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-to-
computer 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
 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.
3. Whether the product or service includes the features
that are most important to the customer
4. Whether the company can respond to the customer’s
demands in timely manner
5. 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, E-
mail, 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.