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ERP and Related Technologies
Chapter # 3 – Alexis Leon
ERP Systems Limitations
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ERP Systems serve an important function by integrating separate business
functions – Materials Management, Production Planning, Sales, Distribution,
Finance, and Accounting etc. into a single application. However, ERP Systems
have three significant limitations:
1.
Managers cannot generate custom reports or queries without help
from a programmer and this inhibits them from obtaining
information quickly, which is essential for maintaining a competitive
advantage
2.
ERP Systems provide current status only, such as open orders.
Managers often need to look part the current status to find trends
and patterns that aid better decision making.
3.
The data in the ERP application is not integrated with other
enterprise or division systems and does not include external
intelligence
Related Technologies to Overcome ERP
Limitations
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Business Process Reengineering (BPR)
Management Information System (MIS)
Decision Support Systems (DSS)
Executive Information Systems (EIS)
Data Warehousing
Data Mining
On-Line Analytical Processing (OLAP)
Supply Chain Management
Business Process Re-engineering
Business process reengineering (BPR) is, in computer science and
management, an approach aiming at improvements by means of elevating
efficiency and effectiveness of the business process that exist within
and across organizations.
Business Process Re-engineering
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Business process reengineering is one approach for
redesigning the way work is done to better support
the organization's mission and reduce costs.
BPR Methodology
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Starting with mission statements that
define the purpose of the organization
and describe what sets it apart from
others in its sector or industry.
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Producing vision statements which define
where the organization is going, to
provide a clear picture of the desired
future position.
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Build these into a clear business strategy
thereby deriving the project objectives.
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Defining behaviors that will enable the
organization to achieve its' aims.
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Producing key performance measures to
track progress.
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Relating efficiency improvements to the
culture of the organization
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Identifying initiatives that will improve
performance.
Management Information Systems (MIS)
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MIS is a computer-based system that optimizes the
collection, collation, transfer, and presentation of
information throughout an organization.
Decision Support Systems
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It helps organizations such as businesses to analyze data about current situations,
compare available options and assess probable outcomes.
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Decision Support Systems are interactive information systems, that rely on
integrated set of user-friendly software and hardware tools, to produce and
present information targeted to support management in the decision making
process.
Executive Information System
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EIS is a Decision Support System especially made for
senior-level executives.
EIS Considerations:
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The overall vision and mission of the company and the
company goals
Strategic Planning and Objectives
Organizational structure
Crisis Management and Contingency Planning
Strategic Control and Monitoring of overall operations
Data Warehousing
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The primary concept of data warehousing is that
the data stored for business analysis can be
accessed most effectively by separating it from the
data in operational systems.
Data Mining
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Data Mining is the process of identifying valid, novel,
potentially useful and ultimately comprehensible
information from databases that is used to make crucial
business decisions.
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Modeling the investigated system discovering
relations that connect variables in a database are
the subjects of data mining.
OLAP-Online Analytical Processing
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Fast Analysis of Shared Multidimensional Information
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FAST means that the system is targeted to deliver most
responses to users within five seconds
ANALYSIS means that the system can cope with business logic
and statistical analysis that is relevant for the application and
the user, and keep it easy enough for the target user.
SHARED means that the system implements all the security
requirements for confidentiality
MULTIDIMENSIONAL means that the system must provide a
multidimensional conceptual view of the data
INFORMATION is refined data that is accurate, timely, and
relevant to the user
Supply Chain Management
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Network of facilities and distribution options that
performs the function of procurement of materials,
transformation of these materials into intermediate and
finished products, and the distribution of these finished
products to customers.