ENTERPRISE

SYSTEMS
ARCHITECTURE
WMSU
What is Enterprise Systems Architecture?
Enterprise Systems Architecture (ESA) refers to the
overall structure and design of an organization's
information technology (IT) systems to support its
business processes and goals.
It involves the integration of hardware, software, network
infrastructure, databases, applications, and services to
create a cohesive and efficient IT environment that can
effectively support the operations and functions of an
entire enterprise.

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Components of the Enterprise Systems
Architecture
• Functional
–Defines the ERP modules that support the various business
functions of the organization. Examples include:
•Accounting
•Human Resources
•Procurement
•Fulfillment
•Etc.

• System
–Defines the ERP architecture through the physical components of
hardware, software, and networking angle.

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Figure 3-1 Enterprise Systems Architecture (ESA) Model

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ERP Modules
• The key role of an ERP system is to provide support for such business
functions as accounting, sales, inventory control, and production.

• ERP vendors, including SAP, Oracle, and Microsoft, etc. provide

modules that support the major functional areas of a business.

• The ERP software embeds best business practices that implement the
organization’s policy and procedure via business rules.

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Figure 3-2 Typical ERP Modules

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ERP Modules From Three Vendors

Function SAP Oracle/ Microsoft

PeopleSoft Dynamics

Sales Sales and Distribution, Marketing and Sales, Retail POS,

Sales Opportunity Supply Chain Field Service
Management Management

Procurement Purchasing, Supplier Procurement and Supply Chain

Relationship Supplier Management
Management Relationship
Management
Production MRP, Product Life Manufacturing Manufacturing
Cycle Management

Accounting Financial Accounting Financial Financial

Management Management
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ERP Modules From Three Vendors (Cont’d)

Function SAP Oracle/ Microsoft

PeopleSoft Dynamics

Distribution Warehouse Supply Chain Distribution

Management Management Management
Customer Service CRM CRM CRM

Corporate Governance, Risk, Corporate Analytics

Performance & and Compliance Performance
Governance Management Management
Human Human Capital Human Capital HR
Resources Management Management Management

Miscellaneous Banking Campus Solutions E-commerce,

Portals
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Overview of Modules
• Production
–Helps in the planning and optimizing of the manufacturing capacity,
parts, components, and material resources using historical
production data and sales forecasting.

• Purchasing
–Streamlines the procurement process of required raw materials and
other supplies.

• Inventory Management
–Facilitates the processes of maintaining the appropriate level of
stock in a warehouse.

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Overview of Modules (Cont’d)
• Sales and Marketing
–Implements functions of order placement, order scheduling,
shipping, and invoicing.

• Finance
–Can gather financial data from various functional departments and
generate valuable financial reports.

• Human Resource
–Streamlines the management of human resources and human
capitals.

• Miscellaneous Modules
–Nontraditional modules such as business intelligence, self-service,
project management, and e-commerce.
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Benefits of Key ERP Modules
• Self Services
–Flexible support for employees’ business functions.
–Simplified access to relevant information.

• Performance Management
–Delivery of real-time, personalized measurements and metrics.
–Provides executives with access to such information as business
statistics and key performance measurements.

• Financials
–Ensure compliance and predictability of business performance.
–Gain deeper financial insight and control across the enterprise.
–Automate accounting and financial SCM.
–Rigorous support for financial reporting—SOX Act.
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Benefits of Key ERP Modules (Cont’d)
• HR Management
–Attract the right people, develop and leverage talents, align efforts
with corporate objectives, and retain top performers.

–Increase efficiency and help ensure compliance with changing

global and local regulations by using standardized and automated
workforce processes.
–Enable creation of project teams based on skills and availability,
monitor progress on projects, track time, and analyze results.

–Manage human capital investments by analyzing business

outcomes, workforce trends and demographics, and workforce
planning.

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Benefits of Key ERP Modules (Cont’d)
• Procurement and Logistics Execution
–Sustain cost savings for all spending categories by automating such
routine tasks as converting requisitions into purchase orders and by
allowing employees to use electronic catalogs to order products and
services.
–Reduce costs through process automation, integration of suppliers,
and better collaboration.
–Improve resource utilization with support for cross-docking processes
and data collection technologies. (RFID and bar codes).
–Enhance productivity of incoming and outgoing physical goods
movements.
–Reduce transportation costs through better consolidation and
collaboration.
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Benefits of Key ERP Modules (Cont’d)
• Product Development and Production
–Shorten time to market.
–Deliver higher quality products and ensure timely delivery.
–Real time visibility and transparency (availability check).

• Sales and Service

–Higher number of sales orders processed and reduction in
administrative costs.
–Easy access to accurate, timely customer information.
–Cost-effective mobile access for field employees.
–Reduce travel costs by using online functions.
–Adhere to environmental, health, and safety reporting requirements.
–Improve the management of incentives and commissions.
–Realize more effective real estate management.
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ERP Architecture
• ERP system architecture is organized in layers or tiers to manage
system complexity in order to provide scalability and flexibility.

• Enterprise Resource Planning (ERP) architecture refers to the overall

structure and design of an ERP system, which is a software solution
that integrates various business processes and functions across an
organization into a unified system. The purpose of an ERP system is
to streamline operations, improve efficiency, and provide real-time
insights by centralizing data and automating processes.

• Three-layer architecture (the most reliable, flexible, and scalable

architecture) is the most prevalent today and includes:
–Web Servers.
–Application Servers.
–Database Servers. Copyright © 2012 Pearson Education, Inc. 15
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Three-Tier Architecture
• Most of the current ERP implementations follow a three-tiered
architecture, which consists of a Web tier, an application tier, and a
data tier.
• Benefits
–Scalability - Easier to add, change, and remove applications.
–Reliability - Implementing multiple levels of redundancy.
–Flexibility - Flexibility in partitioning is very simple.
–Maintainability - Support and maintenance costs are less on one
server.
–Reusability - Easier to implement reusable components.
–Security - IT staff has more control system to provide higher
security.
• Limitations
–Can be very expensive and complex.

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Three-Tier Architecture
• Presentation Tier (Web Tier):
–The presentation tier, also known as the web tier, is the top layer that interacts directly with
the end-users or clients. It handles user interface components and the presentation logic
of the application.
–This tier is responsible for rendering the user interface, managing user interactions, and
displaying data to the users through web browsers or other client applications.
–Web technologies like HTML, CSS, JavaScript, and frameworks like React, Angular, or
Vue.js are commonly used in this tier to create interactive and dynamic user interfaces.
• Application Logic Tier (Business Logic Tier):
–The middle layer, also known as the application logic tier or business logic tier, processes
the business rules, implements application logic, and manages the application's
functionality.
–It is responsible for handling user requests, processing data, performing calculations, and
determining the appropriate actions based on the input from the presentation tier.
–This tier often interacts with databases, external services, and other resources to retrieve
and manipulate data.
–Frameworks and technologies like Node.js, ASP.NET, Java EE, and Spring can be used to
develop the application logic.

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• Data Tier (Data Storage Tier):
–The bottom layer, also known as the data tier or data storage tier, is responsible for
managing and storing the application's data.
–It includes databases, file systems, or any other data storage mechanisms where
information is stored and retrieved.
–This tier ensures data integrity, security, and efficient storage and retrieval of data.
–Database management systems (DBMS) like MySQL, PostgreSQL, Oracle, and MongoDB
are commonly used in the data tier.
Figure 3-4 A Three-Tier ERP Architecture

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Web Services Architectures

• Web-based architecture often described as a fourth tier where the

Web tier is split into Web Services tier and Web Browser tier.

• The ERP systems focus on the Internet to provide a powerful new

functionality for Internet-based access and integration.

• This functionality is primarily supported through the following Internet

access technologies:
–Web Server.
–ERP Portal.
–Back-end Server Integration.
–Browse Plug-ins or Applets.

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Benefits and Drawbacks
• Benefits
–Large numbers of end-users have access to ERP applications over
the Web.
–Easily integrate ERP applications with existing systems.
–Server-centric—No complex, expensive client software installation.
–The server-centric architecture enables secure end-user access to
ERP application.
–Client-centric—Architecture has better response time because user
requests are mostly processed on the client’s computer.
–Web-based architectures also allow better system-to-system
integration.

• Drawbacks
–Client-centric architectures lack security.
–Server centric is slower.
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Service-Oriented Architectures

• Also known as object-oriented architectures for Web platforms.

• Breaks the business tier into smaller, distinct units of services,
collectively supporting an ERP functional module.
• Allows message interaction between any service consumer and
service provider.
• A consumer from a device using any operating system in any
language can use this service.

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Service-Oriented Architectures
• SOA is a software development model based on a contract between a
consumer (client) and a provider (server) that specifies the following:

–Functional description of the service.

–Input requirements and output specifications.
–Precondition environment state before service can be invoked.
–Post condition environment state after service has been executed.
–Error handling when there is a breakdown.

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Figure 3-6 A SOA Architecture

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Benefits of Service-Oriented Architectures

• Business-level software services across heterogeneous platforms.

• Complete location independence of business logic.
• Services can exist anywhere (any system, any network).
• Loose coupling across application services.
• Granular authentication and authorization support.
• Dynamic search and connectivity to other services.
• Enhances reliability of the architecture.
• Reduces hardware acquisition costs.

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Benefits of Service-Oriented Architectures
(Cont’d)
• Accelerates movement to standards-based server and application
consolidation.
• Provides a data bridge between incompatible technologies.
• Provides the ability to build composite applications.
• Creates a self-healing infrastructure that reduces management costs.
• Provides truly real-time decision-making applications.
• Enables the compilation of a unified taxonomy of information across
an enterprise.

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Business Value Benefits of SOA
• Increases the ability to meet customer demands more quickly.
• Lower costs associated with the acquisition and maintenance of
technology.
• Empowers the management of business functionality closer to the
business units.
• Leverages existing investments in technology.
• Reduces reliance on expensive custom development.

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Drawbacks of Service-Oriented Architectures

• SOA implementations are costly and time-consuming.

• Requires complex security firewalls in place to support
communication between services.
• Performance can be inconsistent.
• Requires enterprise-level focus for implementation to be successful.
• Security system needs to be sophisticated.
• Costs can be high because services needs to be junked very often.

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SOA and Web Services
• Web services basically are interfaces that allow different software
application and components to be operated together.
• According to IT industry standards, different applications can interact
with without communication problems.
• The only method of interaction by Web services is by receiving and
sending messages.
• Services are developed using open standards such as WSDL (Web
Services Description Language), UDDI (Universal Description,
Discovery, and Integration), and SOAP (Simple Object Access
Protocol).
• The protocols used in Web services are XML-based.

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Cloud Architecture
• Cloud computing is basically a software service provided over the
Internet, securely, by a service provider on a monthly or yearly lease.

• Companies leasing CC services save money by replacing their

purchased software that requires a license fee per seat.

• Some cloud computing providers also let you build your own
applications using their engines and then they would host those
applications for you as part of the service.

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Cloud Architecture

• The cloud computing platform provides a great alternative for

organizations that do not want to:

–Purchase, install, or maintain software applications.

–Worry about security, privacy and legal issues associated with data
storage.

• The cloud computing platform is risky for organizations as it forces

them to rely on external vendors for reliability, security, and continuity
of enterprise applications.

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Benefits of Cloud Computing
• Pay for subscription, not for licenses and upgrades.
• Reduced capital and operating expenditures for IT equipment and
support personnel.
• Accessed from everywhere, as long as you have an Internet
connection.
• No need to install anything on the user’s computer.
• Dynamic scalability available on demand.
• No maintenance fees for software or hardware.
• Promotes green computing environment as servers in cloud run on
clean energy.
• Guaranteed reliability.
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Drawbacks of Cloud Computing
• Data security.

• Vulnerability.

• Possible conflict of interest, if the company who stores your

applications decides to create a similar application to what you
created on their servers.

• Not suited for all highly competitive industries like biotech where
intellectual property cannot be protected easily.

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 ENTERPRISE
SYSTEMS
ARCHITECTURE
WMSU