CASA: ERPs (chapter 8) Flashcards
What problem does an ERP solve?
ERP systems solve silo problems
how do ERPs solve silo problems
ERP are very large enterprise IS that bring data together in a big database
help a company improve its processes
Two solutions (enterprise systems) to silo problem
ERP (Enterprise resource planning)
EAI (Enterprise application interface)
ERP (Enterprise resource planning)
solves silo problem with centralized approach
2 keys characteristics of ERP (Enterprise resource planning)
Creates a single database
Provide a set of industry-leading processes that are well integrated with each other
→e.g.: data from a new sales sent to to database & speeds the process of production & procurement of supplies
what is the advantage of create a single database?
by consolidating data, a company can avoid the problem of having multiple versions of the same thing
→e.g.: storing data about a customer in 2 silos and not knowing which customer data is correct
EAI (Enterprise application interface)
provides layers of software that connect information systems together
Major benefit: enables organizations to use existing applications while
alleviating many of the problems of information silos
how do EAIs (Enterprise application interface) provide layers of software that connect information systems together?
Connection information silos via a new layer of software
Enables existing applications to communicate and share data
Provides integrated data
Leverages existing systems, leaving departmental information systems as is, but
providing an integration layer over the top
Enables a gradual move to ERP
History of ERP Evolution
1970s: material requirement planning (MRP); managed inventory, production & labor
then, manufacturing resource planning (MRPI) added financial tracking capabilities, schedule equipment & facilities because computing power became cheaper
then, Just in time (JIT) delivery integrated manufacturing & supply (manufacturing occurs just as supply arrives)
five components of an ERP?
- software
- Hardware
- Data
- Procedures
- People
software
Typically resides on servers and on client machines in the company
Can be customized without changing code →customization = configuration
Hardware
disk storage
servers, clients
printers
scanners
network devices
cables
New hardware
cloud computing
cloud computing
enables ERP systems to be rented at much lower upfront cost
stored on cloud vendor hardware
paid for by use
three types of data
transactional data
master data
organizational data
Transactional data
combination of organizational data, master data, and situational data
Data that is specific to the task being executed, such as who, what, when, and where.
master data
represent entities associated with various processes
organizational data
used to represent the structure of an enterprise.
Procedures
set of instructions for a person to follow when operating an IS
Types of procedures
hiring procedures
production procedure
procurement
procedure
other procedures
steps of procedures
1st step: crafting procedure
2nd step: training employees to use procedure
3 categories of “people”
Users
IT Analysts “system analysts”
Consultant
Users
employees of the firm implementing the system
IT Analysts “system analysts”
also employees with specialized training/education
Consultant
works for the ERP Vendor called a third party
helps budget, plan, train, configure & implement the system
ERP Career opportunities
Consultant
Systems analyst
Developer
Project manager
Business analyst
Architect
Trainer
Client-Server Architecture
applications that consist of three layers contained in one system
Presentation Layer
Application Layer
Data Layer
Presentation Layer
how you interact with the application (using menus, typing, and selecting).
Application Layer
what the application allows you to do (create formulas or charts, compose an essay).
Data Layer
here the application stores your work (on your hard drive or flash drive).
benefits of the Client-Server Architecture
Reduced the costs of acquiring, implementing, and using an ES
Increased the SCALABILITY of the systems
how did Client-Server Architecture increase scability?
ability to support a greater number of users over time, t at a decreasing cost per user
Service-Oriented Architecture (SOA)
web-enabled three-tier applications that users can access through a communication protocol over a network, or Web services
companies could now integrate multiple client-server applications and create enterprise mash-ups, or composite applications
what do ERP systems focus primarily on?
focus primarily on intra-company processes
he operations that are performed within an organization
material types in material data
Raw materials (ROH)
Semi-finished goods (HALB)
Finished goods (FERT)
Trading goods (HAWA)
best example of ERP?
why?
SAP ERP
SAP covers different business process capabilities, called modules
what do SAP modules include?
Production planning (PP)
material management (MM)
sales and distribution (SD)
plant maintenance (PM)
project systems (PS)
quality management (QM)
financial accounting (FI)
management accounting/controlling (CO)
Human ressources (HR)
Business intelligence (BI
what are the inter-company systems supported by SAP?
Supply Chain Management (SCM)
Supplier Relationship Management (SRM)
Customer Relationship Management (CRM)
Product Lifecycle Management (PLM)
Supply Chain Management (SCM)
connects a company to other
companies that supply the materials it needs to make its products
Supplier Relationship Management (SRM)
systems that typically manage the overall relationships with the materials suppliers
Customer Relationship Management (CRM)
systems connect a company’s ERP system to those of its customers
Product Lifecycle Management (PLM)
ystems that help companies administer the processes of research, design, and product management
what is the name of the ERP system combining the inter-company systems?
the application suite
APPLICATION PLATFORMS
Enterprise operating systems which contain specifically tailored ES
3 elements of organizational data
- Client Code
- Company Code
- plant
Enterprise Systems (ES)
large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations
two types of enterprise systems architecture
Client-Server Architecture
Service-Oriented Architecture (SOA)
