ERP I

Enterprise Overview and Introduction to ERP

IIPM Enterprise Model of Information Need

Enterprise
2

Group of people with a common goals Resources are used to achieve those goals Land, Labor, Capital, Entrepreneur, Machines, etc are the resources

Traditional Enterprise
3

Divide organization as per functional areas

Production
Accounts

& Finance Marketing R & D Planning Sales & Distribution HR

General Scenario
4

TOP - Strategic Planning Decision Making

MIDDLE - Tactical Planning & Decision Making

BOTTOM - Operational Planning, Decision making & Controls

Work Blue collar workers

General Scenario
5

Top-down Strategy Actions at bottom Bottom-up Reporting What are the constraints?

Basic Issues
6

Integration of Information Business Model Consistency Integrated Data of each department Timely information availability Managing quality standards in products & services Optimum use of resources to maximize profit

Integrated MIS
7

Core elements: People, Procedures and Data

People

follow procedures to manipulate and use the data People generate more data by doing transactions People use data and information to take decisions on time

Integrated MIS
8

MIS also called information-reporting-systems, where original type of management support systems, and they still are a major category of Information Systems available. Helps in day-to-day decision making needs at each level of management Reports, graphs, displays, and query tools are given in information systems

Integrated MIS
9

Each department has their own information systems to manage their work Decisions taken based on data and information are more accurate than hypothetical decisions or decisions without information Top management cannot use isolated data of different departments, so that each information system in organization are integrated to showcase complete picture

Integrated MIS
10

Most of the MIS are, a single system having function wise sub-systems Each has basic characteristics like accuracy, relevancy and timeliness Organizations have TPS, using which data is populated in MIS TPS works at the base of this application

Business Modeling
11

First activity in any ERP, MIS project. Even it is a base for running any business
Ex.

Business Model creation

It is a large system showing the interconnections and interdependencies of the various subsystems and business processes Based on goals, objectives and strategy of organization it is developed Based on business model, information system is designed

Business Modeling
12

It helps in setting up information flow It helps in performing business processes efficiently and effectively It is generally presented via graphical presentation, flow-chart, diagram

Business Modeling
13

Create one Business Model

Pick

any business Note all business identities-parties involved Note all departments Note communication and information flow

Integrated Data Model

14

Most critical part in creating organization wide application, MIS or ERP This is used to reduce redundancy of information, errors, duplication of efforts One application, showcase updated information of whole organization at one glance Automatic reports generation based on transactions entered Data shows snap-shot of given point of time

Integrated Data Model

15

It helps in decision making, operations and planning Reduces time taken for work Increase accuracy But requires new way of working BPR, organization wide MIS or ERP

Thanks
16

Vatsal Shah
Consultant & Mentor, Pragmatic Consultancy