LO4 :The relationship between an ERP system and a data

warehouse
 • It refers to a suite of software that use
ERP SYSTEMS – to manage day to day business
Enterprise activities such as accounting,
Procurement, Project management,
Resource Risk management and supply chain
Planning operations.

• ERP Systems are designed around a

common, defined data structure that
typically has a database.
• ERP systems tie together and define a plethora of business
processes and enable the flow of data between them.

• By collecting an organization’s shared transactional data

from multiple sources, ERP systems eliminate data
duplication and provide data integrity with a "single source
of truth."
• ERP systems are designed around a common, defined data
structure (schema) that typically has a common database.

• This helps provide information across the enterprise using

normalized data based on common definitions and user
experiences With ERP, these core constructs are then
interconnected with defined business processes driven by
workflows across business departments (e.g. finance, human
resources, engineering, marketing, operations), connecting
systems and the people who use them. Simply put, ERP is the
vehicle for integrating people, processes and technologies across a
modern enterprise.
• A key ERP principle is the central collection of data for wide
distribution.

• Instead of several standalone databases with an endless inventory

of disconnected spreadsheets, ERP systems bring order to the
chaos so that all users from the CEO to accounts payable clerks
create, store, and use the same data derived through common
processes
Types of ERP Software :
Industry Specific ERP
Example : Oracle
Web-Based ERP
Example : Sage, SAP, NetSuite ERP, Tech Integra ERP
Small Business ERP
Example : Zoho
Open source ERP software
Example : odoo, Erpnext
Hybrid ERP
Example : Infor CloudSuite, Epicor ERP
 • Enterprise resource planning (ERP)
ERP Systems with systems integrate and automate internal
Data warehouses and external management of information.

• Data warehouses are required because

ERP systems don’t store the data in a
manner that supports analysis and
reporting. They also do not always gather
all available data because of system
incompatibilities and increasing amounts
of information from systems external to
the enterprise.
• The main difference between data ware houses and ERP is that data warehouse
offers optimization of inventory on the basis of real-time information. Information
can be generated to show the best location for every item to be put based on
historical trends and data. Moreover, data warehouse are usually standalone
systems, needing other modules such as accounting and customer relationship
management.
• Enterprise Resource Planning (ERP) Software on the other hand, automates the
activities across all the departments in an organization including accounting,
customer relationship management and inventory management.

• An ERP software mainly facilitates the flow of information among all functional
areas. ERP software has most of the capabilities of data warehouse like tracking
the course of inventory items picked, packed and shipped. The ERP software is an
integrated all-in-one solution.
• It is important to note that it is counter-productive to have more than one
software application running your operations. This is because multiple applications
decrease efficiency and productivity through duplicate entries and rekeying errors.
END OF THE SESSION…..