DEPARTMENT OF SCHOOL OF COMMERCE &

MANAGEMENT

TUTORIALS ON

“MANAGEMENT INFORMATION SYSTEM”

Submitted By

Aayush Harchandani

Roll No. 18

Division A

Under the Guidance of

Prof. Smita Patil
Acknowledgement

We take this opportunity to express our gratitude

towards SANJAY GHODAWAT UNIVERSITY
for permitting us to perform this project.

I would like to express my deepest appreciation to

all those who provided me the possibility to
complete this report. It is a part of intimate feeling
to mention the constant encouragement, inspiration
and valuable guidance by Mrs. Smita Patil. Lastly,
I would like to express sincere thanks to all those
who have directly or indirectly help me in the
completion of the project work.

Student’s Signature Professor’s Signature

Index Page

Tutorial
S. No. Page No. Signature Remarks
Title

Tutorial 1
Management
Information
1 1-11
System and
MIS in
Apple Inc.
Tutorial 2
Types of IS
2 and DSS of 12-15
Riskturn
Software
Tutorial 3
System
Development
3 Life Cycle 16-21
and
Waterfall
Model
Tutorial 4
Enterprise
Resource
4 Planning and 22-31
Oracle
NetSuite
Software
Management Information System

Tutorial 1
Management Information System and MIS in Apple Inc.

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Aim: Introduction to Management Information System (MIS)

1. Introduction:
MIS is the use of information technology, people, and business processes to record, store and
process data to produce information that decision makers can use to make day to day decisions.
The full form of MIS is Management Information Systems. The purpose of MIS is to extract
data from varied sources and derive insights that drive business growth.MIS is the acronym
for Management Information Systems. In a nutshell, MIS is a collection of systems, hardware,
procedures and people that all work together to process, store, and produce information that is
useful to the organization.

2. Functional information System:

2.1 Human resource Information System (HRIS)

HRIS, also known as Human Resource management system, is data-crunching software utilized
by a company’s HR department to help in easy man-management. In order to be effective in its
human resource management duties, it combines several HR function and processes such as
recruitment process, worker data storage, payroll management, benefits management and
keeping track of employee performance and employee attendance records. HRIS is basically an
intersection of the core HR activities with IT; with an aim of simplifying the management of the
day to day HR processes and activities.

2.2 Finance Management information system (FMIS)

Financial Management Information Systems (FMIS) support the automation and integration of
public financial management processes including budget formulation, execution (e.g.
commitment control, cash/debt management, and treasury operations), accounting, and reporting

2.3 Marketing Management Information System (MMIS)

A marketing information system (MIS) is a set of procedures and methods designed to generate,
analyze, disseminate, and store anticipated marketing decision information on a regular,

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continuous basis. An information system can be used operationally, managerially, and

strategically for several aspects of marketing.

2.4 Production and inventory management information system (P&IMIS)

A typical manufacturing MIS is used to monitor the flow of materials and products throughout
the organization..... Some of the common subsystems in a manufacturing MIS include: design
and engineering, production scheduling, inventory control, process control and quality control.

3. MIS in Apple
3.1 Company Name and Introduction

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California, that designs, develops, and sells consumer electronics, computer software, and online
services. It is considered one of the Big Five companies in the U.S. information technology
industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include
the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable
media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods
wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's
software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes
media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork
creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic
Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store,
Apple Arcade, Apple Music, Apple TV+, Apple Fitness+, iMessage, and iCloud. Other services
include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop
and sell Wozniak's Apple I personal computer, though Wayne sold his share back to Jobs and
Wozniak within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and
sales of its computers, including the Apple II, grew quickly.

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3.2 Status of MIS in Company

The corporate structure of Apple that comprise of the global presence and departmental level
leadership presents a unique situation. The structure necessitates a type of information systems
that can facilitate the distribution of appropriate communication through the right channels and
in a timely manner. Furthermore, this is critical to promoting consistent and informed decision
making at diverse levels.

The right information systems can enhance proper communication. The company has a
philosophy of being the leader in marketplace on matters related to innovativeness (Wade, Scott
and Yogesh 399). The company also applies the same philosophy in its communication and
information transfer. Apple manages its internal communication in a manner that enhances its
superiority. Furthermore, the system allows Apple to interact with external stakeholders such as
suppliers (Monczka, 15). The company has created unrestricted information exchange system
that virtually links suppliers to the product development team and the retail units. Furthermore,
information exchange takes place between the retail unit and the customer service center.

It is notable that customer service center are always equipped with information about suppliers
and company product range (Monczka, 15). The customer center provides services to clients
based on the virtually available information. This strategy has enabled Apple to maintain a value
chain information exchange system that links different components on an end-to-end basis.

The virtually available information in the company enables the reduction of costs involved in
transferring information between the people who need it (Hamilton 58). Furthermore, it saves the
time of the company and its staff for everything to do with information exchange takes place
virtually.

The implementation of a computing utility system also helps Apple minimize costs because it
limits the volume of assets that are used in information exchange (Gitman and Carl 506). The
company has ensured a lean and efficient information management strategy.

The company has implemented virtual business designs that integrate communication and
information management (Hamilton 58). The company has used virtualization as a factor in

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gaining an edge over competitors. The company has used intranet system that enables workers to
gain all information they need at their workstations.

3.3 Business Process of company

BURLTON IGOE DIAGRAM OF THE BUSINESS PROCESS AT APPLE

Burlton’s IGOE model, developed by Burlton (2001) is the first detailed method for capturing
and documenting process information (Long 2012). IGOE is an acronym for the key components
of the business process, viz. Inputs, Guides, Outputs, and Enablers. Below is the diagram of the
Burlton IGOE model diagram of Apple’s business process elucidated above:

The platforms created by Apple like its iTunes music store and App Store can create a
compelling competitive advantage to the company in the longterm as they can lock-in the

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customers with the company’s products like iPod and iPhone. These platforms created by Apple
make it easy for consumers to buy the required media files and apps easily from the company.
Audio files and Apps through these platforms can’t be played on other devices made by other
vendors. Other vendors like Google and Microsoft too have comeup with their competing
platforms like Play Store and Zune Marketplace offering similar products and services. These
competing platforms are good and got a good customer base in a short period of time. But these
platforms are still picking up momentum and can’t give tough competition to Apple

3.4 Business Strategy of company

Vertical Integration

Apple products work best when used with other Apple Inc. accessories, devices, and services.
For instance, Apple smartphones can only use Apple applications such as iTunes. Apple takes
pride in its products enabling users to work simply productively, creatively, and collaboratively.
They control their product quality by creating as much of their product’s software and hardware
as possible. You can also do this at your startup by controlling as much of your product’s or
service’s production as possible. Relying on a third-party provider for essential parts of your
production could lead to your high standards not being met.

Offering Products as A Service

The service division of Apple is set to be a Fortune 500 company according to Apple CEO Tim
Cook. This is because customer service is a priority for the company. Apple has innovatively
transformed its iPhone 11 into a service by retailing it on a monthly subscription. A customer
may now access an iPhone 11 and Apple TV+ for $17/month. The phone comes with technology
and thousands of apps on the App Store that makes work smoother and more enjoyable. Apple’s
readiness to partner with the best developers and companies makes it possible for its clients to
have maximum benefits from the company. Apple is unlocking benefits for its customers in the
education, AI and health services by partnering with leading technology companies like
Accenture, Cisco, Deloitte, GE, and IBM to revolutionize service delivery. Some of these tech
companies might open up in Phoenix. .

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Strengthening the Apple Ecosystem

Apple’s competitive advantage is largely due to its ecosystem. In tech terms, an ecosystem is a
group of devices with software that creates a single collaborative network. An ecosystem
provides opportunities to leverage relationships with existing customers to offer additional
products and services. Apple products are all designed to work together. An owner of an iPhone
is likely to have an iPad, a Mac, an Apple TV, an Apple Watch, AirPods and most recently, a
HomePod. In his address early this year, Apple CEO Tim Cook acknowledged that Apple Watch
had boosted its ecosystem.

3.5 Applications of MIS

ERP – Enterprise Resource Management

Those databases are designed to store massive amounts of business information, which can
include inventory levels, transactions, or just about anything else. They call it “enterprise
resource management.”

“As the leader in enterprise software and with 76% of business transactions touching an SAP
system, SAP is the ideal partner to help us truly transform how businesses around the world
are run on iPhone and iPad,” said Apple CEO Tim Cook in a release.

Basically, Apple is enabling Systems, Applications & Products in Data Processing (SAP’s)
tremendous base of developers to quickly and easily build iOS apps that tap into that data. A
new software-development kit, or SDK, will speed up the development of those apps.

As part of the partnership, SAP will be building native iPhone and iPad apps that will let
developers access their data on the go. Intriguingly, SAP says in the press release that those
apps will be built with Swift, Apple’s home-grown programming language.

For Apple, this is an important partnership. While it’s had increasing success selling iPhones
and iPads into the enterprise, it doesn’t have the knowledge, know-how, or existing
relationships to build a database that could compete with SAP, even if it wanted to.

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By joining up with the German company, it boosts the reach of both businesses, the same
way IBM is providing crucial business-apps running on the iPhone. And it’s a big part of the
ongoing evolution of Apple’s enterprise strategy.

CRM - Customer Relation Management

1. Knowing its customers

“Get closer than ever to your customers. So close, in fact, that you tell them what they need
well before they realize it themselves.” It’s an ambitious aspiration, but one that Apple
follows through on. Apple’s consistently high NPS (Net Promoter Score) ratings indicate that
it’s remarkably good at retaining its customers. Research recently reported that Apple’s
operating system, iOS, had loyalty rates of around 89%. Also fueling Apple’s commanding
customer retention scores is its stellar technical support. Whenever you buy an Apple
product, you have the option to schedule in a tailored, one-to-one session with a specialist –
exploring your new device’s best features, and fine-tuning it to your tastes. Apple’s
commitment to understanding the individual is no accident. It’s a carefully plotted out CRM
strategy, and it’s paying stunning dividends.

2. Anticipating customer needs

“[The computer] took us three years to build. If we'd given customers what they said they
wanted, we'd have built a computer they'd have been happy with a year after we spoke to
them – not something they'd want now.” It’s clear Apple’s understanding of its customers
runs deep. Yet, paradoxically, Jobs was famously opposed to market research. Rather,
Apple’s intimacy with its customers has traditionally stemmed from the company’s empathy
with their pain points and needs. It’s this, above all, that’s driven Apple’s desire to innovate –
to expand and evolve its offerings to meet not only its customers’ current requirements, but
those of their futures, too.

Because if it isn’t game-changing, Apple won’t do it. The iPhone, iPod, and iPad were all
ahead of their time, while iTunes was once the only legal online catalogue of songs to feature
music from all five major record labels. With Apple TV now producing original content and

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Apple Pay redefining how we shop, Apple’s innovation is a hallmark of its desire to grow
with the needs of its users.

3. Stores focusing on customer experience

“How does somebody know what they want if they haven’t seen it?”

It’s a good question, and one that continues to define how Apple operates its physical shops.

Apple Store front view

Apple’s retail departments and staff are built with the individual in mind – to ensure its
customers have an experience, rather than simply make a purchase. Anyone who’s ever
visited one of Apple’s stores will back this up, too – they’re places of wonder, where you can
explore the latest technology at your own pace. Apple’s use of CRM in-store is a testament to
its long-term mentality. An immediate sale is good, but an ongoing relationship with a
customer is more profitable. By foregoing conventional sales tactics, Apple’s shops create
value by encouraging browsers to love and appreciate the benefits of having an iPhone, an
iPad, or the latest Apple Watch.

4. Branding that speaks to a generation

“Design is not just what it looks like and feels like. Design is how it works.”

Apple is… a cool company.

Whether you buy into its products or not, Apple’s pull is undeniable. Boasting one of the
most iconic and instantly recognizable brands in the world, it draws huge queues at product
launches, while thousands of user-generated videos online are dedicated to ‘unboxing’ Apple
devices.

But Apple’s brand is more than just a byproduct of designing products that look, feel, and
work well. Its ecosystem of products – each of which functions seamlessly with the rest –
engenders loyalty with the brand, while rewarding the customer for choosing Apple. Better
still, Apple’s branding has succeeded where plenty of other big companies have failed – by

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appealing to millennials. Research shows that Apple is one of the brands Generation Y (and
Generation X, too!) feel most emotionally attached to, and it’s not hard to see why. With
simple, stripped-back product designs, a commitment to sustainability, and a playful tone of
voice, Apple (quite literally) speaks to whole generations

SCM – Supply Chain Management

In a nutshell, Apple purchases components and materials from various suppliers, then gets
them shipped to the assembling plant in China. From there, products are shipped directly to
consumers (via UPS/FedEx) who bought from Apple's Online Store.

For other distribution channels such as retail stores and other distributors, Apple keeps
products at Elk Grove, California (where central warehouse and call center are located) and
ships products from there. At the end of product's life, customer can send products back to
nearest Apple Stores or dedicated recycling facilities.

When Cook initially took over Apple's supply chain, he cut down the number of component
suppliers from 100 to 24, forcing companies to compete for Apple's business," writes San
Oliver from Apple Insider, "He [Cook] also shut down 10 of the 19 Apple warehouses to
limit overstocking, and by September of 1998 inventory [stock on hand] was down from a
month to only six days.

Looking back at the last five years, Apple's inventory turnover hit its lowest point in
September 2018: 37.2x. That means Apple turned their inventory every 10 days.

Keeping as little inventory on hand as possible is very important. Why? Because of costs
with warehouses and competitors possible hits. Technology manufacturers can’t afford to
keep too many products in stock because a sudden announcement from a competitor or a new
innovation could change everything and suddenly bring down the value of products in
inventory.

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By 2013, Apple was dealing with 154 key suppliers (way lower than Amazon for example),
which facilitates better supplier relationships) and kept only one central warehouse in perfect
data sync with the approx. 250 owned stores.

Although Apple was always pushing to have fast inventory turnover, it made a change in
2011 of not rushing selling. The change was implemented with the launch of the iPad 2 and
consisted of selling the much-awaited products the second day after they were delivered to
shops, despite the customer queues in front. This measure was taken to make sure inventory
tracking runs smooth and there are no errors to lead to inventory inaccuracies.

3.6 Conclusion:
I have successfully studied Enterprise Resource Management, Customer Relation Management,
and Supply Chain Management of Apple Inc. I also successfully conducted a detailed study on
Management Information System of Apple.

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Tutorial 2

Types of IS and DSS of Riskturn Software

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Aim: To study types of information system and application of DSS

1. Introduction:

Information system, an integrated set of components for collecting, storing, and processing
data and for providing information, knowledge, and digital products. Business firms and other
organizations rely on information systems to carry out and manage their operations, interact
with their customers and suppliers, and compete in the marketplace. Information systems are
used to run inter organizational supply chains and electronic markets.

1.1 Types of information system

Transaction Processing System (TPS)

Transaction processing systems are used to record day to day business transactions of the
organization. They are used by users at the operational management level. The main objective
of a Transaction processing system is to answer routine questions such as; Example - employee
record Keeping. TPS is also known as transaction processing or real-time processing.

Decision Support System (DSS)

Decision support systems are used by senior management to make non-routine decisions.
Decision support systems use input from internal systems (transaction processing systems and
management information systems) and external systems.
Example – manger

Office Automation Systems

An office automation system (OAS) is a collection of communication technology, computers
and persons to perform official tasks. It executes office transactions and supports official
activities at every organizational level.

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Knowledge Work Systems

A knowledge work system (KWS) is a specialized system built to promote the creation of
knowledge and to make sure that knowledge and technical skills are proper integrated
into business. Example- Computer aided design system

Executive Support Systems

An executive support system (ESS) – an extension of MIS – is a computer-based information
system that helps in decision making at the top-level of an organization. The decisions taken
with the help of executive support system are non-routine decisions that affect the entire
organization and, thus, require judgment and sight.
2 Decision Support System:-

A decision support system (DSS) is a computerized program used to support determinations,

judgments, and courses of action in an organization or a business. A DSS sifts through and
analyzes massive amounts of data, compiling comprehensive information that can be used to
solve problems and in decision-making.

2.1 Framework

Problem
Intelligent
statement

Design

Choice

Implementation

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Application of Decision Support System

Riskturn Software

What is Riskturn Software?

Riskturn is a web application for financial planning, integrating uncertainties. It presents a

simple and intuitive interface to build probabilistic financial forecast in just 5 steps. The
powerful model integrates financial and time variables of uncertainty in a cash flow forecast.
Then, running a Monte Carlo simulation, it delivers a complete set of probabilistic financial
indicators for single initiative or portfolio (e.g., probability to reach profitability target, VaR,
CFaR, sensitivity.

 Best For
Business-development oriented companies like large corporations, medium-small
businesses, research & development organizations and both financing providers (venture
capitalist) and seekers (startups)
 Features:
Matrix Plots
Histogram Charts
Export TIF, JPEG, GIF, EMP.

 Conclusion:
Decision support system (DSS) helps in many ways in an area it can sometimes greatly help
to improve the decisions that are made. However, it should not be forgotten that DSS only
have a sense within the global decision-making system, which also comprises of the decision
maker who uses the DSS to make a decision in an organizational environment. (DSS) is a
computerized program used to support determinations, judgments, and courses of action in an
organization or a business.

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Tutorial 3
System Development Life Cycle and Waterfall Model

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Aim: To Study the Software Development Life Cycle

Software Development Life Cycle

Software Development Life Cycle (SDLC) is a process used by the software industry to design,
develop and test high quality software’s. The SDLC aims to produce a high-quality software
that meets or exceeds customer expectations, reaches completion within times and cost
estimates.
 SDLC is the acronym of Software Development Life Cycle.
 It is also called as Software Development Process.
 SDLC is a framework defining tasks performed at each step in the software development
process.
SDLC is a process followed for a software project, within a software organization. It consists of
a detailed plan describing how to develop, maintain, replace and alter or enhance specific
software. The life cycle defines a methodology for improving the quality of software and the
overall development process.

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A typical Software Development Life Cycle consists of the following stages −

Stage 1: Planning and Requirement Analysis

Requirement analysis is the most important and fundamental stage in SDLC. It is performed by
the senior members of the team with inputs from the customer, the sales department, market
surveys and domain experts in the industry. This information is then used to plan the basic
project approach and to conduct product feasibility study in the economical, operational and
technical areas.

Planning for the quality assurance requirements and identification of the risks associated with the
project is also done in the planning stage. The outcome of the technical feasibility study is to
define the various technical approaches that can be followed to implement the project
successfully with minimum risks.

Stage 2: Defining Requirements

Once the requirement analysis is done the next step is to clearly define and document the product
requirements and get them approved from the customer or the market analysts. This is done
through an SRS (Software Requirement Specification) document which consists of all the
product requirements to be designed and developed during the project life cycle.

Stage 3: Designing the Product Architecture

SRS is the reference for product architects to come out with the best architecture for the product
to be developed. Based on the requirements specified in SRS, usually more than one design
approach for the product architecture is proposed and documented in a DDS - Design Document
Specification.

This DDS is reviewed by all the important stakeholders and based on various parameters as risk
assessment, product robustness, design modularity, budget and time constraints, the best design
approach is selected for the product.

A design approach clearly defines all the architectural modules of the product along with its
communication and data flow representation with the external and third party modules (if any).

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The internal design of all the modules of the proposed architecture should be clearly defined with
the minutest of the details in DDS.

Stage 4: Building or Developing the Product

In this stage of SDLC the actual development starts and the product is built. The programming
code is generated as per DDS during this stage. If the design is performed in a detailed and
organized manner, code generation can be accomplished without much hassle.

Developers must follow the coding guidelines defined by their organization and programming
tools like compilers, interpreters, debuggers, etc. are used to generate the code. Different high
level programming languages such as C, C++, Pascal, Java and PHP are used for coding. The
programming language is chosen with respect to the type of software being developed.

Stage 5: Testing the Product

This stage is usually a subset of all the stages as in the modern SDLC models, the testing
activities are mostly involved in all the stages of SDLC. However, this stage refers to the testing
only stage of the product where product defects are reported, tracked, fixed and retested, until the
product reaches the quality standards defined in the SRS.

Stage 6: Deployment in the Market and Maintenance

Once the product is tested and ready to be deployed it is released formally in the appropriate
market. Sometimes product deployment happens in stages as per the business strategy of that
organization. The product may first be released in a limited segment and tested in the real
business environment (UAT- User acceptance testing).

Then based on the feedback, the product may be released as it is or with suggested enhancements
in the targeting market segment. After the product is released in the market, its maintenance is
done for the existing customer base.

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SDLC Models

There are various software development life cycle models defined and designed which are
followed during the software development process. These models are also referred as Software
Development Process Models". Each process model follows a Series of steps unique to its type
to ensure success in the process of software development.

Following are the most important and popular SDLC models followed in the industry −

 Waterfall Model
 Iterative Model
 Spiral Model
 V-Model
 Big Bang Model
 Other related methodologies are Agile Model, RAD Model, Rapid Application
Development and Prototyping Models.

Waterfall Model

Information:
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The Waterfall Model was the first Process Model to be introduced. It is also referred to as a
linear-sequential life cycle model. It is very simple to understand and use. In a waterfall model,
each phase must be completed before the next phase can begin and there is no overlapping in the
phases.

The Waterfall model is the earliest SDLC approach that was used for software development.

The waterfall Model illustrates the software development process in a linear sequential flow.
This means that any phase in the development process begins only if the previous phase is
complete. In this waterfall model, the phases do not overlap.

Waterfall Model - Application

Every software developed is different and requires a suitable SDLC approach to be followed
based on the internal and external factors. Some situations where the use of Waterfall model is
most appropriate are −

• Requirements are very well documented, clear and fixed.

• Product definition is stable.

• Technology is understood and is not dynamic.

• There are no ambiguous requirements.

• Ample resources with required expertise are available to support the product.

• The project is short.

Conclusion

We have successfully studied System Development Life Cycle, models of SDLC and Waterfall
model.

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Tutorial 4
Enterprise Resource Planning and Oracle NetSuite Software

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Aim: To Study the Enterprise Resource Planning

Enterprise Resource Planning

Enterprise resource planning (ERP) is the integrated management of main business processes,
often in real time and mediated by software and technology. ERP is usually referred to as a
category of business management software—typically a suite of integrated applications—that an
organization can use to collect, store, manage, and interpret data from many business activities.

ERP provides an integrated and continuously updated view of core business processes using
common databases maintained by a database management system. ERP systems track business
resources—cash, raw materials, production capacity—and the status of business commitments:
orders, purchase orders, and payroll. The applications that make up the system share data across
various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.
ERP facilitates information flow between all business functions and manages connections to
outside stakeholders.

Enterprise system software is a multibillion-dollar industry that produces components supporting

a variety of business functions. IT investments have, as of 2011, become one of the largest
categories of capital expenditure in United States-based businesses. [citation needed] Though
early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP
systems.

The ERP system integrates varied organizational systems and facilitates error-free transactions
and production, thereby enhancing the organization's efficiency. However, developing an ERP
system differs from traditional system development. ERP systems run on a variety of computer
hardware and network configurations, typically using a database as an information repository.

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Characteristics

ERP systems typically include the following characteristics:

 An integrated system
 Operates in (or near) real time
 A common database that supports all the applications
 A consistent look and feel across modules
 Installation of the system with elaborate application/data integration by the Information
Technology (IT) department, provided the implementation is not done in small steps
 Deployment options include: on-premises, cloud hosted, or SaaS

Benefits

 ERP creates a more agile company that adapts better to change. It also makes a company
more flexible and less rigidly structured so organization components operate more
cohesively, enhancing the business—internally and externally.
 ERP can improve data security in a closed environment. A common control system, such
as the kind offered by ERP systems, allows organizations the ability to more easily
ensure key company data is not compromised. This change, however, with a more open
environment, requiring further scrutiny of ERP security features and internal company
policies regarding security.
 ERP provides increased opportunities for collaboration. Data takes many forms in the
modern enterprise, including documents, files, forms, audio and video, and emails. Often,
each data medium has its own mechanism for allowing collaboration. ERP provides a
collaborative platform that lets employees spend more time collaborating on content
rather than mastering the learning curve of communicating in various formats across
distributed systems.
 ERP offers many benefits such as standardization of common processes, one integrated
system, standardized reporting, improved key performance indicators (KPI), and access
to common data. One of the key benefits of ERP; the concept of integrated system, is
often misinterpreted by the business. ERP is a centralized system that provides tight

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integration with all major enterprise functions be it HR, planning, procurement, sales,
customer relations, finance or analytics, as well to other connected application functions.
In that sense ERP could be described as "Centralized Integrated Enterprise System
(CIES)”

Disadvantages

 Customization can be problematic. Compared to the best-of-breed approach, ERP can be

seen as meeting an organization's lowest common denominator needs, forcing the
organization to find workarounds to meet unique demands.
 Re-engineering business processes to fit the ERP system may damage competitiveness or
divert focus from other critical activities.
 ERP can cost more than less integrated or less comprehensive solutions.
 High ERP switching costs can increase the ERP vendor's negotiating power, which can
increase support, maintenance, and upgrade expenses.
 Overcoming resistance to sharing sensitive information between departments can divert
management attention.
 Integration of truly independent businesses can create unnecessary dependencies.
 Extensive training requirements take resources from daily operations.
 Harmonization of ERP systems can be a mammoth task (especially for big companies)
and requires a lot of time, planning, and money.
 Critical challenges include disbanding the project team very quickly after
implementation, interface issues, lack of proper testing, time zone limitations, stress,
offshoring, people's resistance to change, a short hyper-care period, and data cleansing.

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Basic Modules of ERP

Depending on organizations’ needs required components are integrated & a customized ERP
system is formed. All the below-mentioned modules can be found in an ERP system:

 Human Resource
 Inventory
 Sales & Marketing
 Purchase
 Finance & Accounting
 Customer Relationship Management (CRM)
 Engineering/ Production
 Supply Chain Management (SCM)

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Management Information System

Human Resource Module (HR)

The human Resource module helps the HR team for efficient management of human resources.
HR module helps to manage employee information, track employee records like performance
reviews, designations, job descriptions, skill matrix, time & attendance tracking. One of the
important submodules in the HR module is Payroll System which helps to manage salaries,
payment reports, etc. It can also include Travel Expenses & Reimbursement tracking. Employee
Training tracking can also be managed by ERP.

Inventory Module

An inventory module can be used to track the stock of items. Items can be identified by unique
serial numbers. Using that unique numbers inventory system can keep track of items and trace
their current location in the organization.

Sales Module

Typical sales process includes processes like Sales queries & inquiry analysis & handling,
quotation drafting, accepting sales orders, drafting sales invoices with proper taxation,
dispatch/Shipment of material or service, tracking pending sales orders. All these sales
transactions are managed by the sales module of ERP. CRM module can take the help of the
Sales module for future opportunity creation & lead generation.

Purchase Module

As the name indicates, purchase modules take care of all the processes that are part of the
procurement of items or raw materials that are required for the organization. The purchase
module consists of functionalities like supplier/vendor listing, supplier & item linking, sending
quotation requests to vendors, receiving & recording quotations, analysis of quotations,
preparing purchase orders, tracking the purchase items, preparing GRNs (Good Receipt Notes) &
updating stocks & various reports. Purchase module is integrated with Inventory module &
Engineering/production module for updating of stocks.

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Management Information System

Finance & Accounting module

The whole inflow & outflow of money/capital is managed by the finance module. This module
keeps track of all account-related transactions like expenditures, Balance sheets, account ledgers,
budgeting, bank statements, payment receipts, tax management, etc. Financial reporting is an
easy task for this module of ERP. Any Financial data that is required for running the business is
available with one click in Finance module.

Customer Relationship Management (CRM) module

CRM department is helping to boost the sales performance through better customer service &
establishing a healthy relationship with customers. All the stored details of the customer are
available in the CRM module. CRM module helps to manage & track detailed information of the
customer like communication history, calls, meetings, details of purchases made by the
customer, contract duration, etc. CRM module can be integrated with the Sales module to
enhance sales opportunities.

Engineering / Production module

The production module is a great help for the manufacturing industry in delivering the product.
This module consists of functionalities like production planning, machine scheduling, raw
material usage, (Bill of material) preparation, track daily production progress production
forecasting & actual production reporting.

Supply Chain Management (SCM)

SCM module manages the flow of product items from manufacturer to consumer & consumer to
manufacturer. Common roles involved are a manufacturer, Super Stockiest, Stockiest,
distributors, retailers, etc. SCM involves demand & supply management, sales returns &
replacing process, shipping & transportation tracking, etc.

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Management Information System

NetSuite ERP Software

NetSuite ERP is a complete, scalable cloud ERP solution targeted at high-growing, mid-sized
businesses and large enterprises. It automates front- and back-office processes including:
financial management, revenue management, fixed assets, order management, billing, and
inventory management. In such way, it provides the entire organization from the top
management to the key clerical staff a customizable view of key performance indicators and
reports for their role.

What makes NetSuite ERP a leader in its industry is the smartly executed combination between
financial management operations and built-in business intelligence, thanks to which companies
make data-driven and well-informed decisions. The platform also excels in accelerating order-to-
cash processes with a robust and well-connected order management suite, where each sales and
fulfillment operation is tied to pricing. NetSuite will also surprise you with best-in-class
production management features and leverage full visibility into your production workflows, so
that you can place products on the market efficiently and in time.

Warehouse administration is another distinctive advantage, as you can manage your inventory
end-to-end, and have fulfillment data updated on a regular basis. The best part of the process is
that NetSuite ERP manages all your inbound/outbound logistics while reducing the total cost of
ownership. In the meantime, it will also make your procure-to-pay processes more accurate, and
make sure you’ve optimized the value of your human capital with integrated HCM features.

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Management Information System

The same as other NetSuite products, the compact ERP suite comes with a very flexible pricing
scheme, where each user gets a package tailored to his exact needs. It will support your growth
efforts on a price you can afford, and work seamlessly with all other products in your
productivity suite to minimize your software investments. Before you make a decision, you can
also subscribe for a free product tour and examine first-hand what this product can do for you.

Overview of NetSuite ERP Benefits

Billed the world’s no. 1 Financial Management solution

NetSuite accounting software is used by thousands of companies for their accounting needs, such
as: financial close; strong expense management; streamlined and auditable revenue management;
and complete real-time visibility of critical information related to the company’s financial
performance. At the same time, NetSuite accounting software integrates seamlessly with other
NetSuite software like order management, inventory, CRM, and e-commerce functions.

Complete visibility of your supply chain

Get a complete set of inventory management, manufacturing, and purchasing features for a more
efficient supply chain that delivers an end-to-end, procure-to-pay process. Likewise, get an
insightful, real-time look at key supplier, inventory and procurement indicators. Other notable
features of this module include: self-service capabilities for partners; and improved collaboration
between vendors and customer throughout the supply network.

Fast track quote-to-quote process

Manual data input not only slows your operations down; it also increases the chances of mistakes
in computations. By using NetSuite ERP’s order and billing management module, you can easily
bring your sales, finance, and fulfillment operations together for a more efficient workflow. In
turn, you can improve quote accuracy, reduce billing mistakes, and reinforce revenue
recognition. Moreover, you can accelerate the order-to-cash process by automating your
approval, invoicing, and payment management responsibilities.

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Streamline fulfillment flow and keep customers happy

Customer, order, invoice, and shipping information are centralized to help reduce fulfillment
errors and avoid costs of reconciling shipping information. This module integrates with top
shipping carriers (ex. FedEx and UPS) to help you manage your shipping needs, such as updated
shipping rates and order processing costs, within NetSuite.

Conclusion

I have successfully studied Enterprise Resource Planning. I have completed a overview study of
NetSuite Software by Oracle as a example of ERP Software.

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