a good guide to ERP systems

1. ENTERPRISE RESOURCE PLANNING
SYSTEM
SUBMITTED BY
GEESHMA R
JITHIN CS
MUHAMMED SHUHAIB C V
KSHITHIN A R

2. CONTENTS
• ERP ARCHITECTURE
• CLIENT SERVER PROCESS
• SYSTEM DEVELOPMENT LIFE CYCLE
• ERP COMPONENTS
• DATA BASE REQUIREMENT
• ERP APPROCHES
• BUSINESS PROCESS RE-ENGINEERING
• ERP IMPLIMENTATION

3. ERP ARCHITECTURE
• A design, the term Architecture can refer to either hardware or
software , or to a combination of hardware and software. The
Architecture of a system always defines its broad outlines, and
may define precise mechanisms as well.
• ERP Systems are dependent on the consistent storage of large of
large amount of data : Master and transitional data. An
enterprise class relational database is used for this purpose.
Example of such data base are oracle software, Microsoft SQL
server and IBM DB’S
• The data is processed by numerous programs within the ERP ,
software and results are presented to the end user through some
user interface.

4. Continue…..
• The architecture that supports the connection between
the database, processing and presentation is called
client/server Architecture
• A client is a process that makes services requests to a
server. A server is therefore is a process that responds
with the requested service to a client.
• The third component of this architecture is the network.
The network can provide communication to multiple
servers that services multiple clients.
• Client server processes are separate and autonomous
even though the request is made by the client.

5. Client server concept
The sharing of the process between a client and a server is the basis for
defining thin and fat clients. A thin client has minimal processing
responsibilities, which implies that the corresponding fat server does the
majority of processing. On the other hand, a fat client takes on a larger
load of processing. The increase in inexpensive desktop processing has
helped popularize fat clients. On the other hand, web based client/server
architectures are pushing the thin client (sometimes mobile) paradigm.
The client is often called the front-end or front-end application. The
server is called the back-end application
Client Network Server

6. 6
ERP System Configurations:
Client-Server Network Topology
Two-tier
– common server handles both application and
database duties
– used especially in LANs

7. Server
Applications Database
User
Presentation
Layer
First Tier
Second Tier
Application
and Database
Layer
Two-Tier Client Server
Server

8. 8
ERP System Configurations:
Client-Server Network Topology
Three-tier
– client links to the application server which then
initiates a second connection to the database server
– used especially in WANs

9. Three-Tier Client Server
Applications
Database
First Tier
Second Tier
Third Tier
User
Presentation
Layer
Application
Layer
Database
Layer
Application
Server
Database
Server

10. ERP with OLTP and OLAP Client Server using Data Warehouse
OLTP
Server
OLTP
Applications
Operations
Database
Server
Operations
Database
First Tier
Second Tier
Third Tier
User
Presentation
Layer
Application
Layer
Database
Layer
OLAP
Server
OLAP
Applications
Data
Warehouse
Server
Data
Warehouse

11. SYSTEM DEVELOPMENT LIFE
CYCLE
• The system development life cycle has a well defined
iterative process. It involves a few phases. The
development follows the phases exactly. The process
theoretically never ends as the cycle gets repeated, that’s
on completion of the cycle the next cycle starts with
preliminary investigation.
• The phase of development through which any individual
IS application goes range from an initial information
requirement- problem or opportunity – through the
design, construction and operation of the system, to the
eventual termination of the system, which triggers a life
cycle of a new system.

12. The life cycle of a computerised information system
contain the following phases and activities
• Definition phase (Preliminary analysis,
feasibility study, information analysis,
system design)
• Construction phase (programming
,procedure development )
• Implementation (conversion)
• Operation phase (operation and
maintenance, past audit , termination)

13. Figure 2

14. DEFINITION PHASE
• Preliminary Analysis:
The analysis is usually conducted before an information
system is designed and implemented. The analysis is to
determine if the problem or the subject due for
development warrants further analysis. It also refines the
problem statement and creates a preliminary plan for an in-
depth analysis of the problem.
• Feasibility study:
The major purpose of feasibility study is to establish
whether a project should be done and how it should be
done if justified. The major purpose of this activity is to
determine whether it’s feasible to develop and install a
system

15. Information analysis
• Information analysis is sometimes justifiably
called the logical design step
• Because of the relatively large scope of the
activity, it usually consists of three parts;
a) analysis of the present system with the emphasis
on what is taking place in the system
b) Determination of the information requirement,
with the emphasis on why they cannot be
provided effectively or efficiently by the current
system and
c) Conceptual design of the new system

16. System Design
It’s the creative activity of devising the program and
procedure specifications for processing data by the new
system. It involves the development complete and
detailed programming specifications from which the
programmers can proceed with little or no additional
outside reference.
Programming
During the programming phase, coding and testing of
computer programs take place. The programs are then
tested by actual execution on the computer system.

17. • Procedure development activity
While the programming activity results in computer
instructions, the procedure development activity results
in instruction for human involvement with the new
system. Procedures for the various users and operators
of the system are written and tested. This activity
concurrently proceeds with the programming activity
and is equally important.
• Conversion
Conversion refers to
a) Training the personnel operating and using the new
system
b) Breaking the system in and
c) Acceptance testing by the user. In most cases
conversion is associated with making changes from an
old system to a new system.

18. • Operation
At the conclusion of the conversion activity. The
new system moves into the operation phase of the
life. The development activities of the
information system life cycle are now terminated.
The system now operates like a production
facility, processing data, producing information
and undergoing maintenance.
• Post audit
Periodical post audit review from control points
throughout the operation of the system. These
reviews will indicate when the life of the current
system is drawing to a close and a new life cycle
is indicated.

19. Termination
Termination is imperative when requests for
changes and the number of errors reach a land
where the continued operation of the current
system is not worth while.

20. ERP COMPONENTS
Enterprise resource planning integrates all
departments and functions throughout
organization into a single IT system. So that
employees can make enterprise wide decisions
by viewing enterprise wide information on all
business operation.
There are two components :
a) Core ERP components
b) Extended ERP components

21. • CORE ERP COMPONENTS
Traditional components included in most ERP
systems and they primarily focus on internal
operations.
• EXTENDED ERP COMPONENTS
The extra components that meet the organisational
needs not covered by the core components and
primarily focus on external operations.

23. Accounting and Finance Components
• manage accounting data and financial
processes within the enterprise with
functions such as general ledger, accounts
payable, accounts receivable, budgeting,
and asset management
23

24. Production and Materials Management
Components
• handle the various
aspects of
production planning
and execution such
as demand
forecasting,
production
scheduling, job cost
accounting, and
quality control
24

25. Human Resource Components
• track employee information including
payroll, benefits, compensation,
performance assessment, and assumes
compliance with the legal requirements of
multiple jurisdictions and tax authorities
25

26. Extended ERP Components
• Business intelligence - information that people use to
support their decision-making efforts
• CRM - involves managing all aspects of a customer’s
relationship with an organization to increase customer
loyalty and retention and an organization’s profitability
• SCM - involves the management of information flows
between and among stages in a supply chain to maximize
total supply chain effectiveness and profitability
• E-business - means conducting business on the Internet,
not only buying and selling, but also serving customers
and collaborating with business partners
26

27. E-Business Components
• E-logistics – manages the transportation
and storage of goods
• E-procurement – the business-to-business
(B2B) purchase and sale of supplies and
services over the Internet
27

28. Database requirement
There are different sized firms in today’s ERP applications
software market. In order to be competitive in the market,
ERP packages should be flexible enough to adopt
requirements which are specific to implementation country,
sector and firm. Our hypothesis is that, if we have had enough
flexible database design and an interface supports that design,
without editing ERP applications source code, we could meet
the extra requirements which appears during implementation
and post implementation.

29. DATABASE DESIGN STEPS
Classical Approach to Database Design
A generic database design process according to Navathe, Elmasri includes
four phases, to be carried out in the following sequence:
• Requirements Collection and Analysis: consists of identifying and
understanding the application’s data and functional requirements.
• Conceptual Design: involves two parallel activities. The first consists
of examining the data requirements resulting from the previous phase
and, ignoring the details of implementation, producing the conceptual
data schema. The second activity consists of examining the functional
requirements defined in the previous phase and producing
specifications for the defined transactions, regardless of the DBMS to
be employed.
.

30. Cont….
• Logical Design: consists of transforming the
conceptual data schema built in the previous
phase into a specific schema of a given
DBMS called a logical data schema.
• • Physical Design: consists of selecting
specific storage and access structures for the
DBMS to be used.

31. ERP APPROACHES
Enterprise resource planning (ERP) systems
enjoy an increasingly wide coverage.
However, no truely integrate solution has
been proposed as yet. One of the approach
is:
a) Integration approach

32. Integration approach
Frequent priority changes in versatile corporations development
demand fast and flexible adaptation of personnel organizational
structure to rapidly changing modern market with stiff competition.
Such adaptation should be based on strategic software integration,
and is especially urgent for comprehensive ERP systems that involve
a collection of technologies allowing to support complex production-
and-trade cycles.

33. The approach suggested for ERP integration
has been practically approved while
prototyping and implementing a full-scale HR
information system (HRIS).
Main objectives of the paper are the following
ones:

34. • ERP design methods classification and analysis;
• integrated data and metadata model development;
• ERP component integration algorithm development;
• HRIS prototyping and full-scale implementation
The data model is introduced provides integrated problem-oriented
event-driven data and metadata dynamics and statics management of
heterogeneous weak structured problem domains in a more adequate
way than previously known ones.

35. Business Process Reengineering
The concept of Business Process Reengineering (BPR)
was first introduced by Hammer in 1990. BPR has
been defined as a fundamental redesign of business
processes to achieve dramatic improvements
in critical areas such as cost, quality,service and speed.
BPR began as a private sector technique to help
organizations fundamentally rethink how they do their
work in order to dramatically improve customer
service, cut operational costs, and become world-class
competitors

36. Cont…
The founders of this concept ,felt that the
design of workflow in most large
corporations was based on assumptions
about technology people and organisation
goals that were no longer valid. They
suggested seven principles of reengineering
to streamline the work process and there by
achieve significant levels of improvement in
quality, time management and cost:

37. ERP
IMPLEMENTATION

38. Different phases of ERP
• Pre evaluation Screening
• Evaluation Package
• Project Planning
• GAP analysis
• Reengineering
• Team training
• Testing
• Post implementation

39. Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis Reengineering Configuration
Implementation
Team Training
Testing End- user Training
Going Live
Post – implementation
Phase
ERP implementation Life Cycle

40. Pre evaluation screening
• Decision for perfect package
• Number of ERP vendors
• Screening eliminates the packages that are not at
all suitable for the company’s business processes.
• Selection is done on best few package available.

41. Package Evaluation
• Package is selected on the basis of different
parameter.
• Test and certify the package and also check the
coordination with different department
• Selected package will determine the success or
failure of the project.

42. Cont.
• Package must be user friendly
• Regular up gradation should available.
• Cost

43. Project planning
• Designs the implementation process.
• Resources are identified.
• Implementation team is selected and task
allocated.
• Special arrangement for contegencies.

44. Gap analysis
• Most crucial phase.
• Process through which company can create a
model of where they are standing now and where
they want to go.
• Model help the company to cover the functional
gap

45. Reengineering
• Implementation is going to involve a significant
change in number of employees and their job
responsibilities.
• Process become more automated and efficient.

46. Team Training
• Takes place along with the process of
implementation.
• Company trains its employees to implement and
later, run the system.
• Employee become self sufficient to implement the
software after the vendors and consultant have
left.

47. Testing
• This phase is performed to find the weak link so
that it can be rectified before its implementation.

48. Going Live
• The work is complete, data conversion is done,
databases are up and running, the configuration is
complete & testing is done.
• The system is officially proclaimed.
• Once the system is live the old system is removed

49. End User Training
• The employee who is going to use the system are
identified and trained.

50. Post Implementation
• This is the maintenance phase.
• Employees who are trained enough to handle
problems those crops up time to time.
• The post implementation will need a different set
of roles and skills than those with less integrated
kind of systems.

51. • An organization can get the maximum
value of these inputs if it successfully
adopts and effectively uses the system.