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Enterprise Resource Planning (ERP) Systems

ERP Characteristics
• Links all business processes automatically
• Reduces the number of legacy systems
• Reduces inter-processing time (transactions occur one time at the source)
• Maintains an audit trail of all transactions
• Utilizes a common database
• Performs internal conversions automatically (tax, foreign currency, legal rules for payroll)
• Improves customer service by putting data at the fingertips of employees
• Involves employees in the entire functional cycle

Benefits and limitations of ERP


BENEFITS OF ERP

▪ Integration of data and applications across functional areas.

▪ Improvements in maintenance and support as IT staff centralized.

▪ Security of data and applications is enhanced due to better controls and


centralization of hardware.

▪ Sharing of information across functional areas helps collaboration between


employees.

▪ Agility of the organization in terms of responding to changes in environment for


growth and maintaining market share.

LIMITATIONS OF ERP

▪ Complexity of installing, configuring and maintaining the system increases, thus


requiring specialized.

▪ IT staff, hardware, and network facilities.

▪ Consolidation of IT hardware, software and people resources can be difficult to


handle and attain.
▪ Data conversion and transformation from an old system to a new one can be
frustrating and complex process.
▪ Retraining of all employees with the new system can be costly and time
consuming
▪ Efficiency of business processes are enhanced due to the re-engineering of
business processes

ERP vendors- are business software developers and providers that create, sell and
implement enterprise resource planning systems. Vendors are also responsible for developing
updates and additional releases to keep up with changes in their clients' industries.

Example of ERP Vendor

• SAP is the recognized global leader among ERP vendors with over 12 million
users. Its solutions are for all types of industries and for every major market.
www.sap.com
• Oracle/Peoplesoft As the second largest ERP vendor, Oracle provides solutions
divided by industry category and promises long- term support for customers of
PeopleSoft- (acquired in 2004). www.oracle.com
• Infor the world's third largest provider of enterprise software. It delivers
integrated enterprise solutions in supply chain, customer relationship and
suppliers management

 Key vendors- refer to organizations specializing in the development, customization, and


deployment of ERP software solutions.

What are the Three Tier ERP Architecture

 Presentation Layer, Application Layer and Data Layer

It helps in the planning and optimizing of the manufacturing capacity, parts, and material
resources using historical production data and sales forecasting?
 Production

Facilitates the processes of maintaining the appropriate level of stock in a warehouse?

 Inventory Management

Enable creation of project teams based on skills and availability, monitor progress on project,
track time, and analyze results.

 HR Management

Give at least 4 Benefits of Three Tier Architecture.

 Scalability, Reliability, Flexibility, Maintainability, Reusability and Security

What does ERP stands for?

 Enterprise resource planning

Are business software developers and providers that create, sell, and implement enterprise
resource planning systems.

-ERP vendors

It is bringing together different sub-systems into a single system.


-System Integration

An integrated set of components for collecting, storing, and processing data and for providing
information, knowledge, and digital products.
- information system (IS)
Enables automated information exchange with business partners (e.g., suppliers, customers)
-Business to business (b2b) integration

Give atleast two types of system integration.


-Data Integration
-Business to business (b2b) integration
-Legacy system integration
-Electronic Data Interchange (EDI)
-Enterprise Application Integration (EAI)

information systems that work independently and are grouped by the various functions and
departments, or both
-silos

refer to the approaches and techniques used to bring together different subsystems or
components into a unified system that functions seamlessly together.
-System Integration methods

It involves using a separate subsystem as a common interface layer, often referred to as an


Enterprise Service Bus (ESB).
-Horizontal Integration

It refer to the organizational structure where different departments or teams within an


organization operate in isolation from each other, focusing solely on their own functions or
goals.
-Functional Silos
It is a set of steps taken to achieve an outcome.
-business process

Give atleast two techniques that are frequently used in system integration.
-Point-to-Point Integration
-Vertical Integrationb
-Star Integration
-Horizontal Integration
-Common Data Format integration

o Point-to-point integration- connects two system components to work together, even


though it's simpler than full system integration.

o Vertical integration- system components are integrated by creating functional "silos"


from the bottom function upwards.

o Star integration- involves connecting each subsystem with other subsystems using
point-to-point connections, allowing for more functionality.

o Horizontal integration- involves using a separate subsystem as a common interface


layer, often referred to as an Enterprise Service Bus (ESB).

COMMON TYPES OF ERP INTEGRATION


With ERP integrations, all data flows freely between the connected systems (ideally in
real-time) and the information is stored centrally in the ERP. There are numerous ERP
integrations that can improve business operations and processes. Examples of some of the
most common include:

• eCommerce to ERP Integration - eCommerce platforms such as Shopify and Magento


allow customers to shop online.
• Customer Relationship Management to ERP Integration - Customer relationship
management (CRM) systems like HubSpot and ZoHo are essential to sales teams as they
help manage accounts by recording all customer and potential customer data, along with
sales activity.
• Project Management Software - Project management software platforms like Asana and
Basecamp keep teams organized by tracking timelines, project status updates, budgets,
shared files, messages, and more.
• Business Intelligence Software - Business intelligence (BI) software like Tableau and
Domo are used to collect and analyze data, often allowing users to create pre-made or
customizable reports, visualizations, and dashboards.

WHAT TYPES OF ERP CAN YOU INTEGRATE?


On-Premise ERPs - A traditional on-premise ERP is installed locally within a company's
environment, rather than hosted by a third-party provider in the cloud.
On-Premise ERP Benefits
1. Easier to modify - On-premise ERPs allow enterprises to make changes and
customize their application to meet their specific needs.
2. More control - For those companies in niche or highly regulated industries, on-
premise ERPs give a much greater level of control to maintain and manage data.
3. More security - Much like control, an on-premise ERP secures data to a level that you
might not be able to obtain in certain cloud environments.

Cloud ERP Integration - A cloud ERP is hosted on a third-party cloud computing platform,
instead of behind a company's firewall or within its own data center.

Cloud ERP Benefits


1. Cost - The most alluring factor to choose a cloud ERP revolves around just
how much money an enterprise can save. Costs are predictable over time, and
enterprises only pay for what they use, with a modest upfront investment and no
additional hardware investments.
2. Accessibility - The proliferation of cloud computing also has enabled mobile
accessibility, allowing enterprises to use their applications from anywhere and on
most devices.
3. Stability - A cloud ERP will have greater stability through a third-party vendor
because of the continuous updates the vendor does to improve the software and
the resolution of issues that arise.
COMPONENTS OF ESA
• Functional
• Define the ERP modules that support the various business functions of the
organization. Example include”
• Accounting
• Human Resources
• Procurement
• Fulfillment
• Etc.
• System
• Defines the ERP architecture through the physical components of hardware,
software, and networking angle.
WEB SERVICE ARCHITECTURES
 DevOps is not a tool or a software, it's a culture that you can adopt for continuous
improvement. It will help you to bring your Developer Team and Operations Team on the
same page, allowing them to work together with ease.

 DevOps: Foundation Principles (Three Ways)


 Flow - which accelerate the delivery of work from Development to Operations to
our customers
 Feedback - which enable us to create ever safer system of work
 Continual Learning and Experimentation - which foster a high-trust culture and
a scientific approach to organization improvement as part of our daily work

 Continuous Integration is a development practice that requires developers to integrate


code into a shared repository on daily basis.

 Continuous Delivery is a methodology that focuses on making sure software is always


in releasable state through its lifecycle.

 Deployment is the installation of a specified version of software of a given environment.

 Continuous Deployment is a set of practices that enable every change that passes
automated tests to be automatically deployed to production.

 Source Code Management – tool are specialized software applications that provide a
central repository for storing, managing and versioning source code file and many other
software development artifacts.

BENEFITS AND CHALLENGE OF SOURCE CODE MANAGEMENT TOOL


 Version Control - This gives developers the choice to revert to the previous version if
needed and make sense of the codes they are looking at.
 Stronger Collaboration - Having version control capabilities highlights conflicts,
allowing teams to review the source code together.
 Workflow Optimization - This enables developers to track the changes and take timely
steps when an unexpected incident occurs.
 Code Back-Up - This feature ensures that the developers have access to the previous
versions of the code in case of any unexpected issues, saving them from the hassle of
starting from scratch
 Steep Learning Curve - In order to manage source code effectively, developers need to
spend quite some time getting used to the functions and features.
 Possible Hidden Cost -The tools are costly, specifically for large organizations or teams.
Moreover, the software tool needs regular maintenance, such as backups, security
updates, and administration
• Source code management is a broader concept. It entails version control, collaboration
tools, workflows, code organizations, and code repository management. It also involves code
review, issue tracking, integration, and deployment automation.
• Version control is a specific aspect under the umbrella of source code management. It is
focused on managing versions, viewing historical changes, keeping track of changes, and
reverting to previous versions when needed.

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