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Implications for Management VII. The concept of enterprise system architecture revolves around the functional and technical needs of an organization in order to build a successful system foundation. Both organizational functions and technical components of enterprise systems are not only complex in and of themselves, but also have a complex relationship that must be understood by management and the implementation teams.
When applied to an ERP system, the enterprise system architecture identifies the ERP modules required for the organizational functions accounting, human resources, sales, production, etc , while the technical components servers, networks, software, clients, etc.
Benefits: shorten time-to-market and delivery of higher-quality products. This module is often integrated with supply chain management software and business-to-business applications so that orders with suppliers can take place electronically and with limited intervention. Benefits: cost savings, improved resource utilization, and improved productivity. Inventory is monitored, reconciled, replenished, and reported on by the module so that inventory is on target and not over-stocked or under-stocked.
This function is often front-ended through e-commerce websites and online stores. The marketing portion of this module supports the generation of sales leads and advertising. Reports include budgets, balance sheets, general ledger, trial balance, and financial 3.
Publishing as Prentice Hall 3 statements. Often this module is integrated with Knowledge Management Systems KMS that can compile employee data and allows an organization to best utilize the skills of each employee. Benefits: employee attraction and retention and increased efficiency.
While the modules of an ERP system support the functional silos, ERP architecture also defines the system components required of an organization. The four ERP system architectures are listed below: Three-Tier: Composed of the Presentation, Application, and Database layers, the ERP servers no longer share the responsibility of application and database functions as they are split. The primary benefits of this architecture are scalability, reliability, and flexibility; however, infrastructure cost and complexity are greatly increased.
Web-Based: Composed of the Web Services, Web Browser, Application, and Database layers, the ERP system splits the Presentation layer so that use of the system can extend beyond the walls of the enterprise and can be used by remote users or third-party organizations via web-based technologies. The primary benefit of this architecture is expandability since anyone with appropriate permissions can access the ERP application from anywhere there is Internet connectivity; however, security and performance can be impacted since data transmission has left the control of the organization.
Service Oriented Architecture SOA : More of a methodology than a technology, the functions of a business are broken up into application services that can be reused in other modules throughout the organization. Unlike object- oriented architectures, SOA can extend beyond the walls of the enterprise much like Web-Based architecture. Cloud computing architecture has gained tremendous popularity in the last few years with all major vendors announcing cloud-based services.
All organizations should keep an eye on this platform as Internet connectivity improves both in speed and reliability. There are some privacy and security concerns, which limit the use of this platform currently for ERP; however, this will change in the near future. When an organization has made the commitment to implement an ERP system, managers must keep a few things in mind: As the foundation of a successful ERP implementation, proper enterprise system architecture must be identified and used; ERP architecture is complex and requires vigorous attention, commitment, and involvement from the entire organization, not just Information Services.
In order to take advantage of an ERP system over the long term, organizations must identify one that is flexible with respects to infrastructure, accessibility, and reach. Organizational management must perform an unbiased evaluation of ERP systems by 4. Publishing as Prentice Hall 4 filtering out vendor hype as the best system is the one that fits an organizations culture, business needs, processes and procedures, and budgets.
Google App Engine. Greengard, S. Cloud Computing and Developing Nations. Communications of the ACM, Vol. Knorr, E. What cloud computing really means. Nicholson, J. What is necessary for the ERP implementation to be successful? Enterprise system architecture takes the functions of an organization into consideration to define the necessary ERP modules, as well as the physical components such as hardware, software, and networks necessary to operate the ERP system.
What is ERP system architecture? Why is it important to have good enterprise system architecture? Because it explains the relationships between complex information systems components such as hardware and software, with complex organizational components such as business functions, processes, and people. Without both, there is not a complete understanding of the system and therefore, it will fail.
What is the role of architecture in ERP implementation? To provide support for the various business functions such as accounting, human resources, inventory, etc. Publishing as Prentice Hall 5 5.
List 5 of the major functional modules of ERP. Self-services, performance management, financials, procurement and logistics execution, and product development and manufacturing. Discuss the different types of ERP architectures.
Two-tier: server handles application and database duties. Clients are responsible for presenting the data and passing input back to the server. Three-tier: application, database, and presentation are separated into layers that communicate with each other.
N-tier: any number of tiers defined in an architecture. SOA Service Oriented Architecture : object-oriented architecture that can extend beyond the corporate firewall onto the web. List benefits and limitations of one ERP architecture. Two-Tier Three-Tier Benefits Limitations Benefits Limitations Easy to use Inflexible for growth Can scale well Higher infratructure costs Low infrastructure costs Requires expensive middleware More reliable Complex High-performing small workgroups Changes in database affect application Flexible to changes Proprietary restrictions Lower support and maintenance costs Limited flexibility Able to reuse components More secure 8.
SOA is object-oriented architecture that can extend beyond the corporate firewall onto the web and is more of a software development methodology that is independent of technology than an application, such as Web Services that use specific technologies, such as SOAP or XML.
What are the key benefits and limitations of systems integration? Benefits: better data sharing, improved decision making, cost efficiency, less duplication, and necessary for e-commerce, SCM and CRM Drawbacks: requires initial setup costs, data sharing can create political problems within department and divisions, more security and privacy risks, etc.
What is the role of management in designing enterprise systems integration? Management plays a crucial role in e-integration. People involvement and change management are crucial for enterprise integration and without management support this task can become very difficult. Publishing as Prentice Hall 6 1. Did they achieve these objectives? Great discussion! I think you guys get the main issue from this case.
The project's initial objective or main aim was to use common business processes or standardize, systems and organizational structures across the autonomous divisions within the USA. These common systems across Nestle USA would create savings through group buying power and facilitate data sharing between the subsidiaries. The common databases and business processes lead to more trustworthy demand forecasts for the various Nestle products.
This also allowed the company to reduce inventory and reduce the redistribution expenses. Dunn was faced with having to change the way Nestle USA did business and facing employee resistance to the new business process he tried to push through.
He assembled a team of stakeholders that did not have a stake in the new processes.
Enterprise Systems for Management, 2nd Edition
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Enterprise Systems for Management / Edition 2
Enterprise Systems for Management