eCommerce Technology 20-751 ERP Systems 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

Concepts Business process automation Express business processes in machine-readable form so they can be reviewed, improved, modified Implement the processes by computer CRM, Customer Relationship Management ERP, Enterprise Resource Planning SCM, Supply Chain Management Workflow 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

Calls back “Not in stock” Business Before ERP Customers Customer Demographic Files Sales Dept. Vendor Orders Parts Accounting Purchasing Order is placed with Vendor Invoices accounting Inventory Warehouse Checks for Parts Calls back “Not in stock” “We ordered the parts” “We Need parts #XX” Sends report Ships parts 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

Business With ERP Database Customers Sales Dept. Purchasing Warehouse Accounting Vendor Inventory Data If no parts, order is placed through DB Orders Parts Order is submitted to Purchasing. Purchasing record order in DB Order is placed with Vendor And invoices accounting Financial Data exchange; Books invoice against PO Books inventory against PO Ships parts 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

Enterprise Data Systems Logistics Support Supplier Sales & Distribution Customer EIS / DSS Procurement Acc. DB Personnel DB Orders Processing Customer Service Materials Planning Supply Planning Purchase DB Administration Orders DB Production Planing & Scheduling ATP Available to Promise Parts DB Inventory Mgmt Finance Control HR Development Orders Delivery Operations Scheduling Master Production Schedule Production Product/Process Development WIP DB Transportation Management Mfg Execution Product Data Management CAD / CAE / CAx Quality Management Demand Planning Warehousing Management Shop Floor Control SPC DB BOM DB Production Engineering Distribution Management Equipment Control Warehousing DB Plant Maintenance Process Design Facility DB SOURCE: 林欽文

Enterprise Resource Planning MOSTLY INTERNAL TO THE ENTERPRISE Produce ERP Database ERP System Inventory Distribute Account

Customer Relationship Mgt EMPHASIZES EXTERNAL CUSTOMER RELATIONSHIP Sell CRM System CRM Database Service Market

Supply Chain Management EMPHASIZES EXTERNAL RELATIONSHIP WITH SUPPLIERS Demand SCM Database Capacity SCM System Schedule

On-Line Analytical Processing (Industry Specific Functions) ERP System Structure Data Warehouse Legacy Systems Enterprise ERP System On-Line Analytical Processing (OLAP) Bolt-On Applications (Industry Specific Functions) Customers Suppliers Core Functions [On-Line Transaction Processing (OLTP)] Sales & Distribution Business Planning Shop Floor Control Logistics Operational Database Customers, Production, Vendor, Inventory, etc.

Supply Chain Management (SCM) SCM is management of product life from buying, making, moving, and warehousing to selling Buying What is SCM? Selling Making Moving Ware housing SOURCE: i2

Procter & Gamble Supply Chain P&G or Other Manufacturer Giant Eagle or Third Party Distributor Giant Eagle Supermarket Customer wants detergent, goes to Giant Eagle Plastic Producer Tenneco Packaging Chemical Manufacturer (e.g. Processed Minerals) Chemical Manufacturer (e.g. Oil Company) Paper Manufacturer Timber Industry Mining Industry SOURCE: SANJAY CHOPRA 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

Supply Network Collaboration Collaboration between neighbors in the supply network is essential for efficiency Tactical Tactical Demand Forecasting Optimizing product mix Collaboration on Forecasting Collaboration on Forecasting Matching demand -supply Collaboration on Capacity Planning Capacity Planning Resource Planning Analyzing Supply Chain Operational Operational Production Planning Demand Management Shipping Optimization Analyzing Supply Chain Inventory Planning Collaboration on Resource Planning Transcctional Status Management Transcctional Shippment Tracking Shop Floor Control Warehousing Management Ordering Administration Inventory Tracking Order & Shipments SOURCE: ACCENTURE

Insurance Claim Workflow GARAGE receive car estimate cost inspect car repair car invoice CALL CENTER ADJUSTOR COMPANY contact garage assign adjustor agree repair check invoice receive call assign garage notify insurance This example illustrates how a process model is typically used in order to capture the operation of a business. The example is taken from the insurance domain (actually this is a real world example taken from a research project: www.crossflow.org). The process describes the steps that are taken for processing an insurance claim. The process graph shows the dependencies among the activities, i.e. which activities must/can be performed upon the completion of predecessor activities and under which conditions activities can be performed (e.g. skipping the assignment of an adjustor, who should estimate the repair cost, if the estimate for the repair is below 500). The process state describes which activities have been performed. Notice that most of the activities are not necessarily performed by using an information system, at least in a traditional company. Thus the process description is orthogonal to the problem of implementing the process within an information system. However, many steps will involve information systems: for example, for assigning a garage a database is accessed, for estimating cost a computer program might be used, or for reconciling all information an information system might perform consistency checks. One also can see that different types of participants are involved (call center, garage, adjustor, insurance). Estimate < 500 INSURANCE notify adjustor fill claim form amend estimate reconcile info finalize claim SOURCE: LIHUA LIN

Process Model Relationships Among Concepts SOURCE: LIHUA LIN

Generic Workflow System Structure Definition - Workflow Engine A software service or "engine" that provides the run time execution environment for a workflow instance. Typically such software provides facilities to handle: · interpretation of the process definition · control of process instances - creation, activation, suspension, termination, etc · navigation between process activities, which may involve sequential or parallel operations, deadline scheduling, interpretation of workflow relevant data, etc · sign-on and sign-off of specific participants · identification of workitems for user attention and an interface to support user interactions · maintenance of workflow control data and workflow relevant data, passing workflow relevant data to/from applications or users · an interface to invoke external applications and link any workflow relevant data Worklist: acts as a repository for all activities assigned to a user; created when a user logs in and updated when a new activity becomes ready for execution SOURCE: LIHUA LIN

Integrated eBusiness Environment ERP BI/ Analytics Marketing Automation Sales Force Automation Service Automation Contact Center SCM Sell Side Buy Side Exchange Procurement eCommerce CRM Suppliers Customers Workflow A fully integrated eBusiness streamlines and optimizes internal processes (connected by red lines) focused on transactions and decisions with external processes focused on suppliers and customers (connected by blue lines). Systems focused on optimizing the acquisition of resources, such as supply chain management, procurement, and ERP face back toward the supply chain. These systems provide some of the data that resides in a centralized, enterprise datawarehouse. Although not shown on the chart, this data, along with customer data acquired through customer interactions via contact centers, sales forces, and e-commerce activities, may also be distributed to departmentally focused data marts. Operational CRM utilizes customer contact centers to manage interactions. While these used to be called call centers, multiple means of interaction, including phone, e-mail, and the web, have driven the development of integrated, cross-channel contact centers. Marketing automation helps marketing managers plan campaigns, manage web content, etc., while sales force and service automation help manage the workflow and measurement of those tasks. Intelligence and analytics need to be applied to both CRM and eCommerce to increase overall efficiency and effectiveness, driving a a complete, 360-degree view of the customer across all channels of interaction. For the sake of simplicity, the intelligence required for this activity is included with the BI/Analytics function, but frequently this is implemented as a separate CRM Analytics solution. eCommerce solutions include buy-side, sell side, and exchanges. The multiple buyers and sellers that participate in exchanges are not shown, in order to simplify the chart. Finally, the loop needs to be closed back to resource and supply acquisition to drive optimization of the entire front-to-back value adding process (represented by large circular arrow behind chart). Ideally, your supply chain is integrated with your suppliers, and sometimes even your suppliers’ suppliers, in order to allow for real-time responses to changing market dynamics. SOURCE: COMPAQ 20-751 ECOMMERCE TECHNOLOGY SUMMER 2003 COPYRIGHT © 2003 MICHAEL I. SHAMOS

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