ERP Architecture and Implementation

• ERP in Management
• Prepared by Luis Meing

Objectives

• Architecture
• ERP Implementation
• Benefits and Limitations of ERP

Architecture

• Architecture must be conceived after selecting an ERP Software
• The architecture in most IT implementations is typically conceived before buying or developing software

Types of ERP Architecture: Logical

• Lowest Tier: Database Schema of Entities and Relationships
• Second Tier: Core business processes and business logic
• Third Tier: Details the applications that support various business functions in the ERP system

Types of ERP Architecture: Physical

• Presentation Logic Tier
  • Clients
  • Remote user clients
  • Integration servers
  • Load Balancing Web Servers
  • CITRIX Server Farm
• Business Logic Tier
  • Load Balancing
  • Application Servers
  • Batch Server
  • Print Servers
• Data Tier
  • Production DB Server
  • Reporting DB Server
  • Disk DB Server

ERP Implementation: Business Process Management

• Understanding, visibility, and control of business processes

• Business Process Management involves:

  • Requirements Gathering/Gap Analysis
  • General System Design
  • Building and Testing
  • Implementation
  • Stabilization and Production Support

• This process touches on:

  • Functional
  • Technical
  • Change Management

ERP Lifecycle

• Vendor support for software begins high, slopes downwards to a low and eventually ends during the lifecycle
• This happens during the various releases of the product lifecycle

ERP Implementation: Chocolate

• This is an implementation with considerable modifications to the ERP software package
• Chocolate ERP implementation increases the chances of success
• Modifications increase the investment in the system
• They can also introduce higher implementation risks

ERP Implementation: Vanilla

• Vanilla ERP implementations are minimally modified (or as-is)

Benefits and Limitations of ERP

• Require investment in terms of cost, time, and people.

Benefits of ERP

• Integration of data and applications across functional areas of the organization
• This positively affects security, consistency of inputs, ease of maintenance, and efficiency

Limitations of ERP

• Complexity of installing, configuring, and maintaining the system increases, thereby requiring specialized IT staff, hardware, network, and software resources
• Corporate white-collar crimes
  • Questionable accounting and marketing practices
  • Privacy violations
  • Unauthorized data sharing
  • Spam mail
  • Viruses
  • Snooping
  • Phishing and identity theft

Functional Silos

• Compartmentalized operating units isolated from their environment

Horizontal Silos

• An Organization
  • Planning
  • Organizing
  • Staffing
  • Directing
  • Coordinating
  • Reporting
  • Budgeting

Vertical Silos

• Strategic Management
• Tactical Management
• Functional Operations

Explore ERP architecture, implementation strategies, and business process management. Understand logical and physical tiers, including database schema, business logic, and application support. Also, learn about the benefits and limitations of ERP systems in management.