Introductionto Enterprise

Resource Planning(ERP)
Faculty Name: [Link] Deshmukh
Module 1
BE-A/B
AY-2025-2026
 Introduction to Enterprise Resource Planning
(ERP)

•Enterprise resource planning (ERP) refers to a type of software that

organizations use to manage day-to-day business activities such as
accounting, procurement, project management, risk management and
compliance, and supply chain operations.
✔ An ERP solution is a central data repository that connects every department in an
organization
✔ And allows all the company’s information to be accessed—anytime, anywhere
✔ Modern ERP solutions are also powerful, intelligent platforms that can automate
1. manual tasks,
2. consolidate all inventory,
3. product,
4. manufacturing,
5. distribution,
6. and project-related information,
7. and set businesses up for success in the digital economy
ERP is a business management software that is implemented by many business houses to increases
their productivity and performance. It is a very powerful business tool.
It is used to collect, store, manage and interpret data from many business activities like Product
planning, cost, Manufacturing or Service delivery, Marketing and Sales, Inventory management ,
Shipping and payment etc.
Organizational Functional Units
How Do ERP Systems Work?

12
 An ERP Example: Before ERP

Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers

Checks for Parts

Calls back “Not in stock”
Accounting “We ordered the parts”
Files

Accounting
Sends report
Invoices
Sends report
accounting
Ships parts
Vendor
Warehouse
Order is placed “We Need parts #XX”
with Vendor
Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing
 Disadvantages:
✔ Delay orders
✔ Lost data
✔ Keying into different computer systems invites errors
✔ Time Consuming
 COMMON MYTHS ABOUT ERP

•ERP means more work and procedures

•ERP will make many employees redundant and Jobless
•ERP is the sole responsibility of the management
•ERP is just for the Managers/Decision-makers
•ERP is just for manufacturing organizations
•ERP is just for the ERP Implementation team
 COMMON MYTHS ABOUT ERP

•ERP slows down the organization

•ERP is just to impress customers
•ERP Package will take care of Everything
•One ERP Package will suit everybody
•ERP is very expensive
•Organization can succeed with ERP
 An ERP Example: After ERP

Orders
Parts Inventory Data
If no parts,
order is placed
Customers Sales Dept. through DB Accounting

Financial Data exchange;

Books invoice against
PO

Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO

Order is placed
with Vendor

Warehouse
Vendor Purchasing

Ships parts
And invoices accounting
 Major Reasons for Adopting ERP

•Integrate financial information

•Integrate customer order information
•Standardize and speed up operations
processes
•Reduce inventory
•Standardize Human Resources information
 Top ERP Vendors
1. SAP-SAP ERP is an enterprise resource planning software developed by the German company SAP
SE. SAP ERP incorporates the key business functions of an organization. The latest version of SAP
ERP was made available in 2006. The most recent SAP enhancement package 8 for SAP ERP 6.0 was
released in 2016. A brand from Germany known for reliability and longevity, SAP ERP gives
consistent financial and accounting solutions, along with sales and CRM features. SAP S/4HANA
Cloud is a future-ready enterprise resource planning (ERP) system with built-in
intelligent technologies, including AI, machine learning, and advanced analytics.
2. Oracle-Oracle Cloud Enterprise Resource Planning is a cloud-based ERP software application suite
introduced by Oracle Corporation in 2012. Oracle ERP Cloud offers various strengths that set it apart
from its ERP competitors.
3. Microsoft
4. Epicor
5. Infor
6. QAD
7. Lawson
8. SAGE
9. IFS
10. Consona Corp.
 Evolution of ERP Systems
•ERP systems have evolved over the past 30 years.
•ERP systems grew out of MRP II systems.
•To understand the history of ERP systems, review of MRP and MRP II systems is
necessary.
EVOLUTION OF ERP
 Information System

•An information system (IS) is an interconnected set of

components used to collect, store, process and transmit data and
digital information.
•At its core, it is a collection of hardware, software, data, people
and processes that work together to transform raw data into useful
information.
• Information systems are used to run interorganizational supply chains and electronic markets.
• For instance, corporations use information systems to process financial accounts, to manage
their human resources, and to reach their potential customers with online promotions.
• Many major companies are built entirely around information systems.
• These include eBay, a largely auction marketplace
• Amazon, an expanding electronic mall and provider of cloud computing services
• Alibaba, a business-to-business e-marketplace
• Google, a search engine company that derives most of its revenue from keyword
advertising on Internet searches.
• Governments deploy information systems to provide services cost-effectively to citizens.
• Digital goods—such as electronic books, video products, and software—and online services,
such as gaming and social networking, are delivered with information systems.
• Individuals rely on information systems, generally Internet-based, for conducting much of
their personal lives: for socializing, study, shopping, banking, and entertainment.
Inventory Control
Inventory Control is the supervision of supply, storage and
accessibility of items in order to ensure an adequate supply without
excessive oversupply.
 Material Requirements Planning

Material Requirements Planning (MRP) is a computerized

inventory control and production planning system for
generating purchase orders and work orders of materials,
components, and sub assemblies.
Material Requirements Planning(MRP II)
•Material Requirements Planning (MRP II) is an expansion of MRP,
originating during the early 1980s.
•MRP II helps to plan all the resources necessary for
manufacturing; including financial analysis, feedback loops, and
marketing plans.
 ERP
• Today, ERP is the foundation system for domestic
and global business operations, supporting most or
all functional areas in their daily operations. For
some organizations, ERP is a source of competitive
advantage.
 ERP VS MRP
• An ERP refers to multiple different business software that automates several processes such as sales, finance
and HR management. An MRP is one specific module of an ERP.
• A business’s ERP can include an MRP, but it does not have to if manufacturing resource planning is not
relevant to the company. Conversely, a business may choose to solely use an MRP and no other ERP modules
in their business if it is the only function they need.
• ERPs are useful for businesses in every industry while MRPs are used by manufacturing companies that
require resource management.
 How To Decide Which System Is Right for You?

• Depending on our business needs, an ERP or MRP will be a better fit.

Since these two systems have distinct purposes it will likely be an
obvious choice.
• For a manufacturing company looking to streamline operations, production
schedules and inventory, an MRP will suit these needs.
• ERP is customizable to a business’s specific needs and there is a range of
software functions available, including ones to track finance, accounting,
HR, sales and logistics.
 Risks of ERP
• The implementation of ERP systems has been problematic for many organizations.
• The implementation of ERP systems can be a monumental disaster unless the process is
handled carefully.
• Some of the well-known and well-documented failure stories are that of Hershey Foods,
Whirlpool, Dow Chemical, Boeing, Dell Computer, Apple Computer, etc.
• Implementing an ERP project involves a certain amount of risk.
• The ERP system cannot be implemented in a totally risk free environment.
• The only thing that differentiates successful and flawed or failed implementations is the way
in which the risks were anticipated, handled and mitigated.
 Risks of ERP
• ERP implementations are notoriously resource intensive, highly complex, time consuming
and unpredictable in terms of cost and hence very risky.
• There are really three basic areas where problems can occur—people, processes and technology.
• Of the three risk factors, people issues are the most critical.
• People issues contributed to failed implementations in 69% of the case compared to process issues
(18%) and technological issues (13%)
Risks of ERP
 Minimizing the Risks

• Prepare well—Meticulously plan each every step of the implementation.

• Have a contingency plan—There will always be unexpected problems; you should have
a plan for those situations.
• Use a proven methodology—A methodology will help ward off risk, but a contingency
plan is still absolutely necessary.
 People Issues
• People—employees, management, implementation team, consultants and vendors—are
the most crucial factor that decides the success or failure of an ERP system.

• The main people issues are:

1. Change management
2. Internal staff adequacy
3. Project team
4. Training
5. Employee re-location and re-training
6. Staffing (includes turnover)
7. Top management support
8. Consultants
9. Discipline
10. Resistance to change
 Process Risks
• The ERP system will introduce hundreds of new business processes and will eliminate a lot of
existing processes. Managing the implementation of the business processes is a factor that
will decide the success of the ERP implementation.
• The main areas of concern are:
1. Program Management
2. Business Process Reengineering
3. Stage Transition
4. Benefit Realization
 Technological Risks
• Keeping pace with the technological advancements is one of the very important issues that will
determine the success of the ERP systems.
• Some of the technological issues are:
1. Software Functionality
2. Technological Obsolescence
3. Application Portfolio Management
4. Enhancement and Upgrades
 Managing Risks
• Ensuring a smooth ERP migration is complex and every implementation involves a
certain level of business and technical risk.
• Managing risk on an ERP project is crucial to its success. A risk is a potential failure
point.
• The 5 steps to managing risk are:
1. Find potential failure points or risks
2. Analyze the potential failure points to determine the damage they might do
3. Assess the probability of the failure occurring
4. Based on the first three factors, prioritize the risks
5. Mitigate the risks through whatever action is necessary
 Benefits of
ERP
• Installing an ERP system has many advantages—both direct and indirect.
• The direct advantages include improved efficiency, information integration for better decision- making,
faster response time to customer queries, etc.
• The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction
and so on.
• Some of the benefits are quantitative (tangible) while many others are qualitative (intangible).
Tangible Benefits of
ERP
1. Inventory reduction
2. Inventory carrying cost reduction
3. Reduction of lead-time
4. Personnel reduction
5. Cycle time reduction
6. Productivity improvements
7. Other management improvements
8. Financial close cycle reduction
9. IT cost reduction
10. Procurement cost reduction
11. Cash management improvements
12. Revenue/profit improvements
13. Reduced quality costs
14. Improved resource utilization
15. Transportation/logistics cost reduction
16. Maintenance reduction
17. On-time delivery improvements
 Intangible Benefits of
1.
ERP
Information visibility
2. New and improved business processes
3. Customer responsiveness
4. Improved supplier performance
5. Better customer satisfaction
6. Cost reduction
7. Integration of business functions
8. Information integration
9. Better analysis and planning capabilities
10. Improved information accuracy
11. Improved decision-making capability
12. Standardization of business processes
13. Flexibility and business agility
14. Globalization of the organization
15. Better business performance
16. Supply chain integration
17. Use of latest technology
 Implementation Issues
• Many ERP implementations fails because they do not consider the
various implementation issues associated with a complex and risky project.

• Some of these issues are:

1. Project Size
2. Lengthy Implementation Time
3. High Initial Investment
4. Unreasonable Deadlines
5. Insufficient Funding
6. Interface
7. Organizational Politics
8. Scope Creep
9. Unexpected Gaps
10. Configuration Difficulties
 Data Vs Information
• Data can be described unprocessed facts &Figures
• Plain data cannot provide facts that are accurate for Decision Making
• When Data is organized and Structure it becomes Information
 Information System
• An information system is integrated and co-ordinate network of components, which combine
to convert data into information.
• Information systems (IS) is the study of complementary networks of hardware and software
that people, and organizations use to collect, filter, process, create, and distribute data.
Information System
 Components of Information Systems
1. Computer Hardware:
Physical equipment used for input, output and processing. The hardware structure depends upon the type and size of the organization. It
consists of an input and an output device, operating system, processor, and media devices. This also includes computer peripheral
devices.

2. Computer Software:
The programs/ application program used to control and coordinate the hardware components. It is used for analyzing and processing of
the data. These programs include a set of instruction used for processing information.

• Software is further classified into 3 types:

• System Software
• Application Software
• Procedures
3. Databases:

• Data are the raw facts and figures that are unorganized that are and later processed to generate information.

• Software's are used for organizing and serving data to the user, managing physical storage of media and virtual resources.

• As the hardware can’t work without software the same as software needs data for processing.

• Data are managed using Database management system.

• Database software is used for efficient access for required data, and to manage Knowledge bases.
4. Networks resources refer to the telecommunication networks like the intranet, extranet and the internet.

• These resources facilitate the flow of information in the organization.

• Networks consists of both the physicals devises such as networks cards, routers, hubs and cables and software such as
operating systems, web servers, data servers and application servers.

• Telecommunications networks consist of computers, communications processors, and other devices interconnected by
communications media and controlled by software.

• Networks include communication media, and Network Support.

5. Human Resources:
• It is associated with the manpower required to run and manage the system.
• People are the end user of the information system, end-user use information produced for their own purpose, the main
purpose of the information system is to benefit the end user.
• The end user can be accountants, engineers, salespersons, customers, clerks, or managers etc. People are also responsible to
develop and operate information systems.
• They include systems analysts, computer operators, programmers, and other clerical IS personnel, and managerial
techniques.
 Value Chain Framework
•A value chain is a business model that describes the full range of activities
needed to create a product or service. For companies that produce goods, a Value
chain comprises the steps that involve bringing a product from conception to
distribution, and everything in between—such as procuring raw materials,
manufacturing functions, and marketing activities.
 Value Chain
• A value chain is a step-by-step business model for transforming a product or service from idea to
reality.
• Value chains help increase a business's efficiency so the business can deliver the most value for the
least possible cost.
• The end goal of a value chain is to create a competitive advantage for a company by
increasing productivity while keeping costs reasonable.
• The value-chain theory analyzes a firm's five primary activities and four support activities.
 Understanding Value Chain Analysis

•Ever-increasing competition for unbeatable prices, exceptional products,

and customer loyalty, companies must continually examine the value they
create in order to retain their competitive advantage.
•A value chain can help a company to discern areas of its business that are
inefficient, then implement strategies that will optimize its procedures
for maximum efficiency and profitability.
Porter Value Chain Framework
 Porter's value chain

•Porter's Value Chain is a strategic management framework that

analyzes a company's activities to identify its competitive advantage.
•It consists of the primary activities directly involved in production
and delivery and the support activities that allow primary activities to
be executed.
Component of Porter Value Chain
Framework
•Primary Activities
•Support
Activities
 Primary Activities
• Primary activities consist of five components, and all are essential for adding value and creating
competitive advantage:

1. Inbound logistics include functions like receiving, warehousing, and managing inventory.
2. Operations include procedures for converting raw materials into a finished product.
3. Outbound logistics include activities to distribute a final product to a consumer.
4. Marketing and sales include strategies to enhance visibility and target appropriate customers—such as
advertising, promotion, and pricing.
5. Service includes programs to maintain products and enhance the consumer experience—like customer
service, maintenance, repair, refund, and exchange.
 Support Activities
• The role of support activities is to help make the primary activities more efficient. When you
increase the efficiency of any of the four support activities, it benefits at least one of the
five primary activities. These support activities are generally denoted as overhead costs on
a company's income statement:
1. Procurement concerns how a company obtains raw materials.
2. Technological development is used at a firm's research and development (R&D) stage—like
designing and developing manufacturing techniques and automating processes.
3. Human resources (HR) management involves hiring and retaining employees who will fulfill the
firm's business strategy and help design, market, and sell the product.
4. Infrastructure includes company systems and the composition of its management team—such as
planning, accounting, finance, and quality control.
Case Study of Value chain (Starbucks)
•An analysis of Starbucks (SBUX) can help to further illustrate and understand the
value chain concept.
•The Starbucks journey began with a single store in Seattle in the year 1971. From
there it grew to become one of the most recognized brands in the world.
•Starbucks’ mission is, per its website , “to inspire and nurture the human spirit-one
person, one cup, and one neighborhood at a time.”
 Primary Activities of Starbucks
Inbound Logistics
• The inbound logistics for Starbucks refer to company-appointed coffee buyers selecting the finest quality
coffee beans from producers in Latin America, Africa, and Asia.
• In case of Starbucks, the green or unroasted beans are procured directly from the farms by the Starbucks
buyers.
• These are transported to storage sites, after which the beans are roasted and packaged.
• Value is added to the beans through Starbucks’ proprietary roasting and packaging, which helps to increase
their selling value.
• The beans are then sent to distribution centers, a few of which are company-owned and some of which are
operated by other logistic companies.
• The company does not outsource its procurement, ensuring high-quality standards right from the point of
selection of coffee beans.
Operations
• Starbucks operates in more than 80 markets, either in the form of direct company-owned
stores or licensed stores. (Starbucks does not follow the traditional franchising terms.)
• The company has more than 32,000 stores globally. It is also the owner of several brands,
including Teavana, Seattle’s Best Coffee, and Evolution Fresh.
• According to its financial reports, the company generated 81% of its total net revenue during
the first half of its 2020 fiscal year from its company-operated stores while the licensed
stores accounted for 11%.
• There is very little or no presence of intermediaries in product selling for Starbucks. The majority
of the products are sold in stores. However, storage and distribution to retail locations are
important.
Marketing and Sales
•Starbucks invests more in superior quality products and a high level of customer
service than in aggressive marketing.
•However, need-based marketing activities are carried out by the company during
new product launches in the form of sampling in areas around the stores.
Services:
•Starbucks aims at building customer loyalty through its in-store customer service.
•A signature retail objective of Starbucks has always been to provide customers
with a unique Starbucks Experience.
•Service training is a key component of the value chain that helps to make its
offerings unique.
•A substantial amount of value is created when baristas make drinks for
customers.
 Starbucks Support Activities
The four kinds of support activities that can be important in value chain analysis.
[Link]
This includes departments like management, finance, legal, etc., which are required to keep
the company’s stores operational.
Starbucks employs business managers in its corporate offices. It also has store managers
on-site that help to oversee well-designed and pleasing stores complemented with good
customer service provided by the dedicated team of employees in green aprons.
2. Human Resource Management
•The committed workforce is considered a key attribute in the company’s success
and growth over the years.
•Starbucks employees are motivated through generous benefits and incentives.
•The company is known for taking care of its workforce, a key reason for a low
turnover of employees, which indicates great human resource management.
• There are many training programs conducted for employees in a setting of a
work culture, which keeps its staff motivated and efficient.
 Technology Development
[Link] Development
• Starbucks is very well-known for the use of technology, not only for coffee-related processes (to
ensure consistency in taste and quality along with cost savings) but to connect to its customers.
• Many customers use Starbucks stores as a makeshift office or meeting place because of free
and unlimited Wi-Fi.
• Starbucks has launched several platforms where customers can ask questions, give
suggestions, openly express opinions, and share experiences.
• Technology helps to implement this feedback, especially in the area of its rewards program.
• Starbucks also uses Apple’s iBeacon system, wherein customers can order a drink through the
Starbucks phone app and get a notification of its readiness when they walk in the store.
4. Procurement
•Procurement is integrated across various aspects of the supply chain.
•Porter discusses procurement as a support activity.
•Many companies will establish broad terms, requirements, and standards for all of
their procurement dealings.
•However, procurement relationships typically vary widely.
•Starbucks handles all of the procurement for its own coffee beans, which it sees as
one of its competitive advantages.
 Conclusion of Starbuck Value chain
•The concept of value chain analysis helps business managers to
better identify useful and wasteful activities.
• By looking beyond standard means of efficiency analysis while
also seeking to integrate and capture value chain analysis in
business metrics, stakeholders can make important insights related to
operational processes.
•Overall, value chain analysis can be used to potentially identify
value improvement opportunities throughout various steps of a
business cycle, also adding to improved margin efficiencies.
Role of ERP
inOrganization
 Role of
ERP
• ERP tools help in managing accounts, employee records and internal and external factor affecting the company.
• It reduces cost in the long term by increasing the productivity.
• Reduces the time and effort of managing records as compared to the paper records.
• The merger of financial and operational information allows the company to analyze the business needs and act
in a more effective manner.
• By combining all the records in one whole, ERP makes the management of data easier and more productive.
• Apart from records, ERP also helps in the management of material and ensures that no material is lost or stolen.
It would also automate the process of buying and maintaining material after analyzing the stock.
• Helps the company to predict market trends and decide the course of action accordingly.
• Allows the company to expand business using the internet.
• It is a very cost-effective system and the benefits are always greater than investment. This helps in long-term
planning and management.
• This eliminates the need of multiple management software. It helps to integrate the interaction between
marketing, sales, quality control, product processes, supply lines, stocks, human resource module, customer
relationship management, information technology, and many other functions in a single database.
• It reduces the chances of typing errors and re-entry.
• Enables the company to use a single software and maintain one database for the whole company.
• ERP ensure 100% safety of your data with a no leak guarantee.
• Synchronize your data into a whole to help with better management of all the sections.
• ERP help you to expand your business through internet by proper management of the data.
• Allow the IT sections of your company to focus on core business issues instead of
bothering over trivial data management.
• ERP provide the latest software suiting your business needs.
• You can choose a module suiting your business requirements and you don’t need to buy the
complete package and have to pay only for the service you choose to use.
• ERP ensure increased productivity and profitability by proper management of data.
• ERP help you choose the correct ERP module for your business.
• ERP also help you monitor your progress by the deployment of our ERP software.
• ERP also help in analyzing the customer’s mindset and enable your company to plan
accordingly.
 Three-Tier Architecture in ERP system
• An N-Tier Application program is one that is distributed among three or more separate computers in a
distributed network.

• The most common form of n-tier is the Three-tier Application, and it is classified into three categories.

• User interface programming in the user's computer

• Business logic in a more centralized computer, and

• Required data in a computer that manages a database.

 Three-Tier Architecture
3-Tier Architecture
• By looking at the below diagram, you can easily identify that 3-tier architecture has
three different layers.
• Presentation layer
• Business Logic layer
• Database layer
Three-tier Architecture
Some of the popular sites who have applied this architecture are:
• [Link]
• Sales Force enterprise application
• Indian Railways – IRCTC
• [Link], etc.
• Presentation tier: This tier, which is built with HTML5, cascading style sheets (CSS) and JavaScript, is
deployed to a computing device through a web browser or a web-based application. The presentation
tier communicates with the other tiers through application program interface (API) calls.

• Application tier: The application tier, which may also be referred to as the logic tier, is written in a
programming language such as Java and contains the business logic that supports the application's core
functions. The underlying application tier can either be hosted on distributed servers in the cloud or on
a dedicated in-house server, depending on how much processing power the application requires.

• Data tier: The data tier consists of a database and a program for managing read and write access to a
database. This tier may also be referred to as the storage tier and can be hosted on-premises or in the
cloud. Popular database systems for managing read/write access include MySQL, PostgreSQL, Microsoft
SQL Server and MongoDB.
 • 3-tier architecture is a client-server architecture in which the functional process logic,
data access, computer data storage and user interface are developed and maintained
as independent modules on separate platforms.”

A “tier” in this case can also be referred to as a “layer”. The three tiers, or layers, involved
include:

1.A Presentation Layer that sends content to browsers in the form of HTML/JS/CSS. This might
leverage frameworks like React, Angular, Ember, Aurora, etc.
[Link] Application Layer that uses an application server and processes the business logic for
the application.
This might be written in C#, Java, C++, Python, Ruby, etc.
3.A Data Layer which is a database management system that provides access to application
data. This could be MSSQL, MySQL, or PostgreSQL, etc.
 Benefits of a 3-tier app architecture
• The benefits of using a 3-tier architecture include improved horizontal scalability, performance and
availability.
• With three tiers, each part can be developed concurrently by a different team of programmers coding
in different languages from the other tier developers.
• Because the programming for a tier can be changed or relocated without affecting the other tiers, the
3-tier model makes it easier for an enterprise or software packager to continually evolve an application
as new needs and opportunities arise.
• Existing applications or critical parts can be permanently or temporarily retained and encapsulated
within the new tier of which it becomes a component.
• 3-tier application programs may also be referred to as n-tier programs. In this, the letter n stands for
"a number of tiers."
 Advantages of Three-Tier Architecture :
1. The key three-tier benefit is improved scalability, since the application servers can be deployed on many machines. Also, the database does not make longer
connections with every client – it only requires connections from a smaller number of application servers.
2. It improves data integrity. Here, all the updated information goes through the second tier. The second tier can ensure that only important information is allowed
to be updated in the database and the risk of unreliable client applications corrupting information is removed.
3. Security is improved since the client does not have direct access to the database; it is more difficult for a client to obtain unauthorized data. Business logic
is more secure because it is stored on a secure central server.
4. Balancing of load is much easier with division of core business from the server of the database.
5. High performance, lightweight, persistent object.
6. Better to re-use.
7. Scalability : each item can scale horizontally.
8. Performance : Because the presentation tier can cache request, network utilization is minimized the load is reduced.
9. Easy to maintain and modification.
10. Improve data integrity.
11. Improve security
12. Change management is easier and faster to execute, because program logic/business logic is implemented on the centralized server.
13. The added modularity makes it easier to modify or replace one tier without affecting the other tier.
Disadvantages of Three-Tier Architecture:
[Link] is more complex than the 2-tier client-server computing model, because it is more difficult to build a 3-tier application compared to a 2-tier application.
The points of communication are doubled.
[Link] client does not maintain a persistent database connection.
16.A separate proxy server may be required.
[Link] traffic will be increased if a separate proxy server is used.
[Link] physical separation of application servers containing business logic functions and database servers containing databases may be something that
affects performance.