ITAM Handbook: Enterprise Software

This chapter of the ITAM Handbook describes how enterprise software is built and deployed: its architecture, the main business systems, typical on-premise systems by industry, and why organisations keep legacy systems running.

Software Architecture

In the early stages of enterprise software development, client-only software dominated the landscape, where applications operated solely on individual user machines.

As the needs of businesses evolved and technology advanced, software solutions expanded beyond single-user systems to embrace multi-tiered architectures and service-oriented architectures (SOA).

This progression allowed for more complex and interconnected applications that could better serve the requirements of growing enterprises while improving scalability, reliability, and maintainability.

Enterprise Software Architecture Evolution

• Client-only software: Early-stage, applications operated solely on individual user machines
  • Drawbacks: Difficulty scaling, high maintenance costs, increased risk of data loss
• Monolithic systems with centralised databases: Later stage, a single database for all application data
• Shift towards a modular, distributed approach
  • Middleware platforms: Abstraction layer between application code and underlying infrastructure
  • Distributed databases: Oracle RAC, Microsoft SQL Server AlwaysOn, IBM DB2 pureScale

Large Enterprise Architecture Patterns

• Multi-tiered architecture: Presentation layer, business logic layer, data layer
  • Benefits: Clear separation of concerns, easier maintenance, and scalability
• Service-oriented architecture (SOA): Self-contained, modular components providing specific functionality
  • Benefits: Reuse of services, easier maintenance, and modification over time

On-premise Software Components

• Databases: Oracle, Microsoft SQL Server, IBM DB2
  • Features: Data security, backup and recovery, data replication for high availability
• Middleware technologies: IBM WebSphere, Oracle WebLogic
  • Function: Manage communication between different system components

Future Trends:

• Cloud-based solutions and microservices architecture

Business Systems

Enterprise software supports complex business processes, such as finance, supply chain management, and customer relationship management. These systems provide a range of benefits to businesses, including increased efficiency, better data management, and improved decision-making.

Here are some key business systems that are typically part of enterprise software:

1. Enterprise Resource Planning (ERP) Systems. ERP systems are designed to manage all aspects of a business’s operations, including finance, human resources, and supply chain management. These systems provide a centralised database that can be accessed by all departments within the organisation, improving communication and collaboration.
2. Customer Relationship Management (CRM) Systems. CRM systems are designed to manage customer interactions and data, such as sales leads, customer support tickets, and marketing campaigns. These systems provide businesses with insights into customer behaviour and preferences, which can be used to improve customer service and retention.
3. Supply Chain Management (SCM) Systems. SCM systems are designed to manage the flow of goods and services from suppliers to customers. These systems give businesses real-time visibility into inventory levels, production schedules, and shipping logistics, helping to improve supply chain efficiency and reduce costs.

Examples of Business Systems

Some of the most popular business systems used in large companies include Oracle E-Business Suite, SAP Business Suite, and IBM Sterling Commerce. These systems offer a wide range of features and functionalities that enable companies to streamline their operations and improve their business processes.

Oracle E-Business Suite. Oracle EBS is an integrated suite of business applications that provides various features and functionalities for managing various business processes. It includes modules for financial management, human capital management, supply chain management, procurement, and project management. The system is built on top of an Oracle database and includes middleware components like Oracle Fusion Middleware.

SAP Business Suite. SAP Business Suite is a collection of integrated business applications that covers various business processes, including finance, human resources, procurement, logistics, and customer relationship management. It is built on top of the SAP NetWeaver platform, which includes a range of middleware components like SAP Process Integration and SAP Business Workflow. The system also includes a powerful database management system, SAP HANA.

IBM Sterling Commerce. IBM Sterling Commerce is a suite of business applications that help companies manage their supply chain operations. It includes modules for order management, inventory management, and fulfilment, as well as a range of other features for managing complex supply chain processes. The system is built on top of an IBM DB2 database and includes middleware components like IBM WebSphere Application Server.

Technical Implementation

These business systems are typically built on multi-layer architectures, including a database, middleware, and application layer. The database layer is responsible for storing the enterprise’s data, while the middleware layer provides a range of services like message queuing, transaction management, and security. The application layer includes the actual business applications that are used by end-users to perform various tasks.

Products like Oracle Database, Oracle WebLogic, Tuxedo, IBM WebSphere, and others play a crucial role in the technical implementation of business systems. These products provide the underlying infrastructure for the various business applications that an enterprise may use.

• For example, Oracle Database is a relational database management system (RDBMS) that is commonly used to store and manage large amounts of data. It provides the foundation for many enterprise applications, such as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM).
• Oracle WebLogic is an application server that provides a platform for developing and deploying enterprise Java applications. It supports various Java EE standards and provides clustering, high availability, and performance tuning features.
• Tuxedo is a middleware platform that provides a distributed transaction processing system for enterprise applications. It allows multiple applications to access data and services in a distributed environment while ensuring consistency and reliability.
• IBM WebSphere is another application server that provides a platform for developing and deploying Java applications. It supports various Java EE standards and provides high availability, security, and scalability features.

These products and others, like SAP NetWeaver, Microsoft Dynamics, and Salesforce, provide the technical foundation for business systems. They enable enterprises to manage and process vast amounts of data, automate business processes, and provide seamless integration between various business applications.

Systems by Industry

Please note that while some of these products have cloud-based versions, this list focuses on their on-premise deployment options.

Manufacturing (Basic Metal Production, Chemical Industries, FMCG, Forestry, Aeronautics, Automotive)

• SAP ERP: Offers specialised modules for different manufacturing industries, such as Production Planning (PP), Materials Management (MM), and Quality Management (QM).
  • Infrastructure components: SAP HANA or other supported databases, SAP NetWeaver application server, middleware, and integration with plant equipment and monitoring devices.
• Oracle E-Business Suite: Provides industry-specific modules for manufacturing, like Production Scheduling, Inventory Management, and Quality Management.
  • Infrastructure components: Oracle Database, Oracle WebLogic Server for the application server, Oracle Fusion Middleware, and integration with plant equipment and sensors.
• Infor M3: A comprehensive on-premise ERP solution designed for various manufacturing industries, offering modules like Manufacturing Execution, Supply Chain Management, and Quality Management.
  • Infrastructure components: SQL Server, IBM Db2, or other supported databases, application servers, middleware, and integration with plant equipment and sensors.
• Siemens Teamcenter: A widely-used on-premise Product Lifecycle Management (PLM) solution for aeronautical and automotive industries, offering modules like Requirements Management, Manufacturing Process Management, and Service Lifecycle Management.
  • Infrastructure components: SQL Server or Oracle Database, application servers, middleware, and integration with CAD/CAE tools and other engineering applications.

Commerce, Construction, and Professional Services

• Microsoft Dynamics GP: An on-premise ERP solution offering modules like Inventory Management, Sales Order Processing, and Customer Relationship Management.
  • Infrastructure components: Microsoft SQL Server, Internet Information Services (IIS) web server, and integration with point-of-sale (POS) systems and e-commerce platforms.
• SAP ERP: Offers specialized modules for commerce, construction, and professional services, such as Sales and Distribution (SD), Materials Management (MM), and Financial Accounting (FI).
  • Infrastructure components: SAP HANA or other supported databases, SAP NetWeaver application server, middleware, and integration with POS systems and e-commerce platforms.
• Oracle’s Primavera P6: A comprehensive on-premise project management solution designed for construction industry professionals.
  • Infrastructure components: Oracle Database, Oracle WebLogic Server for the application server, Oracle Fusion Middleware, and integration with CAD software and other construction-specific applications.
• Oracle FLEXCUBE: A comprehensive on-premise banking solution offering Core Banking, Corporate Banking, and Retail Banking modules.
  • Infrastructure components: Oracle Database, Oracle WebLogic Server for the application server, Oracle Fusion Middleware, and integration with payment systems and other financial applications.

Healthcare

• Cerner Millennium: A comprehensive on-premise Electronic Health Record (EHR) solution offering modules for Patient Management, Clinicals, and Revenue Cycle Management.
  • Infrastructure components: Oracle Database, application servers, middleware, and integration with medical devices and other healthcare-specific applications.
• Epic EHR: An on-premise Electronic Health Record (EHR) solution designed for healthcare organizations, offering modules like Patient Care, Billing, and Population Health.
  • Infrastructure components: InterSystems Caché database, application servers, middleware, and integration with medical devices and other healthcare-specific applications.

Education

• Ellucian Banner: A comprehensive on-premise Student Information System (SIS) solution offering Admissions, Financial Aid, and Course Scheduling modules.
  • Infrastructure components: Oracle Database, application servers, middleware, and integration with other educational applications.
• PeopleSoft Campus Solutions: An on-premise solution designed for higher education institutions, offering modules like Student Records, Admissions, and Financial Aid.
  • Infrastructure components: Oracle Database, Oracle WebLogic Server for the application server, Oracle Fusion Middleware, and integration with other educational applications.

Technology Providers

• IBM Rational DOORS: A comprehensive on-premise requirements management solution designed for technology providers, offering modules for requirements capture, traceability, and change management.
  • Infrastructure components: IBM Db2, application servers, middleware, and integration with other development tools.
• Jira Software: An on-premise project management and issue-tracking solution designed for technology providers, offering features like Agile boards, backlogs, and customizable workflows.
  • Infrastructure components: PostgreSQL, MySQL, or other supported databases, application servers, middleware, and integration with other development tools.
• Microsoft Team Foundation Server (TFS): An on-premise application lifecycle management (ALM) solution designed for technology providers, offering features like version control, agile planning, and continuous integration.
  • Infrastructure components: Microsoft SQL Server, Internet Information Services (IIS) web server, and integration with other development tools.

Legacy Systems

Legacy systems refer to outdated software or hardware that is still being used to support critical business functions. These systems often run on obsolete technology, such as outdated programming languages, hardware platforms, or operating systems, and may be difficult to maintain or integrate with modern systems. One of the main challenges with legacy systems is that they were often built to meet specific business needs, with custom code and configurations that were not well-documented. This means that when it comes time to upgrade or migrate to modern solutions, it can be difficult to replicate the same functionality, leading to potential data loss, compatibility issues, or system downtime.

Despite the challenges of maintaining legacy systems, many organisations are still required to keep them running due to compliance regulations. For example, the financial industry is subject to strict regulatory requirements, such as the Sarbanes-Oxley Act and the Payment Card Industry Data Security Standard (PCI DSS), which mandate the retention of certain types of financial data for a specified period of time. In order to comply with these regulations, organisations may be forced to continue using legacy systems that are no longer supported by their vendors, putting them at risk of security breaches and other issues. Additionally, some legacy systems may be critical to the operations of key business units, such as manufacturing or logistics, making it difficult to justify the cost and risk of upgrading to modern solutions.

In addition to compliance regulations and technical complexity, another factor that often leads organisations to maintain legacy systems is cost. While legacy systems may be outdated, they are often deeply ingrained in an organisation’s operations and replacing them can be a costly endeavor. Migrating to modern solutions requires significant investments in time, money, and resources, including training staff on new software, developing new interfaces, and potentially reconfiguring business processes.

Moreover, it can be difficult to justify the costs of migrating to modern solutions when the legacy systems are still functioning and meeting the organisation’s needs. In many cases, the costs of maintaining legacy systems can be lower than the costs of migrating to modern solutions, particularly when the organisation has optimised its processes around the legacy systems. This is especially true when considering the hidden costs of migration, such as downtime, data loss, and potential disruptions to business operations. Therefore, many organisations choose to continue using legacy systems and focus on maintaining and improving them, rather than undergoing the costly and risky process of migrating to modern solutions.