Unit III-

ENTERPRISE
MANAGEMENT
SYSTEMS
Content
Enterprise Management Systems
EMS
ERP System
ERP Basic ,Features, Benefits of the
ERP,ERP Selection,
ERP Implementation, EMS and MIS
Business Process Outsourcing
What is BPO
Voice BPO
Call center
Non-voice BPO
Scope of BPO
Challenges in BPO management.
Information Technology Architecture
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.
Let us consider a simple example of a company
receiving a customers order. Once order is received, it
requires processing. Following steps will be carried out
to fulfill that order :

Acceptance and customer intimation

Ordering material
Booking the order
Scheduling the order on shop floor for production
Updating the business status

Informing MR for monitoring the marketing activities

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
Components of an EMS

Design
Of
Engineering
E
Co lect
m ro n CAD /
m nce
e r ic CAM a
ce e nd r i ng
E DI t
At aptu
C

M S
ERP A
SMS
DMS
r ity D
Ma ocu
cu CM na me
Se ge nt
S me
nt

Commun
ication
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.
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.
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.
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.
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.
SMS (Security Management System). This
system handles the security, entry access
requirement of business operations.
ERP System
ERP System
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.
The architecture is client/server and
uses OO methodology for design and
development of whole system.
Key advantage of ERP is that it provides
an integrated solution for all the
requirements of the business.
It takes care of organizational
hierarchy of authorities
Basically ERP solutions are based on
Unix and Windows NT platform.
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.
All ERP packages give a facility to provide
following types of standard report
Employees attendance monitoring
Income tax
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
Reduction of lead-time :
The elapsed time between placing an
order and receiving is known as the
lead-time.
In order to reduce lead-times, the
organization should have an efficient
inventory management system.
This inventory system is integrated with
the purchase, production planning and
production department.
The ERP systems help in automating
this task and thus make inventory
Doubled business
Increase of inventory turn to over 30%
Cycle time cut to 80% :
Cycle time is the time between receipt of the
order and delivery of the product.
Make –to – order
Make –to - stock
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.
 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 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.
Flexibility is a key issue
Improved information accuracy
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
ERP Features
Materials Related Features
Procurement and purchasing.
Issue and receipt of goods.
Stock management and valuation
Inventory control and analysis.
Data integration.
Enquiry processing.
Sales Related Features
Order processing.
Dispatching and invoicing
Order analysis and force carting.
Sales analysis, budgets and controls.
Product analysis.
Sales forecasting and budgeting.
Production Related Features
Marker data management.
Bill of materials (BOM).
Work order scheduling, control and
generation.
Production planning.
Collection of unit data for valuation and
costing.
Business System Features
Forecasting for products, services and
markets.
Business target allocation and fixing.
Planning of business.
Implementation and formulation of strategies.
Management of information
Quality Control
Data gathering system for quality against
standard.
Analysis of quality by material and process.
Building quality assurance data for technical
solution.
Monitoring quality.
Phases of ERP
Implementation
Pre-evaluation screening
Package Evaluation
Project Planning
Gap Analysis
Re-Engineering
Configuration
Implementation Team Training
Testing
Going Live
End-user Training
Post-implementation
Pre-Evaluation
Screening
Once the company has decided to go for ERP
systems, the search for the perfect package
starts.
But there are hundreds of ERP vendors of all sizes
and shapes all claiming to have the solution that
is ideal for you.
Analyzing all the packages before reaching a
decision is not a viable solution.
It is also a very time consuming process.
So it is better to limit the number of packages that
are evaluated to less than five.
Hence the company should do a pre evaluation
screening to limit the number of packages that
are to be evaluated by the committee pre
evaluation process eliminates those packages not
suitable for company's business processes.
Package Evaluation
the package you select will decide the success
or failure of the project.
Generally there is no perfect package that will
cover your each and every requirement the
objective is to find a package that is flexible
enough to meet the company's needs.
Functional fit with the company's business
processes.
Degree of integration between the various
components of the ERP systems.
Flexibility and Scalability
Complexity
User friendliness.
Quick implementation
Availability of regular upgrades
Availability of reference sites.
Amount of customization required.
Project Planning
Phase
This phase will decide when to begin the
project, how to do it and when the project is
supposed to be completed. This phase will
plan :
What to do ?
How to monitor the progress ?
What control measure should be installed ?
What correction actions to take ?
An ERP in charge and a committee should be
appointed for all these.
Gap Analysis
This is the process through which companies
create a complete model of where they are
now and in which direction they want to head
in the future
There can be many methods to do this.
For example :
1. Identify a third party product that might fill
the gap.
2. Designing a custom program.
3. Altering the ERP source code.
Reengineering
Human factors are taken into account in
this phase.
Business Process Reengineering (BPR)
emphasizes the human element of necessary
changes within organization. This is more time
consuming.
Configuration
First a prototype - a simulation of the actual
business processes of the company will be
used.
ERP consultants configure and test the
prototype
configuration tools
Implementation Team
Training
company trains its employees to implement
and later run the system.
The ERP vendors and the heard consultants
will leave after implementation is over. But for
the company to be self sufficient, it should
have good in-house team that can handle the
various situations.
Thus it is very vital that company selects
those employees who have right attitude
people who are willing to change, learn new
things and are not afraid of technology and
have good functional knowledge.
Testing
This is the phase where you try to break
the system.
System overloads, multiple users logging on
at the same time with the same query users
entering invalid data, hackers trying to access
restricted areas and so on.
The test cases must be designed specifically
to find the weak links in the system and these
bugs should be fixed before going live.
Going Live

The old system is removed and the new

system is used for doing business.
Data conversion is done, databases are up
and running.
Prototype is fully configured and tested and
ready to go operational. So the system is live.
End User Training

Here the actual users of the system will be

given training on how to use the system.
Users are identified, there current skills are
noted and accordingly are grouped.
Then each group is trained on the new
system.
It is human nature to resist change. The
company management should address the
concerns and take necessary actions to avoid
failure.
Post implementation
(Maintenance Mode)
This phase is very critical. To reap the full advantage of
ERP systems it should get enterprise wide acceptance.
The system should be upgraded as and when new
versions are introduced.
The costs and benefits should be analysed first for this,
as updating also needs user training and other factors.
Projects for implementing the ERP systems get a lot of
resources and attention. However an organization can
only get the maximum value of these inputs if it
successfully adopts and effectively uses the systems.
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.