Convergence: Enterprise Resource Planning for Business

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Convergence Enterprise Resource Planning for
Business

• Steve Reames, Ph.D.
• Professor-Management Information Systems
• Angelo State University
• 2602 West Ave. N.- Rassman 205
• San Angelo, Texas 76909 U.S.A.
• Telephone [phone] Ext. 233
• Fax [phone]
• E-Mail sreames_at_angelo.edu

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What is Convergence?
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• Converge
• to tend to meet in a point or line incline
  toward each other, as lines that are not parallel
• to tend to a common result, conclusion, etc.

• Convergence
• an act or instance of converging.
• a convergent state or quality.
• the degree or point at which lines, objects,
  etc., converge.

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Five Forms of Convergence

• Functional convergence
• Technological convergence
• Economic convergence
• Political convergence
• Geographical convergence
• Technological convergence converges into one.
• The availability of carrier technology with high
  bandwidth utilizing single carrier fiber optic
  cabling and satellite.
• Internet. The Internet combines all known
  communication media into one singel service on a
  computer screen.

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Technology has led to global convergence

• The world as a global village, where interactions
  and communication are no longer hindered by
  distance.
• Nations around the world are gradually converging
  into regional blocs, driven by the ambition of
  pragmatic economic and social concerns.
• The tendency towards a globalized society is a
  typical instance of a political convergence.

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Ubiquitous

• existing or being everywhere, esp. at the same
  time omnipresent .
• we exist today in a ubiquitous technological
  society
• Ubiquitous Computing
• Concept technology support at anytime, anywhere,
  with access to any needed information
• Decentralized computing
• Shared information
• Mobile computing

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Information Technology Business Vision

• IT use must support a business vision
• IT strategy must be integrated with that business
  vision
• Results Competitive advantage providing
  product/service that customers value more than
  your competition
• Top line versus bottom line
• Database support
• Decision-making support
• Business initiative support
• Run, grow, transform

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Top Line Versus Bottom Line

• Top line competitive advantage focus to
  increase revenue
• Bottom line competitive advantage focus to
  decrease costs
• IT can support both top-line and bottom-line
  initiatives

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Run, Grow, Transform Your Technology

• Framework for percentage allocation of IT dollars
  toward
• Running a business optimize activity execution
  (you will receive a greater bottom line)
• Growing a business increase your market reach
  with greater product offerings, etc (increases
  your top line)
• Transform innovate your business technology
  process.

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Enterprise Business

• Successful IT systems provide an integrated view
  of
• Business
• Extend analytical capabilities to your user
• Leverage a corporation's information and
  expertise
• and your system will need to encompass a range
  of intelligence systems and analytical
  applications that include
• Data warehouses and data marts
• Online analytical processing (OLAP)
• Decision support systems (DSSs)
• Executive information systems (EISs)

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Enterprise Systems

• An enterprise system (ES) - large software
  application that companies use to manage their
  operations
• Key way by which large and small organizations
  distribute content of all kinds to their
• Workforce
• Suppliers
• Customers

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Enterprise Systems
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Evolution of ERP Systems

• The early stage of ERP was carried out in the
  1970s through a system called Materials
  Requirement Planning (MRP)
• Early 1980s MRP was reengineered under the name
  of Manufacturing Resources Planning or MRPII

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Evolution of ERP Systems

• The beginning of the 1990s came enterprise
  resource planning (ERP)
• ERP systems have evolved into what is now
  commonly referred to as ERPII

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Evolution of ERP Systems
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Enterprise Systems

• Enterprise systems are suited for information
  transactions
• They are the underlying information factory
• Enterprise systems offer the first great
  opportunity to achieve true connectivity
• A state in which everyone knows what everyone
  else is doing in the business all over the world
  at the same time

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ERP Systems
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ERP Systems

• ERP systems allow companies to implement a single
  integrated system by replacing legacy/ ubiquitous
  information systems.
• Legacy/Ubiquitous information systems -
  represents a massive, long-term business
  investment such systems are often brittle, slow,
  and nonextensible

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ERP Systems

• Enterprise Resource Planning (ERP)
• ..systems that are software systems for business
  management, supporting areas such as planning,
  manufacturing, sales, marketing, distribution,
  accounting, financial, human resource management,
  project management, inventory management, service
  and maintenance, transportation, and e-business

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ERP Systems

• An ERP system is required to have the following
  characteristics
• Modular design comprising many distinct business
  functions such as financial, manufacturing,
  distribution, and the like.
• Centralized DBMS
• Integrated functions that provide seamless
  information flow among the functions
• Flexible, best business practices
• Functions that work in real-time
• Internet-enabled

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Core ERP Functions

• Accounting
• Financial
• Manufacturing
• Production
• Transportation

• Sales and distribution
• Human resource
• Supply chain
• Customer relationship
• E-business

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ERP Systems

• Advantages
• Reliable information access
• Avoid redundant data and operations
• Cost reduction

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ERP Systems
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ERP Systems

• ERP systems are big business
• At the top of the IT spending list is the ERP
  market
• The United States federal government will spend
  7.7 billion on ERP products and services in
  fiscal year 2009
• Up 37 percent from 2004 spending of 5.6 billion

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ERP Vendors Market Trends

• The top dominating ERP software suppliers are
• SAP
• Oracle/PeopleSoft
• SSA Global
• Microsoft
• Together they control more than 70 of the
  multibillion dollar global market

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ERP Vendors Market Trends

• Complete list is very long
• Invensys (www.invensys.com)
• Epicor (www.epicor.com)
• Mapics (www.mapics.com)
• Navison (www.navison.com)
• Deltek (www.deltek.com)

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ERP Vendors Market Trends

• The ERP market has been growing at a rate more
  than 30
• The growth of the ERP market has been boosted
  both by business reasons as well as by technical
  reasons
• The main cited reason is globalization

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Conclusion

• A good ERP/ IT infrastructure will support all of
  an organizations business and information needs.
  
• It will provide an integrated view of business,
• extend analytical capabilities to users,
• and leverage a corporation's information and
  expertise regardless of where that information
  and expertise may reside.
• Enterprises need to encompass a range of
  intelligence systems and analytical applications.
• These include data warehouses,
• data marts,
• online analytical processing (OLAP),
• decision support systems (DSSs),
• and executive information systems (EISs).

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Conclusion

• Enterprise systems (ES) are a large software
  application that companies use to manage their
  operations. These systems have become a key way
  by which large organizations distribute content
  of all kinds to their workforce, to their
  suppliers and to their customers.
• Enterprise resource planning (ERP) systems are
  software systems for business management,
  encompassing functions supporting areas such as
  planning, manufacturing, sales, marketing,
  distribution, accounting, financial, human
  resource management, project management,
  inventory management, service and maintenance,
  transportation, and e-business.
• Implementation of an Enterprise System will
  provide effective solutions and cost savings for
  intra business activities, external business
  requirements, and a window of opportunity for
  global convergence.

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Conclusion

• As more intelligent, smaller digital machines are
  developed, as digital circuits evolve, and as
  digital communications becomes ever-more
  pervasive, they will continue to converge with
  computers, televisions, security systems,
  electric appliances, and many other devices, to
  provide new and useful functions for both the
  home and work environments.
• This is Digital Enterprise Convergence, and is
  the tip of the iceberg - the symbiotic
  coalescence of technologies, markets, and
  functions forming the foundation for present and
  future innovation and growth in business.

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• Questions?