chp 2erpppt

8/6/2019 chp 2erpppt

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Chapter 2Chapter 2

Enterprise An OverviewEnterprise An Overview


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TopicTopic

IntroductionIntroduction

Integrated Management InformationIntegrated Management Information

Business ModelingBusiness Modeling

Integrated Data ModelIntegrated Data Model


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IntroductionIntroduction

What is Enterprise?What is Enterprise?

Enterprise is a group of people with aEnterprise is a group of people with a

common goal, which has certain resourcescommon goal, which has certain resources

at its disposal to achieved that goal.at its disposal to achieved that goal. Enterprise acts as an entity.Enterprise acts as an entity.


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Traditional systemTraditional system

Each of the department wereEach of the department were

compartmentalized and had their owncompartmentalized and had their owngoals and objectives, (from their pointgoals and objectives, (from their point

of view are in the line withof view are in the line with

organizations objective)organizations objective)


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Organization where there is no or littleOrganization where there is no or littlecommunication between departmentscommunication between departments

Works in isolationWorks in isolation

Has their own system of data collectionHas their own system of data collection

and analysis.and analysis. So information is available only to TOPSo information is available only to TOP

Management (only summary) and not toManagement (only summary) and not toother department.other department.


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Ultimately, various department endUltimately, various department endup in different direction instead ofup in different direction instead oftaking organization towards commontaking organization towards commonGoal.Goal.

other department does not knowother department does not know

what other department is doing.what other department is doing.EgEg sales & market people wantsales & market people want

more product variety to satisfymore product variety to satisfy

needs of customers, but productionneeds of customers, but productiondepartment wants to limit thedepartment wants to limit theproduct variety to cut down costs.product variety to cut down costs.


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ForForEnterpriseEnterprise

Entire organization is ONE SYSTEM,Entire organization is ONE SYSTEM,department is SUBSYSTEMdepartment is SUBSYSTEM

Information is store centrally & available to allInformation is store centrally & available to all

departmentdepartment Each subsystem knows what other is doing,Each subsystem knows what other is doing,

and why they are doing and what should beand why they are doing and what should be

done to achieve common goal.done to achieve common goal.

In ERP, information is integrated with smoothIn ERP, information is integrated with smooth

and seamless flow of information acrossand seamless flow of information across

departmentdepartment


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Integrated ManagementIntegrated Management

InformationInformation

In information system there is logical flow ofIn information system there is logical flow ofinformation, that is:information, that is:

data supplied to systemdata supplied to system manipulatedmanipulated

transformed into informationtransformed into informationInput Processed OutputInput Processed Output

Management Information System is an integratedManagement Information System is an integrated

information systeminformation systemOne of the popular subsystem/ technology used inOne of the popular subsystem/ technology used in

ERPERP

It provided information system for decisionIt provided information system for decision--makingmakingin or anizationin or anization


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MIS elementsMIS elements

Transaction process (collecting, storing,Transaction process (collecting, storing,processing)processing)

Reporting System (gives reports. Charts,Reporting System (gives reports. Charts,

graphs)graphs)

Decision support systemDecision support system

This satisfies the need of managers at operationalThis satisfies the need of managers at operational

level.level.

But they work at departmental level.But they work at departmental level.

Each department has its own db andEach department has its own db and infinf systemsystem


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DISADVANTAGES OF INTEGRATEDDISADVANTAGES OF INTEGRATED

MANAGEMENT INFORMATION :MANAGEMENT INFORMATION :

People in one department do not have anyPeople in one department do not have anyinformation what is happening in other departmentinformation what is happening in other department

Top level mangers will circulate the report to otherTop level mangers will circulate the report to other

department but that department will fail to capturedepartment but that department will fail to capturereal picture.real picture.

These system gives only the information which isThese system gives only the information which ispredetermined and processed on given datapredetermined and processed on given data

EgEg. A manger fails to have extra information. A manger fails to have extra informationwhich report does not contain n MIS cannot helpwhich report does not contain n MIS cannot help


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These system lacks integratedThese system lacks integratedapproach.approach.

Accounting departmentAccounting department--AccountAccountManagmntManagmnt System, financeSystem, financedepartmentdepartment--FinanceFinance ManagmntManagmntSystem etc.System etc.

Work in isolationWork in isolation


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As system works in isolation , analysis ofAs system works in isolation , analysis ofdata from various department is difficultdata from various department is difficult

Causes stress in decision making basicallyCauses stress in decision making basicallytedious jobtedious job

If no effective and efficient mechanism forIf no effective and efficient mechanism fordecisiondecision

will affect working of organizationwill affect working of organization

Lost valuable timeLost valuable time


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I NFORMATIONI NFORMATION -- key resource ofkey resource oforganizationorganization

AccuracyAccuracy

RelevancyRelevancy

TimelinessTimeliness

Organization should have mechanismOrganization should have mechanismto automate information gathering andto automate information gathering andanalysis process will beat theanalysis process will beat thecompetition.competition.


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Business ModelingBusiness Modeling

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

It should be mirror the business process.It should be mirror the business process.

It is built on the basis of organizationsIt is built on the basis of organizationsgoal, objective and strategic plan.goal, objective and strategic plan.

Business model is built based on businessBusiness model is built based on businessprocessing which is handled by individualprocessing which is handled by individual

to achieve common goalto achieve common goal


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Representation of business as 1 large systemRepresentation of business as 1 large system(interconnection and interdependency of(interconnection and interdependency of

various subsystem)various subsystem) Based on business model ERP is designed.Based on business model ERP is designed.

In BM, model a business as integrated systemIn BM, model a business as integrated system

Information is important resourceInformation is important resource

Business Model is basically represented asBusiness Model is basically represented asgraphical form using flow chart or flowgraphical form using flow chart or flowdiagramdiagram


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IntegratedData ModelIntegratedData Model Critical step in ERP implementationCritical step in ERP implementation-- creationcreation

of Integrated Data Modelof Integrated Data Model

Organization can use this integrated data forOrganization can use this integrated data foranalysis n decision makinganalysis n decision making

No departmental information system and noNo departmental information system and nodepartmental databasedepartmental database

Has to be in integrated database.Has to be in integrated database.

Approach will reduce redundancy n provideApproach will reduce redundancy n provideupdate information to entire organization.update information to entire organization.


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For integrated database to be effectiveFor integrated database to be effective

Clearly Depict organizationClearly Depict organization

Reflect day to day transactionReflect day to day transaction

update continuouslyupdate continuously

Should give snapShould give snap--shot of organization any timeshot of organization any time

Eg. Order is entered, sale is done, goods is dispatched, db shldEg. Order is entered, sale is done, goods is dispatched, db shld

reflect those changes. Inventory shld be reduced and account shld bereflect those changes. Inventory shld be reduced and account shld be

increased. (reflect instantaneously and automatically)increased. (reflect instantaneously and automatically)

Integrated model is derived from business modelIntegrated model is derived from business model

Major ConstituentsMajor Constituents

Information integrationInformation integration

Process/procedure automationProcess/procedure automation


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Question BankQuestion Bank

1)What is an enterprise?1)What is an enterprise?

2) Why MIS fail in fully automation and2) Why MIS fail in fully automation and

integration of a system?integration of a system? 3) What are the limitations of MIS?3) What are the limitations of MIS?

4) why business model is said to be the basis4) why business model is said to be the basis

for the data model.for the data model. 5) What is business modeling?5) What is business modeling?


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6) Discuss business model is the mirror image of6) Discuss business model is the mirror image of

business process.business process.

7) What is business application program interface7) What is business application program interface

8) What are tha advantages and disadvantages of8) What are tha advantages and disadvantages of

implementing regional or loca brands.implementing regional or loca brands. 9) What do u mean by Integrated Management9) What do u mean by Integrated Management

Information.Information.

10) write a note on MIS . How it differs from data10) write a note on MIS . How it differs from data

processing system.processing system.

11) BPR leads to implementation ofERP . Explain.11) BPR leads to implementation ofERP . Explain.


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12) Explain the relationship of integrated data12) Explain the relationship of integrated data

model with real world.model with real world.

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chp 2erpppt