This document discusses evaluation criteria for management information systems including ERP systems. It outlines factors to consider such as functionality, integration, flexibility, complexity, costs and customization needs. Additional sections provide guidelines for ERP product selection, critical success factors, potential benefits, and key performance indicators to expect from successful ERP implementations such as reduced lead times, improved customer satisfaction, lower quality costs and increased flexibility and information accuracy.

2. Management Information
Systems

3. Evaluation criteria
 Functional fit with the company’s business processes
 Degree of integration between various components of the
ERP system
 Flexibility and scalability
 Complexity
 User friendliness
 Implementation time
 Multi-site planning and control
 Technology – Client/server, database, security
 Amount of customization required
 Local support
 Total costs including costs of license, training,
implementation, maintenance, customization and
hardware requirements
1

4. ERP Product selection Criteria
1
Technology
Support
Costs
5 Strategic
Requirement
Levels
Functionality
Goal:
To select the
Most Suitable
Software
Package Solution
Vendor

5. ERP Success criteria
 The firm & optimistic approach of the
Management
- on adapting the ERP product driven methodologies
- on customization
- on monetary commitments
 The dedicated Team
 Good Training
 Strict adherence to the Project schedules
 Right technical infra-structure
 Change Management
1

6. ERP Benefits
 Easier access to reliable information
 Automate tasks to perform various
business functions
 Elimination of redundant data and
software packages
 Improved communication between
departments, internal and external
organizations
 Better capabilities of forecasting,
planning, scheduling, and control
1

7. Reduced Time
 Reduction of lead-time (Supplier Side)
◦ The elapsed time between placing an order and
receiving is known as the lead time.
 Reduction in cycle time (Customer Side)
◦ The time between receipt of the order and delivery of
the product
 On-time shipment
1

8. Improved Customer satisfaction
 Whether the product or service includes
the features that are most important to
the customer
 Whether the company can respond to
the customer’s demands in a timely
manner, a criterion that is especially
important for custom products and
services
 Whether the product or service is free of
defects and performs as expected
1

9. Reduction in quality costs
 Internal failures costs – costs of scrap, rework,
re-inspection and low production yields for non-
conforming items that are detected before they
leave the company
 External failure costs – Warranty claims, repairs
and service costs that are result when the
failures are detected in the market place
 Appraisal costs – costs of inspection on arrival,
during manufacturing, in laboratory tests, and
by outside inspectors
 Prevention costs – design and development of
new quality equipment, evaluation costs of a
new product or a service, training of quality
personnel
1

10. Improved resource utility
 The efficient functioning of the different
modules in the ERP ensures that
◦ the inventory is kept to a minimum level,
◦ the machine down time is minimum,
◦ the goods are produced only as per the
demand
◦ and the finished goods are delivered to the
customer in the most efficient way
 Thus, the ERP systems help the
organization in drastically improving the
capacity and resource utilization
1

11. Increased flexibility
 Flexibility of the organization as a
whole by automating most of the
processes
 Organizations will need to design
new products or redesign existing
products quickly and efficiently
 Product flexibility is the ability of
the operation to efficiently produce
highly customized and unique
products
1

12. Improved information accuracy and decision-
making capability
 To survive, thrive and beat the
competition in today’s competitive world,
one has to manage the future
 Managing the future means managing
the information
 organizations have to harness IT’s full
potential
◦ to deliver high quality information to the
decision-makers at the right time
◦ to automate the process of data collection,
collation and refinement
1

13. Campus Overview
907/A Uvarshad,
Gandhinagar
Highway, Ahmedabad –
382422.
Ahmedabad Kolkata
Infinity Benchmark, 10th
Floor, Plot G1,
Block EP & GP,
Sector V, Salt-Lake,
Kolkata – 700091.
Mumbai
Goldline Business Centre
Linkway Estate,
Next to Chincholi Fire
Brigade, Malad (West),
Mumbai – 400 064.

14. 1