Pertemuan 22 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

The Next Wave of Integration : Extended Enterprise

The Shared-services business needs (to selecting ERP solution) The need to create an application framework to improve customer order processing. Most companies, having ignored their back-office systems for years, are looking for solutions that will save them from their neglect. The need to consolidate and to unify relevant business functions. The need to integrate a broad range of disparate technologies, along with the business processes they support, into common processes and a common technology platform. The need to create a new technological foundation to support next-generation e-commerce applications

Build, Buy or Rent ? Many firms are deciding to buy –rather than build or rent- commercial off-the-shelf (COTS) software from third party vendors, because : Only organizations with deep pockets can viably maintain the high total cost of ownership and complexity associated with developing and maintaining custom- designed applications. Companies realize that software development may not be a core competency. It's estimated that more than 70 percent of internal software projects fail. To minimize this risk, companies increasingly outsource software development activities. Next….

Many current applications are technically outdated, and the ongoing redesign of business processes makes existing software functionally obsolete and a potential business impediment. Off-the-shelf solutions integrate the best business practices from a variety of industries. The ability to incorporate these best business practices into your firm's operations translates into bottom-line improvements.

The Capabilities of COTS ERP Solutions COTS ERP solutions are extremely sophisticated and support effective e-commerce functionality with the following features: Consolidation of the back office. Consolidating back- office functions allows companies to better leverage their capabilities and to present a single face to suppliers. The goal is to centralize operations, which can be risky. Many companies have tried-and failed-to consolidate their software systems. Why is today's business environment different? Because executive management is now focused and paying attention to the benefits of technology consolidation. Next…..

Creation of a single back office that supports multiple distribution channels. Consolidated back-office functions become even more important when firms must communicate with multiple customer-interaction channels. Companies need a seamless back office capable of supporting all paths to the customer. Why? Because it would be difficult to support new channels when existing ones are not integrated. Facilitation of changes in business practices. Trying to change encrusted business practices is extremely difficult. By taking the best practices inherent in various ERP apps, companies can bring about business practice change simultaneously with technological change. Next…..

The Capabilities of COTS ERP Solutions Facilitation of changes in technology. The ERP architecture is designed to mask the complexities of the underlying platform technologies, thus enhancing flexibility and simplifying software modification. Using flexible software toolsets, customers modify the application suites to accommodate their business practices, without concern for the impact on the underlying hardware, software, and network technologies.

Variety of Implementation Strategies A step-by-step approach, in which one module at a time is installed, tested, and integrated with other systems. A "big bang" technique, sweeping away all old systems at once and replacing them all at once. A "modified big bang" approach, in which various modules are implemented at one time, piloting them in one area of the company and then extending the program throughout the firm. Most companies use this method.

Crucial Elements to Achieve Flexibility Components, not modules Incremental migration rather than massive engineering Dynamic rather than static configuration of ERP systems Management of multiple strategic outsourcing and partnership relationships