Have any ideas to expand your business? Thought of a smart growth strategy? But having trouble managing day-to-day business operations? Failing to effectively manage the workforce? Not being able to benefit from intracompany collaboration?
Well, you’re not alone. Every company that still relies on traditional modes of business management is in the same boat as you. Yes, you heard right. The traditional methods of business management that benefitted your company decades ago are not at all reliable today. Why?
Look around you; everything you see is dependent on technology. Embracing the tech revolution is what will give you a competitive edge in the corporate sector. A way to get ahead of your game by managing your internal business operations and implementing expansion strategies is the integration of the powerpack, ERP and BI.
Enterprise Resource Planning (ERP) combined with Business Intelligence (BI) has proved to work wonders for any business. From streamlining business operations to providing companies actionable insights to make smart decisions, this tech power combo can really serve as a game-changer for you.
Here is how you can benefit by incorporating ERP and BI into your business management model;
● Streamlined business operations
● Adequate utilization of resources
● Saves times and efforts
● Single database to access the entire company’s data
● Access to actionable insights to make better business decisions
2. The Flow
TOPICS TO BE COVERED
• Why do we need to Integrate BI & ERP?
• Understanding What is an ERP & BI
• The Differences
• The Evolution
• The Integration of Business Intelligence and ERP
• Why Business Intelligence in ERP?
• 7 Benefits of Business Intelligence in ERP
• Examples of ERP With Business Intelligence
• Future of Business Intelligence in ERP
• Business Automation Statistics for 2021
• ERP and Business Intelligence FAQs
3. Enterprise resource planning (ERP) is a mainstay
technology in businesses that want to gather,
analyze and share insights among multiple
departments
WHILE ERP SYSTEMS ARE GREAT AT CONNECTING THE DOTS
BETWEEN BUSINESS PROCESSES TO FIND EFFICIENCIES, THESE
DAYS, REMAINING COMPETITIVE CALLS FOR EVEN MORE:
Real-time data analysis and insights that help organizations make
smarter decisions.
4. WHY INTEGRATE?
GATHER SMART INTER-
DEPARTMENTAL INSIGHTS
FROM AN ERP
CONVERT IT IN TO ACTIONABLE INTEL WITH
THE HELP OF BI
5. What is an ERP?
ORGANIZATIONS USE ERP SOFTWARE TO AUTOMATE
BUSINESS PROCESSES AND GAIN A CENTRAL HUB FOR
INSIGHTS AND CONTROLS.
A modern ERP system draws on a central database that collects
inputs from departments including finance, manufacturing,
operations, sales and marketing and human resources (HR).
This allows stakeholders to gain cross-departmental insights,
allowing them to analyze various scenarios, perform financial
planning and analysis (FP&A) and teasing out process improvements
that can translate to major efficiency gains, cost savings and better
productivity
6. What Is Business Intelligence (BI)?
BUSINESS INTELLIGENCE (BI) SOFTWARE PROVIDES
COMPANIES WITH A COMPREHENSIVE VIEW OF THEIR
OPERATIONS, ENABLING LEADERS TO BASE BUSINESS
DECISIONS ON DATA.
BI also plays a central role in both high-level strategy and tactical
responses to market demands, helping businesses operate more
efficiently, focus on their competitive advantages and ultimately
increase profitability.
BI helps generate dashboards, reports, customer-facing IT systems
and external sources to deliver a detailed, transparent view of the
business’s current standing by pulling data from a centralized
repository. It produces comprehensive, detailed analyses that help
users improve operations in both their front and back offices.
8. ERP and BI have
different
strengths
ERP AND BI SUPPORT
DIFFERENT LEVELS OF
DECISION-MAKING.
• ERP systems add most value at the
operational level, giving businesses a precise
view of how each of their functions is
performing at the moment.
• BI analyzes that and other data, helping
companies dive deeper into their
performance metrics and uncover trends
that, in turn, can be used to fine-tune their
strategies at a high level, a granular level —
or both.
• BI systems drive performance
improvements while containing costs,
including saving time and resources.
9. OLTP + OLAP: BETTER TOGETHER
An online transaction processing (OLTP) system is a data processing system used by
enterprises to record transactions. Business intelligence, on the other hand, is built on an
online analytical process (OLAP) system, which offers multidimensional analytical
capabilities.
10. Evolution: ERP
ERP HAS ITS ROOTS IN THE MATERIAL
REQUIREMENTS PLANNING SYSTEMS USED BY
MANUFACTURERS IN THE 1960S
In the 1980s, these systems evolved to manufacturing resource planning
systems, helping to improve production planning
The unified business management platform debuted the following decade,
paving the way for on-premises, then hosted, then cloud-based ERP to
consolidate business-wide processes onto one central database and make
insights available anytime, anywhere.
ON PREMISE TO CLOUD
11. The roots of BI lie in the decision-
support systems introduced in the
1960s, further developed through the
1980s.
EVOLUTION: BI
BI started to take off as an on-
premises solution in the late 1990s;
only in the past few years have
vendors started to offer BI solutions in
the cloud.
ON PREMISE TO CLOUD
12. Integration of Business Intelligence
and ERP
DATA AND ANALYSIS HAVE ALWAYS BEEN AT THE CORE
OF SOUND BUSINESS DECISION-MAKING.
Organize Store Analyze
13. Integration of Business
Intelligence and ERP
THE INTEGRATION OF ERP AND BI BRINGS EVERYTHING
TOGETHER, HELPING USERS CONSOLIDATE MILLIONS OF
DATA POINTS INTO CLEAR, ACTIONABLE INSIGHTS.
FORWARD-LOOKING BUSINESSES WANT TO SHIFT FROM
HISTORICAL REPORTING TO PREDICTIVE MODELING, THAT
HAS ALSO DRIVEN THE RISING POPULARITY OF ERP-BI
INTEGRATION.
THE ABILITY TO SPOT TRENDS AND PATTERNS,
ANTICIPATE SHIFTS IN THE MARKET AND PROACTIVELY
ADJUST PLANS ARE ALL COMPETITIVE ADVANTAGES IN
TODAY’S DIGITAL ECONOMY.
14. Why Business Intelligence
IN ERP?
BI and ERP software are not
only complementary, they
enhance each other’s
performance.
ENHANCE
ERP systems are integral to
data analysis, breaking
down silos between
essential functions like
finance, HR, operations and
sales.
STREAMLINE
BI turns all of these
information sources into
more than the sum of their
parts, drawing on
operational data from the
ERP system and advancing
it into actionable insights
REFINE COMPANIONSHIP
Today, BI cannot exist
without ERP. BI software
mines ERP databases and,
via dashboards and other
visualizations, makes it
easier for stakeholders
across the business to
consume insights.
Meanwhile, ERP systems
play a bigger role in
strategic decision-making
when elevated by BI
capabilities.
16. FUTURE OF BUSINESS
INTELLIGENCE IN ERP
EVOLUTION
Data and analytics will play an
even bigger role in shaping
business strategy
COLLABORATION
ERP and BI will also promote
greater collaboration among
teams
MONITORING
An integrated ERP-BI solution
brings those valuable functions
together, in one place, in real
time and at the disposal of the
entire organization.
18. • In early May 2020, U.S. employee
engagement advanced to a new high of
38%. —Gallup
• 62% of organizations have up to 25% of
their business processes modeled, but just
2% of the organizations surveyed have all
of their processes modeled. —Signavio
• Digital process automation (DPA) is a
relatively new variant of BPM that is more
lightweight and requires less coding. In
2019, DPA was a $7.8 billion market; it’s
forecast by Mordor Research to grow at a
CAGR of 13%, reaching $16.12 billion by
2025.
PRODUCTIVITY AND TIME
MANAGEMENT
• Robotic process automation (RPA) uses
bots to mimic routine cognitive human
tasks. The RPA market, valued at $1.4
billion in 2019, is forecast to grow at a
CAGR of 40.6% between 2020 and 2027,
according to Grand View Research.
88% of corporate controllers expect to
implement RPA in 2021, though many are
hesitant to use it for financial reporting. —
Gartner
ROBOTIC PROCESS
AUTOMATION (RPA)
19. 60% of retail respondents have
implementation AI, up from 35% during the
prior year, making it the industry with the
sharpest increase. —McKinsey
AI & MACHINE LEARNING
The supply chain management (SCM) market
is expected to grow from $15.85 billion in 2019
to $37.41 billion by 2027, a CAGR of 11.2%. —
Allied Market Research
62% of organizations have up to 25% of their
business processes modeled, but just 2% of
the organizations surveyed have all of their
processes modeled. —Signavio
DEMAND
The global market for accounting software is
forecast to grow at a CAGR of 8.02% from
2018 to 2026, increasing from $11 billion to
$20.4 billion. —Fortune Business Insights
REVENUE RECOGNITION
Digitization and a focus on streamlining
business processes is accelerating demand
for modern workflow automation
management systems, a market forecast to
increase from $4.8 billion in 2018 to more than
$26 billion in 2025. —Grand View Research
WORKFLOW & AUTOMATION
20. 25% of companies are using AI to screen
resumes or job applications. —Littler
HR AUTOMATION
64.8% of businesses planned to invest more
than $50 million in big data and AI initiatives in
2020, up from 39.7% in 2018. —New Vantage
Partners
BIG DATA
At an expected CAGR of 19%, the market
marketing automation software market is
forecast to reach $16.87 billion by 2025. —
Mordor Intelligence
MARKETING AUTOMATION
By 2022, 70% of customer interactions will use
machine learning technology in virtual agents,
up from 15% in 2018. —Gartner
CUSTOMER SERVICE
AUTOMATION
31% of businesses have fully automated at
least one function. —McKinsey
AUTOMATION MARKET
22. Q: WHAT ARE THE STAGES OF BUSINESS INTELLIGENCE?
A: Business intelligence can be broken down into four stages. The first stage is to gather
data. Next, the data is consolidated and cleansed, readying it for analysis. The next is the
creation of the analysis, dashboard, KPIs or reports. Once complete, reports and dashboards
are shared with relevant stakeholders across the business.
Frequently Asked Questions
Q: WHAT IS AN EXAMPLE OF BUSINESS INTELLIGENCE?
A: Business intelligence is valuable for many reasons. For instance, it can be particularly
helpful for forecasting. A retailer may leverage BI to help it more accurately predict demand
over a given period based on a mix of historical data and real-time market conditions.
23. Q: HOW IS OLTP DIFFERENT FROM ERP?
A: An online transaction processing (OLTP) system is a data processing system used by
enterprises to record transactions. ERP is an example of an OLTP system. Business
intelligence, on the other hand, is built on an online analytical process (OLAP) system, which
offers multidimensional analytical capabilities.
Frequently Asked Questions
Q: WHAT IS ERP IN PRODUCTION?
A: ERP solutions make production and manufacturing processes more efficient by giving
companies greater insights into their HR, supply chain, production and quality assurance
systems. They also promote greater transparency and communication between teams
involved in the production workflow.
24. Come in for a chat!
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