Role of IT in Modern Business Information Technology Plays a vital role in modern Business across

Various Dimensions: 1.Efficiency and Productivity: IT systems streamline processes, automate repetitive
tasks and provide tools for collaboration, boosting overall efficiency and productivity. (Helps Work Faster)
2.Data Management and Analysis: IT enables business to collect, store, and analyze vast amount of data,
helping in decision-making, identifying trends and gaining into customer behavior and market dynamics.
(Manages Information) 3.Communication and Collaboration: IT facilities communication and
collaboration within and across teams, departments and geographical locations through email, video
conferencing, instant messing and collaborative platforms. (Makes communication easier) 4.Customer
Relationship Management: (CRM)IT systems allows businesses to keep track of customer interactions and
preferences, improve customer service, personalize marketing efforts, and build long-term relationships
with clients. (Keeps customers Happy) 5.E-commerce and Online Transactions: IT infrastructure supports
e-commerce platforms, online payment gateways, and secure transactions, enabling businesses to sell
products and services globally, 24/7. (Sells things online) 6.Supply Chain Management: IT systems help in
optimizing supply chain operations by tracking inventory levels, managing logistics, and coordinating with
suppliers and distributors in real-time, leading to cost savings and improved efficiency. (Help keep track
of Things).A supply chain is a combined network of individuals, organizations, resources, activities and
technologies involved in the manufacture and sale of a product or service. 7.Security and Risk
Management: IT plays crucial role in safeguarding business data, networks, and systems from cyber
threats and unauthorized access through the implementation of firewalls, encryption, access controls
and regular security audits. (Keeps Things Safe). Basic Concepts of Computer Networks: •A computer
network is a telecommunications network, which allows digital devices(Nodes) to exchange data
between each other using either wired or wireless connections to share resources (hardware/software)
eg. internet.•A collection of autonomous computers interconnected by a single technology. •A group of
computers which are connected to each other for the purpose of sharing their recourses is called
computer network. Concepts: 1.Nodes: Devices such as computers, servers, routers, switches and
printers connected to the network. 2.Links: Physical or wireless connections that enable communication
between nodes. Links can be wired (Ethernet cables) or wireless (Wi-Fi, Bluetooth). 3.Topology: Refers to
the arrangement of nodes and links in a network. common topologies include bus, star, ring, hybrid.
4.Protocol: Rules and conventions governing communication between devices in a network. Examples
include TCP/IP, HTTP,FTP. 5.IP addressing: Each device in a network is assigned a unique identifier called
an IP address. 6.Routing: Process of finding the best path for data to travel from the source to the
destination across a network. 7.Firewalls: Security devices that monitor and control incoming and
outgoing network traffic based on predetermined security rules. 8.Bandwidth: The maximum rate of data
transfer across a network, usually measured in bits per second (bps), kilobits per second (kbps), megabits
per second (Mbps) or gigabits per second (Gbps). 9.Network Layer: The OSI (Open Systems
Interconnection) model and the TCP/IP model are frameworks that divide network communication into
layers, each functions like data encapsulation, addressing and error detection. Types of Computer
Networks:Computer networks can be classified into several types based on their scope, architecture and
purpose.1.Local Area Network (LAN): •Covers a small geographic area, such as a single building or
campus.•Typically used for connecting devise within homes, offices or schools.•Range: <150m •Examples
include Ethernet networks within a home or office building. 2.MAN (Metropolitan Area Network): •MAN
covers a larger geographical area than LAN, typically spanning a city or a large campus. •Often used to
connect multiple LANs within a metropolitan area. •Examples include cable TV networks that cover a city.
•Range: <50km. 3.WAN (Wide Area Network): •WAN covers a broad geographical area, such as a country,
continent, or even globally. •Utilizes telecommunication links (e.g., leased lines, satellites) to connect
geographically distant locations. •Examples include the Internet and private WANs operated by
corporations. •Range: not fixed. 4.Personal Area Network (PAN): •PAN is the smallest network type,
connecting devices within the personal workspace of an individual. •Typically used for connecting
personal devices such as smartphones, tablets, laptops, and wearable devices.•Range: (<10m) •Use:
Home for personal use. •Examples include Bluetooth and USB connections. Internet Security- It refers to
the measures and practices put in place to protect systems, networks, and data transmitted over the
internet from various cyber threats and unauthorized access. •It encompasses a wide range of
technologies, processes, and strategies designed to ensure the confidentiality, integrity, and availability
of information in the digital platform. •Internet security is like locking the doors and windows of your
digital house to keep bad guys out. •It's all about protecting your online stuff-like your emails, photos,
and bank accounts-from hackers and other cyber bad guys who want to steal or mess with them.Role of
Internet Security- 1.Protecting Confidentiality: Intemet security keeps your personal information safe
from hackers and cybercriminals who might try to steal it. This includes things like your passwords, credit
card numbers, and personal messages. 2.Protection Against Cyber Threats: It helps to stop cyber attacks,
like viruses and malware, from infecting your devices. These attacks can cause your computer to slow
down, lose data, or even be taken over by hackers. 3.Securing Transactions: Internet security ensures
that when you shop online or do banking, your transactions are safe and your financial information is
kept private. This prevents fraud and theft.4.Privacy Protection: It protects your online privacy by keeping
your browsing history, emails, and other personal data safe from prying eyes. This helps you feel secure
when using the internet. 5.Maintaining Trust: Internet security builds trust between users and websites
or online services. When you know a website is secure, you're more likely to trust it with your information
and continue using it. Database Management Systems (DBMS) are software systems used to store,
retrieve, and run queries on data. •A DBMS serves as an interface between an end-user and a database,
allowing users to create, read, update, and delete data in the database. Advantage Of Database System:
1.Data Centralization: Database systems provide a centralized location for storing and managing data.
2.Data Consistency: Database systems enforce integrity constraints, ensuring that data remains
consistent and accurate across the database. 3.Data Security: Database systems offer various security
features such as access control, encryption, and authentication mechanisms to protect sensitive data
from unauthorized access or tampering. 4. Data Recovery and Backup: Database systems facilitate data
recovery and backup strategies to protect against data loss due to hardware failures, software errors, or
disasters. Regular backups and recovery mechanisms help restore data to a consistent state in case of
failures. 5.Concurrent Access: Database systems support concurrent access by multiple users or
applications. They provide mechanisms such as locking and transaction management to ensure data
integrity and consistency even when accessed concurrently.Limitation Of Database System:
1.Complexity: Database systems can be complex to design, implement, and maintain, especially for large-
scale applications. They require skilled professionals to manage various aspects such as database design,
optimization, security, and administration. 2.Cost: Implementing and maintaining a database system can
be costly, including expenses related to software licenses, hardware infrastructure, training, and
personnel. 3.Performance Overhead: Database systems introduce performance overhead due to factors
such as query processing, transaction management, and concurrency control. 4.Scalability: While
database systems are designed to scale, scaling them to handle increasing data volumes or user loads can
be challenging. 5.Single Point of Failure: Database systems can become a single point of failure if not
properly designed for high availability and fault tolerance. Digital signature- is a cryptographic technique
used to validate the authenticity and integrity of digital messages, documents, or software. •Digital
signature like a special seal or stamp you put on an electronic document to show that it's really from you
and hasn't been changed by anyone else. •It authenticates the identity of the sender of a message or
signature holder of the documents. How it works:1.Creation: To create a digital signature, a
mathematical algorithm generates a unique digital fingerprint of the content being signed. 2.Signing: The
hash value is then encrypted using the private key of the signer. This creates the digital signature.
3.Verification: To verify the digital signature, the recipient of the message or document uses the public
key of the signer to decrypt the signature. 4.Comparison: The recipient compares the newly generated
hash value with the decrypted hash value obtained from the digital signature. Business Intelligence (BI)-
refers to technologies, applications, practices, and processes used to collect, integrate, analyze, and
present business information in a way that supports better decision-making within organizations. •This
helps people in companies make better decisions based on the data they have. key aspects of business
intelligence: 1.Data Collection: BI begins with the collection of data from various sources, including
internal systems (such as transactional databases, CRM systems, ERP systems), external sources (such as
market data, social media feeds), and other relevant sources. •Data can be structured, semi-structured,
or unstructured. 2.Data Integration: Once collected, data from disparate sources often needs to be
integrated and consolidated to create a unified view of the business. 3.Data Warehousing: Many Bl
initiatives rely on data warehouses or data marts as centralized repositories for storing integrated data.
4.Data Analysis: BI tools provide a range of analytical capabilities for exploring and analyzing data.
5.Reporting and Dashboards: Bl platforms offer reporting and dash boarding features to visualize data
and communicate insights effectively. 6.Data Visualization: Visualizations play a crucial role in BI by
presenting data in a format that is easy to understand and interpret. 7.Performance Management: BI
facilitates performance management by enabling organizations to track key performance indicators
(KPIs), monitor progress towards goals, and identify areas for improvement.Example: •Tableau
•Microsoft Power BI •SAP Business Objects •IBM Cognos Analytics Difference Between Bl and Data
Science Business Intelligence (BI) and Data Science are both fields within the realm of data analysis, but
they have different focuses, methodologies, and objectives- •BI typically involves analyzing past and
current data to generate reports, dashboards, and daťa visualizations where as Data Science involves to
make predictions. •Bl provides reports but that can't predict future. Data Science provides patterns and
reports that states how the data will look in future. •BI helps to answer the questions you know. Data
Science helps you to discover new question. •BI- Business Users, Data Science- Data Scientist. Data
warehouse- is a specialized database system that stores large volumes of structured, historical data from
various sources within an organization. •It is designed to support reporting, analysis, and decision-making
processes by providing a centralized and organized repository of data. •Data warehouses integrate data
from disparate sources, cleanse and transform it for consistency, and store it in a format optimized for
querying and analysis. •Example: Imagine a big storage room in a library where all kinds of books are
neatly organized on shelves.Characteristics of a data warehouse1.Subject-Oriented: Data warehouses
are organized around specific subjects or areas of interest within an organization, such as sales,
marketing, finance, or operations. •This subject-oriented approach allows users to focus on analyzing
data related to particular aspects of the business. •Focuses on a specific area or subject such as sales,
customers, or inventory. •This business subjects vary from one business to another. 2.Integrated: Data
warehouses integrate data from multiple sources within an organization, including operational
databases, spreadsheets, and external sources. •The integration process consists of two process: a)Data
Cleaning b)Data Transformation. 3.Time-Variant: Data warehouses store historical data over time,
allowing users to analyze trends and patterns in data across different time periods. •It provides
information from historical perspective. Ex Past 5-10 years. 4.Non-Volatile: Data warehouses are non-
volatile, meaning that once data is loaded into the warehouse, it is not typically modified or deleted. This
ensures data consistency and reliability for analysis and reporting purposes. Data Mining- refers to
extracting or mining knowledge from large amount of data. •It involves extracting meaningful
information and knowledge from raw data through various techniques such as statistical analysis,
machine learning, and artificial intelligence. •The primary goal of data mining is to uncover insights that
can help businesses make informed decisions, improve processes, predict future outcomes, and gain a
competitive advantage. Techniques and tasks in data mining- 1.Association Rule Mining: Discovering
relationships and associations between variables in the data. 2.Classification: Assigning categories or
labels to data instances based on their characteristics. 3.Clustering: Grouping similar data points together
based on their features or attributes. 4.Regression Analysis: Predicting numerical values based on input
variables. 5.Anomaly Detection: Identifying outliers or unusual patterns in the data. E-governance- stands
electronic governance. •E-governance is an online service where government interacts with citizens and
offer services. •In simpler terms, it's about using computers and the internet to make government work
better. Types of interaction in E-governance- •G2G-(Government to Government) •G2C- (Government
to Customer) •G2B (government to Business) •G2E (government to employee) Advantage: •Faster
Communication •Quick Feedback •Live monitoring of process •Better integration of Data And services
•Minimum use of hard copy •Cost effective •Easily access bale •Increase interest of citizens. Dis-
Advantage: •Poor IT literacy •Lack of effectively in rural area. •Privacy PROBLEM •Lack of communication
between different department.Modern trends in e-governance 1.Mobile Governance (m-Governance)
2.Artificial Intelligence (Al) and Automation 3.Open Data Initiatives 4.Citizen-Centric Design
5.Personalized and Predictive Services Examples: •mParivahan •UMANG •myGov •DigiLocker •Aadhaar
•Mobile Seva •Digital India •m passport seva •income tax. Applications area of e-governance- •E-
Democracy •E-Education •E-Health •E-Taxation •Smart Cities •Service Delivery. Information System: It
is an integrated set of components elements (hardware, software, telecommunication network) working
together to collect, process, store and distribute information for analysis and decision making. •Experts
develop information system for an organization. Types of Information Systems •Management
Information system (MIS) •Decision Support System (DSS) •Knowledge Work System (KWS) •Office
Automation System. Management Information System (MIS)- is an information system used to collect,
Process, store and distribute information to carry out management functions. •This information can
include data about customers, sales, inventory, finances, employees, and more. •MIS is a field that
focuses on how businesses and organizations can effectively use technology and information to achieve
their goals and objectives.Features/ Characteristics of MIS- 1.System Approach: MIS follows the system
approach, which implies a step by step approach to the study of system and its performance.
2.Management-Oriented: MIS implies that top-down approach need to be followed for designing MIS.
3.Future-Oriented: MIS should also be future purpose so that the system is not restricted to provide only
the past information. 4.Long-Term Planning: MIS should always develop as a long term planning because
it involves logical planning to get success of an organization. 5.As per requirement: The design and
development of MIS should be as per the information required by the managers.Functions of MIS- 1.Data
Collection: MIS collects data from various sources within the organization, such as transactional systems,
sensors, and external sources. Like employees, customer, competitors, production, sales warranty clams,
finance etc. 2.Data Storage: It stores and organizes the collected data in databases or data warehouses
for easy retrieval and analysis or data storage devices e.g. hard drive. 3.Data Processing: MIS processes
the collected data into meaningful information through various operations like sorting, summarizing,
calculating, and aggregating. Like Manipulate, Organize, arrange, classify. 4.Information Generation: It
generates various types of information such as reports, summaries, dashboards, Graphs, charts and
tables based on the processed data. 5.Information Dissemination: MIS distributes the generated
information to relevant stakeholders within the organization through different channels such as email,
portals, and mobile applications.Objectives of (MIS)-•Provision of information for decision making.
•Provide Real time data for fast decision making. •Provide historical data for forecasting and planning.
•It saves time. •It create new jobs. •It reduce costs •Provide better customer service.Scope of MIS-
•Accounting •Computer science •Management •Operational research •Behavioural science. Functional
Information Systems- FIS is based on the various business functions such as Production, Marketing,
Finance and HR etc. •These departments or functions are known as functional areas of business. •Each
functional area requires applications to perform all information processing related to the function. •Used
in different business function to increase the effectiveness and efficiency of business.Characteristics of
FIS- •Many small changes in a large database. •Systematic records •Routine actions & updating. •Data
preparation is a large & important effort. Popular functional areas of the business organizations are:-
1.Financial information system 2.Marketing information system 3.Production/Marketing information
system 4.Human resource information system. Marketing information system- a system in which
marketing data is formally gathered, stored, analyzed and distributed to managers in accordance with
their informational need on a regular basis. Features of MIS- 1.Continuous flow: A well-designed MIS
provides a continuous flow of info for decision making. 2.Decision-making: MIS is structured to provide
info for decision-making. 3.Use of computer: Computers are widely used in MIS 4.Economical: Creating
large database is easy with a computer, this reduces cost and efforts in data collection. 5.Variety:MIS uses
data from a variety of sources both within and outside the organization. 6.Flexible: The system should be
flexible.Characteristics or Features of (MIS)- 1.MIS is permanent and continuous System. 2.Its basic
objective is to provide right information. 3.It is a computer based system. 4.It is future-oriented. 5.It is
used by all levels of management. 6.It collects information from internal & external sources. 7.It collects
all types of marketing information. 8.It helps marketing managers in decision making. Components of
(MIS)- •Internal Records •Marketing Intelligence •Marketing Research •Marketing Decision Support
System. Finance Information Systems- The finance function of a business is responsible for obtaining
money needed by the business and planning the use of that money. •FIS support financial management
functions such as accounting, budgeting, financial reporting, and financial analysis. •Helps in Managing
the organization money as efficiently as possible.
Sources of financial data- • Transactional data •Forecasting data •Financial intelligence data •strategic
planning. Functions of FIS- 1.Collection of Data 2.Monitoring & Controlling the funds 3.Analyze Past and
Current Activities 4.Helps in Decision Making 5.Generating Financial Statement 6.Recording of Data.
Advantages of FIS- •It makes the decision-making process faster. •It helps in planning •It makes the
business more efficient •It gives you a competitive advantage •It allows for integration. Production
information System- provides information on production or operating activities of an organization & thus
facilities the decision making process of production managers of an organization. •Production is an act of
transformation in which inputs are processes and transformed into outputs. •Manufacturing is an
important function area of an organization which is engaged in producing goods from raw material.
Sources of PIS data- 1.Production Data 2.Inventory Data 3.Vendor Data 4.Marketing Data 5.Labor, Union
and Engineering Data 6.External Environment Data.bAdvantage Of PIS- •Improved Efficiency •Optimized
Inventory Management •Enhanced Production Planning •Cost Reduction Improved Product Quality
•Better Decision Making •Increased Customer Satisfaction. MIS application in industries- 1.Hospital:
MIS facilitates electronic health records (EHR) They include information like medical history, treatments,
and test results, making it easier for doctors to access and share information about patients. •Hospital
information systems (HIS) These systems help with tasks like scheduling appointments, keeping track of
patient details, and managing billing and payments. •They make it simpler for hospital staff to handle
administrative tasks. 2.Hotels: MIS assists in hotel management, reservations, guest services, and
revenue management. •MIS facilitates the management of hotel reservations, including online booking
systems, room allocation, and tracking of availability. •This ensures efficient utilization of hotel rooms
and helps in maximizing occupancy rates. 3.Manufacturing: MIS assists in production planning, inventory
management, quality control, and supply chain coordination. •MIS helps in managing inventory levels of
raw materials, work-in-progress (WIP), and finished goods. •MIS facilitates the monitoring and
management of product quality throughout the manufacturing process •Basically it helps manufacturers
optimize operations, reduce waste, and meet customer demands efficiently. 4.Banking and Finance: MIS
facilitates the processing of various banking transactions, including deposits, withdrawals, fund transfers,
loan disbursements, and bill payments. •Online and mobile banking platforms that enable customers to
access banking services conveniently from any device. •Ensuring cyber security within banks by
implementing robust security measures, such as firewalls, encryption, multi-factor authentication. OSI
layer (Open Systems Interconnection)- model is a conceptual framework used to understand and
standardize the functions of a telecommunication or computing system without regard to its underlying
internal structure and technology. 1.Physical Layer: This is the lowest layer of the OSI model, dealing with
the physical connection between devices. It includes the hardware elements involved in the network,
such as cables, switches, and other physical transmission media. 2.Data Link Layer: This layer is
responsible for node-to-node data transfer and error detection and correction. It manages how data
packets are encoded and decoded into bits. 3.Network Layer: The primary function of the network layer
is to move packets from the source host to the destination host across multiple networks. 4.Transport
Layer: This layer provides reliable data transfer services to the upper layers. It is responsible for end-to-
end communication and error recovery, ensuring complete data transfer. 5.Session Layer: The session
layer manages sessions between applications. It establishes, maintains, and terminates connections
between applications, handling session recovery and synchronization. 6.Presentation Layer: This layer
translates data between the application layer and the network format. It ensures that the data sent by
the application layer of one system is readable by the application layer of another system. This layer
handles data encryption, compression & translation. 7.Application Layer: The topmost layer, this provides
various network services directly to end-users or applications. It includes protocols and services such as
HTTP, FTP, SMTP, and DNS, which enable user interactions with the network. Topology- Network
topology refers to the arrangement of different elements (links, nodes, etc.) in a computer network. It
describes how various devices and network components are interconnected. Types- 1.Bus Topology: All
devices share a single communication line or cable. Both ends of the shared channel have a terminator
to prevent signal reflection. 2.Star Topology: All devices are connected to a central hub or switch. Each
device has a dedicated point-to-point connection to the hub. 3.Ring Topology: Each device is connected
to exactly two other devices, forming a circular data path. 4.Mesh Topology: Every device is connected
to every other device in the network. There are two types: full mesh (every device is connected to every
other device) and partial mesh (some devices are connected to all others, and some are connected to
only those they interact with most frequently). 5.Tree Topology: A hybrid topology that combines
characteristics of star and bus topologies. Devices are connected in a hierarchical manner with the central
node at the top, branching out to various devices. 6.Hybrid Topology: A combination of two or more
different types of topologies. For example, a star-bus topology is a common hybrid type. Role of
Manager:*The role of a manager in the implementation of an Enterprise Resource Planning (ERP) system
is crucial for ensuring the success of the project.*Managers play various roles throughout the different
phases of ERP implementation, including planning, implementation, training, and ongoing support.1.
Strategic Planning:Strategic Planning:*They decide what the ERP needs to do for the company and how
it should work.*Managers are responsible for defining the strategic objectives and goals of the ERP
implementation project.*They assess the organization's current processes, identify areas for
improvement, and determine how the ERP system can support business objectives.2. Project
Management:*They make sure everyone is doing their part, the budget is okay, and everything's on
schedule.*Managers oversee the entire ERP implementation project, including planning, scheduling,
budgeting, resource allocation, and risk management.*They coordinate with cross-functional teams,
vendors, and stakeholders to ensure that the project stays on track and meets its objectives within the
allocated time and budget.3. Vendor Selection:*They help pick the right ERP software and negotiate the
deal with the company that sells it.*Managers participate in the selection of ERP vendors by evaluating
different software solutions, conducting vendor demonstrations, and assessing their compatibility with
the organization's requirements. 4. Quality Assurance:*They make sure the ERP works well and fix any
problems before everyone starts using it.*Managers oversee quality assurance activities to ensure that
the ERP system meets the organization's requirements and standards.5. Performance Monitoring:*After
the ERP is up and running, they keep an eye on how it's working and make changes if needed.*Managers
monitor the performance of the ERP system after implementation to assess its effectiveness in achieving
business objectives.6. Continuous Improvement:*They listen to feedback and make improvements to
the ERP over time*Managers promote a culture of continuous improvement by soliciting feedback from
users, identifying lessons learned from the implementation process, and implementing enhancements
and updates to the ERP system as needed to keep. it aligned with evolving business needs.
ERP:Enterprise: Company/Business, enterprise means group of people works together to achieve
common goal with the help of resources.Resource: Anything which is used to run an enterprise/company.
Ex: Man, Material,Machines, money etc. Planning: Means optimum utilization of organizational
resources include what we want to achieve and how it will achieved.ERP provide centralized database
over which every department share their data. ERP ERP provide infrastructural support integration
management of business and aimed at optimum utilization of organization resources. *A process used
by companies to management and integrate the important parts of their business, often via software to
connect planning, Purchasing, inventory, sales, marketing, finance, HR and more. Ex: Tally, SAP ERP refers
to a type of software that organization use to manage day to day business activities such as accounting,
Procurement, project management, risk management and supply chain operations. What Does ERP Do?
*ERP applications also allow the different departments to communicate and share information more
easily with the rest of the company. *It collects information about the activity and state of different
divisions, making this information available to other parts, where it can be used productively. *ERP
applications can help a corporation become more self-aware by linking information about production,
finance, distribution, and human resources together. *The process often integrates accounts payable,
stock control systems, order monitoring systems, and customer databases into one system. How Does It
Work? *(ERP) systems work by integrating various business processes and functions into a single unified
platform, streamlining operations, improving efficiency, and providing real-time visibility into key
business data. *ERP has evolved over the years from traditional software models that made use of
physical client servers and manual entry systems to cloud-based software with remote, web-based
access. *The platform is generally maintained by the company that created it, with client companies
renting services provided by the platform. *Businesses select the applications they want to use. Then,
the hosting company loads the applications onto the server the client is renting, and both parties begin
working to integrate the client's processes and data into the platform. Structure of ERP: *Thus, ERP is
typically executed through a client-server environment. *Three-tier ERP architecture was introduced as
a solution for two-tier ERP problems. *It consists of three layers such as Presentation layer (Graphical
User Interface (GUI), Application layer, and database layer. 3 tier of ERP: 1. Presentation Layer.
Presentation Layer is where data is presented for clients. 2. Application layer Application Layer is
responsible for distributing requests across different applications servers and for business logic
execution. Application layer acts as an interface that facilitate communication between Database layer
and User interface (presentation layer). 3. Database layer: Database Layer is responsible of data storage,
edit, add, and delete.Features/Characteristics of ERP: *Flexible (Changes can be accommodated easily)
*Modular: allowing organizations to select and implement only the modules that are relevant to their
business needs. *Best business practice *Minimize human efforts *Comprehensive *Facilities strategic
Planning Need/Importance of ERP *Integration of Business *Fast and easy flow of information *Critical
Decision Making *Forecasting *Reports generation *Improved collaboration *Better resource
management *Improved productivity *Flexibility in business operations *Sustainable competitive
advantage Advantage/ Disadvantage of ERP: Advantage: *Better resource utilizatio *Fast decision
making *Cost reduction *Better customer service *Improved efficiency *Forecasting is easy
Disadvantage:*It is expensive*Difficulty in implementation, it takes times*Difficulty in integration.
Difference: MIS: *MIS is used for information management. *It stores and organizes information
collected from different sources in a single database. *Creates reports based on this data.ERP: *ERP is
responsible for planning and atomize different business processes. *These solutions analyze data *Allow
managers to forecast development decisions. Issues (Challenges) with ERP Implementation: ★Cost:
Setting up ERP can be expensive, with lots of different costs like buying the software, training staff, and
getting new computers. ★Time: It takes a while to set up ERP, and during that time, things might not
work as smoothly as usual, causing delays. ★3 Resistance to Change: Employees may resist adopting new
processes and systems, leading to resistance and low user adoption rates. Some employees. might not
like using new systems and ways of working, which can slow things down ★Data Migration: Getting all
the old data into the new system can be tricky and might cause problems or even lose some data.
★Customization Challenges: Making the ERP fit perfectly with what the company needs can be tough and
might make it more complicated, *Training Needs: Teaching everyone how to use the new system can
take a lot of time & money. Benefits of ERP Implementation: ★Streamlined Processes: ERP systems
integrate and automate core business processes, leading to improved efficiency, productivity, and
operational performance. (ERP makes it easier to do many tasks in the company, so people can work
faster and better) ★Data Visibility: ERP systems provide real-time access to critical business data,
enabling better decision-making and strategic planning. (with ERP, it's easy to see what's happening in
the company right now, so decisions can be made more quickly) ★Improved Reporting: ERP systems offer
robust reporting and analytics capabilities, allowing organizations to track key performance indicators
(KPIs) and gain insights into business performance. (ERP can make really good reports and graphs,
showing how well the company is doing.) ★Standardization: ERP systems enforce standardized processes
and workflows across the organization, promoting consistency, compliance, and best practices. (ERP
makes sure everyone is doing things the same way, so there's less confusion and things get done right)
★Better Customer Service: ERP systems help organizations respond quickly to customer inquiries,
manage orders, and deliver products and services more efficiently. (ERP can help the company serve
customers better by making sure. orders are handled quickly and accurately). EMERGING TRENDS IN ERP
APPLICATION: ★Mobile ERP: *ERP apps that work on phones and tablets are becoming more
common.*This lets people use ERP wherever they are, making it easier to make quick decisions and share
information. *User Experience (UX) Design:
ERP software is getting easier to use with better designs and layouts *This makes it simpler for people to
do their work without getting confused by complicated screens. ★Embedded Analytics: *ERP apps now
have tools to analyze data built right into them. *This means people can see trends and insights without
using separate programs. ★Internet of Things (IoT) Integration: *ERP systems are starting to connect with
smart devices like sensors and machines. *This helps track things like equipment maintenance and
inventory levels. automatically. ★Al-Powered Automation: *Some ERP apps now use artificial intelligence
to handle repetitive tasks and predict outcomes. *This can save time and reduce errors. ★Voice-Activated
Interfaces: *Some ERP apps now let users control them with voice commands. *This can be especially
useful in places like warehouses where hands-free operation is important. ★Industry-Specific
Functionality: *ERP systems are being customized for specific industries like manufacturing or healthcare.
*This makes them better suited to handle the unique needs of each industry. ERP Application: Human
Capital Management*Human Capital Management (HCM) is a strategic approach to managing employees
as valuable assets to achieve organizational goals effectively.*It involves various practices and processes
aimed at maximizing the potential and performance of the workforce. Human Capital Management
*(HCM) is like taking care of a team of people at work to help the company do its best. 1. Recruitment
and Onboarding: *ERP systems streamline the recruitment process by integrating job postings, applicant
tracking, resume screening, and candidate communication. *They also facilitate seamless onboarding
processes by automating paperwork, training assignments, and compliance tasks. ERP systems help
companies find new employees by advertising jobs and keeping track of who applies. 2. Employee Data
Management:*ERP applications serve as centralized repositories for employee information, including
personal details, employment history, performance evaluations, skills, and certifications. *This data can
be easily accessed, updated, and utilized across different modules. These systems store all sorts of
information about employees, like their names, job history, how well they're doing, and what skills they
have. 3.Payroll and Benefits Administration: *ERP applications serve as centralized repositories for
employee information, including personal details, employment history, performance evaluations, skills,
and certifications. *This data can be easily accessed, updated, and utilized across different modules and
departments. *ERP systems help companies pay their employees accurately and on time. 4. Time and
Attendance Tracking: *ERP applications track employee attendance, work hours, overtime, and leave
requests through integrated timekeeping systems. *This data is used for payroll processing, scheduling,
performance evaluation, and workforce planning. 5. Performance Management: *ERP systems facilitate
performance appraisals, goal setting, feedback collection, and competency assessments. *They enable
managers and employees to track progress, identify development opportunities, and align individual
goals with organizational objectives. 6. Learning and Development: *ERP systems help companies figure
out who might take on new roles in the future and make sure they're ready. *They offer tools for
employees to learn new things, like online courses or training sessions. 7. Succession Planning: *ERP
systems help organizations identify and develop future leaders by assessing employee potential,
identifying key talent, and creating succession plans. *ERP systems help companies figure out who might
take on new roles in the future and make sure they're ready.. 8. Workforce Analytics and Reporting:
*ERP applications provide robust reporting and analytics capabilities for monitoring workforce trends,
identifying patterns, and making data-driven decisions. 9. Employee Self-Service: *ERP systems empower
employees to manage their personal information, view pay stubs, request time off, enroll in benefits, and
access training resources through self-service portals. *This reduces administrative burden and improves
employee satisfaction. 10. Compliance and Risk Management: *ERP applications help organizations
comply with labor laws, regulations, and industry standards by automating compliance tracking,
reporting, and auditing processes. *They also mitigate risks associated with data security, privacy, and
regulatory non-compliance. ERP Application ( Financial Management): *financial management by
providing integrated solutions for various financial processes within an organization. *Financial
management refers to the process of planning, organizing, directing, and controlling an organization's
financial activities to achieve its financial objectives effectively. 1. Accounting: *ERP systems typically
include modules for general ledger, accounts payable, accounts receivable, and fixed asset management.
*These modules automate routine accounting tasks, facilitate accurate financial reporting, and ensure
compliance with accounting standards. 2. Financial Reporting: *ERP applications generate financial
reports such as balance sheets, income statements, cash flow statements, and financial forecasts. *These
reports provide insights into the financial health of the organization and help stakeholders make informed
decisions. 3. Budgeting and Planning: *ERP systems often include budgeting and planning modules that
enable organizations to create, manage, and track budgets across departments and projects. *These
modules streamline the budgeting process, improve accuracy, and support strategic financial planning.
4. Financial Analysis: *ERP applications offer tools for financial analysis, such as key performance
indicators (KPIs), financial ratios, and variance analysis. *These tools help finance professionals assess
performance, identify trends, and make data-driven decisions. 5. Procurement and Purchasing: *ERP
applications integrate procurement and purchasing processes with financial management, enabling
organizations to track expenses, manage vendor relationships, and optimize procurement activities for
cost savings. 6. Revenue Management: *ERP systems include modules for managing revenue streams,
invoicing customers, and tracking payments. ERP Application (Supplier Relationship Management):
*It is all about how a company works with the businesses it buys products or services from. *It is about
nurturing positive and mutually beneficial partnerships with suppliers to ensure the smooth operation
and success of a business. 1. Supplier Information Management: *ERP systems centralize supplier
information, including contact details, performance metrics, contracts, and certifications. *This
comprehensive database helps organizations manage supplier relationships more effectively. ★2.
Sourcing and Procurement: *ERP applications automate sourcing and procurement processes, allowing
organizations to identify suitable suppliers, request quotes, negotiate contracts, and place orders
efficiently. *This streamlines the purchasing process and ensures timely delivery of goods and services.
3. Supplier Performance Monitoring: *ERP systems track supplier performance based on key metrics
such as quality, delivery reliability, pricing, and responsiveness. *This enables organizations to evaluate
supplier performance objectively and identify areas for improvement or collaboration. 4. Supplier
Collaboration: *ERP platforms facilitate collaboration between organizations and suppliers by providing
portals or interfaces for sharing information, documents, and forecasts. *This improves communication,
reduces lead times, and fosters closer relationships between partners. 5. Inventory Management:
*ERP applications integrate supplier data with inventory management systems to optimize inventory
levels and minimize stock outs or overstocking. *This ensures that organizations have the right amount
of inventory to meet demand while reducing carrying costs. 6. Supplier Risk Management: *ERP systems
help organizations assess and mitigate supplier-related risks, such as supply chain disruptions, quality
issues, or compliance failures. By monitoring supplier performance and compliance, organizations.can
proactively identify and address potential risks. 7. Supplier Payments and Invoicing:
*ERP systems automate supplier payments and invoicing processes, streamlining financial transactions
and reducing manual errors. *This improves cash flow management and strengthens supplier
relationships by ensuring timely payments. ERP Application (Inventory Management):-
*Inventory management is like keeping track of all the stuff a company has to sell or use in its operations.
*inventory management is all about making sure a company has the right amount of stuff at the right
time, in the right place, and at the right cost. 1. Order Management: They handle the entire order
process, from receiving orders to picking, packing, and shipping items. This ensures accurate and efficient
order fulfillment. 2. Inventory Tracking: *ERP systems keep a close eye on inventory levels, tracking how
much of each item a company has in stock, where it's located, and when it needs to be replenished. *They
help companies know exactly what they have in stock, where it's stored, and when they need to order
more. 3. Supplier Integration: *ERP systems integrate with suppliers' systems to automate ordering
processes and receive real-time updates on inventory availability. *This streamlines the procurement
process and reduces lead times. 4. Warehouse Management: *They optimize warehouse operations by
organizing inventory, managing storage space, and automating workflows such as picking, packing, and
shipping. *This improves efficiency and reduces errors. 5. Inventory Optimization: *ERP applications use
algorithms and analytics to optimize inventory levels, ensuring that companies have enough stock to
meet demand while minimizing carrying costs and obsolescence risks. *ERP systems help strike a balance
between having enough inventory to meet demand and not having too much, which can tie up money
and space.6. Reporting and Analysis:*They provide reports and data on how inventory is performing,
which helps companies make decisions about what to order and when.*They generate reports and
analytics on inventory performance, such as turnover rates, stock outs, and carrying costs. 7. Integration
with Other Modules: *ERP applications seamlessly integrate inventory management with other business
functions, such as sales, purchasing, and accounting. *This provides a holistic view of the supply chain
and facilitates better coordination across departments.