FIT3138 W3 - Development of ERP and Enterprise Systems Architecture

What three broad developments led to ERP systems?

• Advances in hardware and software

• A vision of integrated information systems

• BPR that shifted organisations from a functional focus to a process focus

What business pressures encouraged ERP adoption?

• Economic pressure and downsizing in the 1980-1990s

• Process-oriented models over information silos

• Top-heavy organisations that reacted slowly

• Y2K replacement needs

• Later pressure to substantiate internal controls associated with Sarbanes-Oxley

How did computing and manufacturing developments enable ERP?

• Faster and cheaper hardware increased capacity

• Networks and client–server architecture enabled sharing

• DBMS supported common data

• Inventory systems evolved towards MRP

• Electronic Data Interchange enabled direct exchange of standard business documents

Why is Enterprise Systems Architecture important?

ESA connects functional requirements with the technical foundation

How can ERP modules be adapted to business needs?

Organisations select economically and technically feasible modules, and configure available settings. Reconfiguring a live system while preserving data integrity can be costly and time-consuming

What are the responsibilities of the three main ERP tiers?

• Presentation tier — displays information and collects user input

• Application tier — supports business processing and integration

• Data tier — organises and stores enterprise data and supports access to it

What are the benefits and limitations of three-tier architecture?

Benefits:

• scalability

• reliability

• flexibility

• maintainability

• reusability

• security.

Limitations:

• additional infrastructure costs and a more complex development environment

How do server-centric and client-centric Web architectures differ?

Server-centric architecture enables access to ERP modules through Internet-enabled devices with the server central to delivery. Client-centric architecture downloads applications and data for execution on the client workstation

What is Service-Oriented Architecture?

SOA links repeatable business activities as well-defined self-contained services. Loose coupling reduces dependence on other services' internal implementation and supports flexibility

What are the main benefits and limitations of SOA?

Benefits:

• services across heterogeneous platforms

• location independence

• loose coupling

• service-level access control

• reuse of existing investments.

Limitations:

• inconsistent performance

• enterprise-wide coordination needs

• sophisticated security

• potentially high cost and implementation time

What are cloud computing and Software as a Service?

Cloud computing provides on-demand network access to shared resources that can be rapidly provisioned and released. SaaS delivers applications through the cloud using subscription or usage-based charging

Why is cloud computing important for ERP and what risks accompany it?

Supports scalability and remote access while reducing local hardware and maintenance requirements. Risks:

• data security and vulnerability

• dependence on the provider for reliability and continuity

• Reliability and cost savings are not guaranteed

How do SAP HANA, SAP S/4HANA and SAP Fiori differ?

HANA is an in-memory database/platform. S/4HANA is an ERP suite built on HANA. Fiori provides the user-interface experience.

How does HANA support real-time enterprise processing?

In-memory processing supports fast data processing and real-time analysis

How do cloud and on-premise ERP deployments differ?

Cloud generally shifts system provision and maintenance to the provider with subscription charging. On-premise gives the customer more control over deployment, maintenance and local infrastructure. Hybrid arrangements combine both and require integration planning

What factors determine ERP implementation cost and suitability?

• Business needs

• size and complexity

• user count

• customisation and process fit

• hardware

• implementation time and disruption

• training

• organisational readiness

Why is ERP ROI difficult to measure and what formula does the lecture use?

Benefits accrue over years and may be nonfinancial. Other business changes affect profitability so ERP's contribution is hard to isolate. Benefits/Cost

How do master data and document flow support order-to-cash?

Master data provide reusable customer and material details for consistent order processing. Document flow links numbered records so users and auditors can trace the order and related financial activity