The Enterprise Resource Planning Systems

Published Date: 02 Nov 2017

Decision support system aids the middle level management to enhance their decision making. The system has its input from the output generated by the operational level of management using the Management Information system.

The input for the Decision Support System is internal information and they are highly detailed. The middle level management is the one that intends to implement the strategic level decisions given the available resources. Decision support system is mainly used for the reporting purposes (McGraw, 2008). Middle level management make semi-structured decisions i.e. management decisions made using the decision support system is not structured compared to the operational level . They are used to make 'on the spot' , un-routine improved business decisions.

Decision support system relies on building scenarios in order to arrive at a decision. It uses a combination of models, scenarios and information to solve problems and arrive at a decision. Output from the Decision Support System (DSS) are usually less detailed, mainly summary, graphs, charts e.t.c. A functional decision Support system will aid an organization in gaining competitive advantage in its industry as relevant management decisions are made in a little span of time in a more efficient and effective manner, it will also help in efficient management of organizational resources.

Example of such system are spreadsheets and databases.

Example of what can be done with a Decision support systems in a retail business, it can be used to show a comparison of total monthly sales invoices to ensure that a report is produced or generated in order to show if sales target or profit is had been met or achieved, it can also be used to analyse total expenditure in comparison to the budget.

Executive Information System (EIS)

An Executive Information System (EIS) is the type of information system used by top-level management which provides detailed and relevant information from both internal and external sources. They offer strong reporting and drill-down capabilities which helps top-level management analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems (Wikipedia, 2008)

Output from the Executive Information System (EIS) is presented in a easily read and understandable form using the Graphical User Interfaces(GUIs) (Kaniclides & Kimble, 1994) .

Executive Information System is designed to help executives focus on important performance indications.

The Executive Information System (EIS) brings together in a single system and view data from different departments within a company, different relevant sources (both internal and external). It also it also include tools for modelling and analysis. it has the ability to move from summary information to finer levels of detail

Executive Information System (EIS) enables executive to review more data in less time with greater clarity, it helps identify needed decisions and enable it to be carried out within a short period of time which in turns improves management performance

Executive Information System (EIS) also Increases upper management’s span of control as it Increases executives’ ability to monitor activities of lower units reporting to them. It also helps executives to obtain improved information faster

Expert System

The Expert System (ES) is an information system used by top-level management to aid their decision making process. The expert system is built by simulations of how an expert arrives at a decision. The knowledge bank is built and an interface engine is used to ask a series of questions and based on the answers given ( on the interface), it provides a solution. It helps management make complex decisions within a limited period of time without employing an expert, this in turn reduces the cost of business and increase efficiency and effectiveness in the overall business and decision making process which will in turn give a company competitive advantage in the industry where it operates.

Example of an expert system on a online retail store that deals in cloth making, the system ask specific questions about gender, height, body posture, size e.t.c. On answering these questions, the system brings out a suitable product/dress with will be an exact replica of what would be produced when the dress is made.

Banks use this system to assess mortgage loans, this system collect information from the customers, assess their credit based on the information supplied to the system, this is then used to determine the output based on defined criteria programmed in the system.

An example below shows how Expert system is Implemented in a health care system

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Fig 1.1: Medical Expert System

The main of this Health Expert system is to collect information using the interface through a network on the internet, based on the answers to questions entered into the system, the prediction module makes an expert prediction by going through the patients database to confirm his identify and then go through the patients disease database to match its prediction with previous ailment the after identifying the disease, it then loads the diagnosis module to get the medication and treatment to be used in curing the disease. The output is then gotten through the Interface. The expert system has done exactly what a medical professional would have identified the disease and prescribe treatment.

Enterprise Resource Planning Systems (ERP)

Enterprise Resource Planning Systems (ERP) is a computer system which integrate all information systems within a firm or organization in a singular entity. It is a system that comprises of all modules of operation used by all departments within the organization. Enterprise Resource Planning system (ERP) automates all the activities of a business enterprise in an integrated manner, information from a department that is needed by another department will be automatically available to them.

Enterprise Resource Planning system (ERP) makes the flow of information within departments in an organization or company possible, easy and automated.

Enterprise Resource Planning system (ERP) usually are developed using practice standards for each departmental Modules. Modules that deals with finance and accounting are developed in accordance with relevant accounting and financial standard e.g. The principle of double entry, asset liquidation, Depreciation and Appreciation in value of assets e.t.c. The same goes for the marketing , Customer relationship management, delivery, sales modules e.t.c.

Enterprise Resource Planning system (ERP) do not only handle information or relationship between functional departments within the boundaries of a specific company or firm, it also handles relationship with external stakeholders outside the organization e.g. Agents, Dealers, suppliers, customers, partner organizations, government, e.t.c. This is usually implemented using an extranet.

Enterprise Resource Planning system (ERP) works in real time, and operates a common database for all its applications. The interface of a ERP is always standard i.e. it is the same in all modules

An example of an Enterprise system in a retail business will have the Accounting module , Human resource, Marketing module, sales module, Supply chain management module, Quality control module and the customer relationship module.

The use of Enterprise Resource Planning Systems (ERP) in an organization will bring about fast flow of information within an organization's functional departments and between the organization and its stakeholders. This will speed up decision making process around the organization and will help in effective and efficient use of company resources which will help in reducing cost, save time and the overall efficiency of the entire business process which will in turn give Competitive advantage over competitors.