5 enterprise systems

7/28/2019 5 Enterprise Systems

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ENTERPRISE SYSTEMS


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Enterprise Systems

Systems that span the enterprise

Systems that span functional areas,focus on executing business

processes across the business firm,and include all levels ofmanagement.


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CENTRALISEDDATABASE

SALES &MARKETING

FINANCE &ACCOUNTING

MANUFACTURING

& PRODUCTION

HUMANRESOURCES

Cash in handAccounts receivableCustomer creditRevenue

Hours workedLabour costJob skillsTraining

OrdersSales forecastReturn requestPrice changes/Pricing

Materials stocksPurchasesProduction schedule

Shipment dates


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Enterprise Systems

It helps businesses become moreflexible and productive bycoordinating their business processes

more closely and integrating groupsof processes, focusing on efficientmanagement of resources and

customer service.


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Enterprise Systems

Four major enterprise applicationsare:

Enterprise systems

Supply chain management systems

Customer relationship managementsystems and

Knowledge management systems


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Enterprise Systems-ERP

Enterprise systems, also known as ERPsystems integrate the key businessprocess of an entire firm into a single

software system that enablesinformation to flow seamlesslythroughout the organization.

These systems focus primarily oninternal processes but are nowintegrated with customers and

vendors.


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Supply Chain Management

(SCM) Systems

Helps in managing relationship withsuppliers

The ultimate objective is to get theright amount, right quality, rightplace at least amount of time andwith lowest cost.


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Company Distributor Retailer

Customer

Supplier

Supplier

Tier I

Supplier

Tier II

Supplier

Orders, return requests, repair andservice requests, financing & payments

Bullwhip Effect: The information aboutdemand gets distorted with slight rise indemand at every level, so each has enough

just in case inventory stockpile.


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Manufac-turer

Distributor Retailer CustomerSupplier

Push-Based Model

Manufac-turer

Distributor Retailer CustomerSupplier

Pull-Based Model

Supply toforecast

ProductnBased on

forecast

InventoryBased on

forecast

StockBased on

forecast

Purchasewhat is on

shelves

Supply toorder

Produceto order

Autoreplenish

warehouse

Autoreplenish

stock

Customerorders


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Customer Relationship

Management (CRM) Systems

Helps the firms in maintaining therelationships with their customers

Helps firms to identify, attract andretain the most profitable customers,provide better service to existingcustomers


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CUSTOMER

SALESTelephone salesWeb salesRetail store salesField sales

MARKETINGCampaign dataProduct & PackagingData analysis

SERVICESCall center data

Web self-service dataPhysical Services dataInstallation reports


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Knowledge Management

Systems (KMS)

Firms success not only depends onphysical assets but also on someintangible assets like knowledge and

experience.It is believed that half of the stock marketvalue are dependent on the intangibleassets.

Today, Knowledge is an central productiveand strategic asset.

Potential sources of competitive advantage


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Storing and Sharing knowledge

Examples:

Collecting suggestionsExperiences & best practices

Online learning modules

Online Circulars etc.


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KMS

KM is a set of processes to create,store, transfer, and apply knowledgein the organisation.

Three major types of knowledgemanagement systems:

Enterprise-wide KMS

Knowledge work systems

Intelligent techniques


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Enterprise-wise KMS

Enterprise-wise KMS are firmwideefforts to collect, store, distribute,and apply digital content andknowledge.


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Knowledge work systems

It support the creation of newknowledge and its integration intothe organization.

Ex. CAD, virtual reality systems(interactive simulations of real world),financial modeling and analysis etc.


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Intelligent TechniquesAre used to capture tacit knowledge

Artificial intelligence (attempt to emulate humanbehavior),

data mining,

expert system (limited domain of human expertise

by capturing experts knowledge), neural networks (attempts to find pattern and

relationships in massive amounts parallel tohuman brains),

fuzzy logic(rule based tech that use approximateor subjective values).

Used for knowledge discovery.

Ex.: Discovering new trends of customer,

automate various tasks


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ERP Defined

An enterprise resource planning system is afully integrated business managementsystem that integrates the core business

and management processes to provide anorganization a structured environment inwhich decisions concerning demand,supply, operations, personnel, finance,

logistics etc. are fully supported byaccurate and reliable real-time information.


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Evolution

MRP (Material Resource Planning):developed in 1970s. For bringing efficiencyand material planning in manufacturingsector, became quite popular in mid-

1970s. Focus was on material planningleaving other factors like personnelplanning, distribution planning etc.

MRP II: This new system incorporatedfinancial accounting, HRM, distributionmanagement etc.


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EvolutionERP: It is evolved from MRP II. MRP has alsonumber of drawbacks, the most important beinglack of effective integration of the functionalareas to share the resources effectively. It was also backend focused, that is generating

and retrieving data from internal companyinformation, processing these and therebycreating solutions for decision makers.

It also evolved progressively and need tohandle front-end and outward systems also.

ERP II: It is defined by E&Y as ERP II= SCM +CRM SCM: Supply chain management

CRM: Customer Relationship Management


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Benefits of ERP

Better use of organisationalresources

Lower operating costs

Proactive Decision MakingDecentralised Decision Making

Enhanced customer satisfaction

Flexibility in business operationsAdjusting as per the environmental

requirements


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ERP IMPLEMENTATION

The process involves the followingbroad activities:Defining need for ERP

Engaging consultant for ERPimplementation

Reengineering business process

Identifying and evaluating ERP packages

Installing hardware and network

Implementing ERP package

C G S


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ERP PACKAGESERP packages are integrated software

packages covering all businessfunctions that support the ERPoperations.

SAP: Developed by SAP AG, Germany.Most versatile ERP package that looks atthe entire business as a single entity. Ithas highest market share globally as well

as in India.SAP: System Analysis and Program

Development, now Systems, Applicationsand Products in Data Processing


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SAP R/3 has following modules:AM Assets Management

CO Controlling

FA Financial Accounting

HR Human resources

MM Materials management

PM Plant Management

PP Production Planning

QM Quality Management

SD Sales and Distribution

WF Business work flow


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SAP's products focus on EnterpriseResource Planning (ERP). The

company's main product is SAP ERP.The current version is SAP ERP 6.0and is part of the SAP Business Suite.

Its previous name was R/3.

The "R" of SAP R/3 stood for realtime.

The number 3 related to the 3-tierarchitecture: database, applicationserver and client (SAPgui)


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Other ERP PackagesOracle Applications: Developed by Oracle Corporationspecially after acquiring Peoplesoft Corp.(www.oracle.com)

Ramco Marshal: Developed by Ramco Systems

MFG/ PRO: Developed by QAD (www.qad.com)

BaaN ERP: Developed by BaaN (www.baan.com)

eBPCS: Developed by Sytems Software Associates

(www.ssax.com)

ActivEra: developed by J D Edwards(www.jdedwards.com)Scala

Mastek Etc
http://www.oracle.com/http://www.oracle.com/http://www.baan.com/http://www.jdedwards.com/http://www.jdedwards.com/http://www.jdedwards.com/http://www.baan.com/http://www.oracle.com/

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