1. ENTERPRISE ARCHITECTURE PART 1 OF 3 Panji Wasmana Panjiws@gmail.com

2. Agenda  Benefit and Challenges on Business Process  ERP and BRP  Paper Review

3. “THE PRIMARY ROLE OF AN ENTERPRISE ARCHITECTURE IS TO TIE TOGETHER ALL COMPONENTS INTO ONE AGGREGATE”

4. Fact on Bussiness  A successful company identifies needed technologies, introduces them quickly, and then commercializes them.  One of the principal roles of an enterprise architecture is to align the implementation of technology to the company’s business strategy

5.  Companies with experience suggest this means two things:  ability to define and keep on redefining the enterprise architecture in a business environment in full evolution, while  2. providing life cycle management of technology and all other investments which target the ability to stay competitive.

6. Core Function on EA

7. Bussiness Objective  Is the company a product manufacturer or on the sales front?  What is the company’s value-added advantage?  How does the company bring its products to the market?  How does the company personalize its products for its customers? Core Issues to Design EA

8. Value Chain

9. Decision Level Reference to EA

10. Need to Changes

11. Opportunity Cost  guidelines to be established and choices made at top management levels which means that decision making about:  technical issues,  pace-setting,  Upgrade of knowledge on IT Area  people in charge of lines of business and IT implementation

12. Main Force on Business Growth

13. Success Key on Opportunity foresight  A continuing ability to innovate  Content and design features that appeal to clients  Fast timetables for deliverables  Lean production and distribution capabilities  High quality compared to that of competitors

14. IT Audit as Monev to succes key  Evaluating the cost-effectiveness of current solutions  Looking into deliverables and their timetables  Assuring software and hardware are ahead of the curve  Controlling the quality of technology personnel  Proposing intensive training and other remedies

15. Quality Circle

16. Reengineering Concept  Senior management decisions are never made in the abstract; they are based on financial and marketing information and their execution is controlled through internal feedback.  At the middle management level, including the professional level, simulation, experimentation, and optimization are the common ground of design objectives.

17. Reengineering Concept

18. ERP & BRP “IT fusion into Business Area”

19. What is an ERP?  Enterprise-wide system which integrates the business functions and processes of an organization  Integration of business functions into one seamless application  Usually runs on a RDBMS  Replaces Countless Departmental and Workgroup Information Systems

20. What is an ERP?

22. Evolution of ERP  1960’s: Inventory Control Systems  1970’s: MRP: Material Requirement Planning  1980’s: MRPII: MRP & Distribution  1990’s: MRPII  ERP with introduction of other business functions  Extended ERP, ERP II  Today: Interenterprise ERP, Web Enabled ERP – Connecting ERP Externally

24. Core and Extended ERP Components

25. What is an ERP?  Links business processes  Utilizes a common information system  Implementation normally involves BPR: Business Process Reengineering

26. Cross-Functional Business Processes ERP and Business Processes

27. ERP and Cross-Functional Business Processes ERP and Business Processes

28. ERP and Business Process Change ERP and Business Processes

29. Implementation Issues ERP means:  Single customer, product and supplier data  Information captured only once  Visibility through the business process  Workflow management and event-triggered processes  Empowered users  Informed management decisions  Globalisation of the business  Rapid change capability In short, Dr Jekyl

30. Implementation Issues  Difficult to build:  Require fundamental changes in the way the business operates  Technology:  Require complex pieces of software and large investments of time, money, and expertise Mr Hyde

31. Implementation Issues (Costs)

32. Implementation Issues 35% ERP projects are cancelled 55% overrun their budgets Less than 10% are on time and under budget Implementation averages Cost: 178% over budget Schedule: 230% longer Functionality: only 41% Mr Hyde

33. Implementation Issues ….. So why do it?  Some firms recognize benefit Standardize and improve processes  Improve level of systems integration – replacement of outdated “legacy” systems  Improve IT responsiveness and information quality  Customer-driven

34. What is the State of the ERP Market?  Portals  Public Sector Growth  Better Implementations  Midmarket growth  Business Process Management (BPM)  Niche ERP packages

35. ERP Systems: SAP  SAP (Systems - Applications - Products): One of leading software vendors for ERP systems  SAP R/3: Separate modules  Each module  contains a number of transactions (>5,000 all together)  can be used independently of others  must be configured (customized)  can be supplemented with add-ons

36. mySAP.com Solutions lmySAP Insurance lmySAP Media lmySAP Mill Products lmySAP Mining lmySAP Oil & Gas lmySAP Pharmaceuticals lmySAP Public Sector lmySAP Retail lmySAP Service Providers lmySAP Telecommunications lmySAP Utilities Industry Solutions lmySAP Aerospace & Defense lmySAP Automotive lmySAP Banking lmySAP Chemicals lmySAP Consumer Products lmySAP Engineering & Construction lmySAP Financial Service Provider lmySAP Healthcare lmySAP High Tech lmySAP Higher Education & Research Cross-Industry Solutions lmySAP Workplace lmySAP CRM lmySAP SCM lmySAP Marketplace* lmySAP E-Procurement lmySAP BI lmySAP PLM lmySAP HR lmySAP Financials lmySAP Mobile Business lmySAP Hosted Solutions l mySAP Services Infrastructure and Services lmySAP Technology *mySAP Marketplace is delivered through MarketSet™, a joint solution from SAPMarkets & Commerce One. ERP Systems: SAP

39. Summary  A successful company identifies needed technologies, introduces them quickly, and then commercializes them.  Circle of Quality put the rule of continuity on development and evaluation  ERP one of IT fusion of Business area, give tremendous opportunity to optimize information flow on the company.

40. Source  Vesna Bosilj Vuksic, ERP and Business Processes [Presentation], 2006  Chorafas, Dimitris N, Enterprise architecture and new generation information systems, 2001

41. THANK YOU