ERP UNIT 1.PART IIghjgjhgjgggggggkhk.pptx

erp

1. BUSINESS PROCESS REENGINEERING (BPR)

2. BUSINESS PROCESS REENGINEERING (BPR) Business processes are: simply a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools. We all do them, and at one time or another play the role of customer or supplier So why business process improvement? Improving business processes is paramount for businesses to stay competitive in today's marketplace. Over the last 10 to 15 years companies have been forced to improve their business processes because we, as customers, are demanding better and better products and services.

3. BPR. Definition of Hammer and Champy defined business process reengineering as: The fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. The major emphasis of this approach is the fact that an organization can realize dramatic improvements in performance through radical redesign of its processes. This is in contrast to the notion of streamlining processes in order to achieve a measured level of performance.

4. The Business Process Reengineering (BPR) Vision Business Process Reengineering (BPR) is based on a vision of the future that is increasingly shared by enterprises around the world. It is evolving into the sum total of everything we've learned about management in the industrial age recast into an information age framework.

5. Business Process Reengineering is the key to transforming how people work. What appear to be minor changes in processes can have dramatic effects on cash flow, service delivery and customer satisfaction. Even the act of documenting business processes alone will typically improve organizational efficiency by 10%.

6. Advantages Of BPR It helps in integrating the various business processes of the organization. With good ERP package, the organization will be able to achieve dramatic improvements in areas such as cost, quality, speed, etc. Hence , many BPR initiatives are used in ERP implementation.

7. MANAGEMENT INFORMATION SYSTEMS (MIS) DEFINITION: MIS is a computer – based system that optimizes the collection, collation, transfer and presentation of information throughout an organization, through an integrated structure of databases and information flow .

8. Characteristics of MIS 1. MIS supports data processing functions of transaction handling and record keeping. 2. MIS uses an integrated database and supports a variety of functional areas. 3. MIS provides operational, tactical and strategic levels of organization with timely, structured information. 4. MIS is flexible and can adapt to the changing needs of the organization

9. Importance of MIS As an area of study it is commonly referred to as information technology management. The study of information systems is usually a commerce and business administration discipline, and frequently involves software engineering, but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization. The area of study should not be confused with Computer Science which is more theoretical and mathematical in nature or with Computer Engineering which is more engineering. In business, information systems support business processes and operations, support decision making, and support competitive strategies.

10. Comparison of MIS vs. DPS

11. DECISION SUPPORT SYSTEMS ( DSS) Decision support systems are interactive information systems that rely on an integrated set of user-friendly software and hardware tools, to produce and present information targeted to support management in the decision making process.

12. Managers spend a lot of time and effort in gathering and analyzing information before making decisions. Decision support systems were created to assist managers in this task. A DSS can help close this gap and allow managers to improve the quality of their decisions. To do this, the DSS hardware and software employ the latest technological innovations, planning and forecasting models, 4th generation languages and even artificial intelligence. In the course of their decision activities managers work with many pieces of knowledge. Some of this knowledge is descriptive, characterizing the state of past, present, future, or hypothetical worlds. Such knowledge is commonly called information or data. Other pieces of knowledge are procedural in nature, specifying how to accomplish various tasks.

13. In addition to "know what" (information) and "know how" (procedures), a manager may work with reasoning knowledge on the way toward reaching a decision. This third kind of knowledge indicates that certain conclusions are valid under particular circumstances. Two other kinds of knowledge are very much concerned with communication. One is linguistic knowledge which enables a manager to understand incoming messages. Conversely, a manager works with presentation knowledge when constructing outgoing messages. Managers are first and foremost knowledge workers who are involved in the making of decisions. Sometimes, a manager makes decisions individually. In other cases, decision-making may be distributed, involving the combined and coordinated efforts of many knowledge workers.

14. Both individual and distributed decision making are susceptible to support by systems that facilitate, expand, or enhance a manager's ability to work with one or more kinds of knowledge. Such knowledge-based systems are called decision support systems (DSSs). Decision support systems; emphasize a knowledge-management perspective. With the relentless advances in the technology and economics of computers, we are rapidly reaching the point where a manager's success depends on his or her understanding of DSS possibilities and skill in DSS application. Many DSSs are oriented toward individual decision support. There is growing interest in DSSs that directly support distributed decision making at the group, organization, and inter-organization levels. Decision support systems also differ with respect to the kinds of knowledge they help manage. The majority of conventional DSSs have been devised to help manage primarily descriptive and procedural knowledge. In contrast, there is a class of artificially intelligent DSSs concerned mainly with the representation and processing of reasoning knowledge.

15. Characteristics of DSS 1. A DSS is designed to address semi-structured and unstructured problems. 2. The DSS mainly supports decision-making at the top management level. 3. DSS is interactive, user-friendly can be used by the decision-maker with little or no assistance from a computer professional. 4. DSS makes general-purpose models, simulation capabilities and other analytical tools available to the decision-maker.

16. Comparison of DSS vs MIS

17. EXECUTIVE INFORMATION SYSTEMS (EIS) DEFINITION: An EIS takes the following into considerations: The overall vision and mission of the company and the company goals. Strategic planning and objectives. Organizational structure. Crisis management/ contingency planning. Strategic control and monitoring of overall operations.

18. Characteristics Of Executive information systems   1. EIS provide immediate and easy access to information reflecting the key success factors the company and of its units. 2. A User-seductive@ interfaces, presenting information through color graphics or video, allow an EIS user to grasp trends at a glance. 3. EIS provide access to a variety of databases, both internal and external, through a uniform interface. 4. Both current status and projections should be available from EIS. 5. An EIS should allow easy tailoring to the preferences of the particular users or group of users .

19. DATA WAREHOUSING Definitions The ability of a system to store data resulting from Data Mining to be used in future inquiries of that database. Data mining is the process of identifying valid, novel, potentially useful and ultimately comprehensible information from databases that is used to make crucial business decisions. If operational data is kept in the database of the ERP system, it can create a lot of problems. As time passes, the amount of data will increase and this will affect the performance of the ERP system. However once the operational use of the data is over, it should be removed from the operational databases.

20. IMPORTANCE OF DATA WAREHOUSING The primary concept of the data warehousing is that the data stored for the business analysis can be accessed most effectively by separating it from the data in operational systems. The most important reason for separating data for business analysis, from the operational data, has always been the potential performance degradation on the operational system that can result from the analysis processes. High performance and quick response time is almost universally critical for operational system.

21. DATA MINING Data mining is the process of identifying valid, novel, potentially useful and ultimately comprehensible information from databases that is used to make crucial business decisions.

22. The main reason for needing automated computer systems for intelligent data analysis is the enormous volume of existing and newly appearing data that require processing. The amount of data accumulated each day by various businesses, scientific and governmental organizations around the world is daunting. Research organizations, academic institutions and commercial organizations create and store huge amounts of data each day. It becomes impossible for human analysts to cope with such overwhelming amounts of data. Two other problems that surface when human analysts process data are: i. The inadequacy of the human brain when searching for complex multi-factorial dependencies in the data. ii. The lack of objectiveness in analyzing the data

23. ADVANTAGES A human expert is always a hostage of the previous experience of the investigating other system. Sometimes this helps, sometimes this hurts, but it is almost impossible to get rid of this fact. While data mining does not eliminate human participation in solving the task completely, it significantly simplifies the job and allows an analyst, who is not a professional in statistics and programming to manage the process of extracting knowledge from data.

24. Data mining consists of five major elements: Extract, transform, and load transaction data onto the data warehouse system. Store and manage the data in a multidimensional database system. Provide data access to business analysts and information technology professionals. Analyze the data by application software. Present the data in a useful format, such as a graph or table.

25. ON-LINE ANALYTICAL PROCESSING (OLAP)

26. DEFINITION OLAP can be defined in five words – Fast Analysis of Shared Multi-dimensional Information. Fast : means that the system is targeted to deliver most responses to users within about 5 seconds, with the simplest analysis not taking more than one second and very few taking more than 20 seconds. Analysis : means that the system can cope with any business logic and statistical analysis that is relevant for the application and the user, and keep it easy enough for the target user. Shared : means that the system implements all the security requirements for confidentiality and if multiple writes access is needed, concurrent update locking at an appropriate level. Multi-dimensional : means that the system must provide a multi-dimensional conceptual view of the data, including full support for hierarchies and multiple hierarchies. Information : is refined data that is accurate, timely and relevant to the user.

27. There are three types of OLAP Multidimensional or MOLAP MOLAP is the 'classic' form of OLAP and is sometimes referred to as just OLAP. MOLAP uses database structures that are generally optimal for attributes such as time period, location, product or account code. The way that each dimension will be aggregated is defined in advance by one or more hierarchies. Relational or ROLAP ROLAP works directly with relational databases. The base data and the dimension tables are stored as relational tables and new tables are created to hold the aggregated information. Depends on a specialized schema design.

28. Hybrid Or HOLAP There is no clear agreement across the industry as to what constitutes "Hybrid OLAP", except that a database will divide data between relational and specialized storage.

29. SUPPLY CHAIN MANAGEMENT(SCM) DEFINITION: A supply chain is a network of facilities and distribution options that performs the function of procurement of materials, transformation of these materials into intermediate and finished products and the distribution of these finished products to the customers.

30. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Traditionally, marketing, distribution, planning, manufacturing and the purchasing organizations along the supply chain operated independently. These organizations have their own objectives which are often conflicting. There is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such integration can be achieved.

31. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Some experts distinguish supply chain management and logistics management, while others consider the terms to be interchangeable. From the point of view of an enterprise, the scope of supply chain management is usually bounded on the supply side by your supplier's suppliers and on the customer side by your customer's customers. Supply chain management is also a category of software products. Opportunities enabled by Supply Chain Management The following strategic and competitive areas can be used to their full advantage if a supply chain management system is properly implemented.

32. Fulfillment . “Ensuring the right quantity of parts for production or products for sale arrive at the right time.” Logistics. “Keeping the cost of transporting materials as low as possible consistent with safe and reliable delivery.” Here the supply chain management system enables a company to have constant contact with its distribution team, which could consist of trucks, trains, or any other mode of transportation. Production: “Ensuring production lines function smoothly because high-quality parts are available when needed.” Production can run smoothly as a result of fulfillment and logistics being implemented correctly. If the correct quantity is not ordered and delivered at the requested time, production will be halted, but having an effective supply chain management system in place will ensure that production can always run smoothly without delays due to ordering and transportation.

33. Revenue & profit. “Ensuring no sales are lost because shelves are emptyManaging the supply chain improves a company’s flexibility to respond to unforeseen changes in demand and supply. Because of this, a company has the ability to produce goods at lower prices and distribute them to consumers quicker than companies without supply chain management thus increasing the overall profit. Costs. “Keeping the cost of purchased parts and products at acceptable levels.” Supply chain management reduces costs by” increasing inventory turnover on the shop floor and in the warehouse” controlling the quality of goods thus reducing internal and external failure costs and working with suppliers to produce the most cost efficient means of manufacturing a product. Cooperation. “Among supply chain partners ensures 'mutual success.'”. Collaborative planning, forecasting and replenishment (CPFR) is a “longer-term commitment, joint work on quality, and support by the buyer of the supplier’s managerial, technological, and capacity development.” higher quality goods provided at a lower cost.

34. CUSTOMER RELATIONSHIP MANAGEMENT – CRM

35. An integrated approach to identifying, acquiring and maintaining customers. Allows companies to coordinate their approach across channels, departments and also geographically.

36. CUSTOMER RELATIONSHIP MANAGEMENT – CRM

37. CHARACTERISTICS OF CRM Builds a database that describes the customers and the relationship they hold with the company. Database: a collection of information that is organized in a way that allows it to be easily accessed, managed and updated. Provides enough detail so that the company can offer the client the product/service that matches their need the best. May contain information about their past purchases, who is involved with the account and a summary of all conversations.

38. GOALS OF CRM Make sure the primary goal ( ie : customer service) is standard in the software. Customization is very expensive. Be able to integrate smoothly and flawlessly. Make sure the program doesn't offer more then you need. Compare with other companies of equivalently the same size who have purchased the same CRM software and examine their results.

39. BENEFITS OF CRM Help marketing departments identify and target their best customers, manage campaigns as well as discover qualified leads. Qualified Leads: prospects who seem most likely to buy because of some information known about them. Improve sales and streamline existing processes. Form individualized relationships with customers. Give employees information needed to improve customer service and also to better understand customer needs. Is a fast way to identify and handle potential problems. Tracks all points of contact between a customer and the company. CRM quickly manages the scheduling of follow-up sales calls to assess the satisfaction of customers and their repurchase probabilities (when and how much). Identifying prospects and helps them become customers. Closing sales more effectively and efficiently. Allowing customers to perform business transactions quickly and easily. Providing better service and support following a sale.

40. CUSTOMER SERVICE Helps make call centres more efficient. Aids in cross and up selling products. Cross Selling: Provide additional products/services. Up Selling: Upgrade existing products/services. Helps sales staff close deals faster. Simplifies marketing and sales processes. Allows companies to discover new customers.

41. COMPARISON OF CRM AND BI CRM is closely related to business intelligence because both methods involve using technology to gather, analyze and organize data in order to develop relevant information. CRM is just a more specific form of BI that concentrates strictly on customer’s behaviors and actions, for both past and future information.

42. ADVANTAGES OF CRM Technical Functionality: Scalability: CRM may be used on a large scale while also being able to be reliably contracted/expanded to whatever scale is necessary. So.. the data is flexible and won’t distort when adjusted. Multiple communication channels: the ability to interface with users via many different devices (phone, WAP, internet etc.) Basically, you can get what you want, when you want wherever you are. Know your customer! CRM can lead to greater customer service → greater profitability!! Remember that it is not enough to be nice to your customer – you must learn from them.