AIS Chapter 11 Enterprise Resource Planning Systems

Chapter 11 Enterprise Resource Planning Systems Problems with Non-ERP Systems In-hou In-house se design design limits limits connec connectiv tivity ity outside the company  Tendency  Tendency toward separate IS’s within frm lack o integration limits communication within the company Strategic decision-making not supported Long-term Long-term maintenance costs high Limi Limits ts abil abilit ity y to enga engage ge in proc proces ess s reengineering Traditiona raditionall IS Model Model Closed Closed !atabase !atabase "rchitecture Similar in concept to at-fle approach data data remain emains s the the prop proper erty ty o  the application ragmentation limits communications !ist !istenc ence e o numer numerous ous dis distin tinct ct and independent databases redundancy and anomaly problems "aper-based re#uires multiple entry o data status status o inorma inormation tion unknown unknown at key points #hat is an ERP System$ $ulti-module application sotware that helps a company manage the important parts o its business in an integrated ashion% &ey eatures include' smoo smooth th and and seam seamle less ss ow ow o  inormation across organi(ational boundaries standar standardi(e di(ed d environme environment nt with shared database independent o  appl applic icat atio ions ns and and inte integr grat ated ed applications Two Main ERP "pplications Core applications a%k%a% On-line Transaction Transaction Processing (OLTP) transaction processing systems suppo support rt the the day-t day-to-da o-day y opera operatio tional nal activities o the business support mission-critical tasks through through simple #ueries o operational databases 

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include sales and distribution) business planning) production plan planni ning ng)) sh shop op oor oor cont contrrol) ol) and and logistics modules Business analysis applications a%k%a% On-li On-line ne Analyt Analytica icall Proces Processin sing g (OLAP) decision support tool or managementcrit critic ica al tasks asks thr through ough analy nalyti tica call investigation o comple! data associations supplies management with *real-time+ ino inorrmati mation on and and aci acili lita tate tes s time timely ly decisions to improve perormance and achieve competitive advantage includes includes decision decision support) support) modeling) modeling) inormation retrieval) ad-hoc reporting,analysis) and what-i  analysis %&"P Suppo Supports rts manage managemen ment-c t-crit ritica icall tasks tasks thr through ough anal analyt ytic ical al inve invest stig igat atio ion n o  comple! data associations captured in data warehouses' Consolidation is the aggregation aggregation or roll-up o data% !rill-down allows allows the user to see data in selectively increasing increasing levels o detail% Slicing and !icing enables the user to e!amine data rom dierent viewpoints to uncover trends and patterns% ERP ER P Sys System tem Con' Con'gu gura rati tion ons s Clie Client nt-Ser(er Networ) Netwo r) Topology Topology  Two-tier  Two-tier comm common on serv server er hand handle les s both both application and database duties used especially in L./s  Three-tier clie client nt link links s to the the appl applic icat atio ion n serv server er whic which h then then init initia iate tes s a second connection to the database server used especially in 0./s ERP System System Con'gura Con'gurations tions !atabase !atabases s and *olt-%ns 1atabase 2onfguration selection o database tables in the thousands setti ettin ng the the switc itches in the the system 3olt-on Sotware Sotware 

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thir thirdd-pa part rty y vend vendor ors s prov provid ide e speciali(ed unctionality sotware Supp Supply ly 2hai 2hain n $ana $anage gem ment ent 4S2$5 4S2$5 links links vendor vendors) s) carrie carriers rs)) logi logist stic ics s comp compan anie ies) s) and and IS providers #hat is a !ata #arehouse$ . multi-dimensional database database oten using hundreds o gigabytes or even terabytes o memory 1ata are e!tracted e!tracted periodic periodically ally rom rom operation operational al databases databases or rom public inormation services% . data databa base se cons constr truc ucte ted d or or #uic #uick k searchin searching) g) retrieva retrieval) l) ad-hoc ad-hoc #ueries) #ueries) and ease o use 6" 6" system systems s can can e!ist e!ist withou withoutt data data warehouses% 7owever) most large 6" implementations include separate separate operatio operational nal and data warehouse databases% 8therw 8therwise ise)) manage managemen mentt data data analys analysis is may resul resultt in pulli pulling ng syst system em resou esourrces ces away away rom rom operational use% .lso) there are many sophisticated data-mining tools% !ata #arehouse Process The fve stages o the data warehousing warehousing process' 9% modeling data or the data warehouse :% e!tracting data rom operational databases ;% cleans cleansing ing e!tra e!tracte cted d data data