Management

Information System
Report
On
KFC
of
Management Information System

Course code: - MGN-643

Submitted To: Dr. Sorokhaibam Khaba

Submitted By: 11507315 Shivam Mishra
11503480 Sagar Anand
11506136 Gaurav Singh
11507881 Divyank Rajput

EXECUTIVE SUMMARY
It has been immensely founded that Management information system (MIS) is a 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
customer 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 a 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.

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.

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
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.

 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.

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.

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 centres 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 have increased the data processing and storage capabilities and reduced the cost
MIS assembles, process, stores, Retrieves, evaluates and Disseminates the information.

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.

:
 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.
 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
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.
 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

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.

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
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).
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 Intelligence
functionalities, 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, it’s 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 Programming Interface).

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 may be 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 system 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.

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 want 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,
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
 Functions of ERP

1. 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.
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 Its 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 software’s 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 software’s packages are providing the facility to manage import –
export
 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/maintain

 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

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, we came to conclusion that an upgrade
to JD Edwards Enterprise One 8.10 to JD Edwards EnterpriseOne 9.0 would be the
best choice.
 ERP System is very much helpful to the organization and also the management
becomes proper and maintenance becomes easy.
 JD Edwards Enterprise One 9.0 includes enhancements for financial management,
supply chain management and human resource management. The latest release also
includes industry-specific capabilities for engineering and construction, Food and
beverages, commercial real estate, industrial manufacturing and professional services.
 The new web-based system enables quicker generation of inventorial 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 repository, 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 additional 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 project 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.