ES Knowledge for Business Flashcards
What is an ES?
Any system/software used for business management.
What are the (IT Infrastructure Library) 6 phases for ERP implementation?
- Gather requirements phase
- Design phase (produces business blueprint)
- Build and test phase
- Deploy phase
- Operate phase
- Optimise phase
What is a business blueprint?
An output of the design phase that outlines the 4 data types for a new ERP system.
What are the 4 ERP data types?
- Organisational units/data (i.e the structure of business)
- Master Data
- BPs and transactions
- Reports
In SAP context, what is the structure of organisational data?
Client which has company codes.
Company codes have plants and plants have storage locations.
There is then a purchasing organisation (or procurement team) that is responsible for all procurement decisions.
And finally a purchasing group which is a smaller unit within procurement team that deals with procurement of specific products.
In SAP context, what is the main difference between client and a company code?
A client represents a business entity (e.g UCT) whereas a company code represents an independent unit within the entity with its own set of accounts (e.g GSB and UCT Main).
In SAP context, what is the difference between a plant and a storage location?
Plants are where goods are manufactured, stored or services rendered.
Storage locations are locations in a plant where specific items are stored (Think shelves but bigger).
What is the build and test phase in ERP implementation?
It is the buying, customising and configuration of an ERP system.
What are the disadvantages of extending an ERP system with own coding(programming) objects?
- Custom objects are not supported by ERP supplier
- Reduce company benefits from supplier developed packages (Divided software lifecycle)
- Dependency on programmers
Given that adding custom code(programming) objects to an ERP system has such cons, when is it ideal for a company to take this route?
- They have the budget for it
- Cannot redesign their business processes to align with what the ERP system provides.
What are the 4 cost categories when implementing an ERP?
- Hardware costs (e.g servers, networking, storage, etc)
- Software costs (e.g ERP procurement, operating systems, DMS, firewalls, etc)
- Implementation services costs (e.g consultants, training, project management, etc)
- Broader organisation costs (e.g Initial productivity loss, key employee time, etc)
What are the two benefits of adopting an ERP?
- Improved integration in the organisation
- Improved business processes (Main reason for adopting an ERP)
What are the 5 levels of integration that could be improved with an ERP?
- Application integration - fewer applications and interfaces
- Interface integration - A single consistent UI for users and developers
- Business Integration - Changes done in one business unit can be seen in real time in other business units.
- Data integration - One db across the organisation.
- Global integration - Support for different currencies, languages, and regulations (improves global transactions and reporting)
How can ERPs help in improving business processes?
- Automation of work practices
- Data integration & central storage and protection of data
- Business integration
- Built-in controls (e.g to enforce compliance and regulations - e.g how accounting is done)
- Allows for best practices for standard processes
What are the steps in SAP implementation?
- Project Preparation/Planning
- Blueprint
- Realisation
- Final prepration
- Go Live Support
- Run (ERP is now running)
NOTE how alignment with the generic 6 phases of IT Infrastructure Library.
