Term
| What is ERP and where did it come from? |
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Definition
| Enterprise Resource Planning is a process or approach which attempts to consolidate all of a company's departments and functions into a single computer system that services each department's specific needs. It is a convergence of people, hardware and software into an efficient production, service and delivery system that creates profit for the company |
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Term
| With ERP Operations, businesses can do what? |
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Definition
1. Automate and streamline operational processes with greater adaptability
2. Increase productivity in operations with a role-based solution and centralized information
3. Extend collaboration to all value chain partners
4. Improve operations performance with strategic business insight |
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Term
| Reasons ERP systems are powerful tools |
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Definition
1. ERP is a logical solution to incompatible applications
2. ERP addresses global information sharing and reporting (SAP able to handle 33+ languages and currencies)
3. ERP avoids the pain and expense of fixing legacy systems |
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Term
| Organizations organized prior to ERP systems? |
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Definition
| all individual entities, and with ERP it brings the organization together |
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Term
| What is the heart of the ERP system? |
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Definition
| the heart is the database |
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Term
| Process of ERP Systems using database |
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Definition
| it takes an input (raw material, product) through an established and usually routine set of procedures (process) to convert it from one form to another form - many times adding value |
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Term
| What is the relationship of Business processes to ERP systems? |
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Definition
| the ERP system is used to manage a firm's business process |
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Term
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Definition
| traditional components included in most ERP systems and they primarily focus on internal operations |
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Term
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Definition
| extra components that meet the organizational needs not covered by the core components and primarily focus on external operations |
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Term
| Three most common core ERP components |
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Definition
1. Accounting and finance
2. Production and materials management
3. Human resource |
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Term
| Extended ERP components include what? |
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Definition
1. Business intelligence
2. Customer relationship management
3. Supply chain management
4. E-business - components include: Elogistics and Eprocurement |
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Term
| Integrating SCM, CRM, and ERP |
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Definition
| SCM CRM, and ERP are the backbone of business. Integration of these applications is the key to success for many companies, integration allows the unlocking of information to make it available to any user, anywhere, anytime |
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Term
| Best of Breed integration |
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Definition
| many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together. Connected with MIddleware. |
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Term
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Definition
| enables organizations to clarify their vision and strategy and translate them into action |
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Term
| Balanced scorecard views the organization from what four perspectives? |
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Definition
1. learning and growth
2. internal business process
3. customer
4. financial |
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Term
| What type of analysis needs to be done when implementing an ERP system? |
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Definition
| Proper business analysis (successful companies spend up to 10 percent of the project budget on a business analysis |
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Term
| Successful ERP projects share what 3 attributes? |
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Definition
1. Overall fit
2. Proper business analysis
3. Solid implementation plans |
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Term
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Definition
A. off the shelf - change organization
B. off the shelf and tailored to fit - change organization and software
C. Custom made - change software |
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Term
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Definition
| Successful companies spend up to 10 percent of the project budget on a business analysis |
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Term
| Solid implementation plans |
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Definition
| A plan is needed to monitor the quality, objectives, and timelines (frequently spend over 20% of implementation cost on training) |
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Term
| Who are the big ERP vendors? |
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Definition
1. SAP, the German juggernaut (31%) (syteme, Anwendungen, Produkte in der Datenverarbeitung: Systems, Applications and Products in Data Processing)
2. Oracle/PeopleSoft/J.D. Edwards (25%)
3. Microsoft Dynamics (15%) (Axapta or Dynamics AX)
4. Tier II (30%) (SAGE Group (UK), Infor Global Solutions, Lawson, Epicor, IFS, CDC, QAD) |
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Term
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Definition
| Mannheim, Germany in 1972 by five former IBM Systems Analysts |
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Term
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Definition
1. data to be available in real time
2. entire organization to be on one system
3. users to work on a computer screen, not with paper |
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Term
| What type of System Architecture does SAP utilize in installations today? |
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Definition
| Client-Server Architecture |
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Term
| What are some of the key benefits of an ERP System? |
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Definition
1. improved process (better tracking, better decision-making)
2. Global integration, including currency exchange rates
3. Reduced IT maintenance: single system is easier to maintain
4. Provides information so that a company can be managed, not just monitored |
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Term
| The cost of an ERP system includes? |
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Definition
1. Depends on the size and complexity of the software package, which is a function of the size of the firm
2. Includes new hardware required to run the system
3. Includes consultant and business analyst fees
4. Includes the time required for implementation (disruption of business)
5. Includes training costs (cost to develop and deploy training plus employees time away from their job) |
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Term
| What are the areas of cost that are key in ERP Systems installations today? |
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Definition
A. Basic cost -2- 5% of sales
B. Implementation - 1 - 3 times software cost
C. Hardware - 1 - 2 times cost of software
D. Training - 20 - 25% of total cost of system
E. Implementation - 6 - 18 months depending on size and complexity of system
F. Consultants - 20% of system cost |
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Term
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Definition
1. Improved process (better tracking, better decision-making
2. Global integration, including currency exchange rates
3. Reduced IT maintenance: single system is easier to maintain
4. Provides information so that a company can be managed, not just monitored |
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Term
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Definition
| based on multi-layered client/server architecture |
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Term
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Definition
| provides its own set of management tools for monitoring and tuning, and this system is referred to as Computing Center Management System (CCMS) |
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Term
| CCMS includes tools for... |
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Definition
1. Background job scheduling
2. Workload distribution
3. Printing and spooling services
4. Database administration
5. Performance monitoring |
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Term
| SAP is organized around what? |
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Definition
| business processes which cut across business functions. SAP contains over 1800 business processes in its Analyzer |
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Term
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Definition
| the process of making standard software fit your business |
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Term
| The basic R/3 system is divided into multiple application areas called what? |
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Definition
modules.
1. sales and distribution
2. materials management
3. financial accounting
4. production planning
5. human resources
6. plant maintenance |
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Term
| Data in the R/3 system is sub-divided into what data? |
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Definition
| Master and Transaction data |
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Term
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Definition
| the durable information on a customer like name, address, etc. |
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Term
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Definition
| originates from operational transactions such as orders, invoices, etc. |
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Term
| All data is stored where? |
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Definition
| in tables within a database where it is available to individual applications |
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Term
| Entering an external document causes the creation of an |
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Definition
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Term
| Each document is identified by |
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Definition
| a unique document number (data can be transferred to other corresponding modules). This Real-Time processing allows all users to have the latest up-to-date information |
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Term
| What are Enterprise Resource Planning (ERP) Systems? |
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Definition
A. Incredibly large, extensive software packages used to manage a firm's business processes
B. Standard software packages that must be configured to meet the needs of a company
C. Database programs with the following functions (input, storage/retrieval, manipulation, output) |
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Term
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Definition
| A way to separate data in the system, in some ways, a separate database, also, a table entry |
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Term
| Organizations create and use teams, partnerships, and alliances to do what? |
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Definition
1. incorporate new employees and maximize training opportunities
2. undertake new initiatives
3. address both major and minor problems
4. capitalize on significant opportunities
5. incorporate knowledge from internal and external sources |
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Term
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Definition
| supports the work of teams by facilitating the sharing and flow of information (must develop soft skills). an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information |
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Term
| Unstructured Collaboration (information collaboration) |
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Definition
| includes document exchange, shared whiteboards, discussion forums, and e-mail |
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Term
| structured collaboration (process collaboration) |
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Definition
| involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules (documents, drawings, change notices) |
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Term
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Definition
| Expertise and skills acquired by a person through experience and education. Intellectual and knowledge-based assets fall into two categories: Explicit knowledge and tacit knowledge |
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Term
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Definition
| consists of anything that can be documented, archived, and codified, often with the help of IT |
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Term
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Definition
| knowledge contained in people's heads |
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Term
| Knowledge management (KM) |
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Definition
| involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions |
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Term
| knowledge management system (KMS) |
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Definition
| supports the capturing and use of an organization's "know-how" |
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Term
| What are two best practices for transferring or recreating tacit knowledge? |
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Definition
| Shadowing and Join problem solving |
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Term
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Definition
| less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work |
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Term
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Definition
| a novice and expert work together on a project |
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Term
| knowledge management systems include |
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Definition
1. knowledge repositories (databases)
2. expertise tools
3. e-learning applications
4. discussion and chat technologies
5. search and data mining tools |
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Term
| social networking analysis (SNA) |
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Definition
| a process of mapping a group's contacts (whether personal or professional) to identify who knows whom and who works with whom |
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Term
| Content management system (CMS) |
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Definition
| provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment (training for salespersons, product presentations, electronic capturing, storage, distribution and accessing of documents) |
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Term
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Definition
| Web-based tools that make it easy for users to add, remove, and change online content |
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Term
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Definition
| collaborative web pages that allow users to edit documents, share ideas, or monitor the status of a project (blogs, user communication: agenda management) |
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Term
| Workflow management systems |
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Definition
| work activities can be performed in series or in parallel that involves people and automated computer systems |
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Term
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Definition
| defines all the steps or business rules, from beginning to end, required for a business process |
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Term
| messaging-based workflow system |
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Definition
| controls the flow of information between workers, teams, partners |
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Term
| database-based workflow system |
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Definition
| stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document |
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Term
| Collaboration systems include what? |
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Definition
1. knowledge management systems
2. content management systems
3. workflow management systems
4. groupware systems |
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Term
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Definition
| supports team interactions |
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Term
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Definition
| a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio |
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Term
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Definition
| blends audio, video, and document-sharing technologies to create virtual meeting rooms |
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Term
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Definition
| functionally self contained units allowing for extension of the system in a gradual manner |
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Term
| Accounting and finance ERP component |
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Definition
| manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management |
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Term
| Production and materials management ERP component |
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Definition
| handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control |
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Term
| Human resource ERP component |
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Definition
| tracks employee information including payroll, benefits, compensation, performance, assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities |
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Term
| extensive global deployment |
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Definition
| business practices of many countries are built into the system |
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Term
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Definition
| how users initiate transactions through the SAP, this identifies transaction codes pulled from the application modules |
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