The evolution of enterprise system architecture
Enterprise systems have existed since the 1960s and their evolution reflects the changes in information systems since that time. The first ES used a mainframe architecture with a central computer connected to a number of terminals. These systems were expensive, lacked scalability and were mostly sold by a single supplier, IBM, up until the 1980s. Consequently there use was mainly limited to large organisations. The second stage of ES development is the use of a client server architecture that distributes the workload of the application across multiple, smaller applications servers. This architecture significantly reduces the costs of purchasing and using an ES and improves the scalability of the system
The third stage of ERP development is the use of web-based systems to integrate several client-server applications and create an enterprise application. This increases the flexibility of the ERP at a relatively low cost and the web provides a standard platform for integration of applications across organisations. These systems can be referred to as webintegrated ERP systems. These systems make use of service oriented architecture (SOA) which enables the integration of many different client server systems together. By using web services an organisation can integrate several client-server applications and create an enterprise composite application
Implementing enterprise systems
A framework for implementation of an ES may be linked to the approach of business process management (BPM). This identifies business processes as adding value to products and services; work gets done by people through business processes while the role of technology is to support those processes. ERP systems may lack process models that explain business operations and so BPM provides methods to automate or improve activities and tasks forparticular business purposes
In common with other investment decisions that managers have to make in terms of people and equipment, it is important that decisions are based on achieving strategic objectives. It is unlikely that one ES software supplier will provide all the most up-to-date and relevant application software for a particular company. If alternative software is available that may provide a competitive advantage then a decision to forgo the advantages of integration may have to be taken. It should also be considered that the main reason for ES, in terms of achieving integration of systems, can usually be achieved at a price, in terms of the cost of writing integration software. The major choice facing an organisation is to renew IT systems in a number of ‘big bangs’ with the installation of detailed specified major systems or to develop systems that contain a mix of new and old (legacy) systems in a more incremental manner. Either of these choices may make sense and can incorporate the advantages of the other. Owing to the high cost and complexity of ES solutions, until recently only medium or large companies could afford the software and the consultants, which often cost millions of pounds. Smaller companies are, however, being increasingly targeted by ES vendors.
Types of enterprise systems
Enterprise resource planning (ERP) systems are enterprise systems which support processes within an organisation. These processes include procurement, product development, manufacturing and sales. An ERP system can be extended to service processes across organisations with the addition of enterprise systems such as supply chain management systems (SCM). These cover processes such as warehousing, transportation and supply network collaboration. Customer relationship management (CRM) systems cover marketing, sales and service. Supplier relationship management (SRM) systems cover sourcing, contract management, supplier collaboration and procurement. These different types of enterprise systems are now discussed in more detail.
Enterprise systems have existed since the 1960s and their evolution reflects the changes in information systems since that time. The first ES used a mainframe architecture with a central computer connected to a number of terminals. These systems were expensive, lacked scalability and were mostly sold by a single supplier, IBM, up until the 1980s. Consequently there use was mainly limited to large organisations. The second stage of ES development is the use of a client server architecture that distributes the workload of the application across multiple, smaller applications servers. This architecture significantly reduces the costs of purchasing and using an ES and improves the scalability of the system
The third stage of ERP development is the use of web-based systems to integrate several client-server applications and create an enterprise application. This increases the flexibility of the ERP at a relatively low cost and the web provides a standard platform for integration of applications across organisations. These systems can be referred to as webintegrated ERP systems. These systems make use of service oriented architecture (SOA) which enables the integration of many different client server systems together. By using web services an organisation can integrate several client-server applications and create an enterprise composite application
Implementing enterprise systems
A framework for implementation of an ES may be linked to the approach of business process management (BPM). This identifies business processes as adding value to products and services; work gets done by people through business processes while the role of technology is to support those processes. ERP systems may lack process models that explain business operations and so BPM provides methods to automate or improve activities and tasks forparticular business purposes
In common with other investment decisions that managers have to make in terms of people and equipment, it is important that decisions are based on achieving strategic objectives. It is unlikely that one ES software supplier will provide all the most up-to-date and relevant application software for a particular company. If alternative software is available that may provide a competitive advantage then a decision to forgo the advantages of integration may have to be taken. It should also be considered that the main reason for ES, in terms of achieving integration of systems, can usually be achieved at a price, in terms of the cost of writing integration software. The major choice facing an organisation is to renew IT systems in a number of ‘big bangs’ with the installation of detailed specified major systems or to develop systems that contain a mix of new and old (legacy) systems in a more incremental manner. Either of these choices may make sense and can incorporate the advantages of the other. Owing to the high cost and complexity of ES solutions, until recently only medium or large companies could afford the software and the consultants, which often cost millions of pounds. Smaller companies are, however, being increasingly targeted by ES vendors.
Types of enterprise systems
Enterprise resource planning (ERP) systems are enterprise systems which support processes within an organisation. These processes include procurement, product development, manufacturing and sales. An ERP system can be extended to service processes across organisations with the addition of enterprise systems such as supply chain management systems (SCM). These cover processes such as warehousing, transportation and supply network collaboration. Customer relationship management (CRM) systems cover marketing, sales and service. Supplier relationship management (SRM) systems cover sourcing, contract management, supplier collaboration and procurement. These different types of enterprise systems are now discussed in more detail.
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