All 8 entries tagged Integration

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May 21, 2019

The Role of ERP in globalisation

Nowadays, more and more organisations provide products and services globally. They operate in different countries and in different locations; Also they have their manufacturing plants, regional sales offices, distribution centre, national, regional and global headquarters throughout the world. However, it brings the challenges for ERP, like legal and business principles of the country, multi-currency operations, language barrier (especially in developing countries).

The role of ERP is to use all available organisation resources efficiently. In general, it ensures flexibility of the company and creates the environment for achieving core competence of the organisations. Also, it can be identified as the critical component of corporate globalisation strategies and be required to satisfy the demands of support functionalities in a global environment- such as intercompany stock transfer, software localisation.

The survey from the Gartner Research study had identified that 70% of organisations desired to operate a single global ERP system. However, a centralised ERP solution is slow to implement in a global environment. And the company may have to change their existing IT solutions- from many to one, which requires a large amount of time. As a result, a better choice for the companies two-tier ERP solution, which means the company can use one core ERP with another solution from same vendor for subsidiaries or one core ERP with other solution from another one vendor.

Mengyun Hu (1862091)

April 20, 2016

Extended ERP

In the internet era, there is an intense competition of business occurring in the means of using information technology to increase the efficiency of the operational and management aspects in organizations. Therefore, changing the strategy toward e-businesses have to adapt the usage of ERP system which could share functions and communication to partners and customers. In addition, it has to develop data evaluating method and interface in order to connect processes for the bonding between ERP and external organization sites. E-business is a kind of business that have a rapid changing in technology and trend, so quick gathering of the useful information is become more serious factor to gain the advantages in the market. Allowing people to easily access to the entrepreneur ERP system helps increase the accuracy of the data while reducing the analysis time for the strategy planning. Thus, the ERP system is now extended to be developed together with the Thin Client or GUI (Graphic User Interface) to reduce the complexity in using the system. This allow the end-users or suppliers to input the data into the system and connect directly to the business. For the users with in organization, the extended ERP creates the convenience in access and interpret the data for analytical usages and reduce learning curve of the system. There are three main advantages of Extended ERP. First is the integration by using ERP-based can centralized between software such as SCM, CRM, and E-commerce, only one input of information can be pulled out for various usage. Moreover, the extended ERP also creates the supply chance network with organizations as center, connecting suppliers’ and customers’ operation with SCM and CRM respectively. Finally, Internet Protocol (IP) and Web application create the system that allow the online access to the data base of organizations, not only by the employees but also partners, suppliers and consumers. The sharing of information both internally and externally all type of business to occur virtually in the world of internet.

Chonlada Han-ong-art

Karl M. Kapp, William F. Latham, Hester N. Ford-Latham. Integrated learning for ERP success: a learning requirements planning approach. Boca Raton: The St. Lucie Press; 2001.

Mahesh gupta, Amarpreet kohli. Enterprise resource planning systems and its implications for operations function. Technovation 2006; 687-696.

March 28, 2016

ERP system and Internet of Things

In recent years, many ERP systems have competed each other by trying to provide the best solution for improving the business. After introducing cloud-based platform i.e. SAP HANA, Oracle ERP Cloud, Microsoft Dynamic cloud ERP and so on, they tried to seek for other new technologies to support the organisation. However, this article will only focus on SAP solution. While the user of internet has dramatically grown every year, and devices has become more and more intelligent. From SAP’s research, they found that the number of connected devices through the internet would be more than fifty billion by 2020. They expected that many physical objects would be able to communicate via the internet. The internet of things (IoT) can be defined as the integration of several technologies such as RFID, sensor, actuators, and wireless network (Atzori, Iera and Morabito, 2010).

 As last few year ago, SAP introduced an additional solution (IoT connector solution) which can use to connect sensor-based data with SAP HANA platform. This solution will combine data from automation devices and smart devices to perform a better retrospective and predictive analysis. Moreover, there are several benefits that the organisation can gain from these technologies solution.

  • Improve efficiency, sustainability, quality, and safety
  • Increase decision-making performance
  • Improve decentralised data consistency
  • Reduce operation cost
  • Simplify software integration

Although, this solution may not be suitable for every business, there are some businesses can use it to improve their processes such as manufacturing, supply chain integrity, energy, health service and so on. But, they still have some major technical issues that require to consider. For example, Internet scalability, identification and addressing of the network, heterogeneity technologies (Haller, Karnouskos and Schroth, 2008).

Atzori, L., Iera, A. and Morabito, G. (2010). The Internet of Things: A survey. Computer Networks, 54(15), pp.2787-2805.

Haller, S., Karnouskos, S. and Schroth, C. (2008). The Internet of Things in an Enterprise Context. Lecture Notes in Computer Science, pp.14-28.

SAP. (2016). IoT Platform | Internet of Things Applications | SAP HANA. [online] Available at:

Chompassorn Pholtanasak (1465063)

April 29, 2013

SAP Netweaver and Process Integration

SAP Netweaver and Process Integration

SAP Netweaver is an application and integration platform that unifies ‘people’, ‘information’ and ‘business processes’. It has been built as the new technical foundation for all future SAP applications. This platform is based on Enterprise Service Architecture (ESA), keeping in mind SAP’s strategy of offering future products in compliance with ESA. ESA is built on the benefits of web service, which is an interface implementing the industry standards of SOAP and WSDL to expose different functionalities to a web service consumer. The use of web service allows direct integration between applications and ERP system or more specifically SAP, without involving a middleware for integration.

SAP Netweaver is not a replacement for SAP R/3, but has been explained as a marketing strategy. One important part of Netweaver is integration of processes. This is done through SAP’s own middleware called SAP PI (Process integration, previously known as SAP XI). SAP PI is used for integrating both SAP and non-SAP applications. It is used for both internal and external integration. i.e. for both application to application and business to business. It runs on SAP WAS (Web application Server), which is the common platform for all SAP applications. The integration builder, which is the middleware, comprises of two main parts-

  • ESR (Enterprise Service Repository)
  • ID ( Integration directory)

These two are used for designing and configuration of objects within the middleware respectively. The integration builder is built on two stacks- ABAP and Java. The best part about SAP PI is that all definitions use open technologies like BPEL (Business Process Execution Language), WSDL,XML and XSD. Java based graphical tools are also deployed in this middleware.

Process Integration is an important part of the framework, and critical for successful implementation of SAP. For this reason, most SAP implementation projects involve the use of SAP Netweaver and SAP PI.

June 18, 2012

ERP and PLM integration

The percentage of ERP implementation failure is high which is the ERP solution cannot fits organization objective. The critical reason of failure is organization did not preparing properly before use ERP solution, the information system is weak and preparation of business information data is not accurate and enough. Integration of ERP and PLM is a generation of enterprise systems.

PLM (product lifecycle management)is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal.PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise. PLM can solve problem relate to products development, such as, how to organise products information data, how to generate and control products information data and who is responsible for different part of the products. On the other hand, ERP is more focus on organisation resources management strategy, eliminate resource waste and reduce costs. Therefore, today¡¯s vendors start thinking integrates PLM and ERP to increase the ERP implementation success rate and products quality.

The customers¡¯ needs in today are variable and constantly changing, organisation has to emphasis on production diversity to obtain market share. This business environment requires ERP system has to be able to processing the product information and inventory data to all departments effectively and accurately, in order to help organisation achieve the objectives of low production costs, high quality product and shorter new products launch time. Therefore, I think the PLM can be the base of ERP to achieve these objectives.

In addition, through PLM and ERP integration, organisation can effectively carry though significant innovation, for example R&D new and distinctive products, lower production costs and improve products quality. Integrated PLM and ERP system, provides value of innovation to organisation, at same time, gives organisation ability to control products manufacture. This integration brings organisation huge competitive advantage, because it pushed manufactural development, thus makes organisation capture and response to market opportunities quickly and confidently.


Charles Møller, (2005),"ERP II: a conceptual framework for next-generation enterprise systems?", Journal of Enterprise Information Management, Vol. 18 Iss: 4 pp. 483 - 497

April 27, 2012

Impacts of ERP on Supply Chain Integration

ERP, which originated from MRP in manufacturing industry, has enjoyed a great popularity in recent decades. Meanwhile, the scope of ERP has been expanding in different sectors and there are increasingly more ERP vendors start concentrate on the ERP solution for supply chain integration.

Supply chain integration, which reduces the overall costs, improves efficiency and effectiveness, shortens lead time, develops customer satisfaction, plays a vital role in most industries nowadays.

With regard to the way how ERP helps the entire supply chain to gain competences, I think the most important function is the real-time information exchange. It refers several aspects.

First is inventory management. Based on the real-time sales transactions and the production and schedule plan of suppliers in ERP, inventory level can be appropriately controlled. The real-time sales data also helps develop forecasting plan so as to enable companies be prepared. Furthermore, the relationship with suppliers is developed as well. There is a trend that it is better for buyers to cooperate with fewer but more reliable suppliers. The information sharing with suppliers?? delivery and production plan makes buyer company works closer with its suppliers.

Secondly, customer service satisfaction is improved. Since companies are able to access real-time data of customer requirements and all the resources of operational process through ERP system, the reaction time is shortened. Also, with the control of operational activities, better quality of products can be achieved. Furthermore, ERP system is able to support mass customization by translating a specific order from a customer into production so as to achieve assemble-to-order or make-to-order.

Thirdly, ERP system contributes to more smooth and streamlined operational process. With all the integrated data available, it is much easier to fulfill and replenish orders, organize production plan and purchase raw materials. Accordingly, the overall costs are reduced.

Even there are many benefits that ERP contributes to supply chain integration. Some obstacles still exist. For instance, the standardization of data among partners throughout the supply chain, the resistance of information sharing in order to keep confidential and overwhelming available data for decision-making.

To conclude, ERP does bring loads of benefits to supply chain integration. The obstacles need to be further tackled and supply chain members should also pay attention to these obstacles when integrating.


Kelle, P and Akbulut, A. (2004). The role of ERP tools in supply chain information sharing, cooperation, and cost optimization. International Journal of Production Economics. 93 (8). pp. 41¡§C52.

Akkermans, H, A., Bogerd, P., Y¡§?cesan, E and Wassenhove, L, N, V. (2002). The impact of ERP on supply chain management: Exploratory findings from a European Delphi study. European Journal of Operational Research. 146(2). pp. 284¡§C301.

Sua, Y. and Yanga, C. (2010). A structural equation model for analyzing the impact of ERP on SCM. Expert Systems with Applications. 37 (1). pp. 456¡§C469.

July 07, 2011

Understand the objective of ERP application

For a large percentage of ERP customers, an ERP implementation has been the most complicated andcostly software project they have undertaken. Companies have made big investments in ERP software, and leading CEO¡¯s now want to see IT contributing more to the bottom line ¨C producing higher value at lower cost. Notwithstanding, patches and new releases create ongoing support and business adaptation challenges that can chip away from the returns on ERP investments. Unmanaged changes to ERP applications have generated some of the most recounted project horror stories. Consequently, ERP Change Management is becoming the focus of attention in many IT organizations. Changes are inevitable. Most companies adapt their business processes for their ERP, but initially find it easier to reduce the impact of the organizational change by customizing and extending the ERP functionality to provide legacy system capabilities that are considered to be business critical. The magnitude of these collective changes is more than most companies can effectively manage. Staffing levels required for steady-state support operations quickly become overwhelmed because the roles they have traditionally played must take on significantly more responsibilities, and the roles in the ERP environment are very different from legacy system administration functions.

June 22, 2011

Why companies should integrate their ERP and what they should be aware of

I have been pondering on how best to go about answering this question for a couple of weeks now. I think I might have figured out the best way to do this (at least by 70%). I first started developing the question by building a mind map for it (IF YOU ARE NOT MIND MAPPING YET, YOU ARE MISSING OUT). As I said before, I feel my work is at least 70% done (very subjective) so it's no surprise that the mind map reflects this. Then I developed a thesis for the question which is (Currently) "The adoption and integration of ERP systems should follow a company's strategy to realize the desired benefits". To answer the question completely I feel that the following list of objectives should be considered:

1. the Importance of Integrating Business functions and the potential of Enterprise systems (ERP)

2. the Importance of Strategy in driving the choice of an ERP system

3. Identify the benefits obtained from an ERP system as per strategy adopted (e.g. Cost differentiation)

4. Identify the potential problems that might be faced when integrating business functions through an ERP system implementation (What to watch out for)

For a complete picture on how I intend to answer this question, see the mind map. Cheers.

ERPI PMA Mind map

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