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Week 1 - This is a tutorial question of the week 1
Course: Enterprise Systems (ITECH5402)
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University: Federation University Australia
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TUTORIAL WEEK 1
ENTERPRISE SYSTEMS
Task 1: Discussion Question (Max 25 mins)
1. How is the role of an ERP system different from traditional TPS, MIS, DSS and
others? Can an ERP system support all levels of management?
ANS: ERP system is different from the traditional systems like MIS, TPS, DSS etc. as
it brings all the business process together in an enterprise. Thus, maintaining the
transactions occur one time at the source. It unites all departments, open
communication and all database into one accessible database. The traditional systems
like Transaction Processing System (TPS), Management Information System (MIS),
Decision Support System (DSS) and others, perform routine operations on a regular
basis and provides data to other systems but used to have limited support for decision
making. Whereas in ERP system decision making support is high. The ERP system in
an enterprise results in making information flow dynamic and immediate, resulting
the increment in its usefulness and value. TPS, MIS, DSS these all are types of
information system used in an organization in different level. In these systems the
information is isolated to particular system and hence if any information is needed, we
need to enter particular system to transfer data to the system. But in ERP system,
company uses to connect its business activities across departments, so everyone is
working with the same data and processes i.e. in ERP system there is a common
interface and terminology.
No ERP cannot support all levels of management, since it allows each level to utilize
information in customized manner. For example: upper-level management can only
utilize reports suited to their positions within an organization whereas operational
management can only utilize detailed reports for their specific functions. Each level
management have their own specific working area.
2. Discuss the evolution of information systems in an organization. How can the use of
ERP systems remove information or functional silos in organizations?
ANS: The evolution of information systems in an organization can be summarized as
follows:
a. 1950-1960- Data processing:
Collects stores, modifies and retrieve day to day transactions of an organization,
help workers.
b. 1960-1970- management reporting:
Pre-specified reports and displays to support business decision making, helps
middle managers.
c. 1970-1980- decision support:
Interactive ad-hoc support for the decision-making process, helps senior managers
d. 1980-1990- Executive support:
Provide both internal and external information relevant to the strategic goals of the
organization, helps executives
e. 1990-2000- Knowledge management:
