Subject: Enterprise IT Application and Integration

609 Assignment 9

Assignment Description

Do some research on the Internet to find current opinions on the pros and cons of using SaaS. Try to find some examples of success and failure stories. Under what circumstances do you think using a SaaS makes sense?

350+words APA format and two references please.

609 Discussion 9

Discussion Topic

Search the web and briefly discuss the current status of mobile applications for phones and tablets in the corporate world. Please be very brief,

Following is a good source for your discussion.

http://www.cisco.com/web/solutions/trends/unified_workspace/docs/Expanding_Role_of_Mobility_in_the_Workplace

200+words APA format and two references please

Concepts in Enterprise Resource Planning
Fourth Edition
Chapter Eight
RFID, Business Intelligence (BI), Mobile Computing, and the Cloud

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Objectives
After completing this chapter, you will be able to:
Define RFID and its role in logistics and sales
Define business intelligence (BI), and provide examples of its uses
Explain how in-memory computing will change the use of BI
Discuss the importance of mobile applications to businesses
Describe cloud computing and why it is becoming important for ERP providers

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Objectives (cont’d.)
Explain how the service-oriented architecture (SOA) concept has changed ERP development
Describe Web services, and outline the unique components of NetWeaver
Define software as a service (SaaS), and identify the advantages and disadvantages of using this software delivery model

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Introduction
An Enterprise Resource Planning (ERP) system allows a company to accomplish tasks that cannot be done well, if at all, without such a system
Traditionally:
ERP systems have been software applications that are run on a company’s own computer systems
Focus of ERP has been on managing business transactions

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Introduction (cont’d.)
Technologies, such as radio frequency identification (RFID), are increasing the amount of data that is contained in ERP systems
Business intelligence technologies are turning data in ERP systems into valuable information
Cloud computing and mobile technologies are changing where ERP data is stored and how it is delivered

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Radio Frequency Identification (RFID) Technology
Radio frequency identification technology
Known commonly as RFID
Becoming an increasingly efficient tool for tracking items through a supply chain
RFID device
Can be attached to products
A small package (or tag) made up of a microprocessor and an antenna
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Radio Frequency Identification (RFID) Technology (cont’d.)
RFID reader
Can determine location of an item with an RFID tag
Emits radio waves and receives signals back from the tag
Sometimes called an interrogator
Advantages of RFID technology:
Does not need a line-of-sight connection
Can withstand most environmental stresses
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Radio Frequency Identification (RFID) Technology (cont’d.)
Walmart is on the leading edge of the move to integrate RFID technology into the supply chain
Pharmaceutical firms are evaluating the use of RFID technology
RFID technology is being employed to track medical devices
Spectrum Health’s Meijer Heart Center is using RFID technology to track stents
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Business Intelligence/Business Analytics
Business intelligence (BI)
Also referred to as business analytics
A range of different applications and technologies used to extract and analyze large amounts of data to aid in decision making
Includes data-mining tools and querying tools
Often interactive and visual
There has been significant growth in the BI market in recent years
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Figure 8-1 SAP Business Intelligence (BI) framework
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Business Intelligence/Business Analytics (cont’d.)
Analytic applications and business intelligence
Similar sets of data analysis tools
Analytic applications
Data analysis tools applied to specific industries
Enterprise performance management
Concept of developing strategic goals for the organization
Gathering data to evaluate how the organization is performing in relation to those goals
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Business Intelligence/Business Analytics (cont’d.)
Governance, risk, and compliance category
A group of activities focused on ensuring an organization is functioning ethically and legally
Data warehousing
Technology used to store the large volumes of data used in the analysis
Enterprise information management
Describes the business and technology functions that manage information as a corporate asset
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In-Memory Computing
Data in a data warehouse are structured as multidimensional data cubes
Allow for relationships in the data to be analyzed quickly
Two main challenges with using a multidimensional cube structure
A significant level of technical expertise is needed to construct a cube
A multidimensional cube necessarily restricts how the data can be analyzed
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In-Memory Computing (cont’d.)
Accessing data from memory much faster than accessing data from a hard disk
Reason why data warehouses use disk memory: storage capacity
Hard disks can store one thousand times more data than memory for a comparable cost
Data compression provided by column storage
Makes it possible to store large volumes of data in memory without aggregation
Multidimensional cubes are not required
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Figure 8-2 Material master data table
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In-Memory Computing (cont’d.)
Both SAP’s and Oracle’s in-memory solutions are designed to analyze “big data”
Big data
Enormous amount of data that is now available for BI use from all the available sources, including:
ERP systems, Web sites, corporate databases, scientific research, Twitter, and other social networking applications
BI analytics was the top technology priority for CIOs in 2012
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Mobile Computing
Increasing use of smartphones, tablet computers, and other mobile computing devices
Mobile applications need to be developed for different kinds of smartphones, with different operating systems
Companies need to make many decisions about the use of mobile devices by employees
Mobile devices provide users with information and can also be sources of information
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From Internet-Enabled to Cloud Computing
Cloud computing
Delivery of a software product to a user via the Internet
The user typically accesses the cloud product through a Web browser or a lightweight (meaning small and simple) application for a computer or mobile device
Cloud computing is not a completely new concept
It represents the latest stage of the development of computing and the Internet
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SAP and the Internet
1996: SAP introduced its joint Internet strategy with Microsoft
Internet Transaction Server (ITS)
A server-based software system that enabled efficient communication between an SAP ERP system and the Internet
Core of SAP’s first effort to integrate the Internet with its products
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SAP and the Internet (cont’d.)
May 1999: SAP announced mySAP.com
A new strategy designed to completely realign the company and its product portfolio
Goal: combine e-commerce solutions with SAP’s existing ERP applications, using cutting-edge Web technology
2000: SAP began building on the mySAP.com vision
Added the capability for electronic marketplaces and corporate portals
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NetWeaver
2004: SAP introduced its first version of SAP NetWeaver
A collection of components that support business transactions over the Internet
Provide seamless connectivity of diverse applications
SAP’s enterprise service-oriented architecture (enterprise SOA)
Goal of making all of its business applications service based
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NetWeaver (cont’d.)
Web services
Combination of software tools that enables an organization’s various systems and applications to communicate with other applications
SAP’s NetWeaver
A Web services platform that allows various vendor applications to share data over the Internet
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NetWeaver (cont’d.)
One benefit of adopting SOA
Ability to quickly add new applications, making the organization more responsive
Use of open standards
Implementing SOA is not easy
Return on an SOA investment is often difficult to determine
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NetWeaver Tools and Capabilities
SAP’s NetWeaver platform is a collection of modules, including:
Enterprise Portal
Mobile Infrastructure
Business Intelligence
Master Data Management
Exchange Infrastructure
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NetWeaver Tools and Capabilities (cont’d.)
SAP Enterprise Portal gives users complete access to all their work on a single screen
All information is available through the Web services provided by NetWeaver
NetWeaver’s Mobile Infrastructure module allows users to access and work with data through mobile devices such as smartphones and pagers
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NetWeaver Tools and Capabilities (cont’d.)
Business Intelligence (BI) works with any database management software and any operating system that is running NetWeaver
Master Data Management provides data consistency within a company’s SAP system
NetWeaver’s Exchange Infrastructure module allows different applications to share data
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NetWeaver at Work for Fitter
Examining how NetWeaver can help Fitter
Fitter has an SAP ERP system
Fitter’s two top salespeople, Amy Sanchez and Donald Brown, are busy selling NRG bars directly to customers and to distributors
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SaaS: Software As A Service
A software delivery model
A software product is hosted by a company—such as SAP—on its servers and is accessed by customers via a Web browser
Sometimes described as a utility
A subset of cloud computing
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SAP Business ByDesign
An example of SaaS for the ERP market
First released in 2007
A full ERP system delivered to customers via the cloud
For small to medium-sized companies:
Lowers the total cost of ownership of the software
Enables a rapid and smooth implementation
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Figure 8-4 SAP Business ByDesign main screen
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SAP Business ByDesign (cont’d.)
PlaNet Finance
A small organization that offers microloans to customers in 30 international offices
Finds Business ByDesign is a good fit for its needs
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FIGURE 8-5 SAP Business ByDesign’s key capabilities
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Advantages of Using SaaS
Initial affordability
Lower cost to implement software provided through SaaS
Shorter implementation time
Implementation time usually shorter as the user does not have to worry about technical issues
Lower support costs and complexity
Do not need to hire additional IT personnel to implement new systems and applications
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Disadvantages of Using SaaS
Security
Bandwidth/response time
Flexibility
No frills
Technical, not business focus
Exercise 8.2
Fitter has made the decision to acquire an ERP system
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FIGURE 8-7 Arguments for purchasing ERP system and software versus using SaaS
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Option 1: Buying Computers and Software Rights for an ERP System
Estimated costs to set up its own ERP system:
Database server
Application server
PCs
Computer maintenance
Licensing rights
Installation
User training
Ongoing consulting
Network and database administrator
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Option 2: Using an SaaS Provider to Deliver ERP Software
Estimated costs for using an SaaS provider to deliver ERP software:
PCs
Computer maintenance
Software through the SaaS provider
User training
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Calculate the NPV and Make a Recommendation
You will set up a spreadsheet to total all the costs of each option
In each scenario, you must deal with the net present value (NPV) of money
NPV
A way to figure out whether an investment is profitable
In this case, to compare outlay of funds from one method to another
Addresses the time value of money
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Calculate the NPV and Make a Recommendation (cont’d.)
When calculating two different investment options, NPV calculation allows:
Different future expenses or earnings to be calculated as an equivalent amount in the present time
NPV can be calculated over a number of years
In example: we need a five-year outlay of funds for the ERP project
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Calculate the NPV and Make a Recommendation (cont’d.)
In an Excel spreadsheet, the syntax of NPV calculation:
=NPV (hurdle rate percentage, range of values)
Values in range can be positive or negative numbers
Hurdle rate
Rate of discount over the period
Minimum acceptable rate of return on a project that a company will accept
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Figure 8-8 Cost comparisons: buying versus SaaS
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Calculate the NPV and Make a Recommendation (cont’d.)
Perform the following steps:
Calculate the cost of the two methods of implementing an ERP system for five years
Consider using different hurdle rates for each option
Why might varying hurdle rates be applicable for this decision?
Write a memo, with your spreadsheet attached, to the CIO
Answer this question: Which method should Fitter choose, and why?
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Summary
Technologies such as radio frequency identification (RFID) and smartphones are fueling explosive growth in the amount of data available for businesses to process
Business intelligence (BI) tools are growing in sophistication and power
Technologies such as in-memory computing will provide greater speed and flexibility to BI users
Mobile computing technology is increasing the use of ERP and BI data
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Summary (cont’d.)
Cloud computing is the delivery of a software product to a user via the Internet
Web services and service-oriented architecture offer a combination of software tools that enables various programs within an organization to communicate with other applications
SAP’s Web services platform is NetWeaver
A collection of components that support business transactions over the Internet by providing seamless connectivity of diverse applications through the Internet
Concepts in Enterprise Resource Planning, Fourth Edition
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Concepts in Enterprise Resource Planning, Fourth Edition

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Summary (cont’d.)
Software as a service (SaaS) is a software delivery model in which a software product is hosted by a company—such as SAP—on its servers and is accessed by customers via a Web browser
SaaS model allows companies to use ERP without a large initial investment
SaaS solutions allow for more rapid improvements in the software through user communities
There are some risks associated with using an SaaS provider
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