Name :

REG NO:
DRIVE
PROGRAM
SUBJECT CODE & NAME
BK ID
CREDIT & MARKS

MD IQBAL HASSAN
1305014445
WINTER 2014
MBADS/ MBAFLEX/ MBAHCSN3/ MBA
SEM 4
MB0039 ERP
B1979
4 CREDITS, 60 MARKS

Question:
Explain the relationship between business functions and business processes in the insurance sector
Answer:
A business function refers to an activity that an enterprise performs to realise
its pre-determined goals and objectives. You can also define a business function
as a series of rationally interrelated activities or tasks performed by an
enterprise in order to obtain the desired results. Generally, an enterprise
classifies similar activities into groups to simplify work, increase efficiency, and
allocate resources effectively. For example, activities, such as recruitment,
performance appraisal, and compensation management, come under the human
resource function of an enterprise.
Business functions are broadly categorised into two types:
Internal Business Functions: Refer to business functions that are performed
within an enterprise. For example, sales, production, human resource, etc.
External Business Functions: Refer to those business functions that are
performed by an external enterprise or agency. For example, public relations,
market research, etc.
Figure 1.1 represents the different business functions of an enterprise:

Now, to be specific, an enterprise that is engaged in the manufacturing and

selling of products can have the following business functions:
Sales and marketing
Production
Materials management

Human resource
Accounting and finance
Quality control

Each of these business functions consists of numerous business

processes/activities. A business process is defined as a set of activities
performed in a sequence to produce a valuable output from the available inputs.
Let us consider the previous example to establish a relationship between a
business function and a business process. The marketing function of an
enterprise includes activities (processes) such as budgeting, planning, market
research, demand forecasting, pricing, packaging, advertising, and distribution.
Similarly, the human resource function of an enterprise comprises activities such
as recruitment, compensation management, and performance evaluation.
relationship between business functions and business processes of an insurance
enterprise:

Shows the steps involved in the process of selling an insurance plan to a

customer by an insurance enterprise. This process involves steps such as making
a proposal, taking a request, checking the request, calculating premium, drafting
a proposal, and informing the customer. All these steps are the business
processes of an insurance organisation. On the other hand, relationship
management, acceptance, calculation, and support are the different business
functions of an insurance organisation. Thus, you can say that the business
processes and business functions of organisations are interlinked and none of
these can work in isolation.

Question 2:
Explain ERP selection process

Answer: ERP Selection Process

From the discussion so far, you can conclude that selecting an appropriate ERP
system is essential for the growth of an organisation. For this, an organisation
follows a step-by-step approach so that it can select a system that is as per its
requirements. Since every organisation has different requirements, the process
of selecting an ERP system varies across different organisations. However, there
are some common steps that are adopted by all organisations while selecting an
ERP system. These steps are:
Assessing business requirements: Before selecting an ERP system, an
organisation first needs to define its requirements accurately. While defining its
requirements, it should consider the following points:
Identify the present as well as future requirements.
Identify whether the financial value of requirements can be determined if yes,
calculate their value.
Determine the benefits obtained by meeting the requirements.
Assess the problems that can occur if the requirements are not met.
Analyse the different functional areas of the organisation that can be improved
after the implementation of the ERP system.
An organisation should define the requirements for the implementation
of an ERP system with respect to:
Management Information
Determine whether the key data is easily accessible by the existing system.
Identify whether the reports can easily be generated, modified, and executed.
Efficiency
Identify the efficiency of the existing system.
Identify how efficiently the current system streamlines business activities.
Business growth
Identify whether the existing system facilitates business growth.
Determine the adaptability of the existing system with respect to internal and
external changes.
Strategy execution
Identify whether the existing system helps managers in making crucial
strategic decisions.
Reliability
Identify whether the existing system can be improved easily.
Determine whether the existing system is able to increase the organisations
transparency.
Infrastructure
Determine whether the existing system is able to integrate with the
organisations current technology.
Identify the number of incompatible systems used by the organisation.
Determine the implications of using a large number of systems.
Statutory compliance
Identify whether the existing system complies with the regulations.
Determine whether the existing system is per the requirements.
Appointing a selection team: An organisation needs to form a team that is
responsible for making decisions related to the selection and procurement of an
ERP system. The selection team should consist of members from the different
departments of an organisation. The members should have sound knowledge
about the processes of their respective departments. An ERP selection team
comprises the following individuals:

Executive Sponsor: An individual who is responsible for monitoring the

selection of an ERP system on a broader level. An executive sponsor acts as the
key decision-maker for the procurement of an ERP system.
Project Manager: An individual who is responsible for the every phase of the
ERP selection process from initiation to completion. A project manager is
generally selected from the finance or IT department having proper knowledge
about the existing system of the organisation and problems related to it. If you
are a project manager, you should be aware about the requirements of an ERP
system with respect to different departments and have a good working
relationship with these departments.
Analysing business processes and resource constraints: The selection
team should analyse the business processes of the organisation and identify the
requirements for selecting an ERP system. These requirements should include
the present as well as future requirements. While selecting an ERP system, the
selection team should focus on the adaptability and responsiveness of the
system along with its functionality. The selected ERP
system should be capable of responding to the changes that may take place in
an organisation in the future. After preparing a list of requirements, the selection
team should identify the constraints related to time and resources that may
hamper the selection or
implementation process of an ERP system. In the case of any constraints, the
selection team may take help from external consultants or vendors.
Deciding the vendor selection criteria: One of the criteria for evaluating a
vendor is his/her ability to fulfil the requirements identified by the selection
team. Apart from this, other criteria can be the financial strength and future
product development plan of the vendor. Moreover, the selection team should
also consider the price of the ERP system offered by the vendor. After deciding
the vendor selection criteria, the selection team should rank
vendors by using the grading method.
Selecting a vendor: After ranking the vendors, the selection team needs to
shortlist a few potential vendors who are able to fulfil business requirements. For
this, the team provides certain problems faced by an organisation to vendors and
asks them to solve them. The selection team shortlists vendors based on the
demonstrations given by them. Finally, the
vendor who is able to meet all the requirements of the organisation is selected. A
detailed discussion about vendor selection has been included later in the unit.
Selecting the ERP system: After the selection of a vendor, a formal agreement
is made between the vendor and the organisation with respect to pricing, service
contract, licensing, and maintenance contract. The vendor has to help the
organisation in the implementation of the ERP system.

Question :3:
Earlier payroll systems used the systems which were more than process time sheets, print payroll checks
and keep total so f annual wages and deductions. Present day systems used computer-based system that
optimises the collection, collation, transfer and presentation of information throughout an organisation.
Explain the various Roles of MIS. Explain decision support system and its advantages and disadvantage
Answer:
Management is a process of planning, organising, directing, and controlling
organisational resources. IS refers to a set of interrelated components that is
able to collect, store, process, produce, and disseminate information for effective
business decision making. In this way, you can say that MIS is a computer-based
system that supports managers to perform various management functions, such
as planning, organising, directing, and controlling. According to Davis and
Olson, MIS is an integrated user machine system designed for providing

information to support operational control, management control and decision

making functions in an organisation. ISs make use of resources such as
hardware, software, men, procedures as well as suppliers.
MIS collects data from various internal and external resources, processes it, and
provides meaningful information. To process this data, MIS applies certain
technical and analytical measures. The information given by MIS helps managers
to make informed business decisions, which, in turn, improves the organisations
performance.

Decision Support System (DSS)

You make a number of decisions in your everyday life; for example, what to cook
for breakfast? What to wear for office? Similarly, organisations also need to make
certain decisions to carry out their operations smoothly. The decisions made by
organisations usually involve huge cost. One right decision can lead to the
remarkable growth of an organisation, while a wrong decision can ruin the
business completely. Therefore, business
decisions are considered to be highly critical. In order to make effective
decisions, an organisation requires timely and accurate information. DSS is an
interactive information system that provides substantial support to managers
while taking critical business decisions. It is a computerised information system
that is capable of performing logical data analysis and testing hypothesis. Some
of the popular definitions of DSS are as follows:
According to Hicks, DSS is an integrated set of computer tools that allow a
decision-maker to interact directly with computers to create information useful in
making decisions.
As per Keen and Scott-Morton (1978), A DSS couples the intellectual
resources of individuals with the capabilities of the computer to improve the
quality of decisions. It is a computer-based support system for management
decision makers who deal with semi-structured problems.

Characteristics of DSS

To cope with ever-changing business environment, most organisations rely on

DSS to assess and resolve day-to-day business problems. Let us discuss some of
the main characteristics of DSS:
Interactive System: DSS is capable of interacting with its users while
supporting them in decision making. For example, when a user comes up with a
hypothesis about some business decision, DSS tests the hypothesis and provides
its validity to the user.
Logical Tool: DSS enables managers to determine the consequences of making
a particular decision by performing what-if analysis. Moreover, it helps an
organisation to identify the trends of different business events by performing
various logical and statistical operations. For example, an organisation needs to
analyse the sales trend of its products. DSS can easily find out data and reveal
the facts related to the demand of the product in the market.
Integrated System: DSS enables managers of different departments to analyse
business problems, generate reports, and deliver these reports to end users
through various modes, such as e-mail and other mobile devices.

Limitations of DSS

In spite of its many benefits, there are a number of limitations of DSS. The
following are some limitations of DSS:
It only supports the decision-making process of an organisation by providing
and analysing data, but the final decision is taken by an individual. Thus, it
totally depends on the competency of the individual to take the correct decision.

It may not be able to match the decision-making mode of expression or

perception.
It is unable to rectify a faulty decision-making process.
Its efficiency depends on the accuracy of data entered in it.

Question : 4: Evaluate the role of vendor evaluation sub-module of the materials management
module
Answer:

Materials Management
Now, you must have a fair idea about the importance of materials (as a resource)
in the manufacturing of products. The next question arises that what quality and
quantity of materials should an organisation employ in order to produce
standardised products? Materials management encompasses all the aspects of
materials required for converting raw
materials and other inputs into final products. The materials management
module of an ERP system helps an organisation in handling, storing, and
transporting materials. It also allows
an organisation to make judicious purchasing, reduce wastage, utilise materials
efficiently, thereby minimising materials cost. Apart from this, the other functions
of the materials management module include automated vendor evaluation,
automated inventory management, and integrated invoice verification. To
perform these functions, the material management module works with the help
of its sub-modules. Let us discuss these sub modules in detail

Vendor evaluation

Vendor evaluation is a process in which an organisation appraises the potential

suppliers of materials by performing measurable assessments. It is one of the
most important steps of the purchasing process. This is because, the quality of
final output depends on the quality of materials provided by vendors. Therefore,
it is essential for an organisation to evaluate its
suppliers carefully while taking purchasing decisions.
The vendor evaluation module helps an organisation in selecting the right
supplier of materials. This module enables an organisation to easily resolve the
issues related to the procurement of materials, thereby, maintaining cordial
relationships with suppliers. This ultimately helps in optimising the production
process of an organisation.
Question 5:
Write short notes on
a. Sub-modules of CRM
b. Features of human resource management
module
Answer:

Sub-Modules of CRM
The CRM system provides information related to customers to an organisation in
order to make various business decisions. To do so, the CRM system works in
association with its different sub-modules. These sub-modules are shown in
Figure
Figure: Sub-modules of CRM

Let us discuss the different sub-modules of CRM in detail.

Marketing module

The marketing module of a CRM system helps an organisation in:

Executing marketing-related activities

Making long-term marketing plans

Conducting marketing campaigns through different communication modes

Targeting potential customers and retaining the existing ones

Identifying sales-related opportunities

Service module

The service module of a CRM system helps an organisation in:

Improving customer service
Processing service orders
Managing service contracts
Complying with service-level agreements

Sales module

The sales module of a CRM system enables an organisation to:

Manage and execute the pre-sales activities
Capture sales opportunities
Enhance customer interaction
Support data processing
Centralise the relevant sales data at a single location

Features of human resource management module

Some of the important features of the human resource management module of

an ERP system are as follows:
It is able to define the job roles and responsibilities of employees.
It helps in recruiting the right employees with the right skills and
competencies.
It simplifies the activities involved in the employee selection and
placement process of an organisation.
It is capable of shortlisting eligible applicants from the pool of applications
based on pre-specified selection criteria.
It can update the details of a number of employees at a single point of
time.
It continuously tracks the performance of employees, thereby allowing an
organisation to conduct performance appraisals and determine training
needs accordingly.

Question 6:
a. Explain some of the technologies provided by PeopleSoft Inc.
b. Explain the different modules under MFG/PRO application
Answer:

PeopleSoft

PeopleSoft Inc., owned acquired by Oracle, was founded by Ken Morris and David
Duffield in 1987. The organisation provides innovative software to meet the
changing needs and preferences of its customers. PeopleSoft Inc. has developed
software that provides enterprise-wide solutions to various industries, such as
health care, manufacturing, communications, financial services, retail,
transportation, and public sector.
The products provided by PeopleSoft Inc. help organisations in the following
areas:
Human resource management
Accounting
Treasury management
Performance management
Project management
Sales and logistics
Materials management
Supply chain planning
Service revenue management
Procurement
Supply chain management
PeopleSoft Inc. uses new and advanced technologies in its products. Some of
these technologies are:
PeopleSoft Self-Service Applications: These Java-based, cross-platform
applications help employees, customers, suppliers, and other occasional users of
an organisation to perform self-service administrative tasks easily and effectively.
These applications work in coordination with PeopleSofts core product lines,
such as human resource management and materials management.
PeopleSoft Web Client: Refers to software that can be downloaded on demand
and run on multiple Web browsers. PeopleSoft Web Client is affordable, simple
software with open architecture that provides enterprise wide solutions to
organisations. This software is supported by the self service applications of
PeopleSoft. Moreover, it has a Work list and Query interface that provides quick
access to business information.
PeopleSoft Workflow: Enables communication and telecom organisations to
achieve enterprise-wide integration of information, applications, and people. It
helps an organisation to automate its various time-consuming manual activities
by providing useful business data. For example, you are the marketing manager
of an organisation and require an approval from the top management to conduct
a promotional activity. In such a case, PeopleSoft workflow would automatically
forwards the approval requests to your superior.

MFG/PRO application

MFG/PRO software is considered as one of the successful client/server ERP

applications. The application helps an organisation to improve its operational
efficiency. It is comprehensive, open, flexible, scalable, and interactive software
that is developed to serve the manufacturing requirements of an organisation.
MFG/PRO includes a set of applications that supports the manufacturing,
distribution, financial management, supply chain management, and
service/support management functions of an organisation. It uses Oracle or
Progress databases and can run on different operating systems, such as UNIX,
Windows and Windows NT. MFG/PRO is also available with Windows Character
User Interface (CUI) or Graphical User Interface (GUI).