Chapter 10

Cards (36)

  • transaction: any business event that generates data worthy of being captured and stored in a database
  • transaction processing system: supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data
  • batch processing: the firm collects data from transactions as they occur, placing them in groups
  • online transaction processing: business transactions are processd online as soon as they occur
  • functional area information system: support a particular functional area in the organization by increasing area's internal efficiency and effectiveness
  • common forms of financial control:
    • budgetary control
    • internal auditing
    • financial ratio analysis
  • production/operations management: responsible for the process that transform inputs into useful outputs as well as for the overall operation of the business
  • production/operations management functions:
    • in-house logistics and materials management
    • planning production and operation
    • computer-integrated manufacturing
    • product life cycle management
  • computer-integrated manufacturing: an approach that integrates various automated factory systems.
  • computer-integrated manufacturing goals:
    • simplify all manufacturing technologies and techniques
    • automate as many of the manufacturing processes as possible
    • integrate and coordinate all aspects of design, manufacturing, and related functions through computer systems
  • product life cycle management: a business strategy that enables manufacturers to share product-related data that support product design and development and supply chain operations
  • human resource information system: deal primarily with transaction processing systems such as managing benefits and keeping records of vacation days
  • IT support in human resource planning and management:
    • payroll and employees' records
    • benefits administration
    • employee relationship management
  • routine reports: reports produced as scheduled intervals
  • ad hoc (on-demand) reports: reports that are created on demand by users
  • drill-down reports: reports that show a greater level of details than is included in routine reports
  • key indicator reports: summarize the performance of critical activities
  • comparative reports: compare the performances of different business units or of a single unit during different times
  • exception reports: include only information that falls outside certain threshold standards
  • enterprise resource planning systems: designed to correct a lack of communication among the functional area IS. ERP systems resolve this problem by tightly integrating the functional area IS through a common database
  • ERP II systems: inter-organizational ERP systems that provide web-enabled links among a company's key business systems and its customers, suppliers, distributors, and other relevant parties
  • benefits of ERP systems:
    • organizational flexibility and agility
    • decision support
    • quality and efficiency
  • ERP limitations:
    • companies need to change their current business processes to fit the predefined business processes incorporated into ERP
    • complex
    • expensive
    • time consuming
  • major causes of ERP implementation failure:
    • failure to involve affected employees in the planning and development phases and in change management processes
    • trying to accomplish too much too fast in the conversion process
    • insufficient training in the new work tasks required by the system
    • failure to perform proper data conversion and testing for the new system
  • approaches to implementing an on-premise ERP system:
    • vanilla approach
    • custom approach
    • best-of-breed approach
  • vanilla approach:
    • implements standard ERP package
    • enable the company to perform the implementation more quickly
    • extent to which the software is adapted is limited
  • custom approach:
    • develop new ERP functions specifically for that firm
    • organization must carefully analyze business processes
    • expensive and risky
    • difficult to use if not perfectly matched to organization's needs
  • best-of-breed approach:
    • mix and match core ERP modules as well as other extended ERP modules from different software providers to best fit their unique internal processes and value chains
  • benefits of cloud-based ERP system:
    • can be used from anywhere with internet access
    • avoid initial hardware and software expenses of on-premise implementation
    • scalable, can extend ERP to support new business processes by purchasing new ERP modules
  • disadvantages of cloud-based ERP:
    • less secure
    • sacrifice control over a strategic IT resource
    • if the system experiences problems it can take longer to fix
  • enterprise application integration system: integrates existing systems by providing software that connects multiple applications
  • cross-departmental process:
    • originates in one department and ends in a different department
    • originates and ends in the same department but involves other departments
  • cross-departmental processes:
    • procurement process
    • fulfillment process
    • production process
  • procurement process: originates when a company needs to acquire goods or services from external sources, and it concludes when the company receives and pays for them.
  • order fulfillment process: a cross-functional business process that originates when the company receives a custom order, and it concludes when it receives payment
  • purpose of transaction processing systems: to monitor, store, collect, and process data generated from all business transactions