Page 200 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes 11.6.3 collaborative components

The e-business layer is the portal of ERP II. The collaborative components deal with communication
and integration between the ERP II system and external actors:
1. Business to consumer (B2C) or e-commerce denotes commercial sales transactions either
with businesses or with individual customers over the electronic medium, usually the
internet. This does indeed require an extensive infrastructure of which the main features
are a catalogue, online ordering facilities and status checking facilities. The ERP system
serves as the transaction processing back end for the Internet-based front end.
2. Business to business (B2B) or e-procurement improves efficiency by automating and
decentralizing the procurement process. The traditional procedures of sending Request for
Quotes (RFQ) documents and obtaining invoices etc. are carried out over the web through
purchasing mechanisms such as auctions or other electronic marketplace functions,
including catalogues.
3. Business to employee (B2E) or an intranet provides the employee with an updated,
personalized portal to the enterprise on his desktop. The perspectives of the intranet and
knowledge management in combination increase with the ERP II concept.
4. EAI or extranet provides the ERP II system with a platform for integration with other
systems inside or outside the corporation. EAI provides the support for automating
processes across various IT platforms, systems and organizations.

Task What is the use of EAI (Enterprise Application Integration) in ERP-II? Discuss
with the help of real life example.

11.6.4 the adoption of next-generation enterprise systems

The conceptual framework for ERP II is a theoretical model based on generalized observations
and on an analysis of the past and the present of enterprise systems. The analysis focused on
business requirements and the available technology, but the framework does not consider the
actual business transformations. Therefore we need to consider the adoption of the technology.
A recent survey on ERP adoption in large Danish enterprises concluded that:

1. ERP has become a pervasive technology
2. ERP has become a contemporary technology
3. The ERP market has matured; and
4. The dominant ERP strategy is still the single vendor strategy.
The study was based on telephone interviews with ERP managers in 88.4 per cent of the top
500 enterprises in Denmark. 13.6 per cent of the enterprise had more than one ERP system. It
provides a summary of the findings distributed on the top-five vendors, in-house developed ERP
and other vendors. We assume that the five largest ERP vendors in Denmark accounting for 66.6
per cent of the installations all have incorporated part of the ERP II components in their recent
releases.

Did u know? The early inventory control systems (ICS) and bill of material (BOM) processors
gradually turned into standardized material requirements planning (MRP).

194 LoveLy professionaL university