Enterprise Information Systems for E-Business

Transcription

1 Enterprise Information Systems for E-Business Timo Soininen T Lecture Enterprise Information System, My Definition An large-scale information system that supports the operations and processes of an organization Operations: manufacturing, financial accounting Organization: company, university, bank, ministry, Not a single-user, single-task-focused application (Contrast with Alter, 2002) Q: What enterprise systems do you encounter in your daily life? Motivation Contents These are the systems on top of which (e-) business is implemented There are standard packages that can be used for this old, stable ones and new, rising ones That s what remains, even after all the hype has crashed SAP alone is used by more than 60% of the major firms However, implementing or taking such a systems into use is challenging Motivation, challenges Categories of information systems based on the functions of a company Enterprise Systems/Enterprise Resource Planning Product Design Systems/Product Data Enterprise System Integration Summary Why is it Challenging? The systems are huge implementation several years, costs 10 5 to 10 6 euros, dozens of people with different backgrounds representing different departments involved They support the critical operations of a company Hershey, others,... The following based on (Sumner, 2000) case studies of Enterprise Resource Planning-system projects in seven large companies discuss those that seem the most pertinent or controversial for enterprise systems (Some) Risk Factors in ERP Projects Organization no re-design of business processes +/- no enterprise-wide design for integration (process, db,...) + Skill mix insufficient user training, internal expertise +/- lack of business analysts + failure to mix internal and external expertise +/- difficulty to recruit and retain experts in ERP + structure no senior support + no champion + Software systems design failure to adhere to standards +/- lack of integration + User involvement no commitment by customers +/- user resistance + ineffective communication Technology planning/integration + 1

2 Information System Categories Based on a functional decomposition of the company (Alter, 2002) Sales & Marketing Systems Supply chain systems Manufacturing systems Finance systems Product design systems There are also other, important and new systems, also probably both important and new ones Sales & Marketing Systems Point-of of-sale (POS) systems Combined with customization techniques, can be used in direct marketing E-commerce platforms Telemarketing Sales force automation (SFA) Customer relationship (CRM) Product Configurators Supply Chain Systems Supply chain Manage information about what inventory is available, when previously ordered material will arrive, and when material will probably be needed based on manufacturing schedules or sales forecasts Determine material requirements Generate new orders Send orders to suppliers Obtain commitment dates Verify that the orders actually arrived Manufacturing Systems Material requirement planning (MRP) Integrate purchasing & production activities Calculate a schedule based on the output requirement Electronic data interchange (EDI) The electronic transfer of business data between the computerized information systems of two firms Computer integrated manufacturing (CIM) Computerized data collection + integrated data flows between design, manufacturing, planning, and other business functions The use of CAD, CIM, and other techniques lead to an increase in the information content of products 2

3 Finance Systems Electronic funds transfer (EFT) Accounts between companies settled electronically Electronic cash Program trading Automate buy/sell decisions Product Design Systems CAD systems accept coded descriptions of components and processes and graphically Enterprise Systems display the resulting product specifications A major systems in this are is the Product Data System (PDM) Wide range of applications Enterprise Resource Planning (ERP) Enterprise resource planning (ERP) ERP is an integrated solution to the problem of how to control all major business processes with a single software architecture in real time. It is a process of planning and managing all resources and their use in the entire organization. Leading ERP software producers - SAP, Oracle, J.D. Edwards, Computer Associates, People Soft Main Objective of ERP to integrate all departments & functions across a company onto a single computer system. Owners, financing inst., public bodies, society Order processing Marketing and sales Customers ERP Product design and engineering control MS Administration, financing, etc. planning Materials acquisition Suppliers 3

4 ERP (Alter, 2002) Enterprise resource planning (ERP) systems provide an integrated information system that covers broad functions within an enterprise. The capabilities of a complete ERP system include, among others: Operations and logistics: inventory, MRP, production planning, quality, shipping. Financials: accounts receivable and payable, cash, general ledger, profitability analysis. Sales and marketing: order, sales, pricing, sales planning. Human resources: employee time accounting, payroll, travel expenses. Basic data Customers Vendors Material Bill of material, CAD Work plan, plant maintenance plan, inspection plan, CAP Work center resources and tools Rough-cut planning profile SD Customer order processing Customer requirements PP Demand Materials planning Rough-cut capacity planning Planned orders Opening period Order: -Creation - Release - Confirmation Shop floor control Capacity leveling Equipment CAP Document SD Shipping, billing, Classification transport Sales planning Profit planning SOP Planned requirements Forecasts QM PM Inspection lot Inspection order MM Direct requisition Purchasing Inventory Goods receipt Material valuation Invoice verification Repair Maintenance (C) Deloitte Project system Network Projects Warehouse Definitions of PDM Product Data Systems Crnkovic, Asklund, Persson Dahlqvist (2003): PDM is the discipline of controlling the evolution of a product and providing other procedures and tools with the accurate product information at the right time in the right format during the entire PLC Definition: PDM (CIMdata) Manages all product type (definition), individual and process related information Images and hard-copy documents Digital files Electronic documents: specifications, configurations, purchasing orders CAD Drawings, models, parts, assemblies CAE analysis Part information, NC programs, and process plans Database records Manages the entire product life-time Product design, release, change and termination Product engineering, manufacturing, logistics, maintenance, dismantling, recycling PDM: a Broad and Narrow Definition The broad definition PDM exemplified by the previous ones The narrow definition of PDM of engineering data in the product development department providing access to that data to and repository of some data from systems of other departments 4

5 Screw Screw partno Length partno Length axy mm axy mm zvy mm zvy mm dgf mm dgf mm Drawings/Documents NC NC R&D: Concurrent Engineering PDM facilitates Up to date product document data: always work with right version Real time and complete product structure Improved use of standard parts Quick and easy access to product data Real-time tracking and status for : workflow Early evaluation of manufacturing processes Many more... Owners, financing inst., public bodies, society Order processing Marketing and sales Customers Product design and engineering control PDM Administration, financing, etc. planning Materials acquisition Suppliers PDM Functions PDM Functions Major focus focus of of current Generally supported Data Vault and Document developments Product Structure SPEC Workflow and Process SPEC 3D 3D ECO ECO ECO ECO Enterprise Systems Integration Some support, independents + Support utilities establishing market Little support As PDM becomes Classification implemented across & Retrieval Program different industry sectors, functional priorities change. 25/11/2003 Copyright 2001 Timo Soininen & Asko Martio 25 Islands of automation: result of the development Point-to-point integration Enterprise Resource Planning system Separate systems which cannot exchange information Large amount of manual work is required to prepare input for the various systems and to process the outputs, leading to errors. Q: What islands of automation do you encounter? Order entry Materials CAD CAM Shipping PDM system Legacy application ecommerce Supply Chain Mgmt CRM solution 5

6 EAI Hub and Spoke architecture PDM system ematrix Enterprise Resource Planning system SAP R/3 Supply Chain Mgmt I2 B2Bi picture Comp any A EAI Company B Legacy application Pakki EAI services CRM solution Siebel B2B Middleware Company C WWW ecommerce Summary Commercials There are stable enterprise systems on which to implement e-businesses enterprise resource planning product design/pdm supply chain point of sales manufacturing However, applying them is not easy BPR, organizational issues, complexity,... And, they must be integrated EAI, B2B integration T Enterprise Systems Integration 3 cr autumn T Seminar on Product Data Technology 2-6 cr P V spring T Special Topics in Information Technology for II 2-6 cr P V spring / T Project course on ICT Enabled Commerce 4crP V spring 6