AIS Chapter 12: Accounting and Enterprise Software

methodology for measuring the value of an ERP

1. determine how you will measure success 2. set up specific metrics based on your industry 3. perform regular post implementation audits 4. analyze your performance numbers 5. set up universal processes 6. create a continuous learning loop 7. prepare for inevitable security failures

cost associated with implementing ERP systems

1. hardware 2. software 3. training 4. data conversion 5. interfaces and customization 6. professional services 7. reassigned employees 8. software maintenance 9. software upgrades

two important features of enterprise software and business application suites

1. integration 2. central database

indicators that a company needs a new AIS

1. late payment of vendor invoices 2. late deliveries to customers 3. growth in inventories 4. slowdown in inventory turnover 5. increased time in collecting on receivables 6. late periodic reports 7. increasing length of time to close out books at the end of a period 8. managers concerned about cash flows and financial picture of organization 9. manager complants about lack of info for decision making 10. owner worries about cash flows

factors in considering a software package

1. number of transactions a system can handle at any given time 2. scalability

the most critical factors in BPR

1. planning 2. high level review of current process 3. support from top management

three advantages of hosted solutions

1. processing is easily scalable 2. the host performs software maintenance, backup, and upgrades 3. programs and data are accessible anywhere, anytime

benefits associated with implementing an ERP system

1. reduced inventory investment 2. improves asset management 3. improved decision making 4. resolved data redundancy and integrity problems 5. increased flexibility and responsiveness 6. improved customer service and satisfaction 7. global and supply chain integration

the 4 components that form an ERP's architecture or technical structure

1. systems configuration 2. centralized database 3. application interfaces 4. internet portals

hosted solution

when software can be made available on a desktop computer through the internet

collaborative business partnerships

working with other businesses to increase power to meet customer demands

components of an ERP's architecture typically include: a. a centralized database and application interfaces b. internet portals and multiple database c. a centralized database running non mainframe computer d. business intelligence and multiple databases

a

portals

a gateway to other websites or services that enhances communication and productivity among employees, customers, partners, and suppliers

enterprise application integration (EAI)

allows companies with legacy applications and databases to integrate and continue to use those systems

spend management

an approach to cutting expenses to their bare minimum

enterprise mashups

are application hybrids combining content and functions from more than one existing source

internet connectivity

permits small businesses to create web sites and engage in e commerce

best of breed approach

the best product of its type (using different software for different functions)

scalable

the software can grow as the business grows

accounting and enterprise software can be expensive. which of the following is likely to be the highest cost associate with a new AIS? a. the cost of new hardware b. the cost of implementing and maintaining the new system c. the cost of the software d. the cost of converting old data for the new system

b

in selecting a new AIS, a company's manament should: a. always hire a consultant b. always consult with your accountant during the decision process c. never rely on you accountant for help in this decisions d. always use an internet software service to make the decision

b

mid level accounting software: a. can only be deployed through a server networked with desktop computers b. may be purchased in modules that match various business processes c. will not be appropriate for a multinational company because these programs cannot handle foreign currencies d. is generally inappropriate of a company operating in a specialized industry/ such as retail or not for profit

b

BI

business intelligence tools, they help managers analyze and report data form their CRM and other systems, creating strategic decisions based on underlying data

back office functions

business processes integrated by ERP that are primarily concerned with an enterprises internal system

low-end accounting software is increasingly complex and sophisticate. however, software costing only a few hundred dollars it not likely to: a. provide info to multiple stores where a company operates more than one b. include a chart of accounts that users may customize to suit their industry c. provide all the info needed to optimize customer and supplier relationships d. provide information for budgeting decisions

c

which of the following accounting software programs would be appropriate for small business? a. SAP b. quickbooks c. netsuite d. oracle

c

which of the following is a distinguishing characteristic of an enterprise wide (ERP) system? a. must be a hosted solution b. multiple databases c. integration of business functions d. low cost

c

within the context of ERP systems, a mashup is: a. a combination of several accounting systems b. the mess created when ERP systems fail to interface with legacy systems c. a web page that can combine data form two or more external sources d. the informal name given to annual ERP conferences

c

Integrated accounting software

can process all types of accounting transactions. these transactions include affecting accounts in both general and specific journals

mashup

combining multiple sources together!

CRM

customer relationship management, a collection of applications including databases, sales order and customer service systems, and financial packages

an organization will always need to upgrade to a new AIS if: a. a major competitor buys a new package b. customers complain about late deliveries c. the company wants to begin doing business over the internet d. none of the above are necessarily reasons to buy new accounting software

d

which of the following reasons might explain why a small business owner would hire a CPA firm or a software consultant to help select accounting software? a. to train employees to use the software b. to help the firm identify useful reports for decision making c. to help with rescue/recovery needs should a disaster occur d. all of the above

d

centralized database

database that store info about each data item just once and makes it immediately available to all functions in an organization

front office

external procedures of a company

enterprise software and business application suites

info systems that do more than process financial data

bolt-ons

integrating different software to form a program with one purpose

ERP?

is business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, cost. manufacturing or service delivery. marketing and sales

why do many small businesses not use accounting software?

it is not the cost but the time and effort in training that makes using software difficult

supply chain management (SCM)

management between suppliers and customers

change management

management employees, and other aspects of a business when implementing a change