Chapter 8

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Response 1
## Concepts in Enterprise Resource Planning (ERP) - Chapter Eight Summary
### RFID, Business Intelligence (BI), Mobile Computing, and the Cloud
#### Objectives
After this chapter, you will be able to:
1. Understand what RFID is and how it helps in logistics and sales.
2. Know what Business Intelligence (BI) is and see examples of its uses.
3. Learn how in-memory computing improves BI.
4. Recognize the importance of mobile apps for businesses.
5. Understand cloud computing and its role in ERP.
6. See how service-oriented architecture (SOA) has changed ERP.
7. Learn about Web services and the components of NetWeaver.
8. Understand what Software as a Service (SaaS) is, along with its pros and cons.

#### Introduction
- ERP systems help companies do tasks better than without these systems.
- Traditionally, ERP systems run on a company’s own computers and focus on
business transactions.
- New technologies like RFID add more data to ERP systems.
- BI turns ERP data into useful information.
- Cloud and mobile technologies are changing how ERP data is stored and
accessed.

#### RFID Technology

- RFID (Radio Frequency Identification) is great for tracking items in supply
chains.
- RFID tags are small devices attached to products to track them.
- RFID readers find these tags using radio waves.
- Advantages: No need for direct sight, and they work in tough environments.
- Big companies like Walmart use RFID to improve supply chains.

#### Business Intelligence (BI)

- BI involves tools and technologies to analyze large data sets to help in decision-
making.
- Includes tools for data mining and querying, often interactive and visual.
- BI is growing in use across various industries.
- Helps set and measure strategic goals, ensure compliance, and manage large
data (data warehousing).

#### In-Memory Computing

- Traditional data warehouses use complex structures for analysis, which need
technical skills and limit flexibility.
- In-memory computing is faster because it accesses data directly from memory,
not hard disks.
- This method can handle large data sets without needing complex structures.
- Used by big companies like SAP and Oracle for analyzing vast amounts of data
from various sources.

#### Mobile Computing

- Increasing use of smartphones and tablets means businesses need mobile apps
for different systems.
- Mobile devices help employees access and provide information on the go,
crucial for business operations.

#### Cloud Computing

- Cloud computing delivers software over the Internet, accessible via web
browsers or simple apps.
- It’s the latest development in computing and the Internet.
- SAP and other companies use cloud computing to improve ERP systems.
- Cloud services make it easier to integrate and access data over the Internet.

#### SOA and Web Services

- SOA allows for easy addition of new applications, making businesses more
adaptable.
- Web services enable different systems to share data.
- SAP’s NetWeaver is a platform that supports web services, making diverse
applications work together seamlessly.

#### Software as a Service (SaaS)

- SaaS delivers software via the Internet, hosted by the provider, and accessed
through web browsers.
- Example: SAP Business ByDesign offers full ERP via the cloud for small to
medium-sized companies.
- Pros: Lower initial costs, faster setup, lower support costs.
- Cons: Security concerns, internet speed issues, less flexibility, technical focus.

#### NPV Calculation for ERP Implementation

- Exercise: Compare costs of setting up an ERP system in-house vs. using SaaS.
- Use Net Present Value (NPV) to determine the best investment over five years.

#### Summary
- RFID and mobile technologies are increasing data available to businesses.
- BI tools are becoming more advanced with in-memory computing.
- Cloud computing and SOA offer new ways to store and access ERP data.
- SaaS allows companies to use ERP systems without large initial investments,
but there are risks to consider.

Response 1.5
## Concepts in Enterprise Resource Planning (ERP) - Chapter Eight Summary

### RFID, Business Intelligence (BI), Mobile Computing, and the Cloud

#### Objectives
After this chapter, you will be able to:
1. Understand what RFID is and how it helps in logistics and sales.
2. Know what Business Intelligence (BI) is and see examples of its uses.
3. Learn how in-memory computing improves BI.
4. Recognize the importance of mobile apps for businesses.
5. Understand cloud computing and its role in ERP.
6. See how service-oriented architecture (SOA) has changed ERP.
7. Learn about Web services and the components of NetWeaver.
8. Understand what Software as a Service (SaaS) is, along with its pros and cons.

#### Introduction
- ERP systems help companies do tasks better than without these systems.
- Traditionally, ERP systems run on a company’s own computers and focus on
business transactions.
- New technologies like RFID add more data to ERP systems.
- BI turns ERP data into useful information.
- Cloud and mobile technologies are changing how ERP data is stored and
accessed.

#### RFID Technology

- RFID (Radio Frequency Identification) is great for tracking items in supply
chains.
- RFID tags are small devices attached to products to track them.
- RFID readers find these tags using radio waves.
- Advantages: No need for direct sight, and they work in tough environments.
- Big companies like Walmart use RFID to improve supply chains.

#### Business Intelligence (BI)

- BI involves tools and technologies to analyze large data sets to help in decision-
making.
- Includes tools for data mining and querying, often interactive and visual.
- BI is growing in use across various industries.
- Helps set and measure strategic goals, ensure compliance, and manage large
data (data warehousing).

#### In-Memory Computing

- Traditional data warehouses use complex structures for analysis, which need
technical skills and limit flexibility.
- In-memory computing is faster because it accesses data directly from memory,
not hard disks.
- This method can handle large data sets without needing complex structures.
- Used by big companies like SAP and Oracle for analyzing vast amounts of data
from various sources.

#### Mobile Computing

- Increasing use of smartphones and tablets means businesses need mobile apps
for different systems.
- Mobile devices help employees access and provide information on the go,
crucial for business operations.

#### Cloud Computing

- Cloud computing delivers software over the Internet, accessible via web
browsers or simple apps.
- It’s the latest development in computing and the Internet.
- SAP and other companies use cloud computing to improve ERP systems.
- Cloud services make it easier to integrate and access data over the Internet.

#### SOA and Web Services

- SOA allows for easy addition of new applications, making businesses more
adaptable.
- Web services enable different systems to share data.
- SAP’s NetWeaver is a platform that supports web services, making diverse
applications work together seamlessly.

#### Software as a Service (SaaS)

- SaaS delivers software via the Internet, hosted by the provider, and accessed
through web browsers.
- Example: SAP Business ByDesign offers full ERP via the cloud for small to
medium-sized companies.
- Pros: Lower initial costs, faster setup, lower support costs.
- Cons: Security concerns, internet speed issues, less flexibility, technical focus.
#### NPV Calculation for ERP Implementation
- Exercise: Compare costs of setting up an ERP system in-house vs. using SaaS.
- Use Net Present Value (NPV) to determine the best investment over five years.

#### Summary
- RFID and mobile technologies are increasing data available to businesses.
- BI tools are becoming more advanced with in-memory computing.
- Cloud computing and SOA offer new ways to store and access ERP data.
- SaaS allows companies to use ERP systems without large initial investments,
but there are risks to consider.

Response 2
## Concepts in Enterprise Resource Planning - Chapter Eight Summary
### RFID, Business Intelligence (BI), Mobile Computing, and the Cloud
---
### Objectives
After completing this chapter, you will be able to:
1. **Define RFID**: Understand what Radio Frequency Identification (RFID) is and
its role in logistics and sales.
2. **Define Business Intelligence (BI)**: Learn what BI is and see examples of
how it is used in businesses.
3. **Explain In-Memory Computing**: Understand how in-memory computing
changes the use of BI.
4. **Discuss Mobile Applications**: Recognize the importance of mobile apps to
businesses.
5. **Describe Cloud Computing**: Understand what cloud computing is and why
it's becoming important for ERP providers.
6. **Explain Service-Oriented Architecture (SOA)**: Learn how SOA has changed
ERP development.
7. **Describe Web Services**: Outline the unique components of SAP's
NetWeaver.
8. **Define Software as a Service (SaaS)**: Understand SaaS, its advantages,
and disadvantages.
### Introduction
- **ERP Systems**: Enterprise Resource Planning (ERP) systems help companies
do tasks that can't be done well without them.
- **Traditional ERP**: These systems usually run on a company's own computers
and focus on managing business transactions.
- **New Technologies**: Technologies like RFID increase the data in ERP systems,
BI turns data into valuable information, and cloud computing and mobile
technologies change how ERP data is stored and delivered.

### Radio Frequency Identification (RFID) Technology

- **What is RFID?**: RFID is a technology used to track items in a supply chain.
- **RFID Tags**: Small devices attached to products, consisting of a
microprocessor and an antenna.
- **RFID Readers**: Devices that locate items with RFID tags by emitting radio
waves and receiving signals back.
- **Advantages**:
- No need for direct line-of-sight.
- Can withstand tough environmental conditions.
- **Uses**: Walmart uses RFID for supply chain management; pharmaceutical
firms and medical centers also use RFID for tracking products and devices.

### Business Intelligence (BI) and Business Analytics

- **What is BI?**: BI includes applications and technologies that extract and
analyze large amounts of data to aid in decision-making.
- **BI Tools**: Includes data-mining and querying tools, often interactive and
visual.
- **Growth**: Significant growth in the BI market due to its usefulness across
industries.
- **Applications**:
- **Enterprise Performance Management**: Setting and measuring strategic
goals.
- **Governance, Risk, and Compliance**: Ensuring ethical and legal functioning.
- **Data Warehousing**: Storing large volumes of data for analysis.
- **Enterprise Information Management**: Managing information as a corporate
asset.
### In-Memory Computing
- **Data Warehouses**: Traditionally, data in warehouses is structured as
multidimensional cubes.
- **Challenges**: Requires technical expertise and restricts data analysis
flexibility.
- **In-Memory Computing**: Accessing data directly from memory is faster than
from a hard disk.
- **Storage**: Uses data compression to store large volumes of data without
needing complex structures.
- **Big Data**: Solutions from SAP and Oracle analyze vast amounts of data
from various sources quickly.

### Mobile Computing

- **Growing Use**: Increased use of smartphones and tablets means businesses
need mobile apps for different systems.
- **Benefits**: Mobile devices provide employees with information on the go,
crucial for business operations.

### Cloud Computing

- **What is Cloud Computing?**: Delivery of software over the Internet,
accessible via web browsers or simple apps.
- **Development**: Represents the latest stage in computing and Internet
development.
- **SAP's Internet Strategy**:
- **1996**: SAP introduced Internet Transaction Server (ITS) with Microsoft.
- **1999**: mySAP.com combined e-commerce solutions with SAP's ERP
applications.
- **2000**: Enhanced mySAP.com with electronic marketplaces and corporate
portals.
- **2004**: SAP introduced NetWeaver, a platform supporting business
transactions over the Internet.

### Service-Oriented Architecture (SOA) and Web Services

- **SOA**: Allows easy addition of new applications, making businesses more
adaptable.
- **Web Services**: Enable different systems to share data.
 - **SAP's NetWeaver**: A web services platform allowing various applications to
work together seamlessly.
- **Benefits**: Quick addition of new applications and use of open standards.
- **Challenges**: Implementing SOA is difficult, and return on investment is
hard to measure.

### NetWeaver Tools and Capabilities

- **Modules**:
- **Enterprise Portal**: Provides users with access to all their work on a single
screen.
- **Mobile Infrastructure**: Allows users to work with data on mobile devices.
- **Business Intelligence**: Works with any database management software.
- **Master Data Management**: Ensures data consistency within a company's
SAP system.
- **Exchange Infrastructure**: Allows different applications to share data.

### Software as a Service (SaaS)

- **What is SaaS?**: A software delivery model where the software is hosted by a
provider and accessed via a web browser.
- **Example**: SAP Business ByDesign, a full ERP system delivered via the cloud,
suitable for small to medium-sized companies.
- **Advantages**:
- **Initial Affordability**: Lower cost to start using the software.
- **Shorter Implementation Time**: Faster setup without worrying about
technical issues.
- **Lower Support Costs**: No need for additional IT personnel.
- **Disadvantages**:
- **Security**: Concerns about data safety.
- **Bandwidth/Response Time**: Potential issues with internet speed.
- **Flexibility**: Less customization available.
- **No Frills**: Basic features compared to traditional ERP systems.
- **Technical Focus**: More technical than business-focused.

### Exercise 8.2: ERP Implementation Cost Comparison

- **Option 1**: Buying Computers and Software
- Costs: Database server, application server, PCs, maintenance, licensing,
installation, training, consulting, network and database administrator.
- **Option 2**: Using SaaS
- Costs: PCs, maintenance, software through SaaS, training.
- **Calculate NPV**: Compare the costs over five years using Net Present Value
(NPV) to determine the best investment.

### Summary
- **Data Growth**: Technologies like RFID and smartphones are increasing the
amount of data for businesses to process.
- **BI Tools**: Growing in sophistication, providing greater speed and flexibility.
- **Mobile Computing**: Increasing use of ERP and BI data on mobile devices.
- **Cloud Computing**: Delivery of software via the Internet, making ERP more
accessible.
- **Web Services and SOA**: Enable different applications to communicate and
work together.
- **SaaS**: Allows companies to use ERP without large initial investments, but
with some risks.

This summary provides an overview of the key concepts and technologies

discussed in Chapter Eight of the "Concepts in Enterprise Resource Planning,
Fourth Edition" textbook.

Response 3
Sure, let's include the missing dates and provide more detailed explanations
where needed.
## Concepts in Enterprise Resource Planning - Chapter Eight Summary
### RFID, Business Intelligence (BI), Mobile Computing, and the Cloud
--
### Objectives
After completing this chapter, you will be able to:
1. **Define RFID**: Understand what Radio Frequency Identification (RFID) is and
its role in logistics and sales.
2. **Define Business Intelligence (BI)**: Learn what BI is and see examples of
how it is used in businesses.
3. **Explain In-Memory Computing**: Understand how in-memory computing
changes the use of BI.
4. **Discuss Mobile Applications**: Recognize the importance of mobile apps to
businesses.
5. **Describe Cloud Computing**: Understand what cloud computing is and why
it's becoming important for ERP providers.
6. **Explain Service-Oriented Architecture (SOA)**: Learn how SOA has changed
ERP development.
7. **Describe Web Services**: Outline the unique components of SAP's
NetWeaver.
8. **Define Software as a Service (SaaS)**: Understand SaaS, its advantages,
and disadvantages.

### Introduction
- **ERP Systems**: Enterprise Resource Planning (ERP) systems help companies
perform tasks efficiently that would be challenging without them.
- **Traditional ERP**: These systems usually run on a company's own computers
and focus on managing business transactions.
- **New Technologies**: Technologies like RFID increase the data in ERP systems,
BI turns data into valuable information, and cloud computing and mobile
technologies change how ERP data is stored and delivered.

### Radio Frequency Identification (RFID) Technology

- **What is RFID?**: RFID is a technology used to track items in a supply chain.
- **RFID Tags**: Small devices attached to products, consisting of a
microprocessor and an antenna.
- **RFID Readers**: Devices that locate items with RFID tags by emitting radio
waves and receiving signals back.
- **Advantages**:
- No need for direct line-of-sight.
- Can withstand tough environmental conditions.
- **Uses**:
- Walmart uses RFID for supply chain management.
- Pharmaceutical firms and medical centers use RFID for tracking products and
devices, like at Spectrum Health’s Meijer Heart Center for stents.

### Business Intelligence (BI) and Business Analytics

- **What is BI?**: BI includes applications and technologies that extract and
analyze large amounts of data to aid in decision-making.
- **BI Tools**: Includes data-mining and querying tools, often interactive and
visual.
- **Growth**: Significant growth in the BI market due to its usefulness across
industries.
- **Applications**:
- **Enterprise Performance Management**: Setting and measuring strategic
goals.
- **Governance, Risk, and Compliance**: Ensuring ethical and legal functioning.
- **Data Warehousing**: Storing large volumes of data for analysis.
- **Enterprise Information Management**: Managing information as a corporate
asset.

### In-Memory Computing

- **Data Warehouses**: Traditionally, data in warehouses is structured as
multidimensional cubes.
- **Challenges**: Requires technical expertise and restricts data analysis
flexibility.
- **In-Memory Computing**: Accessing data directly from memory is faster than
from a hard disk.
- **Storage**: Uses data compression to store large volumes of data without
needing complex structures.
- **Big Data**: Solutions from SAP and Oracle analyze vast amounts of data
from various sources quickly.

### Mobile Computing

- **Growing Use**: Increased use of smartphones and tablets means businesses
need mobile apps for different systems.
- **Benefits**: Mobile devices provide employees with information on the go,
crucial for business operations.

### From Internet-Enabled to Cloud Computing

- **Cloud Computing**: Delivery of software over the Internet, accessible via web
browsers or simple apps.
- **Development**: Represents the latest stage in computing and Internet
development.
- **SAP's Internet Strategy**:
- **1996**: SAP introduced Internet Transaction Server (ITS) with Microsoft.
- **May 1999**: SAP announced mySAP.com, a new strategy to combine e-
commerce solutions with SAP's ERP applications.
- **2000**: Enhanced mySAP.com with electronic marketplaces and corporate
portals.
- **2004**: SAP introduced NetWeaver, a platform supporting business
transactions over the Internet.

### Service-Oriented Architecture (SOA) and Web Services

- **SOA**: Allows easy addition of new applications, making businesses more
adaptable.
- **Web Services**: Enable different systems to share data.
- **SAP's NetWeaver**: A web services platform allowing various applications to
work together seamlessly.
- **Benefits**: Quick addition of new applications and use of open standards.
- **Challenges**: Implementing SOA is difficult, and return on investment is
hard to measure.

### NetWeaver Tools and Capabilities

- **Modules**:
- **Enterprise Portal**: Provides users with access to all their work on a single
screen.
- **Mobile Infrastructure**: Allows users to work with data on mobile devices.
- **Business Intelligence**: Works with any database management software.
- **Master Data Management**: Ensures data consistency within a company's
SAP system.
- **Exchange Infrastructure**: Allows different applications to share data.

### Software as a Service (SaaS)

- **What is SaaS?**: A software delivery model where the software is hosted by a
provider and accessed via a web browser.
- **Example**: SAP Business ByDesign, a full ERP system delivered via the cloud,
suitable for small to medium-sized companies.
- **Released in 2007**: SAP Business ByDesign was first released.
- **Advantages**:
 - **Initial Affordability**: Lower cost to start using the software.
- **Shorter Implementation Time**: Faster setup without worrying about
technical issues.
- **Lower Support Costs**: No need for additional IT personnel.
- **Disadvantages**:
- **Security**: Concerns about data safety.
- **Bandwidth/Response Time**: Potential issues with internet speed.
- **Flexibility**: Less customization available.
- **No Frills**: Basic features compared to traditional ERP systems.
- **Technical Focus**: More technical than business-focused.

### Exercise 8.2: ERP Implementation Cost Comparison

- **Option 1**: Buying Computers and Software
- Costs: Database server, application server, PCs, maintenance, licensing,
installation, training, consulting, network and database administrator.
- **Option 2**: Using SaaS
- Costs: PCs, maintenance, software through SaaS, training.
- **Calculate NPV**: Compare the costs over five years using Net Present Value
(NPV) to determine the best investment.
- **NPV Calculation**: In Excel, use =NPV (hurdle rate percentage, range of
values).
- **Hurdle Rate**: Minimum acceptable rate of return on a project.

### Summary
- **Data Growth**: Technologies like RFID and smartphones are increasing the
amount of data for businesses to process.
- **BI Tools**: Growing in sophistication, providing greater speed and flexibility.
- **Mobile Computing**: Increasing use of ERP and BI data on mobile devices.
- **Cloud Computing**: Delivery of software via the Internet, making ERP more
accessible.
- **Web Services and SOA**: Enable different applications to communicate and
work together.
- **SaaS**: Allows companies to use ERP without large initial investments, but
with some risks.
This summary provides an overview of the key concepts and technologies
discussed in Chapter Eight of the "Concepts in Enterprise Resource Planning,
Fourth Edition" textbook, including the important dates and details.