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eCommerce Technology
20-751
ERP Systems
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Concepts
• Business process automation
– Express business processes in machine-readable form so
they can be reviewed, improved, modified
– Implement the processes by computer
•
•
•
•
CRM, Customer Relationship Management
ERP, Enterprise Resource Planning
SCM, Supply Chain Management
Workflow
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Business Before ERP
Orders
Parts
Sends report
Sales Dept.
Customer
Demographic
Files
Customers
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
Accounting
Files
Accounting
Sends report
Invoices
accounting
Sends report
Ships parts
Vendor
Order is placed
with Vendor
Purchasing
Files
Purchasing
20-751 ECOMMERCE TECHNOLOGY
Warehouse
“We Need parts #XX”
“We ordered the parts”
SUMMER 2003
Inventory
Files
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Business With ERP
Orders
Parts
Sales Dept.
Customers
Inventory Data
If no parts,
order is placed
through DB
Accounting
Financial Data exchange;
Books invoice against PO
Order is submitted
to Purchasing.
Purchasing record
order in DB
Database
Books inventory
against PO
Order is placed
with Vendor
Warehouse
Vendor
Purchasing
Ships parts
And invoices accounting
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Enterprise Data Systems
Customer
Orders
Processing
Orders
DB
Sales &
Distribution
Customer
Service
ATP
Available to
Promise
Orders
Delivery
Transportation
Management
Warehousing
Management
Warehousing
DB
Master
Production
Schedule
Demand
Planning
Distribution
Management
Support
Logistics
Supplier
EIS /
DSS
Procurement
Materials
Planning
Production
Planing &
Scheduling
Supply
Planning
Parts
DB
Operations
Scheduling
Mfg
Execution
WIP
DB
Acc.
DB
Purchase
DB
Inventory
Mgmt
Personnel
DB
Administration
Finance
Control
Production
HR
Development
Product/Process
Development
Quality
Management
Product Data
Management
CAD / CAE /
CAx
Shop Floor
Control
SPC
DB
BOM
DB
Production
Engineering
Equipment
Control
Plant
Maintenance
Facility
DB
Process
Design
SOURCE: 林欽文
Enterprise Resource Planning
Plan
MOSTLY INTERNAL
TO THE ENTERPRISE
Produce
Inventory
ERP
System
Distribute
Account
ERP
Database
Customer Relationship Mgt
EMPHASIZES EXTERNAL
CUSTOMER RELATIONSHIP
Sell
Service
Market
CRM
System
CRM
Database
Supply Chain Management
EMPHASIZES EXTERNAL
RELATIONSHIP WITH SUPPLIERS
Demand
Capacity
Schedule
SCM
System
SCM
Database
ERP System Structure
Legacy
Systems
Data Warehouse
Enterprise
ERP System
On-Line Analytical Processing
Bolt-On Applications
(OLAP)
(Industry Specific Functions)
Suppliers
Customers
Core Functions [On-Line Transaction Processing (OLTP)]
Sales
&
Distribution
Business
Planning
Shop Floor
Control
Operational Database
Customers, Production,
Vendor, Inventory, etc.
Logistics
Supply Chain Management (SCM)
SCM is management of product life from buying,
making, moving, and warehousing to selling
Making
Moving
Buying
What is SCM?
Selling
Ware
housing
SOURCE: i2
Procter & Gamble Supply Chain
P&G or Other
Manufacturer
Giant Eagle or
Third Party
Distributor
Plastic
Producer
Chemical
Manufacturer
(e.g. Oil Company)
Customer wants
detergent, goes
to Giant Eagle
Giant Eagle
Supermarket
Chemical
Manufacturer
(e.g. Processed
Minerals)
Tenneco
Packaging
Paper
Manufacturer
Timber
Industry
Mining
Industry
SOURCE: SANJAY CHOPRA
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Supply Network Collaboration
Collaboration between neighbors in the
supply network is essential for efficiency
Production
Planning
Capacity
Planning
Demand
Management
Resource
Planning
Shipping
Optimization
Status Management
Shop Floor
Control
Warehousing
Ordering
Management Administration
Collaboration
on Forecasting
Analyzing
Supply
Chain
Inventory
Planning
Transcctional
Inventory
Tracking
Transcctional
Collaboration
on Resource
Planning
Matching
demand
-supply
Optimizing
product mix
Operational
Analyzing
Supply
Chain
Demand
Forecasting
Tactical
Operational
Collaboration
on Capacity
Planning
Tactical
Collaboration
on Forecasting
Shippment
Tracking
Order &
Shipments
SOURCE: ACCENTURE
Insurance Claim Workflow
GARAGE
receive
car
estimate
cost
inspect
car
repair
car
invoice
CALL
CENTER
receive
call
assign
notify
garage insurance
contact
garage
assign
adjustor
agree
repair
check ADJUSTOR
invoice COMPANY
Estimate < 500
INSURANCE
notify
adjustor
fill claim
form
amend
estimate
reconcile
info
finalize
claim
SOURCE: LIHUA LIN
Process Model
Relationships Among Concepts
SOURCE: LIHUA LIN
Generic Workflow System Structure
SOURCE: LIHUA LIN
Integrated eBusiness Environment
Suppliers
SCM
BI/
Analytics
ERP
Sales Force
Automation
Service
Automation
Contact Center
Marketing
Automation
eCommerce
Procurement
Sell Side
Workflow
Customers
CRM
Buy Side
Exchange
SOURCE: COMPAQ
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS
Q&A
20-751 ECOMMERCE TECHNOLOGY
SUMMER 2003
COPYRIGHT © 2003 MICHAEL I. SHAMOS