Business Process Integration

Topic #2
Introduction to Enterprise Systems
Dr. J. Prince Vijai
 Why Enterprise Systems?

• Problem: Impossible to manage processes that are geographically

dispersed without utilizing modern information systems
• Enterprise systems (ES) support end-to-end processes
• Benefits: “Process data” collected throughout all the steps in
execution can be used to monitor & improve organization’s
processes.
• Investments in enterprise systems:
• Improve operational efficiency
• Increase productivity
• Increase profitability
• Improve competitive advantage
 Enterprise Systems

• Complex and powerful information systems

• E.g. SAP ERP system is the world’s most popular enterprise
systems
 Architecture of Enterprise Systems

• Refers to the technical structure of the software

• the ways users interact with the software
• the ways software is physically managed on computer
hardware

Two Types of Architecture:

1. Client-Server Architecture
2. Service-Oriented Architecture
1. (Three-Tier) Client-Server Architecture

• Three Layers or Components:

• How you interact with
application (using menus,
typing, and selecting) –
presentation layer
• What the application allows
you to do (eg. create
formulas or charts, compose
an essay) – application layer
• Where the application stores
your work (on your hard
drive or flash drive) – data
layer
2. Service-Oriented Architecture (SOA)

• Web Services
• Used to expose enterprise system (and other system)
functionality
• Standard interface – input and output
• Composite Applications
• Connect multiple applications via Web services
• Build new capabilities without changing the underlying
applications
• Service-Oriented Architecture: Web-enabled three-tier
applications which integrate many different client-server systems
together as a technology.
 Enterprise Resource Planning (ERP) Systems

• ERP systems are the world’s largest and most complex enterprise
systems.
• Focus primary on internal operations of an organization
• Integrate functional and cross-functional business processes
• SAP is a fully integrated global ERP system which could manage
end-to-end processes for companies
• Supports multiple languages and currencies
 ERP Implementation at BPCL

Discussion Questions:
• Reasons behind adopting SAP R/3 ERP System
• ERP Implementation Stages
• Benefits of ERP Implementation
• Pre-requisites for ERP Implementation
ERP Implementation at BPCL
 ERP Vendors
(Source: 2019 ERP Report, Understanding the ERP Vendor Landscape,
Panorama Consulting Solutions, 2019)
 ERP Vendors
(Source: Clash of the Titans 2017, An Independent Comparison of SAP, Oracle,
Microsoft Dynamics and Infor, Panorama Consulting Solutions)
 ERP Vendors
(Source: Clash of the Titans 2019, An Independent Comparison of SAP, Oracle,
Microsoft Dynamics and Infor, Panorama Consulting Solutions)
 ERP Vendors

• SAP

• Oracle

• Microsoft Dynamics

• Infor

• Sage
 10 Steps to Guide an ERP Software Selection
(Source: Panorama Consulting Solutions, 2017)

1. Assess you business – why do you need an ERP system?

2. Choose a selection team
3. Evaluate your business requirements and potential resource
constraints
4. Establish your specific vendor selection criteria
5. Identify compatible vendors
6. Fully vet compatible vendors to create a manageable shortlist
7. Open the lines of communication with potential vendors
8. Evaluate your potential vendors
9. Determine your return on investment (ROI)
10. Select the right ERP – team evaluation
 12 Steps for Selecting an ERP System
(Source: Panorama Consulting Solutions, 2019)

1. Understand Why you Need 7. Build a Long-list of ERP

an ERP System Systems
2. Determine your IT Strategy 8. Build a Shortlist of ERP
3. Build an ERP Selection Team Systems
4. Determine your Business 9. Schedule ERP Vendor Demos
Requirements 10. Conduct a Business Readiness
5. Improve your Business Assessment
Processes 11. Negotiate with ERP Vendors
6. Determine a Data 12. Pause before ERP
Management Strategy Implementation
 ERP (SAP) Implementation Phases
Accelerated SAP (ASAP) Methodology
(Source: https://blogs.sap.com/2013/11/15/basic-understanding-on-asap-methodology-
for-beginners/
https://toughnickel.com/business/ASAP-Methodology-SAP-Implementation-Phases)
What is CRM?
 Customer Relationship Management
(Source: https://www.sap.com/india/products/what-is-crm.html)

Customer Relationship analytics, personalization, e-

Management (CRM):
• The way businesses interact
with current and future
customers.
• This has been done with
software that automates and
integrates customer-facing
activities: sales, marketing, and
customer service.
• Best-in-class CRM software
systems go beyond that core
functionality – providing
additional tools for customer
commerce, social media,
collaboration, and more.
• Goal: To drive omni-channel
customer engagement.
• Why CRM? Tracking customer
interactions can be
challenging!!
CRM Tools:
• CRM for Sales
• CRM for Marketing
• CRM for Commerce
• CRM for Service
What is SCM?
 Supply Chain Management
(Source: https://www.sap.com/india/products/digital-supply-chain/supply-
chain-logistics.html)

Supply Chain Management (SCM):

• Deliver the right goods at the right time – every time.
• Move products and materials in the fastest, most efficient way
possible – with SAP supply chain logistics and order fulfilment
software.
Digital Supply Chain: Use AI, the Internet of Things (IoT), and
other technologies to digitize the end-to-end process and optimize
everything from warehousing to delivery.
SAP Supply Chain Logistics Solutions:
• Warehouse Management
• Transportation Management
• Global Track and Trace
 Supplier Relationship Management
(Source: https://www.sap.com/india/products/supplier-relationship-
management.related-products.html#related-products)

Supplier Relationship Management (SRM):

• SAP Supplier Relationship Management supports the full e-
procurement cycle: from source- and purchase-to-pay to spend
and supplier performance management.
• It can help you streamline operations, enforce compliance with
contracts and purchasing policies, and improve overall spend.
SAP Tools:
• SAP SRM
• SAP Ariba: SAP Ariba provides market-leading solutions for
digitalizing and integrating all or part of the source-to-pay or
order-to-cash process, delivered over the world’s largest business
network, to help you modernize and grow your business.
 Product Lifecycle Management
(Source: https://www.sap.com/india/products/digital-supply-chain/plm-r-d-
engineering.html)

Product Lifecycle Management (PLM):

• It is the business processes of managing the entire lifecycle of a
product from its conception, through design and manufacture, to
service and disposal.
• Improve processes from product design to stewardship – and
harness technologies such as the IoT and advanced analytics.

SAP Tools:
• SAP Product Lifecycle Costing
• Intelligent Product Design
• Product Compliance
 Integration of Enterprise Systems

• Enterprise Resource Planning (ERP)

• Supply Chain Management (SCM)
• Supplier Relationship Management (SRM)
• Customer Relationship Management (CRM)
• Product Lifecycle Management (PLM)
 Next Session?

• Lecture: SAP ERP

• Case Study: Global Bike Inc. (GBI)