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DW and ERP

This document provides an overview of enterprise resource planning (ERP) systems and data warehousing technologies. It discusses how ERP systems help integrate business processes and optimize resource usage to reduce costs and increase efficiency. The document also explains how data warehouses integrate internal and external data across time to provide analytical insights more quickly. Two case studies are presented to illustrate the benefits of further integrating ERP systems and data warehouses. The future implications of combined ERP and data warehousing applications are also addressed.

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0% found this document useful (0 votes)
99 views8 pages

DW and ERP

This document provides an overview of enterprise resource planning (ERP) systems and data warehousing technologies. It discusses how ERP systems help integrate business processes and optimize resource usage to reduce costs and increase efficiency. The document also explains how data warehouses integrate internal and external data across time to provide analytical insights more quickly. Two case studies are presented to illustrate the benefits of further integrating ERP systems and data warehouses. The future implications of combined ERP and data warehousing applications are also addressed.

Uploaded by

gloriatran811
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Enterprise integration with advanced information

technologies: ERP and data warehousing

Yun Zeng
Department of DSC and MIS, Miami University, Oxford, Ohio, USA
Roger H.L. Chiang
Information Systems Department, College of Business Administration, University
of Cincinnati, Cincinnati, Ohio, USA
David C. Yen
Department of DSC and MIS, Miami University, Oxford, Ohio, USA

Keywords Current practices lead to a great


Resource management, 1. Introduction opportunity to integrate ERP systems further
Data handling, Integration,
Business administration, Enterprise resource planning (ERP) is a with data warehouses to reduce costs,
Warehousing providers strategic tool that helps a company to gain increase value-added activities, improve
competitive advantage by integrating efficiency and hence establish competitive
Abstract business processes and optimizing the advantages.
In today's dynamic and changing
resources available. There are many ways in This paper will cover the evolving
environment, companies have a
strong need to create or sustain which an ERP system can help an development and applications of ERP and
their competitive advantages. In organization. First, integrating all parts of data warehousing. In order to illustrate the
order to be competitive, the organization so that it has more control power and value of integrating them, two
companies need to be responsive over its operation can reduce an case studies are presented. The pros and cons
and closer to the customers, and
deliver value-added products and
organization's operating costs. Second, an of each application will also be addressed.
services as quickly as possible. ERP system helps to increase operational Finally, we address the future implications of
Companies also need to be able to efficiency by connecting and integrating all integrated applications of ERP and data
support organizational information business processes so that people use less warehousing, and their relationships with
needs faster and better than their time to perform tasks. Third, users now have
competitors. These goals can be other applications.
realized by applying two emerging
more and faster access to the information,
information technologies: which improves the time and information for
enterprise resource planning decision making.
(ERP) supporting business
2. An overview of ERP
As far as the importance of data
process integration; and data As ERP has become more popular, software
warehousing is concerned, it rests on the
warehousing supporting data
integration. Companies with the following aspects. First, data warehouses applications have emerged to help business
further integration of ERP and data shrink the length of time between a business managers implement ERP (Lycos). ERP
warehousing will have great event's occurrence and an executive alert systems are designed to derive their value
advantages in the competitive with the summarized data or information from the implementation of best practices for
environment. Two cases have
been studied and presented to
obtained from online analytical processing business processes (APICS, 1998[1.2]). These
illustrate its values. (OLAP) and data-mining tools. Given this include: interoperability (i.e. integration)
information delivery time shrinkage, among different functions within an
business decision makers can make use of organization, carefully designed and
opportunities that otherwise they would managed workflow; and a shared
miss. Second, the data not only are integrated understanding about the meaning of data.
across different functional units of the
organization (data from internal sources), Characteristics of ERP
but also include the external entities of the An ERP system is the integration of various
organization such as customers and organization processes and it must possess
suppliers (data from external sources). Third, some key characteristics to qualify as a true
a data warehouse integrates data across time business process integration solution. These
to provide views obtained from the trend features are:
analysis of its data. Finally, it can help to free . Flexible. An ERP system should be flexible
the company from IS department resource in order to respond to the changing needs
limitations. With a warehouse, users can of an enterprise. Client/server technology
create most of their reports themselves, enables ERP systems to run across
Information Management & usually within a matter of minutes various database servers through open
Computer Security (Dernovsek, 1999). database connectivity (ODBC).
11/3 [2003] 115-122
# MCB UP Limited
[ISSN 0968-5227] The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at
[DOI 10.1108/09685220310480390] http://www.emeraldinsight.com/researchregister http://www.emeraldinsight.com/0968-5227.htm

[ 115 ]
Yun Zeng, Roger H.L. Chiang . Comprehensive. An ERP system is able to can have direct access to the supplier's ERP
and David C. Yen support a variety of organizational system (Waurzyniak, 2000).
Enterprise integration with
advanced information functions and is suitable for a wide range
technologies: ERP and data of business organizations.
warehousing . Modular and open. An ERP system should 3. An overview of data
Information Management & have open system architecture, meaning warehousing
Computer Security
11/3 [2003] 115-122 that any module can be interfaced or
According to Bill Inmon[4]; Inmon, 1996), who
disconnected whenever required without
is considered to be the originator of the data-
affecting the other modules. It should also
warehousing concept, a data warehouse is
support multiple hardware platforms for
defined as a subject-oriented, integrated,
companies having a diverse collection of
time-variant and non-volatile collection of
systems.
data in support of management's decision-
. Beyond the company. A good ERP system
making process. The characteristics of data
is not confined to the organizational
warehouses are as follows:
boundaries, but can support online . Subject-oriented. Data are organized
connections to other business entities
according to subject instead of
outside the organization.
application. For example, an insurance
. Simulation of reality. An ERP system can
company using a data warehouse would
simulate real business processes on the
computer. organize the data by customer, premium
. Multiple environments required. For ERP, and claim, instead of by different
most businesses must maintain multiple products.
environments in order to achieve uptime
. Data integration. The data within the
requirements: development/test, promote- warehouse are integrated in that the final
to-production, highly available product is a combination of various legacy
production, and disaster recovery[3]. data management systems integrated into
a cohesive set of integrated data. It is
Evolution of ERP critical to use consistent naming
With more and more companies being conventions, variable measurement
equipped with ERP systems, companies are standards, encoding structures and data
looking for new applications of ERP systems, attribution characteristics.
requiring ERP to keep evolving to meet the
. Time-variant. One of the key
new business needs. There are several characteristics distinguishing
current issues around ERP development that warehouses from operational
need to be addressed. First, ERP is moving its environments is the currency of the data.
focus from the largest companies to the Operational systems require real-time
mid-market, which is going to involve more views of the data, while warehouse
than a new marketing campaign. According applications generally deal with longer-
to AMR Research, sales of ERP to companies term, historical data. Warehouses provide
with revenues of $1 billion plus have actually access to a greater volume of more
declined, falling 14 percent in 1998 alone. detailed information over a longer time
Meanwhile, the overall ERP markets are period.
charging ahead at 21 percent annually. AMR . Non-volatile. Data warehouses are static.
Research is so enthusiastic about ERP's The data in the warehouse are read-only;
prospects at smaller companies that it updates or refresh of the data occur on a
projects a rapid and sustainable acceleration periodic, incremental or full refresh basis.
of overall growth to 32 percent annually The warehouse data are non-volatile in
through 2003 (Michel, 1997, 1999). Since that the data that enter the database are
middle and small market companies have rarely, if ever, changed.
different needs, infrastructure, and resources
from the Fortune 1,000, ERP software is being Evolution of data warehousing
made on several more management fronts, Data warehousing has undergone many
from costs to start-up time required. In changes. The first data warehouses were
addition, changes in the supply chain are created to answer the demands of business
forcing ERP suppliers to change how the managers and executives who wanted to be
software operates. The Internet represents able to extract, from the volumes of data
the next major information technology produced by their in-house operational
enabler that allows rapid supply chain applications, the key historical and summary
management between multiple operations data that would allow them better to plan,
and trading partners. Most ERP systems are analyze and control their business
enhancing their products to become enterprises. The initial data warehouses
``Internet-enabled'', so customers world-wide answered this need by providing integrated
[ 116 ]
Yun Zeng, Roger H.L. Chiang historical and summary data. The next Case study 1: Congo Accelerator in Shell
and David C. Yen phase in the data warehouse evolution was International Petroleum Company
Enterprise integration with
advanced information the creation of the data mart. To address Shell Oil Products is perhaps the best-known
technologies: ERP and data the challenges raised by the spread of of the five business streams within the giant
warehousing Shell International Petroleum Company.
multiple independent data marts, the concept
Information Management & of the dependent data mart has emerged. In a With a presence in 125 countries, revenue of
Computer Security
11/3 [2003] 115-122 dependent data mart architecture there is a US$100 billion and employing over 50,000
central data warehouse that contains the people world-wide, the company dominates
``corporate view of the data'' and supplies the its global markets with activities in aviation,
departmental data marts with the specific marine, refining and the retail and
data they require. While there are a lot of commercial sectors. However, Shell Oil
Products faced the following challenges:
things happening in the marketplace, here . current ERP system unable to hold and
are a few of those that reflect the current
quickly change complex models required
development and status of data
by the business;
warehousing[5]: . increasing demand for multidimensional
. SAP data-warehousing strategy gains
management information; and
momentum (SAP). SAP[6] is launching a . diverse data sources and platforms
direct assault on the data-warehousing impeding data management.
programs of Fortune 1,000 firms. It is
likely that SAP and its newly launched Shell Oil Products operates SAP and JD
business information warehouse (SAP Edwards ERP systems in over 100 countries.
BW) will garner a sizable portion of new As the company's main repository of
data warehouse initiatives in large financial information, the ERP systems are
used for order and invoice processing.
corporate accounts over the coming years.
. ERP and data-warehousing integration. However, with increasing requirements for
fast, accurate and up-to-date operational
SAP is only one of many ERP vendors that
information, the system could not provide
are starting to wake up to the possibilities
segmented management information without
and implications of data-warehousing. At
unacceptable impact on response times. ``It
the same time, many data-warehousing
was simply too slow,'' confirms Gerrit-Jan
vendors are trying to tap into the ERP
Smitskamp, VP of financial management
market by forging direct linkages to ERP Information at Shell Oil Products. ``We were
source data. finding that it couldn't handle the
. More and more analytic applications. Data multidimensional data queries that were
warehouses support more end-user being demanded by sales staff. We needed to
analytic activities because they contain get a global and regional view of our
integrated data from a variety of sources operations based on a single, truthful data
to support the end-user. As such, the data source.'' Smitskamp made the decision to
warehouse can be the point of integration develop a data warehouse system and a user-
for many customer-oriented applications, friendly report and analysis tool that would
such as sales, marketing, e-commerce, and make light work of the company's large and
customer service systems. disparate data sources.
. Data warehousing and the Web. The Web
Goals desired
became a twofold advocate of data
For the integration of ERP system and data
warehousing. First, the Web created a
warehousing, Shell Oil Products basically
delivery vehicle that enabled many data wanted to:
warehouses to connect with a much larger . reach the major goals of providing a
community of users. Second, as common data warehouse across oil
companies continue to develop and deploy products;
e-commerce solutions, they find that . deliver harmonized and segmented
understanding their new electronic management information that supports
customers is critical. the business at the national level; and
. enable aggregation of data for regional
and global reporting.
4. Case studies on the integration The objective was to develop a management
of ERP and data warehousing information solution that was cost-efficient,
In this section, two cases regarding the easy to roll out world-wide, able to
integration of ERP systems with data accommodate changes quickly in business
warehouses are discussed to illustrate structures, and capable of providing
its values. information in a simple, accessible format
[ 117 ]
Yun Zeng, Roger H.L. Chiang world-wide. Working with Shell Services Benefits appreciated
and David C. Yen International (SSI), the software support By integrating ERP with data warehousing,
Enterprise integration with
advanced information operation for the Shell Group, they developed the company obtained the following business
technologies: ERP and data the oil products management information benefits:
warehousing ability to rapidly change and adopt new
system (OPMIS). OPMIS is a hybrid of three .

Information Management & business structures;


Computer Security different elements that fulfilled all the
11/3 [2003] 115-122 company's data management requirements.
. increased profitability due to improved
customer profiling and reporting; and
Solution experimented . time and cost savings due to minimal
As an ERP-independent data management training.
tool, KALIDO was the ideal choice for oil
products. It was designed to recognize the Smitskamp states that the versatility of
KALIDO in accessing a variety of data
fact that product structure, organizational
sources has contributed to significant
structure, product categories, geographical
savings in time and money when compared
boundaries and other business dimensions
with the option of trying to redevelop and roll
change over time ± which makes it flexible
out a central ERP system. Furthermore, with
enough to accommodate any business model. PowerPlay contributing to an improved
``The data model within KALIDO is another understanding of customer profitability, he
critical element,'' adds Smitskamp. ``It anticipates overall savings to the company
provides the structures for segmenting the due to the KALIDO/Cognos solution to be
sales information the way we want ± by class around $140 million. ``We are already
of products, customers sold to and delivered achieving considerable business benefits not
to, industry, market sector, business unit, only through the speed with which we can
and so on.'' Functionally, KALIDO make changes to our business structures,''
automatically consolidates and extracts Smitskamp continues, ``but also through the
sub-sets of information as data marts ready speed with which we can incorporate new
for report and analysis[7]. However, the companies (through acquisitions) into the
standard reporting tool used by KALIDO is system and roll them out globally. It doesn't
an Excel pivot table whose limits would be matter into what ERP platform we are buying
± KALIDO performs for them all!'' Smitskamp
quickly reached with the volume of sales data
reports that the general feeling among users
transacted by oil products. PowerPlay from
is that the OPMIS system is very easy to use,
Cognos, however, gave users unlimited
thanks to PowerPlay providing an intuitive
capacity and provides users with a fast, easy-
front-end tool. Consequently little initial
to-use and powerful analytical tool. training is required, thus saving even more
Furthermore, it is a hand-in-glove fit with time and resources.
KALIDO[5].
Implementations
Changes proposed With Cognos having achieved Authorized
Smitskamp claims that, thanks to KALIDO, Shell Supplier status and the KALIDO/
any change to the business model could be Cognos solution successfully implemented in
accomplished and posted to all their over 80 countries, Smitskamp is keen to
world-wide operating divisions in a very package the solution and market it to other
short time and this is exactly what happened businesses within and outside Shell. ``As one
when the company restructured its business of the world's largest companies, we have a
to be more region-centric. The update was huge potential internal market that can also
downloaded by each operating company with achieve proportionately huge savings in cost
little effort and without changing the and resources ± in the order of billions of
underlying ERP systems. ``We started in dollars,'' he suggests. Smitskamp has the last
December 1999 with Cognos PowerPlay only. word: ``The KALIDO/Cognos solution has
achieved real benefits for us. It is better than
Within a month PowerPlay was rolled out in
anything we have seen and is more open-
all key locations world-wide for our financial
ended and, therefore, more competitive in the
reporting offering segmented business
long term.''
analysis,'' Smitskamp confirms. After the
initial trials, 400 users of segmented business Case study 2: Fintech Services Ltd
results were running PowerPlay as their Both ERP and data warehouse applications
front-end management report and analysis are usually associated with large companies.
tool. Sales personnel are also using it with a So it is surprising that some of the first
proposed uptake in sales and marketing, companies to begin mixing these two
which was estimated at over 1,000 users by applications are smaller companies. Fintech
the end of 2000. Services Ltd, the certified business solutions
[ 118 ]
Yun Zeng, Roger H.L. Chiang provider for SAP in western Canada and relational database, Fintech chose IBM DB2
and David C. Yen Alaska, which specializes in delivering SAP as its partner to provide the data-
Enterprise integration with solutions to smaller companies, has already
advanced information warehousing capacity to the SAP R/3 system.
technologies: ERP and data helped some 20 small businesses make the According to Tempany, the company selected
warehousing transition. Fintech has worked with several IBM DB2 Universal Database over Informix
Information Management & of its clients ± mostly on NT and AS/400 and Oracle, not only for its performance and
Computer Security
11/3 [2003] 115-122 platforms ± to add data warehouse scalability, but also because it makes more
capabilities to relatively young SAP R/3 business sense, since it can provide
implementations. Despite the fairly non- customers with advanced and affordable
traditional mix of high-end applications and technology[8].
mid-range platforms, says Bill Tempany While client success is closely tied to the
(president and CEO of Fintech), the information systems that Fintech customers
challenges these projects face do not vary use, it is imperative that the business system
significantly from those of more mainstream Fintech provides will accommodate the long-
implementations. term growth strategy of those customers.
The biggest hurdle Tempany's team has This means offering a highly scalable
faced is gathering business requirements for solution. Since the customers are constantly
the data warehouse. ``It's very difficult growing and wanting to migrate to different
getting the information out of the users' environments, with DB2 the company can
heads,'' Tempany says. ``And data may not be move the customers up from Windows NT,
stored the way people view their business through the UNIX, AS/400 and S/390
because ERPs have a specific way of platforms without changing the company's
managing data across multiple business data structures and technologies. Therefore,
processes. For example, if someone using an it is a long-term decision to invest in a world-
ERP requisitions goods from a field office, a class database such as IBM DB2.
capital report in the head office will suddenly
show that someone has spent x dollars. The Benefits appreciated
invoice may not have come, the goods may After successful integration of ERP with data
not have been received, but the costs show up warehouse systems, Fintech expects to
on reports immediately.'' In this respect, provide the following benefits to its clients:
what makes ERPs advantageous can also
. ERP data are consistent and uniform
cause problems. Because ERPs handle so across divisions, which eliminates the
much processing internally ± frequently complex data transformation processes
across departments ± business managers can that traditional warehousing projects
no longer relate how the data are really face.
getting from A to B. So, while data warehouse
. DB2 is optimized for SAP R/3 to provide
designers in non-ERP environments can excellent transaction performance and
query business users to establish business high data availability and DB2 requires
rules, the business rules in ERP systems are little to no maintenance.
so tightly coded that modeling an ERP-based
. SAP R/3, based on IBM DB2 Universal
warehouse poses significant challenges Database on Windows NT, provides the
(MacMillan, 2000). back-bone of the Fintech accounting
system and is a preferred database
Desired goals platform for other Windows NT solution
Fintech wants to have the following goals offerings that Fintech's clients are
realized by the integration: seriously considering.
. Provide customers with real-time access
to accurate, cross-functional information, Large company or small, Tempany sees a
which enables them to automate many of bright future for anyone interested in
their business processes. moving beyond standard ERP functionality
. Equip the company with a corporate to incorporate newer decision-support and
database that is truly cross-platform and Web-based technologies. ``Data warehousing
truly scalable across all system sizes and and e-business are both mainstream issues
technologies. for SAP, and they are keeping both areas
. To have a system with low maintenance relatively open, so users have a choice of
costs. tools.''

Solutions to the application


Since Fintech desired to provide customers
with real-time access to accurate,
5. Analysis of case studies
cross-functional information and IBM DB2 Major approach and direction of each case
can offer them a universal database so that Although these two cases are all about the
all the company's data can reside in a integration of ERP and data warehousing,
[ 119 ]
Yun Zeng, Roger H.L. Chiang they have different approaches. In the first information required. Its major
and David C. Yen case, the integration is realized by updating disadvantages are that it does not include a
Enterprise integration with ERP functions and integrating them into one
advanced information query optimizer and it has no consistent
technologies: ERP and data of the big data-warehousing vendors ± architecture for capturing incremental data
warehousing Cognos. In the second case, the integration is changes.
Information Management & applied by combining data-warehousing
Computer Security
11/3 [2003] 115-122 functions provided by IBM into that of a Unique characteristics of each case
major ERP system ± SAP R/3. The two cases mentioned above are unique
In the first case, Shell Oil Products used from two perspectives. From a business and
SAP and a JD Edwards ERP system in over application perspective, the first case
100 countries. When they realized that the involves a company that is an end-user and is
systems could not provide segmented therefore more concerned about which
management information without products are best suited to its uses and match
unacceptable impact on response times, they its existing system. In the second case,
decided to seek another system. They Fintech is a certified business solutions
reviewed several options but felt that they provider and therefore concentrates more on
were not good for company use either whether it is necessary to add a new
because they were unsuitable for the tasks or data-warehousing system to SAP R/3, its
because they did not match the company's benefits and costs, and on whether its
existing system. The Oracle system, although integrated products have a market share or
it is used by a sister company, Shell bright future. Fintech thinks that data
Chemicals, was not structured enough for warehousing and E-business are both
Shell Oil Products' purposes. Shell Oil mainstream issues for SAP and it wants to
Products finally chose the KALIDO/Cognos
keep both areas relatively open, so users can
solution. From the above, we can see that, in
have a choice of tools. Since the two
the first case, the company started the
companies belong to two types of businesses,
integration by finding the problems in the
they have different perspectives when
existing system first, then by comparing
approaching the integration of ERP and data
different solutions and finally by taking the
warehousing.
proper integration to serve the company's
purpose.
In the second case, Fintech is just a
provider of ERP solutions and they did not 6. Future implications
have a data-warehousing function. When they From the above analysis of ERP and data
realized the power of the integration of the warehousing, as well as the two case studies,
two technologies, they started to think about the integration of ERP and data warehousing
adding data-warehousing capabilities to has the following implications. First,
relatively young SAP R/3 implementations. companies need to decide when and how ERP
Finally, they chose IBM DB2 as their partner and data warehouses should be integrated.
as a data warehouse provider because it is There are three options to consider:
best optimized for SAP R/3. 1 Wait until after ERP implementation is
complete to start the data warehouse. This
Pros and cons of different integration allows the ERP process design to complete
products in two cases a settling-out period. Waiting to take on a
For the above two cases, each has its own
data warehouse may be a function of
type of integration and, thus, each has a
resource constraints and an
different product of integration. In the first
organization's ability to absorb change
case, the major product is developed based on
(Konicki, 2000a, b).
Cognos Accelerator, while the second one is
2 Build a data warehouse in combination
based on SAP R/3. Each product has its own
advantages and disadvantages. For Cognos with the ERP system. The ERP system
Accelerator, its major advantages are that it becomes much more interesting to
is a customized software, its data access does management as data warehouse
not need ABAP programming, and it can capabilities are added. This approach can
combine both SAP and non-SAP production provide earlier benefits and better overall
systems. However, its biggest disadvantage is integration based on early planning.
that it is very costly. For SAP R/3, its major 3 Lead with data warehouse to provide
advantages are that it provides compatibility early benefits. It may be possible to start
with several high-performance, high capacity building the data warehouse immediately
database vendors such as Oracle and using legacy data. This not only provides
Informix. It is also easy to access all R/3 data early benefits, but also may help the
and facilitates identification of specific organization to better define their needs.
[ 120 ]
Yun Zeng, Roger H.L. Chiang While there is no right answer ± each business-to-consumer (B2C) e-commerce, the
and David C. Yen organization must assess the options in the Internet is challenging and changing
Enterprise integration with traditional business models (LaPlante, 1999).
advanced information context of its environment ± at a minimum it
technologies: ERP and data makes sense to undertake a data-warehousing B2B e-commerce and the Web-enabling of
warehousing strategy assessment as early as possible in ERP information are major forces driving the
Information Management & the ERP implementation. growth of business intelligence and data
Computer Security
11/3 [2003] 115-122 Second, companies throughout the world warehousing. The decision to look beyond
are investing heavily in developing ERP ERP vendors for data-warehousing and
systems and data warehouses. Unfortunately, e-commerce technology certainly represents
in many cases these are being managed as an opportunity for purveyors of business
non-integrated efforts, but the trend is intelligence and data-warehousing solutions,
shifting as companies realize that integration and sends a strong message to ERP vendors.
will be able to maximize their value. B2B e-commerce systems will place
Third, data warehouse solutions from ERP significant demands on IT and vendors, as
vendors can be a double-edged sword. While they demand new levels of scalability,
they simplify the process of populating and performance, functionality, security and
maintaining the ERP-sourced data interoperability. These demands will exceed
warehouse, some inflexibility is often built those to which database and data warehouse
into the design. In addition, ERP data administrators are accustomed, and will
warehouses are complex undertakings. They radically change how data-warehousing
may well end up containing larger data technologies have been implemented. Many
volumes than the ERP system itself. By organizations will look to new and
definition, these solutions need to address innovative data-mining/data-warehousing
the information needs of the whole technologies, such as virtual data
enterprise. Information delivery solutions warehousing, to meet the increasing
from ERP vendors are not just another demands of line-of-business managers.
module, so companies need to make sure that
they bring solid data-warehousing
experience to any ERP data-warehousing 7. Conclusions
information delivery project. Companies
ERP and data warehousing are two very
considering them have two options:
powerful information technologies, which
1 Implement with currently available
separately help the company gain
functionality and wait for additional
competitive advantages. Although ERP and
enhancements. This is often the choice
data warehousing have different
where a company has adopted a one-
characteristics, functions, architectures and
vendor strategy. The data warehouse will
applications, vendors from these two are
be more closely integrated with the
increasingly concerned about integrating
underlying ERP system, and the ERP
them to support better management of the
vendor takes responsibility for keeping it
companies' resources, providing fast and
current with updates over time. The
efficient customer service and getting
downside is that it may take several years
quicker and more accurate information from
for solutions to be proven, and in certain
the system. Some vendors which already
markets companies risk falling behind the
tried the integration application,
competition in their ability to leverage
experimented when making decisions on
corporate data.
which software to use, and achieved great
2 Implement a hybrid solution that uses
success. Among companies that have already
ERP vendor product functionality where
introduced the integrated application of ERP
appropriate, and add functionality using
and data warehousing, some have even
third-party tools. As the ERP vendor
expanded the uses of the integration to Web-
solution matures, more analytical
related application to gain further
functions can be migrated to it. It is
advantages from the system. Obviously, this
important to recognize that once a custom
will be the trend in later development for
solution is developed it can be costly to
both ERP and data warehousing. However,
replace it.
companies that are thinking about
Another important implication is the integration also need to be careful to avoid
relationship between ERP, data warehousing the possible drawbacks and to get the
and B2B e-commerce. The Internet is rapidly maximized benefits from it. Several future
evolving beyond that of a global village into a implications could be concluded from the use
virtual data warehouse and an electronic of integrated products. One is that of
marketplace world-wide. As an enabling Internet-related applications. With its power
platform for business-to-business (B2B) and and incomparable advantages, the Internet
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Yun Zeng, Roger H.L. Chiang will help ERP data warehousing to realize
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