UNIT V

ERP and E-Business-ERP , Internet and WWW-

ERP II-Future direction and trends in ERP. Case
studies in indian and Global scenario
ERP and E business
ERP and E-Business
ERP is a structured approach to optimizing a
company’s internal value chain.
The following are the two examples where ERP
systems have dramatically increased the efiiciency and
productivity of companies:
one company has used ERP to reduce the processing
time for updating pricing data from 80 days to 5
minutes, and
Another has used ERP to decrease it annual purchasing
cost by 15%.
e-Business-supply chain integration
E business integrated with ERP
Whole extended system provides a vision of business
processes that span multiple businesses and Enterprise
Not only suppliers but also customers
Companies need to be able to adapt their ERP systems
to the emerging world of business.
E-business model
Traditional model
Customer order is received, order info flows from dept to dept
through order entry, manufacturing, warehousing, distribution
and finance until the product is delivered to the customer and
the payment is received.
Key elements of the value chain have been controlled by the
separate and desperate info systems that could not
communicate with one another.
E-business model
Once the order is received, automatically it will trigger a lot of
activities down the supply chain.
Everything is informed via EDI.
Components of E-business supply chain
Supply chain mgmt is the coordination of material,
information and financial flows between and among
all the participants.
Partners of supply chain are
Supplier
Org
Consumer, other parties involved in transaction.
ERP with data warehouses, datamining , OLAP to
make better decisions quickly.
Supply chain integration
Traditional business spends a lot of time, effort for
communicating business info and making and accepting
payments.
E-business do the same thing over digital networks. The
savings in terms of time, effort, error reduction are quite
dramatic.
EDI msg help business to communicate.
EFT helps to accept payments
ERP and E-business to create a web based extended ERP
environment.
Example –Sun, IBM,Compaq, Intel and cisco, amazon etc.
ERP , Internet and WWW-ERPII
ERP needs to be highly integrated with internet , www in
order to take advantage of that powerful medium.
Most of business are conducted over the internet, most info is
disseminated in www.. Two media are becoming important
for organizations.
ERP systems are used to integrate and optimize an
organization’s internal , manufacturing, financial, distribution
and human resource functions.
In contrast ERP II address the integration of business
processes that extend across an enterprise and its trading
partners. It forms the basis of Internet enabled e business
and collaborative commerce.
EVOLUTION OF ERP to ERP II
ERP, related technologies, internet and www
Best practices in ERP II
Choosing multiple vendors
Exploit the core strength
Re-define business process.
Periodic Assessment.
Future Directions and Trends in ERP
4 Important trends in ERP
Improvements in integration and flexibility
Extension to ebusiness applications
A broader reach to new users
Adoption of Internet technologies
Future directions
New markets
New channels
Faster implementation methodologies
Easier customization tools
Business models and BAPIs (Business Application Programming Interface)
Application platforms
New business segments
Need based applications
Expenditures
Reduction in implementation time
Open source , web enabled and wireless technologies
Enterprise application integration
Market snapshot
Shifting revenue models
THE SOA factor.(service oriented Architecture)