Chapter 8 Supporting Processes with ERP systems Flashcards
What problems is solved by ERP system? (2)
Silo problem and lack of intergration processes
What are ERP systems?
Large enterprise IS that bring data together in a big database and help company improve its processes. IS is designed to integrate processes by consolidating data
What are the 2 characteristics of ERP?
1)ERP system creates a single database (real time sharing of data)
2)Integrates process
Where does the ERP process consolidates the procurement of data for different departements?
Central database
What is material requirment planning (MRP)?
software used in the past for efficient inventory,production, labour and manufacturing ressource planning
What is the Sarbanes Oxley Act ?
Require companies to have greater control over financial processes
ERP product must include applications that integrate what 5 elements?
1)supply chain management
2)Manufacturing
3)Customer relationship management
4)HR
5)Accounting
What are the 5 components of ERP?
1)Software
2)Hardware
3)Data
4)Procedures
5)People
What are the characteristics of a software of an ERP? (3)
1) ERP software typically resides on servers on client’s machine
2)Can be customized
3)New code to supplement ERP system = customization
What are the characteristics of a hardware of an ERP?
disk storage, servers, clients, printers, scanners, network, cables
What are the characteristics of data of an ERP?
1)Include unpopulated database, database design and initial configuration data
2)No operational data
3)Rely on DBMS to process/administer ERP database
What are the 3 types of data?
1)Transactional data (related to event)
2)Master data (used in org, dont change)
3)Organizational data (info about company structure)
What are the characteristics of procedures of an ERP?
in every ERP, installation requires firm to select ERP process and then specify how those processes will be executed on the ERP software
require user training
What are the 3 categories of people in an ERP?
1)users (employees)
2)System analysts
3)third party (consultant)
What is the link between Inherent business processes and ERP?
ERP are more than IS, they specify inherent processes blueprints
What are the 5 steps to initially implement an ERP system?
1)Reexamine stratgey
2)Conduct gap analysis
3)Develop processes
4)COnfigure the ERP software
5)Install (+)
What are the 4 steps in step 5)Install in the installation of ERP system?
1)write procedures
2)Train users
3)train system
4)Go live
What is the reexamine strategy in the initial implementation of ERP?
Top managers of a company revisit their strategy so that the ERP system has clear goals
What is the gap analysis?
Study that highlights differences between business requirements and current situation
What does a functional test do?
Evaluate if system as it is configured for company to meet its requirements
What does a performance test do?
Ensures that system is able to accommodate expected workload
What are ERP upgrades?
Reoccurring activity design to improve functionality
What are the 3 types of ERP upgrades?
1)Minor (technical improving IT)
2)Middle (functional improving processes)
3)Major (full system - replace entire system)
What are the 6 benefits of an ERP system?
1)Data sharing occurs in real time
2)Implements integrated are industry best processes
3)More managerss see more data, leads to better oversight
4)Information silo problem solves
5)Better integration with supply chain partners (ez to exchange data)
6)Opportunity to create economies of scale after mergers
