8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 1/24

e-BUSINESS AND ERP

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 2/24

e-Business� e-Business (electronic business), involves

communicating & conducting businessthrough the Internet. ± buying and selling ± customer service ± collaborating with business partners

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 3/24

Definition

³T he use of electronically enabledcommunication networks that allowbusiness enterprises to transmit andreceive information.´

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 4/24

E-business helps in:

� Improving performance� Strengthening linkages in the value chain

± Business to Business (B2B) ± Business to Consumer (B2C)

� Increasing efficiency in selling, marketing & purchasing

� Improving customer service� Reducing cost� Streamlining business processes� Helps create customer focused business environment

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 5/24

Role of ERPT raditional ERP systems take care of internal value chain (i.e., within a company)

� It helps integrate different functional unitswithin an organization (finance, marketing,

manufacturing, HR etc.).� Connects the various components of theenterprise through a logical transmission andsharing of data

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 6/24

ERP if implemented successfully:

� enhance and redesign business processes� eliminate non-value-added activities� allow companies to focus on core and truly

value-added activities

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 7/24

ERPF ocus on theefficiency andeffectiveness of internal process

e-Business

Focus on efficiencyand effectiveness of

external, crossenterprise processes

Extended ERP

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 8/24

InternetT ool for globalizing a business

� A tool that helps tie together anorganizations employees, suppliers andcustomers

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 9/24

ERP Extended ERP

� Companies are now turning their attentionoutward to engage in business through theuse of the Internet and Web-basedtechnologies.

� ERP functionality has to move onto the Webbecause that is where most of the corebusiness processes are being carried out

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 10/24

ERP extended«� When e-business is integrated with ERP, the whole

extended system provides a vision of businessprocesses that span multiple businesses andenterprises .

� Companies are now able connect with suppliers andcustomers also.

� Companies need to be able to adapt their ERPsystems to the emerging world of e-business

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 11/24

M odern Enterprise = ERP + e-Business

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 12/24

e-Business & ERP

� With Web-based technology, information canmove swiftly through the value chain

� Companies thus add functionalities toimplement specialized applications that can

meet their needs.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 13/24

Componentization

� With the popularity and widespread practiceof the object-oriented approach, component-based techniques became popular.

Componentization is the action of breakingup a large, monolithic ERP system intoindividual modules that would work together

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 14/24

� Most ERP vendors are converting their ERPsystems to a component-based architecture.

� Based on the object-oriented concept, eachfunctionality of ERP can be viewed as aseparate encapsulated entity and treated asa component.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 15/24

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 16/24

ERP modules from M ultiple vendors

IBM research shows that only 20% of companies use a single ERP vendor. Almost80% of companies use multiple vendors

� Since an ERP system can be broken down into components

by functionalities, the vendors would be able to quickly fix or add functionality to ERP systems.An individual component of ERP can be enhanced withoutaffecting any other functional components

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 17/24

F lexible Customization

� Companies need flexible ERP systems wherenew applications can be added quickly

� Companies also need flexible systems to fitinto B2B and B2C solutions.

T he ultimate goal is to develop ERPcomponents that are compatible with oneanother & that can be easily integrated withe-business and other applications.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 18/24

Common ERP/e-Business Platforms(Oracle/SAP)

� Some major ERP vendors launched their Web-enabled ERP in the early part of theyear 2000 to create the B2B and B2Csolutions.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 19/24

Oracle

� Oracle¶s Internet Platform provides acomprehensive solution for ERP integration

� Its e-business platforms have the followingfunctions:

± Reduce complexity from interlinkedapplications and packages ± Consistent mechanism for inter-application

communication ± Global operation

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 20/24

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 21/24

� Enterprise Application Integration (EAI)software helps to integrate applications bypackaging together the commonly usedfunctionalities.

� EAI will make ERP/e-business integrationand componentization simpler and morepractical.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 22/24

ConclusionT oday, extended ERP systems with front-end e-business connect an organization¶s³ front office´ (customer facing) and ³ backoffice´ (business processes) operations tomeet its global emerging market.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 23/24

� With the right strategy and solid execution,an enterprise can transform itself to competeand grow in today¶s rapidly changingbusiness environment.

8/6/2019 E-business and Erp

http://slidepdf.com/reader/full/e-business-and-erp 24/24