b. session8 large scale integrated applications v2

7/31/2019 B. Session8 Large Scale Integrated Applications v2

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Executive MBAEMBA 103 Information Management

SESSION 8:

Large Scale Integrated Applications

JP Kawalek


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Purpose

To consider the current status of modern business

technologies To identify the future of integrated applications thatcross functions and organisations To demonstrate the ease and accessibility of the newtechnologies, juxtaposed with its huge organisational

impact To consider the implementation implications of largescale integrated applications


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HumanBusinessProcesses

SoftwareFunctionality

BackendDatabasestructure

Stock control

PurchasingLedger AccountsHRResource PlanningCRM

Services Services

Enterprise Resource Planning has beenconcerned with integration of internalfunctions.

ERP2 integrate the internal with suppliers and

customers across the supply chain.

ERP and its relationship with the domain of

Information Systems


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What is an ERP?

Serves as the information backbone for a given

organisation Standard software that automates some key aspectsof

the basic processes of an organisation

Addresses standard business functions

finance, manufacturing, logistics, accounting, humanresources, etc.

Eliminate islands of automation


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An example

Sends pick towarehouse

Adjusts inventory

Updates Accounts

Requisitions

part

Place order

Enter data

One time

At one placeAt the source.

For use

In many placesAt many timesReal time

FinancialsHuman ResourcesSales and

Distribution

ManufacturingMaterials ManagementLogistics

Reporting

Typical modules


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One Integrated Database, held on one or more servers

Releases P.O. atReorder Point

Posts to demand

forecast

Sends pick towarehouse

Adjusts inventoryDebits OPTAR

Requisition

s part

Updatesconfiguration

data

Arrangestransportation

Ships carcass

Initiates

maintenance action

Updates costaccounting


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SAP is the world leading ERP provider.

SAP is the company name and the product name

Systems Applications and Products in Data Processing Founded in 1972 in Mannheim, Germany

Worlds third largest independent software vendor

Global market leader in collaborative, inter-enterprisebusiness solution

Trades on the Frankfurt and New York stockexchanges

Employs nearly 44,000 staff

More than 12 million users worldwide

121,000 installations worldwide

46,100 customers in 120 countries


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Open Source nearest equivalent is OFBIZ

See http://ofbiz.apache.org/

As in any ERP, it integrates the key functions of anorganisation (sales, order processing, purchasing, accounts,manufacturing, HRM, CRM, marketing, project management,workflow, facilities management etc), e.g.https://www.bizwizzz.com:8602/accounting/control/main

Includes a web-shop for sales across supply chain (B2B and

B2C) e.g.http://www.bizwizzz.com:8604/ecommerce/control/main

Utilises the Universal Data Model (UDM)


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Quick tour of OFBIZ ERP

Below are some screen dumps for reference.


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ERP2Crossing the traditional organisational

boundaries

Web shop integrates B2C, or certain types B2B transactionsB2B matures as the integration of the databases occurThere is great potential in developing universal data models

that can be used up and down the supply chain, which is theultimate in the integration of IT across the organisations

involved.

The UDM, as implemented by OFBIZOFBIZDataModel.pdf- UniversalDataModel.GIF


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Gaining competitive advantage via supply

chain management

Dell pioneered the mail order approach to selling PCs

In 1993, Compaq cuts prices to drive Dell out of the market.Dell experiences $65 million in losses.

Dell implemented based on the following principles:

mass customization

just-in-time marketing

electronic orders & shipments e-collaboration with major buyers

reduction in testing period

monitoring of productivity & returns on investments


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Supply Chain (cont.)

In 1996, Dell began selling computers via its web site.

In 2001, Dell made over $4 million in computer web sales/

day.

Becomes leader in Customer Relationship Management

(CRM)

Online tracking of orders & shipments Viewer approved configurations and pricing

Customized home web pages for clients.

Increased communication with suppliers.Around 2002, Dell becomes the number onePC seller in the world and is a leader inmanagement & profitability.


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Supply Chain

By introducing a new business model, one can change themanner in which business is done.

To implement this model on a large scale, one needs to buildsuperb supply chain management.

Another major success factor in Dells plans was theimprovements made in its logistics system along the entire

supply chain.

Improved communications and customer service, which arepart of Dells CRM program, are the cornerstones of its success.

Dell was using e-Commerce with its business partners.


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Estimated time line for implementing OFBIZ

Software could be implemented in as little as 3 hours. Adaptations to the software might last months, to make it fit for

purpose. Updating the data, and integrating with business processes wouldprobably take about 1 year for an SME.

It is not the technology that presents the challenge, it is the other

stuff hence, in recent years there has been a greater focus on, e.g.(i) processes, analysing efficiencies, effectiveness, integration, controlstructures etc,(ii) change management, helping people work differently(iii) intervention in a wider sense, rather than just focused on thetechnology.


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Oops! Where Did All The Money Go?


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ERP implementations

A full-blown implementation in a large organizationcan exceed 100 million

An average implementation costs 10 million andtakes months to complete

More than 70% of companies experience some degreeof implementation failure

Success28%

Challenged49%

Failed23%


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Management of Change

Holistic change management needed: not just technologychange

Needs senior project sponsor/CEO Inadequate IT & project (change) management skills in-

house to succeed?

Implementation team members must be good

ControlControl of suppliers?IS competency?Requires BPR driven rather than IT

technologists in control?Tricky to manage consultants, particularlyif they are from more than one company


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Critical Success Factors(1) Top management support(2) Project team competence(3) Interdepartmental co-operation(4) Clear goals and objectives(5) Project management(6) Interdepartmental communication(7) Management of expectations

(8) Project champion(9) Vendor support

(10) Careful package selection


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Lecture Learning Task

Consider the value to your client organisation, of an

ERP Web-shop Supply Chain integration (e.g. via ERP2)

Justify your answer.

b. session8 large scale integrated applications v2

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