information systems & erps

8/2/2019 Information Systems & ERPs

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Information systemAn information system (IS) is any combination ofinformation technology and people's

activities using that technology to support operations, management, and decision-

making.

In a very broad sense, the term information system is frequently used to refer to the

interaction between people, algorithmicprocesses, data and technology

.

As illustrated by the Venn Diagram on the right, the history of information

systems coincides with the history of computer science that began long before the

modern discipline of computer science emerged in the twentieth century. [18] Regarding

the circulation of information and ideas, numerous legacy information systems still existtoday that are continuously updated to promote ethnographic approaches, to

ensuredata integrity, and to improve the social effectiveness & efficiency of the whole

process.[19] In general, information systems are focused upon processing information

within organizations, especially within business enterprises, and sharing the benefits

with modern society
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In this sense, the term is used to refer not only to the information and communication

technology (ICT) an organization uses, but also to the way in which people interact with

this technology in support of business processes.[3]

Some make a clear distinction between information systems, and computer systemsICT, and business processes. Information systems are distinct from information

technology in that an information system is typically seen as having an ICT component.

Information systems are also different from business processes. Information systems

help to control the performance of business processes.[

Information systems are the primary focus of study for the information systems

discipline and fororganisational informatics It consists of computers, instructions, stored

facts, people and procedures.

ISs can be categorized in three parts:

1. Management Information System (MIS).

2. Decision Support System (DSS).

3. Executive Information System (EIS)

4. Transaction processing system ( TPS )

Types of information systems

The 'classic' view of Information systems found in the textbooks

of the 1980s was of apyramid of systems that reflected the hierarchy of the organization, usually Transaction

processing systems at the bottom of the pyramid, followed by Management information

systems, Decision support systems and ending with Executive information systems at

the top. Although the pyramid model remains useful, since it was first formulated a

number of new technologies have been developed and new categories of information

systems have emerged, some of which no longer fit easily into the original pyramid

model.

Some examples of such systems are:

Data warehouses

Enterprise resource planning

Enterprise systems

Expert systems
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Geographic information system

Global information system

Office Automation

A four level pyramid model of different types of Information Systems based on the different levels of

hierarchy in an organization

Management information systemA management information system (MIS) is a system that provides information needed

to manage organizations effectively. [1] Management information systems involve three

primary resources: technology, information, and people. It's important to recognize that

while all three resources are key components when studying management information

systemsthe most important resource is people.An 'MIS' is a planned system of the collection, processing, storage and dissemination of

data in the form of information needed to carry out the management functions. In a way,

it is a documented report of the activities that were planned and executed. According

to Philip Kotler"A marketing information system consists of people, equipment, and

procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and

accurate information to marketing decision makers
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Earlier, business computers were mostly used for relatively simple operations such as

tracking sales or payroll data, often without much detail. Over time, these applications

became more complex and began to store increasing amount of information while also

interlinking with previously separate information systems

Types of information management systems

There are many types of information management systems in the market that provide a

wide range of benefits for companies. Strategic information management system,

customer relation management systems and enterprise resource planning systems are

some of them. The following are some of the benefits that can be attained for different

types of information management systems.[4]

Advantages of information management systems (1) The company is able to

highlight their strength and weaknesses due to the presence of revenue reports,employee performance records etc. The identification of these aspects can help the

company to improve their business processes and operations. (2) The availability of the

customer data and feedback can help the company to align their business processes

according to the needs of the customers. The effective management of customer data

can help the company to perform direct marketing and promotion activities. (3)

Information is considered to be an important asset for any company in the modern

competitive world. The consumer buying trends and behaviors can be predicted by the

analysis of sales and revenue reports from each operating region of the company.

An MIS provides the following advantages.

1. It Facilitates planning : MIS improves the quality of plants by providing relevantinformation for sound decision making . Due to increase in the size and complexity oforganizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in tosummarized form and there by avoids the confusion which may arise when managersare flooded with detailed facts.

3. MIS Encourages Decentralization : Decentralization of authority is possibly whenthere is a system for monitoring operations at lower levels. MIS is successfully used formeasuring performance and making necessary change in the organizational plans andprocedures.

4. It brings Co ordination : MIS facilities integration of specialized activities by keepingeach department aware of the problem and requirements of other departments. Itconnects all decision centers in the organization .
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5. It makes control easier : MIS serves as a link between managerial planning andcontrol. It improves the ability of management to evaluate and improve performance .The used computers has increased the data processing and storage capabilities andreduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates theinformation .

Decision support system

decision-making activities that supports business or organizational

DSSs serve the management, operations, and planning levels of an organization

and help to make decisions, which may be rapidly changing and not easily

specified in advance.

Typical information that a decision support application might gather and present are:

inventories of information assets (including legacy and relational data sources, cubes, data

warehouses, and data marts),

comparative sales figures between one period and the next,

projected revenue figures based on product sales assumptions.

One example is the clinical decision support system formedical diagnosis. Other

examples include a bank loan officer verifying the credit of a loan applicant or an

engineering firm that has bids on several projects and wants to know if they can

be competitive with their costs.

DSS is extensively used in business and management. Executive dashboard and other business

performance software allow faster decision making, identification of negative trends, and better

allocation of business resources.

Benefits

1.

Improves personal efficiency

2.

Speed up the process of decision making
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3.

Increases organizational control

4.

Encourages exploration and discovery on the part of the decision maker

5.

Speeds up problem solving in an organization

6.

Facilitates interpersonal communication

7.

Promotes learning or training

8.

Generates new evidence in support of a decision

9.

Creates a competitive advantage over competition

10.

Reveals new approaches to thinking about the problem space

11.

Helps automate managerial processes

Executive information systemAn Executive Information System (EIS) is a type ofmanagement

information system intended to facilitate and support the information

and decision-making needs of senior executives by providing easy access

to both internal and external informationrelevant to meeting the strategic

goals of the organization. It is commonly considered as a specialized form

of a Decision Support System (DSS)

The emphasis of EIS is on graphical displays and easy-to-use user interfaces.

They offer strong reporting and drill-down capabilities. In general, EIS are

enterprise-wide DSS that help top-level executives analyze, compare, and

highlight trends in importantvariables so that they can monitor performance and

identify opportunities and problems. EIS and data warehousing technologies are

converging in the marketplace.
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Applications

EIS enables executives to find those data according to user-defined criteria and promote information-

based insight and understanding. Unlike a traditional management information system presentation, EIS

can distinguish between vital and seldom-used data, and track different key critical activities for

executives, both which are helpful in evaluating if the company is meeting its corporate objectives. After

realizing its advantages, people have applied EIS in many areas, especially, in manufacturing, marketing,

and finance areas.

Manufacturing

Basically, manufacturingis the transformation of raw materials into finished goods for sale, or

intermediate processes involving the production or finishing of semi-manufactures.

Marketing

In an organization, marketing executives role is to create the future. decisions.

Financial

A financial analysis is one of the most important steps to companies today.

Advantages and disadvantages

[edit]Advantages of EIS

Easy for upper-level executives to use, extensive computer experience is not required in

operations

Provides timely delivery of company summary information

Information that is provided is better understood

Filters data for management

Improves to tracking information

Offers efficiency to decision makers

[edit]Disadvantages of EIS

System dependent

Limited functionality, by design

Information overload for some managers

Benefits hard to quantify

High implementation costs

System may become slow, large, and hard to manage
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Need good internal processes for data management

May lead to less reliable and less secure data

Transaction processing systemA transaction processing system is a type ofinformation system. TPSs collect, store,

modify, and retrieve the transactions of an organization.

A transaction is an event that generates or modifies data thatis eventually stored in an information system.

To be considered a transaction processing system the computer must pass

the ACID test. The essence of a transaction program is that it manages data that

must be left in a consistent state. E.g. if an electronic payment is made, the

amount must be both withdrawn from one account and added to the other; it

cannot complete only one of those steps.

More :-

http://www.management-hub.com/information-management-advantages.html

ERP

[ENTERPRISE RESOURCE PLANNING]RESOURCE

A resource is any physical or virtual entity of limited availability that needs to be

consumed to obtain a benefit from it. In most cases, commercial or even non-

commerial factors require resource allocation through resource management. There are

two types of resources; renewable and non-renewable.

ENTERPRISE

Willingness oreagernesstoengageinlaborwhich requires boldness,prompt

ness,energy,andlikequalities;as,amanofgreatenterprise.

an organizationcreatedforbusiness ventures; "agrowingenterprisemustha

veaboldleader"
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Entrepreneuris a person who has possession of a

new enterprise, venture oridea and is accountable for the inherent risks and the

outcome.

Origin of "ERP"

In 1990 Gartner Group first employed the acronym ERP[4] as an extension ofmaterial

requirements planning (MRP), latermanufacturing resource planning[5] [6] and computer-

integrated manufacturing. Without supplanting these terms, ERP came to represent a

larger whole, reflecting the evolution of application integration beyond manufacturing.[7] Not all ERP packages were developed from a manufacturing core. Vendors variously

began with accounting, maintenance and human resources. By the mid1990s ERP

systems addressed all core functions of an enterprise. Beyond corporations,

governments and nonprofit organizations also began to employ ERP systems

EVOLUTION
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Material requirements planningMaterial requirements planning (MRP) is a production planning and inventory control

system used to managemanufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well.

An MRP system is intended to simultaneously meet three objectives:

Ensure materials are available forproduction and products are available

fordelivery to customers.
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Maintain the lowest possible level of inventory.

Plan manufacturing activities, delivery schedules and purchasing activities.

Prior to MRP, and before computers dominated industry, reorder-point/reorder-quantity

(ROP/ROQ) type methods like EOQ had been used in manufacturing and inventorymanagement. In the 1960s, Joseph Orlickystudied the TOYOTA Manufacturing

Program and developed Material Requirements Planning (MRP), and Oliver

Wight and George Plossl then developed MRP into manufacturing resource

planning (MRP II).[ The basic function of MRP system includes inventory control, bill of

material processing and elementary scheduling. MRP helps organizations to maintain

low inventory levels. It is used to plan manufacturing, purchasing and delivering

activities.

"Manufacturing organizations, whatever their products, face the same daily practicalproblem - that customers want products to be available in a shorter time than it takes to

make them. This means that some level of planning is required."

Companies need to control the types and quantities of materials they purchase, plan

which products are to be produced and in what quantities and ensure that they are able

to meet current and future customer demand, all at the lowest possible cost. Making a

bad decision in any of these areas will make the company lose money. A few examples

are given below:

If a company purchases insufficient quantities of an item used in manufacturing

(or the wrong item) it may be unable to meet contract obligations to supply products

on time.

If a company purchases excessive quantities of an item, money is wasted - the

excess quantity ties up cash while it remains as stock and may never even be used

at all.

Beginning production of an order at the wrong time can cause customer

deadlines to be missed.

MRP is a tool to deal with these problems. It provides answers for several questions:

Whatitems are required?

How manyare required?

When are they required?
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Manufacturing resource planning MRP IIManufacturing resource planning (MRP II) is defined by APICS as a method for the

effective planning of all resources of a manufacturing company. Ideally, it addresses

operational planning in units, financial planning in dollars, and has a simulation

capability to answer "what-if" questions and extension of closed-loop MRP.

This is not exclusively a software function, but a marriage of people skills, dedication todata base accuracy, and computer resources. It is a total company management

concept for using human resources more productively.
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Enterprise resource planningEnterprise resource planning (ERP) integrates internal and external management

information across an entire organization,

embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP

systems automate this activity with an integrated softwareapplication. Its purpose is

to facilitate the flow of information between all business functions

inside the boundaries of the organization and manage the

connections to outside stakeholders.[1]

ERP systems can run on a variety of hardware and network configurations, typically

employing a database to store data.

ERP systems typically include the following characteristics:

An integrated system that operates in real time (or next to real time), without

relying on periodic updates.[citation needed]

A common database, which supports all applications.

A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by theInformation Technology (IT) department

Functional areas

Finance/Accounting
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General ledger, payables, cash management,fixed

assets, receivables, budgeting, consolidation

Human resources

payroll,training, benefits,401K, recruiting,diversity management

Manufacturing

Engineering, bill of materials, work orders, scheduling, capacity, workflow

management,quality control, cost management, manufacturing process, manufacturing

projects, manufacturing flow, activity based costing, Product lifecycle management

Supply chain management

Order to cash, inventory, order entry, purchasing, product configurator, supply chain

planning, supplier scheduling, inspection of goods, claim processing, commissions

Project management

Costing,billing, time and expense, performance units, activity management

Customer relationship management

Sales and marketing, commissions, service, customer contact, call centersupport

Data services

Various "selfservice" interfaces for customers, suppliers and/or employees

Access control

Management of user privileges for various processes

Components

Transactional database

Management portal/dashboard

Business intelligence system

Customizable reporting

External access via technology such as web services

Search

Document management

Messaging/chat/wiki

Workflow management

Advantages

The fundamental advantage of ERP is that integrating the myriad processes by which

businesses operate saves time and expense. Decisions can be made more quickly and
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with fewer errors. Data becomes visible across the organization. Tasks that benefit from

this integration include:[citation needed]

Sales forecasting, which allows inventory optimization

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt

Matching purchase orders(what was ordered), inventory receipts (what arrived),

andcosting(what the vendor invoiced)

ERP systems centralize business data, bringing the following benefits:

They eliminate the need to synchronize changes between multiple systems

consolidation of finance, marketing and sales, human resource, and manufacturing

applications

They enable standardproduct naming/coding.

They provide a comprehensive enterprise view (no "islands of information"). They make

realtime information available to management anywhere, anytime to make proper

decisions.

They protect sensitive data by consolidating multiple security systems into a single

structure.[23]

[edit]Disadvantages

Customization is problematic.

Reengineering business processes to fit the ERP system may damage competitiveness

and/or divert focus from other critical activities

ERP can cost more than less integrated and/or less comprehensive solutions.

High switching costs increase vendor negotiating power vis a vis support, maintenance

and upgrade expenses.

Overcoming resistance to sharing sensitive information between departments can divert

management attention.

Integration of truly independent businesses can create unnecessary dependencies.

Extensive training requirements take resources from daily operations.

Enterprise software
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Enterprise software, also known as enterprise application software (EAS),

is software used in organizations, such as in a business or government,[1] contrary to

software chosen by individuals (for example, retail software). Enterprise software is

an integral part of a (Computer Based) Information System.

Services provided by enterprise software are typically business-oriented tools such

as online shopping and online payment processing, interactive product catalogue,

automated billing systems, security, content management, IT service

management,customer relationship management, resource planning,business

intelligence, HR management, manufacturing, application integration, and

forms automation.

Enterprise application software

Enterprise application software is application software that performs business functions

such as order processing, procurement, production scheduling, customer information

management, and accounting. It is typically hosted on servers and provides

simultaneous services to a large number of users, typically over a computer network.

This is in contrast to a single-user application that is executed on a user's personal

computer and serves only one user at a time.

ERP vendors

The largest vendors worldwide in 2005 according to Gartner Dataquest:

Market share 2005 according to Gartner

Dataquest[1]

# Vendor Revenue(million

$)

Marketshare

(%)

1 SAP 1949 30.33

2 Oracle Applications 1374 21.38
http://en.wikipedia.org/wiki/Computer_softwarehttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Enterprise_software#cite_note-0http://en.wikipedia.org/wiki/Retail_softwarehttp://en.wikipedia.org/wiki/Information_Systemhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/ITSMhttp://en.wikipedia.org/wiki/ITSMhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Enterprise_Application_Integrationhttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/List_of_ERP_software_packages#cite_note-0http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Oracle_E-Business_Suitehttp://en.wikipedia.org/wiki/List_of_ERP_software_packageshttp://en.wikipedia.org/wiki/List_of_ERP_software_packageshttp://en.wikipedia.org/wiki/List_of_ERP_software_packageshttp://en.wikipedia.org/wiki/List_of_ERP_software_packageshttp://en.wikipedia.org/wiki/Computer_softwarehttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Enterprise_software#cite_note-0http://en.wikipedia.org/wiki/Retail_softwarehttp://en.wikipedia.org/wiki/Information_Systemhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/ITSMhttp://en.wikipedia.org/wiki/ITSMhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Enterprise_Application_Integrationhttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/List_of_ERP_software_packages#cite_note-0http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Oracle_E-Business_Suite


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3 The Sage Group 1121 17.44

4 Microsoft Dynamics 916 14.25

5SSA Global

Technologies[2]464 7.22
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SAP AG is a German global software corporation that provides enterprise

software applications and support to businesses of all sizes globally. Headquartered

in Walldorf, Germany, with regional offices around the world, SAP is the largest

enterprise software company in the world (as of 2009).[2] It is also the largest

software company in Europe and the fourth largest globally.[3] The company's best

known products are its SAP Enterprise Resource Planning (SAP ERP) and SAP

Business Objects software.

SAP was founded in June 1972 as Systemanalyse undProgrammentwicklung("System Analysis and Program Development")[4] by five

formerIBM engineers in Mannheim, Baden-Wrttemberg (Dietmar Hopp, Klaus

Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther

The acronym was later changed to stand forSysteme, Anwendungen und Produkte

in der Datenverarbeitung("Systems, Applications and Products in Data

Processing").

Products SAP Business Suite

SAP ERP

SAP CRM

SAP SCM

SAP SRM

SAP PLM
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SAP NetWeaver

SAP Sybase ASE

SAP Business One

SAP Business ByDesign

SAP Business All-in-One

SAP Business Objects portfolio

BASIC MODULES FOR AN ERP

SCM- Supply Chain management

CRM- Customer relationship management

PLAM Product lifecycle management

SRM- Supplier Relationship management

ABAP

ABAP/4

Paradigm Object-oriented,structured,imperative

Appeared in 1983

Designed by SAP AG

Typing discipline Static,strong,safe,nominative

Major implementations SAP R/2,SAP R/3

Influenced by Objective-C,COBOL,SQL

OS Cross-platform

ABAP (Advanced Business Application Programming pronounced as 'ah-bop', is

a high-level programming languagecreated by the Germansoftware company SAP. It is
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currently positioned, alongside the more recently introduced Java, as the language for

programming the SAP Application Server, part of its NetWeaverplatform for building

business applications. The syntax of ABAP is somewhat similar to COBOL.

REPORT TEST.

WRITE'Hello World'.

WRITE FLIGHTINFO-CITYFROM.

WRITE FLIGHTINFO-CITYTO.

WRITE FLIGHTINFO-AIRPTO.

REPLACE'A'WITH'B'INTO: LASTNAME, FIRSTNAME, CITYNAME.
http://en.wikipedia.org/wiki/Java_(programming_language)http://en.wikipedia.org/wiki/SAP_Web_Application_Serverhttp://en.wikipedia.org/wiki/NetWeaverhttp://en.wikipedia.org/wiki/COBOLhttp://en.wikipedia.org/wiki/Java_(programming_language)http://en.wikipedia.org/wiki/SAP_Web_Application_Serverhttp://en.wikipedia.org/wiki/NetWeaverhttp://en.wikipedia.org/wiki/COBOL

information systems & erps

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