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Objectives
At the end of the session you will be able to :
List the functions of an enterprise and some corresponding business processes. Discuss the types of information systems (IS) used in an organization. Explain the interrelationships between the various information systems Elaborate on the contribution of IS to various business processes. Describe the integration of various enterprise functions and business processes. List some advantages of Enterprise Resource Planning Systems and discuss some challenges faced by them.
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Function of enterprise and corresponding business processes ( slides 4-7) Categories of Information Systems (slides 8-9) Four major types of IS (slides 10-22) Interrelationships among IS (slides 23-26) Integrating functions and business processes (slides 2732) Enterprise Resource Systems (slides 33 42) Benefits of ERP (slide 43) Challenges faced by ERP systems (slides 44-46)
Functions Of Enterprise
Engineering Design
Inventory
Enterprise
Production Planning
Controlling
Business Process
A business process is a sequence of activities followed by individuals in a business to achieve some business goal. Often these are manual activities executed by employees who play certain roles in the business in addition to others who are external to the business: customers, business partners, etc.
Business Process Assembling the product Checking for quality Producing bills of materials Identifying customers Making customers aware of the product Selling the product Paying creditors Creating financial statements Managing cash accounts Hiring employees Evaluating employees job employees performance Enrolling employees in benefits plans
Human resources
3.
Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision-Support Systems (DSS) Executive Support Systems (ESS)
These are the basic business systems that serve the operational level. A computerized system that performs and records the daily routine transactions necessary for the conduct of the business.
Inputs: High volume transaction level data Processing: Simple models Outputs: Summary reports Users: Middle managers Example: Annual budgeting
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Examples of Business Processes Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling
Enterprise Systems
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide organizationcoordination and integration of key business processes. Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.
What is ERP ?
ERP stands for: Enterprise Resource Planning systems This is what it does: attempts to integrate all data and does: processes of an organization into a unified system. A system. typical ERP system will use multiple components of computer software and hardware to achieve the integration. integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. modules.
ERPs are cross-functional and enterprise wide. All crossfunctional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and Information Technology, this would include accounting, human resources, marketing, and strategic management. management.
ERP or Enterprise Resource Planning systems are software systems for businesses management encompassing modules supporting functional areas such as sales and marketing, finance, production, distribution accounting, human resource management, maintenance, inventory management, project management, transportation and e-business etc. etc. business strategy and set of industry-domain-specific industry-domainapplications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative interoperational and financial processes (Source: Gartners Research Note SPA-12-0420) SPA-12-
Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform ERP is a commodity -- product in the form of software SAP, Oracle Applications, PeopleSoft, JD Edwards, Great plains etc. are worlds leading ERP packages
Architecture of ERP system facilitates transparent integration of modules providing flow of information between all function within enterprise in real time. Many different software are replaced by one integrated system. Reliable information access through common DBMS Eliminates data and operational redundancies (no duplication of work or data entries etc.)
Enterprise Systems
Automation of business transactions Flexibility in changing the system catering to newer business processes. Coordination across business functions Coordination across geographical distances resulting in better Managerial control Consistent information and interface thus easier to understand and work in Single system
Need for common platform Process improvement. Data visibility that could be used to improve operating decisions. Operation cost reductions. Increased customer responsiveness. Improved strategic decision making Personal Improvement
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