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BI and ERP integration
David C. Chou and Hima Bindu Tripuramallu
Department of Computer Information Systems, Eastern Michigan University,
Ypsilanti, Michigan, USA, andAmy Y. ChouCollege of Business 写留学生论文Administration, University of Toledo, Toledo, Ohio, USA
Abstract
Purpose – This paper seeks to propose a business intelligence (BI) and enterprise resource planning(ERP) integrated framework that adds value to enterprise systems.Design/methodology/approach – A conceptual approach is taken.Findings – ERP systems integrate all facets of the business and make data available in real time.
BI tools are capable of accessing data directly from ERP modules.
Originality/value – The value-added system proposed allows enterprise-wide transaction data to becollected and analyzed for organizational decision-making processes.
Keywords Decision support systems, Data handling Paper type Conceptual paper
1. Introduction
Over the past few years, integrated enterprise resource planning (ERP) applicationshave brought a new way of delivering operation information. The advantages of thesechanges have transformed many organizations, which improved financial visibility,streamlined supply chain processes, and minimized human resource (HR) processes
and overhead.The beginning of ERP concept can be traced back to 1960s. During that time, themanufacturing systems were mainly handling inventory control, based on traditionalinventory concept. The next decade’s (1970s) manufacturing systems shifted to
material requirement planning (MRP) transactions. MRP helped in translating themaster production schedule into requirements for raw material planning andprocurement. The concept of MRP-II (manufacturing resource planning) came in 1980s.Manufacturing resource planning involved optimizing the production process anddistribution management (Yen et al., 2001). Later, MRP-II was extended to include
areas such as corporate Finance, personnel management, engineering process, andbusiness project management. The development of manufacturing systems gave birthto ERP that supported the cross-functional coordination and integration within theproduction process. The modern ERP includes the entire range of a company’sactivities. ERP system is a business management system that integrates all facets ofthe business, including planning, marketing and manufacturing (Yen et al., 2001). Morethan 20,000 firms in the world spent billions of US dollars to install the ERP systems.Around 70 percent of the Fortune 1,000 companies had deployed ERP applications by1997 for manufacturing, finance, HRs, and other main areas (Yen et al., 2001).Information is the foundation of every critical business decision. The creation of
ERP systems integrates all functional areas of the organization. ERP systems arebackbone systems for most organizations that integrate back-office applications suchThe Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available IMCS
13,5
340
Information Management &
Computer Security
Vol. 13 No. 5, 2005
pp. 340-349
q Emerald Group Publishing Limited
0968-5227
DOI 10.1108/09685220510627241
as finance, purchasing, HR, inventory management, etc. Although ERP systems canintegrate all business transaction data into their master databases for organizationalplanning, it is not a system for data analysis and decision support process.Decision support functio