1) An enterprise information system (EIS) is any kind of information systemwhich

improves the functions of enterprise business processes by integration. This means

typically offering high quality of service, dealing with large volumes of data and
capable of supporting some large and possibly complex organizationor enterprise.
An EIS must be able to be used by all parts and all levels of an enterprise. [1]

The word enterprise can have various connotations. Frequently the term is used only to
refer to very large organizations such as multi-national companies or public-sector
organizations. However, the term may be used to mean virtually anything, by virtue of it
having become the latest corporate-speak buzzword.[citation needed]
2)
Software Package Custom Development
Category
Risk Already tried and tested. New product carries greater
risk.
Team Qualifications Less expertise is required in Requires considerable
analysis, design, and expertise in analysis, design,
development. and development.
Time Less time is required to More time is required to
implement. complete analysis, design,
and development.
Cost Initial cost is lower. Initial cost is higher.
Operating Cost Could be unnecessarily high if Corresponds to the nature of
not all package features are the system.
used.
Requirements Will not fit requirements Designed to fit requirements.
exactly.
Support Must depend on vendor Support and training is
support and training. provided by the project team.
Documentation High quality documentation is Quality of documentation
expected. will depend on the skill of the
project team writers.
Flexibility Other related applications are Other applications must be
generally easily available. custom developed.
Obsolescence Enhancements are provided by Enhancements must be
the vendor. custom developed.
Enterprise Wide Architecture May not follow long range Designed in accordance with
Strategy objectives and corporate long range objectives and
standards exactly; i.e., corporate standards.
compromises might be
necessary.
3)
Need for Enterprise Resource Planning - Why ERP ?

Separate systems were being maintained during 1960/70 for traditional business functions like Sales &
Marketing, Finance, Human Resources, Manufacturing, and Supply Chain Management. These systems
were often incongruent, hosted in different databases and required batch updates. It was difficult to
manage business processes across business functions e.g. procurement to pay and sales to cash
functions. ERP system grew to replace the islands of information by integrating these traditional business
functions.

The successful implementation of an ERP system will have many advantages, as indicated below:

Business Integration and Improved Data Accuracy: ERP system is composed of various
modules/ submodules where a module represents a particular business component. If data is
entered in one module such as receiving, it automatically updates other related modules such as
accounts payable and inventory. This updating occurs at real time i.e. at the time a transaction
occurs. Since, data needs to be entered only once at the origin of the transaction, the need for
multiple entries of the same data is eliminated. Likelihood of duplicate/ erroneous data is,
therefore, minimized. The centralized structure of the database also enables better administration
and security provisions, which minimizes loss of sensitive data.

Planning and MIS: The various decision support tools like planning engines and simulations
functions, form an integral part of an ERP system that helps in proper utilization of resources like
materials, human resources, and tools. Constrained based planning help in drawing appropriate
production schedules, thereby improving the operation of plant and equipment. As a part of MIS,
an ERP system, contains many inbuilt standard reports and also a report writer that produce ad
hoc reports, as and when needed.

Improved Efficiency and Productivity: In addition to provision of improved planning, ERP

system provides a tremendous boost to the efficiency of day to day and routine transactions such
as order fulfillment, on time shipment, vendor performance, quality management, invoice
reconciliation, sales realization, and cash management. Cycle time is reduced for sales to cash and
procurement to pay sequences.

Establishment of Standardized Procedures: ERP system is based on processes of international

best practices, which are adopted by the organizations during implementation. Department silos
are purged, and maverick practices are done away with. Because of top-down view available to
management, chances of theft, fraud and obsolescence are minimized.

Flexibility and technology: Due to the globalized environment, where production units,
distribution centers, and corporate offices reside in different countries, organizations need multi-
currency, multi-language and multi-accounting modes, in an integrated manner. These provisions
are available in most of the ERP systems, particularly in products offered by tier 1 and tier 2
vendors. ERP vendors are also quick to adopt latest technologies, from mainframe to client server
to the internet. Unlike a bespoke system, Upgrading to latest technology for a running ERP system
is uncomplicated, involving mostly adoption of service packs and patches.

4) HISTORY AND EVOLUTION OF ERP

ERP (Enterprise Resource Planning) is the evolution of Manufacturing

Requirements Planning (MRP) II. From business perspective, ERP has expanded
from coordination of manufacturing processes to the integration of enterprise-
wide backend processes. From technological aspect, ERP has evolved from
legacy implementation to more flexible tiered client-server architecture.The
following table summarizes the evolution of ERP from 1960s to 1990s.

1960s Inventory Management &

Control
Inventory Management and control is the
combination of information technology and business
processes of maintaining the appropriate level of
stock in a warehouse. The activities of inventory
management include identifying inventory
requirements, setting targets, providing
replenishment techniques and options, monitoring
item usages, reconciling the inventory balances, and
reporting inventory status.

1970s Material Requirement

Planning (MRP)
Materials Requirement Planning (MRP) utilizes
software applications for scheduling production
processes. MRP generates schedules for the
operations and raw material purchases based on the
production requirements of finished goods, the
structure of the production system, the current
inventories levels and the lot sizing procedure for
each operation.

1980s Manufacturing
Requirements Planning (MRP
II)
Manufacturing Requirements Planning or MRP
utilizes software applications for coordinating
manufacturing processes, from product planning,
parts purchasing, inventory control to product
distribution.

1990s Enterprise Resource

Planning (ERP)
Enterprise Resource Planning or ERP uses multi-
module application software for improving the
performance of the internal business processes. ERP
systems often integrates business activities across
functional departments, from product planning, parts
purchasing, inventory control, product distribution,
fulfillment, to order tracking. ERP software systems
may include application modules for supporting
marketing, finance, accounting and human resources.
5) MYTHS

Since its introduction in the 1990s, Enterprise Resource Planning

(ERP) software has become a multi-billion dollar business and is now
considered a necessary management tool. It facilitates and informs
the planning and decision-making processes. Its transactional
database is viewed through management portals called dashboards.
However, misconceptions about ERP have evolved along with its
evolution and development. Here, we discuss five myths about ERP.

THE SYSTEM IS EXPENSIVE

Licensing ERP software is only a small percentage of the total cost of
implementing the system. What drives the price up is inadequate
preparation when setting business requirements and choosing the wrong
system for an organizationone that includes unneeded functionality.
Managers may set too broad a scope, require changes along the way,
over-think solutions, or promise too much to internal stakeholders. These
mistakes inevitably hinder success and run up costs. Consider this: it may
be more expensive to continue to run your business using Excel
spreadsheets instead of employing an integrated solution across your firm.
ERP ONLY SUITS LARGER
COMPANIES
Initially, it was larger organizations that embraced ERP, as is often the
case with new technology. However, current ERP system designs work just
as effectively for large and small firms; they are highly adaptable for a
wide range of customer sizes because most companies are more similar
than they are different. There is always a purchasing function, an
accounting function, a manufacturing floor, customer service needs,
transportation requirements, no matter the size of an organization. The
basic concept of integrating data from a variety of functions across an
organization is universal.

CUSTOMIZATION IS DIFFICULT
The evolution of ERP software has included the recognition that there is a
need for adaptability. Once a company has implemented an ERP system,
and it is working well, new insights into ways of working may surface.
Modern systems not only record but analyze operations. After
implementation, the production manager may decide the organization
requires an additional material planning module. ERP is all about change
and growing along with new ideas.

IMPLEMENTATION CANNOT BE
HANDLED INTERNALLY
Choosing an ERP system also means choosing an implementation team.
Software providers work closely with IT individuals to facilitate the
implementation in-house; an ERP implementation partner knows what is
needed to lessen the stress for everyone involved. Vendor choice should
include the ability to test a sample of the system before purchasing it,
available technical support, continuing training sessions, and software
upgrades.
ERP DELIVERS BENEFITS
An ERP system can uncover new ways of working and hidden capabilities
with its transparency and analyses. But those benefits don't amount to
much if departments don't establish common goals. Many organizations
assume that investing in ERP means that it will magically solve problems,
when in reality, it empowers employees to make better decisions.

A robust ERP system will generate operational improvements, closer

relationships between business functions, and business insights that will
increase profitability and cost reduction through data transparency.

6) http://slideplayer.com/slide/9920946/

Business Process Reengineering

Davenport & Short (1990) define business process as "a set of logically
related tasks performed to achieve a defined business outcome."

Business process reengineering (BPR) is the analysis and redesign of

workflow within and between enterprises.

1. Organize around outcomes, not tasks.

2. Identify all the processes in an organization and prioritize them in order

of redesign urgency.

3. Integrate information processing work into the real work that produces
the information.

4. Treat geographically dispersed resources as though they were

centralized.

5. Link parallel activities in the workflow instead of just integrating their

results.

6. Put the decision point where the work is performed, and build control
into the process.

7. Capture information once and at the source.

7)Role of information technology
Information technology (IT) has historically played an important role in the
reengineering concept. It is considered by some as a major enabler for new
forms of working and collaborating within an organization and across
organizational borders.

The early BPR literature, e.g. Hammer & Champy (1993), identified
several so called disruptive technologies that were supposed to challenge
traditional wisdom about how work should be performed.

1. Shared databases, making information available at many places

2. Expert systems, allowing generalists to perform specialist tasks

3. Telecommunication networks, allowing organizations to be centralized

and decentralized at the same time

4. Decision-support tools, allowing decision-making to be a part of

everybody's job

5. Wireless data communication and portable computers, allowing field

personnel to work office independent

6. Interactive videodisk, to get in immediate contact with potential buyers

7. Automatic identification and tracking, allowing things to tell where they

are, instead of requiring to be found

8. High performance computing, allowing on-the-fly planning and

revisioning

In the mid 1990s, especially workflow management systems were

considered as a significant contributor to improved process efficiency.
Also ERP (Enterprise Resource Planning) vendors, such as SAP,
positioned their solutions as vehicles for business process redesign and
improvement.

8) SCM
Global markets are expanding beyond borders and re-defining the way demand and supplies are
managed. Global companies are driven by markets across continents. To keep the cost of
manufacturing down, they are forced to keep looking to set up production centers where the cost
 of raw materials and labor is cheap. Sourcing of raw materials and vendors to supply the right
quality, quantity and at right price calls for dynamic procurement strategy spanning across
countries.

With the above scenario you find companies procuring materials globally from various vendors to supply
raw materials to their factories situated in different continents. The finished goods out of these different
factory locations then pass through various chains of distribution network involving warehouses, exports
to different countries or local markets, distributors, retailers and finally to the end customer.

In simple language, managing all of the above activities in tandem to manage demand and supply on a
global scale is Supply Chain Management. As per definition SCM is the management of a network of
all business processes and activities involving procurement of raw materials, manufacturing and
distribution management of Finished Goods. SCM is also called the art of management of providing the
Right Product, At the Right Time, Right Place and at the Right Cost to the Customer.

Why SCM strategy is important for an Organization

Supply Chain Strategies are the critical backbone to Business Organizations today. Effective Market
coverage, Availability of Products at locations that hold the key to revenue recognition depends upon the
effectiveness of Supply Chain Strategy rolled out. Very simply stated, when a product is introduced in the
market and advertised, the entire market in the country and all the sales counters need to have the
product where the customer can buy and take delivery. Any glitch in the product not being available at the
right time can result in the drop in customer interest and demand which can be disastrous.
Transportation network design and management assume importance to support sales and marketing
strategy.

9) Decision support system (DSS) can be defined as a computer program

application that analyzes business data and presents it so that users
can make business decisions more easily. It is an "informational
application" (to distinguish it from an "operational application" that
collects the data in the course of normal business operation).Typical
information that a decision support application might gather and
present would be:

a) Comparative sales figures between one week and the next

b) Projected revenue figures based on new product sales

assumptions

c) The consequences of different decision alternatives, given past

experience in a context that is described
A decision support system may present information graphically and may
include an expert system or artificial intelligence (AI). It may be aimed at
business executives or some other group of knowledge workers
Architecture of DSS

Decision support system primarily consists of the following :

The Database

The database contains information about internal data and external data
that will contribute to the decision making process. This data is in most
cases more extensive than traditional relational models

The Model Base

This module contains a set of algorithms that makes decisions based on the
information in the database. This information is then summarized and
displayed as tables or graphs.

The Interface

This is what the user will use to interface with the system. This is
complimented with an interactive help and navigation screen.