Introduction to Enterprise Systems

Slide 2 Objectives Review the enterprise ecosystem

Slide 3 The Enterprise Ecosystem We have traditional on premises computer systems SAP / ORACLE / Dynamics OFBiz We utilize “the cloud” Clouds are categorized as public or private We run various types of services on these clouds SaaS, PaaS, SOA, Web services

Slide 4 A Taxonomy of the Cloud Public clouds Pay as you go model for computing resources No control of vendor-supplied hardware or performance Limited to no long term contracts _livestream_blu _livestream_blu Private clouds Always single tenant dedicated to a company

Slide 5 Cloud Stack

Slide 6 Infrastructure as Service (IaaS) - 1 Physical or virtual computing infrastructure (servers, storage, networking) are outsourced to external companies We manage the operating system and applications running on these servers Risks HIPPA, ITAR, gaming compliance Benefits Cost reductions, hardware expansion / contraction flexibility

Slide 7 Infrastructure as Service (IaaS) - 2 Amazon EC2 provides hosted servers We can purchase SAP HANA instances on the EC2 We can purchase Windows instances on the EC2 Microsoft Azure provides hosted Windows and SQL Server instances in the cloud Rackspace provides similar services

Slide 8 Platform as a Service (PaaS) -1 Platform as a Service (PaaS) is a paradigm for delivering operating systems and associated services over the Internet without downloads or installation We extend Salesforce.com through their application programming interfaces (APIs) ntegrate_what_is_api.htm ntegrate_what_is_api.htm We talk to Facebook through its APIs

Slide 9 Software as a Service (SaaS) - 1 SaaS provides access to specific application software through the cloud Salesforce.com is built on this model We access the software entirely through the Web UNR is adopting workday for their financial systems Apprenda.com

Slide 10 Software as a Service (SaaS) -2 Google Apps is akin to a web-based version of Office s/ s/ Office 365 is office in the cloud

Slide 11 The Role of Enterprise Systems Enterprise Systems (Enterprise Planning Systems) ERPs Use best practices to implement cross-functional workflow systems for various industries We try to Eliminate information silos Create a real-time or near real-time view of an organization Establish strong internal controls over data who can access it and who can change it

Slide 12 Common ERP Systems Oracle (JD Edwards, PeopleSoft, Siebel) SAP Microsoft Dynamics IBM Epicor There are also open source solutions OFBiz

Slide 13 Characteristics of Enterprise Systems They are some of the most complex systems in use today They are typically N-tier systems made up of clients an application / business logic layer a data layer

Slide 14 The SAP Ecosystem

Slide 15 Types of Data Data can be categorized into two types Master data describes entities used across business transactions (long-term data) Customers buy goods again and again for example We buy goods from vendors Our static organizational structure (configuration) Transactional data reflects the consequences (outcomes) of executing process steps (transactions) related to master data

Slide 16 Types of Master Data Organizational structure Where we do business (warehouses) Who we do business with (parties) Materials Used in manufacturing Purchased from vendors and sold to customers (trading goods)

Slide 17 Types of Master Data Customers Buy goods from us Vendors Sell goods to us Some parties are both customers and vendors

Slide 18 Transactional Data Transactional data records the outcome of a an event – the result of a process Goods movement Shipment documents Transfer of goods between warehouses Financial documents Sales (Invoice and payment receipt – accounts receivable) Purchase (PO to payment – accounts payable)

Slide 19 Introduction to SAP SAP R3 (System Analysis and Program Development) is a client-server application made up of core business modules and optional add-on modules A central relational database sits behind the server ( SAP HANA, Oracle, SQL Server, …)

Slide 20 SAP R3 Implementation Database Application Presentation Browser Client PCs, Laptops, etc. Network Application Servers Internet Transaction Server Web Server © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved

Slide 21 OFBiz Introduction Short for Open For Business Licensed under the Apache License version 2.0 You can customize, extend, modify and resell parts on the system

Slide 22 OFBiz Architecture The entity model is based on “The Data Model Resource Book” by Len Silverston Best practices for designing databases to implement core business functions The data model is easy to change

Slide 23 OFBiz Functional Components Common data System entities like units of measure and status code Geographic boundaries based on ISO standards

Slide 24 Selection Criteria Aberdeen survey of 1,680 companies Functionality (74%) Total costs of ownership (52%) Ease of use (45%)

Slide 25 Where does cost come from? Total cost of ownership The cost of the software itself Varies based on the number of users The cost for service contracts (10-20%) of the software cost Implementation, training, maintenance, customization costs Consultants All of this leads to an ROI calculation

Slide 26 Average Costs By Company Size (Aberdeen Group 2007)