erp ii: a conceptual framework for next-generation enterprise systems?
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ERP II: A conceptual framework for
next-generation enterprise systems?
Charles M ller Aarhus School of Business, Aarhus, Denmark
Journal of Enterprise Information Managament, 2005
Definition ERP/ ERP II
Structure - Abstract - Introduction - Chapter 1-4 - Conclusions
References
CONTENT
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck
ERP: Enterprise-Resource-Planning Integrate external and internal Management information across an entire organisation
efficient application of the resources of a company (capital, assets, equipment, employees) goal: optimization of business processes
Definition ERP/ ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 1/22
between all business functions inside the boundaries of the organization and manage the connections to outside
1
Abstract
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 2/22
Purpose Next generation ES
Design/Methodo-logy/Approach
Analysis of the evolution of ES, ERP research and emerging business requirements
Findings Proposal of ERP II, present ES concepts comprehensive ERP II generally vaild for corporate- wide enterprise systems
Research limitations/ implications
Paper-conclusion: ERP research needs to broaden its perspective Practical Implications First step towards a tool to analyse and design complex
Originality/
Value First attempt to formalize and record ERP II and the next-generation ES
Keywords Operating Systems, Manufacturing resource planning, Supply Chain Management
Paper Type
Conceptual Paper
The author refers to 4 different journals/ books 4 statements:
(GartnerGroup, Bond et al., 2000) Transformation of ERP
Research needs time to respond to new business practices inertia of IS delayed the emergence of ERP research (until the late 1990s) (Klaus et al., 2000)
Introduction
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 3/22
ERP research interest strategic & managerial perspective on ES management (Shanks et al., 2003) Supply Chain Management as a collaboration and integration instrument importance of ES
trend: ERP II (Christopher, 1998)
1
2
3
4
2 parts: 1) Brief Introduction into the topic 2) Structure/ Topics the paper deals with
Analysis of the ERP II concept Evaluation of business requirements
First chapter evolution of enterprise systems
concepts & ERP research Second Chapter new requirements for ES Third Chapter framework of the ERP II concept Fourth Chapter discussion of the research and business
implications of next-generation ES
Introduction
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 4/22
Existing ERP theory
Current business practices
2 parts: 1) Brief Introduction into the topic 2) Structure/ Topics the paper deals with
Analytical approach to ERP II
Concept of ES: development of 50 years now ERP and ERP II framework conditions: changing business requirements, new
First Chapter Enterprise systems in retrospect
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 5/22
Table 1: Enterprise systems in retrospect
Introduction of computers
Background for IS develop- ment (more areas involved)
Often embodied in SAP R/3
ERP: standardized software package designed to integrate the internal value chain of an enterprise (integrated database)
planning & controlling of resources ERP hype in the late 1990s because of preparation for Y2K
Ups and downs
Key drivers for the implementation: - Y2K system concerns - globalization of businesses - increasing nat. & intern. Regulatory environment - Business Process Reengineering, QM -
First Chapter Enterprise systems in retrospect
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 6/22
INFO Y2K or millennium bug:
Problem for digital and non-digital documentation & data-
storage situations Reasons: because of storage
space scarcity in the 60s and 70s reduction of digits (instead of a
four-digit year, 2 digits) Consequences: wrong sorting and calculations (millennium-
change)
First Chapter Enterprise systems in retrospect
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 7/22
Differentiating factors of the complexity of ERP projects: - number & variety of stakeholders in implementation projects - high implementation & consultancy costs - integration of business functions - Management of change & BPR (Business Process Reengineering) ERP implementation has to be understood as a business transformation (multi-dimensional model encompassing people, business, technology and process issues)
Second Chapter New business requirements
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 8/22
SCM: one of the most important new business concepts New concept of the SCM because of globalization and outsourcing In 1990: implementation of major
structural changes in the SC of companies
- - Advanced Planning and Scheduling systems
APS or SCM systems: facilitate the central mana- gement of the supply chain activities & processes
Second Chapter New business requirements
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 9/22
Distinction between Downstream & Upstream SCM Just-in-time Managing information became complex emergence of the internet
new opportunities & threats to supply chain managers E-business, E-commerce
Second Chapter New business requirements
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 10/22
Benefits from implementing ERP in combination with SCM systems: - Integration of processes - Optimization of processes - Transformation of the company based on ES data
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 11/22
ERP hype in 2000 (Y2K), afterwards decline Question of meeting the e-business challenge
- ERP II (GartnerGroup in 2000):
- expansion of the traditional ERP (standard systems today incorporate ERP II)
E-business ERP
Collaboration in the SC
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 12/22
Business Intelligence (BI) analytical Decision support system
emerging pattern of generic application architecture
INFO Business
Intelligence Systematical
analysis of data Goal: extraction of information
to gain competitive advantage
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 13/22
Figure 1: The conceptual framework of the ERP II
Table 2: The four layers in ERP II
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 14/22
Figure 1: The conceptual framework of the ERP II
Central Components (Process Layer) - ERP: central component of ERP II (modules like financials, sales, distribution, logistics, manufacturing, HR, quality & project - Based on Business Project Management (BPM) Business Activity Monitoring - BPM flexibility of ERP II - Vertical solutions for customization
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 15/22
Figure 1: The conceptual framework of the ERP II
Corporate Components (Analytical Layer) - Components that enhance and extend central ERP functions decision support - SCM: support planning & production of goods - CRM: Management of functions regarding customer service/ relationships - PLM: Prod. Lifecycle Management (product data management, more efficiency, innovative & profitable products) -
x x
x
Third Chapter The conceptual framework of ERP II
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 16/22
Figure 1: The conceptual framework of the ERP II
Collaborative Components (Portal Layer) - Communication and integration between the ERP system and external actors - B2C: e-commerce commercial sales transactions via the internet need for an extensive infrastructure (catalogue, - B2E: intranet provides the employees with information within a company knowledge management -
x
x
Fourth Chapter The adoption of next generation enterprise systems
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 17/22
Conceptual framework of ERP II: theoretical model based on generalized observations & on an analysis of the past and present of enterprise systems
focused on business requirements & available technology but not on actual business requirements business transformations
SURVEY ON ERP ADOPTION - Based on telephone interviews with ERP managers - Conclusion: ERP had become a contemporary & important
technology, single vendor strategy as the dominant ERP strategy - 14 % of the enterprises had more than 1 ERP system - 67 % of the installations all have incorporated part of the ERP II
components in their recent releases
Fourth Chapter The adoption of next generation enterprise systems
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 18/22
Hypothesis: workflow of a company The ERP II conceptual framework needs to be extended (integration of the extended enterprise perspective )
Best-practice case Dell: successful example of SCM (arrangement of customers, suppliers and the company itself) purpose-build computers - G2 strategy (based on an open flexible architecture) - EAI middleware (Enterprise Appl. Intergr.) to integrate the SC in adaptive
networks BoB) strong competition with ERP
Fourth Chapter The adoption of next generation enterprise systems
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 19/22
ERP strategy is widespread and successful, but the network perspective of the ERP transformation is really important - The ERP II conceptual framework needs to be improved combination of corporate and network perspectives on supply chain integration ERP II as an important extension of ERP: - combination of the corporate & the network perspectives on supply chain integration - loosely coupled supply chain perspective - the view on application architecture
Conclusions
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 20/22
Creation of a conceptual framework for ERP II ERP II is a new vision and takes time to develop within our industry Improvement necessary ERP research needs to be extended into the supply chain The complexity of the internal process change has to be observed ERP II has a focus on e-
ERP II is dead long live ERP!
Conclusions
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 21/22
ERP II is dead long live ERP!
ERP is dead long live ERP II !
References
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck 22/22
45 references, arranged in alphabetical order
Thanks for your attention!
ERP II: A conceptual framework for next-‐generation enterprise systems? Jennifer Keck
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