TYPES OF INFORMATION - PPT 1 & 2

Strategic Information - needed for long-range planning and directing the course the business
should take.
information on trends, effect on P&L due to reduction in margins, area demographics

Tactical Information - needed to take short-range decisions to run the business efficiently.
obtained from the day-to-day collection of routine data

Operational Information - needed for day-to-day operations of a business organization.

the volume of information is much more than tactical information

Management INFORMATION SYSTEMS

Person-machine system and a highly integrated grouping of information-processing functions

are designed to provide management with a comprehensive picture of specific operations.

operates in real-time, handles inquiries quickly, as they are received MIS should also be
available early enough to affect a decision.

TRADITIONAL ORGANIZATION

● depts. are compartmentalized and have their own goals and objectives, which are from
the point of view and are in line with the organization’s objectives.
 ● departments function in isolation and have their own systems of data collection and
analysis.

Departments in traditional organizations

● Finance
● Purchase
● Sales
● Production
● HR

The problem with Departmental Management Information systems is they operate at a

departmental level and only provide information that is predefined.

Eg: Production planning data is required for the purchasing department, purchase details are
required by the finance dept.

MODERN ORGANIZATION

Information regarding all aspects of the organization is stored centrally and is available to all
departments.

ERP systems help make inter-departmental communication easier by

integrating the information systems, enabling a smooth and seamless flow
of information across departmental barriers, and automating business
processes and functions.

Popular ERP software:

● SAP
● Oracle
● Sage group

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ERP MODULES - PPT 3

 1) ACCOUNTING AND FINANCE MODULE aka FICCO (Finance and Cost Controlling
Module)

● tracks accounting and financial information such as revenues, costs, assets, liabilities,
and other financial information of the company.

● generates routine and advanced accounting and financial reports, product costing,
budgeting and analysis general ledger, (GL), trial balance, and quarterly financial
reports.

● Reduce COGS.

● Maximize profitability.

● generate accurate real-time reports.

● Collect, assign and analyze costs by project, order, cost center, or business process.

● Management accounting information is available through role-based portals.

● Integrate accounts payable and receivables, fixed assets, and other sub-ledgers.

2) MANUFACTURING MODULE

● Integrates technology with business processes.

● Manages the entire supply chain within a facility and between facilities too.

● Make-to stock, make-to-order or both can be configured in this module.

● Combines manufacturing and planning methods with the same operations and unlimited
flexibility.

Manufacturing Module subsystems

● Material and capacity planning

● Shop floor control

● Quality Management

● JIT/ repetitive manufacturing

● Cost management
● Engineering change control

● Configuration management

● Serialization/lot control

● Tooling

3) MATERIALS MANAGEMENT MODULE

● facilitates the process of maintaining the appropriate level of stock in a warehouse.

● involves identifying inventory requirements, setting targets, providing replenishment
techniques and options, monitoring item usage, reconciling the inventory balances, and
reporting inventory status.
● Reduce cost by lowering inventory levels
● optimize the flow of materials.

4) PRODUCTION PLANNING MODULE

● With evolving manufacturing requirements, robust production planning software has

been developed.
● Utilized by consulting firms too.
● Optimizes utilization of manufacturing capacity, parts, components, resources, historical
data & sales forecasting.

5) PURCHASING MODULE

● streamlines procurement of required raw materials.

● automates the processes of identifying potential suppliers, negotiating prices, awarding
purchase orders to the suppliers, and the billing processes.
● integrated with supply chain management software, inventory control, and production
modules

6) CRM MODULE

● collaboration between the organization and its customers by providing relevant

customers to track sales orders.
● allows firms to segment customers and track their purchase activities, and design
customized promotions appealing to each customer segment.
● allows the user to communicate effectively with existing customers through sales
automation and partner relationship management.

7) MARKETING MODULE

Assists in:
● Marketing resource management
● Campaign and list management.
● E-mail marketing
● Trade promotion management
● Web-based marketing surveys
● Self-service portal.
● Drive efficiency and gain true ROI from the marketing campaigns.
● Target the right people with the right message.
● Use analytics to measure and correct customer value, churn scores and satisfaction
scores.
● Predict customer behavior and needs to create more relevant targeted communication.

8) HRM MODULE

● organization plan, develop, manage and control human resources.

● Automate employee administration, time management, payroll, and legal reporting
processes.
● Record, track, monitor, and evaluate employees working times and activities.
● Understand, evaluate and measure the workforce’s contribution to the bottom line.
● Identify and grow future leaders.
● Attract and hire the right people – and make new hires productive quickly.
● Pinpoint where your talent lies and train and cultivate your workforce.
● Improve productivity

9) SUPPLY CHAIN MANAGEMENT MODULE

● Planning, execution, and control of activities involved in a supply chain.

● strengthening supply chain networks to improve delivery performance.
● cover various logistics functions, including transportation, warehousing, and inventory
management.
● creates value by allowing the user to optimize its internal and external supply chains.

10) SALES, DISTRIBUTION, AND SERVICE MODULES

● implements order placement, order scheduling, shipping, and invoicing.

● integrated with the organization's e-commerce websites.
 ● accelerate logistics, manufacturing, service, and workforce processes.
● facilitating customer engagement across all sales channels.
● Simplify and accelerate the entire order-to-cash cycle.

11) QUALITY MANAGEMENT MODULE

● Quality planning – management of basic data for quality planning and inspection
planning, Materials specifications.
● Quality inspection - trigger inspections, print shop papers for sampling and inspection,
record results and defects, make usage decisions, and trigger follow-up actions.
● Quality Control - dynamic sample determination on the basis of quality level history,
application of statistical process control techniques using quality control charts, quality
scores for inspection lots, initiating corrective actions

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ERP PACKAGE SELECTION

● Know requirements

● Make sure vendor competencies match your requirements.

● Insist on demos.

● Check vendor’s training and support services.

● Treat your ERP project as a configuration management project.

● Enlist the aid of consultants.

● Do not skimp when allocating resources

● Identify both industry-specific and general ERP packages.

● Include a Software as a Solution in your assessment.

● Plan for the future.

● Buy only the modules you need.

● Take advantage of your peers feedback on ERP.

People Involved in ERP Implementation

Consultant types:

Management - focus on the function of management as it relates to the organization of

resources and business flows.
Application - focus on the process of communicating, teaching, demonstrating and configuring
software for the business process flow.
Technical - deal with technical issues such as database conversions, source code
modifications, communication protocols, operating systems, software installation, hardware
systems.

Selection Criteria:

● Experience
● Success rate
● Size and Scope
● Continuity
● Training

Selection of Vendor

● Value of the software and conditions of payment

● List of deliverables (software, documents, etc.)
● Mode of delivery and installation help
● Copyright and ownership issues
● Software License
● Third-party software compatibility, integration support.
● Operating system
● Hardware liability
● Conditions and discounts for acquiring complementary modules in the future or for
increasing the number of end-users.
● Cost of implementation and end-user training.
● Annual mainatineence fee, warranty, guarantee.
● New upgrades and updates conditions
● Details of technical support- on site or remote.

PROJECT MANAGER:

● Selected based on availability, technical expertise, product knowledge, political power,

software knowledge, authority, people skills, maturity, and organisational respect.