ERP - I

Enterprise – Model of Information – Need IIPM

Enterprise – Overview and Introduction to ERP

Enterprise

Group of people with a common goals Resources are used to achieve those goals Land, Labor, Capital, Entrepreneur, Machines,

etc are the resources

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Traditional Enterprise

Divide organization as per functional areas Production Accounts & Finance Marketing R & D Planning Sales & Distribution HR

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General Scenario 4

TOP - Strategic Planning Decision Making

MIDDLE - Tactical Planning & Decision Making

BOTTOM - Operational Planning, Decision making & Controls

Work – Blue collar workers

General Scenario

Top-down Strategy Actions at bottom Bottom-up Reporting

What are the constraints?

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Basic Issues

Integration of Information Business Model Consistency Integrated Data of each department Timely information availability Managing quality standards in products &

services Optimum use of resources to maximize profit

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Integrated MIS

Core elements: People, Procedures and Data People follow procedures to manipulate and use

the data People generate more data by doing transactions People use data and information to take decisions

on time

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Integrated MIS

MIS also called information-reporting-systems, where original type of management support systems, and they still are a major category of Information Systems available.

Helps in day-to-day decision making needs at each level of management

Reports, graphs, displays, and query tools are given in information systems

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Integrated MIS

Each department has their own information systems to manage their work

Decisions taken based on data and information are more accurate than hypothetical decisions or decisions without information

Top management cannot use isolated data of different departments, so that each information system in organization are integrated to showcase complete picture

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Integrated MIS

Most of the MIS are, a single system having function wise sub-systems

Each has basic characteristics like accuracy, relevancy and timeliness

Organizations have TPS, using which data is populated in MIS

TPS works at the base of this application

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Business Modeling

First activity in any ERP, MIS project. Even it is a base for running any business Ex. Business Model creation

It is a large system showing the interconnections and interdependencies of the various subsystems and business processes

Based on goals, objectives and strategy of organization it is developed

Based on business model, information system is designed

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Business Modeling

It helps in setting up information flow It helps in performing business processes

efficiently and effectively It is generally presented via graphical

presentation, flow-chart, diagram

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Business Modeling

Create one Business Model Pick any business Note all business identities-parties involved Note all departments Note communication and information flow

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Integrated Data Model

Most critical part in creating organization wide application, MIS or ERP

This is used to reduce redundancy of information, errors, duplication of efforts

One application, showcase updated information of whole organization at one glance

Automatic reports generation based on transactions entered

Data shows snap-shot of given point of time

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Integrated Data Model

It helps in decision making, operations and planning

Reduces time taken for work Increase accuracy

But requires new way of working – BPR,

organization wide MIS or ERP

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Thanks

Vatsal Shah Consultant - Pragmatic Consultancy Lecturer – IIMP, UW, Future-Retail, DIMC, KS

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