ERP & DATA FLOW

WHAT IS ENTERPRISE RESOURCE PLANNING (ERP)?

• Sometimes described as “the central nervous

system of an enterprise,” an ERP software
system provides the automation, integration,
and intelligence that is essential to efficiently
run all day-to-day business operations. Most
or all of an organisation’s data should reside
in the ERP system to provide a single source
of truth across the business
SIX KEY BENEFITS OF ERP
• Higher productivity: Streamline and automate your core business processes to help everyone
in your organisation do more with fewer resources.
• Deeper insights: Eliminate information silos, gain a single source of truth, and get fast answers
to mission-critical business questions.
• Accelerated reporting: Fast-track business and financial reporting and easily share results. Act
on insights and improve performance in real time.
• Lower risk: Maximise business visibility and control, ensure compliance with regulatory
requirements, and predict and prevent risk.
• Simpler IT: By using integrated ERP applications that share a database, you can simplify IT
and give everyone an easier way to work.
• Improved agility: With efficient operations and ready access to real-time data, you can
quickly identify and react to new opportunities.
COMMON ERP MODULES
• Finance: The finance and accounting module is the backbone of most ERP
systems. In addition to managing the general ledger and automating key
financial tasks, it helps businesses track accounts payable (AP) and receivable
(AR), close the books efficiently, generate financial reports, comply with revenue
recognition standards, mitigate financial risk, and more.
• Human resources management: Most ERP systems include an HR module that
provides core capabilities such as time and attendance and payroll. Add-ons,
or even entire human capital management (HCM) suites, can connect to the ERP
and deliver more robust HR functionality – everything from workforce analytics
to employee experience management.
• Sourcing and procurement: The sourcing and procurement module helps
businesses procure the materials and services they need to manufacture their
goods – or the items they want to resell. The module centralises and automates
purchasing, including requests for quotes, contract creation, and approvals. It
can minimise under buying and overbuying, improve supplier negotiations with
AI-powered analytics, and even seamlessly connect with buyer networks.
COMMON ERP MODULES
• Sales: The sales module keeps track of communications with prospects and
customers – and helps reps use data-driven insights to increase sales and target
leads with the right promotions and upsell opportunities. It includes functionality
for the order-to-cash process, including order management, contracts, billing,
sales performance management, and sales force support.
• Manufacturing: The manufacturing module is a key planning and execution
component of ERP software. It helps companies simplify complex manufacturing
processes and ensure production is in line with demand. This module typically
includes functionality for material requirements planning (MRP), production
scheduling, manufacturing execution, quality management, and more.
• Logistics and supply chain management: Another key component of ERP systems,
the supply chain module tracks the movement of goods and supplies throughout
an organisation’s supply chain. The module provides tools for real-time
inventory management, warehousing operations, transportation, and logistics –
and can help increase supply chain visibility and resilience.
COMMON ERP MODULES
• Service: In an ERP, the service module helps companies deliver the reliable,
personalised service customers have come to expect. The module can include
tools for in-house repairs, spare parts, field service management, and service-
based revenue streams. It also provides analytics to help service reps and
technicians rapidly solve customer issues and improve loyalty.
• R&D and engineering: Feature-rich ERP systems include an R&D (Research and
Development) and engineering module. This module provides tools for product
design and development, product lifecycle management (PLM), product
compliance, and more – so companies can quickly and cost-effectively create
new innovations.
• Enterprise asset management: Robust ERP systems can include an EAM module –
which helps asset-intensive businesses minimise downtime and keep their
machines and equipment running at peak efficiency. This module includes
functionality for predictive maintenance, scheduling, asset operations and
planning, environment, health and safety (EHS), and more.
TYPES OF ENTERPRISE DATA
All business enterprises have three
varieties of physical data located
within their numerous information
systems. These varieties of data are
characterized by their data types and
their purpose within the organization.
MASTER DATA
• Master data is usually considered to play a key role in the core operation of a
business. Moreover, master data refers to the key organizational entities that are
used by several functional groups and are typically stored in different data
systems across an organization.
• Additionally, master data represents the business entities around which the
organization’s business transactions are executed and the primary elements
around which analytics are conducted.
• Master data is typically persistent, non-transactional data utilized by multiple
systems that defines the primary business entities. Master data may include data
about customers, products, employees, inventory, suppliers, and sites.
ANALYTICAL DATA
• Analytical data are the numerical values, metrics, and measurements that provide
business intelligence and support organizational decision making. Typically
analytical data is stored in Online Analytical Processing (OLAP) repositories
optimized for decision support, such as enterprise data warehouses and
department data marts. Analytical data is characterized as being the facts and
numerical values in a dimensional model.
FLAT FILE
• A flat-file database is a database stored in a file called a flat file. Records follow a
uniform format, and there are no structures for indexing or recognizing relationships
between records. The file is simple. A flat file can be a plain text file, or a binary file.
• Flat files are usually Excel or delimited text files that business users create in order to
make their own reports when needed. Delimited text files are usually either tab-
delimited or comma-separated value (CSV) files. These files can still be opened in Excel,
though tab-delimited files might need a few extra steps before it can be read (though
because they are text files, Notepad will also do). In order to keep an accurate
enterprise-wide report, these will have to be formatted in such a way that it can be
uploaded back into the ERP or Enterprise Data Warehouse.