Enterprise systems

Integrating the enterprise through the information system

INFORMATION FLOW

CASH FLOW

TransferTransfer TransferTransfer TransferTransfer TransferTransfer

CustomerVendor Manufacturing Distribution Store

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

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:MarketingSalesProcurementR&D JanitorJanitor CourseCourse

registryregistryTeachingTeachingSystemsSystems

administrationadministration

IS för marknadsföring

System som stödjer försäljning, marknadsföringskampanjer, marknadsanalys, m.m. CRM (Customer Relationship

Management) System för försäljningsanalys

IS för tillverkning och tjänster

System som stöder inköp, kvalitetskontroll, lagerhantering, produktionsplanering, m.m. Logistiksystem Materialförsörjningssystem

IS för ekonomi

System som tillhandahåller finansiell information som underlag för beslut Intern och extern redovisning Ordermottagning Fakturering

IS för personaladministration

System som stöder planering, samordning, administration och ledning av personal Lönesystem Kompetensdatabas

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

Processes cross functions

JanitorJanitor CourseCourseregistryregistry

TeachingTeachingSystemsSystemsadministrationadministration

Course

The Value Chain - Activities

Firm infrastructure

Human Resource Management

Technology development

Procurement

Inboundlogistics

Outbound logistics

OperationsMarketing& Sales

ServicePrimary activities

Support activities

Stovepipe syndrome

R&DR&D Market/Market/SalesSales

ProductionProduction ServiceService FinancialsFinancialsPersonnelPersonnel

Functionsin anorganisation

IT systems

Each IT system supports itsown function

Integrated IT support

Order- Order- handlinghandling

Customer- Customer- serviceservice

FinancialFinancialreportingreporting

R&DR&D Market/Market/SalesSales

ProductionProduction ServiceService

FinancialsFinancials

PersonnelPersonnel

Product- Product- developmentdevelopment

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

Scenario

ERP

General ledger

Accounting

Customer info

Sales rep.

Quote

Order

Customer

Purchase order

Supplier

Production order

Plant

ERP means integration

Processes

Databases

Tools

Applications

Interfaces

Central database

Customers Suppliers

Sales force

Customer service

Backoffice

Anatomy of an ES

Human resource

Employees

Services

Sales &delivery

Finan-cials

Manufac-turing

Inventory

Reporting

Managers

Client server architecture

WANPresentation

Application

Database

CreateProduction

Orders

ReleaseProduction

Orders

ScheduleProduction

Accept Customer

Order

ConfirmDelivery

BuildProducts

ExplodeBill-of-

Material

ReserveMaterial

CustomerService

Rep

PlantPersonnel

ProductionOrder

CustomerOrder

Part Material Task

Internet

Sales and distribution

Order Administration

GIGIInquiryInquiry QuotationQuotation DeliveryDelivery InvoiceInvoice

InvoicingContractsReturnsDelivery SchedulesProduct proposals Availibility & Credit checkCompletion check

PricingBonusGroupingInvoice ListDebit/Creditetc

FinancialFinancialupdateupdate

ServiceService

FinancialFinancialupdateupdate

TransportTransportplanningplanning

QualityQuality

SalesSalesSupportSupport

Sales OrderSales OrderProcessingProcessing

ProductionProduction

ProjectProject

CPU

Profit.Profit.AnalysisAnalysis

PurchasePurchase

Picking/PackingPricingCredit checkFollow-upetc

ShippingSupportCompetitors & ProductsMailingsCalendaretc

PricingConfigurationEDIFollow-upetc

Forces behind ERP

Organisational forcesImprove customer satisfactionShorten lead timesDownsize - reduce middle management

IT forcesInternet enablingDifficulties to maintain legacy systems

Adapt the system to the organisation?

NO!

Costs in time and money

Forgoing benefits from best practice

Suboptimal integration

Complicates upgrades

Drawbacks of ERP

Costly implementations

Dependence on one vendor

Forgoing “best-of-breed” solutions

Competitive “equalizer”

From ERP to ES

Transactional Analytical Knowledge

Resource(ERP)

Relationship CRMCRM

B2BB2BHRHR DWDW

SEMSEMKMKM

FIFI

SDSD

MMMM

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

Levels of EAI

Presentation

Application

Data

Application interface level

Method level

User interface level

Data level

Architectures of EAI

Application A

Application B

Application C

Application AApplication D

Application A

Application B

Application C

Application AApplication D

Point to point

Message Broker

Application A

Application B

Application CApplication D

Many to many

Middleware -Technology for EAI

Middleware is software that facilitates communication between software systems.

Types of Middleware

RPCs (Remote Procedure Calls)MOM (Message Oriented Middleware)Distributed ObjectsDatabase OrientedMessage BrokersProcess Brokers

Network interface

Network interface

Client Server

Types of Middleware

RPCs (Remote Procedure Calls)MOM (Message Oriented Middleware)Distributed ObjectsDatabase OrientedMessage BrokersProcess Brokers

QueueManager

Client Server

QueueManager

Types of Middleware

RPCs (Remote Procedure Calls)MOM (Message Oriented Middleware)Distributed ObjectsDatabase OrientedMessage BrokersProcess Brokers

Object Request Broker

Applications

Types of Middleware

RPCs (Remote Procedure Calls)MOM (Message Oriented Middleware)Distributed ObjectsDatabase OrientedMessage BrokersProcess Brokers Call-Level Interface

Applications

Databases

Message Translation

Message Broker

Source Target

F. name: BenktL. name: WanglerAffiliation: Universityof Skövde, Skövde,Sweden

Name: Benkt WanglerCompany: Universityof SkövdeCity: SkövdeCountry: Sweden

Intelligent Routing

Message Broker

Source Systems Target Systems

Message Broker Services

Intelligent routing

Message Translation

Rules processing

Repository Services

Message Warehousing

Adapters

Architectures of EAI

Application A

Application B

Application C

Application AApplication D

Message Broker

Application A

Application B

Application CApplication D

Application A Application B

Application C

Process Broker

Person A

Levels of Technology

Message TranslationIntelligent RoutingRules Processing

Message Broker

Messaging Services RPC, MOM, ...

Process Integrationand Automation

Process Broker

Common Models forDifferent Stakeholders

Analysis Design Operations

Process Broker Services

Process Design

Process Visualisation

Process Simulation

Process Execution

Process Monitoring

Business Modeling LanguageReg

Application

NrApplicationC u sto m erC u sto m er

Operator

Business Modeling Language

Operator RegApplication

NrApplicationC u sto m erC u sto m er

OrderStartRequestnum ber

proposals Tim erT1

W aitfor

Event 1

Tim erT1 Nr App doesn't

answ er in tim eNr App doesn'tansw er in tim e

End

Num berproposals

Num berproposals

Tim erT2

W ait for

Event 2

Tim erT2 End

Orderer response Nrchosen?

NO

YES End

End

UpdateApplications

Business Modeling Language

Operator RegApplication

NrApplicationC u sto m erC u sto m er

OrderStartRequestnum ber

proposals Tim erT1

W aitfor

Event 1

Tim erT1 Nr App doesn't

answ er in tim eNr App doesn'tansw er in tim e

End

Num berproposals

Num berproposals

Tim erT2

W ait for

Event 2

Tim erT2 End

Orderer response Nrchosen?

NO

YES End

End

UpdateApplications

Number handling process Update Application Process