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Provide the article’s citation information in APA style here Purpose (What are the objectives for writing the paper?): Design / Methodology / Approach (How are the objectives achieved? Include the main methods used for the research and the approach to the topic.): Main Points / Findings / Conclusions (What are the main points? What was found in the course of the work, and what are the major conclusions? This will refer to analysis, discussion, or results.): Implications to Practice and Knowledge (What outcomes and implications for practice and knowledge as well as applications and consequences are identified?): Critique (Which parts of the paper you like, and which parts of the paper you don’t like? Why?): International Journal of Computer and Communication Engineering, Vol. 1, No. 4, November 2012 Teaching Business Processes Integration with ERP In Enterprise Architecture/Systems Courses Ming Wang multidisciplinary scope of enterprise system concepts that requires internal cross-disciplinary coordination. To understand them, students must acquire the concept of business processes integration which is the theme in both operational and analytical systems of ERP. Business process is a list of related activities to produce an outcome. Business processes integration means multiple business processes are inter-related to each other. Fig. 1 illustrates the inter-relationship of the integrated business processes in ERP. Abstract—Information Systems (IS) education is being transformed from the development of applications towards implementation and configuration of the integrated enterprise-wide system software - Enterprise Resource Planning (ERP). Teaching business processes integration has become an important issue in IS education. To meet the challenge, the author presents a comprehensive approach to teach business processes integration with ERP. The paper emphasizes on teaching business processes integration with ERP as the whole process in the Enterprise Architecture and Enterprise Systems courses. SAP ERP is utilized as an ERP software tool for illustration purpose. Index Terms—Business processes, planning, ERP, IS curriculum, SAP. enterprise resource I. INTRODUCTION The wide spread of Enterprise Resource Planning (ERP) technology has made information systems (IS) education shift its focus from applications development to business processes integration. In order to catch the industrial trend, IS educators have made significant changes on IS cores and elective courses in the Information Systems (IS) 2010 Curriculum Guidelines [1]. The Application Development course is no longer included in the core of the IS 2010 Curriculum. Instead, the Enterprise Architecture course has become as a new core and the Enterprise Systems course is recommended as an elective course. To meet the challenge, the author proposes a comprehensive approach of teaching the Enterprise Architecture course and Enterprise Systems course with emphasis on business processes integration based on her years of ERP research and teaching experiences. The paper specifies the course topics, objectives and corresponding ERP hands-on activities and also presents a framework which can be used by students to learn business processes integration. The paper is intended to serve as useful teaching resources for those information systems (IS) educators who are interested in teaching business processes integration using ERP in the two courses. The remaining paper is organized into five sections: 1) ERP Business Processes Integration, 2) ERP Data Integration, 3) Enterprise Architecture Course, 4) Enterprise System Course, and 5) Conclusion. Fig. 1. Business processes integration [2] III. ERP DATA INTEGRATION ERP has the centralized data repository that integrates all the business processes in the enterprise. This section specifies how the organization data shared across different business processes in the enterprise system. Fig. 2 shows how master data occur in major business processes in the value chain. Materials Management Production Planning Warehouse Management Sales & Distribution Customer data Vendor data x Material data x x x x x x x x x Fig. 2. Master data shared in business processes Four types of data in the ERP system are organizational data, master data, situational data and transaction data. • Organizational data are used to represent the structure of an enterprise include client, company, plant and business area data. • Master data represent entities associated with the business processes such as buying materials from vendors and selling materials to customers. Master data are referenced more frequently than others across ERP systems in both operational systems and analytical systems. II. BUSINESS PROCESSES INTEGRATION An ERP system is large and complex and learning curve is steep. Unlike other computer applications, ERP includes the Manuscript received July 22, 2012; revised September 2, 2012. Ming Wang is with the Department of Information Systems, California State University, Los Angeles (e-mail: ming.wang@calstatela.edu). 354 International Journal of Computer and Communication Engineering, Vol. 1, No. 4, November 2012 A. Organization Structure Th he organizatioonal diagram represents thee organizationnal struccture implem mented withinn the ERP P System. The T orgaanizational eleements are thhe same whetther the ER RP Systeem is being implemented i for manufactu uring or serviice relatted industry. The T enterprisee structure can n be representted by an n organizationnal diagram inn Fig. 5, whicch is a model of the relationships r a among variouss ERP system m organizationnal elem ments. • Situationall data are speccific to where and when thee task being execcuted. • Transactionn data are com mbination of organizational o data, master dataa and situationnal data. Transaction data reeflect the consequuences of process executionn. Transactionn data include daates, quantities, prices paym ment and dellivery terms. ws the relationnship betweenn transaction data, Fig. 3 show orrganizational data, master data d and situaational data ass well ass transaction documents d andd post transacttion documennts. Maste er Data Org . Data D Situa ational Data Customer Vendo or Material Client Comp. Code C Plant Who o Whe en Whe ere Transaction Data Dates s Quantities Prices Payment Delivery Terms T Tra ansaction Doc cuments : In nvoices Purch hase orders Pac cking lists After transac ction Document ts : Financial ng accountin Controllin ng Fig. 5. Organizaation diagram. B. Infrastructurre and Compoonents Infrastructure I consists of aapplication modules m that are a acco omplished viaa a very com mprehensive set of busineess process procedurees (BPPs). M Major business processes are a posed of appllication moduules. The appllication modules comp in Fiigure 6 are orgganized into thhe following four f categoriees. • The financiall managementt application modules m incluude Financial Acccounting (FII), Controllin ng (CO), Fixxed Asset Manageement (AM) aand Project Sy ystem (PS). m includde Sales & Diistribution (SD D), • The logistic modules Material Mannagement (MM M), Production n Planning (PP P), Quality Mannagement (QM M) and Plan nt Maintenannce (PM). HR) module supports s hum man • The Human Resources (H capital managgement (HCM M), payroll an nd the planniing and control off personnel acctivities. WF) and Indusstry Solutions (IS) are know wn • Workflow (W as the Comm mon Systems. The remaining modules are a known as primary p appllication mod dules, and WF W integrates the functionality of these appliication modules. Fig. 3. ERP daata integration [2]. Transaction documents record transactiion data durinng the traansaction as the process is being execcuted. Transaaction doocuments are purchase ordeers for vendorrs, packing lissts for shhipping and innvoices. Posst transaction documents reecord daata after the prrocess is finishhed. Post trannsaction docum ments innclude financiial account (F FI) document, controlling (CO) doocument and material docuuments. FI annd CO docum ments reecord the finnancial impacct of processs steps. Acccount reeceivable docuuments are creeated after thee company recceives thhe payment froom the custom mer. Materialss documents reecord m material movem ment from a veendor to a cusstomer. IV V. ENTERPRIISE ARCHITECTTURE The Enterpriise Architecturre course focuuses on concepts at a higher levell of IT Infraastructure absstraction [1]. This Ennterprise Archhitecture coursse explores the design, selecction, im mplementationn and manageement of enterrprise architeccture. ER RP software can help stuudents visuallize the enterrprise innfrastructure, organizationaal structure annd understandd the buusiness proceesses integratiion of enterpprise systems with innter-organizatiional partners such as suppliiers and custom mers. Thhis section specifies s how w to teach business b proccesses inntegration in the Enterprisse Architectuure course. Fig. F 4 illlustrates topiccs, objectives and activities of the enterrprise arrchitecture couurse. IS Core C 2010.3 Topiccs Enterprisse Architecture Enterprise organization structure Enterprise infrastructuree Enterprise data integrattion Enterprise business proocesses integration Fig. 6. BPP Ps Shared across application modu ules [3]. Eaach applicatioon module is a collection of a number of relatted business process p proceddures (BPPs), as illustratedd in Fig. 6. BPPs are the t smallest program units that provide the t a functionality of thhe ERP Systtem. Many off these BPPs are d by more thann one of the aapplication mo odules. Busineess used processes found in the organnization are built b with theese appliication modulles and BPPs. Objectives Students are able a to: Undertand entterprise organization struccture Undertand entterprise infrastructure Undertand entterprise data integration Integrate businness processes A Activities Exploring Enteerprise infrastructure Nevigating ER RP systems Implementing business processes Fig. 4. Enterprisse architecture couurse 355 International Journal of Computer and Communication Engineering, Vol. 1, No. 4, November 2012 integ gration in ER RP re-engineeering and con nfiguration. The T focu us is to teachh students too transforms ERP busineess procedures to orgaanization widde requirementts. Based on the t n business requirements, students will w reengineeer given busin ness processees and configgure a simplee and workabble integ grated enterpriise operationaal system. Students will creaate an en nterprise struccture, financiaal system and relevant master data using ER RP that dem monstrates thee integration of m several m modules, such h as accounnts inforrmation from receiivable, sales, manufacturinng production n, procuremeent, acco ount payable, and a general leedger. Fig. 8 illustrates courrse topiccs, objectivess and class activities of the Enterprise Systeems course. Each core buusiness processs consists of business appliccation modules. Entterprise softw m ware integratess the core bussiness prrocesses foundd in an organnization. The following f bussiness prrocesses can be b used to illlustrate the arrrangements of o the suupply chain management m prrocesses. • Manufactuuring Planningg and Executioon. • Procuremeent (purchasingg). management accounting a andd reporting • Financial/m S Order Management M (ssales) • Customer Sales Fig. 7. Application A modules and business processes p [3] Fig. 8. Enterprise systems. Fig. 7 showss FI and CO application a m modules occurrred in alll the listed buusiness processes. A. Business Proocess Reenginneering (BPR)) Bu usiness Process Reengineerring (BPR) is the analysis and a desig gn of workfloows and proceesses within an a organizatioon. Re-eengineering is the basis for many recent developments d s in manaagement. Thee cross-functional team, fo or example, has h beco ome popular because of the desire to re-en ngineer separaate functional tasks into i completee cross-functiional processes. o, many reccent manageement inform mation system ms Also deveelopments aim m to integratee a wide num mber of busineess processes. Businness Process Reengineerring transform ms d more effectiive orgaanization operrations to entiirely new and busin ness processes. BPR is usuually utilized in the Blueprrint Phasse of ERP Im mplementationn Methodolog gy. BPR is allso know wn as Business Processs Redesign n or Busineess Tran nsformation. There T are num merous BPR appproaches and d they each difffer acco ording to the magnitude off the change and the channge efforrt involved. Selecting S the right model to t teach BPR R is thus a difficult taask. We adoppted the modeel developed by t course. Thhis BPR modeel consists of six s Guhaa et.al. [5] in the phasses: 1) Envisioon new proceesses, 2) Initiaating change, 3) process diagnosis,, 4) process reedesign, 5) recconstruction, and a 6) prrocess monitoring. C. ERPSIM Simulation Gaames The ERPSIIM simulatioon game [4] [ provides the ennvironment for f students to experiennce an integgrated ennterprise systeem. Students are a divided too teams. Each team opperates a makke-to-stock maanufacturing plant p that inteeracts w the suppliiers and custoomers by sendding and receeiving with orrders, deliveriing their prodducts and com mpleting the whole w caash-to-cash cyycle. Students get the oppportunity to make strrategic decisioons for recipe (product desiign), sale forecasts, prroduction impprovements, prroduction releease. At the end of the game, raaw materials and a finished goods g innventory will be b sold out at a reduced pricce. Team mem mbers m renegotiate their bank loan may l with the bank at the end of eaach quarter. Interest I is caalculated quarrterly and wiill be chharged automaatically at the end of a quaarter. Customeers do noot change throoughout the game, hence you may learn from paast their behaaviour. The company c (teaam) displayingg the hiighest equity value (sharehholder capital)) at the end of o the sim mulation winss the game. As a make-too-stock manuffacturing comppany, there aree four off processes thaat must be perrformed (i) thee planning proocess, (iii) the procurem ment process, (iii) the produuction processs, and (ivv) the sales prrocess. Each process p can be decomposedd into traansactions. To T complete the four opeerational proccesses m mentioned above, a total off fourteen traansactions muust be peerformed. Moost of the transactions t i involved in these prrocesses are operational in nature, succh as to purcchase m materials or to deliver d finisheed products. B. ERP Implem mentation Methhodology Accelerated SA AP (ASAP) is a System Deevelopment Life L c to guiide Cyclle (SDLC) meethodology thhat has been created the rapid r implemeentation of thee ERP Enterprrise System. The T Solu ution Managerr is the SAP plaatform that deelivers the ASA AP meth hodology. It is a computer systems anallysis and desiign meth hodology andd tools provvided by SAP S AG. Thhis meth hodology seekks to standarddize and expeedite the typiccal ERP P implementattion. It has pproven to be effective whhen impllementing thee SAP ERP soolution acrosss industries and a diffeerent customerr environmentts. In practice,, ASAP makess it easieer to assign consulting c tassks among diifferent projects effecctively and to provide an inncreased levell of consistenccy. MS V. ENTERPPRISE SYSTEM The Enterprrise Systems course is reccommended by b IS e coursse for 20012 Curriculuum Guidelines [1] as an elective teeaching techniical ERP impplementation and configuraation. Thhis section describes d how w to teach business b proccesses 356 International Journal of Computer and Communication Engineering, Vol. 1, No. 4, November 2012 Fig. 9 illustrates the SAP Implementation Methodology Road Map [3]. contribution of the paper is to provide IS educators a comprehensive approach and a new BPI learning framework for teaching business processes integration with ERP in the Enterprise architecture and Enterprise systems courses recommended in IS 2010 curriculum. The goal is to teach students to understand business-centric information system and be able to implement and configure business processes. Project Preparation Business Blueprint Realization Final Preparation Go Live & Support Fig. 9. SAP implementation methodology phases. • • • • • Project Preparation defines the project’s scope and organizes the team, the vendors and hardware. Business Blueprint defines the business process requirements and discusses configuration and data migration. Realization configures the system, writes middleware interfaces and develops ABAP code. Final Preparation includes testing and training. Go Live begins using the system. Fig. 10. BPI learning framework. C. SAP Configuration ASAP Roadmap and Solution Manager drive ERP configuration. The completed reference model is known as the Enterprise Model when the configuration activities have matched the business requirements to the processing available in the Reference Structure. The Implementation Guide (IMG) is a SAP system tool for actually making the settings that configure the R/3 System to meet a company’s requirements. The SAP IMG is an integral part of the R/3 System that is used in the configuration of the R/3 System. About 80 percent of a typical SAP system installation is handled by the IMG configuration setting. Another 10 percent are enhancement of ABAP tools and appended structure, while 10 percent are customer developed via ABAP tools. A Project IMG is a subset of the Reference IMG that contains the documentation for selected IMG components that are implemented as part of the specific configuration project. The Project IMG facilitates the establishment of the organization arrangement during a company’s configuration by using SAP IMG [6]. The paper intentionally does not specify any ERP software in most context of the paper. Institutions have to make the decision of whether and how to provide students with hands-on use experience with actual ERP software such SAP, JD Edwards, Oracle, PeopleSoft, SSA Global and Microsoft Dynamics (Axapta, Great Plains and Solomon) etc. Enterprise system software is in place in a majority of large organizations and increasing in use in small and medium-sized organizations. ACKNOWLEDGEMENTS The author would like to thank Professor Hayen, Magal, Monk, Wagner and Word for their SAP ERP textbooks. We are also grateful to the SAP University Alliance Program for providing us SAP software, server hosting and high quality SAP laboratory materials. REFERENCES [1] VI. SUMMARY The proposed ERP business processes integration (BPI) learning framework shown in Figure 10 summarizes the important BPI components students supposed to learn from the Enterprise architecture and enterprise Systems courses. It is a good tool to use for teaching business processes integration with ERP in Enterprise Architecture/Systems Courses. Filling out the form can be the benchmark to measure whether students have grasped the six major business processes in the ERP operational system. Students need to this framework in their mind through both courses. ERP systems, by their multi-dimensional integrative nature, offer the depth of functionality and breadth of integration to demonstrate how global operations of organizations are managed. The learning curve is steep. The [2] [3] [4] [5] [6] H. Topi, J. Valacich, S. Wright, and T. Ryan, IS 2010 Curriculum Guidelines for Undergraduate Degree Programs in Information Systems, Association for Computing Machinery (ACM) and Association for Information Systems (AIS). Retrieved from the web site. [Online]. Available: http://www.acm.org/education/curricula/IS%202010%20ACM%20fin al.pdf S. Magal and J. Word, Integrated Processes with ERP Systems, Wiley, 2011. R. Hayen, SAP R/3 Enterprise Software: an Introduction, McGraw-Hill, 2007. ERPsim 2012 Web Site. [Online]. Available: http://erpsim.hec.ca/ S. Guha, W. J. Kettinger, and T. C. Teng, “Business process reengineering: building a comprehensive methodology,” Information Systems Management, Summer, 1993. D. Monk and B. Wagner, “Concepts in enterprise resource planning,” 4th Edition, Course Technology, 2013. Dr. Ming Wang is a professor of Information Systems, California State University, Los Angeles. She is SAP faculty Coordinator, At Cal State LA. She received her Ph. D. from Southern Illinois University in 1993 and taught previously in the Department of Computer Science at Embry-Riddle Aeronautical University, in Daytona Beach, Florida. 357
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