Unit-2

ERP and related Technology

ERP have 3 limitation

(1) Managers can not generate custom reports or queries

wihout the help of a programmer and this inhibits managers
from obtaining information quickly so that they can act on it
for competitive advantage
(2) ERP system provides current status only such as open
orders. Managers often need to look past the current status
to find trends and patterns that aid better decision making

(3) The data in ERP application is not integrated with other

enterprise or division systems and doesn't include external
intelligence.
ERP Related Technologies
• (1) BPR (Business Processing Reengineering)

Business process re-engineering (BPR) is a business

management strategy, originally pioneered in the early
1990s, focusing on the analysis and design of workflows
and business processes within an organization. BPR aimed
to help organizations fundamentally rethink how they do
their work in order to dramatically improve customer
service, cut operational costs, and become world-class
competitors.[
.... BPR
• Since the evolution of processes is a product of the
pressures at the time, they may no longer be the optimal
process for the current environment. Consequently,
business process re-engineering sometimes involves
scrapping and/or drastically altering existing systems and
processes in order to create the best processes to fit
current business needs.
.... BPR

Business process re-engineering for enterprise purposes,

for example, often involves retiring old databases in favor of
an enterprise data warehouse. The database can then be
coupled with enterprise class applications such as
enterprise resource planning, customer relationship
management, and so on, effectively replacing all the
previous systems.
 Business Intelligence

• Business intelligence software (BI software) is designed

specifically to analyze all business data to better
understand an organization's strengths and weaknesses.
 BI.....
• The phrase business intelligence (BI for short) is the
combination of software applications, methodologies and
business systems that play a key role in the strategic
planning process of a corporation.

• Most companies collect huge amounts of data from its

business operations. Keeping track of that information
requires a wide range of software programs and different
database applications for various departments (e.g. sales,
finance, supply) throughout the organization to access
and use the data.
 BI.....
• Using multiple software programs makes it difficult to retrieve
information in a timely manner and to perform analysis of the
data. A business intelligence solution replaces the multiple
tools traditionally used to collect and analyze the data.

• The effect of a business intelligence system, however, is much

easier to define. The BI system takes all the raw data and
provides an organization with useful and relevant reports and
graphs that management and decision-makers within the
organization can make sense of -- and then use -- to analyze
business trends to capitalize on.
There are so many
separate BI tools and
software available in the
market now a days but
instead of dealing with all
these individual tools and
software, ERP packages
containts majority iof the BI
features and functionalities
inside
Data Mining
• What is Data Mining
• Data mining is a process used by companies to turn raw
data into useful information. By using software to look for
patterns in large batches of data, businesses can learn
more about their customers to develop more effective
marketing strategies, increase sales and decrease costs.
Data mining depends on effective data collection,
warehousing and computer processing.
 BREAKING DOWN Data Mining
• Grocery stores are well-known users of data mining techniques.
Many supermarkets offer free loyalty cards to customers that give
them access to reduced prices not available to non-members. The
cards make it easy for stores to track who is buying what, when
they are buying it and at what price. After analyzing the data,
stores can then use this data to offer customers coupons targeted
to their buying habits and decide when to put items on sale or
when to sell them at full price. Data mining can be a cause for
concern when a company uses only selected information, which is
not representative of the overall sample group, to prove a certain
hypothesis.
 Data Warehousing and Mining Software
• Warehousing is when companies centralize their data into
one database or program. With a data warehouse, an
organization may spin off segments of the data for
specific users to analyze and use.

• Data mining programs analyze relationships and patterns

in data based on what users request. For example, a
company can use data mining software to create classes
of information.
 Data Warehouse V/s Data Mining.....
• To illustrate, imagine a restaurant wants to use data
mining to determine when it should offer certain specials.
It looks at the information it has collected and creates
classes based on when customers visit and what they
order.

• In other cases, data miners find clusters of information

based on logical relationships or look at associations and
sequential patterns to draw conclusions about trends in
consumer behavior.
 What is the KDD Process?
• The term Knowledge Discovery in Databases, or KDD for short,
refers to the broad process of finding knowledge in data, and
emphasizes the "high-level" application of particular data mining
methods. It is of interest to researchers in machine learning,
pattern recognition, databases, statistics, artificial intelligence,
knowledge acquisition for expert systems, and data visualization.

• The unifying goal of the KDD process is to extract knowledge from

data in the context of large databases.
KDD