Enterprise systems Integrating the enterprise through the information system INFORMATION FLOW CASH FLOW Transfer CustomerVendorManufacturingDistributionStore

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 JanitorCourseregistryTeachingSystemsadministration

IS för marknadsföring zSystem som stödjer försäljning, marknadsföringskampanjer, marknadsanalys, m.m. yCRM (Customer Relationship Management) ySystem för försäljningsanalys

IS för tillverkning och tjänster zSystem som stöder inköp, kvalitetskontroll, lagerhantering, produktionsplanering, m.m. yLogistiksystem yMaterialförsörjningssystem

IS för ekonomi zSystem som tillhandahåller finansiell information som underlag för beslut yIntern och extern redovisning yOrdermottagning yFakturering

IS för personaladministration zSystem som stöder planering, samordning, administration och ledning av personal yLönesystem yKompetensdatabas

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 functionsJanitorCourseregistryTeachingSystemsadministration Course

The Value Chain - Activities Firm infrastructure Human Resource Management Technology development Procurement Inbound logistics Outbound logistics Operations Marketing & Sales Service Primary activities Support activities

Stovepipe syndromeR&DMarket/SalesProductionServiceFinancialsPersonnel Functions in an organisation IT systems Each IT system supports its own function

Integrated IT support Order- handling Customer- service Financialreporting R&DMarket/SalesProductionService Financials Personnel Product- development

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 ERP General ledger Accounting Customer info Sales rep. Quote Order Customer Purchase order Supplier Production order Plant

ERP means integration zProcesses zDatabases zTools zApplications zInterfaces

Central database CustomersSuppliersSales force Customer service Back office Anatomy of an ES Human resource Employees Services Sales & delivery Finan- cials Manufac- turing Inventory Reporting Managers

Client server architecture WAN Presentation Application Database Create Production Orders Release Production Orders Schedule Production Accept Customer Order Confirm Delivery Build Products Explode Bill-of- Material Reserve Material Customer Service Rep Plant Personnel Production Order Customer Order Part Material Task Internet

Sales and distribution Order Administration GI Inquiry Quotation Delivery Invoice Invoicing Contracts Returns Delivery Schedules Product proposals Availibility & Credit check Completion check Pricing Bonus Grouping Invoice List Debit/Credit etc Financialupdate Service Financialupdate Transportplanning Quality SalesSupport Sales Order Processing Production Project CPU Profit.Analysis Purchase Picking/Packing Pricing Credit check Follow-up etc ShippingSupport Competitors & Products Mailings Calendar etc Pricing Configuration EDI Follow-up etc

Forces behind ERP Organisational forces zImprove customer satisfaction zShorten lead times zDownsize - reduce middle management IT forces zInternet enabling zDifficulties to maintain legacy systems

Adapt the system to the organisation? NO! zCosts in time and money zForgoing benefits from best practice zSuboptimal integration zComplicates upgrades

Drawbacks of ERP zCostly implementations zDependence on one vendor zForgoing “best-of-breed” solutions zCompetitive “equalizer”

From ERP to ES Transactional Analytical Knowledge Resource (ERP) Relationship CRM B2B HR DW SEM KM FI SD MM

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 Application Data Application interface level Method level User interface level Data level

Architectures of EAI Application A Application B Application C Application A Application D Application A Application B Application C Application A Application D Point to point Message Broker Application A Application B Application C Application D Many to many

Middleware - Technology for EAI Middleware is software that facilitates communication between software systems.

Types of Middleware zRPCs (Remote Procedure Calls) zMOM (Message Oriented Middleware) zDistributed Objects zDatabase Oriented zMessage Brokers zProcess Brokers Network interface ClientServer

Types of Middleware zRPCs (Remote Procedure Calls) zMOM (Message Oriented Middleware) zDistributed Objects zDatabase Oriented zMessage Brokers zProcess Brokers Queue Manager ClientServer Queue Manager

Types of Middleware zRPCs (Remote Procedure Calls) zMOM (Message Oriented Middleware) zDistributed Objects zDatabase Oriented zMessage Brokers zProcess Brokers Object Request Broker Applications

Types of Middleware zRPCs (Remote Procedure Calls) zMOM (Message Oriented Middleware) zDistributed Objects zDatabase Oriented zMessage Brokers zProcess Brokers Call-Level Interface Applications Databases

Message Translation Message Broker SourceTarget F. name: Benkt L. name: Wangler Affiliation: University of Skövde, Skövde, Sweden Name: Benkt Wangler Company: University of Skövde City: Skövde Country: Sweden

Intelligent Routing Message Broker Source Systems Target Systems

Message Broker Services Intelligent routing Message Translation Rules processing Repository Services Message Warehousing Adapters

Architectures of EAI Application A Application B Application C Application A Application D Message Broker Application A Application B Application C Application D Application A Application B Application C Process Broker Person A

Levels of Technology Message Translation Intelligent Routing Rules Processing Message Broker Messaging ServicesRPC, MOM,... Process Integration and Automation Process Broker

Common Models for Different Stakeholders AnalysisDesignOperations

Process Broker Services Process Design Process Visualisation Process Simulation Process Execution Process Monitoring

Business Modeling Language Reg Application Nr Application Operator

Business Modeling Language Operator Reg Application Nr Application

Business Modeling Language Operator Reg Application Nr Application Number handling process Update Application Process