Enterprise Resource Planning ERP Enterprise Business Applications EBA

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Enterprise Resource Planning (ERP)Enterprise
Business Applications (EBA)
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Broad Systems Integration Solutions

• Enterprise Resource Planning System (ERP) or
  Enterprise System
• SAP R/3, Oracle, PeopleSoft, JD Edwards, Baan
• Enterprise Application Integration (EAI)
• Re-architect the system
• Requires middleware

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Definitions

• ERP - A large highly complex software program
  that integrates many business functions under a
  single application uses common database
• EAI - A set of technologies that allow the
  movement and exchange of information between
  different applications and business processes
  within and between organizations middleware focus

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ERP Growth Projections (millions)
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Advantages of ERP

• Consolidates business functions
• integrate broad range of disparate technologies,
  along with the processes they support
• Create a new foundation on which next-generation
  applications can be developed
• Replace creaky legacy systems
• Excellent internal data and process integration
• Provide greater control
• Improve integration of decisions throughout
  organization
• Improvements through adoption of best practices

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Disadvantages of ERP

• Often requires extensive organizational change -
  hence business involvement in justification and
  implementation
• Some processes are not supported by ERP some
  legacy systems are usually retained
• Does not provide integrated reporting and
  analysis environment for internal and external
  data
• Very expensive
• Appropriate implementation strategy is needed
• Business units must use common data names and
  business processes

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EAI

• Re-architect systems so that an intermediate
  layer is created between applications programs
  and databases
• Application programs are modified to call the
  middleware, which then calls the databases
• Middleware focus
• Limited business process change required
• 35 development time is devoted to interfaces
  EAI focuses on interfaces

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Advantages of EAI

• Allows particular program to be replaced without
  changing the database
• Reduces maintenance only interface between each
  program or database and middleware needs to be
  maintained
• Achieves internal data integration and supports
  process integration without replacement of legacy
  systems
• Supports best-of-breed

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Disadvantages of EAI

• Still in shakedown stage (less mature than ERP)
• vendor proliferation
• experimental support for n-way integration
• Requires vas amount of technical expertise
• More difficult for multiple applications (though
  works well with pairs of systems)
• Requires some modification of source systems
• Process integration requires organizational
  change and business involvement
• Proprietary technology (not open)

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ERP Dilemma
Tight integration Single view of business Process
orientation Rich functionality
Lost of agility Implementation failure Missed
opportunities
Improved efficiency Lower cost Controlled
operations
Benefits
Risks
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SAP

• Founded in 1972 in Walldorf, Germany
• Employs a workforce of over 9,000
• Offices in over 50 countries
• Implemented by more than 9,000 companies
  worldwide
• Reported revenues for 1997 (9 months were 3.8
  billion (61 sales growth)

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What is SAP?

• Leading global provider of client/server business
  application solutions (72)
• World leader in packaged human resources
  software
• Number one vendor of standard business
  applications software
• Fifth largest independent software supplier in
  the world

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More SAP Fact

• 7 of the top 10 companies in the world use SAP
  software
• 9 of the 10 most profitable companies in the
  world use SAP software
• 7 of the 10 companies with the biggest increase
  in profits in the world use SAP

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SAP Employment Opportunities

• Consultant (1yr SAP exp.) 175/hr
• Senior Consultant (2-4yrs) 200-225/hr
• Project Manager (min. 4yrs) 200-300/hr
• Practice Manager/Partner 400-500/hr
• (partner directing SAP practice)

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SAPs Major Products

• R/2 - Applications for the mainframe environment
• R/3 - Applications for open client/server systems

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Application Modules

• Financial Accounting
• Controlling
• Asset Management
• Project Systems
• Workflow
• Industry Solutions
• Human Resources

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Application Modules (cont.)

• Plant Maintenance
• Quality Management
• Production Planning
• Materials Management
• Sales and Distribution
• Data Warehousing (EOY 1997)

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SAP Growth

• Target small customer market
• More modular R/3 (version 4.0)
• Shortened implementation time
• New vertical markets (business process objects)

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SAP System Benefits

• Integrated
• Flexible
• Designed for all types of businesses
• Worldwide usage
• Interactive Processing
• Open System

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SAP Reality

• Complete systems can cost tens of millions of
  dollars
• Implementation can take several years