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Future Trends in Enterprise Systems

Term 3, MIS

.......................................................... 3 Vendors and services offered by them ............................................................................ 6 Platform as a Service .................................................................... 5 Service Oriented Architecture ..................... 5 Cloud Computing...................................... 6 BI.................................. 2 Understanding present ERP systems ................................................................................................................. 8 Social Media & Enterprise systems.......................................................................................................................................................................................................................................................................................................................................................................2 ........... 3 Oracle .... data analytics and its integration with ERP ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 4 Microsoft Dynamics ...................................................................................................................................................................................................................................................................................... 10 Evidence based SME ERP ..................................... 7 Evidence based Mobile ERP.................................................................................... 3 Salesforce................................................................................................................................................................................................................... 9 Evidence based SME ERP ................................................... 10 Key technologies that will support ERP trends ......................................................................1 ......... 12 LIST OF FIGURES Figure 1: Components of a comprehensive enterprise solution Figure 2: A collaborative enterprise solution 3 5 Figure 3: Future trends in enterprise systems Figure4: Service modules of SOA of BEPET Figure 5: Data accessed through Mobile ERP....................................... 7 2) 3) Mobile based enterprise systems .................................................................................... 11 REFERENCES .................................. 7 Loosely coupled systems/ modular Systems ........................... 4 New trends in Enterprise systems .............................................................................................................................. 8 Evidence based Social ERP ......................................................................................... 3 SAP ...................................... 5 6 8 1|Page ..............................................................................................................................................................................................................................................................................CONTENTS Executive Summary .................................................................................................................... 1 Introduction .................................................................................................................. 4 Challenges encountered by current businesses with their ERP systems .......................................................................... 10 Conclusion ................... 9 ERP for SMEs ............................................................. 4 1) Internet based enterprise systems ............................................................................................................................................................com .......................................................................................................................................................

This report is thus an attempt to capture this growth and analyse enterprise systems as they are and as they are expected to be in the years to come. to managing customer relationships. we have tried to understand the direction of enterprise systems in future. it is now more of a competitive necessity. and many other companies. and hence. the various service providers and the challenges that companies face in the present scenario. and analysing POS data. Presently. and would include data analytics. employee management. and consolidation in the industry are the latest trends that are building capabilities. so that readers are able to get a more holistic idea of the future enterprise systems landscape. by dividing them into internet based. successfully adopting them (training. Then. starting from sourcing. their scope. by sharing inventory information with vendors. data analytics and business intelligence tools are all a part of enterprise systems. ERP system’s growth was linked to the difficulty companies faced due to increasing incompatibilities among the data of different departments. Enterprise Systems are an integral part of most small and large businesses. we have taken examples of companies who have implemented solutions and the reasons why they were successful. analysis of data etc. With increasing integration 2|Page . Similarly. ERP systems saw rapid growth since its introduction. Enterprise systems started with the introduction of manufacturing resource systems. With increasing globalization. This caused great loss of business. involves selection of the vendors and required functionalities. enterprise systems are definitely an integral part of future businesses as well. Throughout the report. CRM. For example. gradually they expanded in scope to include other business functions like accounting.EXECUTIVE SUMMARY Enterprise Systems are an integral part of how organizations do business. INTRODUCTION Enterprise systems are a set of software solutions that help businesses in improving their business processes. accounting. which catered to manufacturing enterprises. and encompass the entire spectrum of functions in the firm’s value chain. With its various modules mirroring the best practices of the industry. SaaS and many such standards. they also include external partners like suppliers and customers to improve the decision making process. cloud computing. thus creating an allencompassing system that catered to the entire business. HRM etc.. Integration of the various modules like SCM. We have also tried to understand the influence of enterprise systems in SMEs. integration has helped Harrah’s casino. Walmart has created a competitive advantage for itself. as most companies raced to implement it in their business to gain competitive advantages. mobile based and social media base systems. A typical Enterprise System implementation. its scope is only set to increase. change management and timelines) and their subsequent exploitation for bottom-line growth. Nowadays. and strongly influence how companies do business. CRM packages. network and function ITi. PO. consisting of parts of infrastructure. Zara. However. We have analysed present enterprise systems. flow of information. and widespread penetration of the internet and mobile technologies. human resources etc. ERP systems. With such an illustrious record of growth fuelled by growth of IT and globalization.

UNDERSTANDING PRESENT ERP SYSTEMS Enterprise Systems or Enterprise Information Systems are all about managing the internal requirements of the enterprise by managing the resources of the company and making the back office more efficient and responsive. The major products that it provides are Oracle Analytics. 3|Page . analytics and business intelligence will play a cardinal role in it. This report is an analysis of the entire enterprise system eco-space. With great services and support. it enjoys tremendous respect across the industry. They are built on a plank of integrating best practices of industries. Oracle Cloud Services. ement Incentive ement Manage Management Health & Commission Estate Services ement Information ment People Process Application SAP Safety Management Integration Integration Integration Platform NetWeaver ™ Figure 1: Components of a comprehensive enterprise solution Analytics mySAP ERP VENDORS AND SERVICES OFFERED BY THEM The following are some of the major Enterprise Systems providers are as follows – ORACLE Oracle is one of the oldest companies to provide ERP solutions.of functionalities. It also eases use through standardized user interfacing approaches. and how upcoming trends like increased mobile and internet availability etc. SCM. for better decision making. Oracle is very well reputed for its financial solutions. HRM etc. Business Content and SAP NetWeaver infrastructure. usability. services on demand and use of such data for analytics are some of the trends that would shape the future of enterprise systems. The functional scope of a comprehensive enterprise system solution can be categorized as follows – Self Services ™ Strategic Financial Workforce Operations Enterprise Analytics Analytics Analytics Financial Management Corporate Financial Financials Management Accounting Accounting Governance Supply Chain Employee Employee Lifecycle Employee Human Management Relationship Management Transaction Capital Purcha Invent Produc Project Mainte Quality Distrib Sales Operations Management Management Manageme Edition 2003 sing ory tion Manag nance Manag ution Order nt Travel and Corporate Real Corporate Manag Environment. and how big data. Big Data Analytics etc. will influence it. Oracle E-Business Suite (CRM. and making information flow across functions quick. It also took over PeopleSoft to acquire its HR management software. It has an entire suite of products to cater to various needs of the companies. SAP Enterprise is enhanced by mySAP ERP through extended functionality.). We aim to explore the direction that enterprise systems are going. better availability through the Cloud infrastructure.

Data Cloud. For example. and monitoring and maintenance become difficult. They find it difficult to roll out new services with quick response time and there is often an inconsistent experience level across delivery channels. different divisions were facing problems as services were being offered in silos. Now it has also expanded into the social enterprise arena through acquisitions. and are sold as SaaS or as an on-premise software. CHALLENGES ENCOUNTERED BY CURRENT BUSINESSES WITH THEIR ERP SYSTEMS Integration Challenges Presently.SALESFORCE. Because of this. It can be represented diagrammatically as followsii- 4|Page . MICROSOFT DYNAMICS This is also a line of ERP and CRM solutions which are sold through a network of partners who provide specialized services through resellers. These solutions are primarily designed for small and medium enterprises. Moreover. and hence companies are increasingly moving towards SaaS. the bottom-line and brand equity of the firm. NEW TRENDS IN ENTERPRISE SYSTEMS The future enterprise systems will focus on collaboration. Its products can be categorized as Sales Cloud. versions may go out of maintenance. Companies are unwilling to go for business process restructuring. companies also find themselves hostage to expensive and obsolete technologies and applications and inconsistent data models which affect both. because of customization.COM Salesforce. Collaboration Cloud. at MDCM. as integration of the modules and removal of data inconsistency becomes a major problem. of quick outdating. Service Cloud and Custom Cloud. thus creating difficulty in creating a common data view. as complex infrastructure is difficult and costly to upgrade. which differentiates its products by providing decoupled modules on the cloud through its website on a pay as you use basis.com is a global enterprise services provider. It has most major modules in its kitty. Different departments often run on different databases. costs shoot up highly. and is most popular for its CRM Module. most of the major ERP systems suffer from a problem of implementation. This also causes a major difficulty in up-scaling. Service Challenges Companies also face a lot of challenges with regards to service and service levels. involving all major stakeholders in a firm.

will make increasing use of this transactional data to make business sense and fact based decision making. The following are some of the major trends that we feel will influence the way companies interact and engage customers in the new ecosystem. Cloud Computing will thus increase widely in scope as standards like IPv6 become ubiquitous. thus delaying them for months.Collaborative Planning Collaborative Logistics Collaborative Product Development Fig 2: A collaborative enterprise solution We know that at present ERP focuses primarily on transactional data. the ubiquitous standard for years. the process of upgrades becomes even more difficult. with increasing penetration of the internet and mobile. However. as companies now upgrade because of technical obsolescence rather than business needs. customizations and configuration. 1) INTERNET BASED ENTERPRISE SYSTEMS The trends in internet based enterprise systems can be captured diagrammatically as follows – Fig 3: Future trends in enterprise systems CLOUD COMPUTING Traditional company wide applications. With widespread use of reengineering. has now reached saturation as companies are finding it increasingly difficult and costly to opt for upgrades. 5|Page . and is aimed at standardizing business processes across industries and functions. the future.

customer management and financial managementiii. The company wanted to move all their business processes to cloud so that there could be easy access of information and improved collaboration among the staff worldwide. plastic products and sealing solutions. SERVICE ORIENTED ARCHITECTURE With the increasing exposure to the internet. The challenge was integration with online content sharing platform. we see how British Energy Power & Energy Trading (Bepet) revisited its software modularization by resorting to a service oriented model for delivering IT iv. The results were quite tangible with increase in productivity gains and improved operational efficiency. PLATFORM AS A SERVICE At present most of the packaged software provide some functionality for customization. Similarly. As an example. Service Orientation Architecture is a related trend that will shape the Enterprise systems future. 6|Page . It specializes in rubber. Thus companies are moving towards cloud solutions and building from scratch. PaaS extensibility would mean that ERP can be effectively aligned with evolving business requirements. It divided its business applications into 3 categories which can function as independent units of service as shown in the below figure- Service box1 Service box2 Task with human decision Functional service Service box3 Technology service Figure4: Service modules of SOA of BEPET It was a successful case of SOA implementation where the energy group believed the increase in flexibility to respond to changes in energy market. The company chose Automatica to implement the cloud ERP in various modules like distribution. PaaS would disrupt the dilemma of build or buy. However. Software as a Service is fast catching up.The importance of cloud systems can be seen through the case of AME Corporation manufactures highly engineered industrial products. It further had to negotiate new terms with its software suppliers to let this happen. inventory management. The application development tools and the platform will enable "buy and build". It believed that SOA would support the value added processes rather than just delivering the functionality. Looking ahead. increasing costs and difficulty of upgrade make this an expensive proposition.

com is providing individual modules that help SMEs and other companies to achieve their business objectives. saleforce. Eat’s readiness was augmented by its flexibility due to IT solution. 7|Page . 2) MOBILE BASED ENTERPRISE SYSTEMS Mobility for Enterprise Resource Planning is something that has caught up very fast with the increasing penetration of smart phones among users. There has been increasing usage of Mobile ERP by SMEs. The store managers and area supervisors had smart devices that were integrated with all devices and kiosks with the POS data. For example. The real-time data analytics enabled the employees to make real-time decisions by quickly identifying the consumer purchase behaviour. EVIDENCE BASED BI Eat is a chain of restaurants with over 110 branches in UK. staff behaviour and also the product throughput. The accessibility of ERP was possible because of mobile device support technologies. Hence. it would have a major say in how companies do business by providing them with invaluable insights about customers and other trends. standardizationvi and decoupled systems hold the key to future implementations. Many businesses were affected by London Olympics 2012 and Eat wanted to make sure that there is no staff shortage to adequately meet the raise in demand. enterprises are looking at buying only those modules that they need. In future. A team comprising of 11 IT professionals manage day to day data and running of Eatv.BI. In several companies. This infrastructure helped them provide the best customer experience and improve their performance. nowadays. store location. The real magic during Olympics was because of BI tool that Eat deployed before Olympics. the product and send/receive information about the task he/she has at hand to be served to the customers at their locations. LOOSELY COUPLED SYSTEMS/ MODULAR SYSTEMS With the failure of a large number of ERP implementations due to vendor-lock in. It is very popular for its sandwiches and fast food. DATA ANALYTICS AND ITS INTEGRATION WITH ERP Business Intelligence is the technology of deriving meaningful results out of practically limitless data to drive business decision making. The concept of virtual workplaces has evolved and mobile ERP supports this by standardizing activities and reducing the manpower required to handle on-premise activities. it is very important for sales on feet to access the data stored in ERP to understand the client.

BT Industries has the onus of service and repair to keep the trucks in condition. the technicians had to make lot of phone calls and back-office checks. This helped the company in saving huge maintenance costs and also in reducing its office locations from 7 to 2 in UK. IP security and regulatory environment emerge more vigorously for the company. Social ERP refers to company’s use of social media dedicated to company specific data. Social ERP is going to differ from the traditional ERP in a few ways. The importance of trust. EVIDENCE BASED MOBILE ERP BT Industries is world’s leading manufacturer and distributor of engineered products. access to live data but selectively share the company brand’s CRM data. 3) SOCIAL MEDIA & ENTERPRISE SYSTEMS There has been a change of internet orientation in people from “internet for fun” to “internet for productivity & services”. As the largest manufacturer of trucks for warehouses. Parts are sent for service as and when required. privacy and security that arise due to multiple sources of data accessibility. Maintaining inventory of the service parts and scheduling such huge number of trips was a daunting task for BT industries. Before the mobile integration. Supply chain partners will hold trust in the data since there would be social layer on ERP and they would know whether the source is a trustworthy 8|Page . Given the risk. The new system enabled the simultaneous repair and maintenance decreasing the number of visits as well as decreased shortage of spare parts and stock levels. content sharing and coordination of business interests and activities both internally and externally. The network effect is pulling several people to social media. there are also several advantages to using the mobile ERP. There are close to 5000 service visits per day by technicians for both emergency and scheduled trips. There are several issues of safety. creating a platform for business and a space for marketing.Fig 5: Data accessed through Mobile ERP. in particular “internet networking” in the business world. The following section on Evidence based Mobile ERP deals with a successful implementation of Mobile ERP. There are several ways the companies can mitigate risk like using secure id devices with high security platforms and allowing only authorized personnel. Movexvii. The new devices were equipped with GSM / GPRS systems. The new Social ERP systems are going to give the supply chain players and the customers. There are several spaces where Social media meets ERP. Handheld devices were connected via mobile networks and integrated with the customer data and inventory data held in a centralized ERP system.

9|Page . receive notifications. For example.com is has ventured into social ERP. Inforce Everywhere has been built natively on Force.com which is Salesforce.com revealed that the client meeting volume reduced by 25% on an average. There are around 200.000 active Chatter social networks in operation as of date and a survey of Salesforce. order management and also marketing. mobile & open functionalities of Force. Salesforce. For this it is partnering with Infor where Infor will use Salesforce.com’s Cloud ERP services are highly customized according to SME’s requirements. A suitable ERP could support the strategic and business objectives better.person or notviii. The new Chatter provides the next generation mobile and social CRM to its clients and helping them transform the way they connect to customers. Traditionally the ERP software available was standardized according to different industries and for SME implementation high customization was required which would turn out to be very costly. The challenges arise from the fact that most SMEs need a customized ERP platform which suits its needs better. coordination and decision making can be improved through such social media interfaces. EVIDENCE BASED SOCIAL ERP Salesforce. Following and trending is very important for everybody. ERP solutions are continuously using Social media technologies to evolve into new Social ERP solutions. there is a high chance that the implementation could be a failure. Salesforce. When the ERP is not fully integrated with day to day business processes. In the same spirit relevant enterprise information can be filtered and reported through ERP dashboards and to employees smart phone devices. The employee productivity. There are also simple implementations for selective modules based on each company’s business requirement. Today’s ERP space has evolved into a diverse range which can host a solution for every SME.com’s Social ERP to view data from its ERP. ERP FOR SMES SMEs have the requirement of a streamlined enterprise resource planning software but often many are discouraged by the high-maintenance. Such ERP social networking technologies will help the employees get a big picture though a single glance. There are a lot of companies who are implementing webbased ERP solutions. follow relevant information and also stay connected with ERP on their smart devices. InForce Everywhere was delivered to Infor within a few months of this partnership.com and Chatter to achieve efficient social network and ERP integration. The following section on Evidence Based SME ERP deals with a novel solution developed by Microsoft for SMEs and also a successful ERP implementation in a SME in India.InForce everywhere is using social.com’s social ERP platform for social applications x.com had added mobile device support among several other features in its new updated version of social networking tool Chatterix. Moreover. With extensive social networking tools. the standard ERP softwares provide the functionalities which SMEs did not need and lack in the specialized modules which they need. capital intensive and marginally effective ERP systems.

In 2008. Currently the Cloud ERP initiative has centralized all Oxford titles across all outlets into the database. b) Cloud – Cloud computing industry is growing rapidly with internet giants like google dedicating considerable resources towards its research and development. The project cost was around 1 crore which was to be paid in 5 instalments over 5 years. There was an immediate necessity to regulate operations and manage transactions and inventory. cloud ERP could substitute the ERP implementation serving the required functionalities. They overcame this by making the vendor a fully involved business partner. which provide network layer security. which further added to its shortcomings. b.1 Microsoft Dynamics is a cloud ERP solution developed exclusively for SMEs. GP suites of Microsoft Dynamics in cloud and on-premise forms xi. There was dire need of transparency and flow of information across various departments in the organization.IaaS. e.2 Oxford bookstore is an SME of 25+ stores and a Rs 25 crore organization. a jewellery manufacturer and retailer company has deployed the CRM. 10 | P a g e . These functions could be fulfilled by an ERP system. IPv6). Revenues increased by 20% Increased customers visiting Oxford bookstores by 25% Increased bill values by 20% Online sales increased by 100% Reduced carrying cost of inventory CRM was easier where loyalty programs and discount schemes could be managed efficiently KEY TECHNOLOGIES THAT WILL SUPPORT ERP TRENDS a) IP – Security issues could be addressed with the upcoming internet technologies and internet protocol versions (IPv4.EVIDENCE BASED SME ERP . Their inventory management system was integrated with the Point-Of-Sale system and due to challenges in sales function their control over inventory was reduced. Cloud offerings. f. It has been one of the early adopters of the cloud ERP. This is helping the company to deliver excellent customer experience and products and support the company’s growth. Oxford has a decentralized approach and one title could have multiple codes which led to huge inventories. c. EVIDENCE BASED SME ERP . But Oxford being an SME could not afford the ERP implementation that is required. Oxford bookstore had problems of IT infrastructure. d. The management had apprehensions about the SaaS model citing security limitations and also irreversible dependency on the SaaS vendor. The following are the benefits that Oxford enjoyed with Cloud ERP implementation: a. Head of finance of Oxford bookstore. are increasingly being adopted by companies. Without huge IT investments or problems of scalability. Subhro Biswas expressed that book retailing was prone to over stocking of SKUs and huge and slow moving inventoryxii. PaaS and SaaS. Pandora. Microsoft Dynamics solutions can be either cloud or on-premise deployments based on customer requirement.

c) ERP Integration applications – Depth and quality of the new applications with data and legacy platforms integration on mobile devices. and bring agility and flexibility in their business services. Big ERP vendors like Oracles. and collaboration within their employees. SAP. decision making. grid computing etc will evolve extensively. 11 | P a g e . CRM. markets. productivity. Technologies are now erasing the boundary between the companies.SOA. CONCLUSION ERP systems have been extensively used by companies to improve their top and bottom lines. EAI. Analytics has obtained a new business meaning and there is increasing importance to BI. The company should foresee the opportunities and identify the right ERP technologies that can add value. Mobile ERP has led the companies to improve their service levels simultaneously cutting down costs. production. Cloud ERP has been particularly a boon to SMEs and other companies as well. improved infrastructure. quality. Microsoft would create the best alliances and partnerships to achieve highly specialized platforms. They have become integral part of the way business is done today. Social networking has become an integral part of how the business is done and off late companies have been exploring the deployment of Social ERP to help them increase innovation. consumer social media activities and even the sheer size of increasing transactions and business. geographies and businesses. There is Big Data generated everyday due to a host of devices. Hence there is a dire necessity that enterprises need to be equipped with the capability to handle the new generation challenges. OLAP and the way ERP integrates with analytics. And help the company to reconfigure and reorganise according to the changing markets. ERP mobility provides real-time data to procurement. Being proactive to such changes and capturing the business improvement opportunities is rewarded many more times compared to a reactive approach. space and service has emerged extensively opening new arenas and opportunities for companies to improve their business. collaboration for application building with companies. their competition and the clients. Cloud computing in speed. Companies are willing to partner and coordinate by providing resources for creating conducive development. d) Business Process Management – Increasing research. There is increasing awareness among companies about the business process streamlining with ERP and the elevated rewards with social ERP and other emerging ERP trends. The ERP trends need to be supported with high security technologies. sales and service teams which generates increased sales and business performance. e) Highly Specialized ERP platforms. SOA imparts flexibility to the firms for BPR as and when they enter new products. highly sophisticated ERP platforms and robust integration applications. f) Analytics – Lot of importance for analytics and usefulness of big data will make companies adopt the infrastructure or service models to enable easier adoption of the ERP trends. cloud infrastructure as well as other platforms.

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