EXPLORING ENTERPRISE RESOURCE PLANNING (ERP) AND GEOGRAPHIC INFORMATION SYSTEM (GIS) INTEGRATION Jinal Patel, Student, MBA in Technology Management, CEPT University -
[email protected] Dr.Gayatri Doctor, Associate Professor, Faculty of Management, CEPT University -
[email protected]
KEY WORDS: Geographic Information System, GIS, Enterprise Resource Planning, ERP, Integration ABSTRACT: Today, integration of information systems has become a necessity due to the fact that the big companies have developed over time, mostly, separate information systems for automation of different activities. Enterprise Resource Planning (ERP) means, techniques and concepts for integrated management of business as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprise management.A Geographic Information System (GIS) is a technological tool for comprehending geography and making intelligent decisions. GIS organizes geographic data so that a person reading a map can select data necessary for a specific project or task, it is a location based information system. Many advances in technology have been observed in both ERP and GIS but no direct integration is observed due to the complexity involved in handling each system. Businesses are now striving to optimize their processes and improve efficiency with the ability to make informed decisions. By using ERP systems for workflow management and GIS for location based information management, that is, ERP – GIS Integration businesses can have more complete operational picture.This paper explores ERP –GIS Integration, its advantages with reference to a case study.
1.
Introduction
Enterprise Resource Planning (ERP) means, techniques and concepts for integrated management of business as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprise management.A Geographic Information System (GIS) is a technological tool for comprehending geography and making intelligent decisions. GIS organizes geographic data so that a person reading a map can select data necessary for a specific project or task, it is a location based information system. Many advances in technology have been observed in both ERP and GIS but no direct integration is observed due to the complexity involved in handling each system. Businesses are now striving to optimize their processes and improve efficiency with the ability to make informed decisions. By using ERP systems for workflow management and GIS for location based information management, that is, ERP – GIS Integration businesses can have more complete operational picture.
2. Enterprise Resource Planning (ERP) ERP is an abbreviation of Enterprise Resource Planning and means, techniques and concepts for integrated management of business as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprise management.(Alexis Leon, 2008) ERP is set of tools and processes that integrate department and functions across a company into one computer system. ERP system comprises function-specific modules designed to interact with the other modules. These modules are purchased based on what best meets specific needs and technical capabilities of an organization. Common ERP modules include product planning, finance, accounting, marketing, HR, etc. (Figure 1) The ERP Players in the market today are three tiered. (Figure 2) Tier I - Oracle, SAP, PeopleSoft, JD Edwards are widely used ERP systems in the market. Tier 2- Microsoft Dynamics, Epicor, Sage, Infor etc. are specifically designed for mid market companies. Tier 3- NetSuite, Consona, xTuple, Syspro etc. are designed for small companies with less complex process requirements.
HR Management Financial Management
Manufacturing
Production Planning
Plant Maintenance
ERP
Quality Management
Sales and Distribution Material Management
Figure 1 ERP Functional Module
Tier 1
Tier 2
Tier 3
Figure 2 ERP vendors based on tier/category
3.
Geographic Information System (GIS)
A geographic information system (GIS) is a technological tool for comprehending geography and making intelligent decisions. GIS organizes geographic data so that a person reading a map can select data necessary for a specific project or task. A thematic map has a table of contents that allows the reader to add layers of information to a base map of real-world locations.(ESRI, 2007) With an ability to combine a variety of datasets in an infinite number of ways, GIS is a useful tool for nearly every industry from agriculture to utilities. A good GIS program is able to process geographic data from a variety of sources and integrate it into a map project. Many countries have an abundance of geographic data for analysis, and governments often make GIS datasets publicly available. Map file databases often come included with GIS packages; others can be obtained from both commercial vendors and government agencies. Some data is gathered in the field by global positioning units that attach a location coordinate (latitude and longitude) to a feature such as a pump station. (ESRI, 2007) GIS maps are interactive.Some GIS programs are designed to perform sophisticated calculations for tracking storms or predicting erosion patterns. GIS applications can be embedded into common activities such as verifying an address.From routinely performing work-related tasks to scientifically exploring the complexities of our world, GIS gives people the geographic advantage to become more productive, more aware, and more responsive citizens of planet Earth.
3.1. Major Elements of GIS In the Figure 3, GIS brings together graphical representation of natural objects (e.g. trees, houses, wells, roads, etc), attributes of objects and tools to manage behaviour of the map objects. This makes, GIS goes far beyond the management of ―background‖ mapping as it provides true positional awareness in support of conducting analysis across multiple sources of information.(Abou-ghanem & Arfaj, 2008)
Figure 3 Three major elements of GIS
4. Integrating ERP and GIS ―The challenge is that companies implement multiple applications for a reason; each is designed to support the needs of a particular user group in performing their specific tasks.‖ (Scribe Software, n.d.) Geographical information systems (GIS) have the ability of storing, manipulating, analyzing and visualizing the geospatial information through maps. Sometimes, visualizing the data on maps is more relevant than looking at the tabular data, which is why GIS has begun to be integrated in key business applications also. The synergy between GIS and ERP information systems, offers competitive advantages to any enterprise in both supply chain management and marketing areas. Logistic firms require shorter order cycle, more reliable deliveries, better warehouse management and they must keep their transportation costs under control. In order to achieve these goals, the integration of GIS, GPS and ERP technologies was proposed by scholars (Aydin & Sarman, 2006) and by commercial software vendors. In the marketing area, ERP/GIS integration would be useful in all marketing mix components: product (segment customers by lifestyle and product promotions and category), price (implementation of pricing policy depending on location), place (site selection and delivery routing) and promotion (develop target geocode customers, understand customer spending).(Hess, Rubin, & West, 2004) With an integrated system, a user can do an array of functions that could impact corporate running cost by accomplishing the following: (Abou-ghanem & Arfaj, 2008)
Improve resource utilization, analysis, safety and asset integrity through an ability to represent work orders and notifications at their exact location on a GIS map. Improve operational efficiency (e.g. safety, dispatching) by representing work activities that impact an area as polygons on the map and identification of shortest routes. Improve workforce productivity by providing broader browser-based access to ERP and GIS based assets, maintenance, and customer information. Reduce service costs by expanding an on-line self-service portal with essential business processes (e.g. report faulty equipment). Elevate customer service and decision-making with expanded access to ERP data from the GIS map
Organizations that integrate GIS with ERP belong to the domains of Utilities (water, electric, gas, waste, recycling), Waterways, airports, ports, Oil and gas production, Defence and public security, Service providers (routing and logistics), Real estate, Forestry and forest products, Local government. All of these organizations have several things in common like Assets and infrastructure distributed over a wide area, Mobile field forces that need access to corporate data, a need to better utilize assets,infrastructure, and people in the field through fast, accurate, and easy access to data and tools to efficiently and effectively execute business processes and optimize resource utilization. (ESRI, 2007)
Companies have several options for integrating GIS and ERP: build or purchase software connectors that directly connect a given ERP and GIS package, use passive middleware, or deploy frameworks for comprehensive integration with a given GIS package from an ERP vendor (Elisabeth Horwitt, 2009). The most successful integration GIS – ERP was done by ESRI (the world‘s GIS leader) and SAP (one of the ERP vendor‘s leader). There are five main technical interfaces available for integrating SAP‘s ERP and ESRI‘s GIS software. The integration technical interfaces include (ESRI, 2013):
SAP RFC connectors - RFCs (Remote Function Calls) allow for remote calls between SAP ERP and ESRI's GIS software. The remotely callable functions are named RFMs or RFC-enabled function modules; Third-party connectors - Third-party connectors include the Way Control Broker (CB) from Information Builders which is component-based and allows director connection to packaged and legacy back-end systems. Control brokers provide an application level approach for greater control, performance and scalability; SAP generic GIS connector - The SAP GBC (GIS Business Connector) is a passive middleware that mediates between SAP solutions (designed for use with SAP ERP 4.5 and higher) and ESRI's GIS software. The method is best used when there is flexible processing modelling with existing methods in both applications; Third-party EAI - EAI (Enterprise Application Integration) is generally defined as the combination of platforms, business processes, standards and applications that result in the seamless integration of two or more enterprise systems. The EAI platform integration interface for SAP ERP and ESRI's GIS can be utilized when there are nonstandard processes that require custom development; SAP EAI - SAP Exchange Infrastructure (XI) is SAP's enterprise application integration (EAI) software used to facilitate the exchange of information between SAP ERP and ESRI's GIS. SAP XI is considered an integration broker since it mediates between entities with varying requirements in terms of protocols, connectivity and format; ESRI’s partner solutions - The SICAD-APX (application exchange) is an EAI (Enterprise Application Integration) solution from AED-SICAD (an ESRI partner) that integrates ESRI's GIS with SAP's ERP modules.
Sivan Design is another software developer which providescustomized GIS solutions combined with ERP capabilities. Using its proprietary technology Geo-ERP™, Sivan Design is able to provide turnkey solutions for establishing lands, roads, or any other infrastructures management. Geo-ERP platform consists of three platforms. The independent solutions (LAPS - Land and Properties System, IGIS - Infrastructure Geographic Information System, CMMS - Contracts Management and Maintenance Sys) that use a mutual core and can share the same spatial database. The integration of GIS and ERP is done by Oracle throughits database Oracle Spatial 10g. This database is able to store and manipulate geo-spatial information because of its special datatype SDO_GEOMETRY and spatial functions and operators. The Spatial functions can determine the relationship between two spatial layers, the geocoding engine geocodes addresses and the spatial data mining functions allow the searching of spatial data. Oracle‘s ERP: E-Business Suite can connect to the same database, in this way it will be assured an integrated data architecture (Figure 4)
Figure 4 Oracle Spatial 10g Integrated Data Architecture With this integrated framework, Oracle offers the possibility of using GIS Specialist Systems (Environmental Management, Transportation, Crime, Health and Social Services, Education) together with the modules of its ERP System (Logistics, Financial Management, Asset Management and Human Resources) and CRM System. One of the most interesting features which Oracle Spatial has is the geocoding engine, which can use the customer addresses stored in CRM‘s specific tables and convert them to longitude / latitude entries so that maps could be drawn. (Daniela Litan, Virgolici, & Raduta, 2011)
5. Case Studies Einmax Corporation, which distributes natural gas and electricity in Canada, uses this integrated data architecture from Oracle, locating corporate data in a centralized database, reducing redundancies and encouraging cross flows of information. (James B. Pick, 2007). At global level, there are already many other companies which have chosen to integrate their ERP system with a modern GIS system in order to add the spatial dimension to the business processes. For example, a company in Germany-ivl GmbH— had successfully integrated Smallworld GIS with SAP R/3, using a product they had developed called GISConnect™. (D Litan, Velicanu, Teohari, Teohari, & Virgolici, 2011)
GPU Energy has also integrated Smallword with SAP R/3 using two main integration pieces (virtual database integration allows the GIS and SAP R/3 data models to be treated logically as a single model, and business process integration, offering a complex business processes freely spread over GIS and SAP R/3), San Diego's Street Services Division has successfully integrated a GIS with ERP. (D Litan et al., 2011)
Source: http://www.sandiego.gov/
5.1. Cochin Port Case Study Cochin Port Trust, autonomous body under Government of India manages port of Kochi which renders services to more than 1000 inland and foreignvessels and handles about 13 millionmetric tons of cargo annually.With increased demands for operational efficiency, effective facility management, comprehensive security and sensitive environmental management, Cochin Port Trust (CoPT) realized the need for an IT system that provides detailed and up-to-date information. CoPT embarked on Enterprise Resource Planning (ERP) implementation program to set up a fully Integrated Port Information System (iPINS), a first-of-its-kind in India using a SAP – based ERP with TCS‘ help. TCS integrated GIS solution with Estate Managementsystem of SAP.The solution integrates the Port‘s operational, financial,estate and human resource systems and providesreal-time interface with Indian Customs, port users,banks and the port community system of the Indian Ports Association. Integrating GIS and ERP allows users to turn tabular data into maps for spatially visualizing and analyzing. GIS solution is ableto provide an integrated view of each asset, facilities such as lease management,occupation/vacation, renewal and demand, andcollection of rentals and mapped the data spatiallyaround the land assets. Integrated graphicalrepresentation of the Port-owned land and water assetshas made it simple to understand the status of any land asset.
5.2. Reliance Case Study Reliance Infrastructure Limited (RInfra) distributes electricity to more than 25 million consumers across India, including in Delhi and Mumbai. The company generates, transmits, and trades electricity from power stations in Maharashtra, Andhra Pradesh, Kerala, Karnataka, and Goa. RInfra is also working with partners to construct power plants as an emerging lead player in the engineering, procurement, and construction (EPC) segment of the power sector. Due to distributed and dispersed complex network, RInfra‘s assets are spread out among scattered customers and work sites, each with specific and diverse need. To accommodate this, it required complete system to map, model and manages it assets, maintenance and operation. RInfra needed to streamline its work under process- increasing accuracy of its data and improving outage response time. RInfra selected a geographic information system (GIS) platform from ESRI. To ensure fresh data and enable better analysis for decision making, the company integrated GIS with its SAP® business software and supervisory control and data acquisition (SCADA) system. RInfra integrated GIS with SAP plant maintenance (PM) and billing/ customer care and services (ISU/CCS). All integrated modules are Web enabled and allow one-window access to functionalities from anywhere. GIS applications use these Microsoft® .NET Framework Web services to provide multiple user functionalities including equipment history, creation of
work orders, data table loading, and customer billing information. RInfra then integrated GIS with its SCADA system to enhance the problem-solving capability of the network by allowing real-time data analysis and updates from the GIS. The integration of SAP and GIS immensely helps staff identify work order locations and find related faults, thereby reducing the resolution time and increasing customer satisfaction. RInfra field crews now rely on GIS-based operations and maintenance applications to manage both planned and unplanned outages and perform energy audits for accounting reports. Decision makers rely on the GIS for a visual representation of the network, facility search options, and work order management. Because of the GIS/SAP integration, SAP notifications and work orders can be retrieved through GIS along with technical data for equipment maintained in SAP. Customer data can be retrieved from SAP based on service points selected in the GIS. Notification of outages and work orders based on customer calls are also enabled through this integration.
5.3. Torrent Case Study Torrent Power, with a generation capacity of 1647.5 MW (500 MW is operational while 1147.5 MW is under implementation), is one of the most active private sector players in the power sector of Gujarat state. Torrent annually distributes over 10 billion units of power to Ahmedabad, Gandhinagar and Surat. Torrent Power and GPCL (Gujarat Power Corporation Limited) is developing two more power plants at Pipavav with 2000 MW capacity each are in the pipeline. Torrent Energy Limited subsidiary of Torrent Power Limited commenced distribution operations in Dahej SEZ from April 2010. Torrent has implemented a SAP-enabled ERP environment for the entire organization. The ERP solution will incorporate certain important modules like ‗industry solution for utility and customer service‘ or ISUCCS. The ERP has been enabled to serve the customer base of 2.25 million. ERP has been integrated with Geographical Information System (GIS) and Supervisory Control And Data Acquisition system (SCADA), which further enhances customer service levels. GIS provides satellite images of various locations. While these satellite images provide a broader view; it becomes difficult to precisely locate a particular house or road. Torrent‘s system digitalizes these satellite images with respect to roads, cables, houses and services, which allows to accurately locating areas with faults. With GIS, particular transformer can exactly be located and deciding the sub-station to be attended in case a problem arises. The major areas in which power utilities can be benefited from GIS are Identifying the Consumer‘s connectivity with the Network Asset, Network Mapping, Distribution Network Modeling, Load Flow Analysis and Meter management & Outage Management. GIS technology is also in determining technical loss, network planning, and optimization of distribution system and load forecasting, and the resulting advantages of faster and improved decision-making.
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