MTI-425: Chapter 4

IS architecture of the future

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

1 – IS architecture of the future

2 – Definitions

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 1 – IS architecture of the future
2 – Definitions

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

IS Architecture of the future

Prime contractor
Supply side DW Demand side
ETL,
OLAP Dash.,etc.
IOIS and B2C platfotms

Cie
ERP Cons.
e-Proc.,
e-sourcing,
IOIS

Cie CRM
etc Cie
MES
Cie
SCP SCE Gouv.
PM Tools,
Coll. App., etc.

PDM/ CAE
VPDM CAD/CAM

Information flow required to conduct SCM Internal information flow required to support
procurement/sales activities
Information flow required to conduct PLM
Information flow with external partners
Information flow required to conduct BI (supply side and demand side)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 1 – IS architecture of the future
2 – Definitions

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definitions
Enterprise resource planning (ERP) systems started as a means for
inventory control and grew to replace islands of information by
integrating traditional management functions, such as financials,
payroll, and human resources, with other functions including
manufacturing and distribution
(Jakovljevic, 2004)

An accounting-oriented information system for identifying and planning

the enterprise-wide resources needed to take, make, ship, and account
for customer orders ….
(APICS Dictionary, 10th edition)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 It is an ensemble of application modules relying on a single
centralized database.

The modules of an ERP cover (at the minimum):

•  Accounting and financial management ;
•  Control management ;
•  Production management (MRP, Manufacturing Resource Planning);
•  Purchasing and inventory management ;
•  Sales management ;
•  Logistics (DRP, Distribution Requirements Planning);
•  Human resources (payroll)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definition
e-Purchasing + e-Sourcing

E-Purchasing: Solutions for automating purchasing process and

providing enterprise control over spending

E-sourcing: Involves the use of (Web-based) technologies and

services for the identification, evaluation, negotiation,
and configuration of new products/suppliers

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 Definition

Customer Relationship Management (CRM) is a strategic process of

selecting the customers a firm that can most profitably serve and
shaping the continued interactions between a company and these
customers. The goal is to simultaneously optimize current and future
value of customers for the company as well as satisfaction for the
customer.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

CRM components (Siebel)

Sales Marketing

Sectorial 1 2
applications Call Center
10 3
All in
9 one 4
Universal
solution
application Interactive sales
8 5
network
7 6

SMB market
Partners
Relationship
Analytics Employees
‘Management
Relationship
[PRM]
MTI-425: Innovación del Negocio basada en TI Management [ERM]
Professor Pierre Hadaya
 Definition

Supply Chain Management (SCM) is the chain linking each element of

the manufacturing and supply process from raw materials through to the
end user, encompassing several organizational boundaries
(Scott and Westbrook, 1991; New and Payne, 1995)

Supply Chain Management (SCM) is the integration of the various

functional areas within an organization to enhance the flow of goods
from immediate strategic suppliers through manufacturing chain to the
end user
(Houlihan,1987 and 1988)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

ERP And many other technologies:

Enterprise Resource Planning
-  Databases
-  Collaborative tools
-  Development tools
MES
Manufacturing -  EDI, XML
execution system -  Electronic marketplace
-  RFID
-  Etc.
APS
Advanced Planning & Scheduling

SCE
Supply Chain Execution Software

Information flow
MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya
 Definition
A Manufacturing Execution System (MES) is a production scheduling
and tracking system used to analyze and report resource availability
and status, schedule and update orders, collect detailed execution data
such as material usage, labor usage, process parameters, order and
equipment status, and other critical information. It accesses bill of
material, routing and other data from the base ERP system and is
typically the system used for real-time shop floor reporting and
monitoring that feeds activity data back to the base system.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

The MES:
  Makes the link between the shop floor and the ERP system
  Responds in real time to changes on the shop floor (contrary to the
ERP which responds daily)
  Allows a visibility between the real activities and the planned
activities in order to improve control and performance
  Helps the ERP to refine production plans

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 The emphasis of MES is execution:
  Makes the products
  Puts the machines on and off
  Measures the components
  Changes the orders of the priorities
  Defines and reads the controls that measure the performance of the
machines
  Schedules and re-schedules the machines
  Assigns and re-assigns the inventory
  Moves the inventory to and from the working stations
  Assigns and re-assigns the personnel
  Manages the production process
  Defines the alarms
MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definition
An Advanced Planning and Scheduling (APS) is a decision technology
that uses advanced algorithms to model supply chain constrains and
enable intelligent supply chain planning and decision-making

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 •  Constraint management
•  Centralized management

•  Modeling
•  Optimization
•  Simulation
•  Collaborative planning (e.g. CPFR, VMI et SMI)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definition
Supply Chain Execution (SCE) is the set of supply chain activities that
focus on fulfillment rather than planning-raw material delivery,
manufacturing operations and shipments to customers and internal and
external distribution points. Execution functions receive requirements
from the planning cycle and provide the actual data in plan vs. actual
measurements.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 •  Order management
  Applications that automate the order process including Order Entry, Order
Processing (credit check, pricing, promotions, configuration, available-to-
promise), Order Reservation and Allocation, and Order Settlement.

•  Transportation management
  Transportation Management Systems (TMS) are execution applications that
improve delivery activities including load tendering, load building, fleet
management, mode and carrier selection, routing and scheduling, carrier bid
optimization, parcel management, and freight audit and payment.

•  Warehouse management
  Warehouse Management Systems (WMS) are fulfillment applications that
include inventory receiving, staging, slotting, putaway, picking and
replenishment, labor planning, value-added service processing, yard
management, dock-door scheduling, wave planning, flow-through, and
cross docking.
MTI-425: Innovación del Negocio basada en TI Source
Professor: Pierre
AMRHadaya
Research, 2005

•  Inventory management
  Inventory management systems are the execution applications that aide
replenishment buying, investment buying, min/max inventory targets, safety
stock calculations, and inventory redeployment.

•  International trade logistics

  International Trade Logistics (ITL) is the automation of international
management functions including Trade Documentation, Regulatory
Compliance, Letter of Credit Management, and International Track and Trace.

MTI-425: Innovación del Negocio basada en TI Source

Professor: Pierre
AMRHadaya
Research, 2005
 Definition
A business strategy that helps companies share product data, apply
common processes, and leverage corporate knowledge for the
development of products from conception to retirement, across the
extended enterprise. By including all actors (company departments,
business partners, suppliers, OEM, and customers), PLM enables this
entire network to operate as a single entity to conceptualize, design,
build, and support products.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

PLM Product Process Factory

Structure Model Layout

IPPE
PDM

Collaborative
Engineering &
Document management Project
System Management

PLUS
• Quality Management
• Asset Life Cycle Management
• Environment, Health and Safety (EH&S)
MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya
 Definition
A Product Data Management (PDM) systems holds and manages such
material as product specifications, plans, geometric models, CAD
drawings and images. PDM tools provide comprehensive whole-life
management capabilities for all data associated with a product, covering
inception, design, manufacture, maintenance and disposal. ...

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Data Management
Centralized data management repository and document
management (controlled and secured access, modifications and
revisions, search engine, tools to design, BOM, etc.)

Work flow management

- Change management
- Project management
- Quality management

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 CAD (Computer-Aided Design )
Software solutions for authoring product design

CAM (Computer-Aided Manufacturing )

Software solutions for defining manufacturing operations

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definition
Business intelligence (BI) is a broad category of application programs
and technologies for gathering, storing, analyzing, and providing access
to data to help enterprise users make better business decisions. BI
applications include the activities of decision support, query and
reporting, online analytical processing (OLAP), statistical analysis,
forecasting, and data mining.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 Definition
A Data Warehouse (DW) is a subject-oriented, integrated, time-variant
and non-volatile collection of data in support of management's decision
making process
(as defined by Bill Inmon)

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

Definition
Online Analytical Processing (OLAP) provides multidimensional,
summarized views of business data and is used for reporting, analysis,
modeling and planning for optimizing the business.
OLAP is a term used to generically refer to software and applications
that provide users with the ability to store and access data in multi-
dimensional cubes

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

 Definition
A user interface that organizes and presents information in a way that is
easy to read. The name refers to the fact that it can sometimes look like
the dashboard of a car. Also known as cockpits or scorecards.

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya

MTI-425: Chapter 4
IS architecture of the future

MTI-425: Innovación del Negocio basada en TI Professor Pierre Hadaya