IT Market Needs

AIT has targeted two different market needs for business

owners/managers:

       1.  Temporary Technical Aid:

·         Short term assignments finding quick solutions for businesses:

• Network outages, upgrades, manintenance, etc.
• Web & software security issues.
• Install new equipment, etc.
  

        2.  Software specialty:

·         System setup & purchasing guidance

·         Systems reengineering/optimization

·         Network Admin

·         Training

·         Repair

·         Database/Application development

·         Data Storage

·         Disaster Recovery

·         Security/Data Protection

·         Telecommunications

EXCERPTS on SOA MARKET (From around the web)

Service-oriented architecture (SOA) is a methodology for systems development and integration where functionality is grouped around business processes and packaged as interoperable services. SOA also describes IT infrastructure which allows different applications to exchange data with one another as they participate in business processes.

The aim is a loose coupling of services with operating systems, programming languages and other technologies which underlie applications:

[1] SOA separates functions into distinct units, or services

[2], which are made accessible over a network in order that they can be combined and reused in the production of business applications.

[3] These services communicate with each other by passing data from one service to another, or by coordinating an activity between two or more services.

SOA concepts are often seen as built upon, and evolving from older concepts of distributed computing[3][2] and modular programming.

SOA establishes an architectural model

SOA establishes an architectural model that aims to enhance the efficiency, agility, and productivity of an enterprise by positioning services as the primary means through which solution logic is represented in support of the realization of the strategic goals associated with service-oriented computing.

The actual face of a deployed service-oriented architecture is unique within each enterprise; however it is typified by the introduction of new technologies and platforms that specifically support the creation, execution, and evolution of service-oriented solutions. As a result, building a technology architecture around the service-oriented architectural model establishes an environment suitable for solution logic that has been designed in compliance with service-orientation design principles.

Realizing value by making SOA environments operational

Managing an SOA environment involves all the same disciplines as managing traditional IT environments—for example, application monitoring, security, event management, problem and bottleneck isolation, performance management, configuration and change management, and service level agreement (SLA) measurement and reporting. However these activities must be reoriented to include services as key objects to be managed. With SOA-based projects, it is vital to view these services as top-priority managed resources and to recognize their relationships to business processes as well as to the underlying components and systems that support them.

REALITY

The IT infrastructure of a large organization, which has been around for some time and accumulated a bunch of legacy systems often has at least the following characteristics:

• Islands of functionality - The IT infrastructure is composed of systems, some of which work independently, are not connected to common repositories, and which contain redundant information. Examples include local databases, ERP systems, specialized tools, even spread sheets.

• Not service oriented - Depending on the system, it may be able to expose data or functionality through well-defined protocols, but this is often not the case. To integrate, you may have to write to files in proprietary formats, pump SQL through ODBC connections, open sockets and the like. And if you are really unlucky, the legacy system is sealed tight, integration-proof.

• Heterogeneous - Systems were built over a stretch of time on different platforms, in different programming languages by different companies.

• Not supportable - Once upon a time there was a programming language called COBOL. Unfortunately most of those who knew it are no longer among us, and the COBOL source for the system is only available on some obscure storage media for which there are no longer any functional drives …

• Centralized Control - The IT department is typically in charge of running all the systems and hence it is easier to introduce supporting components like an Enterprise Services Bus (ESB) to the system.

The inter-organizational SOA is very different from the organizational one:

• Service-Oriented - Most likely the services that are exposed to other businesses were provided with service-orientation in mind.

• Homogenous - Web Services more often than not provide the plumbing for this kind of SOA and businesses are standardizing on this technology.

• Supportable - If services can be published, chances are each organization is also capable of publishing new services, or alter existing ones (based on some contract).

• Decentralized control - Businesses are autonomous entities that require contracts to cooperate. While one organization in such a SOA may take on the role as registry, service-police, etc. it is much more cumbersome to establish this inter-organizational infrastructure than it is for a local IT department to make decisions for all systems in the organizational SOA.

Enterprise Resource Planning Market

What is Enterprise Resource Planning

Enterprise Resource Planning systems (ERPs) integrate all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.

The term ERP originally implied systems designed to plan the use of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter: Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems.

Need for ERP

Most organizations across the world have realized that in a rapidly changing environment, it is impossible to create and maintain a custom designed software package which will cater to all their requirements and also be completely up-to-date. Realizing the needs of end user organizations leading/innovative software solution providers have designed Enterprise Resource Planning software which offers an integrated software solution to all the functions of an organization.

The ERP solutions seek to streamline and integrate operation processes and information flows in a company to synergize the resources of the organization, namely the 5Ms: men, material, money, machine, and minutes through information.

Initially implementation of an ERP package was possible only for very large corporations/companies due to high cost involved. Today many companies are implementing ERP and it is expected in the near future that 60% of SMB will be implementing an ERP solution since this will become a must for gaining competitive advantage.

Since business needs are very complex in nature, the implementation of an ERP solution needs Consultants with functional skills for evaluation, Business Process Re-engineering (BPR), mapping of business requirements, report designing, ensuring business controls, customization of the package for the specific requirements, documentation etc.

Benefits of ERP

The benefits accruing to any business enterprise on account of implementing are unlimited. According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore, Sun Microsystems, following are some of the benefits they achieved by implementing ERP packages:

• Improved Cost Control

• Enables quick response to changes in the business operating and market environments.

• Helps to achieve competitive advantage by improving a business processes.

• Improves information access and management throughout the enterprise.

• Reduce paper documents by providing on-line formats for quickly entering and retrieving information.

• Improves timeliness of information by permitting/posting daily instead of monthly.

• Greater accuracy of information with detailed content, better presentation, fully satisfactory for the Auditors.

• Faster response and follow up to customer needs.

• More efficient cash collection, say, material reduction in delay in payments by customers.

• Better monitoring and quicker resolution of queries.

• Improves supply-demand linkage with remote locations and branches in different countries.

• Provides a unified customer database usable by all applications.

• Improves International operations by supporting a variety of tax structures, invoicing schemes, multiple currencies, multiple period accounting and languages.

• Gives Accounts Payable personnel increased control of invoicing and payment processing and thereby boosting their productivity and eliminating their reliance on computer personnel for these operations.

Evolution of ERP

In the ever growing business environment the following demands are placed on the industry:

• Aggressive Cost control initiatives

• Need to analyze costs / revenues on a product or customer basis

• Flexibility to respond to changing business requirements

• More informed management decision making

• Changes in ways of doing business

Difficulty in getting accurate data, timely information and improper interface of the complex natured of business functions have been identified as the hurdles in the growth of any business. Time and again depending upon the velocity of a growing business needs, one or more applications and planning systems have been introduced as viable solutions for the business for helping it cross these hurdles and achieve planned growth. They are:

• Management Information Systems (MIS)

• Integrated Information Systems (IIS)

• Executive Information Systems (EIS)

• Corporate Information Systems (CIS)

• Enterprise Wide Systems (EWS)

• Material Resource Planning (MRP)

• Manufacturing Resource Planning (MRP II)

• Money Resource Planning (MRP III)

The latest planning tool added to the above list is Enterprise Resource Planning (ERP).

Features of ERP

Some of the major features of ERP and what ERP can do for a business system are as follows:

• ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.,

• ERP performs core corporate activities and increases customer service and thereby augmenting the corporate Image.

• ERP bridges the information gap across the organization.

• ERP provides for complete integration of Systems not only across the departments in a company but also across the companies under the same management.

• ERP is the only solution for better Project Management.

• ERP allows automatic introduction of latest technologies like Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-Commerce etc.

• ERP eliminates the most of the business problems like Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery etc.,

• ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.

• ERP provides business intelligence tools like: 

• Decision Support Systems (DSS),

• Executive Information System (EIS),

• Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes

Components of ERP

To enable the easy handling of the system the ERP has been divided into the following Core subsystems:

• Sales and Marketing

• Master Scheduling

• Material Requirement Planning

• Capacity Requirement Planning

• Bill of Materials

• Purchasing

• Shop floor control

• Accounts Payable/Receivable

• Logistics

• Asset Management

• Financial Accounting

BPR and ERP

Business Process Re-engineering (BPR) is a prerequisite for investing in a ERP solution. An in depth BPR study has to be done before implementing an ERP system. Business Process Re-engineering uncovers deficiencies and exposes weaknesses of the existing system and attempts to maximize productivity through restructuring and re-organizing human resources as well as divisions and departments in the organization.

Business Process Engineering (BPE) evolves the following Steps:

• Study the current system

• Design and develop new systems

• Define Process, organization structure and procedure

• Develop customize the software

• Train people

• Implement new system

The guiding principle for BPR is definable as Understand, Simplify, and Automate:

Understanding the existing practices, Simplifying the Processes and Automate the Process. 

Various tools used for this principle are charted below:

• Understand Simplify Automate

• Diagramming Eliminating EDI

• Story-boarding Combining ERP

• Brain storming Rearranging

Selection of ERP

Once the BPR is completed the next task is to evaluate and select a suitable package for implementation. Evaluation of the right ERP package is considered as more crucial step. Evaluation and selection involves:

• checking whether all functional aspects of the Business are duly covered

• checking whether all the business functions and processes are fully integrated

• checking whether all the latest IT trends are covered

• checking whether the vendor has customizing and implementing capabilities

• checking whether the business can absorb the cost

• checking whether the ROI is optimum

Implementation of ERP

Implementing an ERP package has to be done in a phased manner. Step by step method of implementing will yield a better result than turn-key introduction. The total time required for successfully implementing an ERP package is estimated between 18 and 24 months.

The normal steps involved in implementation of an ERP are as below:

• Project Planning

• Business & Operational analysis including Gap analysis

• Business Process Re-engineering

• Installation and configuration

• Project team training

• Business Requirement mapping

• Module configuration

• System interfaces

• Data conversion

• Custom Documentation

• End user training

• Acceptance testing

• Post implementation/Audit support

 The above steps are grouped and sub-divided into four major phases namely:

1) Detailed discussions,

2) Design & Customization,

3) Implementation and

4) Production.

The phases of implementation and their adjacent tasks and respective deliverables are as below:

Detailed Discussion Phase:
Task - Project initialization, evaluation of current processes, business practices, Set-up project organization.

Deliverables: Accepted norms and Conditions, Project Organization chart, Identity work teams.

Design and customization Phase:
Task - Map organization, map business process, define functions and processes, ERP software configuration and build ERP system modifications. 

Deliverables: Organization structure, design specification, process flow diagrams, Function Model, configuration recording and system modification.

Implementation Phase:
Task: Create go-live plan and documentation, Integrate applications, Test the ERP customization, Train users.

Deliverables: Testing environment report, customization test report and implementation report.

Production Phase:
Task: Run trial Production, maintain systems.

Deliverables: reconciliation reports, conversion plan execution.

Conclusion

The growing information needs of an enterprise make it imperative to improve or replace old systems to maintain or gain competitive advantage.

Implementation of ERP solutions is one of the largest drivers of growth in the IT consultancy arena. The introduction of such a large and complex software like ERP, which enables an organization to integrate its' manufacturing, finance and marketing operations at all levels, is in itself a challenge, since it calls for technical and functional skills and a change in user mindsets.