Ch.3 ENTERPRISE SYSTEMS ARCHITECTURE
Why is it important to have good enterprise system architecture?
Because it explains the relationships between complex information systems components such as hardware and software, with complex organizational components such as business functions, processes, and people. Without both, there isn't a complete understanding of the system and it therefore will fail.
benefits of web-based architecture
Benefits Large numbers of end-users have access to ERP applications over the Web. Easily integrate ERP applications with existing systems. Server-centric—No complex, expensive client software installation. The server-centric architecture enables secure end-user access to ERP application. Client-centric—Architecture has better response time because user requests are mostly processed on the client's computer. Web-based architectures also allow better system-to-system integration.
Limitations of tier architecture
Can be very expensive - upfront costs Complex to operate and maintain
Financial Management module
Can gather financial data from various functional departments and generate valuable financial reports.
Application Level Integration
Considered the best way to integrate an application Uses a common language for integration through an application programming interface or API Example: SAP's Netweaver platform uses J2EE Connector Architecture Siebel's Java DataBeans IBM's Web Sphere Microsoft's .NET
The Application Tier
Consists of a Web browser and reporting tool where business processes and end-users interact with the system.
System (Physical) Architecture
Defines the ERP architecture through the physical components of hardware, software, data and networking.
Functional (Logical) Architecture
Defines the ERP modules that support the various business functions of the organization. Examples include: Accounting Human Resources Procurement Warehousing Sales & Distribution Etc.
Performance Management
Delivery of real-time, personalized measurements and metrics. Provides executives with access to such information as business statistics and key performance measurements.
Financials
Ensure compliance and predictability of business performance. Gain deeper financial insight and control across the enterprise. Automate accounting and financial SCM. Rigorous support for financial reporting—SOX Act.
Implications for Management
Enterprise architecture is an important technology for the long-term functioning of the organization. ERP architecture decisions are complex because their impact goes beyond systems and technology to people, organizational policy, and business processes. ERP architecture must be flexible to support a diverse set of hardware and software platforms. Management must learn how to filter out the hyped technologies that do not provide value to their organization.
What is necessary for the ERP implementation to be successful?
Enterprise system architecture takes the functions of an organization into consideration to define the necessary ERP modules as well as the physical components such as hardware, software, and networks necessary to operate the ERP system.
Inventory Management module
Facilitates the processes of maintaining the appropriate level of stock in a warehouse.
Self Services
Flexible support for employees' business functions. Simplified access to relevant information.
The Data Tier
Focus is on structure of all organizational data and its relationships with both internal and external systems.
Sales and Distribution module
Implements functions of order placement, order scheduling, shipping, and invoicing.
Business Value Benefits of SOA
Increases the ability to meet customer demands more quickly. Lower costs associated with the acquisition and maintenance of technology. Empowers the management of business functionality closer to the business units. Leverages existing investments in technology. Reduces reliance on expensive custom development.
What is ERP system architecture?
It's a methodology of separating the components of an ERP system into tiers or layers that make it easier to manage and provide scalability/flexibility.
List 5 of the major functional modules of ERP.
Self-services, performance management, financials, procurement and logistics execution, and product development and manufacturing.
Product Development and Production
Shorten time to market. Deliver higher quality products and ensure timely delivery. Real time visibility and transparency (availability check).
Human Resource module
Streamlines the management of human resources and human capitals.
What is the role of architecture in ERP implementation?
To provide support for the various business functions such as accounting, human resources, inventory, etc.
Discuss the different types of ERP architectures.
Two-tier: server handles application and database duties-Clients are responsible for presenting the data and passing input back to the server. Three-tier: application, database, and presentation are separated into layers that communicate with each other. N-tier: any number of tiers defined in an architecture. Web Services: splitting the presentation tier in two additional layers, Web Services and Web Brower. SOA (Service Oriented Architecture): object-oriented architecture that can extend beyond the corporate firewall onto the web.
Services are developed using open standards such as
WSDL (Web Services Description Language), UDDI (Universal Description, Discovery, and Integration), and SOAP (Simple Object Access Protocol).
The ERP systems focus on the Internet to provide a powerful new functionality for Internet-based access and integration. This functionality is primarily supported through the following Internet access technologies:
Web Server. ERP Portal. Back-end Server Integration. Browse Plug-ins or Applets.
Three-layer architecture (the most reliable, flexible, and scalable architecture) is the most prevalent today and includes:
Web Servers. Application Servers. Database Servers.
Web Services Architectures
Web-based architecture often described as a fourth tier where the Web tier is split into Web Services tier and Web Browser tier.
The Web Tier It shields the business users from the inner workings of an ERP system, but still provides the information relevant to their job and business process.
Web-based portal allows users the ability to access and analyze information through their Web browser.
The protocols used in Web services are
XML-based.
Online analytical processing (OLAP) provides the ability to
access, present, and analyze data across dimensions.
The ERP system ________ determines the relationships between all the complex IT components
architecture
The IT components of an ERP system architecture include the hardware, software and the:
data
ERP systems have traditionally been organized in three-tiers or layers providing flexibility and scalability:
data, application, and presentation.
The ERP software embeds best business practices that
implement the organization's policy and procedure via business rules.
Web services basically are
interfaces that allow different software application and components to be operated together.
ERP vendors, including SAP, Oracle, and Microsoft, etc. provide
modules that support the major functional areas of a business.
A fully functioning ERP system needs a high availability ________ in order to support the growth of the user population and its expansion out to the supply chain partners.
network
Users input data in the ________ tier.
presentation
ERP system architecture is organized in layers or tiers to manage system complexity in order to
provide scalability and flexibility.
The key role of an ERP system is to
provide support for such business functions as accounting, sales, inventory control, and production.
If a company wants to streamline their procurement processes, they would probably choose to implement the ________ module.
purchasing
A ________ module helps customers get more direct access to applications such as tracking the status of their orders.
self-service
The enterprise system architecture can be viewed from tow different angles; the functional angle and the ________ angle.
system
Service-Oriented Architectures
Also known as object-oriented architectures for Web platforms. Breaks the business tier into smaller, distinct units of services, collectively supporting an ERP functional module. Allows message interaction between any service consumer and service provider. A consumer from a device using any operating system in any language can use this service.
examples of cloud computing architecture
Amazon Web Service (AWS) Google App Engine Microsoft Azure
HR Management
Attract the right people, develop and leverage talents, align efforts with corporate objectives, and retain top performers. Increase efficiency and help ensure compliance with changing global and local regulations by using standardized and automated workforce processes. Enable creation of project teams based on skills and availability, monitor progress on projects, track time, and analyze results. Manage human capital investments by analyzing business outcomes, workforce trends and demographics, and workforce planning.
In addition to the Systems Integration, it is also necessary to focus on:
Business process architecture. Business requirements. Budget. Project management. Commitments from top management. Continuous communication with employees informing them about future changes.
Benefits of Service-Oriented Architectures
Business-level software services across heterogeneous platforms. Complete location independence of business logic. Services can exist anywhere (any system, any network). Loose coupling across application services. Granular authentication and authorization support. Dynamic search and connectivity to other services. Enhances reliability of the architecture. Reduces hardware acquisition costs. Accelerates movement to standards-based server and application consolidation. Provides a data bridge between incompatible technologies. Provides the ability to build composite applications. Creates a self-healing infrastructure that reduces management costs. Provides truly real-time decision-making applications. Enables the compilation of a unified taxonomy of information across an enterprise.
Drawbacks of web-based architecture
Client-centric architectures lack security. Server centric is slower.
Cloud Architecture
Cloud computing is basically a software service provided over the Internet, securely, by a service provider on a monthly or yearly lease.
Drawbacks of Cloud Computing
Data security. Vulnerability. Possible conflict of interest, if the company who stores your applications decides to create a similar application to what you created on their servers. Not suited for all highly competitive industries like biotech where intellectual property cannot be protected easily.
SOA is a software development model based on a contract between a consumer (client) and a provider (server) that specifies the following:
Functional description of the service. Input requirements and output specifications. Precondition environment state before service can be invoked. Post condition environment state after service has been executed. Error handling when there is a breakdown.
Why Study Enterprise Systems Architecture?
Help management and the implementation teams understand in detail the features and components of the enterprise system. Provide a visual representation of the complex system interfaces among the ERP application and databases, operating systems, legacy applications, and networking. Management can develop a better IT plan if the requirements for system infrastructure, training, change management, and business process reengineering are clarified.
Production module
Helps in the planning and optimizing of the manufacturing capacity, parts, components, and material resources using historical production data and sales forecasting.
Sales and Distribution
Higher number of sales orders processed and reduction in administrative costs. Easy access to accurate, timely customer information. Cost-effective mobile access for field employees. Reduce travel costs by using online functions. Adhere to environmental, health, and safety reporting requirements. Improve the management of incentives and commissions. Realize more effective real estate management.
Miscellaneous Modules
Nontraditional modules such as business intelligence, self-service, project management, and materials management.
Benefits of Cloud Computing
Pay for subscription, not for licenses and upgrades. Reduced capital and operating expenditures for IT equipment and support personnel. Accessed from everywhere, as long as you have an Internet connection. No need to install anything on the user's computer. Dynamic scalability available on demand. No maintenance fees for software or hardware. Promotes green computing environment as servers in cloud run on clean energy. Guaranteed reliability.
The cloud computing platform provides a great alternative for organizations that do not want to:
Purchase, install, or maintain software applications. Worry about security, privacy and legal issues associated with data storage.
Drawbacks of Service-Oriented Architectures
SOA implementations are costly and time-consuming. Requires complex security firewalls in place to support communication between services. Performance can be inconsistent. Requires enterprise-level focus for implementation to be successful. Security system needs to be sophisticated. Costs can be high because services needs to be junked very often.
What is Service Oriented Architecture and how is it different from Web Services architecture?
SOA is object-oriented architecture that can extend beyond the corporate firewall onto the web and is more of a software development methodology that is independent of technology than an application, such as Web Services that use specific technologies, such as SOAP or XML.
Benefits of tear architecture
Scalability - Easier to add, change, and remove applications. Reliability - Implementing multiple levels of redundancy. Flexibility - Flexibility in partitioning is very simple. Maintainability - Support and maintenance costs are less on one server. Reusability - Easier to implement reusable components. Security - IT staff has more control system to provide higher security.
Purchasing module
Streamlines the procurement process of required raw materials and other supplies.
Procurement and Logistics Execution
Sustain cost savings for all spending categories by automating such routine tasks as converting requisitions into purchase orders and by allowing employees to use electronic catalogs to order products and services. Reduce costs through process automation, integration of suppliers, and better collaboration. Improve resource utilization with support for cross-docking processes and data collection technologies. (RFID and bar codes). Enhance productivity of incoming and outgoing physical goods movements. Reduce transportation costs through better consolidation and collaboration.
Enterprise content management deals with
enterprise software products that usually store, preserve, manage, and deliver content connected to business processes.
The cloud computing platform is risky for organizations as it forces them to rely on external vendors
for reliability, security, and continuity of enterprise applications.