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ERP II: A conceptual framework for next-generation enterprise systems?

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ERP II: A conceptual framework for next-generation enterprise systems?

  1. 1. ERP II: A conceptual framework fornext-generation enterprise systems? Charles M ller Aarhus School of Business, Aarhus, Denmark Journal of Enterprise Information Managament, 2005
  2. 2. CONTENT Definition ERP/ ERP II Structure - Abstract - Introduction - Chapter 1-4 - Conclusions References ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                    
  3. 3. Definition ERP/ ERP II ERP: Enterprise-Resource-Planning Integrate external and internal Management information across an entire organisation efficient application of the resources of a company (capital, assets, equipment, employees) goal: optimization of business processes   between  all  business  functions  inside  the  boundaries  of  the   organization  and  manage  the  connections  to  outside   1     ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      1/22
  4. 4. Abstract Next generation ESPurpose Analysis of the evolution of ES, ERP Design/Methodo- research and emerging business requirements logy/Approach Findings Proposal of ERP II, present ES concepts comprehensive ERP II generally vaild for corporate- wide enterprise systems Research Paper-conclusion: ERP research needs to broaden its perspectivelimitations/ Practicalimplications Implications First step towards a tool to analyse and design complex Originality/ First attempt to formalize and record ERP II and the next-generation ES Value Operating Systems, Manufacturing resource planning, Supply Chain Keywords Management Conceptual Paper Paper Type ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      2/22
  5. 5. 2  parts:    Introduction 1) Brief  Introduction  into  the  topic   2)  Structure/  Topics  the  paper  deals  with    The author refers to 4 different journals/ books 4 statements:1   (GartnerGroup, Bond et al., 2000) Transformation of ERP2   Research needs time to respond to new business practices inertia of IS delayed the emergence of ERP research (until the late 1990s) (Klaus et al., 2000) 3   ERP research interest strategic & managerial perspective on ES management (Shanks et al., 2003) 4   Supply Chain Management as a collaboration and integration instrument importance of ES trend: ERP II (Christopher, 1998) ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      3/22
  6. 6. 2  parts:    Introduction 1) Brief  Introduction  into  the  topic   2)  Structure/  Topics  the  paper  deals  with     Analysis of the ERP II concept Evaluation of business requirements Existing ERP theory Current business practices First chapter evolution of enterprise systems Analytical concepts & ERP research approach Second Chapter new requirements for ES to ERP II Third Chapter framework of the ERP II concept Fourth Chapter discussion of the research and business implications of next-generation ES ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      4/22
  7. 7. First Chapter Enterprise systems in retrospect Concept of ES: development of 50 years now ERP and ERP II framework conditions: changing business requirements, newIntroduction of computersBackground for IS develop-ment (more areas involved)Often embodied in SAP R/3 Table 1: Enterprise systems in retrospect ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      5/22
  8. 8. First Chapter Enterprise systems in retrospect ERP: standardized software package designed to integrate the internal value chain of an enterprise (integrated database) planning & controlling of resourcesERP hype in the late 1990s because of preparation for Y2K Ups and downs INFO Y2K or millennium bug: Problem for digital and non- Key drivers for the implementation: digital documentation & data- storage situations - Y2K system concerns Reasons: because of storage space scarcity in the 60s and 70s - globalization of businesses reduction of digits (instead of a - increasing nat. & intern. Regulatory environment four-digit year, 2 digits) Consequences: wrong sorting - Business Process Reengineering, QM and calculations (millennium- - change) ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      6/22
  9. 9. First Chapter Enterprise systems in retrospect Differentiating factors of the complexity of ERP projects: - number & variety of stakeholders in implementation projects - high implementation & consultancy costs - integration of business functions - Management of change & BPR (Business Process Reengineering) ERP implementation has to be understood as a business transformation (multi-dimensional model encompassing people, business, technology and process issues) ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      7/22
  10. 10. Second Chapter New business requirements SCM: one of the most important new business concepts New concept of the SCM because of globalization and outsourcing In 1990: implementation of major structural changes in the SC of companies - - Advanced Planning and Scheduling systems APS or SCM systems: facilitate the central mana- gement of the supply chain activities & processes ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      8/22
  11. 11. Second Chapter New business requirements Distinction between Downstream & Upstream SCM Just-in-time Managing information became complex emergence of the internet new opportunities & threats to supply chain managers E-business, E-commerce ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      9/22
  12. 12. Second Chapter New business requirementsBenefits from implementing ERP in combination withSCM systems:- Integration of processes- Optimization of processes- Transformation of the company based on ES data ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      10/22
  13. 13. Third Chapter The conceptual framework of ERP II ERP hype in 2000 (Y2K), afterwards decline Question of meeting the e-business challenge - ERP II (GartnerGroup in 2000): - expansion of the traditional ERP (standard systems today incorporate ERP II) ERP E-business Collaboration in the SC ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      11/22
  14. 14. Third Chapter The conceptual framework of ERP II INFO Business Business Intelligence (BI) analytical Decision support system Intelligence Systematical emerging pattern of generic application architecture analysis of data Goal: extraction of information to gain competitive advantage ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      12/22
  15. 15. Third Chapter The conceptual framework of ERP II Table 2: The four layers in ERP IIFigure 1: The conceptual framework of the ERP II ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      13/22
  16. 16. Third Chapter The conceptual framework of ERP II Central Components (Process Layer) - ERP: central component of ERP II (modules like financials, sales, distribution, logistics, manufacturing, HR, quality & project - Based on Business Project Management (BPM) Business Activity Monitoring - BPM flexibility of ERP II - Vertical solutions for customizationFigure 1: The conceptual framework of the ERP II ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      14/22
  17. 17. Third Chapter The conceptual framework of ERP II Corporate Components (Analytical Layer) - Components that enhance and extend x central ERP functions decision support x - SCM: support planning & production of goods - CRM: Management of functions regarding customer service/ relationships x - PLM: Prod. Lifecycle Management (product data management, more efficiency, innovative & profitable products)Figure 1: The conceptual framework of the ERP II - ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      15/22
  18. 18. Third Chapter The conceptual framework of ERP II Collaborative Components (Portal Layer) - Communication and integration between the ERP system and external actors x - B2C: e-commerce commercial sales transactions via the internet need for an extensive infrastructure (catalogue, - B2E: intranet provides the employees with information within a company knowledge management x -Figure 1: The conceptual framework of the ERP II ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      16/22
  19. 19. Fourth Chapter The adoption of next generation enterprise systems Conceptual framework of ERP II: theoretical model based on generalized observations & on an analysis of the past and present of enterprise systems focused on business requirements & available technology but not on actual business requirements business transformations SURVEY ON ERP ADOPTION - Based on telephone interviews with ERP managers - Conclusion: ERP had become a contemporary & important technology, single vendor strategy as the dominant ERP strategy - 14 % of the enterprises had more than 1 ERP system - 67 % of the installations all have incorporated part of the ERP II components in their recent releases ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      17/22
  20. 20. Fourth Chapter The adoption of next generation enterprise systems Hypothesis: workflow of a company The ERP II conceptual framework needs to be extended (integration of the extended enterprise perspective )Best-practice case Dell: successful example of SCM (arrangement of customers,suppliers and the company itself) purpose-build computers- G2 strategy (based on an open flexible architecture)- EAI middleware (Enterprise Appl. Intergr.) to integrate the SC in adaptive networks BoB) strong competition with ERP ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      18/22
  21. 21. Fourth Chapter The adoption of next generation enterprise systems ERP strategy is widespread and successful, but the network perspective of the ERP transformation is really important- The ERP II conceptual framework needs to be improved combination of corporate and network perspectives on supply chain integration ERP II as an important extension of ERP: - combination of the corporate & the network perspectives on supply chain integration - loosely coupled supply chain perspective - the view on application architecture ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      19/22
  22. 22. Conclusions Creation of a conceptual framework for ERP II ERP II is a new vision and takes time to develop within our industry Improvement necessary ERP research needs to be extended into the supply chain The complexity of the internal process change has to be observed ERP II has a focus on e- ERP II is dead long live ERP! ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      20/22
  23. 23. ConclusionsERP is dead long live ERP II !   ERP II is dead long live ERP!   ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      21/22
  24. 24. References 45 references, arranged in alphabetical order ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                                      22/22
  25. 25. Thanks for your attention! ERP II: A  conceptual  framework  for  next-­‐generation  enterprise  systems?           Jennifer  Keck                                                                                

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