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Enterprise systems

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  1. Enterprise systems INFORMATION FLOW Integrating the enterprise through the information system Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Vendor Manufacturing Distribution Store Customer CASH FLOW

  2. Enterprise systems “While the rise of the Internet has received most of the media attention in recent years, the business world’s embrace of enterprise systems may in fact be the most important development in the corporate use of information technology in the 1990s.” Thomas Davenport

  3. Organisational functions A function is a unit in an organisation that carries out a set of related activities. Usually, these activities require special competence or equipment. Examples: Marketing Sales Procurement R&D Systems administration Janitor Course registry Teaching

  4. IS för marknadsföring • System som stödjer försäljning, marknadsföringskampanjer, marknadsanalys, m.m. • CRM (Customer Relationship Management) • System för försäljningsanalys

  5. IS för tillverkning och tjänster • System som stöder inköp, kvalitetskontroll, lagerhantering, produktionsplanering, m.m. • Logistiksystem • Materialförsörjningssystem

  6. IS för ekonomi • System som tillhandahåller finansiell information som underlag för beslut • Intern och extern redovisning • Ordermottagning • Fakturering

  7. IS för personaladministration • System som stöder planering, samordning, administration och ledning av personal • Lönesystem • Kompetensdatabas

  8. Processes A business process is a sequence of activities that result in value for a customer Typically resources from several functions are required to carry out a process

  9. Processes cross functions Systems administration Janitor Course registry Teaching Course

  10. The Value Chain - Activities Firm infrastructure Support activities Human Resource Management Technology development Procurement Inbound logistics Outbound logistics Marketing & Sales Primary activities Operations Service

  11. Stovepipe syndrome IT systems Functions in an organisation Personnel R&D Market/ Sales Production Service Financials Each IT system supports its own function

  12. Integrated IT support Order- handling Product- development Customer- service Financial reporting Financials Personnel R&D Market/ Sales Production Service

  13. Enterprise Resource Planning ERP definition Software solution that addresses the enterprise needs taking the process view of an organisation to meet the organisational goals tightly integrating all functions of an enterprise

  14. Scenario Customer Sales rep. Supplier Order Customer info Purchase order Quote Plant Production order Accounting General ledger ERP

  15. ERP means integration • Processes • Databases • Tools • Applications • Interfaces

  16. Anatomy of an ES Managers Customers Suppliers Reporting Sales force Finan- cials Sales & delivery Back office Manufac- turing Central database Services Inventory Human resource Customer service Employees

  17. Client server architecture Plant Personnel Customer Service Rep Create Production Orders Production Order Accept Customer Order Explode Bill-of- Material Release Production Orders Build Products Reserve Material Schedule Production Customer Order Material Task Part Confirm Delivery WAN Presentation Internet Application Database

  18. Sales and distribution CPU Financial update Project Profit. Analysis Transport planning Service Quality Purchase Support Order Administration Shipping Invoicing Competitors & Products Mailings Calendar etc Pricing Configuration EDI Follow-up etc Picking/Packing Pricing Credit check Follow-up etc Pricing Bonus Grouping Invoice List Debit/Credit etc Contracts Returns Delivery Schedules Product proposals Availibility & Credit check Completion check Sales Order Processing Sales Support Invoice Inquiry Delivery GI Quotation Production Financial update

  19. Forces behind ERP Organisational forces • Improve customer satisfaction • Shorten lead times • Downsize - reduce middle management IT forces • Internet enabling • Difficulties to maintain legacy systems

  20. Adapt the system to the organisation? NO! • Costs in time and money • Forgoing benefits from best practice • Suboptimal integration • Complicates upgrades

  21. Drawbacks of ERP • Costly implementations • Dependence on one vendor • Forgoing “best-of-breed” solutions • Competitive “equalizer”

  22. From ERP to ES CRM Relationship SEM B2B HR DW KM Resource (ERP) SD FI MM Transactional Knowledge Analytical

  23. Definition of EAI Enterprise Application Integration (EAI) is “the unrestricted sharing of data and business processes among any connected applications and data sources in the enterprise”. D. Linthicum

  24. Levels of EAI User interface level Method level Application interface level Data level Presentation Application Data

  25. Architectures of EAI Application A Application A Application A Application A Application A Application B Application B Application B Message Broker Application C Application C Application C Application D Application D Application D Point to point Many to many

  26. Middleware -Technology for EAI Middleware is software that facilitates communication between software systems.

  27. Types of Middleware Client Server Network interface Network interface • RPCs (Remote Procedure Calls) • MOM (Message Oriented Middleware) • Distributed Objects • Database Oriented • Message Brokers • Process Brokers

  28. Types of Middleware Client Server QM QM Queue Manager Queue Manager • RPCs (Remote Procedure Calls) • MOM (Message Oriented Middleware) • Distributed Objects • Database Oriented • Message Brokers • Process Brokers

  29. Types of Middleware Applications Object Request Broker • RPCs (Remote Procedure Calls) • MOM (Message Oriented Middleware) • Distributed Objects • Database Oriented • Message Brokers • Process Brokers

  30. Types of Middleware Applications Call-Level Interface Databases • RPCs (Remote Procedure Calls) • MOM (Message Oriented Middleware) • Distributed Objects • Database Oriented • Message Brokers • Process Brokers

  31. Message Translation Source Target F. name: Benkt L. name: Wangler Affiliation: University of Skövde, Skövde, Sweden Name: Benkt Wangler Company: University of Skövde City: Skövde Country: Sweden Message Broker

  32. Intelligent Routing Target Systems Source Systems Message Broker

  33. Message Broker Services Intelligent routing Repository Services Rules processing Message Translation Message Warehousing Adapters

  34. Architectures of EAI Application A Application A Application A Application A Application B Application B Application B Process Broker Message Broker Application C Application C Application C Application D Application D Person A

  35. Levels of Technology Process Integrationand Automation Process Broker Message Translation Intelligent Routing Rules Processing Message Broker Messaging Services RPC, MOM, ...

  36. Common Models forDifferent Stakeholders Analysis Design Operations

  37. Process Broker Services Process Visualisation Process Design Process Simulation Process Monitoring Process Execution

  38. Business Modeling Language Reg Application Operator Nr Application

  39. Business Modeling Language Operator Reg Application Nr Application

  40. Business Modeling Language Operator Reg Application Number handling process Update Application Process Nr Application