Can ERP Becomes An Alternative To MIS ? Submitted by: Swatisudha Samantaray Roll. No. R060106013 UPES
Can ERP Becomes An Alternative To MIS ?
Submitted by:
Swatisudha Samantaray
Roll. No. R060106013
UPES
What Makes The Business To Think:
The Challenges Of Globalization
Unprecedented Levels Of Competition.
Shifting Of Mass Production System To Mass Customization System
Deals With Multiple Countries, Multiple Currencies
Trade Barriers Are Falling
Consumers Are In Demand
Change Becomes Constant
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Attention Goes To:
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What Is Information System:
An Information System Is An Open, Purposive System That Produces Information By Using “Input-process-output” Cycle From The Available Data.
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Feedback Control
DATA
Information
Input OutputProcessing
Manpower Money Machines Technology Customer
Why Information System:
To Remain Competitive, Desired Information Is Required To The Right People At The Right Time.
Information Systems Used To Enable Information Flow Within And Between Processes Efficiently And Effectively.
Through Information System Competitive Advantage Can Be Gained Via Cost Reduction, Product Enhancement, And Customer Service Improvements.
Information Systems Are Useful Tools To Enable And Manage Business Transformation Or Change.
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Management Information System # 1:
According To Schwartz, MIS Is A System Of People, Equipment, Procedures,
Documents And Communication
That Collects, Validates, And Operates On Transformers, Stores, Retrieves And
Present Data For Use In Planning, Budgeting, Accounting, Controlling, And Other Management Process.
The MIS Emphasizes:
Organization-wide Information Decision Support Managerial Emphasis Computer Based Systems
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Management Information System # 2:
Provide A System For Collecting, Processing, Storing, Retrieving, And Transmitting Information To The Users.
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SourceData
Capturing
User
User
User
User
Source
Source
Source
Processing Dissemination
Retrieval
Storages
Management Information System # 3:
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Facilitates The Decision Making Processes By Furnishing Information This Helps Decision-maker To Select The Best Course Of Action.
Characteristics Of MIS:
Management Oriented:
Management Directed:
Integrated:
Common Data Flow:
Heavy Planning Element/ Long Term Planning:
Sub-system Concept:
Flexibility And Ease Of Use:
Need Based:
Exception Based:
Future Oriented:
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Limitations Of MIS:
MIS Cannot Replace Managerial Judgments In Decision-making.
The Quality Of Output Of An MIS Is Directly Proportional To The Quality Of Input And Processes.
In A Fast Changing And Complex Environment, MIS May Not Have Enough Flexibility To Update Itself Quickly.
MIS Takes Only Quantitative Factors Into Account.
MIS Is Less Useful In Making Non-programmed Decisions.
MIS Is Less Effective In Organizations Where Information Is Not Being Shared With Others.
MIS Is Less Effective Due To Frequent Changes In Top Management, Organizational Structure And Operational Management.
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Why Enterprise Resource Planning:
Information Systems Are Becoming More And More Complex
Due To The Stumbling Blocks: Time, Cost, Objective Data, Unstructured Process
Development Of A Vision Of Integrated Information System
Dissimilar Systems
Business Becomes Global
Incoherent Business Process
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Current Business Scenario:
Suppliers
(China)
Suppliers
(India)
Customer
(Europe)
Customer
(Australia)
Customer
(Korea)
Planning Headquarter (Japan)
Planning at Manufacturing Plants (China & Indonesia)
Manufacturing Product A (China)
Manufacturing Product B (Indonesia)
Finance at Headquarters (Japan)
Finance atManufacturing Plants (China and Indonesia)
Human Resources / Payroll atHeadquarters (Japan)
Human Resources / Payroll atManufacturing Plants (China andIndonesia)
Sales (North America)
Sales (China)
Distribution(Logistics)Shipping and TransportationForeign Trade
What Is ERP:
Serves As A Cross-functional Enterprise Backbone That Integrates & Automates Many Internal Business Processes And Information Systems Covering All Functional Areas.
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Characteristics Of ERP:
Many Distinct Business Modules Such As Financial, Manufacturing, Accounting, Distribution, Etc.
Use Centralized Common Database Management System (DBMS)
The Modules Are Integrated And Provide Seamless Data Flow Among The Modules
They Are Flexible And Offer Best Business Practices
They Require Time-consuming Tailoring And Configuration Setups For Integrating With The Company’s Business Functions
The Modules Work In Real Time With Online And Batch Processing Capabilities
They Are Internet-enabled
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Evolution Of ERP:
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2000s
1990s
1980s
1970s
1960s
Enhanced ERP
Enterprise Resource Planning
Manufacturing Resources Planning ( MRP II )
Manufacturing Requirements Planning ( MRP )
Web Extended ERP
Shifting Trends Of ERP:
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ERP Modules:
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The Number And Features Of The Modules Vary With The Package. Some Of The Most Common Modules Available In Almost All Packages Are:
Shop-floor Management Inventory Management Procurement Management Production Control Transportation Management Supply Chain Management Customer Relationship Management E-business
Finance/Accounting Mfg. Planning/Scheduling Plant Maintenance, Quality Management, Material Management Human Resources Distribution Management Customer Order Management Cost Management
Benefits Of ERP:
Gives A Company An Integrated Real-time View Of Its Core Business Processes
Helps Improve The Quality And Efficiency Of Customer Service Reductions In Transaction Processing Costs And Hardware, Software, And It Staffs
Leads To Improved Performance, Better Decision Making, Competitive Advantage
Replaces A Multiplicity Of Different Systems And Databases
Allows Replacement Of Disparate Systems E.G. Exxon Mobile Used ERP To Replace 300 Different Systems
Increases Organizational Real Time Information Flow
Process Reengineering -- Update Old Processes
Foundation For New Processes, Such As E-procurement
Lays Foundation For Electronic Commerce
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MIS Vs. ERP:
Both MIS And ERP Systems Focus On The Automation Of Business Processes, Data Transfer, And Information Sharing Across The Organization.
MIS Is An Information System Designed For Providing Information To Support Operational Control, Management Control, And Decision-making Functions In An Organization
ERP Systems Are Some Of The Most Advanced, State-of-the-art Management Information Systems In Today’s Business World.
An ERP System Integrates Information Systems And Business Processes To Enable Information Entered Once To Be Shared Throughout The Organization.
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MIS Vs. ERP:
MIS’s Role:
1. To Generate Reports-for Example2. To Answer What-if Questions Asked By Management3. To Support Decision Making
ERP’s Role:
1. Staff Reduction2. Better Inventory Management 3. Improve Customer Responsiveness 4. Efficient Procurement5. Enhanced Financial Management And Corporate Governance:6. Software Security: E.G. Seradex ERP 7. Encouraging Uniqueness 8. Changing The Working Pattern 9. Web-enable ERP
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Why ERP Is The Best ? # 1
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Why ERP Is The Best ? # 3
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In What ? How ?
Reliable information access Common database, consistent and accurate data, improved reports
Avoid data and operation redundancy
Avoids multiple data input to the central database
Delivery and cycle time reduction Minimizing retrieving and reporting delays
Cost reduction Time saving in decision making
Easy adaptation Changes in business processes easy to adapt and restructure
Improve scalability Structured and modular design
Improve maintenance Vendor supported long term contracts as a part of procurement
Global outreach Extended modules like CRM and SCM
E-commerce, e-business Collaborative culture
Why ERP Is The Best ? # 4
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BEFORE ERP WITH ERP
Business Processes Proliferation of fragmented processes with duplication of effort
Re-engineering around a business models that conforms with “ best practices”
Productivity Lack of openness to customers and suppliers
Direct interactions with customer and suppliers by enhanced ERP modules like SCM and ERP
Supply chain management Lack of integration Linkages with suppliers and customers
eBusiness Web based interfaces support isolated systems and their components
Web based interfaces are front end to integrated system
Information Lack of tactical information for effective monitoring and control of organizational resources
Allows cross functional access to the same data for planning and control.
Communication Lack of effective communications with customers and suppliers
Facilitate organizational communications with customers and suppliers
ERP :Integration With E-Procurement and E-Commerce:
Many companies with ERP use e-commerce E-commerce needs to interface with ERP
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ERP : Integration With CRM and SCM:
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Key Process Integration
via ERP
Key Process Integration
via ERP
Product Lifecycle
Management
Product Lifecycle
Management
SCMSCM
CRMCRM
Supplier Collaboration
Supplier Collaboration
Design PartnersDesign
PartnersConsumers
and Channels
Consumers and Channels
ERP : Integration With SCM:
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Inventory
Purchasing
Productionscheduling
MRP
1960 Production
Management+
MRPFinance,
laborMRP II
1970 Major
Manufacturing Resources
+
MRP IIAll internalresources
ERP
1980
Coordinated Manufacturing and Service Transactions
+
ERPInternal customers
and suppliersInternal
SCM1990 Enhanced
ERP/SCM+
InternalERP/SCM
External suppliersand customers
ExtendedSCM20
00 Web Extended ERP+
ERP : Integration With CRM:
Front-end Function Like Managing, Acquiring And Retaining Customers Are Effectively Managed By CRM. They Effectively Capture The Customer Requirements At The Front End
ERP, Integrated With All Functional Areas, Converts This Customer Requirement Into Feasible Finished Products In Time.
Back Office ERP
Front Office (CRM)
ERP And BPR:
Shift From Efficient To Effective, Passive To Active, Tactical To Strategic And Automation To Optimization, Is The Motto Of ERP.
Business Process Re-engineering [BPR] Brings Out The Deficiencies Of The Existing Setup, Solves Old Problems, Redesigns Selected Processes, etc
BPR And ERP Will Give Way To Implement New Systems And The Long Pending Improvements In The Existing Systems
Implementing An ERP System Usually Requires A Company To Perform Business Process Reengineering (BPR) Or Business Process Re-design (BPRD).
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Before Conclusion:
The ERP market is expected to grow 8 percent until 2008
The leading ERP system providers are SAP and Oracle/PeopleSoft.
SAP holds 40 percent of the $24 billion ERP market
Oracle and PeopleSoft systems hold 10 percent and 12 percent respectively
One Study Indicates that 33 % of companies said their ERP system significantly reduces personal requirement.
A study of ERP implementations reports that benefits typically start 8 months after implementation with median annual savings of $1.6 million
Conclusion:
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Management Information System
Resource
Enterprise Resource Planning
…Leads To Focusing On Creating Value And Improving Business Processes And Better Customer Satisfaction.
Questions? Discussion?