CHAPTER 10

ERP

Enterprise Resource Planning (ERP) Systems IS that incorporates business process view of entire organization and integrates allocation of resources Benefits and Limitation of ERP Systems Implementing ERP Systems Software-as-a-Service ERP Implementation

FAIS

Functional Area Information System Interact with "Functional Areas" in organization (Accounting and Finance Marketing Production/Operations Management Human Resource Management) Provide information to midlevel managers and support planning, controlling tasks

Three major disadvantages of using cloud-based ERP systems are:

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

different methods of ERP implementation

On-Premise ERP Implementation Vanilla approach Standard ERP Package Custom approach Catered to the firm Best of breed approach Mix and match, some ERP modules are purchased while others are tailor-made Most common

Three major advantages of using a cloud-based ERP system are:

The system can be used from any location that provides Internet access Companies using cloud-based ERP avoid the initial hardware and software expenses that are typical of on-premise implementations Cloud-based ERP solutions 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.

TPS

Transaction Processing System (TPS) Continuous 'real-time' data collection Efficiently handle high volumes of data and large variations in those volumes Avoid errors and downtime Record results accurately and securely Maintain privacy and security Source data automation Batch processing Online Transaction Processing System (OTPS)