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PART 2

Ebusiness Architecture


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PART 2

Chapter 3: Evolution and Applications of theInternet

Chapter 4: Enterprise-Wide and Inter-EnterpriseSystems

Chapter 5: Security and Controls

Chapter 6: Billing and Payment Systems

Copyright 2013 Pearson Canada Inc 4-2


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Learning Objectives

1. Describe what is meant by enterprise-wide systems

2. Describe how enterprise-wide systems fit with

ebusiness strategy

3. Identify the key features of enterprise systems

4. Describe how inter-enterprise systems are created

5. Evaluate the structures for setting up enterprise andinter-enterprise systems

6. Explain how enterprise and inter-enterprise systemsare crucial to ebusiness



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Introduction

Enterprise-wide systems Any information systems used throughout an

enterprise with the intention of enabling aconsistent type of functionality as well as

enterprise-wide access to the same data

Designed to have everyone on the same page inthe organization regarding access to information


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Introduction

Enterprise-wide systems can be purchased as onemajor piece or by linking together multiple disparatesystems using Middleware and XML tools.

Middleware permits ERP systems to share data withlegacy systems.



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Introduction..contd.

Middleware A general term for any software or programming that

serves to link together or communicate between twoseparate and different programs

Legacy system

An old, usually outdated application that has not yetbeen replaced or upgraded


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ERP Systems

ERP systems overcome the traditionalfunctional silos that have historicallyinhibited the free flow of information inenterprises.

ERP systems are large, have acomprehensive set of functionalities and use

centralized databases to hold the data of anorganization for personnel access and use


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ERP Systemscontd.

Due to the Y2K bug, many organizationsimplemented ERP systems which requiredmassive business analysis or businessprocess reengineering (BPR).

BPR is a fundamental rethinking and radicalredesign of existing business processes to addvalue or prepare for new technologies


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ERP Systemscontd.

ERP vendors include: Oracle, SAP andMicrosoft

ERP systems are modular in nature e.g. financialaccounting, sales and distribution modules etc.



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Characteristics of ERP Systems

ERP systems are client-server systems builton relational database systems

Client-server systems

A network of configuration that evolved from networksbuilt around central computers (servers) to providecomputing power to the users on their own desktop

computers (clients).


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There are various forms of client-server systems differentiatedbased on strategic objectives.

Client servers systems are defined based on the three elementsof an information system: data, processing (applications) andoutput (display).

The strategic forms of client server-systems are derived from theidea that these three system elements can be distributedbetween the client and the server in several ways.



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When the applications are distributed to servers

dedicated to applications (i.e. when the processing isdone), the system is referred to as a three-tier client-server system.

If the data are distributed to the clients, this is called adistributed data client-server system.



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Three-Tier Client-Server System


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Relational database systems

A logical database model that relates data in

different tables within the database by sharing acommon data element (or field) between them. Thecommon data element can serve as a referencepoint in the tables to other data elements in a data

record.



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Packaged Software

Commonly known as COTS (commercial-off-the-shelf software) is bought off the shelf, installed

and operated.

ERP systems are a form of packaged softwarewhich is very different from that developed in-

house.



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Business Process Reengineering (BPR)

BPR is one of the characteristics of ERP

systems in a broad sense, because all ERPsystems require so many changes in businessprocesses that BPR is needed to fit thesoftware into the business or, more correctlyto fit the business into the software.



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Implementing ERP

There are so many failure stories associatedwith ERP implementation e.g. Hersheys SAPimplementation: www.hershey.com.Hersheys case was a classic systems

sizing issue.

Systems sizing is the process of ascertaining the

volume and processing requirements that will beplaced on a new information system, and therebydetermining the size of system required, includinghardware and software.
http://www.hershey.com/http://www.hershey.com/


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Implementing ERP.

Hershey also has issues with stress testing.

Stress testing is a process of high-volume entry,processing and output of test data designed to

determine whether the system has the capacity tohandle the volumes that will be required of it.


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Implementing ERP.

Another issue faced by this company wasTraining. Hershey presumablyunderestimated the amount training required

and staff were unable to cope. Training is acritical success factor for systemsimplementation.



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Integrating ERP

Integrating ERP can be challenging. A majorchallenge arises when the enterprisesbusiness processes need to be modified to fitthe processes built into the ERP system.


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Integrating ERP

A best of breed approach is a good way toachieve integration.

Middleware (and Enterprise ApplicationIntegration software) and XML are useful forintegration as well.



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Steps in ERP implementation

Phase 1: Definition Phase 2: Operations Analysis

Phase 3: Solution Design

Phase 4: Build Phase 5: Transition

Phase 6: Production


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Collaborative and Inter-EnterpriseSystems

Collaborative systems are information systemsthat interact between enterprises to enable

them to work together on common businessinitiatives and ventures.


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Collaborative and Inter-

Enterprise Systems Useful for collaborating with customers,suppliers, personnel and competitors. Examples:

Ciscos web tool for collaborating with customers.

Ford Motor companys collaborative techniques forproduct design

The use of Lotus Notes to enable personnel onprojects by Consultants in Toronto, Halifax and

Vancouver Covisints trading exchanges as a form of

collaboration with competitors.



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Collaborative and Inter-

Enterprise Systems Managing collaborative systems is through

outsourcing arrangements. The management

process depends on systems owners, andagreement issues



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Summary

Enterprise-wide systems pull together dataand make the data available to everyone inthe enterprise

ERP systems share characteristics of

enterprise-wide systems

Middleware and XML help to achieveintegration of ERP with other enterprise

systems The internet facilitates the use of

collaborative systems.


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Class Questions

What is an Enterprise Wide System?

What is the general term for any software orprogramming that links together or

communicates between two separate anddifferent programs?

What does BPR stand for?

What is a client server system? Name the 6 steps in ERP Implementation.

What are Collaborative Systems?



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Class Questions

What is the process of using middleware toknit applications together across anenterprise?

What are the risks of a best-of-breedstrategy?

What is packaged software commonly known

as? What is stress testing?


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