Unit 3 - Introduction to Enterprise Systems and Technologies Flashcards
What are transaction processing systems (TPS)?
Supports the monitoring, collection, storage and processing of data generated by each of the organization’s basic business transactions. The data is input to the organization’s database.
What are the major features of TPS?
Performance Availability Data integrity Ease of Use Modular Growth
Describe the relationship between TPS, MIS and DSS.
Management Information Systems build upon the data gathered from TPS systems and presents it to managers. Decision support systems then further build on that. We move up the hierarchy in the business.
What is an audit trail in transaction processing systems?
It is a file that contains the trail of anything that has happened to a specific record in the TPS.
What is an ERP system? How does an ERP system enforce best practices in an organization?
Adopts a business process view of the overall organization.
Integrates all departments and functions throughout an organization into a single information system so that employees can make enterprise-wide decisions by viewing enterprise wide information on all business operations
What is the relationship between ERP and information silos?
ERP Systems are meant to remove information silos in an organization.
Describe two main business processes supported by ERP systems.
Accounting, Manufacturing, Sales and Marketing, Finance, Human Resources.
FX payroll or inventory management
What are the costs and benefits of ERP systems?
Benefits:
Data sharing occurs in real time.
Implements integrated processes that are industry best practices.
More managers see more data, leading to better insight.
The information silo problem is solved.
Better integration with supply chain partners.
Costs:
Depends on the size and complexity of the software package, which is a function of the size of the firm
Includes new hardware required to run the system
Includes consultant and business analyst fees
Includes the time required for implementation (disruption of business)
Includes training costs (cost to develop and deploy training plus employees time away from their job)
What are the challenges of implementing ERP systems?
ERP vendor selection.
Gap analysis –identify differences between the business requirements and the capabilities of chosen ERP system.
Customization–Companies may need to change existing business processes to fit the predefined business processes of the software (best practices.)
Data definition and ownership issues.
Change management –Underestimating the complexity of the transition or cutover and training required to implement a new ERP system
