Cloud Approaches for Enterprise Systems Lecture 1 PDF

Cloud Approaches for Enterprise Systems LECTURE ONE Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respe...

Cloud Approaches for Enterprise Systems LECTURE ONE Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respect to their Elders past, present and emerging. We are honoured to recognise our connection to Wurundjeri Country, history, culture, and spirituality through these locations, and strive to ensure that we operate in a manner that respects and honours the Elders and Ancestors of these lands. We also respectfully acknowledge Swinburne’s Aboriginal and Torres Strait Islander staff, students, alumni, partners and visitors. We also acknowledge and respect the Traditional Owners of lands across Australia, their Elders, Ancestors, cultures, and heritage, and recognise the continuing sovereignties of all Aboriginal and Torres Strait Islander Nations. Lecture Overview CHARACTERISTICS: Course outcomes Definitions : Enterprise, Systems & Enterprise Systems Origins and development of ES ES capabilities and benefits How ES differs to other systems Future opportunities for ES IMAGE: https://www.indiamart.com/proddetail/erp- management-software-12454160348.html What will you learn from this course ? COURSE LEARNING OUTCOMES : 1. Analyse and articulate the role of enterprise systems in organisations from a global, social and economic perspective 2. Develop a coherent understanding of the application of enterprise systems 3. Apply technical and theoretical knowledge regarding the operation of enterprise systems to the management of enterprise information 4. Communicate effectively as a professional and function as an effective leader or member of a diverse team What is unique about this course? COURSE STRUCTURE : Weekly asynchronous lectures Weekly workshops to extend content learnt in lectures Assignments linked to real world problems Access to learn and practice using the latest ES solution Why study Enterprise Systems ? IMPORTANCE OF ES: cost is high affects all people involved in an enterprise affects enterprises of all sizes all around the world impacts transactions costs within & between enterprises Diffuses many “best practices” influences business partner requirements affects competitors’ behaviour can provide strategic advantage has changed the nature of jobs in all functional areas  What is an “enterprise” ? “An organization, especially a business, or a difficult and important plan, especially one that will earn money” https://dictionary.cambridge.org/dictionary/english/enterprise Enterprises require people to: Source inputs: people, materials and knowledge Convert inputs into saleable outputs Sell outputs to customers Organise and manage limited resources SOURCING OPERATIONS DISTRIBUTION HUMAN TECHNOLOGY FINANCE SALES & SERVICE & LOGISTICS RESOURECES MARKETING PORTER describes this process as a “value chain” What is an enterprise ? https://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/ https://www.youtube.com https://www.investopedia.com/terms/v/valuechain.asp /watch?v=cK25bXKbf7w  To understand Enterprise Systems, business context needs to be understood PORTERS 5-FORCES MODEL: SOURCE: https://www.business-to-you.com/porters-five-forces/ What is a system ? “a set of connected things or devices that operate together” https://dictionary.cambridge.org/dictionary/english/system Systems impact on all facets of organisational life Organisations rely on systems to support their day to day operations Systems enable: People to communicate Processes to direct business functions Data to be transformed into information What is an Enterprise System ? (Alsocalled ERP =Enterprise Resources Planning) DEFINITION: Enterprise system (ES) is large-scale application software package that: 1. Supports business processes, resource management, information flows, reporting, and data analytics in complex organizations 2. Supports enterprise-wide or cross-functional requirements, rather than a single department or group within the organization. Enterprise systems integrate a range of business functions in order to acquire an overview of the business based on a single information architecture IMAGE: 3. have the potential to link and automate all aspects of the business, https://www.indiamart.com/proddetail/erp- management-software-12454160348.html incorporating core processes and main administrative functions into a single information and technology architecture. https://www.igi-global.com/dictionary/business-intelligence-impacts-on-design-of-enterprise-systems/10002 What makes Enterprise Systems unique ? (Alsocalled ERP =Enterprise Resources Planning) CHARACTERISTICS: Links all business processes automatically Transactions occur one time at the source Maintains an audit trail of all transactions Utilises and reutilises a common database for Master data Transactional data Enabling BI and analytics IMAGE: Utilises a common architecture https://www.indiamart.com/proddetail/erp- management-software-12454160348.html Performs internal conversions automatically (tax, foreign currency, legal rules for payroll) Real time data extraction Utilises best practice business processes Most system functionality has a common interface and consistent terminology Enterprise Systems act as a Digital Twin “A digital twin is a digital representation of a real-world entity or system. The implementation of a digital twin is an encapsulated software object or model that mirrors a unique physical object, process, organization, person or other abstraction.” https://www.gartner.com/en/information-technology/glossary/digital-twin Why think of ES as a digital twin ? ES only contains data that we enter into ES ES provides the best understanding available of what is happening across all areas of the enterprise ES provides data that can assist solve problems and develop future strategies for the enterprise ES expertise provides a personal competitive advantage for those who study ES and can leverage ES capabilities An overview of the Enterprise System Two short videos explaining ES https://www.youtube.com/watch?v=6qys-562kp4 https://www.youtube.com/watch?v=fH2CEkShyBs Origins of ES (1973) … From advanced calculator to manage production … Material Requirements Planning (MRP) And the “green screen” computer … to advanced decision making tool today The evolution of time: MRP = Materials Requirements Planning – to calculate material needs in production MRP II = Manufacturing Resources Planning – to manage all production resources ERP = Enterprise Resources Planning – to manage all resources in an enterprise ES = Enterprise Systems – integration of all systems in an enterprise ES adoption is a strategic decision by the enterprise STRATEGY FOCUS This Week’s focus What tools do I need to enable my business strategy What investments do I need to make Strategy Definition BUSINESS PROCESS FOCUS Business How am I doing relative to the competition Operations How can I optimise my business processes SOLUTION FOCUS What are the current issues (end user Functional training, config., …) Environment How can I better take advantage of the current capabilities INFRASTRUCTURE FOCUS What are the primary areas of risk How can I reduce my total cost Infrastructure of ownership Environment Why do organisations adopt Enterprise systems? Reasons for enterprises adopting ES: Rationales Main drivers Technology Rationales A need for integration Disparate Systems Poor existing systems Difficult to integrate acquisitions Common platform and data transparency Business Process Rationales Personnel reduction IT cost reduction Productivity Improvements Revenue Strategic Rationales Added functionality eBusiness Response to mergers etc Competitive Rationales competitive pressures to become a low cost producer ES enables enterprises to manage relationships Ways in which enterprises can use ES to manage relationships: Relationships ES capabilities Transactions – present and future Customers Employees Past events inform relationships Suppliers eg sales/purchases/peoples actions Manage current events Manufacturing eg sales/purchases/resources Plan for potential events Compliance eg sales/purchases/staff capacity Stakeholders Financial events Top 10 Enterprise system benefits A survey conducted by Accenture in 2014 targeted Benefits the Asia Pacific region. They interviewed 180 IT executives in private sector companies. Improved management decision making The following benefits were reported from enterprise Improved financial management solution implementations: Improved customer service and retention 81% reported faster information transactions, Ease of expansion/growth and increased flexibility 76% better managerial decision-making 75% improved financial management; Faster, more accurate transactions 67.2%, improved inventory and asset management Headcount reduction 65.6% Cycle time reduction Cycle time reduction 62.8%, ease of expansion/growth and increased flexibility Improved inventory/asset management 61.1%, fewer physical resources required and improved logistics Fewer physical resources/better logistics 53.3% headcount reduction, and Increased revenue 40.0%. increased revenue Top Performing Companies … (Accenture study) 1. Realize much more value from their systems and use them in distinctly different ways. 2. Likely to seek and measure tangible benefits, such as reduced cost and increased revenue. 3. Emphasis on integrating, optimizing and using analytics to drive improved business performance. 4. Extend systems throughout their organization and implement across a range of functions. 5. Integrate the organization and external systems of customers and suppliers. 6. Aggressively use information and analytics to improve decision making. 7. System used strategically for competitive differentiation. 8. Tailor systems to sustain competitive advantage and standardize other areas. 9. More likely to implement industry modules. 10. Twice as likely to take advantage of SOA. ES implementation also has a down side Disadvantages of ES implementation: Expense, time and difficulty in implementation; Loss of experienced staff due to changes and disruptions; ES will not necessarily replace every system used by the organisation, and integrating those that remain may be difficult; Mapping data from the old system(s) to the new can be complicated (and perhaps risks data loss?); Risks in using one vendor - may take advantage of your dependence to impose high costs. What happens if the product is discontinued or the provider goes bankrupt? Risks of implementation (project) failure. What are the benefits of ERP? Visual picture of the benefits of ERP: What is ERP? Benefits of ERP in a simple video: (1.51 mins) https://www.youtube.com/watch?v=a_R-WCmBcRY How ES differs to other systems ? ES integrates all systems in an enterprise: ES brings together previously isolated information systems with the goal of providing a more whole or complete information resource This integration includes bringing together: People Processes Information Systems To achieve a common strategic business goal  The objective of a good accounting modules to provide company-wide control and integration of key information that is essential to strategic decision making. The accounting module of an ERP System, provides the ability to centrally track accounting data (e.g. financial accounting data) across multiple location (e.g. local, national, and international) and multiple companies, languages, and currencies. ES integrates by connecting activities into end-to-end processes Integration capability of ES provides future opportunities Nine technologies are transforming industry: SOURCE: https://www.bcg.com/capabilities/operations/embracing-industry-4.0-rediscovering-growth.aspx And the speed of change is continuing – requiring more skilled ES professionals Speed & agility v’s slow & steady Today, there are many ES solutions More than 100 ERP software vendors and over 150 ERP solutions Enterprise Systems by size of Organisation (Australia) https://valueadders.com.au/2020/08/the-top- 10-erp-systems-in-the-australian-market/ Cloud Approaches for Enterprise Systems LECTURE TWO Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respect to their Elders past, present and emerging. We are honoured to recognise our connection to Wurundjeri Country, history, culture, and spirituality through these locations, and strive to ensure that we operate in a manner that respects and honours the Elders and Ancestors of these lands. We also respectfully acknowledge Swinburne’s Aboriginal and Torres Strait Islander staff, students, alumni, partners and visitors. We also acknowledge and respect the Traditional Owners of lands across Australia, their Elders, Ancestors, cultures, and heritage, and recognise the continuing sovereignties of all Aboriginal and Torres Strait Islander Nations. Lecture Overview CHARACTERISTICS: Standards and standardisation Integration and data redundancy ES data types ES business processes Data privacy IMAGE: https://www.indiamart.com/proddetail/erp- management-software-12454160348.html Enterprise challenges One of the greatest challenges in larger enterprises is producing a consistently positive customer/client experience. Comprehensive and real-time data storage, in conjunction with the use of ERPs, provides the ability to improve standardization of the customer/client experience … driven by data differences Where there is no one consistent view of data – every department has a different view of data Standards "A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose." - ISO They are designed to ensure products, services and systems are reliable and consistent. They are based on industrial, scientific and consumer experience and are regularly reviewed to ensure they keep pace with new technologies and requirements. Why Are Standards Important ? Standards ensure consistency of essential features of goods and services, Quality Reliability, Compatibility, Interoperability … Standards codify (latest) technologies and facilitate their transfer. Standards are reliable source of knowledge and points of references. Standards helps avoiding reinventing the wheel. Standards Classifications By the Scope International standards are developed by ISO, IEC, and ITU. Regional standards are prepared by a specific region, such as the European Union, joint Australian/New Zealand standards. National standards can be developed by a national standards body (like Standards Australia) or other accredited bodies. By the Usage de facto standards: followed by informal convention or dominant usage. de jure standards: part of legally binding contracts, laws or regulations. Voluntary standards which are published and available for people to consider for use. ES provides standardisation in 3 areas Data Standardisation Process Standardisation Technical Standardisation Data standardisation > Content Data Presentation Consistent user interfaces Multi-level Dashboards Standard graphs and charts Signs and Symbols Format: Store Business Data in a Usable and Consistent Format Data Structure Data Provenance Data Size > Retention and disposal Master Data Management Technical Standards Provide inter-connectability, enabling communication between devices and enterprises Communication and Networks Protocols (Internet vs Intranet) IPv4 vs IPv6 Security Encryptions Https Public and Private keys Technological Platforms e.g. Cloud-based Systems Mobile Communications Standard Business Process Make procedures and processes consistent in organizations. Avoid different practices to do the same process. Avoid loss of productivity (loss reductions) Change of a company’s culture Increasing transparency Increase interoperability Ensure Regulatory Compliance Business Process Standardisation Challenges & Risks CHALLENGES: Setting Standards (Teams, Committees) Communicating Standards (Training, Workshops) Establishing adherences (Other Standards, Policies, Processes, Procedures) Encouraging the continuous improvement of standards (Change of culture) RISKS: Too much dos and don’ts Lack of organizational readiness Organizational Culture Organizational Maturity Management Styles and Values Existing policies Poor communications Not enough time for planning and training Bad choice of EPR or poor design and implementation ES data types  There are three key types of ES data Ie Document describing an event eg purchase order, sales order Ie Counters always changing eg inventory, cash balance Ie Descriptors that don’t change eg product number, customer id SOURCE: http://bi-insider.com/posts/types-of-enterprise-data-transactional-analytical-master/ Much of the discussion in ES focusses on Masterdata and removing data duplication across the enterprise These two short videos will help explain the differences between data types https://www.youtube.com/watch?v=V0pwf_H7Vwk https://www.youtube.com/watch?v=Iv9P5D6yj30 RUN TIME: 2:38min RUN TIME: 3:30min Examples of key ES transactional data PO SO WO PS PURCHASE SALES WORK PRODUCTION ORDER ORDER ORDER SCHEDULE DD I SR CN DELIVERY INVOICE SCRAP CREDIT DOCKET REPORT NOTE Each transactional document places a “digital twin” of events that have taken place in the enterprise © Managing Data flow in Enterprise Systems: Masterdata and Transactional Data 19  Role of the Purchase Order and Sales Order linking processes between companies BUYER SELLER SIDE SIDE The P.O. The S.O. 20 Processes Processes convert inputs into outputs SOURCE: https://awebcity.com/what-are-the-factors-for-the-success-of-product-production-planning/ Enterprises convert inputs into products for customers SOURCE: https://ctmfile.com/sections/background/trade-financial-supply-chain-management High level picture of a simple supply chain SOURCE: “Introduction to Supply Chain Management” Distribution Planning and Control pp 3-43| David Frederick Ross ES provide standard organisation processes within & between enterprises “A process is a lateral or horizontal organizational form, that encapsulates: interdependence of tasks, roles, people, business units and functions, required to provide a product or service” A business process is comprised of : people who conduct the process, tools they use to assist them, procedures they follow and flows of material and information between the various people, groups and sub-activities According to GARTNER: A workflow consists of an orchestrated and repeatable pattern of business activity Tasks, information are passed from one agent to another for action, according to a set of procedural rules. Enabled by the systematic organization of resources into processes Transform materials, provide services, or process information  EXAMPLE: Business workflow using swimlane approach Swimlane chart for employee recruitment SOURCE: https://conceptdraw.com/a3196c3/preview Why workflows are important Improve productivity Make processes transparency Enable faster business reaction Improve accountability Enable companies to streamline and speed up internal processes by reducing manual entry and request handling Reduce errors and re-work Reduce risk of improperly approved requests, contracts, hires, etc. Improve compliance with audit trails Increase output and increase productivity The core business processes in ES Six Core Business Processes in ES (Okrent & Vokurka, 2004) 1.Quote-to-Cash* 2.Procure-to-Pay 3.Plan-to-Perform 4.Manage Production 5.Product Life Cycle 6.Manage Finances Other processes include: 1.Order-to-Cash (* part of #1 above, and more commonly used for when product price is fixed) 2.Hire-to-Retire 3.Customer Relationship Management M. D. Okrent and R. J. Vokurka, “Process mapping in successful ERP implementations”, Industrial Management & Data Systems, 2004  Hire-to-Retire Key process components : Masterdata to uniquely identify the resource. Analytical data Transaction data that records events to change the resources, such as development training 29 Customer Relationship Management CRM lets organisations to store and manage customer information (e.g. contact info, accounts, leads) in a central database. CRM covers a broad set of applications that enable organisations to manage critical business processes like customer interaction, marketing, customer support. CRM creates information assets. There a number of core processes within CRM systems Enterprise Asset Management (EAM) is a including: comparable process for : The process of identifying potential leads/prospects factories, machines and vehicles uniquely identified in masterdata Understanding customers’ needs and trends For which a transaction record of each Nurturing customers and supporting the sales process maintenance event is held Ensuring relationships with customers are maintained GRAPHIC SOURCE: Jocovic, Melovic, Vatin and Murgul, “Modern business strategy Customer Relationship Management in the area of civil engineering,” Applied Mechanics and Materials 2014 they are offered and encourage to repeat business.  Quote-to-Cash 31 SOURCE: https://appsource.microsoft.com/blogs/apttus-quote-to-cash-helps-manufacturers-streamline-sales  Order-to-Cash Sales and Distribution (SD) Module: Traditional Representation 32 SOURCE: http://www.meltemplates.com/sample-template/making-ex-v-are-you-ready-to-decide-png-business-process-transformation-checklist-decision-making-checklist-ex-v-are-you-ready-jpg/  Procure-to-Pay 33  Plan-to-Perform Advanced ES may include S&OP or IBP process linking multiple functional modules together 34 SOURCE: http://implementconsultinggroup.com/inspiration/tools-and-methods/implementing-sop/  Plan-to-Produce 35 RMIT University© NEW PRODUCT INTRODUCTION – DATA OUTPUTS Product Life Cycle (PLC) process End product code Life of product – start and end date End product details eg size and weight Components and their source Bill of Material (BOM) ie a recipe on how to make Routing ie sequence of machines used to make product Type of product Make to order Assemble to order Make to stock Batch size to make product – minimum & multiple Replenishment Quantity – stock level to be maintained Location in Warehouse to put product once made 36 SOURCE: https://www.slideshare.net/SoftwareAG/3-iwbpphilipsfinal3  For more on Operations Management & Supply Chain Operations Management Management of the chain of supply https://www.youtube.com/watch?v=leMOReAE2hk&t=104s https://www.youtube.com/watch?v=Mi1QBxVjZAw 37 SCOR model is a useful model to understand businesses of all types SCOR model to describe supply chains PLAN SOURCE MAKE DELIVER RETURN ENABLE SOURCE: Gordon Stewart, (1997) "Supply‐chain operations reference model (SCOR): the first cross‐industry framework for integrated supply‐chain management", Logistics Information Management, Vol. 10 Issue: 2, pp.62-67 Data privacy & confidentiality Data, Facts, Truth, Information and Evidence critical distinction is between facts and truth Truth Reality behind the facts Facts Available data and presents incomplete snapshots of events. Sometimes the facts may obscure the truth (perhaps deliberately) Data Data can be use to create information Information Informs, and can support process of decision making Evidence facts that support conclusion of the decisions made DATA Integrity, Reliability & Authenticity Integrity Data integrity is an important component of an organisation’s (industry) responsibility to ensure safety, efficacy, and quality of products & services Data integrity violations may lead to regulatory actions(e.g. warning letters, consent decrees, financial penalties) Reliability The extent to which one can rely on the source of the data and the data itself Consistency is the main measure of reliability. the reputation of the source is critical. Authenticity Authenticity, is linked to the data’s mode, form, and state of transmission, and to the manner of its preservation Relies on methods that ensure that the data is not manipulated or altered Data is precisely as reliable as it was when made, received, and set aside Data authenticity and the transmission of data through enterprise systems The mode of transmission of data is the method by which data is communicated over space or time. The more secure the method of transmission, the higher the guarantee that the data received is what it purports to be. Authenticity is best ensured by guaranteeing that data maintains the same form through transmission, both across space and through time. What is an Audit Trail? Secure, computer-generated, time-stamped electronic record that allows for reconstruction of events relating to the creation, modification, or deletion of an electronic data Chronology: who, what, when & why of the recorder data Track actions at the data or system level Prevent data from being lost or obscured What does the Audit Trail capture? Privacy and confidentiality The terms 'privacy' and 'confidentiality' are commonly used interchangeably. However, they are related but not identical concepts. Privacy The right to control access to oneself includes physical and digital privacy. Confidentiality Relates to information only. It is a duty that aims to protect the agent, and potentially the wider community, against harms. Privacy and Security Security and privacy are closely related concepts and technologies Privacy is about: ability to decide about your data ability to be confident that those decisions are respected. Security is about accessing data including private data. Relationship can be similar, orthogonal or conflicting.  An organisation must not collect sensitive Sensitive data information about an individual unless— "sensitive data" means data about an individual's: (a) the individual has consented; or (b) the collection is required under law; or (a) racial or ethnic origin; or (c) the collection is necessary to prevent or (b) political opinions; or lessen a serious and imminent threat to the (c) membership of a political association; or life or health (d) religious beliefs or affiliations; or (e) philosophical beliefs; or (f) membership of a professional assoc.; or (g) membership of a trade union; or (h) sexual preferences or practices; or (i) criminal record Data & Privacy Principles VICTORIA, Australia Principle 1—Collection An organisation must not collect personal information unless the information is necessary for one or more of its functions or activities. Principle 2 - Use and Disclosure An organisation must not use or disclose personal information about an individual for a purpose (the secondary purpose) other than the primary purpose of collection Principle 3 - Data Quality An organisation must take reasonable steps to make sure that the personal information it collects, uses or discloses is accurate, complete and up to date. Principle 4 - Data Security An organisation must take reasonable steps to protect the personal information it holds from misuse and loss and from unauthorised access, modification or disclosure. Principle 5 - Openness An organisation must set out in a document clearly expressed policies on its management of personal information. The organisation must make the document available to anyone who asks for it. Principle 6 - Access and Correction Individuals have a right to seek access to their personal information and make corrections, subject to some limited exceptions, such as where access would pose a threat to the life or health of any individual. Principle 7 - Unique Identifiers Organisations cannot adopt or share unique identifiers (i.e. a number or other code associated with an individual’s name, such as a driver’s license number) except in certain circumstances, such as where the adoption of a unique identifier is necessary for that organisation to carry out one of its functions. Principle 8 – Anonymity If it is lawful and feasible, organisations must give individuals the option of not identifying themselves (i.e. remaining anonymous) when they engage with the organisation. Principle 9: Trans-border Data Flows An organisation may not transfer personal information outside Victoria unless the recipient of the information is subject to privacy standards that are similar to the IPA, or in other limited circumstances. Principle 10-Sensitive Information An organisation can only collect sensitive information in restricted circumstances. Analysing ethical issues & Ethical Business Decision Making The first step in analysing ethical/moral issues is obvious but not always easy Get the facts This first step is the most important and the most overlooked step in analysing ethical issues Is having the facts enough? Facts by themselves ONLY tell us what is; They do not tell us what ought to be In addition to the facts, resolving an ethical issue and making at ethical decision requires an appeal to values. There are five different approaches to values to make ethical decisions 5 different approaches to make ethical decisions Approach Brief explanation From: Utilitarian provides greatest balance of good over evil ie choose 19th action with greatest benefits and least harm Century Rights respects moral rights of everyone, eg privacy Kant People are free and have the right to choose freely Fairness of treats everyone in the same way, without favouritism or Aristotle Justice discrimination Favoritism: giving benefits to some people without a justifiable reasons for singling them out Discrimination: imposing burdens on people who are no different from those on whom burdens are not imposed Common focuses on governing systems (e.g. policies & rules) on Good which the community depends and is beneficial to all. eg public safety, sustainable environment Virtue centres on ideas (virtues) to which we should strive. e.g. Honesty, courage, integrity, … ie the kind of person do I become in making this decision? Once we have ascertained the facts, ask 5 questions to make an ethical decision: 1. What benefits and what harms will each course action produce, and which alternative will lead to the best overall consequences? 2. What moral right do the affected parties have and which courses of action best respects those rights? 3. Which course of action treats everyone the same, except where there is a morally justifiable reasons not to, and does not show favouritism and discrimination? 4. Which course of action advances the common good? 5. Which course of action develop moral virtue? This method is merely meant to help identify most of the important ethical considerations. It is not meant to provide an automatic solution to ethical decision making. What does this mean to us as Managers? What data is collected ? Public vs Private (confidential) How and where is data kept secure ? At the business, in country or remotely offshore Data security – can the data be removed eg with USB memory Who has access to the data? Within the business External to the business How data is used Are decisions made using data collected ? Are customers aware how their collected data will be used ? Audit trail Is person accessing and changing data recorded by date Managing Data and Process SOURCE: https://www.slideshare.net/FulcrumWay/webinar-feb-19-2014-effective-access-controls-r2 Mini Case Study Making a simple product Requires considerable components to be sourced And assembled according to standard instructions (business process) in ES to meet customer requirements Cloud Approaches for Enterprise Systems LECTURE THREE Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respect to their Elders past, present and emerging. We are honoured to recognise our connection to Wurundjeri Country, history, culture, and spirituality through these locations, and strive to ensure that we operate in a manner that respects and honours the Elders and Ancestors of these lands. We also respectfully acknowledge Swinburne’s Aboriginal and Torres Strait Islander staff, students, alumni, partners and visitors. We also acknowledge and respect the Traditional Owners of lands across Australia, their Elders, Ancestors, cultures, and heritage, and recognise the continuing sovereignties of all Aboriginal and Torres Strait Islander Nations. Seek assistance as a preventative measure Take the following relevant preventative measures as soon as possible, if you are falling behind in your studies: Study difficulties: Discuss any difficulties you are experiencing with your course leader, unit coordinator, lecturer or tutor. These staff members can assist you in identifying your problem areas and explore the options available to you in your course. Learning and Academic Skills (LAS) Centre can help you with study methods, language skills and work presentation https://www.swinburne.edu.au/current-students/student-support-services/study-support/improve-skills/ Student life and support services can be found at: https://www.swinburne.edu.au/current-students/student-support-services/ Lecture Overview CHARACTERISTICS: Trends affecting ES Enterprise Systems selection: Infrastructure – cloud/on premise/hybrid ERP Vendors Stakeholder management Governance IMAGE: https://www.indiamart.com/proddetail/erp- management-software-12454160348.html Today, what we know is constantly changing Digital Convergence SAP Mobility Predictions - insider Research (2015-2020) ES infrastructure User Perspective Traditional (Classical) Three-Tier Architecture Presentation Application/Service Data Structure of ERP Systems : Three Layer of Technologies Generally, ERP systems can be viewed as a structure built of three major categories of technologies Database – Where Master Data (e.g. Customers) and Transactional Data (e.g. Payments) are stored. Backend – the engine that performs the operations in the system according to the users’ request, for example, a request to make a list of the products and goods on the particular warehouse. Frontend – the graphical interface that allows the users to communicate with the backend for example, form the requests and then display the received information. Types ERP Solutions: Technological Approach Client/server (On-Premises ERP) Cloud/web-based ERP Hybrid ERP Three-tier Client/Server A client/server ERP technology works on a hub of computers which are networked locally It enables database hosting in the central location and distribution of reporting services and user interface into all other locations. Client/server ERP technologies help organizations to monitor and manage resources in real time. The ERP frontend and backend run as an application launched on the user’s machine. The data is shared via the database located in the intranet (local server) or extranet. It allows for quick collaboration and easy access to the database even if the team members are located in different locations. Cloud/web-based ERP In cloud/ web-based ERP the database and the backend are running in the cloud typically, a SaaS product. The interface is rendered in the web browser. User only need to access a web browser (on any device) Users can easily access applications including disk storage, memory and processing power which are hosted on the server. The upfront cost of the web-based ERP technology is lower. Installation of software and hardware is not required which is usually a long process, therefore the turnover of cloud-based ERP technology is quick. Cloud-Based Architecture Hybrid Cloud Hybrid ERP is the combination of the web-based ERPs and desktop- based solution. There are two versions, the one which can be launched as a desktop app and the other which you can access via a browser. They have a unified database to share the same data regardless of how user access it whether via the browser or application. The backend for the web app runs on the server and the backend for the desktop app runs on the users’ machine. Both versions make the request for the database that is running in the cloud in the same manner irrespective of whether an individual is using the browser or desktop application. Organizations prefer Hybrid ERP over cloud and web ERP due to its rapid implementation, shorten maintenance cycle and vendor independence. The downside of the hybrid ERP includes installation of the latest technological infrastructure which usually needs a huge amount of investment. These solutions are neither as tested nor mature compared to cloud-based ERP. The enterprise of the future ES vendors Today, there are many ES solutions More than 100 ERP software vendors and over 150 ERP solutions Enterprise Systems by size of Organisation (Australia) https://valueadders.com.au/2020/08/the-top- 10-erp-systems-in-the-australian-market/  Software 2012 Revenues, Rank 2012 Vendor Market Share 2012% $M, USD 1 SAP 7,499 20.80% Market share of ERP vendors 2 Oracle 4,211 11.70% 3 Infor 1,443 4.00% 4 Sage 1,380 3.80% 5 Microsoft 1,372 3.80% 6 Epicor 507 1.40% 7 TOTVS 470 1.30% 8 Constellation Software 455 1.30% 9 UNIT4 423 1.20% 10 Intuit 420 1.20% 11 Ellucian 407 1.10% 12 Cerner Corp. 382 1.10% 13 CompuGroup 377 1.00% 14 Jack Henry & Associates 358 1.00% 15 Visma 355 1.00% 16 AthenaHealth 350 1.00% 17 RealPage 312 0.90% 18 Medical Information Technology 298 0.80% 19 Ventyx 280 0.80% 20 Yonyou Software Co., Ltd., 280 0.80% 21 SS&C Technologies 261 0.70% 22 NetSuite 253 0.70% 23 Deltek, Inc. 245 0.70% 24 JDA Software Group, Inc. 235 0.70% 25 Tyler Technologies 230 0.60% 26 Yardi 224 0.60% 27 McKesson Corporation 223 0.60% 28 IFS AB 217 0.60% 29 Cegid 210 0.60% 30 Reynolds and Reynolds 208 0.60% 31 Quality Systems, Inc. 203 0.60% 32 Aderant Holdings, Inc. 200 0.60% SOURCE: https://blog.trginternational.com/a-comparison-of-tier-1-erp-vendors 33 eClinicalWorks 200 0.60% 34 Pearson Education 200 0.60% 35 Vitera Healthcare Solutions 200 0.60% 36 Dealertrack 194 0.50% 37 Vertafore 190 0.50% SOURCE: https://www.appsruntheworld.com/top-100-erp-vendors-in-2012/ 38 Workday 181 0.50% 39 QAD 170 0.50% Cloud Companies ES selection Checklist before pursuing an Enterprise System 1. Do your organization’s business leaders support the ERP implementation? 2. Who are the line-of-business professionals that can be responsible for measuring the business benefits relevant to their department’s ERP modules 3. Who will be the ERP project manager? 4. What are the specific business problems you need to solve with ERP? 5. What are the goals and metrics that you will use to measure the business benefits of your organization’s new ERP solution? 6. What features and functions do you need from a new ERP solution that will help increase users’ productivity and provide access to the business data users most need? 7. Which modules will you begin rolling out your ERP package? 8. Is the prospective ERP solution built with Service-oriented architecture (SOA) capabilities? 9. Which users across your organization will need to be trained on the new system? 10. Will the ERP package be able to adapt to changes in your business as your company grows? Implementation Strategies #1: Clearly Define Requirements Before Taking Action #2: Evaluate Your Options #3: Document User Procedures #4: Single-Step Implementation #5: Phased Rollout #6: Parallel Adoption #7: Consider Customization #8: Choose the Right Project Leader #9: Don’t Forget Mobile Users #10: Allocate Sufficient Time and Resources for Training SOURCE: http://www.compudata.com/top10erpimplementationstrategies/ Key choices Vanilla v’s Customised or mix Cloud v’s On-Premise or Hybrid Big Bang or Phased and how phased Parallel adoption Data harmonisation – pre-implementation Location of where data is held Private v’s public cloud How data is transferred between locations Inhouse v’s external implementation staff Onshore v’s offshore implementation team  And the way business organises differs, which impacts how ERP technology is implemented SOURCE: https://m360.sim.edu.sg/article/Pages/Organising-Plays-a-Part.aspx Unique Threats and Risks of Cloud-Based Services Reduced Visibility and Control When transitioning digital assets to the cloud, organizations lose some visibility and control over those assets Internet-Accessible Management APIs can be Compromised Organizations use APIs to manage, orchestrate, and monitor their assets and users. These APIs can contain the same software vulnerabilities as desktop systems Separation Among Multiple Tenants Fails Leading to an increased chance of data leakage if the separation controls fail. Data Deletion is Incomplete consumer has reduced visibility into where their data is physically stored in the cloud and a reduced ability to verify the secure deletion of their data. Privacy Concerns of Cloud-Based Services Lack of clear privacy agreement and service level agreement A suitable agreements should be in place before services commence. Security and data protection Consider how your data will be stored and secured when outsourcing to a third party. Location of data Cloud computing service providers are often located outside organisations. where your data is being stored and which privacy and security laws will apply to the data. Legislation and regulation legislation and regulation requirements can vary at different geographic location. Governance & Stakeholder Management Project Implementation Governance Governance is the set of policies, roles, responsibilities, and processes that you establish in an enterprise to guide, direct, and control how the organization uses technologies to accomplish business goals and mitigate risks associated with IT implementation SOURCE: http://albarkaatmba.blogspot.com/2010/01/corporate-governance-framework.html Typical roles in an ES implementation Executive Management Champion Project Committee of Governance Project Manager Project Team ES Vendor Change Manager Training Lead SOURCE: http://albarkaatmba.blogspot.com/2010/01/corporate-governance-framework.html Critical Success Factors (CSFs) Identified by Daniel (1961) and popularised by Rockart (1979) DEFINITION: “for any businesses, the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation. They are the few key areas where ‘things must go right’ for the business to flourish. If results in these areas are not adequate, the organisation’s effort for the period will be less than desired” (Rockart, 1979, p. 85) CSFs are the key areas in which good performance is required to achieve organizational goals CSF identify the areas of activity that should be constantly monitored by the management to ensure that organization achieve their goals Critical Success Factors are not the same for all parties involved Consultants, vendors and developers are concerned about successful delivery of a working product against contract delivered in as short a time frame as is possible Organisations are concerned that business processes work and receiving the required support for all staff to function effectively SOURCE: TEO (2006)  Source: Deloitte Consulting and Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system) Note: Rounded percentages; not all categories are shown as bars Lack of critical success factors Top Issues Organizations Face During Enterprise Resource Planning Lack of a Change Management strategy 16% Internal Staff inadequacy 8% Lack of skills in the Project Team 7% Inadequate Training 7% Poor Prioritization/Resource Allocation 6% PEOPLE 62% Lack of Top Management Support 6% Issues/Obstacles Ineffectual or poor consultants 5% Ownership (of benefits to others) 4% Lack of Discipline 2% Program Management 8% Process Reengineering 4% PROCESS 16% Stage/Transition 2% Benefit Realization 1% Software Functionality 4% Application Portfolio Management 3% TECHNOLOGY 9% Enhancements/Upgrades 2% Data 2% KNOWLEDGE ASSETS 3% Reporting 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Directly related to Orgn Change Mgmt & Training Cloud Approaches for Enterprise Systems LECTURE FOUR Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respect to their Elders past, present and emerging. We are honoured to recognise our connection to Wurundjeri Country, history, culture, and spirituality through these locations, and strive to ensure that we operate in a manner that respects and honours the Elders and Ancestors of these lands. We also respectfully acknowledge Swinburne’s Aboriginal and Torres Strait Islander staff, students, alumni, partners and visitors. We also acknowledge and respect the Traditional Owners of lands across Australia, their Elders, Ancestors, cultures, and heritage, and recognise the continuing sovereignties of all Aboriginal and Torres Strait Islander Nations. Lecture Overview Topics covered : ES implementation Change management Business Process Re-engineering Project management Risk management IMAGE: https://www.indiamart.com/proddetail/erp- management-software-12454160348.html The ES implementation challenge Enterprise Systems provide Data Standardisation Process Standardisation Technical Standardisation Need to align business processes and Enterprise Systems Making decision between custom and vanilla implementation Business Process Improvement (BPI) Business Process Re-engineering (BPR) Managing change is key part of implementing ES Understanding the range of relationships in business Acknowledging normal human second order change IMAGE: Using a change model to reduce change risk https://www.indiamart.com/proddetail/erp- management-software-12454160348.html Enterprise Systems and Change Change is at the heart of IT systems Change of Business Processes implementation Change affects Change of Data Flow Processes Outcomes People Change of human roles Workflow Automation https://www.youtube.com/watch?v=NUfcPfh1Rcg Change Management People go through phases before they can accept change Change Curve: Human Behaviour in the face of change One approach for managing people through change is Kotter's 8 Step Model of Change SOURCE: https://medium.com/@warren2lynch/a-comprehensive-guide-to-kotters-8-step-model-of-change-43d4eb86f1ea Implementation of ES can change the way work is done SOURCE: https://www.teachthought.com/critical-thinking/3-modes-of-thought-divergent-convergent-thinking/  SOURCE: SOURCE: https://pmp- SOURCE: https://pmp- http://www.differencebetween.net/science/psychology/differe nce-between-divergent-thinking-and-convergent-thinking/ practitioners.com/contrary-to-popular/ practitioners.com/contrary-to-popular/ Business Process Re-engineering Business Process Reengineering Business Process Reengineering (BPR) - also known as process innovation and core process redesign - attempts to restructure or obliterate unproductive management layers, wipe out redundancies, and remodel processes differently. Business Process Reengineering (BPR) aims at cutting down enterprise costs and process redundancies, but unlike other process management techniques, it does so on a much broader scale. BPR, Business Process Reengineering is radical because it often ignores the rules that apply to the current processes. It usually demands heavy investment (e.g. training and IT resources), Business Process Reengineering vs Business Process Improvement There are fundamental differences that distinguish the two: BPI might be about downsizing or tweaking a few rules BPR is an unconstrained approach to look beyond the defined boundaries (rules, policies, procedures) and bring in fundamental changes. BPI is like upgrading your operating systems. Business Process Reengineering is about rethinking the entire way the operating system works. Business Process Reengineering Before a company decides to adopt BPR for their functional reshuffling, they usually answer the following questions: Who are our customers? What values are we offering them? Are the current processes delivering expected values? Do the processes need to be redefined or redesigned? Are the processes in sync with our long-term mission and goals? How would we handle the existing processes if we were a new company? Business Process Reengineering Historical Development of ERP business process reengineering Invest more heavily in business process redesign when implementing information technology have greater productivity and business performance than those that don’t (Brynjolfsson and Hitt, 1995). It was the concept of reengineering business processes that led to the large wave of ES implementations in the 1990s in the first place (Davenport, 1993). By adopting ES software, organizations hoped to quickly reengineer and standardize the majority of their business processes to reflect best practice processes. At the same time, some organizations sought to carefully configure the systems so that they aligned with organizations’ business processes and objectives, and to simultaneously restructure their organizations and processes to take advantage of new data (Legare, 2002; Hong and Kim, 2002). Business Process Reengineering Factors driving value in BPR Integration – unify and harmonize their ES, data and processes with an organization’s unique environment, and use the systems to better connect organizational units and processes, as well as customers and suppliers Optimization – standardize most processes using best practices embodied in ES software, mold and shape processes to fit the unique or strategic needs of the business, and ensure that processes flow and fit with the systems themselves Information – organizations use information to transform work. In the context of an ES, organizations use information by transforming ES data into context-rich information and knowledge that supports the unique business analysis and decision-making needs of multiple work forces (Zuboff, 1988). Project Management Managing an ES project Understand the process of organizational change and its application to enterprise system development, implementation and operations Recognize the importance of project management and control in minimizing the risk factors associated with implementing Enterprise Systems How Good Are Your Decision-Making Skills? http://www.mindtools.com/pages/article/newTED_79.htm 20 Key components of a project structure Project Team to create a strong foundation to implement an ES that meets the business objectives on time and budget. Project Management Office (PMO) that ensures project teams work well together and address issues in a timely, open, and efficient manner. Project Manager able to: Address issues related to how the system works. Have good negotiation skills. How do we define a successful project? Work well with the teams. Be politically savvy to navigate through the implementation. What is required for successful ES Project Management? Commitment from company executives Take time to plan up front Ensure adequate training and change management Make sure to understand why you are implementing ES Focus on data migration early in the process Leverage the value of conference room pilots How do we define a Charting the course successful project? Clear communication about the project’s purpose and expected benefits to all employees, end-users and other concerned stakeholders. Source: Panorama Consulting Group ( 2010) 22 How to Project Manage ? A clear project plan and reporting structure will better ensure that the project receives the attention and accountability needed to be successful. The project owners, a project steering committee, and project executive must develop the hierarchy and determine responsibilities. Many businesses now have a project management organization within IT to provide the project management necessary for company projects. The functional, technical, and change management staff for the project will likely consist of existing staff from the business, new hires, and consultants. Source: Panorama Consulting Group ( 2010) Risk Management Consequences of an unsuccessful ES implementation Yardley (2002): Degrade business capability Degrade competitive advantage Increase operating costs Reduce revenue earnings Fail to meet critical business requirements Poor levels of user satisfaction Loss of staff Staff will not use the system properly Staff not involved in the change Software upgrade project at Deutsche Leads to Perceived Loss of control Post DHL Group forced the German mail and courier company to take a write-off An IBM study found that only 40% of IT projects meet of €345 million. schedule, budget, and quality goals (1) Software provider SAP says that it's not to blame. KPMG research from 2015 found that barely a third of the SOURCE: IT spend for an organization delivers the desired results http://www.computerworld.com/article/30 10496/enterprise-applications/sap-dont- Figures from 2016 estimate that the cost of failed IT blame-us-for-dhls-logistics-woes.html? projects are as high as $9 Trillion worldwide 1) http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03100- usen-03-making-change-work.pdf Causes of failures in large scale projects identified by IT executives (http://lattapartners.com/why-are-it-projects-so-scary/ ) SOURCE: http://www.mckinsey.com/insights/bu siness_technology/delivering_large- scale_it_projects_on_time_on_budget_ and_on_value End users comments about ERP implementations “We were always putting out fires (Change Management issues) instead of being proactive.” “If this project fails, it will be due to cultural, not technical problems.” The pace of change has increased considerably - particularly with the “Politics caused big problems: important client leadership advent of the Internet and the rapid wasn’t really behind the project.” deployment of new technologies, new “No one asked us. We would have stopped the project.” ways of doing business and new ways of conducting one's life – many people “We need time to get work arounds organised” cant keep up “This will be a $40 million piece of equipment that’ll sit on peoples’ desks as they won’t have the skills to get started” “I’ve heard the system is a piece of junk”. “See I told you the system doesn’t work. The inventory figures don’t match the inventory on te shelves” Project Risks arise from ….. Nature of the technology used (‘cutting edge’, or ‘established’) Size of the organisation Number of stakeholders and their experience/ understanding and stability Complexity of the project Experience (or inexperience) of project team (including PM) Size of the project team Risks should be “owned” by the Skill of the project team project and stakeholders by acceptance of the business case at Effects of other projects the selection process Other commitments on the project team Risk management requires support and communication between Level of management support stakeholders Ignoring CSFs Risk management Project Standards New Risk Management standard AS/NZS AS/NZS ISO 31000:2009 ISO 31000:2009 Risk Management Principles and Guidelines http://www.finance.gov.au/sites/default/files/COV_216905 _Risk_Management_Fact_Sheet_FA3_23082010_0.pdf International Organisation for Standardisation, ISO Guide 73:2009, Risk Management-Vocabulary, First Edition, 2009 EXAMPLE: An introduction to Risk https://www.youtube.com/ watch?v=oo5mDD9zseI Risk Management (probability of (consequences Project risks = event occurring) X of the event) Risk is a combination of the probability of a negative event occurring and its consequences A risk needs to be measurable TERMINOLOGY: A risk needs to be identifiable Issue: A threat that has occurred. In a project a risk may be identified as: Residual risk: The risk that remains after risk responses have Lack of skilled consultant in Logistics been implemented. Implementation guidelines not clearly Risk Appetite: The degree of uncertainty that an organization or communicated individual is willing to accept in anticipation of a reward. How do you deal with these issues? Risk Category: A group of potential causes of a risk. Risk Enhancement: A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity. Risks and Risk Management RISK: ‘the effect of uncertainty on objectives’ (AS/NZS ISO 31000:2009) Definition of risk has changed : From: ‘the chance of something happening that will have an impact on objectives’ To: ‘the effect of uncertainty on objectives’. While risk managers will continue to consider the possibility of risks occurring, they should now apply risk treatment options to ensure that the uncertainty of their agency meeting its objectives will be avoided, reduced, removed or modified and/or retained. Generically, a risk is “the possibility of loss or injury” In an IT project a risk is any event that may jeopardise satisfying the objectives of the project For IT projects, risk management can provide opportunities for a better understanding of the project Risks need to be identified and managed Risk management should be ongoing and pro-active  Risk Management: Processes and Outputs Planning Process 1: Plan Risk Management Outputs: Risk management plan Process 2: Identify Risks Outputs: Risk register Process 3: Perform Qualitative Risk Analysis Outputs: Updates to existing documents (risk register, assumptions log) Process 4: Perform Quantitative Risk Analysis Outputs: Updates to existing documents (risk register, assumptions log) Process 5: Plan Risk Response Outputs: Updates to existing risk register and project plan documents (Schedule, cost, quality etc) Monitoring and Controlling Process: Control Risks Outputs: Work perf. info.; change requests; Plan updates; Project Start Project Finish PROCESS 1: Risk Assessment I cant use all these different techniques?? What method should I use?? How do you identify appropriate project risks? 1. Analogy approach 2. Brainstorming Think about the project!! Size, 3. Delphi Technique complexity etc 4. Interviewing 5. SWOT analysis 1. Analogy approach Obtaining information from past similar projects Obtaining the experience of team members who have conducted similar projects Look to studies where risks have been identified Implementing an enterprise system: see critical success/risk factor literature GRAPHIC: https://www.ask-flip.com/method/20 2. Brainstorming Brainstorming ideas about the types of risk that may occur Various ways to do this: In a group generated verbally and someone write up on a flipchart or butchers paper Each person writes down a range of risks they think are likely on stickers Stickers are put up on a whiteboard and voted on the ones most likely – take the others off the board and then prioritise those that are left This begins the risk register 3. Delphi Technique A facilitator distributes a questionnaire to experts Responses are summarized (anonymously) & recirculated among the experts for comments. Technique is used to achieve a consensus of experts and helps to receive unbiased data, ensuring that no one person will have undue influence on the outcome 4. Interviews Project leader and other project members meet with stakeholders impacted by the project and ask them to share their challenges, issues, with regard to the project Pro Interviewees can provide information on the likely impact of the risk Con Interviewers need to have excellent interview skills to draw out the issues 5. SWOT Analysis (strengths, weaknesses, opportunities and threats) SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project. Once you specify the objective of the project you then identify the internal and external factors that are favourable and unfavourable to achieve that objective. PROCESS 2: Establish a Risk Register / Matrix PROCESS 3: Understand the impact on major project objectives PROCESS 4: Establish probability of occurrence and impact Constructing a risk assessment: https://www.youtube.com/watch?v=cjaSUBfv1NU (6.33 mins) PROCESS 5: Using 4 Risk response categories … Risk response planning is the process of developing options and determining actions to reduce threats (risks) to a project’s objectives: Four risk categories… 1. Risk avoidance Elimination of a specific threat or risk Usually done through eliminating the cause of the risk Usually high risk high impact risks 2. Risk mitigation Reduce the impact of a risk event by reducing the probability of its occurrence Use prototyping and agile product development methodologies 3. Risk acceptance Accept the consequences of a risk without trying to control it - 4. Risk transference Shifting the responsibility for the risk to a third party PROCESS 5: Establish the response to the Risk based on probability vs consequence … PROCESS 5: Recognising the cost of fixing project risks Money invested in reducing risk in early stages of project is money well invested Any risks incurred during project have to be diagnosed, and fixed. Using risk control as an iterative process will help manage major risks and thereby cut cost blowouts PROCESS 5: And put in place the necessary Risk Control Responses to the risks are planned: i.e. risk avoidance, risk acceptance Risk control is conducted for all risks categorised as high risk high consequence: avoid the risk occurring Medium risks are analysed separately Risk owners should be assigned to major risks for monitoring This should be an iterative process PROCESS 5: Update the Risk Register Thereafter, Risks need to be monitored Actively seek to monitor the risk to reduce and mitigate the potential impact of the risk The controls and monitoring strategies are included in the risk register Monitor risk Develop action plans Set up warning systems Report on status of risk Develop contingency plans Risk Monitoring is an ongoing and iterative process. It involves overseeing the effectiveness of: risk controls and ensuring risk control processes are followed. monitoring residual risks, identifying and documenting new risks, This is done through the monitoring and Controlling Process Group Top 10 Risk Item Tracking - iterative Monthly Ranking Risk Item This Last Number Risk Resolution of Months Progress Month Month Inadequate 1 2 4 Working on revising the planning entire project plan Poor definition 2 3 3 Holding meetings with of scope project customer and sponsor to clarify scope Absence of 3 1 2 Just assigned a new leadership project manager to lead the project after old one quit Poor cost 4 4 3 Revising cost estimates estimates Poor time 5 5 3 Revising schedule estimates estimates Item tracking is a tool for maintaining awareness of risk throughout life of a project Establish a periodic review of the top 10 project risk items List the current and previous ranking, number of times the risk appears on the list over time, and a summary of progress made in resolving the risk item  What looks good in risk management ? Unlike crisis management, good project risk management often goes unnoticed Well-run projects appear to be almost effortless Would you consider the Grand Prix, Tour de France, US Open, Australian Open to be well run? Risky Sports: Does enjoyment outweigh the risks? The best wingsuit gliding ever captured https://www.youtube.com/watch?v=f56QRCwpBYI (10.48) https://www.youtube.com/watch?v=5N9t5qOSzCU 10 Critical ERP Upgrade mistakes 1. Not explaining what a new system means to users before starting the project 2. Not load testing the system with scripts and end users 3. Not preforming a mock Go Live - you will run into issues that you never planned for, facing questions such as: Do I have access to everything on a weekend? Will we run into backups or maintenance windows? Is the office open and is the AC on? 4. Not taking change management and testing seriously 5. Assigning an internal resource as the only project manager 6. Not communicating changes before they happen 7. Delivering Training 1.0 in a training 2.0 world. This on-demand training reinforces what was taught in the classroom. It also allows the users to “get help” 24/7/365. 8. Not moving proprietary components to open business standards 9. Not addressing security and archiving before upgrading 10. Assuming internal tech people can pick up 15 years of experience in a couple of weeks The ES implementation challenge Enterprise Systems provide Data Standardisation Process Standardisation Technical Standardisation Need to align business processes and Enterprise Systems Making decision between custom and vanilla implementation Business Process Improvement (BPI) Business Process Re-engineering (BPR) Managing change is key part of implementing ES Understanding the range of relationships in business Acknowledging normal human second order change IMAGE: Using a change model to reduce change risk https://www.indiamart.com/proddetail/erp- management-software-12454160348.html  Introduction to SAP S4/HANA & SAP Fiori © ©©© 2022 2016 SAP SAP UCC UCC München. München. All All rights rights reserved. reserved. 1  Agenda  Why SAP Enterprise Systems ?  Introduction to SAP S4/HANA  Basic concepts of HANA and in-memory databases  SAP Fiori user interface  Analytics in SAP S4/ANA © © 2022 SAP UCC München. All rights reserved. 2  Why SAP ? © © 2022 SAP UCC München. All rights reserved. 3 © © 2022 SAP UCC München. All rights reserved. 4  What makes Enterprise Systems (ES) different ? © © 2022 SAP UCC München. All rights reserved. 5  ES take the many “siloed” business processes … © © 2022 SAP UCC München. All rights reserved. 6  … and integrates the underlying data for the user © © 2022 SAP UCC München. All rights reserved. 7  What is SAP S4/HANA ? SAP S/4HANA is an acronym for the 4th generation SAP Business on the in-memory database called HANA (High-performance ANalytic Appliance). The "next generation" of SAP business suite software because it replaces the previous version of SAP's business suite, SAP ECC (SAP Enterprise Central Component), the same way a new Android or Apple mobile device replaces the previous device versions. SAP S/4HANA is the digital core of an organization, meaning it is the financial system of record with the universal journal being the single source of truth. Designed with analytics, including predictive and forecasting capabilities. Data is collected from transactions and fed into analytical applications, such as SAP Analytics Cloud (SAC), that provides information to help customers make the right decisions across all lines of business. User experience is enhanced with the SAP Fiori user interface to provide a consistent and intuitive user experience, across any device, desktop and mobile apps. Core Data Services is an analytical layer that sits on top of the SAP HANA database to facilitate the retrieval and modelling of data in the analytical SAP Fiori apps. © © 2022 SAP UCC München. All rights reserved. 8  SAP S4/HANA is delivered in the cloud © © 2022 SAP UCC München. All rights reserved. 9  SAP HANA Hybrid Landscape PRIVATE CLOUD PUBLIC CLOUD © © 2022 SAP UCC München. All rights reserved. 10  Features of SAP HANA In-memory database with Analyze text, Develop applications multitenant and multi-tier streaming and other combining analytics storage capabilities data types in real time and transactions Facilitate system Protect data through Access data from any source administration reliable identity and (external and internal) with monitoring-tools access control Sources: © © 2022 SAP UCC München. All rights reserved. 11  In-Memory Appliance Development  Drivers Big data Predictive analytics Advanced analytics processing Self-service BI (Augmented BI)  Enabling hardware innovations High-capacity RAM Multi-core processor architectures Massive parallel scaling Massively parallel processing (MPP) Large symmetric multiprocessors (SMP) Sources: , © © 2022 SAP UCC München. All rights reserved. 12  Performance Bottleneck Comparison  Without high-capacity RAM  With high-capacity RAM Database stored on disk Data stored in-memory Bottleneck: Latency between disk and Bottleneck: Latency between CPU and RAM RAM Huge response time improvement Disk Disk RAM RAM CPU CPU Sources: © © 2022 SAP UCC München. All rights reserved. 13  Software Leveraging Hardware Innovations Besides the performance improvements by hardware, it also enables advances in software: Advanced partitioning and compression On-the-fly aggregations Drill-down to different levels of granularity Advanced compression Sources: © © 2022 SAP UCC München. All rights reserved. 14  Row and Column Store Columnar-based database models are organized in columns: optimized for high-performance read operations less performant, but still acceptable write operations Efficient data compression and indexing is applied to save memory and speed up searches and calculations Row store: Column store (abstract representation): Customer Country Customer Country 1300 DE 1300 DE 1400 DE 1400 DE Data 1500 DE 1500 DE Dictionary © © 2022 SAP UCC München. All rights reserved. 15  No Aggregated Tables Data is stored on the highest possible level of granularity (the level of greatest detail) Contrast to prevailing philosophy in most data warehouses that data should be stored on whatever level of granularity required by applications to ensure maximum performance. Aggregate anything Pre-aggregated data anytime „on-the-fly" © © 2022 SAP UCC München. All rights reserved. 16  Data types used in SAP S4/HANA © © 2022 SAP UCC München. All rights reserved. 17  Organisational Unit © © 2022 SAP UCC München. All rights reserved. 18  Master Data © © 2022 SAP UCC München. All rights reserved. 19  Transactional Data © © 2022 SAP UCC München. All rights reserved. 20  S4/HANA Documents © © 2022 SAP UCC München. All rights reserved. 21  SAP Fiori Design © © 2022 SAP UCC München. All rights reserved. 22  … provides users with role–relevant information © © 2022 SAP UCC München. All rights reserved. 23  Fiori has embedded analytics … © © 2022 SAP UCC München. All rights reserved. 24  … structured so users can “drill down” to detail © © 2022 SAP UCC München. All rights reserved. 25  … with a consistent User Experience (UX) © © 2022 SAP UCC München. All rights reserved. 26  Fiori UX has structured, flexible format © © 2022 SAP UCC München. All rights reserved. 27  … editable to suit user preferences © © 2022 SAP UCC München. All rights reserved. 28  … & appearance – why? Increases user adoption © © 2022 SAP UCC München. All rights reserved. 29  Search function for Apps, transactions & data © © 2022 SAP UCC München. All rights reserved. 30  Fiori brings all functions together in one menu © © 2022 SAP UCC München. All rights reserved. 31  Using SAP Fiori “Intelligence” … INTELLIGENT INSIGHT KPI TILES CARDS DETAILED TRANSACTION ANALYSIS SCREENS © © 2022 SAP UCC München. All rights reserved. 32  SAP S4/HANA is an Analytics Platform CONSUME BI | Reporting | Ad-hoc Analysis | OLAP | Planning | Unstructured Data Discovery | Predictive | Apps SAP HANA STREAM ANALYTICS PREDICTIVE TEXT SPACIAL COMPUTE PROCESSING ENGINE ENGINE ENGINE PROCESSING Sources: Image Replicat