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The School of Management & Entrepreneurship

Masters of Business Administration

(MBA)

PROJECT

MANAGEMENT INFORMATION SYSTEM

TOPIC

MIS OF KFC

SEMESTER-1 BLOCK -2 (2014)

Module Leader

MISS RICHA AGARWAL

Submitted by:

Ritika Yadav

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Acknowledgement:

To work on this project was one of the best experience i could ever had. The immense help

and support received from the respondents from College Faculty overwhelmed me during the

project.

I also thank Auro University for their constant support and guidance. I would like to express

my sincere gratitude to Miss Richa Agarwal because without her help this project would not

be possible and who has sincerely supported me with the valuable insights into completion of

this project.

I also thank our library where it was possible for me to refer different kinds of book

Finally, I express my intense gratitude to my parents whose blessings help me to translate

my efforts into fruitful achievement.

Thank You

Ritika Yadav

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INDEX

Sr.No Table of contents Page No.

1 Introduction to Management Information System(MIS) 1

2 Advantages of MIS 4

3 Disadvantages of MIS 6

4 Introduction to Company(KFC) 7

5 History of company 8

6 Introduction to Enterprise resource planning (ERP) 10

7 Objectives of ERP 12

8 Advantages of ERP 13

9 Disadvantages to ERP 15

10 What does ERP include 16

11 Function of ERP 19

12 KFC before and after implementing ERP 21

RECOMMEDATION AND CONCLUSION 22

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EXECUTIVE SUMMARY

It has been immensely founded that Management information system(MIS) is an very

important part of any organization,even a small or big organization needs MIS in their

working.MIS makes the organization very systematic and orderly.ERP-Enterprise Resource

Planning is a part of MIS which is followed by KFC.Here there is a deep study done on MIS

system of KFC so that through this research we can have a glance on how MIS is useful in

any firm. ERP is the new invention of Information technology in which experts make the

system for integration of all business processes. Enhancing the customer relationship

management is a main feature coming under the core objectives of ERP. The new web-based

system enables quicker generation of inventory,saled and revenue reports-going from 1hour

to 20minutes.This helps the KFC management to make more accurate and quicker decisions

in response to demand changes. With ERP, business can better control over its billing

to customers and receivables. With the ability to automate processes. It provides better

operational, financial and accounting control over its billing operations and receivables.ERP

system can be used for accomplish every task by integrating the information system, seamless

flow of information across every department . It is helpful to make automation of every

business process. systems are more secure as centralized security policies can be applied to

them. All the transactions happening via the ERP systems can be tracked. There are various

modules in an ERP system like Finance/Accounts, Human Resource Management,

Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management, CRM, Project

Management, etc.Thus this project has an deep understanding of the ERP system and its

working in KFC.For any proper working and maintaining of the firm it is mandatory to

follow the MIS so that it works easily without any complexion.

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Management Information System (MIS)

A management information system (MIS) provides information that organizations require to

manage themselves efficiently and effectively. Management information systems are

typically computer systems used for managing. The six primary components of an MIS are:

1. Hardware

2. Software

3. Firmware

4. Data (information for decision making),

5. Procedures (design,development and documentation)

6. People (individuals, groups, or organizations).

Management information systems are distinct from other information systems in that they are

used to analyze and facilitate strategic and operational activities.

Academically, the term is commonly used to refer to the study of how individuals, groups,

and organizations evaluate, design, implement, manage, and utilize systems to generate

information to improve efficiency and effectiveness of decision making, including systems

termed decision support systems, expert systems, and executive information systems. Many

business schools (or colleges of business administration within universities) have an MIS

department, alongside departments of accounting, finance, management, marketing, and may

award degrees (at undergrad, masters, and PhD levels) in MIS.

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Terms In Management Information System (MIS)

The terms Management Information System (MIS), information system, Enterprise Resource

Planning (ERP), and information technology management are often confused.Information

technology management concerns the operation and organization of information technology

resources independent of their purpose.

Most management information systems specialize in particular commercial and industrial

sectors, aspects of the enterprise, or management substructure.

Management information systems, produce fixed, regularly scheduled reports based on

data extracted and summarized from the firm‘s underlying transaction processing

systems to middle and operational level managers to identify and inform structured and

semi-structured decision problems.

Decision Support Systems (DSS) are computer program applications used by middle and

higher management to compile information from a wide range of sources to support

problem solving and decision making. A DSS is used mostly for semi-structured and

unstructured decision problems.

Executive Information Systems (EIS) is a reporting tool that provides quick access to

summarized reports coming from all company levels and departments such as accounting,

human resources and operations.

Marketing Information Systems are Management Information Systems designed

specifically for managing the marketing aspects of the business.

Office Automation Systems (OAS) support communication and productivity in the

enterprise by automating workflow and eliminating bottlenecks.OAS may be

implemented at any and all levels of management.

School Information Management Systems (SIMS) cover school administration,and often

including teaching and learning materials.

Enterprise Resource Planning facilitates the flow of information between all business

functions inside the boundaries of the organization and manage the connections to outside

stakeholders.

Enterprise Application

Enterprise systems—also known as enterprise resource planning (ERP) systems—provide

integrated software modules and a unified database that personnel use to plan, manage,

and control core business processes across multiple locations. Modules of ERP systems

may include finance, accounting, marketing, human resources, production, inventory

management, and distribution.

Supply chain management (SCM) systems enable more efficient management of the

supply chain by integrating the links in a supply chain. This may include suppliers,

manufacturers, wholesalers, retailers, and final customers.[7]

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Customer relationship management (CRM) systems help businesses manage relationships

with potential and current customers and business partners across marketing, sales, and

service.[8]

Knowledge management system (KMS) helps organizations facilitate the collection,

recording, organization, retrieval, and dissemination of knowledge. This may include

documents, accounting records, unrecorded procedures, practices, and skills. Knowledge

management (KM) as a system covers the process of knowledge creation and acquisition

from internal processes and the external world. The collected knowledge is incorporated

in organizational policies and procedures, and then disseminated to the stakeholders.[9]

Developing Enterprise System

Conversion is the process of changing or converting the old system into the new. This can be

done in three basic ways, though newer methods (prototyping, Extreme Programming, JAD,

etc.) are replacing these traditional conversion methods in many cases:

Direct cut – The new system replaces the old at an appointed time.

Pilot study -– Introducing the new system to a small portion of the operation to see how it

fares. If good then the new system expands to the rest of the company.

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ADVANTAGES OF MIS

The following are some of the benefits that can be attained using MIS‘s.

Companies are able to identify their strengths and weaknesses due to the presence of

revenue reports, employees' performance record etc. Identifying these aspects can help a

company improve its business processes and operations.

Giving an overall picture of the company.

Acting as a communication and planning tool.

The availability of customer data and feedback can help the company to align its business

processes according to the needs of its customers. The effective management of customer

data can help the company to perform direct marketing and promotion activities.

MISs can help a company gain a competitive advantage. Competitive advantage is a

firm‘s ability to do something better, faster, cheaper, or uniquely, when compared with

rival firms in the market.

It Facilitates planning : MIS improves the quality of plants by providing relevant

information for sound decision - making . Due to increase in the size and complexity of

organizations, managers have lost personal contact with the scene of operations.

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In Minimizes information overload : MIS change the larger amount of data in to summarized

form and there by avoids the confusion which may arise when managers are flooded with

detailed facts.

MIS Encourages Decentralization : Decentralization of authority is possibly when there is a

system for monitoring operations at lower levels. MIS is successfully used for measuring

performance and making necessary change in the organizational plans and procedures.

It brings Co ordination : MIS facilities integration of specialized activities by keeping each

department aware of the problem and requirements of other departments. It connects all

decision centers in the organization.

It makes control easier : MIS serves as a link between managerial planning and control. It

improves the ability of management to evaluate and improve performance . The used

computers has increased the data processing and storage capabilities and reduced the cost

MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information.

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DISADVANTAGES OF MIS

Depending on organization deployment, usage and extraneous factors, some

disadvantages related to Management Information Systems can come to the fore.

Allocation of budgets for MIS upgrades, modifications and other revisions can be

quite tricky at times.

If budgets are not allocated uniformly or as per immediate requirements, key

functionalities might get effected and benefits might not be realized consistently.

Integration issues with legacy systems can affect the quality of output and vital

business intelligence reports.

Constant Monitoring Issues.

Change in management, exits or departures of department managers and other senior

executives has a broad effect on the working and monitoring of certain organization

practices including MIS systems. Since MIS is a critical component of an

organization's risk management strategy and allied systems, constant monitoring is

necessary to ensure its effectiveness.

Quality of inputs into MIS needs to be monitored; otherwise consistency in the quality

of data and information generated gets effected.

Managers are not able to direct business, operational and decision-making activities

with the requisite flexibility.

:

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Introduction to KFC

Kentucky Fried Chicken is one of the leading fast food Franchise concepts of today;present in

a variety of countries around the world and has been proficient to launch a renowned

International reputation in multiple continents. Starting in the United States in the 1930s, it

has grown to become a true multi-domestic company. KFC has focused on foreign markets

since the 1960s and has initiated a new challenge today in conquering Asia.

KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in

Louisville,Kentucky.

In the midst of the depression, Harland Sanders who was born just outside Henryville(

Indiana), opens his first restaurant in the small front room of a gas station in Corbin,

Kentucky.

• The target customer of KFC [upper, middle and above] are health conscious and hence to

cater to their interest Kentucky fried Chicken changed its name to KFC.

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HISTORY OF KFC

KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from

his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified

the potential of restaurant franchising, and the first "Kentucky Fried Chicken" franchise

opened in Salt Lake City, Utah in 1952. KFC popularized chicken in the fast-food industry,

diversifying the market by challenging the established dominance of the hamburger. By

branding himself "Colonel Sanders", the founder became a prominent figure of American

cultural history, and his image remains widely used in KFC advertising. The company's rapid

expansion saw it grow too large for Sanders to manage, and in 1964 he sold the company to a

group of investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first fast-food chains to expand internationally, opening outlets in

England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC

experienced mixed success domestically, as it went through a series of changes in corporate

ownership with little or no experience in the restaurant business. In the early 1970s, KFC was

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sold to the spirits distributor Heublein, which was taken over by the R.J. Reynolds food and

tobacco conglomerate, which later sold the chain to PepsiCo. The chain continued to expand

overseas, and in 1987 KFC became the first Western restaurant chain to open in China.

In 1997, PepsiCo spun off its restaurants division as Tricon Global Restaurants, which

changed its name to Yum! Brands in 2002. Yum has proved a more focused owner than

Pepsi, and although KFC's number of outlets have declined in the US, the company has

continued to grow in Asia, South America and Africa. The chain has expanded to 18,875

outlets across 118 countries and territories, with 4,563 outlets in China alone, KFC's largest

market.

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Enterprise resource planning (ERP)

Enterprise resource planning (ERP) is a business management software—usually a suite of

integrated applications—that a company can use to collect, store, manage and interpret data

from many business activities, including:-

Product planning, cost

Manufacturing or service delivery

Marketing and sales

Inventory management

Shipping and payment

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ERP provides an integrated view of core business processes, often in real-time, 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 the 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 multi-billion dollar industry that produces components that

support a variety of business functions. IT investments have become the largest category of

capital expenditure in United States-based businesses over the past decade. Though early

ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.

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OBJECTIVES OF ERP

ERP or enterprise resource planning is a commonly used software package for

enhancing the operational efficiency of business resources. It is a composition of

software modules assisting company owners to achieve their goals at a faster rate.

Implementation of ERP for an organization is done on the basis of company

requirements. Today, ERP is a widely applied software system in all types of

industrial fields including small and medium sized companies. Inventory control,

better human capital management, customer relationship management and order

tracking are some among the key benefits of implementing enterprise resource

planning. Proper implementation of ERP package according to business needs is

benefited with lots of advantages. Before implementing ERP software, it is advised to

do well research on specific field. Choosing the right ERP software package from a

well reputed vendor ensure safety. Now, let's see in detail the core objectives of ERP.

Knowing real time information about business field strategies is one of the core

objectives of ERP. ERP software package, which is a blend of software modules helps

in integrating data and real time information. It helps in better planning and

management of resources as per the requirements of company. Upgrading the needed

software modules, better work flow and improved efficiency are some of the

important benefits of using ERP system. It is found to be very efficient in controlling

and managing organizations at different locations. At present ERP is an essential tool

package used by many of the multinational companies for achieving their long term

goals. Return on investment, best known as ROI is another core objective of ERP.

Proper implementation of ERP package assists professionals to gain more profit by

utilizing available resources. It is a perfect tool adopted by company owners for

delivering desired output at affordable cost.

In order to compete and win in today's global market field, better management of

resources is an important criterion. Implementation of ERP controls different

functions and enhance company efficiency. Latest technologies equipped with in ERP

software package helps in better controlling and management of data. If

implementation of ERP is done according to company goals, it assures you more

return on investment. Before planning project, it is advised to design the project in a

realistic approach. This helps employees in maximizing ROI in practical. Reducing

inventory cost is another core objective of ERP implementation. Better order tracking,

knowing customer needs and business requirements by ERP assists in proper

utilization and management of resources. It enhances operational process and

maximizes the return on investment rates.

Enhancing the customer relationship management is a main feature coming under the

core objectives of ERP. It increases the quality of services, shortens delivery times

and enhances the performance rate offered by companies. Error controlling is another

core objective behind ERP implementation in an organization. It helps in better

planning and coordination of business resources so as to achieve maximum profit.

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Advantages of ERP (Enterprise Resource Planning) System:

In order to understand computer networks better, it would be helpful to have an overview of

the applications running on the network. ERP or Enterprise Resource Planning is an

important enterprise application that integrates all the individual department functions into a

single software application.

ERP Systems make it easier to track the workflow across various departments. They reduce

the operational costs involved in manually tracking and (perhaps) duplicating data using

individual & disparate systems. In this article, let us have a look at the advantages and dis-

advantages of implementing ERP (Enterprise Resource Management) Software Systems.

1. Complete visibility into all the important processes, across various departments of an

organization (especially for senior management personnel).

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2. Automatic and coherent workflow from one department/function to another, to ensure a

smooth transition and quicker completion of processes. This also ensures that all the inter-

departmental activities are properly tracked and none of them is ‗missed out‘.

3. A unified and single reporting system to analyze the statistics/status etc. in real-time,

across all functions/departments.

4. Since same (ERP) software is now used across all departments, individual departments

having to buy and maintain their own software systems is no longer necessary.

5.Certain ERP vendors can extend their ERP systems to provide Business

Intelligencefunctionalities, that can give overall insights on business processes and identify

potential areas of problems/improvements.

6. Advanced e-commerce integration is possible with ERP systems – most of them can

handle web-based order tracking/ processing.

7. There are various modules in an ERP system like Finance/Accounts, Human Resource

Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management,

CRM, Project Management, etc.

8. Since ERP is a modular software system, its possible to implement either a few modules

(or) many modules based on the requirements of an organization. If more modules

implemented, the integration between various departments may be better.

9. Since a Database system is implemented on the backend to store all the information

required by the ERP system, it enables centralized storage/back-up of all enterprise data.

10. ERP systems are more secure as centralized security policies can be applied to them. All

the transactions happening via the ERP systems can be tracked.

12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP

system through an API (Application Programing Interface).

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Disadvantages of ERP (Enterprise Resource Planning) Systems:

1. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to

get completed and fully functional.

2. Too little customization may not integrate the ERP system with the business process & too

much customization may slow down the project and make it difficult to upgrade.

3. The cost savings/payback may not be realized immediately after the ERP implementation

& it is quite difficult to measure the same.

4. The participation of users is very important for successful implementation of ERP projects

– hence, exhaustive user training and simple user interface might be critical. But ERP

systems are generally difficult to learn (and use).

5. There maybe additional indirect costs due to ERP implementation – like new IT

infrastructure, upgrading the WAN links, etc.

6. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve.

Integrating ERP systems with other stand alone software systems is equally difficult (if

possible). These activities may consume a lot of time, money & resources, if attempted.

7. ERP implementations are difficult to achieve in decentralized organizations with disparate

business processes and systems.

8. Once an ERP systems is implemented it becomes a single vendor lock-in for further

upgrades, customizations etc. Companies are at the discretion of a single vendor and may not

be able to negotiate effectively for their services.

9. Evaluation prior to implementation of ERP system is critical. If this step is not done

properly and experienced technical/business resources are not available while evaluating,

ERP implementations can (and have) become a failure.

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What Does ERP Software Implementation Include?

For the small / medium-sized business, there are four distinct facets to an implementation,

and ignoring or short-cutting any of them can lead to a very unhappy user when all is said and

done:

1. Data migration

2. Business Consulting

3. Configuration

4. User Training

Data Migration

You don‘t want to manually key in your customers and part numbers. You also want your

new ERP system to have all your sales history in place. The good news is that, from a

technology perspective,migrating this information is usually not a problem. The bad news is

that it can usually be done quickly or correctly, but not both. To migrate data into a new

system optimally, allowing you to use the new system to it‘s potential, will usually entail

some data cleansing (or ―massaging‖) activities by both the software vendor and the end user.

Data migration is not a single-stage activity. You‘d want to migrate data ahead of time, to

sanity check and for training purposes (see later), and then again at point of go-live.

Business Consulting

The business processes and procedures that you‘ve developed while working with your entry-

level system (and probably some Excel spreadsheets to supplement it) may work well for you

at present – and of course you have a comfort level with familiar processes. But this may not

be the best way to operate once you have a more powerful business software tool at your

disposal. A good ERP Software Vendor will assist you in optimizing your processes to take

maximum advantage of the system, and eliminate procedural bottlenecks and / or duplication.

Configuration

Your new ERP system will be much more configurable than perhaps you‘re accustomed to.

The same system can behave quite differently (and even look and feel different) depending

on how it‘s set up. Getting the initial setup right is crucial to a smooth implementation. While

you should be guided by the vendor, you need to actively participate in this process to ensure

that what you ant to get out of the system is taken into account during setup. While many

configuration options can be changed / reversed even after you are live on the ERP system,

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by that time your hands will be full, and you may never get to making those changes. Do it

right the first time.

User Training

No matter how user-friendly a system is, users need training. I believe that in the small /

medium-sized business, there is no point training most end users until just a few days before

go-live. Otherwise most of the training is forgotten / wasted. A ―power user‖ or two should

be trained ahead of time, but most users should experience training and go-live as a single,

contiguous exercise. Users should only ever be trained on their actual (migrated) data, and

should be trained on any changes to business processes at the same time.

ERP and its function

After increasing the complexity in business process , ERP has become famous among

business community . If we have to define it in simple way.Then we can say that ERP is the

new invention of Information technology in which experts make the system for integration of

all business processes. For this, they utilize different software and hardware, with this all

process of business like , accounting , human resource , production and now marketing are

managed . Now , ERP whose full name is enterprise resource planning ( some says enterprise

resource processing ) is very scientific technique of Controlling whole business by co-

ordination of all information on shared data base . This technique was firstly introduced by

information technology research and advisory firm Gartner, Inc. in 1990

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Function of ERP

1. With ERP , business can better control over its billing to customersand receivables. With the

ability to automate processes. It provides better operational, financial and accounting control

over its billing operations and receivables.

2. ERP system can be used for accomplish every task by integrating the information system ,

seamless flow of information across every department . It is helpful to make automation of

every business process .

3. Because ERP works on IT's basic rules 'input -process-output ' , So it is also using as

management information system (MIS ) .

4. ERP treats the organisation as single entity and caters to the information needs of the whole

organisation because information is the key resource of every organisation to win the

competition . ERP system provides accurate , relevant and timeliness information to all

department on one software system .

5. Main function of ERP system and softwares is to provide information updated and on real

time.

6. In ERP,you can get answer of any query by its powerful query and filtering facility.

7. Now advance ERP softwares packages are providing the facility to manage import –export

8. ERP system can easily use in Government , healthcare , financial , retail and other service

sectors .

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Key Functions

1.EDI-(Electronic Data Interchange)

2.AMS-(Attendence Mointoring System)

3.CAD/CAM/CAE(Computer Aided Design/Computer Aided Manufacturing/Computer

Aided Engineering)

4.DMS-(Document Management System)

5.CMS(Communication management Systems)

6.SMS(Security Management System)

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KFC Before Implementing an ERP System:

KFC was using multiple IT solutions to address their business requirements.Because of

this,integrity of the reports became difficult to validate and management had a hard time

tracking down their stocks.

They became burdened by multiple data sources that didn‘t integrate.Lots of time and money

was lost from duplication of order entries and business processes throughout the outlets.

Numerous hours were being spent each month manually creating reports,tracking invoices

and handling payroll to provide the Head Office with their month end financial reports.

The reason behind these problems was evident:the systems could not communicate with one

another,

The KFC IT team updated KFC‘s Enterprise IT structure with JD Edwards EnterpriseOne

8.10 to be able to solve KFC‘s growing problem of mis-information and inaccurate reports.

KFC’s Implementation of an ERP System.

JD EDWARDS ENTERPRISEONE 8.10 offers both the foundation and operational

components,including:

Financial Management

Technical Foundation

Inventory Management

Asset Management

Forecasting

Workforce Management

Time and expense Management

Procurement

JD Edwards EnterpriseOne 8.10 benefits the company with the following:

Greater efficiencies-reducing duplicate data entry/maintaince

Standardizes business processes

Tracks and manages key data

Greater level of insight into how the business works

Enables to plan ahead

Provides business applications for now,and into the future

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CONCLUSIONS AND RECOMMEDATIONS

The proposed system will not be a different system but,an upgrade to the existing one.

After an evaluation of various ERP solutions,I came to conclusion that an upgrade to

JD Edwards EnterpriseOne 8.10 to JD Edwards EnterpriseOne 9.0 would be the best

choice.

ERP System is very much helpfull to the organization and also the management

becomes proper and maintaince becomes easy.

JD Edwards EnterpriseOne 9.0 includes enhancements for financial

management,supply chain management and humn resource management.The latest

release also includes industrt-specific caspalibilties for engineering and

construction,Food and beverages,commercial real estate,industrial manufacturing and

professional services.

The new web-based system enables quicker generation of inventory,saled and revenue

reports-going from 1hour to 20minutes.This helps the KFC management to make

more accurate and quicker decisions in response to demand changes.

The system also enables centralized data respository,XML-based integration with

other Applications.Also distribute formatted documents,results in saving on third

party software licensing costs.

The system supports the company to automate inter-company invoicing and business

workflows.

It helps ensuring consistency and enhancing operational efficiency.It potentially saves

20-30 addistional headcount to process these routine transactions

The system is user-friendly and there is ease in managing it.

It helps to save a lot of time and resource for deployment and training across various

countries.

Accounting module provides advanced projrct accounting integrated to an enterprise

general ledger to help deliver better data quality for enhanced compliance and

financial management and multiple options for expense allocation on projects.

Dynamic configuration capabilities enable sales and customer service representatives

to correctly enter sales order combinations comprised of products and service

offerings.

ERP incorporates customer-driven user interface improvements and adopts a

consistent Oracle standard to enhance productivity and improve the visual experience.

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BIBLIOGRAPHY

http://www.answers.com/Q/What_are_the_advantages_and_disadvantages_of_MIS

http://www.ehow.com/about_5494879_advantages-disadvantages-information-management-

systems.html

http://elogiboyau.centerblog.net/

http://www.sap.com/index.html

http://www.kfc.com/

http://www.oracle.com/us/corporate/press/017527_EN

http://it.toolbox.com/home/search/?r=jd+edwards