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Category: Topic 2
Improving Systems Development
Focus Question: How is Enterprise Resource Planning integrating cloud-based technologies to support business outcomes?
Enterprise resource planning (ERP) is constantly evolving to meet the needs of businesses and the advancement of technology. In Faith et al., “Enterprise resource planning applications have historically missed the mark in multiple ways” (Faith et al., 2020). Historically, businesses were at the mercy of ERP applications where the company adapted to the ERP application rather than the application being adapted to the business. While there has been some customization within the ERP vendor’s proprietary technology, there has been a lack of alignment with growing demands and the ability to integrate with other business systems.
One trend is the increased business desire for cloud-based and mobile ERP. In part, increasing hybrid and remote work would allow for easier access and data sharing by system users. For organizational leaders moving to a cloud and mobile-based ERP would allow for faster real-time data reports on business operations. Additionally, it improves customer services for the end-user of an organization’s services. Most recently, I had a company provide a quote for custom closets and built-in desks. The designer discussed the company’s switch from computer-aided design (CAD) software to cloud-based. In this switch, the business can quickly provide customers with accurate real-time quotes on their desired projects. Real-time pricing improves customer satisfaction and can allow organizations to utilize sales tactics to obtain a signed contract.
In the shift towards mobile and cloud-based ERP, there was an increased desire for user-centric designs to improve usability and enhance user experience. In the example I mentioned earlier, CAD can be a complex system for users to learn. Businesses want to cut training costs and improve retention, so an ERP system needs to focus on user experience. Additionally, companies seek to make an external component of their systems for their customers. An example is software for property management companies that allows an internal interface for them but an external one for homeowners to see real-time data on their property.
Cloud-based systems are trending towards a more composable architecture or at least adopting composable principles. Organizations can implement modules such as inventory management, customer relationship management, human resources, etc. into one standard interface through a composable cloud-based system. This would allow the cloud-based software to be tailored to unique business processes while maintaining the benefits of cloud-based ERP applications. ERP providers must continue to embrace composable architecture principles in the growing demand. They must also provide standardized application programming interfaces and integration capabilities to integrate different modules and external applications seamlessly.
References
Faith, T., Tori, D., Schenck, P. (2020). The Future of ERP Is Composable. Gartner. ID G00723613
Guay, M., et. al. (2020). 2020 ERP Predicts: Unprecedented Changes In ERP Enable Transformation. Gartner. G00451351
How the Application Architecture Layer is Evolving
Focus Question: How is Artificial Intelligence (AI) supporting/affecting the Application Architecture within Enterprise Systems?
The expansion of artificial intelligence (AI) in today’s technology awakens a new era of possibilities for enterprise architecture; however, with that comes caution. Automating routine tasks, enabling predictive analytics, enhancing customer experience, and enabling intelligent decision-making can bring efficiency and lower costs to organizations. As noted by researcher Mehran Rowshan, with organizations, “decisions to manufacture, distribute, price, promote… [are] carried out in information black holes often powered by gut instinct, static rules or, in the best of circumstances, through historical analysis.” AI can transform this through precise analysis by evaluating historical trends and future predictions, helping mitigate business risk and reduce lost opportunities.
The challenge Enterprise Architects face is dealing with the constant change and adaptation of new technologies within enterprise systems. Most often enterprise architecture teams see to identify certain applications that will provide overlapping capabilities to eliminate duplicative capabilities, while improving business processes and enhancing employee productivity. Utilizing the right applications across the organization can also establish governance and standardization to support business strategies and outcomes. When making such decisions within an organization, architects must consider several factors such as cost, productivity, security, and efficiency to adapt their business models. However, AI is changing how we can utilize and integrate applications within enterprise systems today.
AI can manage multiple application layer components in enterprise technology, but for this blog, we will highlight the integration of application development and maintenance. Some examples of things AI can help with is:
- AI-powered coding assistants can help developers write cleaner and more efficient code by analyzing code and providing suggestions.
- AI can help automate the testing process. This would speed up the testing phase, improve test coverage and enhance overall software quality.
- AI can help with quick bug detection, vulnerability assessment and troubleshooting for developers.
Overall, AI can streamline and enhance application development and maintenance processes within enterprise architecture.
Figure 1: Architecture Layers. (n.d.). Enterprise Architecture
References:
Architecture Layers. (n.d.). Enterprise Architecture. https://enterprisearchitecture.harvard.edu/domains
Brown, A. (2021, November 9). How Enterprise AI Architecture Is Transforming Every Industry From Commerce To Wealth Management, And Beyond. Forbes. https://www.forbes.com/sites/anniebrown/2021/11/08/how-enterprise-ai-architecture-is-transforming-every-industry-from-commerce-to-wealth-management-and-beyond/?sh=1d6f48cc782d
Settle, M. (2023, May 20). Managing enterprise application architectures in 2020: the game has changed! CIO. https://www.cio.com/article/219765/managing-enterprise-application-architectures-in-2020-the-game-has-changed.html
Top 3 Trends in Application Architecture That Enable Digital Business. (2019, October). Gartner. https://www.gartner.com/document/3970797?ref=d-linkShare