INTERNET AND RELATED TECHNOLOGIES AND ERP

Abstract: Enterprise Resource Planning (ERP) systems dominated the

enterprise software market in the mid to late 1990s. Organisations adopted
ERP systems to improve business processes, reduce costs, and prepare for
future growth. While the rate of adoption of ERP was very high there was
also much criticism for expensive overrun implementations, restricted
functionality and inflexible complicated configuration and set-up. In parallel
with the rise of ERP the Internet was moving from a messaging facility used
by academics and the military to a powerful communications tool that could
be used by consumers and businesses alike. As organisations began to
improve internal processes through ERP they also began to examine how
ERP and the Internet could help them improve processes that extended
beyond the enterprise to their customers and suppliers.

Key words: ERP, HTTP, HTML, CORBA, SDK, PDA, etc.

1.0 INTRODUCTION
ERP is an enterprise-wide computer management system. Davenport described ERP as a
commercial software package that promises the seamless integration of all the information
flowing through the company—financial, human resources, supply chain, and customer
information. It represents the application of the latest Information Technology (IT) to the
Manufacturing Resources Planning (MRP/MRPII) system. In addition to the new business
functions, it has included many technology innovations including the move to relational
database management systems (RDBMSs), the use of a graphical user interface (GUI), open
systems and a Client/Server architecture. In the new generation of ERP, one will see many
more enhancements including the Internet-based applications, the development of component
technology using object oriented models for quicker, faster implementation and customization.

In the late 1990s, the Internet allowed organisations to share data in a relatively straightforward
manner. Software firms were quick to take advantage of this new opportunity and new
enterprise applications emerged. These included supply chain integration (e-SCM), business-
to-business eProcurement (B2B eProcurement) and customer relationship management
(CRM) all of which could be integrated with the organisation’s Enterprise Requirements
Packages (ERP). Many studies have concluded ERP systems can bring benefits in operational
efficiency and reduced costs to organisations and enforce a discipline of best practice and
consistency. As organisations began to improve internal processes through ERP they are
beginning to examine how ERP and the Internet could help them improve processes, which
extended beyond the enterprise to their customers and suppliers. However, little research
attention has been focused on combining ERP and Internet technologies.

The Internet has allowed a shift towards dynamic communication and improved integration,
often ahead of the physical movement of goods. Porter acknowledges the impact of the
Internet on the supply chain and asserts that the Internet is the most powerful tool available
today for enhancing operational effectiveness as it allows the exchange of real time information
thereby creating improvements throughout the value chain. But he cautions that the advent of
internet technologies alone will not help firms achieve competitive advantage as traditional
sources such as scale, human resources and investments in physical assets continue to play
prominent roles. Indeed, the open nature of Internet technologies makes if easier for
companies to use them. This minimizes the opportunity for them to deliver competitive
advantage.

2.0 WEB-BASED ARCHITECTURES

In the last decade, many ERP vendors have introduced Web (or Internet) based architecture
four tier systems. This is often described as a fourth tier where the Presentation tier is split into
Web services tier and Web browser tier. The ERP systems focus on the Internet to provide a
new functionality for Internet-based access and integration. This architecture leverages a
number of Internet technologies and concepts to deliver simple, ubiquitous access to ERP
modules and enable the open flow of information between systems. This functionality is
primarily supported through the following Internet access technologies.
 Web server
 ERP Portal
 Back-End server integration
 Browser Plug-Ins or Applets

Using Internet architecture as the foundation, and users can access ERP application over the
Web browser, as well as more easily integrate their application with existing internal systems
and external trading partner systems. The Internet architecture can be server-centric or client-
centric.

In server-centric environments, clients only need access to the Internet and a standard browser
with a few plug-ins. There are no other user interface applications required on the client;
therefore, the client can be any Internet device that uses such standard Internet technologies
as HyperText Transfer Protocol (HTTP) or HyperText Markup Language (HTML) for user
access, or eXtended markup language (XML) for back-end communication between an
application and a third party system with the Internet Application Server. The latter falls more
under system-to-system integration.

In client-centric environments, client devices will need installation of Software Development

Kits (SDKs) and proper configuration and Integration with client devices for the application to
work properly. This is practically disappearing from PC-based clients due to the advantages
provided by server centric environments as well as due to higher network bandwidth and
reliability. Client centric platforms are popular in such other devices as personal Digital
Assistants (PDAs), Blackberries and Mobile phones that are increasingly used to access
information from the Enterprise systems.

3.0 WEB TECHNOLOGIES

Internet Architecture supports a number of standard internet technologies that allow customers
to leverage their corporate computing infrastructures as well as the capabilities of the internet
and World Wide Web.

3.1 HTML
Internet Architecture heavily leverages HTML for presentation. The HTML Processor layer of
the Internet Application Server dynamically generates HTML—which is delivered to the end
user’s web browser.

3.2 HTTP
Internet enabled clients (web browser, cell phone, etc.) communicate over a secure HTTP
connection. The XML-based bindings for Application Messaging, Business Interlinks, and
Component Interfaces also use secure HTTP for communications, as does the Application
Messaging architecture for delivering XML messages between servers.

3.3 Java
Java is used on the Internet Application Server tier. The Presentation Java Servlets are used to
serve HTML to the web browser and the Integration Java Servlets are used to pass the XML
messages over secure HTTP for Application Messaging-based integration.

3.4 JavaScript
The PeopleSoft Internet Architecture uses JavaScript for client-side processing within the web
browser to perform required field checking and field format edits, among other tasks.

3.5 WAP
WAP (Wireless Access Protocol) is currently the standard for wireless information and
telephony services on digital mobile phones and other wireless devices. It is an open, global
wireless protocol specification based on existing internet standards—such as XML and Internet
Protocol (IP)—for all wireless networks. The Internet Architecture natively supports WAP
wireless applications.

3.6 LDAP
The Security Manager uses LDAP to communicate with the Directory Server for enduser
authentication during login. Applications also use LDAP to read and update the Directory
Server through the Component Processor executing on the PeopleSoft Internet Application
Server.

3.7 Web Servers

PeopleSoft Internet Architecture leverages web servers to perform several functions, including
executing Java Servlets to serve HTML and JavaScript to web browser clients and using Java
Servlets in the integration architecture to pass XML messages between systems.

3.8 XML
Internet Architecture uses XML in several areas to deliver powerful integration capabilities.
Application Messaging publishes messages as XML documents, which provides a highly
flexible and extensible platform for integration. In addition, Business Interlinks and Component
Interfaces support XML-based bindings. Application Engine provides robust XML file
processing support.

3.9 COM/DCOM
This technology is supported in its Component Interfaces, which provide native support for
COM/DCOM bindings.

3.10 CORBA
This technology is for the Component Interfaces.

4.0 BENEFITS AND DRAWBACKS

The key benefit of sing the Internet platform as the foundation is that organizations are able to
provide a wide range of end-users with access to ERP applications over the Web as well as
more easily integrate their ERP applications with existing internal systems and external trading
partner systems.

The Internet architecture can be server-centric or client-centric. The server-centric architecture,

like the one shown in the following figure, enables secure end-user access to ERP application
modules from any Internet-enabled device that uses such standard Internet technologies as
HTML,XML and HTTP which can access and execute ERP applications.

Fig.1: PeopleSoft’s Server-centric architecture

The benefit of the server-centric architecture is that there is no complex, expensive client
software installation. The Internet client device accessing the Internet architecture already has
all the software and configuration it needs. No additional software must be installed on the
client for interaction with ERP applications (i.e. no Java applets, Windows .DLLs or browser
plug-ins are needed). Simple, open architecture creates easy, inexpensive access and is a big
reason why the Web has been such an enormous, fast-growing success.
On the other hand, the client-centric architecture requires the applications and data to be
downloaded from a server and executed from a client workstation. Each architecture has its
benefits and drawbacks. Although the server-centric has better security and controls because
all the applications and data are on the server and clients do not need any specific
configuration, it does tend to have slower response time because all user requests are
processed on the server. The client-centric architecture similarly has however, they can lack
security and require all clients workstations to be set up according to the standard
specifications.

In addition to improving end-user access, Internet-based architectures also follow better

system-to-system integration, which is often considerably more complicated and costly. The
web system platform fundamentally supports a better and more open flow of information
between systems. By leveraging such ubiquitous Internet technologies as XML and HTTP, the
ERP is able to support better systems integration. These integration technologies streamline
integration of ERP modules with other organizational applications, custom internal systems, e-
merchandise and customer trading partner systems. This functionality is supported through the
following Web technologies:

 Application Messaging
 Component Interfaces
 Business Interlinks
 Application Engine

5.0 REFERENCES

1. Motiuvalla F Luvai and Thompson Jeff, 2009, “Enterprise System for Management”, Pearson
Education, pp. 94-96
2. Anonymous, January 2008, “PeopleSoft Internet Architecture”, www.uh.edu/FAST/PeopleSoft
%20Internet%20Architecture.pdf, downloaded on 02-03-2010.
3. Anonymous, “Impact of Internet on ERP Systems”,
http://ecommerce.hostip.info/pages/418/Enterprise-Resource-Planning-ERP-IMPACT-
INTERNET-ON-ERP-SYSTEMS.html, downloaded on 02-03-2010.
4. Deven Port, “Networks and ERP”,
http://www.networkworld.com/columnists/2000/0228devenport.html, downloaded on 02-03-
2010.
5. Anonymous, “The new world of ERP”,
http://www.themanufacturer.com/uk/content/10179/The_new_world_of_ERP, downloaded on
02-03-2010.
6. Anonymous, “PeopleSoft-Questions & Answers”, http://www.aired.in/2009/08/sitemap-of-
peoplesoft-questions-answers.html, downloaded on 02-03-2010.
7. Thomas F Wallace and Michael H Kremzar, 2008, “ERP: Making it happen”, Jon Wiley &
Sons, pp 211-223
8. Richardson, B., April, 2004, “Five Ideas About ERP, AMR Research”,
http://www.amrresearch.com/Content/View.asp?pmillid=17203&docid=19061, downloaded on
02-03-2010.
9. J. Gleick, ERP Implementation, 2002, “Future Trends in the Center for Information Technology
and Management Newsletter, vol. 6(3), University of Texas, Dallas, http://citm.udallas.edu
downloaded on 02-03-2010
10. Kraft, C. L. , 2001, Executive ERP,
http://www.oracle.com/oramag/profit/ 99-May/index.html?p29ind.html., downloaded on 02-03-
2010