Why You Need BI Even With An ERP System

Why You Need BI Even With An ERP System

Often the question asked when it comes to the implementation of Business Intelligence solutions is, “Why do I need BI if I have an ERP system in place?”

Here’s why;

Definitions of ERP and BI

ERP (Enterprise Resource Planning) combines the multiple systems in different departments within an organization into a single integrated software program that runs out of a single database. One integrated software is then divided into software modules that run a replica of their standalone counterparts.

Gartner says, “ERP tools share a common process, data model, covering board and deep operational end-to-end processes such as those found in finance, HR, distribution, manufacturing, service and the supply chain.”

BI is defined by Gartner as: an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance.

The main role of BI is to steer an organization’s success through systematic exploration of the business data (analytics) and providing actionable insight to aid in decision making.

The main differences between ERP and BI are:

-ERP operational systems are full of transactional and operational data. The give views at an operational level and only offer insight up to that point.

BI tools are mainly leveraged to gain insight to aid high level management in strategic decision making.

-ERP is an Online Transaction Processing system (OLTP). This means that the system records transactions as soon as they take place. The main function if to provide high speed transaction recording.

BI is an Online Analytical Processing system (OLAP). OLAP systems provide high speed and high capacity analytics. For instance fast access reports, dashboards, developing scorecards. One can view different data sources on one page and they’re formatted to fit a suitable perspective.

-ERP systems are more focused on current transactional and operational information. Primarily, to save costs and time and ease interdepartmental communication. Efficiency is the main objective of ERP systems.

BI systems are more aligned with forecasting. They allow companies to take advantage of future conditions with this predictive ability.

Essentially, an ERP system is a system made up of different computer systems while BI is a collection of tools that take the data from an ERP system, analyze it, and present it back in actionable and easy-to-interpret formats. BI systems use the data in the ERP systems that would otherwise never see the light of day. BI ensures that your company data is treated like the valuable resource that it is.

Implementing BI solutions to an ERP system will present information on an intuitive platform. Providing actionable insight would boost your organization’s performance.

An in-depth understanding of your operational performance would assist you in obtaining the most effective BI solutions that will provide strategic level insights into your performance.

So try Pathways International today, and don’t just keep your data- lead with your data.

Visit us at: 3rd floor Block B, Saachi Plaza along Argwings Kodhek, Kilimani, Nairobi.

Phone: +254-771-616- 839

Email: info@pathways-international.com

 

 

 


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