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.