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Business modeling and ERP architecture

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University of Palestine Information technology college Business modeling and ERP architecture Prepared by: Niddal abu swereh 120070576 Supervised By: – PowerPoint PPT presentation

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Title: Business modeling and ERP architecture


1
Business modeling and ERP architecture
University of Palestine Information technology
college
Prepared by Niddal abu swereh
120070576 Supervised By Yasmeen elBubo
April, 2011
2
Managerial Questions
  • What is ERP?
  • How will it help my business?
  • What are its costs?
  • What are the risks?

3
What is an ERP?
  • Enterprise-wide system that integrates the
    business functions and processes of an
    organization
  • Integration of business functions into one
    seamless application
  • Usually runs on a relational database
  • Replaces countless departmental and workgroup
    information systems

4
What is an ERP?
  • Links business processes
  • Maintains audit trail
  • Utilizes a common information system
  • Implementation normally involves BPR
    Business Process Reengineering
  • Difficult to Implement Correctly Railroad Tracks

5
Before/After ERP
6
Evolution of ERP
  • 1960s Inventory Control Systems
  • 1970s MRP Material Requirement
    Planning
  • 1980s MRPII MRP Distribution
  • 1990s MRPII ? ERP with introduction
    of other business functions ?
    CRMs
  • Today Web Enabled ERP Connecting
    ERP Externally

7
Factors Along the Path to ERP
  • The development of client-server architecture
  • and later the n-tier client-server architecture
  • The rush to replace out-dated and non-Y2K
    compliant systems.
  • The desire to have integrated systems within the
    firm.
  • The desire to get out of the application
    development "business".

8
SAP An ERP in Profile
  • Flagship products are MySAP ERP and Duet (with
    Microsoft)
  • The largest ERP company in the world worlds 3rd
    largest software company!
  • 12 million users, 36,000 customers, 100,600
    installations, 1,500 partners world-wide

9
Core Modules of SAP
  • Finance
  • Human Resources
  • Corporate Services (asset management, project
    management, etc.)
  • Operations (manufacturing, sales, service,
    logistics, etc.)

10
Other SAP Modules
  • Portals
  • Supply chain/Supplier relationship management
  • Customer relationship management
  • Product life cycle
  • Business intelligence

11
ERP Vendor Landscape
12
E-business Application Architecture
13
Interfaces
  • The goal in ERP is to sunset as many systems as
    possible
  • But some systems will remain
  • Need to build interfaces these systems
  • More interfaces built/maintained
  • ? more complexity of the ERP implementation
  • ? higher cost.

14
and Bolt-ons
  • Core ERP functions may be augmented by bolt-ons
    (specialized functionality above and beyond that
    of the ERP)
  • Four major areas
  • Supply Chain Management (SCM)
  • Product Lifecycle Management (PLM)
  • Customer Relationship Management (CRM)
  • Business Intelligence (BI)

15
ERP Enterprise Architecture
16
How SAP Works
17
Issues with SAP
  • Cultural Issues
  • System designed in North America or Western
    Europe
  • Embodies best practices from home country
    based on home country assumptions
  • Practices and assumptions may not transfer across
    borders

18
Costs of ERP
  • Meta Group survey of 63 companies (small to
    large, range of industries)
  • Average of 15 M per firm (range 400,000 -
    300M)
  • On average the TCO is 53,000 per user
  • Media annual savings 1.6M
  • Requires two-years of implementation and
    integration

Source CIO.com "The ABCs of ERP"
19
Costs of ERP (contd)
Average Cost To Install ERP  
Source CIO Magazine Oct. 15, 1999
20
Benefits of ERP - Promised
  • Shorter order cycle time
  • Increased productivity
  • Lower IT costs
  • Better cash management
  • Reduced personnel

21
Benefits of ERP - Actual
Expected and Actual Benefits
22
Reasons to Adopt ERP
  • One face to the customer
  • Knowing what is possible in terms of
    organizational inventory
  • Eliminating redundancy
  • Consolidation

23
Reasons to Adopt ERP (contd)
  • Handle growth
  • Reduce stress on existing IT
  • Avoid legacy systems
  • Modernizing

24
Reasons Not to Adopt
  • Cost
  • Loss of competitive advantage
  • Resistance to change
  • Poor cultural fit

25
Alternatives?
  • Open Source ERP ( Support Vendors)
  • e.g. GNU Enterprise, Apache OFBiz
  • ERP for SMEs
  • less expensive systems with fewer "bells and
    whistles"
  • ERP ASPs (Application Service Providers)
  • ASPs will host and maintain the software for you

26
Post-ERP?
  • Service-Oriented Architectures (SOA) hold some
    promise as the natural evolution from ERP
  • The foundation of SOA is standardization based
    upon web services interoperability standards.
  • SOA does not replace ERP
  • provides the ability to loosely couple services
    (business functions). 

27
Before/After
28
References
  • http//www.erp.com/
  • http//en.wikipedia.org/wiki/Enterprise_resource_p
    lanning
  • http//www.webopedia.com/TERM/E/ERP.html
  • http//www.lta.gov.sg/motoring_matters/index_motor
    ing_erp.htm
  • http//erp.ittoolbox.com/
  • http//searchsap.techtarget.com/definition/ERP

April, 2011
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