DEPT. OF COMP. ENGG.

ERP and SCM LAB MANUAL

Vishwaniketan’s Institute of Entrepreneurship Management and

Engineering Technology
Kumbhivali, Tal- Khalapur, Maharashtra 410202

DEPARTMENT OF COMPUTER ENGINEERING

Laboratory
Man
ual
ERP & SCM

For

BE Computer

SEM VII

Prepared By HOD
Mrs. C. M. Pandit & Mr. S. Raskar Mr. Deepak D. Badgujar

Version:-1.0

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

List of the Experiment

Sr.
Experiment Name Page No.
No.

1 Simulating business processes of an Enterprise.

2 Designing a web portal for an Enterprise using E-business Models

3 To implement E-procurement model

4 Study of Open source ERP

5 Study of Cloud ERP

6 Business process agility

7 Design of SCM model

8 Implementing Business Intelligence

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

EXPERIMENT NO. 01

Aim: Simulating business processes of an Enterprise.

Theory:
Here we are describing various UML diagram of our web portal.

Class Diagram
Class diagrams are perhaps the most commonly used diagrams in modeling object-oriented
systems.
A class diagram shows a set of classes and interfaces, and their relationship.
In an object-oriented system, no class can stand in a complete isolation from all the other
classes. Classes share various types of relationship with other classes. In fact, a system is a
collection of various collaborating classes. It is through collaboration between various classes
that a system can achieve its final goal.
Contents of a class Diagram
A class diagram consists of some logically related classes and interfaces from some aspects
of a system, along with the relationship as well as collaborations between these classes. The
number of classes and interfaces in a non-trivial system is likely to be such that a single
diagram showing all classes and interfaces, and all their relationship, may not be practical.
We, therefore, make a number of classes diagrams, each diagram representing some specific
aspects of a structural relationships and collaborations between classes. A class may appear in
multiple class diagrams.

Representing classes in a Class Diagram

The complete UML notation for a class diagram is a rectangle with three compartments. The
first compartment has an optional stereotype and the class name. The second compartment
can be used to show the attributes of a class, while the third compartment is used for listing
the responsibilities of operations of the class. Only the first compartment is mandatory, the
next compartments are optional, and often omitted.
Including all attributes and operations for a class diagram may not only be unnecessary in
most contexts, but it may also clutter up the diagram and make them difficult to use. UML
also allows you to render some selected attributes and operations in the respective
compartments

Students should draw the class diagram respective to their web portal.

Use Case Diagram:

Use case diagram comprises of use cases and actors such that there would be various kinds of
relationships among the use cases and the actors. A use case diagram shows all the actions
that a particular actor needs to perform through out the system at every and any point of time.
There would be only one use case diagram per each system.
Actors
Actors represent anyone or anything that interact with the system. There are three types of
actors:
1. users of the system,
2. external application systems, and
3. external devices that can independently interact with the system.
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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

In UML, an actor is represented stickman symbol, as shown below:

Use cases:
Use cases eventually map to the menu option. Use cases represent the functionality provided
by the system. Each individual functionality provided by a system is captured as a use case.
A use case thus represents a dialog between an actor and the system. A collection of use cases
for a system reflects all the defined ways in which a system can be used.
A use case can be defined as a sequence of transactions performed by a system, that yields a
measurable result of values for a particular actor.
In UML, a use case is represented as an oval, as shown below:

Use Case Diagram

Students should draw use case diagram as per their project.
Sequence Diagram
A sequence diagram shows a pattern of interaction among objects, emphasizing the
sequencing of messages. A message is the mechanism by which an object to execute a
certain responsibility. Normally, we begin drawing a sequence diagram by placing the
initiating actor at the left, and subsequent classes or actors increasingly to the right. Linking
the participating objects or actors by line with an arrow shows a message. The message line
originates from the object or the actor who initiates the message and arrow points to the
object or the actor who is responsible for that message to be executed.
The message line should be labeled with a suitable description of the message being passed.
We can also specify the message. Interaction between actors should not be shown in a
sequence diagram. Since actors are outside the system, any interaction between them is also
outside the system, and therefore should not be modeled
Sequence diagram demonstrate the behavior of objects in a use case by describing the objects
and the message they loss. The diagrams are read left to right and descending.

Draw sequence diagram here

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Lab Review Questions:

1. What do you mean by an enterprise?

2. What are the problems of the various departments of an organization functioning in
isolation?
3. Why business processes are called cross-functional?
4. What are enterprise systems and why they are important?
5. What is the main goal while designing the ERP software?
6. Can organization succeed without an ERP system?
7. What does an ERP system comprise off?
8. What are the main attributes of best practice business processes?
9. How does ERP help MIS?
10. How does ERP improve customer and partner support?

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

EXPERIMENT NO. 02

Aim: Designing a website for an Enterprise using E-business Models

Theory: Consider following website

WWW.DELL.COM

NAME: www.dell.com

TLD or STLD: In this web site „.com‟ assigns that this web site only for commercial base.
As well as „.in‟,‟.uk‟, ‟.us‟ etc are assigned for particular countries.

E.g.: www.dell.com, www.dell.co.in, www.dell.co.us...

CATEGORY: www.dell.com is a commercial base web site for business purpose. In which
consumers, customers, retailers & etc are comfortable for there business.

MENU: About dell, Site terms & condition, Unresolved Issues, Privacy, and Site map, Dell
Recycling, Feedback.

SUB MENU:

Laptops & Notebooks: Featured Laptops, Intel Core processor Family, Studio & Studio
XPS, Inspiron, Alienware, Ademoby dell, Inspiron mini.

Desktops & all in one: Featured Desktops, Intel core processor family, All-in-one desktop,
Inspiron, Sudio & Studio XPS, Alien ware, Compare all desktops.

Electronics & Accessories: Carrying case, Desktops Accessories, Laptop Accessories,

Monitors, Projectors, Softwares, and Storage & Media.

Monitor: Ultra Sharp Monitors, 17‟‟-19‟‟ Moniters, 20‟‟ Moniter, 22‟‟-24‟‟ Monitor.

Projectors:

Solution Station: System services & warranty.

Retail:

DESCRIPTION:

Customers are at the core of everything we do. We listen carefully to their needs and desires,
and collaborate to find new ways to make technology work harder for them.
In all we do, we‟re focused on delivering solutions to enable smarter decisions and more
effective outcomes so our customers can overcome obstacles, achieve their ideas and pursue
their dreams. Above all, we are committed to the superior long-term value they need to grow
and thrive.
CATEGORIES : Shop , Support , Communities, Sign UP for news & offers, My order
Status , My Account, Feedback, Cart.

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

PAYMENT GATEWAY: Pay pal gate way is used by dell.

EXTRA FACILITIES : They provides that How to order online ,Payment Option, Follow
dell on facebook, Follow Dell on twitter for latest offer, Maximum protection from McAfee
security, Special offers directed by E-Mail, Special Art Edition Laptops, Go Green(Recycle
your PC), Buying Safely at Dell, Convenient Shopping, Shipped to your door, Award-
winning technology, Flexible payment options, Service support.

Conclusion:

In this way we designed a website for an Enterprise using E-business Models

Lab Review Questions:

1. What is E-business model?

2. What is web portal?
3. What is Process Modeling?
4. Why is business process re-engineering a critical component of the successful
implementation of ERP.
5. How does information technology facilitate the process of business re-engineering.
6. What problems with business processes and information do you feel occur in the
current payment processing system?
7. Business Process Re-engineering?
8. Difference between Re-engineering and Customizing?
9. ERP Implementation Steps
10. Define Client-Server Computing?

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Experiment No. 3

Aim: E-procurement model.

Theory:

Dimensions of Public Procurement

Large Volume
~ Rs 3,00,000 crores annually
Great diversity
Goods, Services & Works
Widely dispersed
Central, State & Local Governments
Central & State PSUs
Statutory Bodies
Local Authorities
Radical reforms needed …to enhance
Transparency
Speed
Efficiency

Range of Procurement Services

Indent Generation & Approval
Indenting
Procurement Process
Tenders, Auctions, Reverse Auctions, Rate Contract, Catalogue
Buying
Demand Aggregation
Bid Evaluation
Award & Purchase Order
Supply Management
Quality Management
Inventory Management
Payments Management
MIS & EIS

Categorization of Procurements
By Category of Goods & Services
Goods
Services
Civil Contracts
By Nature of Procurement
eTenders
Rate Contract & Catalogue Buying
Auctions, Reverse Auctions
LCB, NCB, ICB
By size / Volume of procurement
High Value, low volume
Low value, High Volume
By Portfolio of services needed
Requisition, Bid Process
Evaluation, Award, PO
Supply, Quality check, Inventory Management
Payment, Accounting, Audit
MIS, EIS

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Fig. e-Procurement Technology Model

Suggested course of action

  Commission a comprehensive study 
  Identify a partner


  
for creation of National eGP Infrastructure
 
Create a Core Governance Group for eGP

Conclusion:

In this way we designed e-procurement model.

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Lab Review Questions:

Q1. What is e-Procurement?

Q2. Why are we publishing this Green Paper?
Q3. What are the potential risks identified?
Q4. Can DRAFT versions be transmitted through eProcurement for review?
Q5. Will e-Procurement have a help function for completing and submitting documents through e-
Procurement?
Q6. Is the system going to have a section for solicitation Q&A's and due dates to the Q&A's and
how?
Q7. Will I need special hardware or software to use e-Procurement?
Q8. Will the system auto generate a purchase order number?
Q9. What information does the supplier provide when submitting their bid, i.e., SB status, sellers
permit, etc.?
Q10. Does e-Procurement have data size limitations? (The file size of some solicitation
packages and bidder responses are very large.)

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Experiment No. 04

Aim: Study of open source ERP

Theory:
Open source ERP is an enterprise resource planning (ERP) software system whose source
code is made publicly available. The open source model allows companies to access the ERP
system's code and customize it using their own IT department instead of paying extra for
vendor customization services and licensing, as is typically the case with closed source
programs.

For open source ERP software to be a viable option, companies must have an IT staff with
considerable ERP development and programming skills. In-house ERP support capabilities
are also important, as customizations are often not covered under vendor-operated software
support.

Open source ERP can be particularly attractive to small to mid-sized businesses (SMBs) that
want to upgrade or customize their ERP systems without paying large licensing and support
fees.

Here are some of the best open source ERP offerings available today:

ADempiere ERP Business Suite. (Java) ADempiere is a comprehensive multi-platform

ERP platform that was forked from another ERP project called Compiere back in 2006. It
offers a vast array of features including sales, purchasing, accounting, manufacturing
management, material management and finance, as well as HR, CRM and payroll. The
software is available to download from Sourceforge under the GPL.

Apache OFBiz. Multi-platform (Java) OFBiz (which stands for Open for Business) is the
Apache Foundation's enterprise business package. Released under the Apache License 2.0, it
is free to download from Apache. The suite includes many ERP functions including e-
commerce, catalog management, promotion and pricing management, order management,
warehouse management, accounting, manufacturing management, PoS and other features.

Odoo. (Python, Javascript, PostgresSQL) Odoo is the new name for an open source business
suite previously known as OpenERP. The product is aimed at companies of all sizes, and is
used by businesses including Danone, Canonical, Singer and the French postal service La
Poste. The community edition of Odoo is available to download for free, and this includes
all modules - ERP ones as well as CRM, marketing and others. The hosted version is
available free for two users, and thereafter costs Euros 12 per user ($15 U.S) per month for
each app, including email support. A more comprehensive package that includes
customization assistance and training materials is also available for Euros 111 per user ($138
U.S.) per month for each app.

xTuple. (Qt and Postgres) xTuple claims to be the world's number one open source ERP
suite and has been around in one form or another since 2000. It offers a free open source
edition called PostBooks which is available from Sourceforge, and is also available as a
licensed product with maintenance, support and the option to use it as a service offered from
the cloud.

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

As well as these two editions, which are aimed at small and medium sized companies, xTuple
offers three further commercial editions for larger organizations - one aimed at distributors,
one targeted at manufacturers and a more general enterprise edition. These are built on the
same open source foundation and share the same code base.

The open source edition includes functionality for accounting, sales, CRM, purchasing,
product definition, inventory and distribution, light manufacturing and the OpenRPT open
source report writer. The commercial license for PostBooks costs $1,200 per user for a
perpetual license, or $400 per user per year. If used as a service this costs an extra $100 per
month, plus $30 per user per month.

OpenBravo ERP. (Java) OpenBravo is an open source ERP system which is available to
download on Sourceforge. Aimed at small and medium sized businesses, this modular system
includes finance and accounting, purchasing management, sales management, inventory
management, project management, PoS, business intelligence and other modules.

OpenBravo also offers two commercial editions - a professional edition for smaller
companies with up to 5 concurrent users and an enterprise edition for larger companies with
substantial numbers of users.

opentaps is an integrated open source ERP and CRM suite sponsored by Open Source
Strategies, Inc. and used by organizations including Toyota and Honeywell. Opentaps
supports e-commerce, CRM, warehouse and inventory management, supply chain
management, financial management, business intelligence and mobility integration out of the
box. The name "opentaps" was originally an acronym for "Open Source Enterprise
Applications Suite."

opentaps is available as free software under the GNU Affero GPL v3, and also with a
commercial license that allows you to modify the source code without the obligation to make
your customizations public.

The opentaps Professional Edition is offered under a commercial license with a support
package provided by Open Strategies that includes updates for opentaps releases, access to
opentaps support issue tracker, guaranteed response time of four hours during support hours
and remote assistance via VNC and SSH for $600 per user per year.

Dolibarr. Designed for small companies and individual traders, Dolibarr is an open source
business suite that includes ERP and CRM functionality. It can be installed on a local
machine or accessed from a server, and is also offered as a software-as-a-service (SaaS)
solution with a free trial period by Dolibarr preferred partners including DoliCloud and
ATM Consulting.

The software is highly modular, and main modules include sales and purchase management,
stock management, bank account management, orders management and shipping
management. Additional paid-for modules are also available from the official DoliStore.

ERP5. (Python, Zope) ERP5 covers accounting, customer relationship management, trade,
warehouse management, shipping, invoicing, human resource management, product design,
production and project management.

ERPNext. (MySQL, Python) ERPNext is an ERP solution similar to Openbravo and Odoo,
aimed at small and medium sized businesses

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LedgerSMB. (PostgreSQL, Perl) LedgerSMB is a free double entry accounting and ERP
software system aimed at small and medium sized businesses.

Advantage

In many cases, when you are implementing an open source ERP system for a large
organization, a new interface shell is created outside of the core system to meet the business
needs and line-up with the company organization. With commercial systems the existing
interface is customized which makes upgrades difficult to say the least. A further reason that
open source ERP is used is because you own the system and its full source content, there is
no lock-in or dependency on the vendor, and you are more free on how you are going to
implement the software. You can do this all by yourself or hire a provider.

Further, it saves your business costs in the long run. When an open source ERP is used there
are typically no license or software maintenance costs. In many cases, the external
consultants and programmer fees are lower. Most open source ERP software systems can use
open source databases and operating systems, giving you a license-free option. Commercial
ERP systems often need expensive commercial databases and operating systems.

Large company IT departments appreciate that an open source ERP has is of higher quality,
because many independent, often passionate developers have looked at it, criticized its code,
and contributed enhancements. Competition between developers is very common in open
source software and improves quality. Open source is often built on other open source
projects and database models, so open source does not re-invent the wheel, which is what
often happens in commercial systems.

Open source ERP systems are easier to upgrade when customizations are properly
implemented (outside the base system) than with commercial systems, and upgrades can
therefore be done much more often (every three months to monthly) without disruption of the
production system.

Disadvantage

Often documentation of the commercial system is better for the standard supplied system too.
However, if you are going to modify the user interface anyway, this documentation will not
help you much when you need to customize the system to suit your business needs. Another
disadvantage could be that open source ERP is still relatively new in large organizations.
Because of this, it is sometimes difficult to convince an accounting department or other
decision maker to use open source software. Lastly, auditors may not be familiar with a new
interface and do not know the system yet. However, training can be easily implemented to
avoid these complications when deploying a new system.

Conclusion: Thus we studied various open source ERP‟s.

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DEPT. OF COMP. ENGG. ERP and SCM LAB MANUAL

Lab Review Questions:

1. What's in a name? Or why "xTuple"?

2. What's wrong with OpenMFG? Does this mean you're scaling back your
commitment to manufacturers?
3. How can I get new features added into the product?
4. Why would I pay for one of the commercial Editions when PostBooks is out there for
free? And there's an open source community working on PostBooks. Won't the child
surpass the parent at some point?
5. What is the best free open source ERP solution available?
6. How Extensive Is the Use of Open Source Accounting Systems?
7. Is There a Framework for Understanding the Maturity of Open Source Accounting
Systems?
8. Why Are Open Source Accounting Systems Important?
9. What Are the Licensing Differences Between Open Source and Proprietary Software?
10. What Is the Relevance of OSS to Accounting and Enterprise Systems?

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EXPERIMENT NO. 5

Aim: Study of Cloud ERP

Theory:

Cloud ERP is an approach to enterprise resource planning (ERP) that makes use of cloud
computing platforms and services to provide a business with more flexible business process
transformation.

Enterprise resource planning is an industry term for the broad set of activities that helps a
business manage the important parts of its business such as purchasing and inventory
management. ERP applications can also include modules for the finance and human capital
management aspects of a business.

To some industry experts, the promise of cloud computing is that it will provide an
opportunity for business to completely transform how it uses and pays for information
technology. For example, cloud sourcing legacy ERP applications might eliminate the need
for a business to purchase the necessary server and storage hardware and maintain it on site
which, in turn, has the potential reduce operational expenditures (OPEX). Other industry
experts, however, point out that the problems associated with ERP software deployments --
such as integration problems between ERP modules and a company‟s legacy systems --
would simply transfer to the cloud.

The hope is that ERP software developed specifically for cloud computing environments will
include new feature sets that were simply not possible using old technology. Until then, cloud
ERP is seen as being good for startup organizations and new business divisions within an
existing company.

Microsoft Dynamics NAV

Microsoft Dynamics NAV 2016, formerly Microsoft Dynamics Navision, provides growing
small and midsized businesses a robust and comprehensive cost-effective ERP software
solution to support their manufacturing processes.

Microsoft Dynamics NAV 2016 is a global ERP system built specifically for small to midsize
manufacturing businesses who need to gain greater control over their supply chains,
production lines, corporate financials, and overall operations. With a simple and fast
implementation process, MS Dynamics NAV can be up and running in a very short time for
your organization. Manufacturers can now better drive success and achieve their goals with
Microsoft Dynamics NAV ERP software suite, an integrated, adaptable business management
solution that streamlines and automates business processes. Microsoft Dynamics NAV also
delivers business intelligence and robust reporting by connecting customers, employees, and
partners across a worldwide global marketplace. Flexible, with an easy-to-use intuitive
design, Microsoft Dynamics NAV gives people the tools to fuel business
productivity and enables them to make confident decisions and the ability to respond

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quickly to new marketplace opportunities.

Conclusion: Thus we studied cloud ERP using Microsoft Dynamics NAV.

Lab Review Questions:

1) What are the advantages of using cloud computing?

2) Explain what is the use of “EUCALYPTUS” in cloud computing?
3) Mention some open source cloud computing platform databases?
4) Mention the name of some large cloud providers and databases?
5) Explain the difference between cloud and traditional datacenters?
6) What are the business benefits involved in cloud architecture?
7) In cloud architecture what are the building blocks?
8) In cloud what are the optimizing strategies?
9) How buffer is used to Amazon web services?
10) Mention what is Hypervisor in cloud computing and their types?

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EXPERIMENT NO. 6

Aim: Business process agility

Theory:
Dynamic business environment requires firms to adjust, redesign and adapt their processes
swiftly, or to be agile’. Business process agility, a combination of speed and flexibility has
increasingly become essential for survival for today‟s organizations. Whether it is for a
simple reduction of costs or to attain and/or maintain competitiveness in marketplace,
whether it is to overcome the unanticipated changes in the regulatory environment, or to
increase firm‟s responsiveness to the external environment, speed and flexibility are critical
characteristics today‟s firms aspire to build. Information technologies today are considered a
significant digital platform and are expected to facilitate agility in their processes and
systems.

Business processes are central to the way organizations and individuals interact with one
another and are now considered the most valuable corporate asset. In order to position
themselves better to respond to market dynamics and changing business conditions, firms
must be able to adapt quickly by changing and reconfiguring the necessary business
processes nimbly. The need to improve customer service, to bring new products and services
rapidly to market, and to reduce cost inefficiencies have been pushing business processes to
the top of business organizations’ priority list.

Agility is a complex concept and analyzed across economics, operations and supply chain
management, strategic management and information technology/information systems
disciplines. Built from the literature on flexibility in Economics, the concept of ‘agility’ was
further developed in agile manufacturing and now in strategic management and information
systems literature. Flexibility refers to the capability of an organization to move from one
task to another and adapt to expected changes and has dimensions such as product mix
flexibility, volume flexibility, scheduling flexibility, routing flexibility, product flexibility,
delivery flexibility. Agility merges the four competitive dimensions cost, quality,
dependability, and flexibility and moves beyond them with an ability to respond rapidly to
any unexpected changes in market and business environment.

Though process performance objectives such as cost, quality and dependability are implicit in
the term ‘agility, the two concepts of flexibility and speed are particularly important and
inherent to the definition of business process agility. In the past quality, cost efficiency and
speeding up the business processes were sufficient to maintain competitive edge. Contrary to
traditional view in which performance objectives such as cost, quality, dependability,
flexibility and speed were considered at times conflicting, the new concept of ‘agility’
inherently postulates the possibility of simultaneously excelling in all the performance
objectives with the help of existing and emerging information technologies/systems. While
the first two deals with managing relationships with customers and partners, operational

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agility refers to the ability to rapidly redesign existing processes. Modifying the
definitions by Raschke & David, Sambamurthy et al, and Meade et al, business process
agility in this study, is defined as the ability to dynamically modify, reconfigure and/or
deploy a business process (and its various components) to accommodate required and
potential needs of the firm.

The present day requirements of a cost-effective and responsive enterprise make it difficult
for enterprises to stick to well-defined static business processes. It may be necessary for a
firm to rapidly join or leave an inter-enterprise business process in a dynamic collaborative
environment in order to respond to changes in markets, suppliers, customer requirements and
different stakeholders.

Agility and Enterprise Systems

Role of IT and agility Information technologies/systems today are considered a significant

business platform for building and delivering this critical business need, ‘agility‟. While
some researchers in the past argued that IT does not matter, other researchers have stated that
it is not a matter of IT itself, but a matter of how IT is managed. As pointed by researchers,
digitized platforms of business processes and knowledge, such as enterprise resource
planning (ERP), customer relationship management (CRM), and supply chain management
(SCM) allow firms to rapidly detect changes, flexibly alter their market strategies and react
quickly to customers’ changing requirements, and help them form value chain collaborations
with partners for establishing niche markets. Thus, information technologies (IT) help build
process agility not only for building new information-based products and services but also by
streamlining processes and building inter organizational relationships.

Several information technology vendors and consultants have now made it their key strategy
to help organizations to achieve agility. For example, IBM‟s ‘on-demand’ vision, HP‟s
‘adaptive enterprise’ strategy, Oracle‟s on-demand solutions, and SAP‟s ‘agile enterprise’
strategy are all focusing on the ‘agility’ dimension and provide a variety of technical and
organizational solutions to achieve a good level of business agility.

Information Technologies (IT) such as enterprise system could have an enabling as well as a
disabling role in building business process agility. IBM‟s ‘on-demand’ vision promises
information on demand through a combination of software, hardware, services and industry
solutions and delivers agility, optimization of operations and customer service. Its
WebSphere integration software solutions are promised to deliver the requisite business
process agility to business managers and help its business managers to respond to dynamic
business conditions. IBM‟s information on-demand vision offers unified trusted view of
information, and enable the organization to leverage the information better.

With Service Oriented Architecture (SOA) as the foundation platform, Cognos and other
IBM products will enable its customers to have agility to respond quickly to rapidly changing

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business needs. HP‟s adaptive enterprise strategy promises to help organizations to

successfully position themselves and thrive in an environment of change. It aims to help
organizations to move to an ideal state of agility, with the help of its products, services,
solutions and technologies such as HP Partitioning Continuum(HP 2008). By helping the
organizations to successfully synchronize its business and IT infrastructure, its adaptive
enterprise strategy is expected to help companies in achieving IT consolidation, business
information optimization, adaptive and flexible infrastructure, minimum total cost of
ownership and capitalize on change (HP 2008).

SAP, with its new Enterprise Service Oriented Architecture (ESOA) promises to provide the
platform for increasing business agility through higher user productivity, greater reliability,
reduced total cost of ownership and increased IT responsiveness.

Conclusion: Thus we studied business process agility.

Lab Review Questions:

1. What do you mean by agility in context of business?

2. Explain Agile business processes.
3. Explain BPR in short.
4. What do you mean by Business Process Management?
5. What do you mean by metadata? Explain its importance in business processes.
6. Explain advantage of using SOA.
7. Mention ERP software‟s supporting agility.
8. Explain business process dynamics.
9. What do you mean by CRM?
10. Explain TQM in short.

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EXPERIMENT NO. 7

Aim: Study of SCM MODEL

Theory:

SCM

Supply Chain Management (SCM) is the management of a network of interconnected

businesses involved in the ultimate provision of product and service packages required by
end customers (Harland, 1996).Supply Chain Management spans all movement and storage
of raw materials, work-in-process inventory, and finished goods from point of origin to point
of consumption (supply chain).

Another definition is provided by the APICS Dictionary when it defines SCM as the "design,
planning, execution, control, and monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance globally."

Historical developments in Supply Chain Management

Six major movements can be observed in the evolution of supply chain management studies:
Creation, Integration, and Globalization, Specialization Phases One and Two, and SCM 2.0.

1. Creation Era

The term supply chain management was first coined by a U.S. industry consultant in the early
1980s. However, the concept of a supply chain in management was of great importance long
before, in the early 20th century, especially with the creation of the assembly line. The
characteristics of this era of supply chain management include the need for large-scale

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changes, re-engineering, downsizing driven by cost reduction programs, and widespread

attention to the Japanese practice of management.

2. Integration Era

This era of supply chain management studies was highlighted with the development of
Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by
the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to
develop into the 21st century with the expansion of internet-based collaborative systems.
This era of supply chain evolution is characterized by both increasing value-adding and cost
reductions through integration.

3. Globalization Era

The third movement of supply chain management development, the globalization era, can be
characterized by the attention given to global systems of supplier relationships and the
expansion of supply chains over national boundaries and into other continents. Although the
use of global sources in the supply chain of organizations can be traced back several decades
(e.g., in the oil industry), it was not until the late 1980s that a considerable number of
organizations started to integrate global sources into their core business. This era is
characterized by the globalization of supply chain management in organizations with the goal
of increasing their competitive advantage, value-adding, and reducing costs through global
sourcing.

4. Specialization Era—Phase One: Outsourced Manufacturing and Distribution

In the 1990s industries began to focus on “core competencies” and adopted a specialization
model.
Companies abandoned vertical integration, sold off non-core operations, and outsourced
those functions to other companies. This changed management requirements by extending
the supply chain well beyond company walls and distributing management across specialized
supply chain partnerships.

This transition also re-focused the fundamental perspectives of each respective organization.
OEMs became brand owners that needed deep visibility into their supply base. They had to
control the entire supply chain from above instead of from within. Contract manufacturers
had to manage bills of material with different part numbering schemes from multiple OEMs
and support customer requests for work -in-process visibility and vendor-managed inventory
(VMI).

The specialization model creates manufacturing and distribution networks composed of

multiple, individual supply chains specific to products, suppliers, and customers, who work
together to design, manufacture, distribute, market, sell, and service a product. The set of
partners may change according to a given market, region, or channel, resulting in a
proliferation of trading partner environments, each with its own unique characteristics and
demands.

5. Specialization Era—Phase Two: Supply Chain Management as a Service

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Specialization within the supply chain began in the 1980s with the inception of transportation
brokerages, warehouse management, and non-asset-based carriers and has matured beyond
transportation and logistics into aspects of supply planning, collaboration, execution and
performance management.

At any given moment, market forces could demand changes from suppliers, logistics
providers, locations and customers, and from any number of these specialized participants as
components of supply chain networks. This variability has significant effects on the supply
chain infrastructure, from the foundation layers of establishing and managing the electronic
communication between the trading partners to more complex requirements including the
configuration of the processes and work flows that are essential to the management of the
network itself.

Supply chain specialization enables companies to improve their overall competencies in the
same way that outsourced manufacturing and distribution has done; it allows them to focus
on their core competencies and assemble networks of specific, best-in-class partners to
contribute to the overall value chain itself, thereby increasing overall performance and
efficiency. The ability to quickly obtain and deploy this domain-specific supply chain
expertise without developing and maintaining an entirely unique and complex competency in
house is the leading reason why supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has
taken root primarily in transportation and collaboration categories. This has progressed from
the Application Service Provider (ASP) model from approximately 1998 through 2003 to the
On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS) model
currently in focus today.

6. Supply Chain Management 2.0 (SCM 2.0)

Building on globalization and specialization, the term SCM 2.0 has been coined to describe
both the changes within the supply chain itself as well as the evolution of the processes,
methods and tools that manage it in this new "era".

Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase
creativity, information sharing, and collaboration among users. At its core, the common
attribute that Web 2.0 brings is to help navigate the vast amount of information available on
the Web in order to find what is being sought. It is the notion of a usable pathway. SCM 2.0
follows this notion into supply chain operations. It is the pathway to SCM results, a
combination of the processes, methodologies, tools and delivery options to guide companies
to their results quickly as the complexity and speed of the supply chain increase due to the
effects of global competition, rapid price fluctuations, surging oil prices, short product life
cycles, expanded specialization, near-/far- and off-shoring, and talent scarcity.

Components of supply chain management integration

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The management components of SCM

The SCM components are the third element of the four-square circulation framework. The
level of integration and management of a business process link is a function of the number
and level, ranging from low to high, of components added to the link (Ellram and Cooper,
1990; Houlihan, 1985). Consequently, adding more management components or increasing
the level of each component can increase the level of integration of the business process link.
The literature on business process re-engineering, buyer-supplier relationships, and SCM
suggests various possible components that must receive managerial attention when managing
supply relationships. Lambert and Cooper (2000) identified the following components:

  Planning and control 

  Work structure 
  Organization structure 
  Product flow facility structure 
  Information flow facility structure 
  Management methods 
  Power and leadership structure 
  Risk and reward structure 
 Culture and attitude 

However, a more careful examination of the existing literature, leads to a more

comprehensive understanding of what should be the key critical supply chain components,
the "branches" of the previous identified supply chain business processes, that is, what kind
of relationship the components may have that are related to suppliers and customers.
Bowersox and Closs states that the emphasis on cooperation represents the synergism leading
to the highest level of joint achievement (Bowersox and Closs, 1996). A primary level
channel participant is a business that is willing to participate in the inventory ownership
responsibility or assume other aspects of financial risk, thus including primary level
components (Bowersox and Closs, 1996). A secondary level participant (specialized) is a
business that participates in channel relationships by performing essential services for
primary participants, including secondary level components, which support primary
participants. Third level channel participants and components that support the primary level
channel participants and are the fundamental branches of the secondary level components
may also be included.

Consequently, Lambert and Cooper's framework of supply chain components does not lead
to any conclusion about what are the primary or secondary (specialized) level supply chain
components (see Bowersox and Closs, 1996, p. 93). That is, what supply chain components
should be viewed as primary or secondary, how should these components be structured in
order to have a more comprehensive supply chain structure, and how to examine the supply
chain as an integrative one.

Reverse Supply Chain

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Reverse logistics is the process of managing the return of goods. Reverse logistics is also
referred to as "Aftermarket Customer Services". In other words, any time money is taken
from a company's warranty reserve or service logistics budget one can speak of a reverse
logistics operation.

Supply chain systems and value

Supply chain systems configure value for those that organise the networks. Value is the
additional revenue over and above the costs of building the network. Co-creating value and
sharing the benefits appropriately to encourage effective participation is a key challenge for
any supply system. Tony
Hines defines value as follows: “Ultimately it is the customer who pays the price for service
delivered that confirms value and not the producer who simply adds cost until that point”

Conclusion: Thus we studied SCM Model.

Lab Review Questions:

1. Define "supply chain".

2. Enlist different SCM softwares.
3. Define SCM 2.0.
4. The sequence of a typical manufacturing supply chain is
a. Storage–Supplier–manufacturing–storage–distributor–retailer–customer
b. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
c. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d. Supplier–Storage-manufacturing–storage– retailer–distributor–customer B
5. VMI stands for?
6. Why Reverse logistics is required?
7. What do you mean by inbound distribution?
8. Activities which are undertaken before the final operation are termed as?
9. Selecting suppliers and purchasing items is called?
10. What do you mean by Supply Chain Sustainability?

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EXPERIMENT NO. 8

Aim: Implementing Business Intelligence

Theory:

Business intelligence (BI) can be described as "a set of techniques and tools for the
acquisition and transformation of raw data into meaningful and useful information for
business analysis purposes". The term "data surfacing" is also more often associated with BI
functionality. BI technologies are capable of handling large amounts of unstructured data to
help identify, develop and otherwise create new strategic business opportunities.

The goal of BI is to allow for the easy interpretation of these large volumes of data.
Identifying new opportunities and implementing an effective strategy based on insights can
provide businesses with a competitive market advantage and long-term stability. BI
technologies provide historical, current and predictive views of business operations. Common
functions of business intelligence technologies are reporting, HYPERLINK
"https://en.wikipedia.org/wiki/Online_analytical_processing" online analytical processing,
HYPERLINK "https://en.wikipedia.org/wiki/Analytics" analytics, HYPERLINK
"https://en.wikipedia.org/wiki/Data_mining" data mining, HYPERLINK
"https://en.wikipedia.org/wiki/Process_mining" process mining, HYPERLINK
"https://en.wikipedia.org/wiki/Complex_event_processing" complex event processing,
business performance management, benchmarking, text mining, predictive analytics and
prescriptive analytics.

BI can be used to support a wide range of business decisions ranging from operational to
strategic. Basic operating decisions include product positioning or pricing. Strategic business
decisions include priorities, goals and directions at the broadest level. In all cases, BI is most
effective when it combines data derived from the market in which a company operates
(external data) with data from company sources internal to the business such as financial and
operations data (internal data). When combined, external and internal data can provide a
more complete picture which, in effect, creates an "intelligence" that cannot be derived by
any singular set of data. Amongst myriad uses, BI tools empower organizations to gain
insight into new markets, assess demand and suitability of products and services for different
market segments and gauge the impact of marketing efforts.
Business intelligence is made up of an increasing number of components including:

 Multidimensional aggregation and allocation 


 Denormalization, tagging and standardization 

 Realtime reporting with analytical alert 

 A method of interfacing with unstructured data sources 

 Group consolidation, budgeting and rolling forecasts 

 Statistical inference and probabilistic simulation 


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 Key performance indicators optimization 


 Version control and process management 

 Open item management 
Data Warehousing

Often BI applications use data gathered from a data warehouse (DW) or from a data mart,
and the concepts of BI and DW sometimes combine as "BI/DW" or as "BIDW". A data
warehouse contains a copy of analytical data that facilitates decision support. However, not
all data warehouses serve for business intelligence, nor do all business intelligence
applications require a data warehouse.

To distinguish between the concepts of business intelligence and data warehouses, Forrester
Research defines business intelligence in one of two ways:

1. Using a broad definition: "Business Intelligence is a set of methodologies, processes,

architectures, and technologies that transform raw data into meaningful and useful
information used to enable more effective strategic, tactical, and operational insights
and decision-making." Under this definition, business intelligence also includes
technologies such as data integration, data quality, data warehousing, master-data
management, text- and content-analytics, and many others that the market sometimes
lumps into the "Information Management" segment. Therefore, Forrester refers to
data preparation and data usage as two separate but closely linked segments of the
business-intelligence architectural stack.
2. Forrester defines the narrower business-intelligence market as, "...referring to just the
top layers of the BI architectural stack such as reporting, analytics and dashboards."

Comparison with Business analytics

Business intelligence and business analytics are sometimes used interchangeably, but there
are alternate definitions. One definition contrasts the two, stating that the term business
intelligence refers to collecting business data to find information primarily through asking
questions, reporting, and online analytical processes. Business analytics, on the other hand,
uses statistical and quantitative tools for explanatory and predictive modeling.

In an alternate definition, Thomas Davenport, professor of information technology and

management at Babson College argues that business intelligence should be divided into
querying, reporting, Online analytical processing (OLAP), an "alerts" tool, and business
analytics. In this definition, business analytics is the subset of BI focusing on statistics,
prediction, and optimization, rather than the reporting functionality.

BI Portals

A Business Intelligence portal (BI portal) is the primary access interface for Data
Warehouse (DW) and Business Intelligence (BI) applications. The BI portal is the user's first

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impression of the DW/BI system. It is typically a browser application, from which the user
has access to all the individual services of the DW/BI system, reports and other analytical
functionality. The BI portal must be implemented in such a way that it is easy for the users of
the DW/BI application to call on the functionality of the application.

The BI portal's main functionality is to provide a navigation system of the DW/BI

application. This means that the portal has to be implemented in a way that the user has
access to all the functions of the DW/BI application.

The most common way to design the portal is to custom fit it to the business processes of the
organization for which the DW/BI application is designed, in that way the portal can best fit
the needs and requirements of its users.

The BI portal needs to be easy to use and understand, and if possible have a look and feel
similar to other applications or web content of the organization the DW/BI application is
designed for (consistency).
The following is a list of desirable features for web portals in general and BI portals in
particular:
Usable
User should easily find what they need in the BI tool.
Content Rich
The portal is not just a report printing tool, it should contain more functionality such
as advice, help, support information and documentation.
Clean
The portal should be designed so it is easily understandable and not over-complex as
to confuse the users
Current
The portal should be updated regularly.
Interactive
The portal should be implemented in a way that makes it easy for the user to use its
functionality and encourage them to use the portal. Scalability and customization give
the user the means to fit the portal to each user.
Value Oriented
It is important that the user has the feeling that the DW/BI application is a valuable
resource that is worth working on.
Market Place

There are a number of business intelligence vendors, often categorized into the remaining
independent "pure-play" vendors and consolidated "mega vendors" that have entered the
market through a recent trend of acquisitions in the BI industry. The business intelligence
market is gradually growing.

Some companies adopting BI software decide to pick and choose from different product

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offerings (best-of-breed) rather than purchase one comprehensive integrated solution (full-
service).
Industry-specific

Specific considerations for business intelligence systems have to be taken in some sectors
such as governmental banking regulations. The information collected by banking institutions
and analyzed with BI software must be protected from some groups or individuals, while
being fully available to other groups or individuals. Therefore, BI solutions must be sensitive
to those needs and be flexible enough to adapt to new regulations and changes to existing
law.

Conclusion: Thus we studied business Intelligence.

Lab Review Questions:

1. Define Data Warehouse and Data Mining.

2. What do you mean by Business Intelligence?
3. Explain difference between Data Warehousing and Business Intelligence.
4. What are benefits of Business Intelligence?
5. What is Benchmarking in Business?
6. Explain ETL process in short.
7. What is data purging?
8. What are different stages of data mining?
9. Enlist the various business intelligence tools.
10. Explain the dashboard in business intelligence.

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