Intentsys, short for Integrated Enterprise Systems, is passionate about the "Space Between", the space that connects SAP and other Enterprise Systems, Components, Devices, Things, Machines and People.
This deck lets the reader explore about the importance of system integration and access of data assets to gain a competitive advantage.
Copy from Mulesoft Partner site:
At Intentsys we are passionate about the "Space Between", the space that connects SAP and other Enterprise Systems, Components, Devices, Things, Machines and People.
We aspire to help Mulesoft to change how the world connects and bring along thorough SAP domain competency.
Intentsys, which stands for Integrated Enterprise Systems, resides in Singapore, a city state that walks the talk of productivity gains.
We are servicing medium size to large enterprises becoming API-led organizations. We integrate the space of SAP & Cloud Integration through Implementations Projects & Support complemented by Education and Value Engineering exercises.
Education plays a differentiator too, since project team alignment is a key to success. Our rapid Intentional Leadership Series help to overcome the typical gap between Business- and IT Drivers to collaborate fully and to work towards common project goals.
We have serviced various players in Oil & Gas, Consumer Electronics, FSI, Logistics and diversified Conglomerates.
<use simple/commonly used words that resonate with IT and biz
Interface, transactions>
IT Head – more from TCO angle, and system availability, downtime
Biz head – inconvenience, ops speed, exceptions, new needs
……more
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When asking IT executives and business decision makers why business process improvement is of such major importance within their organization, it often comes down to one or more of the following 6 issues:
Inconsistent, manual processes and responsibilities, e.g. processes dominated by emails, telephone and spreadsheets
Inability to quickly adapt processes, e.g. processes in hard-coded backend applications are difficult to change
Too complex user interfaces, e.g. often casual users are challenged with the complexity of user interfaces of SAP applications
Lack of process transparency, e.g. process experts often miss the insight about the process performance (e.g. processing time) and status of processes
Poorly integrated systems, e.g. applications integrated point-to-point, or not integrated at all
Inefficient collaboration with biz partners, e.g. collaboration not automated, but rather manual using fax and email
Are you facing similar issues within your organization?
Explicit need
[IT, Biz] you may be a new ERP adopter AND/OR you have a legacy or any bespoke (custom, or point solution) on a separate data base. And it will not retire (have to be used in the future as well). Biz user might been living with this pending pain point.
[IT] System integration is carried out on a case-by-case basis or project basis. Various de-centralized projects and initiatives. Development cost is high, time lines are long, Operational cost is high. New Technologies compound to the situation
[Biz, IT] Biz wants to use a new Cloud solution as it meets a pain-point, is readily available, and seems affordable due to incremental cost
[Biz] is forced/encouraged to take electronic orders from customers. Or conversely they want to exactly have their vendors doing this. New inventory models like Vendor managed inventory,
[Biz, IT] both know there are challenges ahead to realize the new initiative. Integration is a mission-critical angle to tackle. I.e. to integrate multiple disperse systems. Critical exception have to pop up in real-time
Cost of ownership
Productivity
Sophisticated customers
New generation of consumers (with a weekend experience)
Healthcare
Managing more & older patients
Electronic Medical Record, Electronic Health record
EMR – deep but not broad.
EHR – about one individual – broad but not deep
Insurance industry – cheaper, cycle time in weeks rather than months (money is locked)
Postal industry – when will it be redundant?
Talk about airbnb, uber
Definition: ERP ….Enterprise Resource Planning. A business software. A suite of integrated apps/modules to transact biz activities.
Consider it an innovation. Came up in the ‘80s.
<give some indication: Who has adopted ERP? Per segment.
All industries and all company sizes have adopted ERP
Top 500 companies…..
LE
ME
SE>
Characteristics
An integrated system that operates in (or near) real time without relying on periodic updates
A common database that supports all applications
A consistent look and feel across modules
Installation of the system with elaborate application/data integration by the Information Technology (IT) department, provided the implementation is not done in small steps[15]
What it does - An integrated system that operates in (or near) real time without relying on periodic updates[citation needed]
A common database that supports all applications
That is the source of its success: because it is integrated….. Ie. Processes are complete….. Robust, based on standards (best practices), eventuates in a lower TCO
Singular modules were taken out and
CRM, Reporting/Data Warehousing etc.
Later Cloud and SaaS compounded to this reality.
A reality of a break-up in the integration of built-in processes.
Integration had to be built again. That had to be done manually.
ERP provided built-in Application Interfaces (API) for that market need AND to enable further expansion its own offering/capabilities.
Here an example.
Just for the records – Benefits and Payoff of ERP
Comparison to special–purpose applications[edit]
Advantages[edit]
The fundamental advantage of ERP is that integrating myriad businesses processes saves time and expense. Management can make decisions faster and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include:[citation needed]
Sales forecasting, which allows inventory optimization.
Chronological history of every transaction through relevant data compilation in every area of operation.
Order tracking, from acceptance through fulfillment
Revenue tracking, from invoice through cash receipt
Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
ERP systems centralize business data, which:
Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications
Brings legitimacy and transparency to each bit of statistical data
Facilitates standard product naming/coding
Provides a comprehensive enterprise view (no "islands of information"), making real–time information available to management anywhere, any time to make proper decisions
Protects sensitive data by consolidating multiple security systems into a single structure[42]
Benefits[edit]
ERP can improve quality and efficiency of the business. By keeping a company's internal business processes running smoothly, ERP can lead to better outputs that may benefit the company, such as in customer service and manufacturing.
ERP supports upper level management by providing information for decision making.
ERP creates a more agile company that adapts better to change. ERP makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business—internally and externally.[43]
ERP can improve data security. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised.[citation needed]
ERP provides increased opportunities for collaboration. Data takes many forms in the modern enterprise. Documents, files, forms, audio and video, emails. Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.[citation needed]
Disadvantages[edit]
Customization is problematic. Compared to the best-of-breed approach, ERP can be seen as meeting an organization’s lowest common denominator needs, forcing the organization to find workarounds to meet unique demands.[44]
Re-engineering business processes to fit the ERP system may damage competitiveness or divert focus from other critical activities.
ERP can cost more than less integrated or less comprehensive solutions.
High ERP switching costs can increase the ERP vendor's negotiating power, which can increase support, maintenance, and upgrade expenses.
Overcoming resistance to sharing sensitive information between departments can divert management attention.
Integration of truly independent businesses can create unnecessary dependencies.
Extensive training requirements take resources from daily operations.
L2 – e.g. SAP adopted a canonical data model from the start. Techn definition, Business definition….commonly used in the entire suite
Lets say I am CIO of a medium size (1000 employees) Office Furniture (Manufacturing and Wholesale) company.
5 years back, We have invested into SAP A1 ERP for all 1000 employees (2.5 Mil USD license & 2.5 for 5 years maintenance) and went live after 3 months (300K USD).
[So altogether a 5Mil USD investment]
Also got a HR system from 7 years back. We are out of maintenance. System serves the purpose.
And a recently gone-live standalone enterprise-level BI system
NOW Biz has decided to grow revenue by a higher cadence in the sales force and better insight in the pipeline activities. They realized that the sales module features won’t support sales pipeline activities.
Thus want to subscribe to a Cloud solution of Salesforce.com in order to have a short impl time and minimal disruption to the ERP
CRM has got a reporting system but it was decided to consolidate into a recently gone-live standalone enterprise-level BI system.
For the setup, besides the integration infrastructure to the cloud service
CRM need to get
customer masters and product masters from ERP
And sales team reps from HR
The forecast feeds back into the enterprise level Reporting system
My team has to build the API to make it work……and it makes sense
But API come in various colors and flavors
What does it mean to build the integration – its about alignment
Source and Target API have different data structures. The data tables, the field names and meaning and purpose and the field characteristics
The connectivity differs by the technologies of the applications to be connected. Do they provide an API, are they technically enabled to do what is requested?
The timing – synchronous / immediate update required? Can the messages be collected?
The exact process step to trigger the integration scenario
Is there additional business logic (integration logic) needed to complete the integration scenario
To conclude – yes it makes sense to integrate, even p2p. We can establish that
Look at the benefits
However there are still a number of challenges, which cannot be addressed effectively
Benefits-------------------
Think of your erp investment in the first place: 5 Mil USD. Leverage data to the fullest….. Integrate in real-time or as being useful to biz.
Payoff------------------------
Various technologies: OS, coding lang, features, API
Housekeeping
Visibility, root cause analyisis and exception handling
Each new interface or business flow to be developed
Valero Energy “Each line (interface) costs $50,000 to $100,000 over 5 to 10 years”
Nestle example…..< >
How to deal with M&A activites?
manage the typical gap between biz and IT
--------------needed?---------------
Difficult to extend business applications in an efficient manner
Complex processes & technologies, with valuable information locked in transaction systems
You keep building point to point API as you need…..
Unrealistic pace, at the cost you can’t afford, innovation you can’t deliver
IT centric implementations cannot cope with the speed of business change
Exponential increase of TCO
Customers traditionally rely on themselves to integrate these technology components together
Likely not leveraging the best practices, events, services, processes that are locked within the valuable corporate transaction systems
This increases ongoing maintenance and usage costs
Valero quotes as an example
To conclude – yes it makes sense to integrate, even p2p. We can establish that
Look at the benefits
However there are still a number of challenges, which cannot be addressed effectively
Benefits-------------------
Think of your erp investment in the first place: 5 Mil USD. Leverage data to the fullest….. Integrate in real-time or as being useful to biz.
Payoff------------------------
Various technologies: OS, coding lang, features, API
Housekeeping
Visibility, root cause analyisis and exception handling
Each new interface or business flow to be developed
Valero Energy “Each line (interface) costs $50,000 to $100,000 over 5 to 10 years”
Nestle example…..< >
How to deal with M&A activites?
manage the typical gap between biz and IT
--------------needed?---------------
Difficult to extend business applications in an efficient manner
Complex processes & technologies, with valuable information locked in transaction systems
You keep building point to point API as you need…..
Unrealistic pace, at the cost you can’t afford, innovation you can’t deliver
IT centric implementations cannot cope with the speed of business change
Exponential increase of TCO
Customers traditionally rely on themselves to integrate these technology components together
Likely not leveraging the best practices, events, services, processes that are locked within the valuable corporate transaction systems
This increases ongoing maintenance and usage costs
Valero quotes as an example
Various names for Integration Platform:
Broker
ESB
EAI – Enterprise application integration
Message Middleware
List benefits……
Various names for Integration Platform:
Broker
ESB
EAI – Enterprise application integration
Message Middleware
List benefits……
X process stands for Cross System process
X process stands for Cross System process
APIs are the new currency of business that allow you to turn your digital assets into revenue streams. There’s a lot of value locked inside a company’s data and increasingly, they’re tapping into the value of this data through APIs.
Intuit is a great example.
Intuit has integration with 19,000 financial institutions through their flagship Quickbooks product. They recognized that this data could be valuable to many other companies so they released it as an API, which is now used by other products and services like Mint.com (intuit owned) and SaveUp, a site that tracks your progress towards personal savings goals.
Role and buying center is important
CxO
Biz manager
End user
Admin
Developer
General:
What are your major business initiatives? (Merger, government compliance, improve time-to-market, etc)
What are major IT initiatives? (BI, Data Warehousing, MDM, etc)
Are there any tactical needs? (Better reporting, improve DW performance, improve SAP archiving, etc)
For PI
Business:
How do you use your legacy systems? (def: out of maintenance, old but operational, nobody knows how to maintain)
How do you transact with your vendors and customers (sending/receiving PO, SO, invoices, )
How do you handle critical business exceptions and events (e.g. out-of-stock)?
To what level do you trust the accuracy of your data and whether they are up-to-date?
IT:
How does your IT system landscape look like?
How do you develop and maintain interfaces? What is the cost?
How do you manage legacy systems?
From BPM:
Is the activity a series of dependant actions?
Do this activity/transaction bridge multiple systems?
Do this actions bridge multiple organizations or business partners?
Do I need to account for frequent differences or changes to process cycles?
Do I need to engage different kinds of users into the process step?
How important is measuring and monitoring of process cycles?
Existing or planned initiatives
Role:
We are servicing medium size to large organizations with SAP & Cloud Integration through Integration Project Implementations & Support complemented by Education and Value Engineering exercises.
Deleted: Limits of a landscape of discrete IT systems to handle exceptional, sudden, unplanned, new business situations