Introduction to Enterprise Systems for Management

Introduction to Enterprise Systems for Management

1. What is ERP/EIS/ES ?

   • ERP systems are the first generation of ES // ERP systems are web-enabled // ERP is a central repository eliminating data redundancy. ERP systems are integrated IS that support enterprise functions such as accounting, finance, marketing, and production. This allows for real-time flow of data and info between functional applications.
   • ES integrate data and support all the major functions of organizations // ES integrate organizational aspects and systems with suppliers and partners
   • companies choose to implement EIS // to Increase supply chain efficiency Increase customer access to products and services Reduce operating costs Respond more rapidly to a changing marketplace Extract business intelligence from data. Integrate departments and functions across an organization onto one ITI

2. Role of ERP in Business

   • Integration of business functional applications.// Integration of organizational information Repositioning the organization to change its business processes (BP)
     • BP is a series of tasks / activities grouped to achieve a business function or goal.
       • BP example: Customer Order Processing: Taking an order Checking inventory Preparing invoice
   • ERP software has 100s of built in BPs (best practices). Organizations have two options: Accept them as they are (vanilla implementation)// Customize them to fit the organization’s BPs (Chocolate Implementation)

3. ERP System Components

   • ERP system is like any information system “hardware, software, database, telecommunication, people, policies, and procedures working together to achieve an organizational goal”
     • Hardware: servers and peripherals // Software: operating system and database// Information: organizational data from internal and external resources // Process: business processes, policies, and procedures // People: end users and IT staff

4. The basic goal of ERP is to convert data into useful information for all organizational stakeholders.

5. ERP Implementation Architecture

   • The ERP implementation architecture influences the cost, maintenance, and the use of the system.
   • Flexible architecture is recommended for scalability as the organizational needs change and grow.
   • ERP architecture helps the implementation team build the ERP system of an organization.
   • The ERP architecture is like a home architecture, which takes the vision of the home-owners with the ERP system components similar to the wiring, plumbing, and furnishing.
   • Opposite to the normal IT implementation, ERP architecture is often driven by the ERP vendor and the ERP package requirements.
   • The same ERP package can have different implementation from organization to another.

6. The ERP implementation architecture sets the stage for:

   • Modifications and customizations// Data conversion// ERP system maintenance //Upgrades// Back-ups // Security Access //Control
   • two implementation architecture types
     • Logical
       • Supports the need of the end user Provides the database schemas of entities and relationships at a lower tier The second tier includes the business processes and business logic The third tier provides the applications details that support business functions. The end user never sees the first and the second tiers
     • Physical / tiered

7. eBusiness and ERP