erp, functional areas, business processes

1. Enterprise Systems
Raza ul Haq

2. 1: Enterprise Systems
• Definition:
• Enterprise systems are software applications that integrate various
business processes and operations across an organization.
• Advantages:
• Improves efficiency and productivity by automating key functions
and streamlining operations.
• Provides real-time access to data, allowing for better decision-
making.
• Enhances collaboration and communication across different
departments and teams.
• Improves customer service and satisfaction by providing a seamless
experience across different channels.
• Facilitates scalability by providing a flexible and adaptable system.

3. Enterprise Systems
• Examples:
• Systemanalyse Programmentwicklung (SAP)
• Oracle
• Microsoft Dynamics
• Salesforce
• Workday

4. Multi-layered architecture
• Three main layers:
• Presentation layer: provides the user interface for interaction with the
system.
• Application layer: contains the core business logic and processes.
• Data layer: stores and manages the data used by the system.
• Advantages:
• Modularity and Separation of concerns: Multi-layered architecture
separates the system into distinct layers with clear responsibilities,
which makes it easier to develop, test, and maintain each layer
independently. Each layer has a specific function and interacts only
with the layers immediately above and below it.

5. Multi-layered architecture
• Scalability: Multi-layered architecture allows for easy scaling of
individual layers based on the needs of the system.
• Flexibility: Changes or updates to one layer of the system can be
made without impacting other layers. This means the system can be
adapted and updated to meet changing business requirements and
technological advancements.
• Drawbacks:
• Complexity: Multi-layered architecture can be complex to design,
implement, and manage due to the number of layers involved and the
interactions between them.

6. Multi-layered architecture
• Overhead and Latency: Interactions between different layers can
introduce overhead and latency, which can impact system performance
and responsiveness.
• Development and Testing Overhead: Multi-layered architecture can
require additional development and testing efforts to ensure that each
layer works together correctly and meets the needs of the system.

7. Service-oriented architecture
• Definition:
• Service-oriented architecture (SOA) is an architecture style that
involves breaking down a complex software system into smaller,
individual services.
• Each service provides a specific function or piece of functionality, and
can be accessed and used by other applications.
• Architecture:
• In an SOA, services are designed to be loosely coupled, meaning they
can be developed, deployed, and maintained independently of each
other.
• Each service is self-contained and independent, with its own interface
and data format.
• Services are typically accessed through a common communication
protocol, such as web services or Representational State Transfer
(REST) APIs.

8. Service-oriented architecture
• Advantages:
• Improves flexibility and scalability by allowing services to be
developed, deployed, and maintained independently.
• Reduces complexity by breaking down a complex system into
smaller, more manageable components.
• Encourages reuse by making services accessible to other applications
and systems.
• Enhances agility by allowing changes to be made to individual
services without affecting the overall system.

9. Service-oriented architecture
• Drawbacks
• Increased complexity: While SOA can help reduce complexity in
some areas, it can also introduce new complexities, such as managing
the interactions between different services and maintaining consistency
across service interfaces.
• Performance issues: Because services are accessed over a network,
there may be additional latency and overhead that can impact
performance, particularly in high-volume or real-time systems.
• Security concerns: As services are accessed over a network, there
may be additional security risks involved in transmitting sensitive data
between services or external systems.

10. Service-oriented architecture
• Examples:
• Amazon Web Services (AWS)
• Google Cloud Platform (GCP)
• Salesforce Platform
• Microsoft Azure
• IBM Cloud

11. 2: Functional Areas and Business
Processes
• Functional Areas:
• Functional areas are the different areas of a business that are
supported by an ERP system.
• Typical functional areas include
• Finance
• financial accounting
• Budgeting
• financial reporting
• ERP systems can help to streamline financial processes by automating tasks
such as billing, accounts payable, and accounts receivable.

12. Functional Areas
• Human Resources
• employee management
• payroll processing
• benefits administration
• ERP systems can help to automate HR processes, reducing paperwork and
improving accuracy and efficiency.
• Sales and Marketing
• lead generation
• customer relationship management
• order processing
• pricing management
• ERP systems can help to provide sales and marketing teams with real-time
access to customer data and sales information, allowing them to make more
informed decisions.

13. Functional Areas
• Supply Chain Management
• demand planning
• supplier management
• logistics management
• ERP systems can help to streamline supply chain processes by automating tasks
such as purchase orders, inventory tracking, and shipping and receiving.

14. Business Processes
• Business processes are a series of tasks or activities that a company performs to
create a product or service.
• Business processes may involve a range of tasks, such as product design,
procurement, production, quality assurance, and delivery.
• Business processes are essential to the success of any organization, as they
help to ensure that tasks are completed in a consistent, efficient, and effective
manner.
• ERP systems are designed to help manage and optimize business processes by
providing a single source of truth for all data and information related to the
process.
• ERP systems can provide real-time insights into key performance indicators, such
as productivity, inventory levels, and customer demand, which can help
businesses make informed decisions and improve overall performance.
• By automating key business processes, ERP systems can also help to improve
efficiency and reduce costs.

15. Business Processes
• Procurement
• Production
• Sales and marketing
• Order management
• Customer service

16. 3: Functional Area Information
Systems
• Functional Area Information Systems (FAIS) are information
systems designed to support various functional areas within an
organization.
• FAIS collects, processes, and analyzes data related to specific
functions of an organization, such as accounting, finance,
human resources, marketing, and supply chain management.
• FAIS includes software applications tailored to the specific
needs of each functional area.
• Accounting and finance software applications include tools for
recording and processing financial transactions, creating
financial reports, and managing payroll and accounts
payable/receivable.

17. Functional Area Information Systems
• Human resource applications may include tools for recruiting,
onboarding, and training employees, managing employee
records, and tracking employee performance.
• Marketing and sales applications may include tools for
analyzing customer behavior, developing marketing campaigns,
and managing customer relationships.
• Supply chain management applications may include tools for
managing inventory levels, purchasing raw materials, and
tracking the movement of goods through the supply chain.

18. Difference Between FAIS and ERP
• Functional Area Information Systems:
• Designed to support specific functional areas within an organization.
• Developed and implemented as standalone systems to meet the unique
needs of each functional area.
• Typically not integrated with other functional areas and may not be able to
communicate or share data with other systems
• Enterprise Resource Planning (ERP):
• Integrated software solution that provides a single source of truth for an entire
organization's data and processes.
• Includes a suite of integrated software applications that support all major
business functions.
• Designed to share data and streamline processes across the entire
organization.
• Provides a unified view of the organization and enables cross-functional
collaboration and reporting.