From ERP to Enterprise Service-Oriented Architecture

From ERP to Enterprise Service-Oriented Architecture

Valentin Nicolescu (Technische Universität München, Germany), Holger Wittges (Technische Universität München, Germany) and Helmut Krcmar (Technische Universität München, Germany)
Copyright: © 2009 |Pages: 13
DOI: 10.4018/978-1-59904-859-8.ch023
OnDemand PDF Download:
$37.50

Abstract

This chapter provides an overview of past and present development in technical platforms of ERP systems and its use in enterprises. Taking into consideration the two layers of application and technology, we present the classical scenario of an ERP system as a monolithic application block. As the demands of modern enterprise software cannot be met by this concept, the shift to a more flexible architecture like the service-oriented architecture (SOA) is the current status quo of modern companies. Keeping in mind the administrative complexity of such structures, we will discuss the new idea of business Webs. The purpose of our chapter is, on the one hand, to show the historical development of ERP system landscapes and, on the other hand, to show the comparison of the presented concepts with respect to application and technology view.
Chapter Preview
Top

Introduction

With the emergence of the SOA concept, the classical architecture of ERP system has started to change and is in a constant flux towards new structures. We want to show these changes, starting with the architecture of ERP systems and describing the different parts of this concept. To exemplify it, we will present the most important aspects of concrete implementations of these principles. As one of the most important ERP systems, we will focus on the structure of the SAP ERP system and will describe the changes of this platform.

Our analysis will comprise of an application-centered and a technical view, considering changes in business paradigms and new technologies that enabled new kinds of business and process management. Starting at classical ERP systems and their implementation in SAP R/3, we will move on to the current concept of SOA and Enterprise SOA. This goes along with a change in technical architectures as well. The SAP NetWeaver platform will be presented as an example of complete Enterprise SOA platforms. Its most important functions will be pointed out and utilizing this example, components that are necessary to realize Enterprise SOA are identified. The light in which SAP NetWeaver is seen has changed in the last years as not the technical components are in the spotlight anymore but the applications that are made possible by such a platform. Finally, we will show the future concept of business webs which will base on Enterprise SOA and conclude our chapter with an outlook to the further development in this area of topic. The structure of our chapter is illustrated in Figure 1.

Figure 1.

Structure of this chapter

Top

Classical Erp Systems

Classical ERP system can be described as commercial software products that are adaptable to company-specific demands. Their typical functional modules include: purchasing, manufacturing, sales, finances, human resources, service and in general reporting. Classical ERP systems focus on data integration and also support process integration within one company.

The technical basis of an ERP system today is usually a Client/Server architecture, where often more than one application server is connected to the central database server. The user of a classical ERP system most time works with basic business transactions like “create order”, “update customer contact data”, “print invoice”, “execute report xy” etc. Changes within such a system due to business transactions are usually propagated in “business” realtime meaning a few seconds or minutes.

The following figure from Davenport visualizes the architecture of a classical ERP system. In addition to the facts mentioned before, there is usually a wide range of reporting functionality for management and stakeholders, based on the central ERP data.

There are a lot of advantages that unfold with the use of ERP Systems (Vogel and Kimbell 2005; N.N. 2007) In the following a few of them are spotlighted:

  • Standardisation

  • Integrated “best practice” business knowledge

  • Data quality

  • Data- and process integration

  • Central authorisation, authentication

However, there are also a lot of potential risks related with the use of ERP-Systems.

  • Possible single point of failure

  • Problems integrating different ERP-Systems

  • Tracking of complex processes – even if they are handled by only one ERP-System

  • operated by personnel with inadequate education in ERP in general

Additional, considerable risks that need to be especially emphasized arise from deficiencies in the ERP introduction project. Example thereof could be:

Key Terms in this Chapter

SOA: SOA is an architectural style whose goal is to achieve loose coupling among interacting software agents. A service is a unit of work done by a service provider to achieve desired end results for a service consumer. Both, provider and consumer are roles played by software agents on behalf of their owners.

Business Web: Corporations are transforming into flatter and more specialized enterprises, linking with suppliers and other businesses to form a larger, more open, value-creation entity – the business web.

SAP R/3: SAP R/3 has been released 1992 as the first ERP system for very large businesses based on a client-server architecture. It was divided in different functional modules and was the central point of enterprise system landscapes.

SAP NetWeaver: Moving from SAP R/3 to SAP ERP, the technical foundation of SAP R/3 SAP Basis was separated from the business functions and enhanced by many other technical features. This new technical basis that enables SOA is called NetWeaver.

IT Practice: The application based view on SAP NetWeaver identifies different main use cases within an enterprise system landscape which are called IT Practices. In different abstraction levels, they describe the activities necessary to achieve the implementation of a specific technical task in a company.

Complete Chapter List

Search this Book:
Reset
Editorial Advisory Board
Table of Contents
Preface
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Acknowledgment
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Chapter 1
Nancy Alexopoulou, Panagiotis Kanellis, Mara Nikolaidou, Drakoulis Martakos
Efficient response to change, both upon expected and unpredicted contingencies, is a critical characteristic for modern enterprises. This chapter... Sample PDF
A Holistic Approach for Enterprise Agility
$37.50
Chapter 2
Hossana H. Aberra
SAP Business Blueprint is a vital part of SAP implementation exercise. A well-defined business blueprint may set the foundation for successful... Sample PDF
What is SAP Business Blueprint?
$37.50
Chapter 3
Rogerio Atem de Carvalho
This chapter introduces the key aspects of Free/Open Source Enterprise Resources Planning systems (FOS-ERP). Starting by related work carried out by... Sample PDF
Free and Open Source Enterprise Resources Planning
$37.50
Chapter 4
Brian H. Cameron
Business process modeling (BPM) is a topic that is generating much interest in the information technology (IT) industry today. Business analysts... Sample PDF
The Changing Nature of Business Process Modeling: Implications for Enterprise Systems Integration
$37.50
Chapter 5
Alok Mishra
In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the... Sample PDF
Enterprise Resource Planning Systems: Effects and Strategic Perspectives in Organizations
$37.50
Chapter 6
Gary P. Moynihan
An executive information system (EIS) is a software system designed to support the informational needs of senior management. The EIS is... Sample PDF
An Overview of Executive Information Systems
$37.50
Chapter 7
Joseph Bradley
Enterprise Resource Planning systems have proven difficult and costly to implement. Organizations must consider the risks and rewards of embarking... Sample PDF
Enterprise Resource Planning System Risks and Rewards
$37.50
Chapter 8
Andrea Masini
After observing that the pervasiveness of IT may soon render it strategically irrelevant, management scholars have recently questioned the value of... Sample PDF
ERP-Driven Performance Changes and Process Isomorphism
$37.50
Chapter 9
Ronda R. Henning
The application software life cycle considers the functionality of a given collection of components within the context of a consumer’s requirements... Sample PDF
Application Integration within the Enterprise Context
$37.50
Chapter 10
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
A significant investment in resources is required for implementation of integrated enterprise systems as technology solutions while the... Sample PDF
The Impact of Enterprise Systems on Business Value
$37.50
Chapter 11
Charlotte H. Mason, Aleda V. Roth
Growing competitive pressures and escalating customer demands have led businesses to sophisticated information technology to manage costs and... Sample PDF
The Right Path to SCM-CRM Integration
$37.50
Chapter 12
Euripidis Loukis, Ioakim Sapounas, Konstantinos Aivalis
This chapter is dealing with the alignment of enterprise systems with business strategy and its impact on the business value that enterprise systems... Sample PDF
Enterprise Systems Strategic Alignment and Business Value
$37.50
Chapter 13
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
The market for enterprise systems (ES), continues to grow in the post millennium era as businesses become increasingly global, highly competitive... Sample PDF
Enterprise Systems in Small and Medium-Sized Enterprises
$37.50
Chapter 14
Kerstin Fink, Christian Ploder
Small and medium-sized enterprises (SMEs) are a vital and growing part of any national economy. Like most large businesses, SMEs have recognized the... Sample PDF
Integration Concept for Knowledge Processes, Methods, and Software for SMEs
$37.50
Chapter 15
Tobias Schoenherr, Ditmar Hilpert, Ashok K. Soni, M.A. Venkataramanan, Vincent A. Mabert
Although the research on integrated enterprise systems (ES) is proliferating, the knowledge base about ES implementations, usage and experiences... Sample PDF
Enterprise System in the German Manufacturing Mittelstand
$37.50
Chapter 16
Darshana Sedera
Organizations invest substantial resources in acquiring Enterprise Systems, presumably expecting positive impacts to the organization and its... Sample PDF
Size Matters! Enterprise System Success in Medium and Large Organizations
$37.50
Chapter 17
Joseph Bradley
ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow... Sample PDF
Implementing Best of Breed ERP Systems
$37.50
Chapter 18
Ganesh Vaidyanathan
Enterprise resource planning systems are complex yet single, integrated software programs that runs off a single database so that the various... Sample PDF
Enterprise Resource Systems Software Implementation
$37.50
Chapter 19
Calin Gurau
This chapter considers the importance of business modelling for implementing e-CRM systems. The introduction of e-business models requires the... Sample PDF
Restructuring the Marketing Information System for eCRM: An Application of the Eriksson-Penker Method
$37.50
Chapter 20
Albert Boonstra
At the present moment, many hospitals are going through a process of change directed at the integrated delivery of health care. Enterprise Systems... Sample PDF
Analyzing an ES Implementation in a Health Care Environment
$37.50
Chapter 21
S. Padmanaban
ERP systems have become key enablers of businesses today. While many organizations wish to adopt ERP for competitive advantage, they find choosing... Sample PDF
Designing to Deploying Customisable ERP Cost Effectively
$37.50
Chapter 22
Mateja Podlogar, Katalin Ternai
This chapter introduces the ERP systems, their complexity, and especially their integration in higher education as a significant challenge for many... Sample PDF
ERP Systems in Higher Education from Regional Perspective
$37.50
Chapter 23
Valentin Nicolescu, Holger Wittges, Helmut Krcmar
This chapter provides an overview of past and present development in technical platforms of ERP systems and its use in enterprises. Taking into... Sample PDF
From ERP to Enterprise Service-Oriented Architecture
$37.50
Chapter 24
ERP and Beyond  (pages 329-345)
Suresh Subramoniam, Mohamed Tounsi, Shehzad Khalid Ghani, K. V. Krishnankutty
Enterprise-wide automation has already transformed the relations among suppliers, purchasers, producers, and customers. Conventional ERP helps only... Sample PDF
ERP and Beyond
$37.50
Chapter 25
Gita A. Kumta
The chapter introduces the essence of ERP in government as a tool for integration of government functions which provides the basis for citizen... Sample PDF
E-Government and ERP: Challenges and Strategies
$37.50
Chapter 26
Manish Gupta, Raj Sharman
A paradigm shift is occurring in identity management philosophy. User-focused identity management is one the emerging and most promising paradigms.... Sample PDF
Emerging Frameworks in User-Focused Identity Management
$37.50
Chapter 27
Ramón Brena, Gabriel Valerio, Jose-Luis Aguirre
From the Knowledge Management perspective, Knowledge distribution is a critical process in organizations. As many of the other Knowledge-related... Sample PDF
Next-Generation IT for Knowledge Distribution in Enterprises
$37.50
About the Editors
About the Contributors