ENTERPRISE MANAGEMENT SYSTEMS Enterprise Management System What is Enterprise? Large business community including all the players and partners in the business General term, used for a corporate entity (any thing from Coffee house to Organization like TATA, Bajaj etc.) It is a group of people with common goal, where has certain resources at its disposal to acquire that goal. What an Enterprise needs ? Management of Data (through EDI – Electronic Data Interchange) for information Communication Management of related systems and sub systems Event monitoring , updating, Control There are tools and Techniques available to answer all above needs, i.e. business needs an integrated solution, which is nothing but an EMS. ERP plays the important role of running system on front. Whatever decision are made, mostly are through the system of ERP. ERP is supported by various other supports. This is the place where major decision making and their execution takes place. Components of an EMS Components of an EMS Explained EDI (Electronic Data Interchange) consists of direct computer-tocomputer transmission among multiple firms of data in a machine readable, structured format. AMS (Attendance Monitoring System) is required for personal planning of the employees in the organization. It also helps in availability and scheduling. DMS (Document Management System). This system helps in keeping important document for viewing at later times. For the purpose of transaction handling this system some time have a facility of document modification, by giving text-editing facility. SMS (Security Management System). This system handles the security, entry access requirement of business operations. CMS (Communication Management Systems). The ERP uses CMS as a tool for all its communication needs of recording an event. This system is used for tracking the important resource for action. CAD/CAM/CAE (Computer Aided Design/ Computer Aided Manufacturing/ Computer Aided Engineering). This system handles the design, manufacturing and engineering functions in the organization. This provides drawing and design engineering information to ERP in the execution of manufacturing and purchase functions. ERP System ERP System Explained ERP software is a family of software modules that support the business activities involved in these vital back-office processes. For example, ERP software for a manufacturing company will typically track the status of sales, inventory, shipping, and invoicing, as well as forecasting raw material and human resource requirements. Enterprise Applications/ Packages/ Suites/ Systems connects all of the information, which flows through a company to a single integrated set of systems This is implemented in modules, which can be integrated. ERP may work with a wide variety of databases, hardware, and operating systems. Leading Vendors of ERP are SAP, Oracle. Originally. ERP packages were targeted at the manufacturing industry. Their goal is to integrate information across the company and eliminate complex links between computer systems. Key advantage of ERP is that it provides an integrated solution for all the requirements of the business. ERP Modules A typical ERP solution has following modules: Marketing, Distribution and sales Manufacturing process Accounting and finance Personal management Planning and control Purchase and inventory The modules are designed for following purposes: Data capture from transactions Data transaction validation Analysis Updating and reporting of accounting. ERP Benefits ERP offers lots of benefits to the implementing organization. It helps for a manager to make decision at the right time. This is possible when entire organization is sharing information and interprets in same perspectives. The benefits of ERP can be classified in two categories: Tangible benefits (Those which can be measured in one form or other) Intangible benefits (Difficult to measure in absolute terms) Better Customer Satisfaction 1. 2. 3. Customer satisfaction means meeting or exceeding customer’s requirements for a product or service. Assessment of the degree of satisfaction is usually made on at least three measures. Whether the product or service includes the features that are most important to the customer Whether the company can respond to the customer’s demands in timely manner Whether the product or service is free of defects and perform as expected. Web Enabled ERP Technical Support Improved decision-making capabilities due to many use friendly tools available. Better HR utilization due to access to the information across the database. Communication is faster due to use of technologies such as EDI, Email, office automation and paperless office. Improved information accuracy Improved vendors performance Reduced quality costs by better management of resources Increase flexibility : Because competition is growing, companies must learn to respond more rapidly to customer’s wishes as well as changes in the market. They will need to design new product or redesign old products quickly and efficiently. Improved information accuracy The Risks of ERP Tied to a single vendor Flexibility limited by options offered by the vendor May inappropriately force generic processes May inappropriately force org. structure changes Complexity - particularly regarding mapping and standardizing processes across the organization.