Page 37 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 2: ERP and Related Technology

Accounting Systems notes

Though accounting systems do not contribute directly to decision making, they can be of great
value in tracking business functions. These systems track information regarding cash, inventory,
ad personnel. In most of these systems, predetermined standards are used a comparison made
between the actual and the standards. The results of such comparison help the management
exercise in the organization and arrive at a decision.

Status Enquiry System

Some decisions in the operational and middle management level do not require any elaborate
computations, analysis, selection etc. These decisions can be taken easily if the current status
is known. Railway reservation systems are an example of status enquiry systems. The system
displays the status based on availability.

2.10 executive information system (eis)

An Executive Information System (EIS) is a computer – based system intended to facilitate and
support the information and decision making needs of senior executives by providing easy
access to both internal and external information relevant to meeting the strategic goals of the
organization. It is commonly considered as a specialized form of 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 enterprisewide. DSS that help
top – level executives analyze, compare, and highlight trends in important variables so that they
can monitor performance and identify opportunities and problems. EIS and data warehousing
technologies are converging in the market place.

eis characteristics

A number of definitions have been put forward to describe EISs. While a definition is useful, in a
complex area such as EISs a better understanding is obtained by looking at their characteristics.
Some of these are given below:
EISs are end – user computerized information systems operated directly by executive managers.
They utilizes newer computer technology in the form of data sources, hardware and programs, to
place data in a common format, and provide fast and easy access to information. They integrate
data from a variety of sources both internal and external to the organization. They focus on
helping executives assimilate information quickly to identify problems and opportunities. In
other words, EISs help executives track their critical success factors. Each system is tailored to the
needs and preferences of an individual user, and information is presented in a format which can
most readily be interpreted.
Although these characteristics apply to all EISs, each individual system can potentially differ in
scope, nature, purpose and content, depending on the environment in which it is implemented.

2.11 Data Warehousing

Today’s competitive business environment needs automated system to improve the performance
and quick response time. As the amount of data stored in ERP system increases, the performance
of the system slows down. To overcome this problem the concept of data warehousing comes up.
Data warehousing also helps to make the analysis process easier and sophisticated.

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