E-business
E-business system - III
Petr Suchánek
E-business

Outline of the lecture
•ERP in e-business


ERP
•An ERP (Enterprise Resource Planning) system includes core software components, often called
modules, that focus on essential business areas, such as:*
•finance and accounting;
•human resources;
•production management;
•materials management;
•customer relationship management (CRM);
•supply chain management.
•Organizations choose which core modules to use based on which are most important to their
particular business.*
*https://searcherp.techtarget.com/definition/ERP-enterprise-resource-planning

ERP
•ERP systems rely on a centralized relational database, which collects business information and
stores them in tables.*
•Having the data stored centrally allows end users, such as from finance, sales and other
departments, to quickly access the desired information for analysis.*
•Instead of employees in different departments managing their own spreadsheets and reports, ERP
systems allow for reporting to be generated from a single, centralized system.*
•Information updated in one ERP module, such as CRM, HR and finance, is sent to a central, shared
database.*
•The appropriate information in the central database is then shared with the other modules.*
*https://searcherp.techtarget.com/definition/ERP-enterprise-resource-planning

ERP architecture
•ERP applications are most commonly deployed in a distributed and often widely dispersed manner.*
•While the servers may be centralized, the clients are usually spread to multiple locations
throughout the enterprise.*
•Database component
Øthe central repository for all of the data that is transferred to and from the clients;
•Clients
Øhere raw data gets inputted, requests for information are submitted, and the data satisfying these
requests is presented;
•Application component
Øacts as the intermediary between the client and the database.
*http://www.erppandit.com/erp-architecture.html

ERP - benefits
•ERP offers a plethora of benefits, most of which come from information sharing and
standardization.*
•Because ERP components can share data more easily than disparate systems, they can make
cross-departmental business processes easier to manage on a daily basis.*
•They can also enable better insights from data, especially with the newer technologies that many
ERP systems are including, such as powerful analytics, machine learning and industrial IoT
capabilities.*
*https://searcherp.techtarget.com/definition/ERP-enterprise-resource-planning

ERP - benefits
•In addition, ERP software:*
Øboosts efficiencies by automating data collection;
Øenables business growth by managing increasingly complex business processes;
Øhelps lower risk by enabling better compliance;
Øfosters collaboration using data sharing and integrated information;
Øprovides better business intelligence and customer service capabilities; and
Øimproves supply chain management.
*https://searcherp.techtarget.com/definition/ERP-enterprise-resource-planning

ERP – components – Human resource
•ERP HR module streamlines the management of human resources and human capitals.*
•HR modules routinely maintain a complete employee database including:*
Øcontact information;
Øsalary details;
Øattendance;
Øperformance evaluation;
Øpromotion of all employees.
•Advanced HR module is integrated with knowledge management systems to optimally utilize the
expertise of all employees.*
•
*https://www.erp-information.com/erp-hr-module.html

ERP – components – Human resource
•Submodules of ERP HR module:*
•Organizational Management;
•E-Recruitment;
•Time Management;
•Personal Administration;
•Payroll;
•Reporting.
•
*https://www.erp-information.com/erp-hr-module.html

ERP – components – Human resource
*https://solutiondots.com/blog/top-12-erp-human-resource-management-software-2016/


ERP – components – Business Intelligence
•The BI component of ERP collects data and performs analysis that can provide actionable insights
about business processes.*
•The best BI ERP components deliver insights in reports.
•A good reporting feature is very important in BI and enables you to make sense of the data being
analyzed.*
•Some reports come in the form of numbers and tables.*
•
*https://selecthub.com/enterprise-resource-planning/6-main-erp-components/
**https://www.seniorerp.ro/en/a-business-intelligence-solution-helps-you-discover-the-added-value-o
f-an-erp/

ERP – components – supply chain management
•Effective demand forecasting and lean inventory*
ØAn ERP solution in SCM improves the accuracy of demand forecasting and ensures that the cost of
inventory is minimized in case of large-batch production process.
ØA lean inventory is essential to address just-in-time production method to reduce the cost of
production and keep supply chain flexible.
•Reduce production bottlenecks*
ØERP for supply chain significantly reduces the bottlenecks between internal processes and external
suppliers.
ØModern solution helps in handling proper procurement and supply of the goods, services and other
resources that are needed across the supply chain.
*https://www.deskera.com/erp-for-supply-chain-management/

ERP – components – supply chain management
•Transparency through the business
ØThe consolidated view of the supply chain enables the business executive make more informed and
balanced decisions with ERP for supply chain.
*https://www.deskera.com/erp-for-supply-chain-management/
**http://cmuscm.blogspot.com/2014/02/implementing-erp-for-supply-chain.html

ERP – components – inventory management system
•A component of supply chain management, inventory management supervises the flow of goods from
manufacturers to warehouses and from these facilities to point of sale.*
•A key function of inventory management is to keep a detailed record of each new or returned
product as it enters or leaves a warehouse or point of sale.*
•ERP inventory management, short for enterprise resource planning inventory management, refers to
an integrated approach to business planning and operations.**
•With an ERP inventory management system, businesses can manage all their finances, logistics,
operations, and inventory in one place.**
*https://www.tradegecko.com/inventory-management/what-is-erp-inventory-management
**https://searcherp.techtarget.com/definition/inventory-management

ERP – components – inventory management system
•Typical features of an ERP inventory management system
ØStock tracking and management;
ØSales and purchase order management;
ØMulti-channel order fulfillment;
ØWarehouse management and stock transfers;
ØB2B eCommerce functionality;
ØPayment gateway functionality;
ØIntegrations with eCommerce, accounting, shipping and other operational tools;
ØIntelligence reports and analytics.
•
* https://www.tradegecko.com/inventory-management/what-is-erp-inventory-management

ERP – components – inventory management system
* https://www.shopify.com/enterprise/ecommerce-logistics-at-scale
**
https://elogic.co/blog/how-to-implement-a-magento-erp-solution-for-ecommerce-without-spending-too-m
uch-money-based-on-a-case-study/

ERP in e-business and e-commerce
•
•https://hackernoon.com/top-10-erp-and-e-commerce-integration-providers-in-2019-69bacf1bb7d2
•https://www.managementstudyguide.com/erp-and-ecommerce.htm
•https://www.aphixsoftware.com/blog/ecommerce-erp-integration.html
•https://blog.saleslayer.com/7-tips-ecommerce-erp-integration
•https://www.erpsoftwareblog.com/2017/08/4-reasons-e-commerce-erp-made/
•https://www.dckap.com/blog/ecommerce-erp-integration-a-quick-guide/
•
•

The end