MEKELLE UNIVERSITY

EIT-M SCHOOL OF COMPUTING

DEPARTMENT OF INFORMATION SYSTEM

Individual Assignment for the Course Enterprise System

(Course Code: INSY4114)

No. Name: Id:

1 Biruk Getachew Eitm/ur117576/09

Lecturer: Mr. Ataklti Kahsu G/Mariam

Mekelle, Ethiopia

February, 2021

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 Table of Contents

QUESTION 1 ......................................................................................................................................................... 2
1.1 Enterprise system....................................................................................................................................... 2
1.1.1 Definition..................................................................................................................................... 2
1.1.2 Features............................................................................................................................................... 2
1.2 Enterprise resource planning ..................................................................................................................... 2
1.2.1 Definition............................................................................................................................................ 2
1.2.2 Features............................................................................................................................................... 3
1.3 ERP vs Enterprise System ................................................................................................................... 3
QUESTION 2 ......................................................................................................................................................... 4
2.1 Primary activities ....................................................................................................................................... 4
2.2 Support activities ................................................................................................................................. 4
QUESTION 3 ......................................................................................................................................................... 4
QUESTION 4 ......................................................................................................................................................... 5
QUESTION 5 ......................................................................................................................................................... 6
QUESTION 6 ......................................................................................................................................................... 6
QUESTION 7 ......................................................................................................................................................... 7
7.1 ERP implementation.................................................................................................................................. 7
7.2 ERP project and time ................................................................................................................................. 7
7.3 Best practices of ERP implementation ...................................................................................................... 7
QUESTION 8 ......................................................................................................................................................... 8

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 QUESTION 1: ERP vs Enterprise systems?

1.1 Enterprise system

1.1.1 Definition

It is a system which can be suitable to implement for large organizational system. The base of this
systems are processes, people and information technology. This kind of system are huge and need
packaged enterprise system software to create good environment to implement it.

1.1.2 Features

➢ Their primary function is to integrate data, processes and information technology.

➢ It integrates the set of business activities internally and externally.
➢ It is packaged application software handle integration and organization of business activities.
➢ It encourages business owners and customer to have deep knowledge and understanding of
business practices within the organization.
➢ It has power to influence workflow and process design within new client organization.
➢ Data and information’s are stores in parameters (attributes) and then organized into tables.
➢ They must be configured and customized, and integrate with other computer-based
information system to be effective for the given organization.

There are two types of applications for enterprise systems:

➢ Internally focused applications

➢ Externally focused applications

1.2 Enterprise resource planning

1.2.1 Definition

Its enterprise system software specifically its planning and commercial software package which
integrates all information fabricated through the company financial, account, human resource, supply
chain and customers information. It focuses on organizing information into organizations departments
to manage and integrate it so it can generate support for decision making and researches.

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1.2.2 Features

➢ It uses one database, one application and a unified interface across the entire enterprise
➢ They are computer-based system.
➢ It also processes organizations transaction.
➢ It catalyzes and coordinate organization planning, production and customer response.
➢ It is important for controlling of all the resources need to take, produce, transport and sale for
customers in manufacturing organizations.
➢ Enterprise resource planning can be software or project/program.
➢ They can provide support for e-business campiness.

There are two types of enterprise resource planning:

➢ Enterprise resource planning software

➢ Enterprise resource planning programs

1.3 ERP vs Enterprise System

Enterprise system ERP

It integrates organizations processes, people
and information technology.
It’s packaged enterprise system software.
Its covers internal and external environment
of an organization which can affects
business activities.
It’s a system.
It integrates all information’s fabricated
within an organization.
It’s commercial software packages.
Its covers internal environment of an
organization.
They can be either programs or software.

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QUESTION 2: What is the focus of internally focused enterprise applications?

Internally focused enterprise application focus areas can be categorized into two activities which are
primary and supportive activities.

2.1 Primary activities

Primary activities are tasks which helps to process an input of organization service into final product.
They play role on the production of the product/service directly. Primary activities include:

➢ Inbound logistics

➢ Operations and manufacturing

➢ Outbound logistics

➢ Marketing and sales

➢ Customer service

2.2 Support activities

Support activities are additional tasks which enhance primary activities to take place. They are critical
task because of they can influence the service/product of the company indirectly. Support activities
include:

➢ Infrastructure (hardware & software)

➢ Human resources (hiring, interview scheduling, payroll, benefits)

➢ Technology development (software selection, Internet, intranet, extranet)

➢ Procurement (purchasing of goods and services required as inputs primary

services)

QUESTION 3: What are enterprise systems software?

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Enterprise system software are software which supports effective and efficient integration of human
resource, process and computer system. ESS are applicable for large scale organization which in result
force the software to be served in package format. There are different software packages which ESS
hold inside which are:

➢ Enterprise Resource Planning (ERP)

➢ Customer Relationship Management (CRM)

➢ Supply Chain Management (SCM)

➢ Product Life Cycle Management (PLM)

➢ Enterprise Application Integration (EAI)

➢ Data Warehousing.

➢ Decision Support.

➢ Intelligent Presentation Layer.

➢ E-procurement electronic exchange software.

QUESTION 4: What is BPR and why we need to redesign in implementing enterprise systems?

Business process redesign is process of changing and modifying current business process for the
purpose of improving efficiency and effectiveness. Enterprise systems may not be easy to integrate to
the current environment “as it is”. They may need modification on interface, modules and so on, so
that they can fitting. Transformation resulted from BPR are structural, cultural and compensational
schemes. BPR can be facilitated and can be easy if we use information technology.

There are many reasons to redesign business process, one of the reasons is rapidly changing nature of
enterprise systems. From mainframe to web-service, from EPR to external integration, from packages
to software they might change. The objectives of business process redesign are jobs, skills, structure,
shared values, measurement systems and information technology.

Purpose of business process redesigns are:

➢ To reduce cost and time.

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 ➢ To reduce time.

➢ To improve customer services.

➢ To improve employee quality of life.

➢ To reinvent the basic rules of the business.

➢ To improve customer satisfaction and organizational learning.

➢ To transform (deep change) an organization.

QUESTION 5: What tasks are part of human resource management?

There are four basic task of human resource management which are:

➢ Recruiting and hiring: Its process of finding proper and deserving personnel for available role
and decide who to be appointed or hired .
➢ Training: It could be short or long term special program to improvise employees performance
on their role.
➢ Payroll: Manage ,control and pay salary and service payroll of organization employee and
other external service providers.
➢ Benefits: The business should generate profit (expenses minus incomes) to keep the system on
track and able to cover costs.

QUESTION 6: What is the purpose of ERP implementation’s postproduction support?

➢ The purpose of ERP implementation’s postproduction support is to manage the daily system
operations and ensuring that the system is doing what it needs to do.

➢ The system real time application will be analyzed in postproduction support to check whether
the new system is producing expected output or not.

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 ➢ Postproduction support helps to manage and monitor daily system operation and evaluate on
regular basis.

ERP postproduction support failures may cause cutting over to the new ERP. However, we can
reduce the risk by giving end users trainings and by following pre go live procedures.

QUESTION 7: List the three Major Reasons why ERP systems are needed to integrate overall data,
standardize manufacturing processes, and standardize Human Resource information?

The three major reasons why ERP system is needed are:

7.1 ERP implementation

ERP is the biggest information technology project and its implementation has effect on entire company
including departments and division of the organization. ERP projects are information technology
related. It crucial every part consider the scope and boundary of the project.

7.2 ERP project and time

ERP manage time it takes to transform existing system to new more favourable system smoothly it can
possibly be. Transformation is important part of implementing new system usually real transformation
which uses ERP run between one to three years on average if its large otherwise (small) it takes three
to six months. Small organizations may only use pieces of ERP system.

7.3 Best practices of ERP implementation

Best practices of ERP implementation are:

➢ Top-Down Project Support and commitment: Higher authorities, knowledgeable and valuable
staff will support the project.
➢ Data Clean up and Data Integrity: Data in the system must be sufficiently available and
accurate, and eliminate the old systems.
➢ Extensive Education and Training: Always there should training and software support after
implementation as learning and adaptation continually evolves over time.
➢ Change Management: There should be rotation in role at the time of implementation to reduce
uncertainty and to reduce work load.

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 ➢ Direction where the company is going before software installation and align it to business
process to increase competitive advantage.

QUESTION 8: List and describe the eight stages of enterprise system acquisition process?

1. Identifying, planning, and justifying the information and system requirements:

Identifying the problem being solved is the first step. After we figured out there is problem on business
system then identify the business objective comes. On the first phase we should align the company
objectives and the business plan.

Another challenge is to define system requirements. System requirement describe the objective of the
system, the problem to be solved, business and system goals, system process to be accomplished, user
expectations and deliverables of the system.

The output of this step is a decision to go with specific application, timetable, budget, and system
expectations.

2. Restructuring information system architecture:

Information system architecture is the conceptualization of how the organization’s information

objectives are met by the capabilities of the specific applications. System in progress of acquiring ES
should restructure its Information system architecture. Structural change could be in term of how
information flow, data hierarchy, application functionality and so on. The output of this stage is well
defining thoughts on how to develop specific application that can feet to existing IS architecture.

3. Identifying a development alternative.

This stage able to decide which development alternative (develop in-house, buy already made, leasing,
outsource to other orgs, auction, e-marketplace or public exchange) we should choose. Management
should examiner advantage and disadvantage of each options and best-fit with organization business
plan.

management should carefully examine not only the advantages and disadvantages of each procuring
option, but more importantly, the option must be best-fit with the organization business plan that has
been documented in the previous steps.

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 4. Conducting a feasibility analysis:

Feasibility analysis conduct evaluation if the alternative we choose can be achieved or not from
different angles. There are five categories of feasibility analyses.

➢ Economic feasibility: provides cost-benefit justification with being regard to the expenses of a
system, which include procurement, project-specific, start-up, and operational costs
➢ Technical feasibility: evaluates whether the company has the infrastructure and resources
including hardware, software, and network capability to support the application.
➢ Operational feasibility: evaluate the proposed system should solve the business problems and
provide better opportunity for the business since the business process might be changed.
➢ Legal and contractual feasibility: evaluate weather the alternative chosen has what it takes to
fulfil in legal and contractual point of view.
➢ Political feasibility: provide political perspective of the nature of the organization and analyze
if it’s doesn’t have any political influence in any ways.

5. Performing the selection procedure:

Selection procedure is the process of identifying the best match between available options and
identified requirements. In this stage there are three basic tasks which are to ask for proposal, evaluate
the proposals and decide the best one.

The are three method helps us to pick or differentiate providers (proposal) from one another.

➢ Request for information (RFI): asking information directly to providers.

➢ Request for bid (RFB): bidding for specific items when there are equally competent multiple
vendors.

➢ Request for proposal (RFP): ask for proposal which fulfill least functional, technical and
contractual requirements.

6. Proposal evaluation process:

In this process we evaluate proposal on the table using different criteria. There are six steps in selecting
the best software vendor which are examine potential vendor’s backgrounds, determine the evaluation
criteria, evaluating providers and their applications, selecting the provider and its solutions, negotiate
a contract and establishing a service level argument.

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 7. Implementing the selected solution:

Deploy selected solution to the ground. During this process, the application is also tested and user
reactions are evaluated. After the application or prototype of the application has passed user
requirements, they can be deployed.

8. Reviewing and monitoring the acquisition process:

Software acquisition process is a continuing process that must be reviewed in ongoing basis. All the
acquisition process we have to go back to review and monitor all the progress to see if we did the right
decision or, alternative or not.

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