bachelor’s degree graduation paper · global erp market trends • buying and upgrade of...

BACHELORBACHELOR’’S DEGREE S DEGREE GRADUATION PAPERGRADUATION PAPER

UNIVERSITY UNIVERSITY ““AL. I. CUZAAL. I. CUZA”” IAIAŞŞII

FACULTY OF ECONOMY FACULTY OF ECONOMY ANDAND BUSINESS ADMINISTRATIONBUSINESS ADMINISTRATION

SPECIALIZATION ECONOMIC INFORMATICSSPECIALIZATION ECONOMIC INFORMATICS

Coordinator:Coordinator:

Prof. PhD. Doina FotacheProf. PhD. Doina Fotache

(email: fotache@uaic.ro)(email: fotache@uaic.ro)Graduate:Graduate:

CiprianCiprian DudăuDudău

(email: ciprian.dudau@yahoo.com)(email: ciprian.dudau@yahoo.com)

February, 2008February, 2008

ERP PLATFORMS FOR ERP PLATFORMS FOR GLOBAL BUSINESSGLOBAL BUSINESS

CASE STUDY ONCASE STUDY ON

MS DYNAMICS AX 4.0MS DYNAMICS AX 4.0

•• Characteristics of ERP for corporationsCharacteristics of ERP for corporations

•• General overview of ERP marketGeneral overview of ERP market

•• Main vendors and their strategiesMain vendors and their strategies

•• Case study Case study –– Microsoft Dynamics AX 4.0Microsoft Dynamics AX 4.0

Characteristics of global ERP platformsCharacteristics of global ERP platforms

•• Modular design including many business functions which are Modular design including many business functions which are

integrated in order to obtain an unitary information flowintegrated in order to obtain an unitary information flow

•• Complete management of enterprise resources at the operational Complete management of enterprise resources at the operational

level (level (backback--officeoffice), and also at the extended level (), and also at the extended level (frontfront--officeoffice))

•• Comprising of multiComprising of multi--location, multilocation, multi--language, and multilanguage, and multi--currency currency

features features

•• Integration with applications for the Web platformIntegration with applications for the Web platform

•• Implementation based on the clientImplementation based on the client--server technology and the server technology and the

multimulti--tier architecture (tier architecture (nn--tiertier), and the centralization of all data into ), and the centralization of all data into

an unique relational databasean unique relational database

Integration of main business processes in Integration of main business processes in ERPERP

Production

Warehouse

Equipments

Customer order processing

SupplyReception

Hu

man

res

ourc

es

Distribu-tion

Finance and General Ledger

Inventory management

(Source: Moscove, S., Core concepts of accounting information systems, John Wiley and Sons, Altamonte Springs, 2003, p. 172)

Integration of extended modules with the Integration of extended modules with the backback--office functionalityoffice functionality

Extended Enterprise

Enterprise

Vendors

Strategic partners

Clients

ERPSCM/APS CRM

/BI

SCM

PRM

Legend:

APS – Advanced Planning and SchedulingBI – Business IntelligenceCRM – Customer Relationship ManagementERP – Enterprise Resource Planning (Back-Office)PRM – Partner Relationship ManagementSCM – Supply Chain Management (includes distribution, logistic and access routes)

(Source: Moscove, S., Core concepts of accounting information systems, John Wiley and Sons, Altamonte Springs, 2003, p. 173)

The multiThe multi--tier architecture (tier architecture (nn--tiertier) of ERP) of ERP

Logical Level of Presentation

Marks the line between Client (DL, CI, GLP) and

Server (WS, PL, LLP, DAL, DL)

Web ServerThe logic executed on server, including web services, server-side

applications etc.

ASP, Java, C#, VB.NET etc.

Produces content of HTML, XML, DHTML, WML etc.

types.

Interfaţa ClientWindows forms,

Independent applicationsetc.

Graphical Level of Presentation

Logical Level of Application

Data Access Level

The objects and rules of application logicData handling and transformation into informations

Interface with the databaseHandles the data input/output

Data storage, interogation and optimizationPerformance (indexation, etc.)

Proxy Logic

(SOAP, CORBA, RMI, COM/DCOM etc.)

Distributed LogicIs needed to connect to the “proxy” tier for sending and

receiving the calls

Data Level

Final User SystemHTML, WML, desktop forms, Terminal Server, Citrix etc.

Exists at the physical level on the client machine.

(Source: Based on Chartier, R., Applications architecture: an n-tier approach, www.15seconds.com/Issue/011023.htm, December 2007 )

•• Characteristics of ERP for corporationsCharacteristics of ERP for corporations

•• General overview of ERP marketGeneral overview of ERP market

•• Main vendors and their strategiesMain vendors and their strategies

•• Case study Case study –– Microsoft Dynamics AX 4.0Microsoft Dynamics AX 4.0

Global ERP market trendsGlobal ERP market trends

•• Buying and upgrade of integrated packages are major goals for Buying and upgrade of integrated packages are major goals for

european and northeuropean and north--american companiesamerican companies

•• Customer retention is the top vedor priorityCustomer retention is the top vedor priority

•• Applications vendor consolitadion continuesApplications vendor consolitadion continues

•• Architecture evolution; SOA Architecture evolution; SOA and middleware are the drivers of the middleware are the drivers of the

innovationinnovation

•• Transition to recuring and variable revenue models (maintenance,Transition to recuring and variable revenue models (maintenance,

incremental licensing, SaaS incremental licensing, SaaS and services))

Top 10 ERP vendors, based on total income Top 10 ERP vendors, based on total income (mil. $), in 2006(mil. $), in 2006

298

304

327

384

664

1,017

1,873

2,200

6,304

11,837

0 2,000 4,000 6,000 8,000 10,00012,000 14,000

Agresso

Exact

IFS

Epicor

Lawson

Microsoft (Dynamics)

Sage Group

Infor

Oracle

SAP

(Source: Hanerman, P., Wang, R., Teleconference Next-Generation ERP Strategies, Forrester Research, 17 September 2007, www.forrester.com)

•• Characteristics of ERP for corporationsCharacteristics of ERP for corporations

•• General overview of ERP marketGeneral overview of ERP market

•• Main vendors and their strategiesMain vendors and their strategies

•• Case study Case study –– Microsoft Dynamics AX 4.0Microsoft Dynamics AX 4.0

ERP vendors based on strategic orientationERP vendors based on strategic orientation

InnovatorsInnovators

•• SAPSAP

•• MicrosoftMicrosoft

•• EpicorEpicor

•• NetSuiteNetSuite

ConsolidatorsConsolidators

•• OracleOracle

•• InforInfor

•• Sage GroupSage Group

Area of coverage of the most important ERP Area of coverage of the most important ERP solutionssolutions

(Source: Hanerman, P., Wang, R., Teleconference Next-Generation ERP Strategies, Forrester Research, 17 September 2007, www.forrester.com)

•• Characteristics of ERP for corporationsCharacteristics of ERP for corporations

•• General overview of ERP marketGeneral overview of ERP market

•• Main vendors and their strategiesMain vendors and their strategies

•• Case study Case study –– Microsoft Dynamics AX 4.0Microsoft Dynamics AX 4.0

Core strengths of Dynamics AX 4.0Core strengths of Dynamics AX 4.0

•• Integrated horizontal applications and many specific verticalsIntegrated horizontal applications and many specific verticals

•• Ease of use Ease of use –– MS Office/MS Outlook based user interfaceMS Office/MS Outlook based user interface

•• InternaInternationalization ionalization –– meets legal and language demands for 37 37

states (states (growing) )

•• Powerful tools for rapid customization Powerful tools for rapid customization –– it combines the ERP it combines the ERP

application with a RAD, object oriented and openapplication with a RAD, object oriented and open--source source

development environment development environment

•• Integration with many other Microsoft platforms Integration with many other Microsoft platforms –– Windows, SQL Windows, SQL

Server, SQL Reporting Services, SQL Analysis Services, IIS, Server, SQL Reporting Services, SQL Analysis Services, IIS,

SharePoint, Office, .NET FrameworkSharePoint, Office, .NET Framework

•• Low price, lot cheaper than the competitorsLow price, lot cheaper than the competitors

Two interfaces for two different purposesTwo interfaces for two different purposes

Windows clientWindows client

•• All functionalityAll functionality

•• A part of the usersA part of the users

Web clientWeb client

•• A part of the functionalityA part of the functionality

•• All usersAll users

The integrated backThe integrated back--office office and frontfront--office office modulesmodules

(Source: http://www.integrys.co.uk/home/, January 2008)

Deploying Dynamics AX system in a Deploying Dynamics AX system in a multinational companymultinational company

(Source: Microsoft, Microsoft Dynamics AX Global Deployment Guide, November 2007, https://mbs.microsoft.com/)

Development environment of Dynamics AXDevelopment environment of Dynamics AX

(Source: Based on MBS Academy, Advanced X++ Class Manual, November 2003)

Implementation of Dynamics AXImplementation of Dynamics AX

•• Exclusively through the channel partner networkExclusively through the channel partner network

•• Three progresive editions adapted for the simple to complex Three progresive editions adapted for the simple to complex

necessities of organizations: Business Essentials, Advanced necessities of organizations: Business Essentials, Advanced

Management, Management, and Advanced Management EnterpriseAdvanced Management Enterprise

•• Microsoft Solution Finder for AX; 300 accredited partner modulesMicrosoft Solution Finder for AX; 300 accredited partner modules

•• SGBDR: SQL Server or OracleSGBDR: SQL Server or Oracle

•• In Romanian market, by LLP Group BucharestIn Romanian market, by LLP Group Bucharest

ConclusionsConclusions

•• ERP platforms play an essential role ERP platforms play an essential role in coordinating enterprise

resources and business processes

•• Dynamics AX 4.0 increase efficiency of organizationDynamics AX 4.0 increase efficiency of organization’’s functions and s functions and

helps reducing costs, offering the newest technologies and businhelps reducing costs, offering the newest technologies and business ess

practicespractices

•• The presence in the Romanian market The presence in the Romanian market –– proofe of maturity and proofe of maturity and

catalyst for the alignment to European and internacatalyst for the alignment to European and international demandsional demands

ReferencesReferences

•• Chartier, R., Applications architecture: an nChartier, R., Applications architecture: an n--tier approach, tier approach,

www.15seconds.com/Issue/011023.htm, December 2007 www.15seconds.com/Issue/011023.htm, December 2007

•• Hanerman, P., Wang, R., Teleconference NextHanerman, P., Wang, R., Teleconference Next--Generation ERP Generation ERP

Strategies, Forrester Research, 17 September 2007, Strategies, Forrester Research, 17 September 2007,

www.forrester.comwww.forrester.com

•• MBS Academy, Advanced X++ Class Manual, November 2003MBS Academy, Advanced X++ Class Manual, November 2003

•• Microsoft, Microsoft Dynamics AX Global Deployment Guide, Microsoft, Microsoft Dynamics AX Global Deployment Guide,

November 2007, https://mbs.microsoft.com/November 2007, https://mbs.microsoft.com/

•• Moscove, S., Core concepts of accounting information systems, JoMoscove, S., Core concepts of accounting information systems, John hn

Wiley and Sons, Altamonte Springs, 2003Wiley and Sons, Altamonte Springs, 2003

•• http://www.integrys.co.uk/home/, January 2008http://www.integrys.co.uk/home/, January 2008