06 G.vedrickas Implementation of ERP System

8/12/2019 06 G.vedrickas Implementation of ERP System

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03/10/2006

Implementation of theAdaptive ERP System

Gediminas VedrickasPrincipal Consultant / Research & Innovation


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Agenda Overview of ERP Systems

o What is ERP?

o Disadvantages of current ERP systems

o Requirements for ERP Systems

Framework for the Adaptive Enterprise Engineering

Business Process Definitiono Semantics of Business Process

o Semantics of Business Ruleo Weaving Business Rules to Business Processes

Business Process Automationo Mapping Business Processes to Application Components

o Application Component Framework (ACF)

Case Study from Customs Domaino Import Declaration Assessment Business Process automationo ACF implementation based on SAP Workflow

Conclusions


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What is ERP? Enterprise Resource Planning (ERP) is an industry term for integrated, multi-

module application software packages that are designed to serve and supportmultiple business functions

ERP system can include software for manufacturing, order entry, accountsreceivable and payable, general ledger, purchasing, warehousing, transportationand human resources

Market leaders: SAP, Oracle Corporation, Microsoft


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Disadvantages of Current ERP Systems Main disadvantages of current ERP systems from our experience:

o Customizing process is very complex and time consuming activity that requires extensivesystem level knowledge

o Rules that govern system behaviour are encoded in system vendor-specific way (program

code, configuration tables, etc.)

o Interfaces of different application components, especially if these components own modularimplementations, have very poor (or not at all) documentation

o Application components of ERP system form integrated platform with code basedembedded business processes


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Disadvantages of Current ERP Systems (continued) Survey of 100 global or pan-European companies by PMP Research about ERP

system deployments

o 5% of those polled said they were using their ERP software to its full extent, 32% ofrespondents said large portions of their enterprise software was not used at all, and 41%said that a small portion of the software's functionality was left unexplored

o Most users customize the software, with only 12% installing ERP packages "out of the box

o More than 50% of companies said that once installed it was hard to make changes to ERPsoftware in order to meet any changes in business processes or requirements


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Business requirements (business analyst team perspective):o Highly adaptive ERP systems that allow to make changes reflecting up-to-date business

processes with less effort and in as possible shorter time

o Ability to influence systems behaviour by business workers themselves without codingo Ability to restore the behavioural system state at the specified point of time (i.e. ability to

restore business rules that were effective at that time)

o Ability to manage, track, verify and validate the business knowledge

Requirements for ERP Systems

Implementation requirements (functional team perspective)

o Ability to customize systems behaviour without codingo Ability to maximize the reuse of artefacts delivered during requirement analysis phase as

much as possible in the systems customizing phase

o Unified customizing environment across different application components

Implementation requirements (technical team perspective)

o Integrated development environment with full support of Open Standardso Unified methodology and program APIs for development of new highly configurable

Application Components or changing existing ones

o Support for RAD tools that speed up development process


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Framework for the Adaptive Enterprise Engineering


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Semantics of Business Process A Business Process is a repeatable set of activities taken to produce a result that

achieves a specific business purpose for one or more stakeholders*

Business Process Definition Metamodel**

0..1

-sub-process

0..*

-generates OR receives

11..*

Compensation

TaskProcess

Event Entity

-produces OR concumes

-identifies

0..1

Constrainable Rule

0..*0..*

Role Party

-performed by

0..*0..*

-performed by

0..10..*

Transaction

-compensating task0..1Worker Organi zat io n

Autom ated


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Semantics of Business Rule Business Rule is

o a statement that defines or constrains some aspect of the business. It is intended toassert business structure or to control or influence the behaviour of the business

(Business Rules ~ What Are They Really?, Business Rules Group)o an element of guidance that introduces an obligation or necessity (Semantics of

Business Vocabulary and Rules, OMG)

o a directive intended to influence or guide business behaviour (Ron Ross, Business RuleSolutions)

There are two types of Business Ruleso Structural (something true by definition)

It is necessary thatcurrency amountof eachtax liability is calculated in local currency

o Operative (obligation or prohibition)

It is obligatory that eachtax payerwhosubmitsanimport declaration holds anaccount


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Weaving Business Rules into Business Process


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Business Rules Integration Points

Notification event

State transition eventDecision point

Assertion point

emei

ejek

en

dpu apv

Transaction


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Mapping Business Process to Application

Components

Business

Process

Process

Task

Business

Activi ty

Operation

Business

Function

1 1..*

implements

0..1

0..*

0..*

0..*

0..1

*

1 1..*0..*

1

Business Model

System Model

interface

Appl ication

Service

interface

Enterprise

Service

implements

0..*

0..*

1 1..*

interface

Service

component

Appl ication

Component

0..1

0..*

{OR}

{Operation is part of

Enterprise Service}


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Application Component Framework

-

xAP1xDP1

xAP2

yAP1

yDP1

yDP2

HRS1 v.1

RS1 v.1

HRS2 v.1

RS3 v.1

HRS1 v.2

RS1 v.1

HRS2 v.2

RS3 v.1

HRS2 v.1

RS4 v.1

RS5 v.1

RS6 v.1

HRS2 v.2

RS4 v.1

RS5 v.2

RS6 v.2

Decision/Assertion points(place holders for

business rule sets)

Hierarchical BusinessRule Set Instances

Appl. Comp1

Appl. Comp2

HRS1 v.2 + context

HRS2 v.2 + contextRule ServiceComponent

JSR 94

Business RulesRepository

BusinessRules Engine

Actual Business Rule Set+ context

Application Component

Framework

Business Rules Technology

Business

RulesFramework


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Business Process of Import Declaration Assessment

[assessment]

[reassessment]

Assess

declaration

Determine declaration

processing scenarioPeform tax control

Perform tax control

(reassessment case)

[failure]

[success]Create

tax liabilities

Notify Customs

Officer

Assess declarationPost tax liabilities

Post created

tax liabilities

[success]

[failure]

Notify Customs

Officer

[first version]

Ass ess new

version of declaration

[new version]

Notify Customs

Officer

[incorrect version]

Send success

message to

Customs Officer

Register declaration

[there are created tax liabilities]

Clear tax liabilities

[payed in advanced]

[deferred payment ]


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ACF Implementation based on SAP Workflow ACF prototype was developed on a basis of one of the main business processes of

Customs and has the following featureso Developed framework enables to build Application Components based on Component

Based Development (CBD) paradigm using SAP ABAP technologyo ACF implements component behaviour as well as business process customization

mechanism based on Business Rules Technology

o ACF utilizes SAP Webflow Engine enabling graphical design of business processimplementation

o ACF implements concept of process wide fact base which itself consists of

Persistent fact base

Transient fact base

Business Rules implementation is done using BRFo Developed BRF prototype utilizes our self implemented ABAP version of Business Rules

Engine

o Business Rules specified using SBVR style during requirements phase are expressed ascorresponding rule records in SAP database at implementation level

o Integration of JSR-94 capable and rule service oriented Business Rules ManagementSystem is under development


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Process Definition using SAP Workflow


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Process Task Implementation

Each Process Task is implemented

as Application Component Service All Process Tasks have access to

process wide Fact Base

Hierarchical Rule Set is derivedusing specified rule set and

available facts in the process wideFact Base


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Process Execution Process wide Fact Base is realized bySAP Workflow Container


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Conclusions ERP systems implementation as well as maintenance process is enhanced greatly

by application of Business Rules Approach

Developed Business Rules Based Application Component Framework facilitates the

integration of Business Rules Technology into mySAP ERP implementation processmaking implemented system more transparent and more adaptive

Only highly adaptive ERP systems will be acceptable as a business enablers thatare capable to manage required changes to system behaviour with the same speedas the business change

The new approach of enhancing and further evolving ERP systems results inbenefit of high added value for customers

The new approach brings new opportunities for delivering out-of-the-box solutionsempowered by Business Rules Technology


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Related Information Introduction to Business Rules Approach

http://www.erp.eu/en/research_insights/infocus/bra

The Principles of Rule Independence

http://www.businessrulesgroup.org/brmanifesto.htm

The Business Motivation Model

http://www.businessrulesgroup.org/bmm.shtml

Semantics of Business Vocabulary and Business Rules (SBVR)

http://www.omg.org/docs/dtc/06-03-02.pdf Object Management Group

http://www.omg.org/

Business Rules Group

http://www.businessrulesgroup.org

Business Rules Community

http://www.brcommunity.com/


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Thank you for your attention!

Questions?

Gediminas [email protected]://www.erp.eu

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06 G.vedrickas Implementation of ERP System