Enterprise Resource

Planning Systems
Department of Information Technology
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Data, Information, and Knowledge
• Data are the raw facts, and may be devoid of context or intent.
• For example, a sales order of computers is a piece of data. Data can be
quantitative or qualitative.
• Quantitative data is numeric, the result of a measurement, count, or some
other mathematical calculation.
• Qualitative data is descriptive. “Ruby Red,” the color of a 2013 Ford Focus,
is an example of qualitative data.
• A number can be qualitative too: if I tell you my favorite number is 5, that is
qualitative data because it is descriptive, not the result of a measurement or
mathematical calculation.
Information
• is processed data that possess context, relevance, and purpose. For example,
monthly sales calculated from the collected daily sales data for the past year are
information. Information typically involves the manipulation of raw data to
obtain an indication of magnitude, trends, in patterns in the data for a purpose.
Knowledge
• in a certain area is human beliefs or perceptions about relationships among facts
or concepts relevant to that area. For example, the conceived relationship
between the quality of goods and the sales is knowledge. Knowledge can be
viewed as information that facilitates action.
Wisdom
• The final step up the information ladder is the step from knowledge (knowing a lot
about a topic) to wisdom. We can say that someone has wisdom when they can
combine their knowledge and experience to produce a deeper understanding of a
topic.
General Information Systems
• One or more separate (no data transfer) files for each program/ system
• These files are created, edited and deleted only by a special program/system
• Third part tools extra actions need to share data between systems.
Information Systems in a University

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Enterprise System
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The Enterprise System

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 Enterprise Resources

Are these resources independent?

Can process these resources’ information independently?
Value
Chain
Analysis
There are
many models
that can be
used to
identify cost
leadership
and
differentiation
strategies.
The Michael
Porter's
Value Chain
model is one
of them.
Cross Functional Enterprise Applications

Many companies today are using information technology to develop integrated Cross-functional enterprise
systems (refer Figure) that cross the boundaries of traditional business functions in order to reengineer and
improve vital business processes all cross the enterprise.
A redundant, disorganized database structure.

ƒInaccurate data.
ƒDifficulty in reporting and sharing information.
ƒDependence on manual processes and human interventions.
ƒProblems in providing seamless customer service.
ƒDifficulty in complying with reporting requirements.
ƒLack of capacity for process improvements.
Enterprise application architecture
Enterprise application architecture ….
Enterprise application architecture ….
● Thus, enterprise resource planning (ERP) concentrates on the efficiency of a
firm’s internal production, distribution, and financial processes.
● Customer relationship Management (CRM) focuses on acquiring and retaining
profitable customers via marketing, sales, and service processes.
● Partner relationship management (PRM) aims at acquiring and retaining
partners who can enhance the selling and distribution of a firm’s products and
services.
● Supply chain management (SCM) focuses on developing the most efficient
and effective sourcing and procurement processes with suppliers for the
products and services needed by a business.
● Knowledge management (KM) applications focus on providing a firm’s
employees with tools that support group collaboration and decision support.
What is an Enterprise Resource Planning (ERP)
It is a set of interconnected software applications within an organization
that help businesses operate in a smooth manner.

The applications are connected to a common database, either writing

data or reading data from the database.

An example would be a retail shop where the teller enters data about
sales, the storekeeper enters data about existing stocks, and the manager
reads the information to predict when to order for more stocks.
A Traditional ERP
Enterprise systems feature
a set of integrated software
modules and a central
database that enables data
to be shared by many
different business
processes and functional
areas throughout the
enterprise.
Management Information
Systems, Achieving Operational
Excellence and Customer
Intimacy: Enterprise Applications
ERP today

https://roboticsandautomationne
ws.com/2019/08/27/erp-
automation-benefits-and-
trends/25196/
Comparison of ERP Systems

https://www.odoo.com/pricing#
 Types of ERP

There are three different types of ERP implementations – cloud, on

premise, and hybrid. Explore the benefits of each and choose the
one that makes the most sense for your business.
Benefits of ERP
History of ERP

Source:https://4acc.com/article/what-is-erp/
Next-generation enterprise applications
–Enterprise solutions/suites: Make applications more
flexible, Web-enabled, integrated with other systems
–SOA standards
–Open-source applications
–On-demand solutions
–Cloud-based versions
–Functionality for mobile platform
Next-generation enterprise applications (cont.)

–Social CRM
•Incorporating social networking technologies
•Company social networks
•Monitor social media activity; social media analytics
•Manage social and Web-based campaigns
–Business intelligence
•Inclusion of BI with enterprise applications
•Flexible reporting, ad hoc analysis, “what-if” scenarios,
digital dashboards, data visualization
Enterprise application challenges
–Highly expensive to purchase and implement
enterprise applications
Average cost of ERP project in 2014—$2.8 million
–Technology changes
–Business process changes
–Organizational learning, changes
–Switching costs, dependence on software vendors
–Data standardization, management, cleansing
THANK YOU