CMGT 556 Week 1 Management Support System Presentation- uopstudy.com

ERP AND MSS Enterprise Resource planning and management support systems for company abc

ENTERPRISE RESOURCE PLANNING SYSTEM • Within business models, organizations have various departments with different activities.

• The activities in the different sectors within the business organizations are interdependent.

• General managers and head of organization need to monitor the progress and activities in individual sectors.

• For further analysis of the business operational growth and profits, an outlined report of the general performance of the entire company or organization should be produced.

• To achieve this, there is need to analyze individual data an information from multiple databases that exists within the organization sectors.

• Most organization entities have employed the use of integrated system for the business model. This integrated system is referred to as enterprise resource planning system (ERP) (Bradford and Florin, 2003).

• Since the early nineteen nineties (1990’s), the development of the early forms of ERP systems had began with an aim to integrated the finance and accounting sectors of a business institutions.

ENTERPRISE RESOURCE PLANNING SYSTEM • Today, the main aim of ERP systems is to integrated all vertical and parallel business processes within the organizational frameworks.

• These organizational frameworks include processes in different operational sectors that coexist within the business model.

• Examples of these sectors include it department, accountancy and finance sectors, procurement and supply chain, human resource, and other sectors depending on the nature of the organization under investigation.

• Besides, ERP systems can also be used to integrated outsourced services within the business models.

• For instance, an outsourced company or institution can be used to manage record keeping about their services offered to the company on a monthly or quarterly basis.

ENTERPRISE RESOURCE PLANNING SYSTEM • Furthermore, utilization of ERP system with most organization have resulted to the following benefits.

• Firstly, through streamlining of processes characteristic of an erp system has led to increased profits in due to reduced operational costs in analysis of the individual data separately about the sectors of the organizations.

• With the streamlining of processes, similar processes and applications are handled with ease saving more time and costs of operation.

• Secondly, for accounting and other statistical related sectors such as stock management and inventory, the ERP has made it easier for transparency and visibility of flow and usage of resources within the organizational framework (Olson, 2003).

ENTERPRISE RESOURCE PLANNING SYSTEM • Through the unified system, the company stakeholders can analyze the distribution of both local and outsourced resources within the different sectors of the organization.

• Thirdly, due to better data analysis and reporting, many organizations have been experiencing an ease in planning and budgeting for future activities in the organizational calendar.

• Besides, ERP systems have offered a vast growth for better compliance with security measures by encapsulation of data within appropriate security measures providing a secure unified system.

• Despite of the benefits of the ERP system, there is need for organizational mangers to note the following shortcomings associated with usage of ERP systems.

• Firstly, the implementation and development costs are relatively high.

• Still, implementation of an ERP system is quite difficult.

• Lastly, after the implementation of there might be change management in using the ERP additional to modification of the core modules to fit the target system of individual sectors of the organization.

ENTERPRISE RESOURCE PLANNING SYSTEM • ERP systems are comprised of supply chain and procurement management, finance and accounting module, planning and report management, warehouse management, and customer reaction management. • In contrary to these operational modules, an ERP system can be modified to suit the needs of the organization.

MANAGEMENT SUPPORT SYSTEM • Through integration of the company with the ERP system, introducing a management support system software will be an easy task.

• A management support system is a computer-based system that aims to provide an in-depth analysis of the management and other issues concerning the operations within the business organization model.

• The management support system will help managers in company abc in the decision making process by generating reports about expenses and user and employee performance.

• The analysis reports generated by the mss will cover broad aspect about the organizational performance and statistics from different sectors with an overview summary.

MANAGEMENT SUPPORT SYSTEM INSTALLATION AT COMPANY ABC •

Management Support System is an example of a content management system with greater capabilities of manipulating and analysis of data of larger complex systems.

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Installation of a MSS in the organizational structure off system is a seven-step process.

Step 1: To know the need regarding Information •

An analytical study of that information of the system information is made about the external and internal parties within the organizational framework.

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These parties and entities may include vendors, customers and consumers, unions and trade associations, and the government regulatory body.

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Information needed to be collected about the organization should entail

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Nature of the business

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Size of the business

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Financial positions and reports

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State and government policies

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Business policies

Two methods at this stage are used to make judgements on the need of the information •

Users are asked to how much information they need to accomplish their tasks.

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Getting information on how managers make their decisions in the company

MANAGEMENT SUPPORT SYSTEM INSTALLATION AT COMPANY ABC • Two methods at this stage are used to make judgements on the need of the information • Users are asked to how much information they need to accomplish their tasks.

• Getting information on how managers make their decisions in the company

• Step 2: Explain the objectives of the MSS • Define the objectives of the MSS. • This procedure aims to define ways to increase efficiency of the system to the management of the organization and not sufficiency.

• The objectives of the MSS should be clear to specified duties delegated to the different types of users such as managers in the system.

• Size and scope of objectives should relate to planning, control, management and the relationships in information flow control within the system.

MANAGEMENT SUPPORT SYSTEM INSTALLATION AT COMPANY ABC • Step 3: Determining the Source of Information • Thereafter defining the objectives of the MSS model and estimation of the vital information needed within the system, we should now focus on determining the source of relevant information for the system (O'brien and Marakas, 2006).

• Some of these sources of information include • Accounts reports • Statistical analysis made from observations by stakeholders • Some external sources such as publications form governments and other commercial sectors.

• Addition to collection of information, some other sources may include private personal interviews and audit reports fro the auditing department of the company.

MANAGEMENT SUPPORT SYSTEM INSTALLATION AT COMPANY ABC • Step 4: Setting the Method of Collection and Classification of Data/Information • All the data and information collected within the MSS should have an elegant and well-defined methods to collect classify and store the information within a common database within the system for ease in retrieval and analysis at any point in time.

• An outline of flow of information collected within the system should be generated.

• Step 5: Method of Giving Information • After collection of information within the system, there is need to stipulate and understand the various techniques used in presenting the information to our consumers of the MSS (the managers).

• These techniques of presenting the reports could be • Charts • Histograms • Graphs • Statements

MANAGEMENT SUPPORT SYSTEM INSTALLATION AT COMPANY ABC • Step 6: Cost Profit Analysis • Through out using the system, the benefits should be estimated comparatively to the profit gained in using the software before and after implementation.

• The cost estimated of the system may result from • Implementation costs • Training and practice • Evaluation

• The evaluated costs of implementing and using the MSS should be compared to the current means of information delivery to the company stakeholders and management (Laudon and Laudon, 1998).

• Step 7: Method of Producing/Presenting Information • The final step of implementation of the MSS is the evaluation stage • Should be done after 3-6 months after installation and implementation to the organization.

• This step is essential to determine the necessity of the MSS at company ABC

CONCLUSSION • Management Support Systems plays a vital role in synchronization and analysis of data and information from different sectors of an organization.

• With the help from an Enterprise Resource Planning System, data will be easily synchronized for analysis.

• With audit functionality within the ERP and MSS, the organization shall experienced improved operational standards with transparency and equal, effective resource utilization.

REFERENCES • Bradford, m., & Florin, J. (2003). Examining the role of innovation diffusion factors on the implementation success of enterprise resource planning systems.

International journal of accounting information systems, 4(3), 205225.

• Laudon, K. C., & Laudon, J. P. (1998). Management information systems: new approaches to organization and technology. Upper saddle river, NJ. • O'brien, j. A., & Marakas, G. M. (2006). Management information systems (vol. 6).

Mcgraw-hill irwin.