Non-ERP Systems

•Decentralization
• Different databse per department are needed

•Hand-made error are incurred

•Information for decision-making is not reliable
•Additional costs are incurred
Traditional Model
CLOSED DATABASE ARCHITECTURE

•Similar to a flat-file approach

•In-house design
• Incompatible technology platforms
• Create special procedures and programs
•Data remain with the property of the application,
thus distinct and separate databases exist
• High degree of data redundancy
• Data entry errors
• Lack of effective communication
Enterprise Resource Planning System
•Multiple module software packages that evolved primarily from traditional
manufacturing resource planning (MRP II)
•Supports a smooth and seamless flow of information across the organization by
promoting a standardized environment

•OBJECTIVE: Integrate key processes of the organization

Enterprise Resource Planning System
•Accurate data
•Reliable and faster decision-making
•Lower Operations Cost
•Seamless business operations
TWO MAIN ERP APPLICATIONS
1. Core Applications
2. Business Analysis Applications
Core Applications
ONLINE TRANSACTION PROCESSING (OLTP)
•Support day-to-day activities
•Mission-critical tasks
•Include sales and distribution, business planning, shop floor control and logistics
modules
Business Analysis Applications
ONLINE ANALYTICAL PROCESSING (OLAP)

•Supports management-critical tasks through

analytical investigation of complex data captured in
data warehouses:
1. CONSOLIDATION: aggregation or roll-up of data
2. DRILL-DOWN: permits disaggregating data to reveal the underlying details
that explain a phenomena
3. SLICING AND DICING: enables user to examine data from different
viewpoints
•Decision support tool
• Real-time information
• Timely decisions
• Improve performance and achieve competitive advantage
ERPS Configurations
Client-server model
◦ form of network topology in which a user’s computer or terminal (the client)
accesses the ERP programs and data via a host computer called the server

A. TWO-TIER MODEL
B. THREE-TIER MODEL
Two-Tier Model
•Servers handle both application and database duties
•Local Area Network (LAN)
Three-Tier Model
•Database and application functions are separated
•Wide Area Networks (WAN)
ERPS Configurations
1. Database Configuration
• Selection of database tables in the thousands
• Setting the switches in the system
2. Bolt-on Software
• Third-party vendors provide specialized functionality software
• i.e: Domino’s Pizza
• Supply Chain Management links vendors, carriers, logistics,
companies and Information Sytem providers
• Supply Chain is the set of activities associated with moving
goods from raw materials stage to the customer