This document discusses how various technologies can help overcome limitations of standalone ERP systems. It describes ERP systems and their limitations in generating custom reports and analyzing trends. It then explains how technologies like business process reengineering, data warehousing, data mining, online analytical processing, and supply chain management can be integrated with ERP systems to provide better analytics and decision making capabilities when used together.

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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.
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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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.
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