ENTERPRISE SYSTEM ARCHITECTURE ◦ Defines the ERP modules that support the
various business functions of the
organization. Examples include:
>Once ERP systems are integrated and
●Accounting
implemented successfully in a company, they
become the cornerstone of the organization ●Human Resources
because every single transaction will be
●Procurement
processed through this system. •
●Fulfillment
> In addition to the Systems Integration, it is
also necessary to focus on: ◦ Business System– Defines the ERP architecture through
process architecture. the physical components of hardware,
software, and networking angle.
◦ Business requirements.
Comparative between Functional vs. System
◦ Budget.
Architecture
◦ Project management.
◦ Commitments from top management.
◦ Continuous communication with
employees informing them about future
changes
Why Study Enterprise Systems Architecture?
>Help management and the implementation Enterprise Systems Architecture (ESA)Model
teams understand in detail the features and
components of the enterprise system.
>Provide a visual representation of the
complex system interfaces among the ERP
application and databases, operating
systems, legacy applications, and
networking.
> Management can develop a better IT plan if
the requirements for system infrastructure,
training, change management, and business
process reengineering are clarified.
Components of the Enterprise Systems
Architecture
Functional
ERP system Categories
Industry-specific
Company Size
Small and medium sized businesses
Small and medium sized enterprises
Large enterprises
Deployment ERP Modules From Three Vendors
On premises
Cloud
Hybrid
ERP Modules
>The key role of an ERP system is to provide
support for such business functions as
accounting, sales, inventory control, and
production.
> ERP vendors, including SAP, Oracle, and
Microsoft, etc. provide modules that support
the major functional areas of a business.
> The ERP software embeds best business
practices that implement the organizations
policy and procedure via business rules.
Overview of Modules
Typical ERP Modules
Production ◦ Helps in the planning and
optimizing of the manufacturing capacity,
parts, components, and material resources
using historical production data and sales
forecasting.
Purchasing ◦ Streamlines the procurement
process of required raw materials and other
supplies.
Inventory Management ◦ Facilitates the corporate objectives, and retain top
processes of maintaining the appropriate level performers.
of stock in a warehouse
◦ Increase efficiency and help ensure
Overview of Modules (cont’d) compliance with changing global and local
regulations by using standardized and
Sales and Marketing ◦ Implements functions
automated workforce processes.
of order placement, order scheduling,
shipping, and invoicing. ◦ Enable creation of project teams based on
skills and availability, monitor progress on
Finance ◦ Can gather financial data from
projects, track time, and analyze results.
various functional departments and generate
valuable financial reports. 🞂 ◦ Manage human capital investments by
analyzing business outcomes, workforce
Human Resource ◦ Streamlines the
trends and demographics, and workforce
management of human resources and human
planning
capitals.
Procurement and Logistics Execution
Miscellaneous Modules ◦ Nontraditional
modules such as business intelligence, self- ◦ Sustain cost savings for all spending
service, project management, and e- categories by automating such routine tasks
commerce. as converting requisitions into purchase
orders and by allowing employees to use
electronic catalogs to order products and
Benefits of Key ERP Modules services.
Self Services ◦ Flexible support for ◦ Reduce costs through process automation,
employees’ business functions.– Simplified integration of suppliers, and better
access to relevant information. 🞂 collaboration.
Performance Management ◦ Delivery of real- ◦ Improve resource utilization with support for
time, personalized measurements and cross-docking processes and data collection
metrics.– Provides executives with access to technologies. (RFID and bar codes).
such information as business statistics and
◦ Enhance productivity of incoming and
key performance measurements. 🞂
outgoing physical goods movements.
Financials ◦ Ensure compliance and
◦ Reduce transportation costs through better
predictability of business performance.
consolidation and collaboration.
◦ Gain deeper financial insight and control
Product Development and Production ◦
across the enterprise.
Shorten time to market.
◦ Automate accounting and financial SCM.
◦ Deliver higher quality products and ensure
◦ Rigorous support for financial reporting— timely delivery.
SOX Act
◦ Real time visibility and transparency
HRManagement ◦ Attract the right people, (availability check).
develop and leverage talents, align efforts with
Sales and Service ◦ Higher number of sales
orders processed and reduction in
administrative costs.
◦ Easy access to accurate, timely customer
information.
◦ Cost-effective mobile access for field
employees.
◦ Reduce travel costs by using online
functions.
◦ Adhere to environmental, health, and safety
reporting requirements.
◦ Improve the management of incentives and
commissions.
◦ Realize more effective real estate
management.