Materiales y recursos

Today’s extended EBS is the product of the merger of the eight core business functions with the integrative networking capabilities of advanced Internet- enabled software applications. Realizing today’s requirements for speed, agility, real-time control, and exceptional customer satisfaction means that enterprises must employ a variety of technology applications beyond the core business model that enable the construction of a business architecture that is effective, efficient, purposeful, integrative, and collaborative. The resulting system, consisting of a mixture of often disparate noncore EBS technology applications, data collection devices, B2B point solutions, and legacy systems, must be capable of being disas- sembled and rapidly reassembled into a single framework that matches the needs of the marketplace.

The merger of information technology suites as a business enabler is not a new idea. Historically, even in the days of silo-based organizations, the perpetual sys- tems challenge centered on integration and collaboration issues. The advent of e-business simply heightened the gaps separating the “closed” environment of local- ized ERP and legacy systems and the requirement for “open” or networked operat- ing systems, databases, and hardware platforms. Effectively meeting this challenge requires businesses to develop architectures and frameworks that permit enterprises to synthesize available integration software and existing solutions to address the ever-evolving structure of today’s demanding business climate. Integrative infor- mation technology is about much more than just moving information back and forth: it is also about integrating into whole business processes the capabilities of enterprises that span the supply chain.

At first sight, the application suites comprising the universe of today’s enterprise systems appear to be a maze of software products. ERP, customer relationship man- agement (CRM), SCM, EDI, supplier relationship management (SRM) and other technology acronyms litter current business literature and impart an impression of

incoherency, comprehendible only to a select club of industry analysts and “techies.” Figure 3.3 is an attempt to assemble the core EBS functions and the possible com- ponents of today’s extended business system into a coherent model. As can be seen, the model is divided into three distinct regions of software products: core EBS, Middleware, and connectivity-enabling applications. Each of the regions can be briefly explained as follows:

1. EBS. The eight core functions of EBS stand at the center of today’s integrative information business solution. As described in detail at the beginning of this chapter, an EBS acts as the hub or “backbone” of an enterprise’s transaction and information management functions. Using the core EBS functional soft- ware applications as a foundation, today’s extended EBSs have been gradually converging with once stand-alone point solutions and Web-based applications to provide enhanced functionality and networking capabilities not available in the past. For example, supply chain planning (SCP) and APS have dramat- ically enlarged MRP planning functions. e-Procurement is encroaching on traditional purchasing functions, while CRM has radically expanded the one dimensional customer management functions of legacy systems. Also, the trend to outsource select business software to third parties, such as Software- as-a-Service (SaaS), is moving tomorrow’s EBS toward being a mixture of proprietary backbone applications, on-demand add-on software suites, and e-business capabilities. Customer Mgmt. Assets Product data Logistics Human resources Finance Procurement Manufacturing EBS B2C CRM I CMM APS MES SCM LMS Electrvonic settlement B2B SRM

1. Supply chain replenishment 2. Collaborative planning 3. Event management 4. e-Logistics 5. Supply webs 6. Inbound WMS/TMS 7. 3PLs

8. Global Trade Management 1. e-Selling

2. e-Service 3. Sales force automation 4. Collaborative demand planning

5. e-Product configuration 6. Data Warehousing 7. e-Nabled field service 8. Outbound WMS/TMS 1. e-Procure/MRO 2. Trading exchanges 3. e-Supplier collaboration 4. Web-site branding 5. CFPR processing 6. Capability-to-promise 7. Auctions/dynamic pricing Portals e-Business universe EDI Web Middleware layer Business intelligence

2. EDI. The definition, advantages, and drawbacks of EDI are discussed in the previous chapter. In summary, EDI refers to the structured transmission of data and documents between organizations by electronic means. Even in this era of technologies such as XML Web services and the Internet, EDI is still the data format used by the vast majority of companies for the transaction of electronic commerce. EDI documents generally contain the same informa- tion that would normally be found in a paper document used for the same business function. Trading partners are free to use any format for the trans- mission of information. While recently there has been a move toward using some of the many Internet protocols for transmission, most EDI is still trans- mitted using a VAN.

3. Web-Based Applications. The third major area of today’s extended EBS is compromised of a variety of customer- and supplier-side software appli- cations that are Web-enabled and directly integrated with EBS backbone applications. When they were first introduced, these applications were simply “bolted-on” to supporting EBS applications. Today, the former monolithic structure of EBS is being decoupled and merged with these supporting e-business tools. For example, as Figure 3.3 illustrates, APS that provide manufacturing functionality, such as finite loading, optimization, and production synchronization, has been integrated with traditional MRP to provide planning and control capabilities not possible within the stan- dard ERP architecture. This merging of traditional ERP and specialized applications is expected to accelerate. A brief review of the applications illustrated in Figure 3.3 is as follows:

B2C and CRM

− (Customer Relationship Management). Utilizing the Internet to sell directly to the customer has become one of today’s top avenues for sales management and is discussed in detail in the previous chap- ter. CRM applications enable companies to closely manage all aspects of a customer’s relationship with an organization focused on increasing customer loyalty, retention, and profitability. CRM toolsets provide an integrated view of customer data and interactions allowing sales and marketing to be more responsive to customer needs. CRM components typically include the following: Internet-driven order management, sales force automation, promotions and event management, social network- ing, customer information storage, analytics for marketing research, and customer service.

CPC

− (Collaborative Product Commerce). This can be defined as the enable- ment through Web-based tools of virtual communities of manufacturing and product designers focused on new product development. Because it is Internet empowered, CPC permits companies to focus more intensely on their core capabilities while leveraging external design partnerships to dramatically decrease the time-to-market of product configuration and product rollout.

MES

− (Manufacturing Execution Systems). These systems manage and monitor work-in-process (WIP) data, including manual or automatic labor and production reporting, online inquiries, and links to tasks that take place on the production floor. Among the core functionalities of a MES can be found WIP tracking (labor, machines, materials), inventory management, production reporting (finished parts/goods, scrap, material issues, and returns), machine setup and downtime, online work orders, instructions, documentation, and drawings, quality management (sam- pling tests and employee certifications), automation integration (PLC/ SCADA/HMI/SPC), and other functions. While most MES do nothing to connect the shop floor with the broader supply chain they do enable companies to better coordinate manufacturing with overall supply chain needs.

SCM

− (Supply Chain Management Applications). These applications enable not just companies, but whole supply networks to be closely integrated. SCM applications encompass all operations within the supply chain, including the sourcing, acquisition, and storage of inventories, the sched- uling and management of WIP, and the warehousing and distribution of finished goods. SCM solutions enable businesses to streamline and automate the planning, execution, and control of these key activities. Additionally, since there are often many third parties involved in a sup- ply chain, SCM software is designed to enhance communication, col- laboration, and coordination with suppliers, transportation and shipping companies, intermediaries, and other partners. Internet-enabled SCM provides for the synchronization of the supply channel community, mini- mization of channel costs, optimization of network capabilities, real-time connectivity of channel supply and demand, and instantaneous visibility to demand and supply conditions within the entire supply chain network. Through the use of optimization software, whole supply networks can make better decisions concerning priorities, demand, inventory, and asset utilization.

BI

− (Business Intelligence). This comprises performance management and data warehouse software platforms. This software is used to access, trans- form, store, analyze, model, deliver, and track information to enable fact-based decision-making and extend accountability by providing all decision-makers with timely, relevant information. Additionally, business analytics is a framework that extends beyond software and systems to include culture, process, and performance strategies. The software tools considered part of business analytics span several areas, including analyt- ics, data integration, query/reporting, and performance management. B2B and SRM

− (Supplier Relationship Management). Much has already been discussed about the content of B2B Web-based applications. Tools in this part of the extended EBS application suite are focused on deploying

independent, private, and consortia exchanges to facilitate materials and finished goods acquisition, requisitioning, sourcing, contracting, order- ing, and payment utilizing online catalogs, contracts, POS, and shipping notices. Similar to CRM, SRM software ensures that effective collabora- tive relationships are being formed, the right suppliers are being used, supplier performance targets are being hit, and buyers are paying the right price for the quality and services contracted.

e-Finance and Human Resources

− . The utilization of Internet technologies

to facilitate financial and human resource functions is a developing ele- ment in assisting companies to build competitive advantage in today’s complex, global business environment. e-Finance focuses on embedding core banking services, such as invoicing and payment, financing, and risk management within purchasing and logistics functions. A significant area is international commerce where Web applications are used to settle transactions in real-time regardless of currency. In the area of human resources, companies are expected to make much greater use of online tools to assist employees populate and access personnel databases, such as human skills repositories, recruiting, hiring, compensation, payroll, and knowledge management solutions housing the expertise and best prac- tices of an entire corporate culture.

Portals

− . Portal technologies are designed to provide company personnel and trading partners with secure, personalized access to data and self-ser- vice applications enabling them to react to changes in production sched- ules, forecasts, and other information. Usually information is accessed through Web browsers. The data retrieved is normally static and there is no direct access to the stored data. Not to be confused with PTXs, which require extensive system-to-system, application-to-application integration at the process level, portals provide people-to-system coordination where data from core functions such as ERP can be extracted, consolidated, and published on a portal for trading partners to see. Portals provide an effective medium to access information and knowledge across the supply network while at the same time reducing the costs of distributing and sharing content and applications.