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Enterprise Business Systems for Management - Coggle Diagram
Enterprise Business Systems for Management
Chapter 3: Enterprise Systems Architecture
ERP Modules
Finance and Accounting
General Ledger
Accounts Payable/Receivable
Financial Reporting
Human Resources Management
Payroll Management
Employee Records
Performance Appraisals
Sales and Marketing
Lead Management
Order Processing
Campaign Management
Supply Chain Management
Supplier Management
Inventory Control
Demand Forecasting
ERP Architecture
Three-Tier Architecture
Presentation Layer
Application Logic Layer
Data Storage Layer
Database Management System
Data Storage and Retrieval
Data Integrity and Security
User Interfaces and Applications
Web-based Interfaces
Mobile Applications
Implications for Management
System Scalability and Flexibility
Handling Increased Workload
Adapting to Business Growth
Data Security and Privacy
Protecting Sensitive Information
Compliance with Regulations (e.g., GDPR and POPIA)
Business Process Alignment
Ensuring ERP Fits Business Needs
Customisation to Support Processes
Integration and Interoperability
Interconnecting Modules
Data Flow Between Modules
Integration Middleware
Interfacing with External Systems
Third-Party Software Integration
Data Exchange with Partners
Data Consistency and Integrity
Maintaining Data Accuracy
Resolving Data Conflicts
Chapter 2: Systems Integration
Functional Silos
Departmental Isolation
Lack of Communication
Siloed Data Repositories
Communication Barriers
Inefficient Information Flow
Misaligned Goals and Priorities
Lack of Cross-Functional Visibility
Limited Process Understanding
Incomplete Decision Making
Implications for Management
Breakdown of Silos
Cross-Functional Collaboration
Improved Communication
Process Optimisation
Identifying Inefficiencies
Streamlining Workflows
Enhanced Collaboration
Sharing Real-Time Data
Supporting Data-Driven Decisions
Business Process and Silos
Process Fragmentation
Independent Process Islands
Lack of End-to-End View 📝🔄
Inefficiencies and Duplication
Repetitive Work
Redundant Data Entry
Lack of End-to-End Process View
Incomplete Process Insights
Difficulty in Process Optimisation
Evolution of IS in Organizations
Historical Perspective
Standalone Systems Era
Lack of Integration
Standalone Systems
Disconnected Applications
Data Redundancy
Need for Integration
Improved Efficiency 🔄📈
Real-time Decision Making
Enhanced Collaboration
ERP and Systems Integration
ERP's Role in Integration
Centralized Data Repository
Unified Process Management
Connecting Functional Areas
Finance and Inventory Integration
Sales and CRM Integration
Data Flow and Real-Time Updates
Immediate Information Availability
Reduced Latency in Decision Making
Systems Integration
Definition and Importance of the Enterprise 🚀
Bridging the Gap
Enabling Data Flow
Integration Challenges
Data Incompatibility
Technology Diversity
Change Management
Integration Technologies (APIs, Middleware)
Application Programming Interfaces (APIs)
Middleware Solutions
Data Transformation Tools
Chapter 1: Introduction to Enterprise Systems for Management 🏢📊
Enterprise Resource Planning Systems 💼
Definition and Components: 📚
Extended Modules (CRM, SCM):
Customer Relationship Management (CRM):
Tracks customer interactions, manages leads, opportunities, and support requests.
Supply Chain Management (SCM): 📦
Optimizes procurement, production, and distribution processes, ensuring efficient supply chain operations.
ERP Definition:
ERP systems are integrated software solutions that facilitate the management of various business functions within an organization. 💻
They enable real-time data sharing and streamline processes across departments.
Benefits of Integration:
Data Consistency and Accuracy:
Centralized data repository eliminates data redundancy and inconsistencies.
Real-time updates ensure accurate and up-to-date information.
Streamlined Processes:
Standardized workflows lead to improved efficiency and reduced manual effort. 📈
Automates routine tasks, reducing errors and delays.
Improved Decision Making: 🔄📈
Access to real-time insights for informed decision making.
Better visibility into processes across departments.
Strategic Implications for Management:
Alignment with Business Goals:
ERP should align with overall business strategy and objectives.
Utilize ERP capabilities to drive business growth and competitive advantage.
Change Management Strategies:
Communicating benefits of ERP to employees.
Addressing concerns and fostering a positive attitude towards change.
Performance Measurement:
Establish key performance indicators (KPIs) to track ERP's impact.
Monitor efficiency gains, cost reductions, and process improvements. 🔄📈
Core Modules (Finance, HR, Inventory):
Finance Module: 📊
Manages financial transactions, general ledger, accounts payable and receivable. 📊🗂️
Human Resources (HR) Module:
Handles employee data, payroll, benefits, and performance management.
Inventory Management Module:
Controls inventory levels, tracks goods movement, and optimizes stock.
ERP Implementation Challenges: ❌
Complex Integration:
Integrating various modules requires careful planning and configuration.
Ensuring seamless data flow between different functional areas.
Resistance to Change:
Employees might resist new processes and system adoption.
Effective change management strategies are essential.
Customization vs. Standardization:
Balancing the need for customization with maintaining standard ERP processes.
Customization can lead to increased costs and complexity.
Data Migration and Validation:
Transferring data from legacy systems to the new ERP.
Ensuring data accuracy and consistency during migration.
ERP Implementation
Resource Allocation:
Allocate budget, personnel, and technology resources.
Form an implementation team with cross-functional representation.
Defining Scope and Timeline:
Determine the extent of ERP integration.
Set a realistic implementation timeline.
Planning and Preparation
Assessing Business Needs and Objectives:
Identify pain points and inefficiencies.
Define clear goals and expected outcomes.
Configuration and Customization
Customization vs. Standardization:
Evaluate the trade-off between customization and sticking to standard ERP processes.
Opt for customization only when necessary to avoid complexity.
Aligning ERP with Processes:
Customize ERP to fit existing processes.
Modify workflows to enhance efficiency.
Rigorous Testing Phases:
Unit Testing: Testing individual modules for functionality.
Integration Testing: Testing data flow between modules.
User Acceptance Testing: Involving end-users to validate system functionality.
Data Migration and Testing
Extracting and Cleansing Data:
Extract data from legacy systems.
Cleanse and transform data to match ERP formats.
Go-Live and Post-Implementation
Transitioning to New System:
Gradual transition to ensure minimal disruption.
Provide training to end-users for the new system.
Monitoring and Support:
Continuous monitoring of system performance.
Address issues and provide timely support.
Post-Implementation Review:
Evaluate if objectives were met.
Identify areas for further improvement.
Challenges and Mitigation
Change Management:
Address employee resistance through effective communication.
Provide training to help users adapt to new processes.
Data Integrity:
Ensure accurate data migration and validation.
Implement data verification mechanisms.
Project Management:
Set up a project management framework to track progress.
Address delays and risks through proactive planning.
People and Organisation
Role of People in ERP
Key Users and Superusers
End-User Involvement
Organisational Changes
Restructuring of Workflows
Changes in Job Roles
User Training and Adoption
Training Programs
Change Management Workshops
Implications for Management
Strategic Planning and Alignment
Aligning ERP with Business Goals
Identifying Key Performance Indicators
Change Management Strategies
Communicating Benefits of ERP 🌟
Addressing Employee Concerns
Implementation Partnerships
Collaborating with Consultants
Sharing Industry Best Practices
Vendor Support and Maintenance
Software Updates and Upgrades
Timely Issue Resolution
ERP Vendors
Vendor Selection Criteria
Functionality Requirements
Vendor Reputation and Experience
Performance Measurement and Analysis
Monitoring Process Improvements
Analysing ROI and Cost Savings