EMERGING TRENDS ON

ERP
Unit 5
Extended ERP systems and ERP add-ons -CRM,
SCM, Business analytics - Future trends in ERP
systems-web enabled, Wireless technologies,
cloud computing.

Extended ERP systems (ERP

2)
ERP systems have extended from intraorganizational
system
to
interorganizational system.
It connects to the external stake holders
like vendors, customers, bankers etc.
Modules like CRM, SCM and SRM
facilitate organizations to integrate with
the external entities (Stakeholders) such
as customers and suppliers
pp 558-563

EXTENDED ERP COMPONENTS

Extended ERP components include:
Business intelligence
Customer relationship management
Supply chain management
E-business

ERP add-ons -CRM

Chapter 16

CRM History
Pioneered by Robert and Kate
Kestnbaum,
database
marketing
collected and analyzed customer
information.
Using
statistical
modeling, that data was then used to
help customize communications with
other potential customers.
In 1993, Tom Siebel left Oracle to
create Siebel Systems.

CRM History
By
1995,
SFA
and
contact
management had evolved to closely
resemble modern CRM software.
However, this emerging product still
didnt have a proper name. A number
of terms like enterprise customer
management (ECM) and customer
information system (CIS) were in use.
By the end of 1995, CRM won out.

CRM History
Enterprise resource management (ERP) vendors like
Oracle and Baan entered the CRM market, hoping to
use their size and ERP in-roads to dominate the
industry.
The 90s came to an end with the debut of the first
major Software as a Service (SaaS) vendor.
The 2000s: From Near death to Floating on Clouds
Paul Greenbergs book CRM at the Speed of Light
Software giant Microsoft entered the CRM market
with Dynamics CRM, and Oracle acquired Siebel and
numerous other enterprise application vendors.

CRM History
In 2007, Salesforce created the next big
change in the CRM industry. Force.com
introduced the world to cloud-based CRM.
Force.com addressed the criticism that
cloud-based
applications
werent
customizable.
Social CRM exploded onto the market with
the introduction of Comcast Caresan
application
that
focused
more
on
interaction than transaction.

Customer Relationship Management

Gartner's (2010) defines CRM as "a
business
strategy
whose
outcomes
optimize
profitability,
revenue,
and
customer
satisfaction
by
organizing
around customer segments, fostering
customer
satisfying
behaviors,
and
implementing customer-centric processes.
Handling interactions with past, existing
or guture customers

CRM Definition
CRM is the core business strategy
that integrates internal processes
and
functions,
and
external
networks, to create and deliver
value to targeted customers at a
profit. It is grounded on high quality
customer-related data and enabled
by information technology. (Buttle,
2009)

CRM Definition
CRM is an integrated approach to
identifying,
acquiring,
and
retaining
customers.
By enabling organizations to manage and
coordinate customer interactions across
multiple channels, departments, lines of
business, and geographies
CRM helps organizations maximize the
value of every customer interaction and
drive superior corporate performance.

Conceptual Overview

A shift in thinking

Transaction Learning relationship

Mass Marketing Individual marketing
Transaction Value Life time value
Conquest Marketing Retention
marketing
Product Life Cycle Customer Life Cycle
Customer Satisfaction Customer Loyalty
Share of the market Share of the
customer
Product differentiation Customer
differentiation

Components of a CRM
System
Operational automation of basic
business process (Marketing, sales
and services)
Analytical Analysis of customer
data and behaviour using business
intelligence
Collaborative communicating with
clients.

OPERATIONAL AND ANALYTICAL

CRM

The Customer Pyramid

Most
profitable
customers

Platinum

Gold

What segment spends more

with us over time, costs less
to maintain, spreads positive
word-of-mouth?

Iron

Lead

Least
profitable
customers

What segment costs us in

time, effort and money yet
does not provide the return
we want? What segment is
difficult to do business
with?

CRM Overview An application perspective of CRM

PeopleSoft CRM View

MARKETING

New product
campaign

Email wave
Telesales wave
Free software
offer

SUPPORT

SALES

Forecasts
Leads/Opportuni
ties
Sales Reps

Installed Product

Specialist
Competencies
Call Center
Agent
Resolution
Database

FIELD SERVICE

ANALYTICS

Agreement
Warranty

Service Order
Technician
Competencies

HELPDESK

Call Center
Agent
Resolution
Database

INTERACTION
MANAGEMENT

CRM Overview / Demos An application perspective of CRM

Example Business Process:

CRM Marketing and Sales Business Process Flow
Analyze Customer
Performance
and Generate
Target Audience
List

Create Campaign
Create Wave

CRM Marketing
Business Process
CRM Sales
Business Process

Measure
Campaign
Measure
Opportunity
Performance

Generate
Forecasts and
Rollup
Forecasts

Lead Generation

Manage
Leads

Create
Opportunity

Operational CRM tools that help

customer acquisition
lead management
The lead management process includes a number of subprocesses, including lead generation, lead qualification, lead
allocation and lead tracking

campaign management
Campaign managers design, execute and measure marketing
campaigns with the support of CRM technologies. Sometimes
these are multi-media campaigns across direct mail, email,
fax, outbound telephony, and SMS platforms

event-based marketing
EBM provides companies with opportunities to approach
prospects at times which have a higher probability of leading
to a sale, e.g. important life-stage events

SFA functionality
account management

pipeline management

activity management

product encyclopaedias

contact management

product configuration

contract management

product visualization

document management

proposal generation

event management

quotation management

incentive management

sales forecasting

lead management

territory management

opportunity management

work-flow engineering

order management

Functionality offered by MA
software
Asset management
Campaign management
Customer segmentation
Direct mail campaign
management
Document management
Email campaign management
Enterprise marketing
management
Event-based marketing
Internet marketing
Keyword marketing
Lead generation
Loyalty management

Market segmentation
Marketing analytics
Marketing optimisation
Marketing performance
management
Marketing resource management
Partner marketing
Product life-cycle management
Search engine optimisation
Tele-marketing
Trigger marketing
Web analytics
Workflow engineering

Source: Francis Buttle

Analytical CRM
Analytical CRM analyses data in an
attempt to identify means to
enhance a companys relationship
with its clients
Acquisition

Cross-selling
&
Upselling
Retention

Retaining
existing
customers
Information Providing timely and
regular information to customers

Strategies for customer

retention
Positive retention strategies
Customer delight
Loyalty schemes
Customer clubs
Sales promotions
Build customer engagement

Collaborative CRM
Collaborative CRM is communication with
customers and covers direct interaction with
customers including feedback and issue
reporting. Interaction can take place through
webpages, email, Automated Voice Response.
Collaborative CRM greatly improves on
services offered.
Collaborative
customer
relationship
management focus on exploiting interaction
with customers through customer touch points
for enhancing customer self service.

Applications of Collaborative
CRM
Online services for enhancement of
convenience and cost reduction
Effective communication through many
channels including automated phone,
email and internet.
profiling customer information during
customer interaction

Example: Web Page Personalization

http://www.palgravejournals.com/dbm/journa
l/v15/n1/full/3250065a.html

Functions of CRM

Identify factors important to clients

Promote a customer oriented philosophy
Adopt customer based measures
Develop end-to-end processes to serve
customers
Customer support
Handle customer complaints
Track all aspects of sales
Create a holistic view of customers sales and
service information
Chapter 16, p186 Alexis Leon

Features and Functions of a

CRM

Technology Enabled Selling

Marketing Resource Management
Segment and List Management
Call Center Management
Campaign Management
Internet Protocol Telephony
Field Service Management
Trade Promotion Management
Lead Management
Marketing Analytics
Pp189-91

Uses of CRM
Providing on-line access to product
information and technical assistance
around the clock
Identifying what customer value and
devising appropriate service strategies
for each customer
Providing mechanisms for managing
and scheduling follow-up sales call.
Tracking all contacts with a customer
Pp163-164

Uses of CRM
Identifying potential problems before
they occur
Providing a user-friendly mechanism
for registering customer complaints
Mechanism for correcting service
deficiencies
Storing customer interests in order to
target customers selectively

CRM ERP Integration

Inability
to
track
customer
interactionsbecause information is
stored in two systems
No
single
point
of
customer
informationemployees who want
access to complete information about
the customers interactions with the
company must turn to two entirely
different systems

CRM ERP Integration

Creation of an ERP customer Master
Record from a CRM account record
View customer financial summary
information in CRM
View Invoice History and Sales Order
History in CRM
CRM quote to ERP order

SAP Salesforce Integration

Optimize your opportunity-to-order-to-cashprocess

by synchronizing opportunities in yourSalesforceor other
CRM system with orders in SAP in real-time
Get a single view of customer, product and pricing
master data in both your CRM system as well as SAP
environments
Fulfill orders in a timely mannerand ensure that
customers, sales reps, and operations are all on the same
page
Quote correct list prices to customersby having the
most up-to-date prices from your SAP deployment flow into
yourSalesforceor other CRM system in real-time
Enable customer service repsto view accurate billing,
product, and warranty information about customers
Maintain data integritywhen building dashboards and
KPIs for executives

Supply Chain Management

(SCM)
Chapter 15

SCM Definitions
Chain of activities describing the flow of
material/goods from suppliers to the end users.
Planning and control of the flow of goods and
services through the supply chain from the
acquisition of raw materials to the final product
in the hands of the customers. (Sumner, 2012)
SCM spans all movement and storage of raw
materials,
work-in-process
inventory
and
finished goods from point or origin to point of
consumption.

Supply chain management

(SCM)
Supply
chain
management
(SCM)
helps
organizations deliver goods and services to the
right place at the right time in appropriate
quantity and at an acceptable cost.
Managing the supply chain involves handling
suppliers and customers, controlling inventory,
getting feedback and forecasting demand at
every link.
Implementing an ERP application will ease the
process and help make accurate decisions.

SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM) The
management of information flows between
and among activities in a supply chain to
maximize total supply chain effectiveness
and profitability

SUPPLY CHAIN MANAGEMENT

The supply chain has three main links
1. Materials flow from suppliers and their
upstream suppliers at all levels
2. Transformation of materials into semifinished and finished products through
the organizations own production
process
3. Distribution of products to customers
and their downstream customers at
all levels

Components and Elements

Source: Desai & Srivastava

The SAP ERP Approach to

Production Planning

SCM Components
Warehouse Management:
Required raw materials, parts, sub assemblies
and other goods are to be kept adequately in
order to handle uncertainties and emergency
situations.
The ERP application can help Inventory
manager stay up-to-date about available
inventory and further requirements.
It also helps accurately project raw material
requirements in near future, considering the
data from other processes.

SCM Components
Production
Assembling
the
raw
materials,
packaging
and
distributing
the
products are to be managed in order to
know the total output of the plant(s).
As the decisions and methods used in
the production process have direct
impact on the operational expenses,
revenues and customer service.

SCM Components
Transportation:
Raw materials and parts are to be transported to
the place where they are assembled. Choosing the
appropriate way to transport goods involves
shipping as well as clearances.
With the help of an ERP application, the inventory
manager and the supply chain manager can decide
the best and most cost effective way to transport
the goods from inventory to production area by
air, sea, rail or road, depending on the distance and
the type of goods that need to be transported.

ERP & SCM Basics

ERP:
Holds master data for materials, plants, customers, vendors,
purchasing information records
Holds transactional data (e.g., sales orders, planned orders)
Is where plans get executed

SCM:
Is where advanced planning happens
Imports master and transactional data from ERP
Sends plans back to ERP for execution

ERP

Core Interface (CIF)

SCM

Supply Chain Management (SCM)

Systems
The two basic types of SCM system software are:
Supply Chain Planning software (SCP): uses
mathematical models to predict inventory levels
based on the efficient flow of resources into the
supply chain
Supply Chain Execution software (SCE): is
used to automate different steps in the supply
chain such as automatically sending purchase
orders to vendors when inventories reach
specified levels

ERP/SCM Helps JK Tyres Make

Business Agile
A lack of co-ordination between heterogeneous
systems across head offices, its 4 plants and
sales offices was causing information delays
and discrepancies in sales and operation
planning,
demand
visibility,
forecast,
collaboration and inventory management.
the company deployed 16 conventional and
new dimension ERP modules.
These modules translated into a statistical
demand forecasting system that gave rise to an
accurate production plan.

Vendor-managed
inventory (VMI)
Vendor-managed inventory (VMI)
is a family of business models in
which the buyer of a product
(business)
provides
certain
information to a vendor (supply
chain) supplier of that product and
the supplier takes full responsibility
for maintaining an agreed inventory
of the material, usually at the buyer's
consumption location (usually a

Vendor-managed inventory
systems
to replenish stocks
Wal-Mart transmitted sales data, orders of
products, delivery plan and reports of
warehouse inventory status to them daily
to plan inventory levels, generate
purchase orders, and ship exactly what
was needed
both benefited from reduced inventory
costs and increased sales

Business planning packets

Each Wal-Mart department developed
computerized, annual strategic business
planning packets for its suppliers
including:
departments sales, profitability, and inventory
targets, macroeconomic and market trends,
and Wal-Marts overall business focus

Wal-Marts expectations on them

Suppliers recommendations

Information sharing
Open its databases
Retail Link private extranet system:
- to see exactly how its products are
selling and when it might need to up its
production
- to give more than 2000 suppliers
computer access to point-of-sale data
Advantages:
- Gain more information about the
customers.
- Shelves will always be stocked with the
right items at the right time.

Electronic data interchange (EDI)

Enabled an estimated 3600 suppliers
(about 90% of Wal-Marts dollar
volume) to receive orders and
interact with Wal-Mart electronically.
Later expanded to include
forecasting, planning, replenishing,
and shipping applications.

Sharing Data in SCM:

Benefits
Supply chain visibility The ability to
view all areas up and down the supply
chain in real time
Lower inventories
Shorter receivables cycles
Optimal use of production resources
Faster response to market changes
Greater satisfaction and loyalty among
customers
Greater profitability
pp 180 Alexis Leon

THE BENEFITS OF SCM:

IMPROVED VISIBILITY
Supply chain planning system Uses
advanced mathematical algorithms to improve
the flow and efficiency of the supply chain
while reducing inventory
Supply
chain
execution
system

Automates the different activities of the supply

chain
Bullwhip effect Occurs when distorted
product demand information ripples from one
partner to the next throughout the supply chain

Bullwhip Effect

THE BENEFITS OF SCM:

IMPROVED PROFITABILITY
Companies can respond faster
and more effectively to consumer
demands through supply chain
enhances
Demand planning system
Generates
demand
forecasts
using
statistical
tools
and
forecasting
techniques,
so
companies can respond faster
and more effectively to consumer
demands through supply chain
enhancements

THE BENEFITS OF SCM:

IMPROVED VISIBILITY
Supply Chain Planning and
Execution

THE CHALLENGES OF SCM

Primary challenges include
Cost An SCM system can cost millions of
dollars for the software and millions more for
help implementing the system
Complexity - The move towards globalization
is increasing complexity in the supply chain

Business Analytics
Chapter 9

BI vs BA
Business Intelligence - traditionally focuses on
using a consistent set of metrics to measure past
performance and guide business planning.
Business Intelligence consists of querying,
reporting, OLAP (online analytical processing) and
can answer questions including what happened,
how many, and how often.
Business Analytics goes beyond Business
Intelligence by using sophisticated modeling
techniques to predict future events or discover
patterns which cannot be detected otherwise.
Advanced Analytics can answer questions
including why is this happening, what if these
trends continue, what will happen next
(prediction), what is the best that can happen

Types of Business
Intelligence
Ad hoc Querying and Reporting using
a query method users can obtain answers
to questions and develop their own reports
and graphs.
Predefined reports standard reports
and graphs that come defined in the BI tool
Scorecarding metrics that communicate
when business performance is satisfactory
or needs attention
Alerts event notifications

urce: https://rapidminer.com/summarizing-differences-business-intelligence-advanced-anal

ERP and Business

Intelligence
ERP
solutions
provide
prebuilt
standard reports that meet the most
basic transactional reporting needs
of an organization.
Business intelligence software is
available
in
both
stand-alone
packages and as modules within Tier
I, II, and III ERP solutions.

Business Analytics
Business Analytics is the practice of
iterative, methodical exploration of
an organizations data with emphasis
on statistical analysis.
BA focuses on developing new
insights
and
understanding
of
business performance based on data
and statistical methods.

What is Business Analytics?

data,
information technology,
statistical analysis,
quantitative methods, and
mathematical or computer-based
models
to help managers gain improved insight
about their business operations and make
better, fact-based decisions.

The Business Analytics (BA) Field:

An Overview
Business Analytics
The use of analytical methods, either
manually or automatically, to derive
relationships from data
Remember that we defined business
analytics (BA) to include the access,
reporting, and analysis of data
supported by software to drive
business performance and decision
making

The Business Analytics (BA)

Field: An Overview

Data Stores
Data
Warehouse

a
large
relational database that combines
pertinent data in an aggregate,
summarized
form
suitable
for
enterprise
wide
data
analysis,
reporting and management decision
making.
Data Mart a subset of a data
warehouse that is usualy designed
for a specific set of users.
Chapter 12

Data Warehouse Architecture

Data Sources

Analysis
Flat files
Insert
Delete
Change
Replace

Data
Warehouse

Operational
System

Legacy sources

DB

Reporting

Data
Mining

Data Mining
Data mining is the process of extracting patterns from data.
Generally is fed from a clean and relational Data source like a Data
warehouse.
Uses various statistical analysis, techniques and algorithms.
Data analyzed in various ways like Trend Analysis, Forecasting,
Predictive analytics.

Trends

Hidden
Relationships

Data
Warehouse

Dependencies

Commonly used in a wide range of profiling practices, such as

marketing, surveillance, fraud
detection, scientific discovery, CRM, Churn Analysis etc.

Data Mining Models and Tasks

Business Analytics Applications

Management of customer
relationships
Financial and marketing activities
Supply chain management
Human resource planning
Pricing decisions

What returns can I expect?

ANALYSIS
Marketing & Sales

Financial

Human Resources

Web

INSIGHTS

BUSINESS BENEFITS

Moment of Sales, Geographic distribution.

Buying Patterns, Customer Segmentation ,
Most Preferred Products.

Take correct decisions regarding your

promotion strategy, target market, Market
placement , Inventory management etc.

Actual to Estimated budget Analysis

Cash flow trends over the years
Profit centers and Cost Centre analysis.

Calculate your exact ROI . Keep close watch on

your companies financial position and take
corrective action.

Evaluate trends in benefit program use .

Performance Analysis.
Determine Skill set levels and Training needs.

Assure Employee Delight and keep them

motivated.
Better trained employees mean better
productivity.

Analyze traffic on your web site

Understand browsing Patterns
Market baskets analysis through shopping
carts
Customer Relationship Management

Keep you website on top of all the search

engine.
Increase your reach world wide in a systematic
way.
Retain you customers on such high churn
business model.
Expand or contract your product line for better
selling opportunities.

BA and the Web: Web

Intelligence and Web Analytics
Clickstream analysis
The analysis of data that occur in the
Web environment.
Clickstream data
Data that provide a trail of the users
activities and show the users
browsing patterns (e.g., which sites
are visited, which pages, how long)

Examples of Business Analytics

Retail Markdown Optimization
Most department stores clear seasonal inventory
by reducing prices.
The question is:
When to reduce the price and by how much?
Descriptive analytics: examine historical data for
similar products (prices, units sold, advertising,
)
Predictive analytics: predict sales based on price
Prescriptive analytics: find the best sets of pricing
and advertising to maximize sales revenue

Future Trends in ERP

System
Future trends in ERP systemsweb enabled, Wireless
technologies, cloud
computing.

Future Trends

New Markets
New Channels
Faster Implementation Methodologies
Easier Customization Tools
Reduction in Implementation Time
Growth of Third-Party Service
Providers
Acquisitions and Mergers
Chapter 58

Future Trends

Growth of SaaS and Cloud ERP Market

Industry Specific Solutions
Mobile ERP Solutions
Growth of BA and BI solutions
Need-Based Applications
Reduce Expenditures
Open Source ERP
Enterprise Application Integration
Social Collaboration

Easier/Minimize Customization
ERP systems are far more flexible
and configurable than they've been
in the past.
Industry-specific ERP softwarefor
areas like banking, the public sector,
and retail, also help minimize the
need for customization
Most vendors offer customization tool
kits along with their products.

Reduction in Implementation Time

Oracle Business Accelerators (OBA)
cloud based rapid implementation
tools developed and maintained by
oracle to get the applications up and
running on a wide range of Oracle
Application, both quickly and reliably.
The average ERP implementation for
a mid-sized company is 14 months.

ERP Deployment Model

On-premise ERP Own the software and
hardware

Hosted Environment

Organizations
procure all the requisite licenses and rent the
premise and infrastructure services.

ERP on private cloud

ERP on public cloud

Open Source ERP

Open source is the freely available
source code for the software that can
be downloaded used, modified and
redistributed by anyone.
No license fees
An alternative ERP for SMB
Examples: Compiere, ERPNext,
Openbravo, OpenERP

ERP and New Technologies

RFID More ERP vendors are adopting
RFID
for
inventory
management,
warehouse operations, tracking material
movements.
The Internet of Things - devices are
available that can be attached to tools and
even vehicles, feeding data back to
applications hosted in the cloud.
Internet - ERP now can be accessed from
anywhere, anytime.

Mobile ERP Solutions

All leading ERP vendors develop
mobile applications for reporting and
dash-boarding to systems so that the
mobile employees can access the
ERP system and data.

Enterprise Application Integration

(EAI)
EAI is an integration framework
composed
of
a
collection
of
technologies and services that form a
middleware to enable integration of
systems and applications across the
enterprise.
Most vendors are offering add-ons
(like SCM, CRM,BI, BA etc) as a part
of their ERP offerings.

EAI

EAI was an approach to integration of applications first

developed in the late 1990s.
Pre-dated widespread use of JEE, XML and Web Services.

EAI currently has become subsumed into Service Oriented

Architecture software stacks
However, the need for the underlying capabilities have not
changed.

93

Middleware
Allows communication
through a standard language
across different platforms
between legacy and moderm
applications

Takes care of
transactions between servers
data conversion
authentication
communications between computers
94/31

Diverse systems and channels

Clearing
House

Core
Systems

Information
Provider

InterBank
Networks

Other
Bank

Payment Systems

Central
Bank

Accounts
Deposits
Loans
Mortgages
Payments
Customer
....

Delivery
Systems

Information
Warehouse

Customers
Mobile
Salesforce

Customer
Relationship
Management

Bank
Network

Multi-Channel

External
Systems

Branch

Commercial
Self
Service
Call
Centre

Card
Processor

Internet

Direct Banking
Internet
95
Example
of a banking

Consumer

Corporate

Solution: Enterprise Application

Integration (EAI)
Devised ways to efficiently reuse legacy and
existing apps and add new ones
EAI products are built on combination of
technologies
JEE
XML (eXtensible Markup Language) for enterprise-wide
content and data distribution using common DBs and
Data Standards
Message queuing
Business Process Orchestration engine
Sometimes Web Services
96

Layers of an EAI Stack

EAI
Business Activity
Monitoring
Business Process
Orchestration
Data Transformation
Message Storage &
Routing

Provides real-time and historical data on

performance
of processes and assists in making decisions.
Manages and tracks business transactions that
might
span multiple systems and last minutes to days.
Ensures the data is the correct format for delivery to
The next system.
Ensures the reliability of data delivery across the
Enterprise or between systems.

Adapter

Adapter
Provides open connectivity into data sources while
allowing filtering and transformations of data.

97

Cloud Computing
Cloud computing refers to applications and
services offered over the Internet.
Cloud computing is a model for enabling
ubiquitous, convenient, on-demand network
access to a shared pool of configurable
computing
resources
(e.g.,
networks,
servers, storage, applications, and services)
that can be rapidly provisioned and
released with minimal management effort
or service provider interaction.
Chapter 26 p 309

Types of ERP Software

Characteristics of Cloud ERP

An ERP system deployed over the cloud is more
affordable than a traditional, on-premise package.
SaaS ERPproposes a scalable infrastructure that
can accommodate huge amounts of data.
SaaS apps can be accessed at any time, from
anywhere.
Accelerated Implementation
ERP service providers making available SaaS
infrastructure offer a wide variety of customization
capabilities to meet diverse industry-specific
needs.

ERP Deployment Models

On-premise ERP
Hosted Environment
ERP on private cloud
ERP on public cloud

ERP and E-business

SAP and the Internet

In 1996, SAP introduced its joint
Internet strategy with Microsoft. The
core of SAPs first effort to integrate
the Internet with its products was the
Internet Transaction Server (ITS) a
server-based software system that
enabled
efficient
communication
between an SAP ERP system and the
Internet.

SAP and the Internet

In May 1999, SAP announced mySAP.com, a
new strategy designed to completely realign
the company and its product portfolio. The
goal of this initiative was to combine ecommerce solutions with SAPs existing ERP
applications, using Web technology.
In 2000, SAP began building on the
mySAP.com vision by adding the capability
for electronic marketplaces and corporate
portals.

SAP and the Internet

In 2004, SAP introduced its first version of SAP
NetWeaver, a collection of components that
support business transactions over the
Internet by providing seamless connectivity of
diverse applications.
Planning its future initiatives around the
concept
of
enterprise
service-oriented
architecture (enterprise SOA), with a goal of
making all of its business applications service
basedto provide its customers with the most
flexibility possible.

SAP and the Internet

E-commerce needs are driving companies
to connect their business applications,
such as ERP systems, both internally and
externally through the Internet.
Software designed with an SOA can be
quickly deployed and reconfigured as
business conditions require changes to the
applications,
databases,
and
other
infrastructure hosted in data centers
owned by a company.

Web Service / Service-oriented

Architecture (SOA)
Virtually all major vendors provide
tools and entire platforms for
building and integrating software
applications using Web services.

Web Service
Web services refer to a set of loosely coupled
software components that exchange information
with
each
other
using
universal
Web
communication standards and languages.
The foundation technology for Web services is
XML, which stands for Extensible Markup
Language.
Web browsers and computer programs, such as
order processing or enterprise resource planning
(ERP) software, can follow programmed rules for
applying and displaying the data.

Service-oriented Architecture (SOA)

A service oriented architecture (SOA) is set of
self-contained services that communicate with
each other to create a working software
application.
A loosely-coupled architecture designed to
meet the business needs of the organization.
SOA is an approach to designing, implementing
and deploying information systems such that
the system is created from components
implementing discrete business functions.

Example SOA
A
purchase
order
process
for
an
organisation can be broken to a set of
services like creating purchase requisition,
pricing, tax calculation, workflow for
approval and creation of purchase order.
A set of these services can be reused across
many business processes like pricing is
important for sales order process, service
ordering, contract management etc.
Xmethod (Web Service share price)

Example
Dollar Rent A Cars systems use Web services for its
online booking system with Southwest Airlines Web site.
Although both companies systems are based on different
technology platforms, a person booking a flight on
Southwest.com can reserve a car from Dollar without
leaving the airlines Web site.
Instead of struggling to get Dollars reservation system to
share data with Southwests information systems, Dollar
used Microsoft .NET Web services technology as an
intermediary.
Reservations from Southwest are translated into Web
services protocols, which are then translated into formats
that can be understood by Dollars computers.

Social ERP
Social ERP tools can facilitate
collaboration and communication
among employees and partners
using ERP system.
Analysts are predicting that social
media and social apps will become a
more significant component of the
ERP landscape

ERP Revenues
Projected to bring in sales in the $50.3
billion dollar by 2015 (Forrester, 2013)
In 2011, the SAP revenue from selling
software licenses were 28% of the total
revenue while the remaining 72% came
from software support, subscription and
other software related services, consulting
and other services.
Oracle 43% from product support, 27%
from software licenses

All the Best