UNIT-II

Unit -2

Extended Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is software that facilitates more efficient business processes in
the finance, manufacturing, distribution, sales, and other core business areas.
Extended ERP includes other software and business processes. Integration with ERP is usually
required to eliminate redundant information and processes. Software sold and supported as
integrated may reduce ongoing maintenance costs.

Extend ERP systems with third-party software, often via

vendor-supplied interfaces
Extensions offer features such as:
• Customer Relations Management
• Product Lifecycle Management
• Product Data Management
• Supply Chain Management
• Data Mining
• E-Procurement/E-Commerce

Customer Relationship Management (CRM)

CRM includes software related to business processes for sales teams and call centres to function
more autonomously. ERP and CRM require minimal integration and can come packaged as part and
parcel of an extended ERP.

Product Lifecycle Management (PLM)

PLM software may include design, regulation, manufacturing, distribution, and field service
activities having to do with how a product changes over its life span. Depending on the industry,
PLM software may cover more business processes or be restricted to design and engineering.

Product Data Management (PDM)

PDM systems capture and manage product information, ensuring that information is delivered to
users throughout the product lifecycle. File ownership, version control (check-in and check-out of
files), revision management, and information status (ie In Progress/Generated/Pending
Approval/Released) are all managed by the PDM system. Security and administrative functionality
protect intellectual property rights through role management, project-based security as well as
relevant access rights.
Supply Chain Management (SCM)
SCM may include software for planning and controlling any step in the manufacturing and
distribution process, including tracking external companies’ handling of products. Many different
processes are involved in this progression, which essentially deals with the coordination of supply
chains within and among various businesses.
Many supply networks and channels are involved in the production and delivery of products and
services. Before goods reach the customer, they go through a chain of processes that could include
anything from operations management to logistics, procurement, IT, and warehousing. SCM can be
defined as the integrated and efficient management of supply chain activities.

Data Mining
Data mining is a term from computer science. Sometimes it is also called Knowledge Discovery in
Databases (KDD). Data mining is about finding new information in a lot of data. In many cases,
data is stored so it can be used later.
For example, a store wants to save what has been bought. They want to do this to know how much
they should buy themselves, to have enough to sell later. Saving this information makes a lot of
data. The data is usually saved in a database. The reason why data is saved is called the first use.
Later, the same data can also be used to get other information that was not needed for the first use.
The store might want to know now what kind of things people buy together when they buy at the
store. (Many people who buy pasta also buy mushrooms for example.) That kind of information is
in the data, and is useful, but was not the reason why the data was saved. This information is new
and can be useful. It is a second use for the same data.

E-Procurement/E-Commerce
More and more businesses require an online presence to leverage new markets. The seamless
integration of ERP systems to e-commerce websites via an API (Application Programming
Interface) is becoming an essential requirement.

Integration Requirements
Depending on the industry and functionality requirements, extended ERP modules will require
different degrees of integration. If the software is acquired in an integrated fashion, these costs are
reduced. If extensive, these integration costs may continue to be an issue when anyone software
area is upgraded by the original vendor. Extended ERP may include more software and processes
depending on the industry served.
Extended ERP & Cyber Security – Growing Threats
IT systems – wherever they may be located – are at risk from unauthorised intrusion, theft, and
sabotage.  The more inter-connected a business is, the greater the exposure.
Geographic boundaries no longer exist and threats can come from the other side of the world in a
split second. The weakest link in a company’s IT security is constantly on display – every second,
24 hours a day, 365 days a year.
More and more systems and devices are being integrated and connected via the Internet. IT security
should, therefore, be integrated into all the systems involved.
Robust, integrated defence systems can enable a company’s IT systems to withstand cyberattacks
and to safeguard against events such as system crashes, data loss, and unauthorised access.
It is important to find a solution that supports the business and doesn’t stifle efficiency.
Cyber security has now become a discipline that is addressed at the senior management level, rather
than just by IT departments. The nature of this threat creates a need for
both focus and resources in this field.
Intrusions through a company’s cybersecurity can quickly escalate, and it is, therefore, a good idea
to include documentation of any integration with external parties in order to ensure a
comprehensive and easily followed solution designed to counter any threats and attacks.
Omni ERP Accounting Software has a variety of methods available for automating and integrating
with extended ERP functions.

What Is ERP?
An ERP system is a solution with modules that cater to different departments or a solution that
aligns with a specific industry.
Think of an ERP as a pizza — an overarching program that contains various functions (or toppings)
to assist numerous departments throughout your company.

SCM can be a module within ERP suites. The SCM module may have limited or broad tool
spectrums depending on your software. Review our detailed requirements template for more ERP
features.

Key Features
No two ERP systems are entirely the same. But we’ve compiled a list of the most common features
and departments an ERP assists.
• Integration: Merge this solution with your existing platforms for effortless integration
instead of separate solutions. Or you could invest in a system with everything you need in
one centralized place.
• Data Analysis: Leverage data management, business intelligence (BI), business analytics
(BA) and more to maintain KPIs, generate thorough reports and charts and make better
business choices.
 • Accounting/Financial Management: Simplify bookkeeping and accounting tasks such as
bank reconciliations, general ledger balancing, allocating invoices and distributing bills.
• Customer Relationship Management (CRM): Manage customer satisfaction rates,
feedback, demand patterns and more to strengthen existing customer relationships and create
new ones.
• Sales and Marketing: Implement numerous sales, promotions, order monitoring and other
tools for your sales and marketing teams to automate processes.
• HR: Supervise employee information from benefits and vacation time to training and
certifications. Simplify the recruiting process with practical tools to find ideal candidates.
• SCM: Featured as a module, SCM enables you to review every stage of your supply chain,
assess suppliers and track products to ensure they arrive at the right destination.

Benefits
Owning this solution comes with various benefits. Some perks include:
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• Improve Collaboration: Kiss double-entries and department silos goodbye because this
solution adjoins all departments in one centralized location with real-time updates so
everyone stays in the loop.
• Manage Scalability: If you own a small business to expand into an enterprise or mid-level
company, an ERP program offers various scalability tools, including employee management,
to ensure everything is accounted for as your business grows.
• Strengthen Business Reporting: Garner numerous reports automatically such as profit and
loss, bill of materials (BOMs), sales cycle, profitability and more to determine trends,
predict future demands and make well-informed choices.
• Streamline Customer Service: Thanks to the right CRM, sales and marketing modules,
you’ll garner real-time client information, personalized customer interactions, in-depth
feedback and more.
• Save Money: Centralizing different business departments saves you from investing in
different solutions. You also save on IT and other expenses because ERPs are reasonably
manageable and easy to maintain with less licensing and total cost of ownership (TCO) fees.
• Enhance Data/Cloud Security: Leverage unique cybersecurity measures from data
encryption to access levels and multi-factor authentication to ensure hackers don’t steal your
sensitive company information.
• Increase Productivity: Automating simple tasks like data inputting and sharing, conducting
end-of-month reporting, allocating invoices, etc., enables you to work on other high-caliber
responsibilities, boosting overall efficiency and saving money.

What Is Supply Chain Management (SCM)?

Supply chain management software is a system that governs all supply chain processes, from
planning and manufacturing products to delivering them to customers promptly. This system usually
focuses on SCM practices.
ERP vs. SCM
Now that we’ve taken time to examine the individual qualities of ERP and SCM systems, let’s break
down their fundamental differences.

Industries Served
The main difference in this ERP vs SCM debate is the industries they serve. ERP serves several
departments simultaneously, while SCM only caters to supply chains. A standalone SCM solution is
for you if you’re looking for a program just to handle supply chain responsibilities.
On the other hand, if you’re looking for a solution that caters to accounting, HR, CRM, BI,
manufacturing and more, in addition to SCM, an all-in-one ERP suite is what you need.

Pricing
In the ERP vs SCM debate, most software will run anywhere from a few hundred to thousands of
dollars. An SCM program will likely run less than a whole ERP system. SCMs only carry relevant
features, while ERP has numerous features. So ERPs will be pricier.
An example of an ERP system

Users
User types are also a key factor for ERP vs SCM. For standalone SCM solutions, users will likely
consist of managers, team leads and possibly a handful of employees for time and attendance,
payroll, BI and other associated tasks for that particular facility.ERP users will likely be IT
technicians, executives and department heads to cover every nook and cranny of the organization
and require knowledgeable users.

Using an ERP Supply Chain Solution

Various benefits come from utilizing an ERP supply chain management program or platform with
ERP and SCM traits.

Automate Tasks
Routine tasks such as inputting financial data at the end of the month, accounting for employee
time, evaluating productivity and more can take time away from more critical responsibilities.
Investing in an ERP supply chain management system allows you to complete these tasks instantly
and is available to all departments in real time.
Perform Lean Inventory
Leverage a supply chain ERP program to keep your raw materials and other items organized. Some
programs enable you to manage stock quantities with minimum values and obtain notifications
when objects reach these values to avoid stockouts.

A preview of an SCM solution

Boost Company Collaboration

Utilize an ERP SCM platform to centralize tasks and communicate better with suppliers,
stakeholders, manufacturers and more to keep everyone on the same page. You can also allocate or
receive real-time information on deadlines, projects, staff or other changes.

Centralize Business Workflows

Keep inventory, accounting, manufacturing, SCM, CRM and other processes centralized in one
ERP supply chain management system. The better the centralization, the better you relay
information and manage all operations. You can also catch bottlenecks and boost productivity.

Enhance Customer Satisfaction Rates

Leverage an ERP SCM solution to manage on-time deliveries, supply chain obstacles and more to
ensure customers and suppliers receive products on time. You gain more revenue and a higher
reputation against your competitors when you have happy customers.

Supervise Intricate Supply Chain Frameworks

Implement supply chain ERP software to monitor all supply chain formats and workflows from start
to finish. You can also spot discrepancies, such as missing products, failed delivery times and more.
Keeping an eye on your supply chain ensures nothing slips through the cracks.
What is the connection between business intelligence and ERP?
The terms ‘Business Intelligence (BI)’ and ‘Enterprise Resource Planning (ERP)’ are used a lot in
modern business, and if these terms are still unfamiliar to you, then you’re at the right place. BI and
ERP can drastically enhance business operations if implemented correctly. Here’s a look at how this
can be done, and the connection between these to software types.

Business intelligence (BI) and ERP

What is Business Intelligence (BI)?
BI provides you with a comprehensive overview of your data through business analytics, data
mining, data visualisation and best practice. Having developed exponentially over the years, BI now
provides data-driven solutions that empower business for better decision making.
 
What’s the value of BI?
Businesses can leverage BI to improve business performances using quality data accessed from
various avenues. Here’s how:
• Tracks business performance in various areas
• Analyses customer behaviour
• Identifies market trends
• Identifies issues or challenges within the business
• Notes ways to optimise operations
• Seeks avenues for increased profit

How is this done?

BI is able to achieve all the afore-mentioned benefits through several processes including:
• Data preparation
• Data visualisation
• Data mining
• Reporting and querying
• Descriptive analytics
• Visual analysis
What is Enterprise Resource Planning (ERP)?
ERP software applications allow companies to integrate all processes that run a company through a
single system. It will integrate processes such as planning, purchasing inventory, sales, marketing,
finance, human resources, customer relationship management, and more.
 

What’s the value of ERP?

ERP is a dominant integration tool in business that streamlines operations and enhances day-to-day
working in a number of ways:
 • Time saving – ERP co-ordinates all transactions and workflow, allowing easy access to
essential business-decision information.
• Better customer relations – ERP systems provide insights into customer interactions and
communications, ensuring the customer is effectively attended to at all times.
• Cost savings – ERP systems will lower costs through more efficient supply chain
management and distribution, as well as shortened development times.
• Improved performance – Through its significant business support tools, ERP systems will
improve overall performance.
• Better profits – Because of the time and cost savings as well as improved performance,
your business will benefit from increased profits.

How can ERP assist your BI?

The ERP and BI systems can work together to convert business data into useful information that can
propel your company forward. ERP software can organise your business data which BI software
will then mine and present into usable visuals. Effectively, BI requires ERP to function fully and, in
fact, some ERP systems will have a built-in BI functionality.

What are the benefits of BI in ERP?

Here’s a look at why the symbiotic relationship of BI in ERP is truly beneficial for business:

Enhanced business predictions

Bi will provide you with a complete overview of your ERP data through easy-to-understand
dashboards.

Increased employee time

Where businesses used to have dedicated teams of employees committed to data analysis, BI will
generate accurate reports without such input, freeing up your staff to work on other critical business
operations.

Accurate reporting
The automation of data analytics also diminishes the risk of human error that could have disastrous
effects. It also prevents the creation of multiple reports and multiple headaches.

Predictive and prescriptive analytics

An ERP system with BI functionalities allow for effective historical data analysis and future trend
predictions. BI can also provide prescriptive analytics for future business decisions.
Historical insights
Through ERP and BI, you can analyse your company’s previous data such as sales’ performance as
a way to analyse your numbers and identify areas of growth.

Better data analysis

Using both BI or ERP, you can better analyse and use your business data, determining what is
effective and what isn’t. Core business processes that can be improved include:

• Better forecasting
• Preventative maintenance
• Identifying areas of waste
• Access to updates
• Better visibility

ERP software, then it’s worth considering a system that has BI functionality to enhance your
business operations. Work with industry leader, Canvas Intelligence, for a customised BI solution
that works for your business.