1. INFRASTRUCTURE e-BUSINESS - ERP Joko Dewanto

2. ERP ERP adalah suatu system yang menolong perusahaan untuk mengurangi inventory, meminimkan rentang waktu dan meningkatkan seluruh pengoperasian. ERP bekerja sebagai pelumas informasi, memfasilitasi perubahan data yang bersifat corporasi divisi ke bentuk penggabungan sebagai kunci proses. Handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, accounting, etc. Back office systems: do not directly deal with customers Facilitate control: sales, delivery, billing, quality control, etc. Cross-functional and enterprise-wide: production, sales and marketing, information technology, etc.

3. ELEMENT INFRASTRUCTURE ERM

4. EVOLUTION ERP

5. Wave 1 : Manufacturing Integration (MRP) The historical origin of ERP is in the inventory management and control software packages that dictated system design during the 1960s. The 1970s saw the emergence of material requirements planning (MRP) and distribution resource planning (DRP), which focused on automating all aspects of production master scheduling and centralized inventory planning, respectively. During the 1980s, the misnamed MRP II system emerged to extend MRP’s traditional focus on production processes into other business function, including order processing, manufacturing, and distribution.

6. Wave 2 : Enterprise Integration (ERP) Replacing creaky legacy systems Gaining greater control Managing global operations Handling industry deregulation and regulatory change Improving integration of decisions across the enterprise.

7. Wave 3 : Customer-Centric Integration (CRP) Integrating bricks and clicks, because : – Traditional e-commerce configurations use cumbersome middleware to attempt to connect web applications to back-end systems – It's expensive and time consuming. It is not unusual for ERP projects to cost hundreds of millions of dollars and to take more than 5 years to complete. – A company's business rules and data are often scattered over multiple applications. In a multivendor world, data redundancies create inaccuracies and costly integration efforts. – Upgrades are costly. Because multiple Web, middleware, and back- office vendors are involved with the implementation, accountability issues invariably arise when business rules conflict or technical problems occur.

8. Evolution of Business Model

9. Wave 4: Interenterprise Integration (XRP) Your company has squeezed as many inefficiencies as possible out of operations but youre still getting trounced by competition. What's going on? The answer lies in supply chain integration. ERP apps are adapting to the e-business requirement that a company's partners benefit from the same seamless integration as the company itself. This fourth wave of ERP development, known as extended resource planning (XRP), extends the organizational foundation of an ERP backbone beyond the four walls of the enterprise to its customers, suppliers, and trading partners.

10. Wave 4: Interenterprise Integration (XRP) Examples of XRP are B2B marketplaces. A main goal of an XRP implementation is to provide better synchronization with trading partners in order to reduce inventories, foster strategic pricing, improve cycle times, and increase customer satisfaction throughout the supply chain. Current ERP systems offer little in terms of interenterprise planning. ERP has traditionally excelled at transaction management, the ability to manage the administrative activities associated with human resource, financial, inventory, and order processes.

11. Wave 4: Interenterprise Integration (XRP) For example, although it has order processing functionality, an ERP system provides little or no information about the order's profitability or the best way to deliver the order to the customer. ERP differs from supply chain planning (SCP). Whereas the ERP approach asks, Should 1 take your order? the SCP approach asks, Can 1 take your order? Today's ERP systems are rudimentary. Data from ERP systems provides a snapshot in time of a business process, but doesn't support the continuous-planning requirements central to a successful SCP system. SCP's continuous-planning capability refines and enhances the plan in real time, adjusting the plan to accommodate any last-minute changes before the plan is executed

12. The Next Wave of Integration : Extended Enterprise

13. The Shared-services business needs (to selecting ERP solution) The need to create an application framework to improve customer order processing. Most companies, having ignored their back-office systems for years, are looking for solutions that will save them from their neglect. The need to consolidate and to unify relevant business functions. The need to integrate a broad range of disparate technologies, along with the business processes they support, into common processes and a common technology platform. The need to create a new technological foundation to support next-generation e-commerce applications

14. Build, Buy or Rent ? Many firms are deciding to buy –rather than build or rent- commercial off-the-shelf (COTS) software from third party vendors, because : Only organizations with deep pockets can viably maintain the high total cost of ownership and complexity associated with developing and maintaining custom-designed applications. Companies realize that software development may not be a core competency. It's estimated that more than 70 percent of internal software projects fail. To minimize this risk, companies increasingly outsource software development activities. Next….

15. Many current applications are technically outdated, and the ongoing redesign of business processes makes existing software functionally obsolete and a potential business impediment. Off-the-shelf solutions integrate the best business practices from a variety of industries. The ability to incorporate these best business practices into your firm's operations translates into bottom-line improvements.

16. The Capabilities of COTS ERP Solutions COTS ERP solutions are extremely sophisticated and support effective e-commerce functionality with the following features: Consolidation of the back office. Consolidating back-office functions allows companies to better leverage their capabilities and to present a single face to suppliers. The goal is to centralize operations, which can be risky. Many companies have tried-and failed-to consolidate their software systems. Why is today's business environment different? Because executive management is now focused and paying attention to the benefits of technology consolidation. Next…..

17. Creation of a single back office that supports multiple distribution channels. Consolidated back-office functions become even more important when firms must communicate with multiple customer-interaction channels. Companies need a seamless back office capable of supporting all paths to the customer. Why? Because it would be difficult to support new channels when existing ones are not integrated. Facilitation of changes in business practices. Trying to change encrusted business practices is extremely difficult. By taking the best practices inherent in various ERP apps, companies can bring about business practice change simultaneously with technological change. Next…..

18. The Capabilities of COTS ERP Solutions Facilitation of changes in technology. The ERP architecture is designed to mask the complexities of the underlying platform technologies, thus enhancing flexibility and simplifying software modification. Using flexible software toolsets, customers modify the application suites to accommodate their business practices, without concern for the impact on the underlying hardware, software, and network technologies.

19. Variety of Implementation Strategies A step-by-step approach, in which one module at a time is installed, tested, and integrated with other systems. A "big bang" technique, sweeping away all old systems at once and replacing them all at once. A "modified big bang" approach, in which various modules are implemented at one time, piloting them in one area of the company and then extending the program throughout the firm. Most companies use this method.

20. Crucial Elements to Achieve Flexibility Components, not modules Incremental migration rather than massive engineering Dynamic rather than static configuration of ERP systems Management of multiple strategic outsourcing and partnership relationships

21. Handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, accounting, etc. Back office systems: do not directly deal with customers Facilitate control: sales, delivery, billing, quality control, etc. Cross-functional and enterprise-wide: production, sales and marketing, information technology, etc.