Pertemuan 21 Materi : Buku Wajib & Sumber Materi : Understanding Enterprise Resources Planning Concept and Application Buku Wajib & Sumber Materi : Kalakota, Ravi & Marcia Robinson (2001). e- Business 2.0. Roadmap for Success. Addison- Wesley. Bab 8

Elements of Enterprise Resource Management

Evolution of ERP

Wave 1 : Manufacturing Integration (MRP) The historical origin of ERP is in the inventory management and control software packages that dictated system design during the 1960s. The 1970s saw the emergence of material requirements planning (MRP) and distribution resource planning (DRP), which focused on automating all aspects of production master scheduling and centralized inventory planning, respectively. During the 1980s, the misnamed MRP II system emerged to extend MRP’s traditional focus on production processes into other business function, including order processing, manufacturing, and distribution.

Wave 2 : Enterprise Integration (ERP) Replacing creaky legacy systems Gaining greater control Managing global operations Handling industry deregulation and regulatory change Improving integration of decisions across the enterprise.

Wave 3 : Customer-Centric Integration (CRP) Integrating bricks and clicks, because : Traditional e-commerce configurations use cumbersome middleware to attempt to connect web applications to back-end systems It's expensive and time consuming. It is not unusual for ERP projects to cost hundreds of millions of dollars and to take more than 5 years to complete. A company's business rules and data are often scattered over multiple applications. In a multivendor world, data redundancies create inaccuracies and costly integration efforts. Upgrades are costly. Because multiple Web, middleware, and back-office vendors are involved with the implementation, accountability issues invariably arise when business rules conflict or technical problems occur.

Evolution of Business Model

Wave 4: Interenterprise Integration (XRP) Your company has squeezed as many inefficiencies as possible out of operations but youre still getting trounced by competition. What's going on? The answer lies in supply chain integration. ERP apps are adapting to the e-business requirement that a company's partners benefit from the same seamless integration as the company itself. This fourth wave of ERP development, known as extended resource planning (XRP), extends the organizational foundation of an ERP backbone beyond the four walls of the enterprise to its customers, suppliers, and trading partners.

Wave 4: Interenterprise Integration (XRP) Examples of XRP are B2B marketplaces. A main goal of an XRP implementation is to provide better synchronization with trading partners in order to reduce inventories, foster strategic pricing, improve cycle times, and increase customer satisfaction throughout the supply chain. Current ERP systems offer little in terms of interenterprise planning. ERP has traditionally excelled at transaction management, the ability to manage the administrative activities associated with human resource, financial, inventory, and order processes.

Wave 4: Interenterprise Integration (XRP) For example, although it has order processing functionality, an ERP system provides little or no information about the order's profitability or the best way to deliver the order to the customer. ERP differs from supply chain planning (SCP). Whereas the ERP approach asks, Should 1 take your order? the SCP approach asks, Can 1 take your order? Today's ERP systems are rudimentary. Data from ERP systems provides a snapshot in time of a business process, but doesn't support the continuous-planning requirements central to a successful SCP system. SCP's continuous-planning capability refines and enhances the plan in real time, adjusting the plan to accommodate any last-minute changes before the plan is executed