chapter 2

¡Finished Goods (FERT) An example of a fi nished good from GBI is the deluxe touring bicycle, which is produced from raw materials (e.g., frames) and semifi nished goods (e.g., wheel assemblies).

(FERT) §Produced using other materials §Sold to customers

- Imposes implied process logic on real processes - Encourages companies to accept total integration throughout the enterprise - Path of least resistance: implementing out of the box ERP processes

Consequences of ERP implementation

- Specific - Stable - Expensive - They help centralize control

ERP systems are

¡Semi-Finished Goods (HALB) GBI purchases tires, wheels, and tubes and then uses these raw materials to create wheel assemblies.

HALB §Produced using other materials §Used in the production of other materials §Not purchased or sold

Trading goods (HAWA) An example of a trading good from GBI is a helmet. GBI simply purchases the helmets from a supplier and resells them to its customers; no other steps are involved.

HAWA ▪ purchased from a vendor and resold to customers. Significantly, the company does not perform any additional processing of the material prior to reselling it. therefore, the material master for trading goods will include data related to purchasing and selling but not production (ex. helmet at a bike shop)

- Viewing the implementation only as tactical - Lack of control over the implementation process - Lack of top management support - Relying on IT group to manage the project

Mistakes of erp

¡Raw Materials (ROH) Examples of raw materials utilized by GBI are frames, wheels, tires, and tubes.

ROH §Purchased, not sold, used in production §Purchasing and production related views §No sales related views

1. High Bandwidth Server - As therefore net service sends and receives messages and knowledge often times so it simply reaches high requests per day. So it involves a high-speed server with plenty of information measure to run an internet service. 2. Extra Overload - In SOA, all inputs square measures its validity before it's sent to the service. If you are victimization multiple services then it'll overload your system with further computation. 3. High Cost - It is expensive in terms of human resource, development, and technology.

SOA disadvantages

an application suite

The collection of these inter-company systems and the underlying intracompany ERP system is called

¡Organizational Data ¡Master Data ¡Transaction Data

Three types of enterprise system data

¡Raw Materials (ROH) ¡Semi-Finished Goods (HALB) ¡Finished Goods (FERT) ¡Trading Goods (HAWA)

Typical material types

§Scalability:

ability of the system to support an increasing number of users while decreasing costs

Enterprise resource planning (ERP)

are the world's largest and most complex ES. focus primarily on intra-company processes— that is, the operations that are performed within an organization—and they integrate functional and cross-functional business processes. support Operations (Production), Human Resources, Finance & Accounting, Sales & Distribution, and Procurement

3 tier architecture disadvantage

difficult for developers to change an application with the agility and flexibility they need to keep pace with the expectations of mobile users, and for operations teams to scale the application up and down to match demand

business intellgence

is a general term that refers to the overall capabilities a company uses to collect and analyze data from a variety of sources to better understand its operations and make better managerial decisions

Business Process

is a set of tasks or activities that produce desired outcomes. Every process is triggered by some event, such as receiving a customer order or recognizing the need to increase inventory.

Transaction data Examples of transaction data are dates, quantities, prices, and payment and delivery terms. Thus, transaction data are a combination of organizational data, master data, and situational data—that is, data that are specifi c to the task being executed, such as who, what, when, and where

reflect the consequences of executing process steps, or transactions. ¡Associated with process steps ¡Transactions typically have financial impact on the organization ¡Utilize master, organizational, and situational data to record the results of an executed process

three-tier client-server architecture Much of the work you do on the Internet uses a three-tier architecture. Your browser is the presentation layer. Through your browser, you connect to many systems (websites) that provide a variety of capabilities (e-mail, purchasing goods, information sharing). These websites contain the applications that execute the request you send through the browser (via HTTP), and they retrieve and store data in a connected database.

separates presentation layer, application layer, and data layer into three separate systems,

Service-Oriented Architecture

technologies that could help link, or integrate, many different client-server systems together in new and valuable ways. the technical capabilities that allow systems to connect with one another through standardized interfaces called Web services. By using Web services, companies could now integrate multiple client-server applications and create enterprise mash-ups, or composite applications

data layer

where the application stores your work (on your hard drive or fl ash drive)

Organizational data Examples of organizational structure are companies, subsidiaries, factories, warehouses, storage areas, and sales regions.

¡Describes the organizational structure of the enterprise

§General data that applies across company code §Financial data that is company code specific §Area specific data that applies to specific functions or plants

¡Each type of master data typically includes:

§Customer Master Data §Vendor Master Data §Employee Master Data §Material Master Data

¡Types of Master Data

§(contacts, terms, relationships - related to fulfillment)

§Customer Master Data

§(contacts, terms, relationships - related to human resources)

§Employee Master Data

§Presentation Layer: User Interface §Application Layer: Limits the transactions allowed §Data Layer: Physical location of the data

§Three Tier Real Time Data Processing

§(contacts, terms, relationships - related to procurement)

§Vendor Master Data

¡Service-Oriented Architecture (SOA)

§Web-enabled applications §Can link a variety of Client-Server systems together §Standardizes the user interface for a variety of Client Server systems §Enables custom capabilities without changing the underlying applications

Supply Chain Management (SCM)

▪ : inter-company processes which connect a company's ERP system to those of its suppliers. SCM connects a company to other companies that supply the materials it needs to make its products

ARCHITECTURE

▪ refers to the technical structure of the software, the ways users interact with the software, and the ways the software is physically managed on a computer hardware. Most modern ES have either a 3 tiered client server architecture or a service oriented architecture

Master Data customers, vendors, and materials

▪ represents entities associated with various processes. For example, processes involve buying materials from vendors and selling materials to customers. Customers, vendors and materials are represented in an ERP system using sales data. The most commonly used data in an organization is the material master. Materials are used in numerous processes. Consequently, material master data are some of the most complex and extensively used data in an ERP system