revenue of $20 - $250 m � Largest of all tiers in terms of potential customers � SAP By Design, SAP All in One Tier 3 � Small, single-site firms, mostly family-run � Sales < $40 m and less than 100 employees � Have outgrown Peachtree and Quickbooks � May use Microsoft Dynamics GP, Netsuite, Made 2 Manage, SAPBusiness One Tier 4 ERP � 12 Small companies that have basic accounting packages such as Peachtree, Accpac, Quick. Books ERP Vendors Tier II SAP Epicor Oracle Sage Oracle e. Business Suite Infor Oracle JD Edwards IFS Oracle Peoplesoft QAD Microsoft Dynamics Lawson CDC Software Tier III ABAS Activant Solutions Inc. Bowen and Groves Compiere Exact Net. Suite Visibility CGS Hansa World Consona Syspro

SAP Evolution 13

SAP Evolution 13