Management Information System

(Application of Cross functional systems into a Travel Agency)

Submitted To: Deepak Rauniyar Submitted by: Binod Maharjan Manisha Maharjan Nirayu Shakya Shristi Shakya

Enterprise Resource Planning

Enterprise Resource Planning is a cross-functional enterprise system that integrates and automates many of the internal business process of the company, particularly those within the manufacturing, logistics, distribution, accounting, finance and human resource functions of the

business. Thus, ERP serves as the vital backbone information system of the enterprise, helping a company achieve the efficiency, agility and responsiveness required to succeed in a dynamic business environment. ERP software typically consists of integrated modules that give a company a real-time cross-functional view of its core business processes, such as production, order processing, and sales, and its resources, such as cash, raw materials, production capacity and people. However, properly implementing ERP systems is a difficult and costly process that has caused serious business losses for some companies, who underestimated the planning, development and training that were necessary to re-engineer their business processes to accommodate their new ERP systems. However, continuing development in ERP software, including web enabled modules and e-business software suites, have made ERP more flexible and user-friendly, as well as extending it outward to a companys business partners.

Application of ERP in a Travel Agency

ERP gives a Travel agency an integrated real time view of its core business processes, such as Marketing, Accounting, Human Resources, and Finance, tied together by the ERP application software and a Travel Agencys database maintained by a database management system. ERP systems track business resources and the status of commitments made by the business, no matter which department has entered the data into the system. For a Travel Agency, ERP software suites typically consists of integrated modules of accounting, finance, human resource and marketing applications. Some of the sales and marketing processes supported by ERP are sales analysis, sales planning, and pricing analysis. ERP systems supports many vital human resource processes, from personnel requirements planning to salary and benefits administration and accomplish most required financial record keeping and managerial accounting applications.

Benefits of ERP
In a Travel Agency, ERP systems can generate significant overall business benefits. Some of the benefits are listed below: Facilitating communication: Even though there are facilities like intercom telephone and computer reservation in travel agency, the operations are eased with the intervention of enterprise resource planning. This tool helps to get the needed information at the right time and at the right place. Flowchart and ERP have a close resemblance. The added advantage of enterprise resource planning is that it enables individual departments to take the required actions independently. Doing away with obsolete process and information:

Enterprise Resource planning systems helps the travel agency to do away with age old practices and information. For example: in the case of ticket booking the reception of the agency has to enter the data in a computer and this information is directly communicated to the various other departments in the organization. Helps to decide rewards and performances: ERP has been instrumental in analyzing the contribution of a particular department or enterprise. Prior to ERP it was very difficult to make assessments on the basis of performance. ERP has helped the travel agents to know individual or organizational contribution by referring the particular parameter in the functional database. Helps greatly in designing expansions: Enterprise resource planning is the one phrase answer for organizations willing to modernize and expand their operations. This helps not only in carrying out the operations but right from planning them. When an organization goes for revamping it becomes necessary to disturb the existing business process. This will not be a condition once enterprise resource planning is implemented and run in a company. The business process can go on a normal course uninterruptedly. The restructuring process can take place simultaneously so that it does not get included in the companies that experience ERP failure. Quality and efficiency: ERP creates a framework for integrating and improving a travel agencys internal business processes that result in significant improvements in the quality and efficiency of customer service. Decision Support: ERP provides vital cross functional information on business performance to managers quickly to significantly improve their ability to make better decisions in a timely manner across the entire business enterprise. Enterprise Agility: Implementing ERP systems break down many former departmental and functional walls or silos of business processes, information systems and information resources. This results in more flexible organizational structures, managerial responsibilities, and work group roles, and therefore a more agile and adaptive organization and workforce that can more easily capitalize on new business opportunities.

Challenges of ERP in a Travel Agency

Though the benefits of ERP are many, the costs and risks are also considerable. The hardware and software cost are a small part of total cost and that the cost of developing new business processes (re-engineering) and preparing employees for the new system (Training and change management) make up the bulk of implementing a new ERP system. Converting data from previous legacy systems to the new cross-functional ERP system is another major category of ERP implementation costs.