Chapter 7 Flashcards
Define Enterprise resource planning (ERP)
a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization
-Its software that integrates various business processes and functions across different departments within an organization into a single system
What are the functions of an ERP system?
-Helps streamline and automate processes
What do ERP systems use to store and manage data from various departments, providing a unified view of information across the organization?
Centralised databases
What are modules?
They are applications used by ERP systems which are tailored to specific business functions, allowing users to access relevant information and perform tasks efficiently
What are the advantages of ERP
-Improved access to data for operational decision-making
-Elimination of costly, inflexible legacy systems
-Improvement of work processes based on best practices
-Upgrade of technology infrastructure
Define legacy systems
Legacy systems refer to outdated or older computer systems, software, or technologies that are still in use within an organization
What are the disadvantages of ERP?
-Expense and time in implementation
-Difficulty implementing change
-Difficulty integrating with other systems
-Risks in using one vendor
-Risk of implementation failure
List the tips for avoiding many common cases for failed ERP implementations
-Plan to spend a lot of time and money training people
-Assign a full time executive to manage a project
List the functions of a TPS
-Processes detailed data necessary to update records about fundamental business operations
-The systems include order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc.
-They provide data for other business processes such as Management information systems/decision support systems (MIS/DSS) and Special-purpose information systems
Define a batch processing system
Computerized processing in which business transactions are accumulated over some time and prepared for processing as a single unit or batch
Explain what Online Transaction Processing (OLTP) is
Computerized processing and gathering all data necessary to complete the processing of transactions
What do organizations expect their TPS to do?
-Process data generated by and about transactions
-Maintain a high degree of accuracy and integrity
-Avoid processing fraudulent transactions
-Produce timely user responses and reports
-Increase labour efficiency
-Help improve customer service
-Help build and maintain customer loyalty
-Achieve competitive advantage
List the Transaction processing activities
-Capture and process data that describes fundamental business transactions
-Update databases
-Produce a variety of reports
List the steps in the processing cycle
-Data collection
-Data editing
-Data correction
-Data manipulation
-Data storage
-Document production
Explain data collection
= Capturing and gathering all data necessary to complete the processing of transactions
Data collection can be:
Manual
Automated via special input devices (such as scanners, point-of-sale devices, and terminals)
Data should be:
-Collected at source
-Recorded accurately, in a timely fashion
Explain Data editing
Checking data for validity and completeness to detect any problems
Explain data correction
=Re-entering data that was not typed or scanned properly
-If invalid data is detected, the system should provide error messages
Define data manipulation and its activities
=Performing calculations and other data transformations related to business transactions
It can include the following:
-Classifying data
-Sorting data into categories
-Performing calculations
-Summarizing results
-Storing data in the organization’s database for further processing
Define document production
The process of generating output records, documents and reports
List the various TPS applications
-Sales processing
-Order processing
-Inventory management
-Payment processing
-Human Resource management
-Customer relationship management
-Supplier management
-Financial transactions
-Online Transaction processing
-Point of Sale Systems
Explain Sales processing
Systems that record sales transactions, update inventory levels, and generate invoices or receipts.
Explain Order processing
Applications that manage customer orders, track order status, and facilitate order fulfilment processes.
Explain payment processing
Systems responsible for processing payments, such as credit card transactions, billing customers, and reconciling accounts.
Explain inventory management
Software used to monitor inventory levels, track stock movements, and generate reorder notifications.
