This document provides an overview of relational databases and ERP systems. It discusses key concepts such as data normalization, master and transaction data, and how ERP systems use a relational database to integrate business functions like procurement, production, and sales. The document also examines the components of a relational database, including entities, attributes, primary keys, and foreign keys. It describes how data normalization organizes data into tables, establishes relationships between tables, and eliminates redundant data to create a more efficient data structure.

1. Destination
DPR105: Info Mgmt Systems
Instructor: Tom Matys
Topic Focus: Relational Databases1

2. database
data
ERP
master data
transaction data
process
function
integration
data normalization
data governance fulfillment
production
procurement
Knowledge workers
2

3. ERP: Porter’s Five Forces
3

4. ERP: Strategy
• Real-time
• Cost-savings
• Customer Loyalty
• Secure
• Accurate
• Efficient
• Breaks barriers
• Connected
• Streamlined
• Centralized
database
• Shares data
between business
functions
4

5. ERP: How Does it Work?
• Knowledge Workers
• Databases
• Hardware
• Software
• Network
• Applications
• Cross-Functionality
5

6. ERP: Cross-Functionality
6

7. 7

8. ERP: Business Functions
• Accounts Payable
• Production Planner
• Buyer
• Purchasing Agent
• Price Research Analyst
• Production Planner
• Accounts Receivable
• Warehouse Worker
• Sales & Customer
Support
8

9. ERP: Business Processes
• Create Sales Order (MS)
• Create Purchase Requisitions (MM)
• Create Goods Issue (Finished Product)
(PP)
• Create Goods Receipt (Raw Materials)
(MM)
• Create Inquiry/Quote (MS)
• Create Production Confirmation (PP)
• Create Invoice (AF)
• Create Payment (AF)
9

10. AF
MS
MM
AF
ERP: A Closer Look
DB
10

11. ERP: Data
Data Governance
Data Normalization
11

12. ERP: Why Data Normalization?
What is it?
What are the results?
• Prevents redundancy
• Organizes entities
• Defines data attributes
• Defines primary keys
The most efficient data scheme that
uses only data that is needed!
12

13. 13
ERP: Relational Database

14. 14
ERP: Relational Database Components

15. ERP: Entities
15

16. ERP: Attributes
• ENTITIES
• ATTRIBUTES
• PRIMARY KEYS
• FOREIGN KEYS
16

17. ERP: Primary & Foreign Keys
17

18. 18
ERP: Master vs Transaction Data

19. ERP: Master Data
19

20. 20
ERP: Master vs Transaction Data

21. 21
ERP: Data Normalization
• Organizing data
• Creating tables and establishing relationships
between those tables
• Eliminating redundancy and inconsistent
dependency.
• Redundant data wastes disk space and creates
maintenance problems.
• Eliminate repeating groups in individual tables.
• Create a separate table for each set of related
data.
• Identify each set of related data with a primary
key.
• Relate these tables with a foreign key.

22. ERP: Master Data
22

23. MASTER DATA LAB
QUESTIONS?
23