Enterprise Architecture Planning:
The implementation of an ERP solution in an organization is a strategic matter. In the absence of proper planning, ERP applications may fail and may turn even profit making companies into loss making companies. It should be ensured that there is a perfect fit between the ERP application and the organization's requirements. Before going in for an ERP package, the top management should analyze the needs of the organization - whether there is a need for quick flow of information between business partners, whether the existing management information system facilitates quick decision making or if it needs to be made more effective, whether there is manual documentation work that can be eliminated, and whether there is a need for integration between different business functions.
ERP architecture is multilayered (hardware layer, relational database layer, database access layer, application software layer, etc) that facilitates communication and transactions among the members of the supply chain. Developing an architecture for the ERP system is one of the first activities in an ERP project. The architecture should cover all the business processes in the organization. It should take into consideration all the interconnections and interdependencies of the business functions. The goals, objectives and strategies of the organization also form the basis for the development of ERP architecture. Prior to developing the architecture, it is advisable to meet the employees in different departments to obtain first hand information on the processes carried out in each department and in what ways other departments are dependent on their departments in getting their processes completed. This helps organizations leverage the knowledge and experience of functional managers and operators who face real-life business problems, in order to build effective ERP architecture.
It is required that the architecture is related from a holistic analysis of company. This shows that a data view or a function view alone may not be adopted for developing the ERP architecture, but an integrated method view is the only way an effective architecture may be developed. ARIS (Architecture of Integrated Information System) prepared by Prof. A.W. Scheer of the IWI University of Saarland, Germany is the most commonly used method for an integrated process view. According to the ARIS framework, a complex business process may be viewed in terms of data, function, company and process views. The data view emphasizes different data entities and the relationships between them (e.g. date of placing order, item name, code, customer name and address). The function view breaks each method into a set of activities and establishes hierarchical relationships between them. For example, the production function is splited into production planning and production control; the sales function is splited into receiving a customer inquiry, making a customer offer, confirming the order, addressing a customer status inquiry and tracking the customer order.
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