Unit
- ERP architecture layers: Modern ERP systems use a three-tier architecture comprising presentation tier (user interface), application tier (business logic), and database tier (data storage). This separation allows scalability, security, and maintainability.
- Core functional modules: Financial accounting, supply chain management, human capital management, manufacturing, sales and distribution, and procurement form the backbone. Each module integrates with others to provide a single source of truth.
- Integration mechanisms: ERP systems use middleware, APIs, and enterprise service buses to connect modules internally and with external applications such as CRM, e-commerce, and legacy systems.
- Data flow and centralization: Transactions created in one module automatically update related records across the system, eliminating data silos and manual reconciliation.
- Configuration vs. customization: Configuration uses built-in parameters to adapt the system without altering code, while customization involves modifying source code, which increases maintenance complexity.
- Multi-tenant vs. single-tenant: Cloud ERP typically uses multi-tenant architecture where multiple clients share infrastructure, while on-premise deployments use single-tenant instances for greater control.
- Role-based access and security: ERP systems enforce segregation of duties through role definitions, ensuring users see only data relevant to their job functions and preventing fraud.
- Reporting and analytics layer: Most ERP platforms include embedded business intelligence tools, dashboards, and standard reports that draw data from the transactional database in near real-time.
- ERP lifecycle management: The ERP lifecycle spans planning, selection, implementation, go-live, and ongoing support. Each phase involves specific deliverables such as requirement gathering, system testing, user training, and post-implementation optimization to maximize return on investment.
- Business process reengineering (BPR): Before configuring ERP modules, organizations often redesign business processes to align with industry best practices embedded in the software. BPR eliminates inefficiencies and ensures the ERP system supports streamlined workflows rather than automating outdated procedures.
- Change management and user adoption: Successful ERP deployments require structured change management including stakeholder communication, training programs, and executive sponsorship. Resistance to new processes can cause project delays and underutilization, so continuous engagement and clear benefits communication are critical.
- Vendor selection criteria: Choosing an ERP vendor involves evaluating functional fit, total cost of ownership, scalability, industry-specific capabilities, and vendor support reputation. Demonstration scenarios and reference checks help validate that the solution meets long-term business needs and compliance requirements.
- Implementation methodologies: Common ERP implementation approaches include waterfall (e.g., SAP ASAP), agile (e.g., iterative sprints), and hybrid models. Agile methods allow faster feedback loops and incremental value delivery, while waterfall provides a structured, phase-gated plan suitable for heavily regulated environments.
Strategic Framework
Framework: TOGAF Architecture Development Method (ADM)
Purpose: Provides a structured approach for designing enterprise architecture, including ERP systems.
- Preliminary Phase: Define scope and principles for the ERP architecture project.
- Architecture Vision: Establish high-level vision of ERP capabilities and business outcomes.
- Business Architecture: Map current and future business processes that the ERP must support.
- Information Systems Architecture: Design data and application components including module selection.
- Technology Architecture: Determine infrastructure, security, and integration requirements.
- Opportunities and Solutions: Identify gaps and develop implementation roadmap.
Quick Revision
- ERP systems use a three-tier architecture to separate presentation, application, and data layers.
- Core modules such as finance and supply chain share a unified data model.
- Configuration through parameters is preferred over custom code changes.
- TOGAF ADM provides a systematic framework for ERP architecture planning.