ERP XRP amp EAI Koolwaaij

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Date December 1 2000,Version 1 0,Project reference GigaTS D2 2 8. TI reference TI RS 2001 019, URL https extranet telin nl docuserver dscgi ds py Get File 15264. Access permissions Public,Status Final,Editor Johan Koolwaaij. Company Telematica Instituut,Author s Johan Koolwaaij. Petra van der Stappen,With traditional ERP systems attention is.
placed on internal productivity To be able to,participate in e marketplaces ERP systems. should be extended to allow companies to,participate in e commerce In this report we. describe ERP XRP and EAI in e marketplaces,COPYRIGHT 2000 TELEMATICA INSTITUUT. PERSONAL USE OF THIS MATERIAL IS PERMITTED HOWEVER PERMISSION TO REPRINT REPUBLISH THIS MATERIAL FOR ADVERTISING OR. PROMOTIONAL PURPOSES OR FOR CREATING NEW COLLECTIVE WORKS FOR RESALE OR REDISTRIBUTION TO SERVERS OR LISTS OR TO REUSE ANY. COPYRIGHTED COMPONENT OF THIS WORK IN OTHER WORKS MUST BE OBTAINED FROM OR VIA TELEMATICA INSTITUUT HTTP WWW TELIN NL. Giga Transaction Services, The project Giga Transaction Services supports organizations in the development of. innovative transaction services It does so with state of the art knowledge methods and. software tools that allow for effective development of new services Giga TS takes the. business perspective as a starting point looking at networks of organizations and the way e. commerce technology can support them Methods and tools are rooted in a combination of. technological and business knowledge of currently available and future components and e. commerce applications In this way re use of components is promoted and time to market of. services is reduced Fast and effective design and introduction of e commerce services is our. central objective,Giga Transaction Services has three main results.
technology scans and demonstrators aiming at next generation Internet technology as. well as general e commerce tools components frameworks and standards. component libraries for e commerce and electronic trade capturing the essential. elements of business models transaction scenarios and ICT components for e. a tool supported environment for Rapid Service Development RSD a methodology for. the design and development of transaction services linked to software and e commerce. development tools, These products are incrementally built On a regular basis results come available to public. and in seminars and on our web site gigats telin nl we actively disseminate the results. Giga Transaction Services is a knowledge providing project under GigaPort Applications The. Telematics Institute carries out the larger part of the work The project emphatically tries to. actively transfer knowledge and results to companies and organizations in pilot in a next. generation Internet setting Such pilots can consist of experiments with new services the. design or evaluation of e commerce services and architectures or company specific scans. and demonstrators,G I G A T S D 2 2 V,Table of Contents. 1 Introduction 1,1 1 Goal 1,1 2 Structure 1,2 Enterprise Resource Planning ERP 3. 2 1 What is ERP 3,2 2 ERP evolving 3,2 3 Core functionality 4. 2 4 Why not ERP 4,2 5 ERP vendors 6,2 5 1 SAP 7,2 5 2 Oracle 7.
2 5 3 J D Edwards Company 8,2 5 4 Peoplesoft 9,2 5 5 Baan 10. 2 6 ERP prospects 11,2 6 1 Shortcomings of classical ERP 11. 2 6 2 Extending ERP 12,3 Extended Resource Planning XRP 14. 3 1 What is XRP 14,3 1 1 Definition 14,3 1 2 New issues in extending ERP 15. 3 2 XRP vendors 16,3 2 1 SAP 17,3 2 2 Oracle 17,3 2 3 J D Edwards Company 17.
3 2 4 PeopleSoft 18,3 2 5 Baan 18,4 Enterprise Application Integration EAI 19. 4 1 What is EAI 19,4 1 1 Types of EAI 20,4 1 2 Architecture 21. 4 2 XML and XSL as enabling technologies 23,4 3 EAI vendors 23. 4 3 1 IBM 24,4 3 2 NEON 24,4 3 3 Mercator 25,4 3 4 TIBCO 25. 4 3 5 SUN 25,4 3 6 BEA systems 25,G I G A T S D 2 2 VII.
4 3 7 STC 26,4 3 8 Vitria 27,4 3 9 Active 27,4 3 10 Extricity 27. 5 Virtual Markets 28,5 1 What are virtual markets 28. 5 1 1 Horizontal versus vertical hubs 28,5 1 2 Systematic versus spot sourcing 29. 5 1 3 Biased or neutral 29,5 1 4 Classification 29. 5 2 Technology providers for virtual marketplaces 31. 5 2 1 Sterling Commerce 31,5 2 2 CommerceOne 32,5 2 3 Broad Vision 33.
5 2 4 One i2 Place 33,5 2 5 Metiom 34,5 2 6 Ariba 34. 5 2 7 TheMoment 35,5 2 8 TPN 35,5 3 Examples of virtual marketplaces 36. 5 3 1 VerticalNet 36,5 3 2 MRO com 37,5 3 3 SciQuest 38. 5 3 4 CapacityWeb 40,5 3 5 PaperExchange 40, 5 4 Connecting virtual marketplaces with established ERP XRP systems 41. 6 Conclusions 44,References 45,Articles and whitepapers 45.
Web sites 46,VIII G I G A P O R T,List of Figures, FIGURE 1 1 FIRST IMPRESSION OF THE RELATIONSHIP BETWEEN ERP XRP AND EAI 1. FIGURE 2 1 DURATION OF THE ERP IMPLEMENTATION TRAJECTORY CIN 5. FIGURE 2 2 MARKET SHARE OF ERP VENDORS IN 1997 1998 INFORMATIONWEEK 6. FIGURE 2 3 STOCK QUOTES FOR SAP 1996 2000 7,FIGURE 2 4 STOCK QUOTES FOR ORACLE 1996 2000 8. FIGURE 2 5 STOCK QUOTES FOR JD EDWARDS 1997 2000 9. FIGURE 2 6 STOCK QUOTES FOR PEOPLESOFT 1996 2000 10. FIGURE 2 7 STOCK QUOTES FOR BAAN 1996 2000 11,FIGURE 2 8 HOW TO EXTEND AND ERP SYSTEM CIN 13. FIGURE 3 1 TRANSFORMATION FROM ERP TO XRP 15, FIGURE 4 1 THE DIFFERENT EAI LEVELS LINTHICUM2000 20. FIGURE 4 2 EAI ARCHITECTURE 21, FIGURE 4 3 STC ELECTRONIC BUSINESS INTEGRATION SOLUTION 26.
FIGURE 5 1 CLASSIFICATION OF VIRTUAL MARKETPLACES B2B 30. FIGURE 5 2 EVOLUTION OF VIRTUAL MARKETS VROOM2000 31. FIGURE 5 3 COMMERCEONE MARKETSET INFRASTRUCTURE 32. FIGURE 5 4 COMMERCEONE MARKET WITH XCBL 33,FIGURE 5 5 ARIBA B2B COMMERCE PLATFORM 35. FIGURE 5 6 BUILDING STRATEGIC TRANSACTION PLATFORMS WITH VERTICALNET 37. FIGURE 5 7 SCIQUEST SEARCH BY KEYWORD 38, FIGURE 5 8 SCIQUEST S OFFERS THESE RADIATION MONITORS 39. FIGURE 5 9 SCIQUEST PRODUCT INFORMATION ABOUT A PORTABLE GEIGER COUNTER 39. FIGURE 5 10 CONNECTING ERP SYSTEMS WITH VIRTUAL MARKETPLACES 42. FIGURE 5 11 SCIQUEST ERP AND FINANCIAL SYSTEM INTEGRATION 43. FIGURE 5 12 SCIQUEST S PROCESS MODEL FOR A PURCHASE ORDER 43. G I G A T S D 2 2 IX,1 Introduction, Nowadays the back office of many enterprises relies on various types of Enterprise Resource. Planning ERP solutions Traditionally these ERP systems were focused on optimisation. planning controlling and monitoring of the enterprise internal processes and not equipped. with interaction possibilities with external parties Hence the transition of their existing. business model to an electronic commerce model is a major task E commerce enabled ERP. is also called XRP eXtended Resource Planning Enterprise Application Integration EAI is. the approach that links up the back office of the enterprise with other systems enabling. electronic commerce directly between partners ERP to ERP or via virtual marketplaces. ERP to market to ERP A virtual marketplace can be regarded as a hub where all spokes of. electronic commerce come together and where application integration is a major issue. The goal of this document is to discuss the current state of the art technology in the field of. extended enterprise resource planning application integration and virtual marketplaces We. describe how these different systems have evolved over time what their prospects are and. their mutual relationships, Figure 1 1 First impression of the relationship between ERP XRP and EAI. 1 2 Structure, The structure of this document is as follows Chapter 2 elaborates on ERP systems and sheds.
some light on what ERP is its main functionality the most important vendors and user groups. of ERP systems In the next chapter ERP is extended to XRP and the extended solutions of. the traditional ERP vendors are outlined Chapter 4 deals with the integration of back office. systems by means of EAI solutions and outlines the most important functionality and. solutions In chapter 5 the systems are placed in the context of virtual marketplaces And the. last chapter describes the most important conclusions concerning the use of ERP XRP and. EAI solutions in the context of virtual marketplaces. G I G A T S D 2 2 8 1,2 Enterprise Resource Planning ERP. This chapter sketches what Enterprise Resource Planning ERP is what its roots are and its. direction of development,2 1 What is ERP, The formal APICS definition of ERP is An accounting oriented information system for. identifying and planning the enterprise wide resources needed to take make ship and. account for customer orders An ERP system differs from the typical MRPII system in. technical requirements such as graphical user interface GUI relational database. management system RDBMS use of fourth generation language 4GL and computer. aided software engineering CASE tools in development client server architecture and. open system portability, Thus ERP is a software infrastructure that helps to manage the different parts of a global. organisation In brief it is the planning of the 4 Ms Man Money Materials and Manufacturing. and the aim is to improve the co operation and interaction between all the departments such. as the products planning purchasing manufacturing sales and customers service. department, In the era of globalisation it basically helps an organisation in addressing needs like reduced. cycle time customer focus sharing information seamlessly across the enterprise real time. data access and just in time JIT management But the costs can be high since the. deployment of an ERP system can involve considerable business process analysis employee. retraining and new work procedures ERPprof,2 2 ERP evolving.
Since the 1960 s the focus of manufacturing systems was on inventory control Most of the. software packages then were designed to handle inventory based on traditional inventory. concepts In the 1970 s the focus shifted to MRP Material Requirement Planning systems. The dictionary of the American Production and Inventory Control Society defines MRP as a. set of techniques that uses bill of material data inventory data and the master production. schedule to calculate requirements for materials In brief MRP translates the master. production schedule built for the end items into time phased net requirements for the sub. assemblies components and raw materials planning and procurement In the 1980 s the. concept of MRP II Manufacturing Resources Planning evolved which was an extension of. MRP to shop floor and distribution management activities In the early 1990 s MRP II was. further extended to cover areas like Engineering Finance Human Resources Projects. Management i e the complete gamut of activities within any business enterprise Hence the. term ERP Enterprise Resource Planning was coined In addition to system requirements. ERP addresses technology aspects like client server distributed architecture RDBMS and. object oriented programming,G I G A T S D 2 2 8 3, An excellent overview of the history of ERP has been provided by Jakovljevic2000. 2 3 Core functionality, In very simple terms ERP is sometimes described as the planning of the 4 Ms Money Man. Material and Manufacturing In this section we will describe those main ERP modules. Finance Money, The aim of the financial module is to automate and synchronise the entire money. management chain within the enterprise Financial data is entered only once and can be. analysed in numerous ways to support the decision making process Examples of applications. are budgeting expenses recording transactions forecasting revenue following the status of. customer accounts as well as scheduling of payments to distributors and suppliers. Human Resources Management Man, The human resource HR module provides one source for all business needs in HRM. context recruiting benefits training company metrics and news HR content is delivered to. each employee based on their specific roles interests and responsibilities. Materials Management Material, The material management module seeks reliable responsive and competitively priced.
sources for the material needs of the enterprise It brings operational ease and cost. effectiveness to the purchasing payment handling and administration of materials services. and assets and eliminates cumbersome and error prone paperwork. Production Planning Manufacturing, The production planning module performs capacity planning and creates a daily production. schedule for a company s manufacturing plants,2 4 Why not ERP. One of the most important advantages of an ERP system is that it focuses on the customer. and the end results This means overall optimisation of all enterprise internal processes. leading to higher quality products or services whilst reducing cost and time aspects In other. words the organisation s time efficiency is increased since the ERP system integrates all or. most parts of an organisation so that it has more control of its operation People use less. time to perform their tasks since the information they need for those tasks is readily available. via the ERP system which finally improves the time and resources available for decision. making An ERP system can provide a unified customer database usable by all applications. reduces the paper document stream by providing on line formats for quickly entering and. 2 5 5 Baan 10 2 6 ERP prospects 11 2 6 1 Shortcomings of classical ERP 11 2 6 2 Extending ERP 12 3 Extended Resource Planning XRP 14 3 1 What is XRP 14 3 1 1 Definition 14 3 1 2 New issues in extending ERP 15 3 2 XRP vendors 16 3 2 1 SAP 17 3 2 2 Oracle 17 3 2 3 J D Edwards amp Company 17 3 2 4 PeopleSoft 18 3 2 5 Baan 18 4 Enterprise Application Integration EAI 19 4 1 What is EAI 19 4 1

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