Page 35 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 2: ERP and Related Technology

2.7 erp and Bpr notes

Innovation and major improvements in the performance of business processes are difficult to
achieve without leveraging the potential of ERP. Most of the business processes were developed
before modern computers and communication technologies existed. ERP and BPR go hand in
hand. Therefore, it is recommended that ERP should be used to innovate the business processes
and not just automate. ERP can be used not only to automate transactional and laborious business
processes but also to redesign the work management systems in an organization. ERP improves
coordination and information access across organizational units, thereby allowing for more
effective management of task interdependence.

2.8 management information system (mis)

A management information system (“MIS”) is mainly concerned with internal sources of
information. MIS usually take data from the transaction processing systems and summarize it
into a series of management reports. MIS reports tend to be used by middle management and
operational supervisors. Transaction systems are operations-oriented, where as Management
Information Systems (MIS) are data oriented. It assists managers in decision-making and problem
solving.
A key element of MIS is the database, a non-redundant collection of interrelated data items.
In any organization, decisions must be made on many issues that persist regularly (weekly,
monthly, quarterly, etc.) and require a certain set of information to make the decision. Because the
decision process is well understood, the information that will be needed to formulate decisions
can be identified. In turn, the information system can be developed so that reports are prepared
regularly to support these recurring decisions.
Information systems specialists frequently describe the decisions supported by these systems
as structured decision. The structured aspect refers to the fact that managers know what factors
to consider in making the decision and which variables most significantly influence whether
the decisions will be good or bad. Systems analysts develop well-structured reports containing
the information that is needed for the decisions or that tells the state of the important variables.
The primary users of MIS are middle and top management, operational managers and support
staff. Once entered into the system, the information is no longer owned by the initiating user but
becomes available to all authorized users.
A management information systems, or management reporting system, will feature reports based
on the transaction level activities. For instance, regular reports on deposits and withdrawals in
total and by branch office are routinely used by bank officers to keep informed on the performance
of individual branches to monitor the ratio of loans made to deposits received, the level of cash
reserves, interest paid to depositors, and other common performance indicators.
The information reported is often combined with other external information, such as details about
economic trends, demand for loans, rate of consumer spending, and cost of borrowing. Bank
officers can make informed decisions about the level of interest they will charge the following
week for various types of loans or about whether they must raise the interest rates they pay
customers to attract more deposits. The need to make each of these decisions recurs frequently,
and the information needed to formulate the decisions is also prepared regularly.
MIS poses several problems. Most of the MIS reports are historical and tend to be dated. And many
installations have databases that are not in line with user requirements. Finally an inadequate or
incomplete update of the database makes vulnerable the reliability for all users.
A major problem encountered in MIS design is obtaining the acceptance and support of those
who will interface with the system.

LoveLy professionaL university 29