Chapter 10 Future Directions In Erp A Lexis Leon

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2. Enterprise- An Overview

Sonali Chauhan

UDIT 2009-10

University Department Of

Information Technology Sonali C. 2

Topic

Introduction

Integrated Management Information

Business Modeling

Integrated Data Model



Introduction

What is Enterprise?

Enterprise is a group of people with a common

goal, Which has certain resources at its disposal

to achieved that goal.

Enterprise acts

as an entity.

Traditional system

PEOPLE GOAL AND

OBJECTIVE

RESOURCES

The Enterprise

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Traditional Approach

Each of this

department are

compartmentalized

and have their own

goals and

objectives, (from their

point of view are in the

line with organization’s

objective

Organization where there is no or little

communication betw departments

Cont…



Work in isolation

Has their own system of data collection and analysis.

So information is available only TOP Management (only summary) and not to other department.

Ultimately, various department end up in different direction instead taking orgniz towards common Goal.

Coz other department does not know what other department is doing.

Eg sales n market people want more product variety to satisfy needs of customers, but production department wants to limit the product variety to cut down costs.

Cont…



For Enterprise

Entire organization is

ONE SYSTEM,

department is

SUBSYSTEM

Information is store

centrally n available to

all department

Cont…

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Each subsystem knows what other is

doing, and why they r doing and what

should be done to achieve common goal.

In ERP, information is integrated with

smooth and seamless flow of information

across department

Cont…



Integrated Management Information

In information system there is logical flow of

information, that is

data supplied to system – manipulated –

transformed into information

Input Processed Output



Management Information System is an integrated information system

One of the popular subsystem/ technology used in ERP

It provided information system for decision-making in organization

MIS elements Transaction process (collecting, storing, processing)

Reporting System (gives reports. Charts, graphs)

Decision support system

Cont…

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This satisfies the need of managers at

operational level.

But they work at departmental level.

Each department has its own db and inf

system

This will produce its own report.

Cont…



DISADVANTAGES OF INTEGRATED

MANAGEMENT INFORMATION:

People in one department do not have any

information what is happening in other department

Top level mangers will circulate the report to other

department but that department will fail to capture

real picture.

These system gives only the information which is

predetermined and processed on given data

Eg. A manger fails to have extra information which report

does not contain n MIS cannot help



These system lacks integrated approach.

Accounting department-Account Managmnt

System, finance department-Finance Managmnt

System etc.

Work in isolation

If person wants report from 2 deprtmnt he has to

go thru both system n correlate them and

combine the data


MANAGEMENT INFORMATION: (cont)

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As system works in isolation , analysis of data from various department is difficult

Causes stress in decision making… basically tedious job

If no effective and efficient mechanism for decision – will affect working of organization

Lost valuable time


MANAGEMENT INFORMATION: (cont)



INFORMATION - key resource of

organization

Accuracy

Relevancy

Timeliness

Organization should have mechanism to

automate information gathering and

analysis process will beat the competition.

Cont…



Business Modeling

Creation of business model is must in ERP systems- First activities in ERP.

It should be mirror the business process.

It is built on the basis of organization’s goal, objective and strategic plan.

Business model is built based on business processing which is handled by individual to achieve common goal

Representation of business as 1 large system (interconnection and interdependency of various subsystem)

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Based on business model ERP is designed.

In BM, model a business as integrated system

Information is important resource

Business Model is basically represented as

graphical form using flow chart or flow diagram

Business Modeling (cont…)



Integrated Data Model

Critical step in ERP implementation- creation of Integrated Data Model

Organization can use ths integrated data for analysis n decision making

No departmental information system and no departmental database

Has to be in integrated database.

Approach will reduce redundancy n provide update information to entire organization.



For integrated database to be effective Clearly Depict organization

Reflect day to day transaction

update continuously

Should give snap-shot of organization any time

Eg. Order is entered, sale is done, goods is dispatched, db shld reflect those changes. Inventory shld be reduced and account shld be increased. (reflect instantaneously and automatically)

Integrated Data Model (cont…)

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Integrated model is

derived from business

model

Major Constituents

Information integration

Process/procedure

automation

Integrated Data Model (cont…)

Chapter 10 Future Directions In Erp A Lexis Leon

Technology

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