Emergence of SMAC

Enabled by Enterprise Cloud Computing, evolved from ERP

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 5th Wave of IT Architecture

AI/ML
enablement
Cloud ERP

Traditional ERP

Siloed
systems

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 Emergence of SMAC through ERP

Built around thousands of predefined business processes that reflect best

practices
Finance/accounting: General ledger, accounts payable, etc.
Human resources: Personnel administration, payroll, etc.
Manufacturing/production: Purchasing, logistics, inventory mgmt. etc.
Sales/marketing: Order processing, billing, sales planning, etc.

•To implement, firms:

 Select functions of system they wish to use
 Map business processes to IT processes (or vice-versa)
 Go for a Big bang rollout, Phased rollout, Parallel rollout, Hybrid approach
 53% firms used a phased approach, 35% used big bang, and 11% chose a
hybrid method (Source Panorama Consulting ERP Report)

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 Implementation plans vs Maturity

When to go for a Big bang rollout, Phased rollout, Parallel rollout, Hybrid approach

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 Enterprise systems feature a set
of integrated software modules
and a central database that
enables data to be shared by
many different business
processes and functional areas
throughout the enterprise

Hosted in the
cloud now!!

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 Why companies go for ERP implementation

Source: ERP’s SECOND WAVE - Deloitte Consulting

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 Supply Chain Network Upstream supply chain Downstream supply chain

• Procuring raw materials • Firm’s suppliers (primary, • Organizations and

• Transforming them into secondary and tertiary) processes responsible for
products and services • Processes for managing delivering products to
• Distributing the products relationships with them customers
and services • Managing contracts and • Reverse logistics?
e-market opportunities • Involves processing /
supplying the materials
collected during the
upstream stage to other
firms

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 Planning systems
•Modeling existing supply chain
•Demand planning
•Optimize sourcing, manufacturing plans
•Inventory management
•Identifying transportation modes

Execution systems
•Manage flow of products through distribution centers & warehouses
•Logistics and information flow between service providers
•Plant maintenance management

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 SMAC ERP Modules in OM & SCM in SAP

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 How Enterprise SCM systems deliver value?

Minimize inefficiencies in operations

• Can waste up to 25% of operating expenses

Just-in-time strategy

• Components arrive as they are needed

• Finished goods shipped after leaving assembly line

Monitor and manage safety stock

• Buffer for lack of flexibility in supply chain

Minimize the bullwhip effect

• Understand demand and supply more accurately

E.G. SAP’s Materials Management (SAP MM), SAP Plant Maintenance (SAP PM), SAP Logistics Execution (LE)

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CRM systems examine customers from a multifaceted perspective. These
systems use a set of integrated applications to address all aspects of the
customer relationship, including customer service, sales, and marketing.
Increased customer satisfaction

Reduced direct-marketing costs

More effective returns on marketing

Lower costs for customer acquisition and retention

Increased sales revenue from cross-selling and up-selling

Reduced churn rate (external churn & rotational churn)

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 SMAC CRM Modules
The major CRM software
products support business
processes in sales, service,
and marketing, integrating
customer information from
many different sources.
Included are support for
both the operational and
analytical aspects of CRM.
e.g. SAP’s 360 Customer CRM

Consists of
1. Operational CRM modules
2. Analytical CRM modules

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 CRM Evolution in SMAC era

EntCRM to Social CRM

On premise to SMAC

AI driven majorly

Knowledge co-creation

Focus on Collaboration

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• Microsoft Dynamics ERP has Finance, SCM, Project Ops, Commerce, Business Central
• Microsoft Dynamics CRM Core 3 modules: Marketing, Sales and Services

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 So what is Cloud Computing?

Cloud Computing is a general term used to describe a new class of

network based computing that takes place over the Internet
• A collection/group of integrated and networked hardware, software and internet
infrastructure (called a platform).
• Using the Internet for communication and transport provides hardware, software and
networking services to clients.
• In addition, the platform provides on demand services, that are always on, anywhere,
anytime and any place.
• Pay for use and as needed, elastic: scale up and down in capacity and functionalities.
• The hardware and software services are available to general public, enterprises,
corporations and businesses markets.

These platforms hide the complexity and the underlying infrastructure from users and
applications by providing very simple graphical interface or API (Application Programming Interface)

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 Cloud Computing by NIST
National Institute of Standards and Technology

On demand service: A consumer can unilaterally provision computing capabilities, such as server time
and network storage as needed automatically without interacting with the service provider

Broad network access. Capabilities are available over the network and accessed through standard
mechanisms that promote use by heterogeneous thin or thick client platforms (e.g. mobile phones,
laptops, and PDAs).

Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a
multitenant model, with different physical and virtual resources dynamically assigned and reassigned
according to demand.

Rapid elasticity. Capabilities can be ‘elastically’ provisioned and released, in some cases automatically,
to quickly scale in and scale out.

Measured Service. Cloud systems automatically control and optimise resource use by leveraging a
metering capability at some level of abstraction appropriate to the type of service (e.g. storage,
processing, bandwidth, and active user accounts)

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 Service vs Deployment Models

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 Fundamental Service models

Infrastructure as a service (IaaS):

• IaaS provides the raw materials of cloud computing, such as processing, storage and other forms of lower level network and
hardware resources in a virtual, on demand manner via the Internet.
• Differing from traditional hosting services with which physical servers or parts thereof are rented on a monthly or yearly
basis, the cloud infrastructure is rented as virtual machines on a peruse basis and can scale in and out dynamically, based on
customer needs.
Platform as a service (PaaS):
• Provides programming and execution environments to the user. A PaaS product acts as an integrated design, develop, test,
and deploy platform.
• The PaaS user can create applications using programming languages and APIs supported by the provider, and then directly
deploy the applications onto the provider’s cloud infrastructure within a few clicks.
• The PaaS user does not manage or control the underlying cloud infrastructure (including network, servers, operating systems,
or storage), but has control over the deployed applications and hosting environment configurations
• This reduces most of the system administration burden traditionally carried by the developers who can then concentrate on
more productive problems like application development and business problem solving
Software as a service (SaaS)
• SaaS provides users with complete turnkey applications through the Internet, even complex enterprise systems.
• Software or applications are hosted as services in the cloud and delivered via browsers once subscribed to by the user. This
approach can eliminate the need to install, run, and maintain the application on local computers.
• SaaS is known for its multi-tenant architecture in which all the users share the same single code base maintained by the
provider. Authentication and authorisation security policies are used to ensure the separation of user data.

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 Difference of focus of different service models
Source: Microsoft Azure, Destination CRM, GetSix & AWS

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 Some emerging cloud service models..
Data as a Service (DaaS): Provide on demand data and insights from data from different sources and after
performing different operations

Application Platform as a Service (aPaaS): development and deployment environments for application builders
& services

Business Process as a Service (BPaaS): Delivery of BPO services that are sourced from the cloud and constructed
for multi-tenancy. People are shared among clients.

Enterprise Integration PaaS (iPaaS): Enterprise integration solutions for cloud applications with on-premises and
legacy applications.

Cloud Integrated Infrastructure Service (CIIS): Enables on-cloud integration of older and new application
software and databases.

Personal Cloud as a Service: Digital content and services which gives users the ability to store, synchronize, and
share content across platforms, devices, and locations using network-attached storage (NAS)

Cloud Bursting Models: An application deployment model in which an application runs in a private cloud or data
center and bursts into a public cloud when the demand for computing capacity spikes.

10-02-2025 Lecture Presentation | © Dr. A. K. Kar What is XaaS (anything as a service)? 27

 Types of Cloud Deployment Models

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 Emergence of Digital Twins in Enterprise Systems
A digital twin is a virtual representation of an object or system that
spans its lifecycle, is updated from real-time data, and uses simulation,
machine learning and reasoning to help decision-making

Digital twins help organizations:

• Visualizing products in use, by real users, in real-time

• Building a digital thread, connecting disparate systems and
promoting traceability
• Refining assumptions with predictive analytics
• Troubleshooting far away equipment
• Managing complexities and linkage within systems-of-systems

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 Digital Twin Functionality

10-02-2025 Lecture Presentation | © Dr. A. K. Kar Source: Aris community 31

 Digital Twin Architecture

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 Issues in Brief

• The providers are the bigger tech companies

Use of cloud computing like Amazon and IBM, who may monopolise
the market.
means dependence on others
• Some argue that this use of supercomputers
and that could possibly limit is a return to the time of mainframe
flexibility and innovation: computing that the PC revolution was a
reaction against.

• It is still unclear how safe out-sourced data is

Security could prove to be a • when using these services ownership of data
is not always clear
big issue: • Accountability of information risk fallouts is
also a problem

• If your data is stored abroad whose policy do

you adhere to?
There are also issues relating • What happens if the remote server goes
to policy and access: down? How will you then access files?
• There have been cases of users being locked
out of accounts and losing access to data.

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 Linear
Approach

Agile SMAC ERP Iterative

Approach Project Delivery Approach

Component What about

Based project implementation

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 Service Oriented Architecture

SOA is an architecture in software design in which application components provide services to

other components over the Internet

Services are unassociated, loosely coupled units of functionality that are self-contained and are
like black-boxes to consumers

The principles of service-orientation are independent of any vendor, product or technology

SOA makes it easier for software components on computers connected over a network to
exchange data without human intervention

Services use defined protocols that describe how services pass and parse messages using
description metadata, which describes not only these services, but also the data that drives them

Often defined by Web Services Definition Language (WSDL) and XLM standards though there are
no specific standards which are accepted globally

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 Service Oriented Architecture

• SOA is described by metadata which have two criteria:

– The metadata should be provided in a form that software systems can use to configure dynamically by
discovery and incorporation of defined services, and also to maintain coherence and integrity.
– The metadata should be provided in a form that system designers can understand and manage with
reasonable cost and effort.
• The purpose of SOA is to allow users to combine large chunks of functionality to form ad hoc
applications built almost entirely from existing software services.

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 SOA Framework – 5 Horizontal Layers

Consumer Interface Layer – These are GUI for end users or apps accessing
apps/service interfaces.

Business Process Layer –Technical services representing business use-

cases/applications.

Services – Services are consolidated together for whole-enterprise in-

service inventory.

Service Components – The components used to build the services, such

as functional and technical libraries, technological interfaces, classes etc.

Operational Systems – This layer contains the data models, enterprise

data repository, technological platforms etc.

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 SOA Framework – 4 Vertical Layers

Integration Layer – starts with platform (protocols), data, service and

application integration, leading to enterprise functional integration

Quality of Service – Security, availability, performance etc. constitute the

quality of service parameters which are configured based on required SLAs.

Informational – provide business information and business rules.

Governance – IT strategy is governed to each horizontal layer to achieve

required operating and capability model.

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 Opportunities floating in the Cloud...

• It enables services to be used without any detailed

understanding of their infrastructure.
• Cloud computing works using economies of scale:
– It potentially lowers the outlay expense for start up companies, as
they would no longer need to buy their own software or servers.
– Cost would be by on-demand pricing.
– Vendors and Service providers claim costs by establishing an ongoing
revenue stream.
• Data and services are stored remotely but accessible
from “anywhere”.
• Lowers the divide in the consumption of ICT driven
services
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 SAP’s 360 Customer CRM

• A cloud based CRM solution focussing on providing insight,

customer interaction and execution in real time
• Positioned as a rapid deployment solution with fixed-priced
bundles of services & software for fast implementation

• Enables the following business activities

– Quicker, action-ready customer insights using analytics
– Cross-selling and up-selling with predictive analytics
– Personalized customer interactions, differentiated experiences, and
increased loyalty
– Enables centralized customer information management

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 SAP’s ERP Financials

Some of the functionalities are as follows:

– Streamline and automate financial operations – while ensuring
regulatory compliance and gaining real-time insight into overall
performance.
– Enhance core financial capabilities and generate accurate reports in
real time
– Capture processes from different applications – for a single version of
financial truth
– Ensure compliance with different accounting standards (US-GAAP and
local GAAP regulations)
– Integrate accounts payable and receivables, fixed assets, and other
sub-ledgers
– Generate balanced and reconcilable financial statements

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 SAP’s Materials Management (SAP MM)

The Materials Management module (SAP MM) covers functionalities

like master data management, system configuration, and transactions
to complete the Procure to Pay process.
This process map spans from MRP generated procurement proposals through final invoice receipt
and verification.

SAP Materials Management Components

• Vendor Master and Material Master data
• Consumption Based Planning
• Purchasing
• Inventory Management
• Evaluation of Materials
• Invoice Verification

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 SAP Plant Maintenance (SAP PM)

• Plant maintenance modules manage the overall maintenance

business processes and functions.
– Inspection: All measures which establish the actual condition of a
technical system
– Preventive maintenance: All measures which maintain the ideal
condition of a technical system
– Repair: All measures which restore the ideal condition of a technical
system
– Other measures taken using the maintenance organization

Through integration with other modules (for example, Materials Management, Production, Sales and
Distribution, Personnel Management, and Controlling) the data is always kept current and processes that are
necessary for Plant Maintenance and Customer Service are automatically triggered in other areas (for
example, a purchase requisition for non-stock material in the Materials Management/Purchasing area).

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 SAP Logistics Execution (LE)

• Logistics Execution (LE) is the name given to the logistics process

that covers shipping, transportation, and warehouse management.
• This module enables planning and managing the execution of
physical stock movements; supporting inbound, outbound,
internal, and reverse logistics processes within the enterprise and
business process.
– E.g. Delivery Processing, Parcel Shipping, Value added services (VAS) such
as packing and labelling

• Logistics Execution supports the following business processes:

– Goods receipt process with LE
– Goods issue process with LE
– Inbound and outbound deliveries
– Processes within the warehouse Curriculum Overview

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 Cloud Computing (simplified…)

• Core characteristics of cloud computing:

– Remotely hosted: Services or data are hosted on remote infrastructure.
– Ubiquitous: Services or data are available from anywhere.
– Commodified: The result is a utility computing model similar to traditional that of
traditional utilities like electricity - pay for what you want!

Other Common Characteristics: Essential Characteristics:

Massive Scale Resilient Computing On Demand Self-Service
Homogeneity Geographic Distribution Broad Network Access Rapid Elasticity

Resource Pooling Measured Service

Virtualization Service Orientation

Low Cost Software Advanced Security

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 Advantages of Cloud Computing
• Lower computer costs:
– You do not need a high-powered and high-priced computer to
run cloud computing's web-based applications.
– Since applications run in the cloud, not on the desktop PC, your
desktop PC does not need the processing power or hard disk
space demanded by traditional desktop software.
– When you are using web-based applications, your PC can be
less expensive, with a smaller hard disk, less memory, more
efficient processor...
– In fact, your PC in this scenario does not even need a CD or
DVD drive, as no software programs have to be loaded and no
document files need to be saved.

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 Advantages of Cloud Computing
• Improved performance:
– With few large programs hogging your computer's memory,
you will see better performance from your PC.
– Computers in a cloud computing system boot and run faster
because they have fewer programs and processes loaded into
memory…
• Reduced software costs:
– Instead of purchasing expensive software applications, you can
get most of what you need for free-ish!
• most cloud computing applications today, such as the Google Docs suite.
– better than paying for similar commercial software
• which alone may be justification for switching to cloud applications.

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 Advantages of Cloud Computing
• Instant software updates:
– Another advantage to cloud computing is that you are no longer
faced with choosing between obsolete software and high upgrade
costs.
– When the application is web-based, updates happen automatically
• available the next time you log into the cloud.
– When you access a web-based application, you get the latest version
• without needing to pay for or download an upgrade.

• Improved document format compatibility.

– You do not have to worry about the documents you create on your
machine being compatible with other users' applications or OSes
– There are potentially no format incompatibilities when everyone is
sharing documents and applications in the cloud.

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 Advantages of Cloud Computing
• Unlimited storage capacity:
– Cloud computing offers virtually limitless storage.
– Your computer's current 1 Tbyte hard drive is small compared
to the hundreds of Pbytes available in the cloud.
• Increased data reliability:
– Unlike desktop computing, in which if a hard disk crashes and
destroy all your valuable data, a computer crashing in the cloud
should not affect the storage of your data.
• if your personal computer crashes, all your data is still out there in
the cloud, still accessible
– In a world where few individual desktop PC users back up their
data on a regular basis, cloud computing is a data-safe
computing platform!

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 Advantages of Cloud Computing
• Universal document access:
– That is not a problem with cloud computing, because you do
not take your documents with you.
– Instead, they stay in the cloud, and you can access them
whenever you have a computer and an Internet connection
– Documents are instantly available from wherever you are
• Latest version availability:
– When you edit a document at home, that edited version is
what you see when you access the document at work.
– The cloud always hosts the latest version of your documents
• as long as you are connected, you are not in danger of having an outdated
version

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 Advantages of Cloud Computing
• Easier group collaboration:
– Sharing documents leads directly to better collaboration.
– Many users do this as it is an important advantages of cloud
computing
• multiple users can collaborate easily on documents and projects
• Device independence.
– You are no longer tethered to a single computer or network.
– Changes to computers, applications and documents follow you
through the cloud.
– Move to a portable device, and your applications and
documents are still available.

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 Disadvantages of Cloud Computing

• Requires a constant Internet connection:

– Cloud computing is impossible if you cannot connect to
the Internet.
– Since you use the Internet to connect to both your
applications and documents, if you do not have an
Internet connection you cannot access anything, even
your own documents.
– A dead Internet connection means no work and in areas
where Internet connections are few or inherently
unreliable, this could be a deal-breaker.

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 Disadvantages of Cloud Computing

• Does not work well with low-speed connections:

– Similarly, a low-speed Internet connection, such as that
found with dial-up services, makes cloud computing
painful at best and often impossible.
– Web-based applications require a lot of bandwidth to
download, as do large documents.
• Features might be limited:
– This situation is bound to change, but today many web-
based applications simply are not as full-featured as their
desktop-based applications.
• For example, you can do a lot more with Microsoft PowerPoint
than with Google Presentation's web-based offering

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 Disadvantages of Cloud Computing

• Can be slow:
– Even with a fast connection, web-based applications can
sometimes be slower than accessing a similar software
program on your desktop PC.
– Everything about the program, from the interface to the
current document, has to be sent back and forth from
your computer to the computers in the cloud.
– If the cloud servers happen to be backed up at that
moment, or if the Internet is having a slow day, you would
not get the instantaneous access you might expect from
desktop applications.

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 Disadvantages of Cloud Computing

• Stored data might not be secure:

– With cloud computing, all your data is stored on the cloud.
• The questions is How secure is the cloud?
– Can unauthorised users gain access to your confidential data?
• Stored data can be lost:
– Theoretically, data stored in the cloud is safe, replicated across
multiple machines.
– But on the off chance that your data goes missing, you have no
physical or local backup.
• Put simply, relying on the cloud puts you at risk if the cloud lets you
down.

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 Disadvantages of Cloud Computing

• HPC Systems:
– Not clear that you can run compute-intensive HPC applications
that use MPI/OpenMP!
– Scheduling is important with this type of application
• as you want all the VM to be co-located to minimize communication
latency!
• General Concerns:
– Each cloud systems uses different protocols and different APIs
• may not be possible to run applications between cloud based
systems
– Amazon has created its own DB system (not SQL 92), and
workflow system (many popular workflow systems out there)
• so your normal applications will have to be adapted to execute on
these platforms.

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