Q: What is the relationship between the data warehouse (DW) and the enterprise resource planning (ERP) system? Are they competing or complementary systems? Now that more ERP vendors are supporting performance management are they competing with BI vendors?

Since the introduction of the term "data warehousing" in 1990, companies have explored the ways they can capture, store and manipulate data for analysis and decision support. At the same time, many companies have been instituting enterprise resource planning (ERP) software to coordinate the common functions of an enterprise. ERP software usually has a central database as its hub, allowing applications to share and reuse data more efficiently than previously permitted by separate applications. The use of ERP has led to an explosion in source data capture, and the existence of a central ERP database has created the opportunity to develop enterprise data warehouses for manipulating that data for analysis. So, ERP systems and data warehouse (DW) systems can be considered complementary environments. ERP vendors have started to include BI capabilities into their ERP systems in an attempt to capitalize on the need to analyze the data in an ERP in addition to or in conjunction with the data found in a company's non-ERP systems.

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