Sir Syed University of Engineering & Technology

Department of Computer Science & Information Technology

IT-315 - ENTERPRISE SYSTEMS

Lecture 4
ENTERPRISE SYSTEMS

Prepared by: Engr. M. Nadeem

What is Enterprise?
 Business

 Skilled People are enterprise.

 A group of people connected with each other for a common cause are enterprise.

 Enterprise is a collection of entities.

 An enterprise is organization of entities and people which connect with each

other at certain place and time to accomplish something.

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What is Enterprise Systems?
 Enterprise systems are also known as ERP Systems.

 ERP stands for Enterprise Resource Planning.

 Enterprise Resource Planning (ERP) is a system that integrates all the departments
and functions of a company into one cohesive unit.

 It allows for the flow of data between all business areas, which helps to improve
efficiency and decision-making.

 It is implemented in many ways, including on-premise, cloud-based, or hybrid

systems.

 Enterprise Applications keep track of information related to the operations of the

enterprise and execute the core processes that create and manipulate this information.

 Information entered in one process is immediately available for other processes.

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History of Enterprise Systems

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Evolution of Enterprise Systems

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Evolution of Enterprise Systems

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ERP System Components
• ERP system, like its information system counterpart, has similar components such as hardware,
software, database, information, process, and people.
• These components work together to achieve an organization’s goal of enhanced efficiency and
effectiveness in their business processes.
• An ERP system depends on hardware (i.e., servers and peripherals), software (i.e., operating
systems and database), information (i.e., organizational data from internal and external
resources), process (i.e., business processes, procedures, and policies), and people (i.e., end
users and IT staff) to perform the input, process, and output phases of a system.
• The basic goal of ERP, like any other information system, is to serve the organization by
converting data into useful information for all the organizational stakeholders.

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Example of Enterprise Systems

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ENTERPRISE SYSTEMS ARCHITECTURE
Some essential characteristics distinguish an ERP solution from any other software
type. This includes,

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ERP Modules
Integrated ERP includes several different components based upon specific
features adapted to the various aspects of the organization, including front-office
tasks. This quick overview shows the most common modules.

 Accounting and Finance.

 Customer Relationship Management (CRM).
 Supply chain inventory management.
 Manufacturing.
 Human resources.
 Business intelligence.
 Purchase management
 Sales and Marketing management

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What is new with enterprise systems?
With exponential progress in systems’ data storage and computing capacity per
Moore’s law, we witness advancements in enterprise software systems.

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What is new with enterprise systems?

 Cloud ERP
Vendors host their software on the cloud computing system instead of
customers’ data centers. It helps in faster upgrading and reduces maintenance
efforts.

 SAAS model
Software-as-a-service models allow small and medium-scale businesses to
use software systems without substantial initial investments. This model does
not demand higher installation costs or IT people. Instead, it is pay-as-you-go
based on how much you use.

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How to select an ERP system?

ERP software installation can be a daunting process with numerous software options.
The best software must meet the requirements and the business needs while
providing the necessary support for successful implementation.

The following are key factors to consider when selecting an ERP system:

• The size of the company and its industry

• Company’s business processes and needs
• Implementation timeline and resources available
• Cost of software and implementation services
• Maintenance and upgrade requirements

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How to select an ERP system?

Once you have identified your needs, you can use the information to decide by comparing
systems with similar features and functions.

The following are some of the critical factors that will help you select ERP software for
your business:

• Product Functionality
• Customization and Integration Capabilities
• Vendor Support Services (implementation, training, maintenance)
• Cost of the System and Implementation Services.

It can be expensive and requires careful selection to ensure that it will meet your business
needs now and in the future. When selecting software, consider all costs, such as software
licenses, implementation services, hardware and software, upgrades, training, and support.
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Enterprise Resource Planning Software Deployment Options

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Enterprise Resource Planning Software Deployment Options
Enterprise Resource Plan systems vary in scope depending on the size and functions of a
company. Three main types of application deployment models are,

• Deploying on company premises is the traditional on-premises installation, where software

and hardware are installed at a customer’s site. The company controls these resources and
manages updates, security, and other maintenance.

• Hosting – this model involves the provider hosting the application in their data center(s)
and delivering it to users via a web browser. Customers have no hardware to procure or
software to install but depend on their internet connection for access.

• Deploying in the cloud is a SaaS model where applications are installed at the vendor’s
data center and delivered via a web browser or other thin client. Customers have minimal
control over infrastructure, upgrades, and security issues; they use the software.

• Hybrid (some on the cloud or others offline) – companies are increasingly taking a hybrid
approach to deploying software. Some system modules may be deployed in the cloud while
others remain on-premises.

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ERP Buyer Types

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ERP Buyer Types
Following are the common types of buyers.

 Small businesses – Small businesses are an important market for enterprise software
systems. They must manage their finances, operations, and human resources
effectively to grow.

 Medium-sized businesses – Medium-sized businesses need software to manage their

more extensive and complex operations. In addition, they need a system that can scale
and integrate with other business systems.

 Large enterprises – Large enterprises have the most complex operations and need
software to manage their resources effectively. They also require a system that can be
customized to meet their specific needs.

 Government organizations – Government organizations need enterprise software to

support their specific needs. In addition, they require a system that is secure, scalable,
and compliant with regulations.
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ERP Buyer Types
 Non-profit organizations – Non-profit organizations need software to manage
their donations, volunteers, and finances. They also require a system that is easy
to use and can be accessed by all employees.

 Educational institutions need software to manage students, faculty, and finances.

 Healthcare institutions need software to manage patients, staff, and finances.

 Retail businesses need software to manage inventory, sales, and employees.

 Manufacturing companies need software to manage production, inventory, and

finances.

 Technology companies need software to manage employees, projects, and

finances.

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What is the significant difference between open source ERP and
commercial ERP?

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Key Features of a Modern ERP System
A modern ERP system is an integrated software system that helps a company manage
its business processes, from ordering and inventory to sales and finance. An ERP
system includes accounting, human resources, manufacturing, marketing, and sales
modules.

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Key Features of a Modern ERP System

 Cloud-based: A modern ERP system is cloud-based, which means it can be

accessed from anywhere, at any time. It provides a lower total cost of
ownership since there is no need for a significant up-front investment in
hardware and software and no ongoing maintenance fees.

 Real-time analytics: A modern cloud ERP system offers real-time analytics to

make informed decisions about your business in real-time. For example, you
can track your inventory in real-time and make changes to your production
schedule accordingly.

 Central database: A modern ERP platform has a central database, giving you
a single source of truth for all your data. For example, using a customizable
dashboard, you can view the supply chain’s financial and inventory data in one
place.

 Scalable: A modern ERP system is scalable, which means it can grow with
your business. For example, if you add a new product to your inventory, your
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ERP system can automatically update your accounting records.
Key Features of a Modern ERP System

 Data Security: A modern ERP system provides data security features, such as
audit trails, to keep track of all changes made to the system, so you can always
see who made what changes and when and ensure that your data is safe and
secure.

 Digital Capabilities: A modern ERP solution enables digital capabilities, such as

e-commerce and mobile apps to help you run your business more efficiently.

 Workflow Automation: A modern ERP system can automate your business

processes, such as invoicing and purchase orders, to save time and money.

 Business Intelligence: A modern ERP system offers business intelligence

features, such as predictive analytics and machine learning to help you make
better decisions about your business.

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What are the benefits?

There are many benefits of a modern ERP system, including:

 Improved efficiency and productivity

 Increased visibility into all aspects of the business

 Greater flexibility and scalability

 Reduced costs

 Increased customer satisfaction

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ERP Implementation Life Cycle
The ERP implementation life cycle is a necessary process to follow to ensure a
successful ERP deployment.

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Top 10 Vendors of ERP of 2022

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Top 10 Vendors of ERP of 2022

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Top 10 Vendors of ERP of 2022

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Top 10 Free and Open Source ERP software

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 CLASS ACTIVITY # 4

What competitive advantages can an university gain by using ERP?

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THANK YOU !

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