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CHAPTER 3
PARTIES IN THE ERP MARKET PLACE
1. Trend APA saja Yg terjadi pd supplier ERP SYSTEM? Mengapa?

The figure reveals the main competitive trends in the market.

1. Firstly, it shows that SAP is by far the largest ERP supplier. It is not only growing
in absolute revenue, but it also absorbs most of the growth of the total market.
2. The second trend in the market is consolidation of suppliers. In 2002, Peoplesoft,
Oracle and JD Edwards were top five players in the market. The three companies now
all operate within the Oracle conglomerate. Despite the large acquisitions, Oracle has
not been able to seriously challenge the number one position of SAP:
3. The third trend in the market is the saturation of the market for ERP in larger
organizations (forced suppliers to focus on the other market segments). ERP supplier
Sage is an English company that targets the small and medium-sized enterprises (or:
SME) segment in the market. The company is successful in this segment, and both its
revenue and its profit have grown significantly over the past ten years. Unlike Saga,
Microsoft entered the SME market segment using large profits in other markets for
investments in ERP. Initially, Microsoft did not succeed in setting up a profitable
business.

2. Mengapa tjd kompetisi Yg sangat kejam diantara ERP developer?

Competition in the ERP market is fierce. An example of this can be found in Figure 3.2.
One of the reasons for the fierce competition in the market is the fact that each of the
suppliers offer mature and complete ERP systems. Despite this, differences do exist
in the various offerings (license fees and the breadth of the best practices that the ERP
system support)
3. APA saja pendekatan dlm implementasi ERP System? Jelaskan!

1. The implementation of an ERP system available on the market, but this is not
the only way to realize data integration and implement best practices. Organizations
can also build their own ERP system, and traditionally many organizations have done
this. However, this is a very labor-intensive approach, and there will not be many
organizations that can afford to employ the large teams of software developers that
are required for this approach.
2. It is also possible that an organization has such unique processes that a best practice
approach would destroy a competitive advantage. For companies that beat their
competitors with their sophisticated manufacturing processes, using the best practices
of ERP may not be a wise decision. For such companies’ ERP is not the obvious
solution. Building a tailor-made solution, integration of a specialized module
into a standardized ERP system, or procurement of a specialized application
may make more sense.

4. APA manfaat punya partner dlm implementasi system ERP? Jelaskan!

For those organizations that do decide to buy a commercially available ERP system, it is
essential to build a good relationship with the ERP supplier. The relationship will
last several years: the implementation horizon of an ERP system is at least one to three
years, after which the maintenance phase will follow. This maintenance phase will
normally last at least five years. Once the ERP system of a specific supplier has been
implemented, a vendor lock in has been created. Because of the long implementation
horizon, it is not possible to change ERP supplier overnight. Once the decision to
implement ERP has been taken, a diligent ERP supplier selection process is therefore
strongly recommended.

5. Ada brp model implementasi system ERP? Jelaskan!

Three ways of modelling exist:

o Configuration
It’s setting parameters in the ERP system to suitable values. These parameters can be
very simple)
o Localization
It’s changing the system to comply with requirements for a certain geographical or legal
area (adding a company logo to a purchase order or an invoice)
o Adaptation
It’s extending the functionality of the ERP system by programming.
6. Sebutkan bentuk2 kontrak user-partner dlm implementasi ERP? Jelaskan!

Several contractual forms exist for implementation services.

1. Time-material.
The company that wants to implement ERP, hires ERP implementation consultants for an
agreed hourly rate supplemented with reimbursement of travel and other expenses. The
implementation partner provides its services on the basis of best effort and has no
incentive to finalize the implementation as quickly as possible. The risk of exceeding the
implementation budget or going beyond the planned implementation time lies completely
with the principal.
2. Fixed-price-fixed-date.
The implementation partner agrees to finalize the implementation before a certain date
and for an agreed fixed sum. This contractual form has one important downside: in order
to be effective, the exact outcome of the implementation has to be specified in advance
and agreed contractually, which for an ERP implementation is complex.
3. Bonus-malus contract.
The implementation is carried out cheaper or faster, the implementation partner can claim
a bonus. If on the other hand the implementation becomes more expensive than the
target budget or is delivered late, the principal can claim a malus. In this way, the risks of
a deviation from planned costs and delivery date are shared between principal and
implementation partner, and both parties have an incentive to finalize the implementation
on time and within budget.

7. Sebutkan kategori2 partner dlm implementasi ERP? JELASKAN!

Several categories of implementation partners exist.

1. Firstly, some ERP suppliers offer implementation services in addition to their licenses;
Intentia used to do this for Movex, Oracle does this for Oracle Financials, and SAP has
experimented with this.
2. Secondly, the large consultancy firms that employ thousands of management
consultants often have their practices for implementation services for one or several
ERP systems. Examples of these companies are Accenture and IBM Business
Consultants.
3. Thirdly, there are smaller consultancy companies that have between ten and one
hundred consultants specialized in implementation services for one specific ERP
supplier. Examples of these companies in Europe are Magnum Management
Consultants, who are specialized in SAP, and Quistor, who are specialized in JD
Edwards.
Finally, there are many one-man’s businesses who implement ERP systems, sometimes
directly for companies that are implementing ERP, but more often as subcontractors for
one of the larger parties.
8. Apa saja Yg hrs diperhatikan dlm memilih partner & services mereka dlm
implementasi ERP? Jelaskan!

For companies that contract an ERP partner it is very important to have crystal-clear
conditions.

1. The costs of the implementation partner constitute fifty to ninety percent of the total
ERP implementation costs. These costs are also hard to control, and ERP
implementation costs often exceed budgeted amounts.
2. The quality of the implementation partner has a large impact on the success of the
implementation project. It is therefore important to make a well-considered choice for
a specific implementation partner, based on costs, continuity, personal fit and quality.

Implementation partners’ services differ in both quality and price.

1. The price depends on the breadth of the required services. For international
ERP implementations it may be relevant that the implementation consultants use a
uniform implementation approach and at the same time make sure the implementation
is compliant with local requirements. Parties than can manage these world-wide
implementations are not the cheapest in the market. For large implementations,
sizeable teams of consultants are required that are only available at the large
consultancy firms. Parties that can manage large implementations generally also have
higher fees.
2. The quality of the services often depends more on the experience and
knowledge of the individual consultant than on the company by which this
person is employed. If there is a good fit between an individual implementation
consultant and the implementing organization, it may be worthwhile to close a longer-
term contract.
 CHAPTER 4
ERP AND IT ARCHITECTURE
1. Sebutkan bagian" arsitektur logic dr ERP! Jelaskan masing"!

a) The first element, the interaction, takes care of the exchange of information
between the ERP system and its environment. An example of such interaction is
data entry by a human user of the system. The interaction element also looks
after the exchange of information with other systems, such as the Electronic Fund
Transfer with the computer system of a bank.
b) The second element, the ERP database, takes care of the storage of all data
that are required for the correct functioning of the ERP system. All data-related
operations, which are designing, adding, updating, selecting and deleting data,
are managed by the ERP database.
c) The third element of the logical architecture of an ERP system, the business
logic, makes sure that business processes are properly supported by the ERP
system. This element consists of a large number of best practices, that are either
programmed in the system or can be configured.
2. Sebutkan elements dr a physical IT architecture! Jelaskan masing"!

In order to describe physical architectures for IT systems this section uses a simple
classification that exists of six elements: permanent storage (mostly disk space),
temporary storage (also known as internal memory), the central processing unit (or:
CPU), data entry devices, data output devices, and the data transportation
network.

1. Firstly, there is permanent data storage, which secures that data are kept without
the need for electricity or other power sources. In general, data are stored on disks, but
tapes, CD’s, DVD’s and USB devices are also suitable for permanent data entry
2. Temporary data storage, also called internal memory, consists of memory cards.
When compared to permanent storage, internal memory is fast, but also expensive. It
is also more vulnerable for intentional and unintentional power interruption, as the
data are lost when the computer is powered down.
3. The transaction processor in an IT architecture is normally indicated with terms like
processor, central processing unitor CPU. A CPU processes information by applying
calculations to it or by rearranging it. CPU’s consist of semiconductors on silicon
wafers.
4. The input and output devices are those elements in an IT architecture that take care of
the exchange of information between people and computers. On the data entry side,
this inefficient way of data exchange was soon replaced by keyboards. Since the
introduction of Windows, the mouse has become an indispensable device for data
entry. In the past years, a variety of data entry devices has been developed, such as
bar code readers, text scanners, iris scanners, and electronic pens.
5. On the data output side, that is information exchange from computers to people,
punched cards were in the first instance replaced by a computer monitor on which
green characters were displayed on a black background. Today, computer monitors
can display an infinite number of colors in very high resolutions. Other output devices
that are available are printers, plotters, blackberries, smart phones and smart watches.
6. When the various elements of a physical IT architecture are on different locations,
information has to be transported between those locations. Data networks take care
of this. The capacity and speed of such networks have gone through enormous growth.
It is not so long ago that a speed of 9.6 Kilobit per second over a telephone line was
acceptable, while today a speed of 11 Megabit is not unusual. In parallel, the cost of
network capacity has come down dramatically. A private company network with an
availability of considerably less than 100 percent used to cost millions of Euros
annually, while transportation of data over the Internet is now already possible for less
than one hundred Euro per year.
3. Sebutkan elemen client + server arsitektur! Jelas Masing"!

When an ERP system is installed on a client-server architecture,

1. The ERP elements are distributed over the physical IT architecture. In Figure
4.4 an ERP system is mapped on a client-server architecture. The ERP database is
installed on the disk space of a server. It is possible to store local data on a local
server, while organization-wide data are stored on a central server. In this case, a
distributed ERP database is used, and a replication mechanism is required to
synchronize the common data.
2. The two other ERP elements, the business logic and the interaction, are executed
at the client-side. The calculations and data manipulations in the ERP business logic
are handled by the internal memory and the CPU of the user’s PC. The ERP interaction
element is also available on the side of the individual user and consists of a monitor, a
keyboard, a mouse and a printer.
4. Sebutkan elemen ERP pd a browser architecture! Jelaskan masing

In Figure 4.5 a schematic overview is presented of the mapping of the ERP elements on a
browser architecture.

1. The ERP database and ERP business logic are installed on a server, and this
server is made accessible through a network. This network can be public Internet, a
private company-owned network, or a combination of both. When public Internet is
used, this is also called cloud computing.
2. Users can activate the interaction by starting their browser, connecting to the web-
page from which the ERP server can be reached and logging in to the ERP system. The
browser can be installed on a PC on the premises of the organization, but also at the
home of the user, on a smart phone or on a PC in an Internet cafe somewhere abroad.