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Chapter 3 E R P And Related Tech Alexis Leon

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Chapter 2 Enterprise An Overview Alexis Leon

Chapter 2 Enterprise An Overview Alexis Leon

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  • 1. 7/3/2010 Chapter 3 ERP and Related Technologies Sonali Chauhan UDIT TYBSc IT June 2008  ERP is an abbreviation for Enterprise Resource Planning and means, the techniques and concepts for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise  ERP systems serve an important function by integrating separate business. functions - materials management, product planning, sales, distribution, finance and accounting and others-into a single application. Cont…  ERP systems have three significant limitations: . 1.managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage. 2. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision making. 3. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence. 1
  • 2. 7/3/2010 Cont…  There are many technologies that help to overcome these limitations.  These technologies, when used' in conjunction with the ERP package, will help in overcoming the limitations of a standalone ERP system and thus, help the employees to make better decisions. Cont…  Some of these technologies are – BPR, – Data Warehousing, – Data Mining, – Online Analytical Processing (OLAP), – Supply Chain Management and so on. Cont…  With the competition in the ERP market getting hotter and hotter, and ERP vendors searching for ways to penetrate new market segments and expand the existing ones, tomorrows ERP systems will have most of these technologies integrated into them.  In this chapter, we will see how each of these technologies are related to ERP systems 2
  • 3. 7/3/2010 Business Process Re-engineering (BPR)  As Dr. Michael Hammer, the champion of BPR puts it, business process re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service & speed. And Thomas Davenport calls it a process innovation. Management Information System (MIS)  MIS is computer based system which transfer collection, collation and presentation information throughout organization.  Not concerned with day-to-day operation – Eg: Ticket reservation System, is transaction or data processing system (TPS) which takes order and print the ticket. – Whereas MIS measures the performance of each of the agent who will sell tickets and produces regular reports about agents effectiveness Cont…  MIS processes data that is generated by TPS and other internal information sources  Users will request for reports and request are taken by MIS programs. 3
  • 4. 7/3/2010 Cont…  Advantage of MIS: – MIS provides strong transaction supports and record keeping facilities – MIS supports different functional areas and uses integrated database – Provide Structural information at different level of organization and support time management – Flexible enough to adapt changing need in organization. Decision Support System (DSS)  Organization have to make several decision at different level of management.  And managers use to spend lots of time in analyzing and gathering information before making decision. Cont…  To analyze certain certain complex decisions where involves many factors as well as to provide support to management, to make quality decision, Decision Support System is requires.  DSS assist managers to gather and analysis the information to meet certain decision.  DSS can make several forecasting and planned models along with s/w and h/w with latest technologies like Artificial intelligence. 4
  • 5. 7/3/2010 Cont…  DSS Characteristics: DSS mainly supports decision making at the top management level to make certain complex decision DSS is interactive , user friendly software which is useful for decision making. DSS supports planning and forecasting model, which has simulation also analytical tools are available to decision makers to improve quality of their decision. Executive Information System (EIS)  DSS and SIS are support system of MIS  Both are decision making, difficult to make out difference.  But EIS is more sophisticated and better than DSS. Cont…  In today's competitive world, reaction is decreasing and time to make decision is very less,  EIS can be more sophisticated solution.  It supports more senior level executives – How decisions are taken by them which will affect entire organization  Takes under consideration the outside information from competitor, consultant, newsgathering so on 5
  • 6. 7/3/2010 Cont…  EIS takes following into consideration: Overall vision and mission of company and of company and company goal. Planning and objectives Strategic control and monitoring of overall operations Crisis management Cont… Architecture of EIS MIS DSS External Data DATA DATA TPS DATA OAS Data Administrative ESS Program Support workstation Executive workstation Graphs reports ESS models Data Warehousing  As time passes, the amount of data will increase and this will affect the performance of ERp system.  So it is better to archive the operational dara once its use is over.  Its is most valuable recourse so archive data is not ‘useless’ data. 6
  • 7. 7/3/2010 Cont…  If work is over of operational data, it should be removed from operational database. – Eg: one financial year is over, daily transactional data can be archived.  If volume of data increase in database, performance of database and related application decrease Cont…  We should separated operational data form non operational data.  We transfer this data in data warehouse  Data is stored for business analysis can be accessed most effectively by separating it. Data Mining  Data warehouse stores huge amounts of data whereas data mining process data into valid potential useful information  This information can be further use to make decision.  Allow analyst to manage the process of extracting knowledge and meaningful information from data 7
  • 8. 7/3/2010 On-Line Analytical Processing (OLAP)  OLAP is designed for live ad-hoc data access and analysis.  OLAP has multidimensional database technology and provides the technical basis for calculation and analysis required by business intelligence application. Cont…  OLAP is design to deliver fast response to user.  Its takes few sec to analysis Cont…  OLAP is define in following words: FAST ANALYSIS OF SHARED MULTIDIMENSIONAL INFORMATION 8
  • 9. 7/3/2010 Cont…  FAST – System delivers responses to users within few seconds  ANALYSIS – System copes with any business logic and statistical analysis. Cont…  SHARED – System implements security to maintain confidentiality of important data at different levels.  MULTIDIMENSIONAL – System must provide multidimensional conceptual view of data with multiple hierarchies Cont…  INFORMATION – Refine data that is accurate, timely and relevant to user. 9
  • 10. 7/3/2010 Supply Chain Management  Supply chain is a network of facilities and distribution options that performs the function of procurement of materials, transformation of these material into intermediate and finished products , distribution of these finished products to customers.  Supply chain exist in both service and manufacturing organization. 10