CIS 3380- Exam 2 Angelow

What is at the core of an ERP system?

Finance/accounting. set-up starts with financial module because processes that have financial implications need to be tracked

Major advantages of ERP system?

Organization flexibility and agility, decision support, quality and efficiency, no delays.

What provides the inputs in developing the IT strategic plan

Organizational strategic plan and the existing IT architecture

What is involved in Fullfillment processes?

Sales, Accounting, Warehouse

SDLC

Systems Development Life Cycle

What is the difference in ASP and SaaS

-Both focus on buy or lease software, not developed internally. -ASP company buys software and hosting service. stand alone. customer accesses the applications via the internet. hosts an application and database separate for each customer. -SAAS rents the application and hosting capability. all customers on same database so security on software is a concern. customers do not install and run app from their computer, they save money

Major advantages of cloud based ERP system

-Can be used anywhere w/ Internet access -Avoid the initial hardware/software expenses that are typical of on-premise implementations -Are scalable, meaning it is possible to extend ERP support to new business processes and new business partners (e.g., suppliers) by purchasing new ERP modules.

Purchasing the application

-Can operate "on premise" - means inside your company on your hardware -Operate "hosted" - another firm provides the computing hardware & infrastructure support

What are the main FAIS

-Financial Planning & Budgeting -Marketing -Supply Chain/Production -HR

Process of Vendor & Software selection

-Identify potential vendors. -Determine evaluation criteria. -Evaluate vendors and packages. -Choose the vendor and package. -Negotiate a contract. -Establish service-level agreements.

Exception Reports

-Include only information that falls outside certain threshold standards. -An exception report might identify only those cases where sales fell outside an established threshold -For example, more than 20 percent short of the quota.

Custom Development

-Internally develop the application based on your needs. -100% fit -most costly and resource intensive

How to evaluate and justify IT investment

-Look at costs- fixed and not fixed (most people forget about this one) -Assess benefits- more complex than assessing costs. difficult to quantify because they are intangible. they use IT for multiple purposes. -After you do this.. create Cost Benefit Analysis

Return on Investment (ROI)

-Measures management's effectiveness in generating profits with its available assets -ROI is calculated by dividing net income attributable to a project by the average assets invested in the project -ROI is a percentage, and the higher the percentage return, the better

Major disadvantages of cloud based ERP system

-Not clear whether cloud-based ERP systems are more secure than on-premise -Companies that adopt them sacrifice their control over a strategic IT resource -Lack of control over IT resources when the ERP system experiences problems

Lease the application

-Operate on premise or host it (ASP) -Use 80/20 Rule -SME like these

Routine Reports

-Produced at scheduled intervals -They range from hourly quality control reports to daily reports on absenteeism rates

Tools that augment development methods

-Prototyping -Integrated computer-aided software engineering (ICASE) -Component-based development -Object-oriented development

major limitations of ERP system?

-Since ERP's are based on best practices, companies may need to change their methods of achieving business objectives -ERP systems can be complex, expensive, and time-consuming to implement.

What are the six processes involved in the SDLC?

-Systems Investigation -Systems analysis -Systems Design -Programming & Testing -Implementation -Operation & Maintenance

Types of on premise implementations

-Vanilla, Custom, Best of Breed -Can separate in two ways: On premise and SaaS -First decide between On Premise or SaaS, then between Vanilla or Custom

IT strategic plan must meet 3 objectives

1. Be aligned w/ organization's strategic plan 2. Provide for an IT architecture that seamlessly networks users, applications, and databases 3. Efficiently allocate IS development resources among competing projects so the projects can be completed on time and within budget and still have the required functionality

Role of ES in organizations

1. Execute process- inform, provide data, complete steps, embedded in process, automation 2. Capture and store data- automatic capture, entered from outside system 3. Monitor process- instance level info (status), process level info (aggregate)

What are the consequences of delays?

1. Increased lead time / increased cycle time 2. Excess "JIC" inventory 3. Lack of visibility across process ex: where is my order? how is process doing?

What are the elements of a typical IS operational plan?

1. Mission 2. IS environment 3. Objectives & constraints of the IS Function 4. The application portfolio 5. Resource allocation and project management

Agile Development

A software development methodology that delivers functionality in rapid iterations, which are usually measured in weeks

Outsource

Acquiring IT applications from outside contractors or external organizations. purchase capabilities needed from another company

Definition of ERP system

Adopt a business process view of the overall organization to integrate planning, management, and use of all of an organization's resources, employing a common software platform and database

What is critical for success?

Aligning Business and Technology strategies

End-User Development

An organization's end users developing their own applications with little or no formal assistance from the IT department

2 options for acquiring Application Capabilities

Build -Internal development -Use a SDLC such as waterfall, RAD. JAD Buy -Purchase it (COTS), customize purchase app, lease- ASP & SaaS

What does ERP enable companies to do?

Business Information System (BIS) straight from one ERP system

Vanilla Approach

Change our business to math the ERP system. Don't change software, just go with it. Adapt to system.

What kind of company would want to use cloud based system

Companies that cannot afford to make large investments in IT, yet which already have relatively structured business processes that need to be tightly integrated

Net Present Value

Converts future values of benefits to their present-value equivalent by "discounting" them at the organization's cost of funds. They can then compare the present value of the future benefits to the cost required to achieve those benefits to determine whether the benefits exceed the costs

IT Steering Committee

Decides which project we work on. created to establish IT priorities and to ensure that the MIS function is meeting the organization's need Major tasks: 1. link corporate strategy with IT strategy 2. approve the allocation of resources for the MIS function 3. establish performance measures for the MIS function and ensure they are met

Breakeven Analysis

Determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project

What are the fundamental decisions in acquiring IT?

Do this after the company has justified an IT investment: 1. How much computer code does the company want to write? 2. How will the company pay for the application? 3. Where will the application run? 4. Where will the application originate?

Can I do vanilla or custom as SAAS or on premise?

Either, this is just how you implement it

ERP

Enterprise Resource Planning- built for managing processes, integrated by design, modules share data bases/structures, single company provides all modules, purchased by company

Causes of ERP system implementation failure?

Failure is found within the PEOPLE. -fail to involve people in planning and development phase and change in mgmt process -trying to do too much too fast in the conversion process - Insufficient training in the new work tasks required by the ERP system -The failure to perform proper data conversion and testing for the new system

FAIS

Functional Area Information System- built for a specific function, limited integration between functions, limited horizontal integration, often from different companies or internally developed

Custom Approach

I'm gonna change the software to the way I do business. Because we want to keep it our way

Technology Architecture

It is Computer Based Information Systems (CBIS)- hardware, software, network, database

JAD

Joint Application Design- a group-based tool for collecting user requirements and creating system designs -Most often used within the systems analysis and systems design stages of the SDLC

SaaS is a form of?

Leasing both application hardware and software

On Premise System

One way to implement - like owning a car, everything is yours.

Which function do we perform everyday, often, certain times a year?

Operational, Tactical, Strategic

Production

Originates and ends in the warehouse department (need to produce and reception of finished goods), but involves the production department as well

Fulfillment

Originates in the sales department (customer request to buy) and ends in the accounting department (receive payment)

Procurement

Originates in the warehouse department (need to buy) and ends in the accounting department (send payment)

Ad-Hoc Reports

Out-of-Routine report -For example a CFO might want to monitor cash flow and cash on hand

What is used to select the best investment options in project selection?

Portfolio Management- each functional area provides input, the total portfolio is screened and final selection made based on capacity (people and $)

With Vanilla approach, what is most affected?

Process

What is involved in production/ supply chain process?

Purchasing, Operation, Warehouse

Best of Breed Approach

Putting our own systems together, as in mixing FAIS and ERP. Getting the best of each capability on the softwares.

RAD

Rapid Application Development- a systems-development method that can combine JAD, prototyping, and integrated computer-assisted software engineering (ICASE) tools to rapidly produce a high-quality system -Compress the stages of waterfall -Less costly -Split up into different incremental periods

Silo Effect

Refers to a lack of information flowing between groups or parts of an organization. it limits the interactions between members of different branches (the delays) of the company, thus leading to reduced productivity

Software as a System

SaaS- other way to implement -like renting a car -employees and processes are yours but the software is BOUGHT -the company rents the software from an ERP vendor who offers its products over the Internet using the SaaS model. The ERP cloud vendor manages software updates and is responsible for the system's security and availability

With Custom approach, what is most affected?

Technology

Waterfall

The sooner you find a problem, the less it will cost -Rigid type of SDLC to make

What are business cases used for?

To determine most appropriate IT investment & justify IT applications

TPS

Transaction Processing System- used by IT professionals to enable systems to process large amounts of data

Two different ways to implement structure?

Vanilla or Custom

Application Portfolio

When a company examines its needs and performance, it generates a prioritized list of both existing and potential IT applications. these ones have to be added or modified if they already exist. horizontal.

When can IT plan be created?

When business/organizational strategy is determined, which is made up from industry analysis and porters 5 force, value chain (completed in business assessment --> goes to organizational strategy --> then IT plan)