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Enterprise systems
Integrating the enterprise
through the information
system
INFORMATION FLOW
Transfer
Transfer
Vendor
Transfer
Transfer
Transfer
Transfer
Manufacturing
Distribution
CASH FLOW
Transfer
Transfer
Store
Customer
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:
Marketing
Sales
Procurement
R&D
Systems
Janitor
administration
Course
registry
Teaching
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
Course
Systems
Janitor
administration
Course
registry
Teaching
The Value Chain - Activities
Firm infrastructure
Support
activities
Human Resource Management
Technology development
Procurement
Primary
activities
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Stovepipe syndrome
IT systems
Functions
in an
organisation
Personnel
R&D
Each IT system supports its
own function
Market/
Sales
Production
Service
Financials
Integrated IT support
Orderhandling
Productdevelopment
Customerservice
Financial
reporting
Financials
Personnel
R&D
Market/
Sales
Production
Service
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
Customer
Sales rep.
Supplier
Order
Customer info
Quote
Purchase order
Plant
ERP
Accounting
General ledger
Production order
ERP means integration
Processes
Databases
Tools
Applications
Interfaces
Anatomy of an ES
Managers
Customers
Suppliers
Sales force
Reporting
Sales &
delivery
Central
database
Financials
Back
Manufac- office
turing
Services
Customer service
Human
resource
Employees
Inventory
Client server architecture
Presentation
Internet
Customer
Service
Rep
Accept
Customer
Order
Customer
Order
Create
Production
Orders
Explode
Bill-ofMaterial
Part
Production
Order
Plant
Personnel
Reserve
Material
Release
Production
Orders
Build
Products
Material
Schedule
Production
Task
Confirm
Delivery
Application
Database
WAN
Sales and distribution
Support
Competitors
& Products
Mailings
Calendar
etc
Order Administration
Contracts
Returns
Delivery Schedules
Product proposals
Availibility & Credit check
Completion check
Pricing
Configuration
EDI
Follow-up
etc
Shipping
Invoicing
Picking/Packing
Pricing
Credit check
Follow-up
etc
Pricing
Bonus
Grouping
Invoice List
Debit/Credit
etc
CPU
Sales
Support
Inquiry
Quotation
Sales Order
Processing
Delivery
Production
Project
Financial
update
Service
Transport
planning
Purchase
GI
Invoice
Financial
update
Profit.
Analysis
Quality
Forces behind ERP
Organisational forces
Improve customer satisfaction
Shorten lead times
Downsize - reduce middle management
IT forces
Internet enabling
Difficulties 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
CRM
Relationship
B2B
Resource
(ERP)
HR
DW
SEM
KM
SD
MM
FI
Transactional
Analytical
Knowledge
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
User interface
level
Method level
Application
Data
Application interface
level
Data level
Architectures of EAI
Application A
Application A
Application B
Application B
Application C
Message Broker
Application C
D
Application A
Point to point
Application 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 Objects
Client
Server
Database Oriented
Message Brokers
Process Brokers
Network
interface
Network
interface
Types of Middleware
RPCs (Remote Procedure Calls)
MOM (Message Oriented Middleware)
Distributed Objects
Client
Server
Database Oriented
Message Brokers
Process Brokers
Queue
Manager
Queue
Manager
Types of Middleware
RPCs (Remote Procedure Calls)
MOM (Message Oriented Middleware)
Distributed Objects
Applications
Database Oriented
Message Brokers
Process Brokers
Object Request Broker
Types of Middleware
RPCs (Remote Procedure Calls)
MOM (Message Oriented Middleware)
Distributed Objects
Applications
Database Oriented
Message Brokers
Call-Level Interface
Process Brokers
Databases
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
Intelligent Routing
Source Systems
Target Systems
Message Broker
Message Broker Services
Repository
Services
Rules
processing
Message
Warehousing
Intelligent
routing
Message
Translation
Adapters
Architectures of EAI
Application A
Application A
Application A
Application B
Application B
Application B
Application C
Message Broker
Process Broker
Application C
D
Application A
Application D
Application C
Person A
Levels of Technology
Process Integration
and Automation
Process Broker
Message Translation
Intelligent Routing
Rules Processing
Message Broker
Messaging Services
RPC, MOM, ...
Common Models for
Different Stakeholders
Analysis
Design
Operations
Process Broker Services
Process
Design
Process
Monitoring
Process
Visualisation
Process
Simulation
Process
Execution
Business Modeling Language
Operator
Customer
Reg
Application
Nr
Application
Business Modeling Language
Operator
Reg
Application
Timer
T1
Start
Order
Request
number
proposals
Timer
T1
Wait
for
Event 1
Number
proposals
Nr App doesn't
answer in time
Number
proposals
Nr App doesn't
answer in time
Timer
T2
End
Wait
for
Event 2
Timer
T2
Orderer response
End
Nr
chosen?
YES
NO
Customer
Update
Applications
End
Nr
Application
End
Business Modeling Language
Operator
Reg
Application
Number handling process
Timer
T1
Start
Order
Request
number
proposals
Timer
T1
Wait
for
Event 1
Number
proposals
Nr App doesn't
answer in time
Number
proposals
Nr App doesn't
answer in time
Timer
T2
Update
Application
Process
End
Wait
for
Event 2
Timer
T2
Orderer response
End
Nr
chosen?
YES
NO
Customer
Update
Applications
End
Nr
Application
End