ERP Technology:-

Sytem landscape
Objectives of ERP
Business Process Redesign

Name :Faseeha Arif

Roll no :BSEF17S39
What is ERP Technology System
Landscape?
The ERP software and database cannot be installed until a
system landscape is in place.So for this purpose we use
System Landscape.
System Landscape:-
The system landscape is the “layout” or
“architecture” of the servers. To complete a system
landscape, companies will purchase multiple servers and
install the ERP system and database several times.
Division:
System landscape is generally divided into at least three
systems.
1. Development (DEV)
2. Quality (QA)
3. Production (PRD)

The system landscape work flows only in this direction.

DEV > QAS > PROD
 Development (DEV) :-
In DEV the ERP system is installed along with the database.In this
environment the consultants customize the system as per the
requirement.Development can have more than one client based in the
installations.
 Sandbox client
It is the area in DEV where members of the implementation will
explore. In general all the system design
work done in the sandbox client.
Customizing client
All the customization of the system is done in this stage.
Unit test client
All the unit testing on the development is done in unit test client.
Quality Assurance
Quality Assurance is where the developd objects tested
with various testers with all the possible scenarios.It also may
contain clients for integration Testing ,User acceptance Testing
and Training.
Production(PRD)
After the changes in QA the configurations and
customizations of the system are transported to (PRD).In this
stage the developed objects will be integrated and used for
business purposes.It may consist of Production or PROD client.
There are variations on this basic three-tiered system landscape.  The
development system can contain a client that is used for testing. It can
also contain a client for Sandbox, or testing. The Sandbox client usually
resides on the Development (DEV) tier, and the training client usually
resides in the QAS system. 
One-Tier System Landscapes:
 The one-tier landscape has everything on one server system and is
not a setup that we recommended.
 This landscape setup lacks a testing platform for patching, which
increases the risk of something going wrong in Production.
 It also doesn’t allow testing of Workbench changes prior to hitting
production. Finally, it can lead to backdoor methods of copying from
one client to another, which can impact effectiveness of change
control.
Two-tier System Landscape:
 A two- tier system landscape consists of Dev and Production tiers. Here,
QA is done on the Dev systems while the production version of the system
is totally separate.
 Drawbacks:
A two-tiered system landscape can have several drawbacks that you
should be aware of.
1. Cross-client data is usually used in the Customizing and quality assurance
clients. Changes in cross-client data in the Customizing client can affect
tests in done on the QA client.
2. The best practice is to implement strong change control procedures
around Workbench changes. And, it’s helpful to maintain awareness and
keep them as closely aligned to PRD as possible.
Three-tier System Landscape:
 Some organizations prefer to build landscapes with more than
three tiers.  They might place the Sandbox or training systems
into separate tiers. Or, they may build a specialized pre-
production server for staging. They might separate unit testing
and quality testing into different tiers.
 There are many reasons for taking this expansionist approach.
If activity is intense in one area, like training or quality testing,
it may do better in isolation. For example, if there are hundreds
of people being trained on a system that also has to support
testing, then one or both of these workloads is going to slow
down. In certain testing scenarios, the ability to measure
application performance in isolation is crucial to getting
accurate results. This could be a strong argument for utilizing a
separate system.
Objectives of ERP:-
Enterprise resource planning is the integration of various
corporate functions using information technology. The main
objective of a small or large manufacturing company's ERP
project is to track its supply chain activities from inventory
purchase to processing and final shipment to customers. The
objectives of ERP are as follows.
 Efficiency
 Cost Redution
 Quality
 Profitability
 Decentralization
1. Efficiency:
A manufacturing company can use ERP to make its internal
processes more efficient. The real-time information flow in these
systems simplifies data collection, analysis and reporting, which
improves decision-making. ERP streamlines demand planning, inventory
restocking and production scheduling functions, reducing the need for
maintaining multiple databases and separate reporting systems.
For Example:
If there is a bottleneck in a supplier's production facility, management
will know about it almost immediately and start making alternative
plans, such as ordering from a backup supplier, rescheduling production
and assembly operations, and informing customers of potential delays.
2. Cost Reduction:
Cost reduction is a key reason why small and large
businesses invest considerable time and money in implementing
ERP systems. Efficient processes are the first step in reducing
waste and increasing productivity, which usually leads to reduced
production costs. Streamlined design processes mean less
rework, which also reduces costs. ERP systems improve sales
forecasting, which leads to improved inventory management
throughout the supply chain.
For Example:
If a parts supplier knows when each one of his customers will
need new supplies, he can plan his production shifts to
manufacture just enough to fill demand, and he will not have to
carry excess inventory or not have enough parts on hand to fill
customer demand.
3. Quality:-
Quality improvement is an important goal of ERP. The
software technology usually allows management to benchmark
its quality performance against other manufacturing companies
in the same industry and against established quality standards,
such as the statistical Six Sigma tool for measuring defects. ERP
makes it easier to detect and correct defects in finished
products and problems in the manufacturing process. Quality
improvements usually lead to increased customer satisfaction,
which increases customer retention and corporate profitability.
4. Profitability:-
Enterprise resource planning is the integration of
various corporate functions using information technology.
The main objective of a small or large manufacturing
company's ERP project is to track its supply chain activities
from inventory purchase to processing and final shipment
to customers. This integrated view of company data can
improve information sharing and collaboration across
functional and corporate boundaries.
5. Decentralization:-
Enterprise resource planning systems can
decentralize decision-making because managers at all levels
have real-time access to the same data, such as production
status summaries and financial reports. Mid-level managers
and even shop supervisors can make operating decisions,
such as ordering additional inventory or changing the
production schedule.
 Business Process Redesign:-
 Define Business Process Redesign :
Business process redesign or reengineering is
an approach to change management in which the related
tasks required.It is the redesign of business processes that
an organization undertakes to achieve breakthrough
performance in key measures of cost,quality,speed, and
service.It consists of method that companies use to
transform their business process in a major way.
There are two ways to accomplish Business Process Redesign.
1. Clean Slate Redesign/ Reengineering
2. Technology enabled Redesign/Reengineering
Clean Slate Redesign:-
 Clean slate redesign involves starting over from scratch and
completely redesigning a process.
 The benefit of clean slate reengineering is that this creativity
can result in a competitive advantages.
 The current process being analyzed is called “as is” process.
Next process designers will go through a learning process to
create a visison for future design of the new busniess process
called “to be” process.
Disadvantage:-
 Clean slate is very costly.Normally large companies with
deep pockets can afford clean slate reengineering.
 Clean slate reengineering also requires that experts
devote time to documenting processes, developing
requirements and creatively designing a superior process.
Technology Enabled Reengineering:-
 Most companies today in need of radical change to their
business processes embrace ERP systems and other
technologies as the means for transformation.This form of
reengineering is known as Technology Enabled Reengineering.
Advantages:
 The system provides a roadmap for transformation by
eliminating many of the difficult decisions required when
designing processes form scratch.
 Cheaper than clean slate.
 Less risky.
Steps in Business Process Reengineering:-
1. Define Objectives and Framework:
  First of all, the objective of re-engineering must be
defined in the quantitative and qualitative terms. The objectives are
the end results that the management desires after the
reengineering. Once the objectives are defined, the need for change
should be well communicated to the employees because, the
success of BPR depends on the readiness of the employees to
accept the change.
2. Identify Customer Needs:
 While, redesigning the business process the needs of the
customers must be taken into prior consideration. The process shall
be redesigned in such a way that it clearly provides the added value
to the customer. One must take the following parameters into the
consideration:
 Type of Customer and customer groups.
 Customer’s expected utilities in product and services
 Customer requirements, buying habits and consuming
tendencies.
 Customer problems and expectations about the product or
service.
3. Study the Existing Process:
 Before deciding on the changes to be made in
the existing business process, one must analyze it carefully.
The existing process provides a base for the new process and
hence “what” and “why” of the new process can be well
designed by studying the right and wrongs of the existing
business plan.
4. Formulate a redesign Business Plan:
Once the existing business process is studied
thoroughly, the required changes are written down on a piece of
paper and is converted into an ideal re-design process. Here, all
the changes are chalked down, and the best among all the
alternatives is selected.
5. Implement the Redesign: 
Finally, the changes are implemented into the
redesign plan to achieve the dramatic improvements. It is the
responsibility of both the management and the designer to
operationalise the new process and gain the support of all.Thus,
the business process reengineering is collection of interrelated
tasks or activities designed to accomplish the specified outcome