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Lecture 6

COMM 226 Lecture Notes - Lecture 6: Wi-Fi, Internet Engineering Task Force, Simple Mail Transfer Protocol

Course Code
COMM 226
Marc- Andre Leger

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Chapter 6
Supporting Processes with ERP systems
1. What problem does an ERP system solve?
Information Silo Problem: happens when organizations use several separate information
systems that store data separately. This can lead to inconsistent data and other undesirable issues.
Enterprise Application Integration (EAI):
Software solution that connects information silos
Enables existing applications to communicate and share data
In doing so, it provides integrated data across departmental boundaries.
Leverages existing systems, leaving departmental information systems as is, but
providing an integration layer over the top. This is beneficial because it allows
organizations to continue taking advantage of their current IT investments and causes
less disruption than an ERP implementation.
Enables a gradual first step to ERP

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Enterprise Resource Planning (ERP)
Unlike EAI, ERP moves all of your processes previously supported by separate information
systems into a single IS. In this way, data is stored in a single database and can be shared across
processes in various departmental areas. As a result of the single database, the processes can be
integrated with one another.
This diagram demonstrates how EAI works. As you can see in section (a), we have information
silos. We can use the EAI software to act as an interface between the silos so they can
communicate and share data.
2. What are the elements of an ERP system?

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Manufacturing Software
MRP: Materials Requirements Planning. This software was designed to efficiently
manage inventory, production, and labor.
MRPII: next generation of MRP, included financial tracking of manufacturing processes
and the ability to schedule capacities.
ERP system : includes three of the five components of an IS: software, databases, and procedures.
To create an ERP product, software and databases are installed on hardware and people are
trained on the ERP procedures. Today, for a system to truly be considered an ERP system, it must
include applications that integrate the processes for Supply Chain Management, Manufacturing,
Customer Relationship Management, Human Resources, and Accounting.
ERP software is designed to integrate data and processes across departmental
areas in an organization. Each organization has differing business requirements for
the ERP software, so the software is often customizes to meet the organizations
needs, which is configuration.
ERP Data: rely on a DBMS, there are different types of data in an ERP system.
Transactional Data: data related to events such as a purchase or a student enrollment.
Master Data: also called reference data, data used in the organization that dont change
with every transaction.
Organizational Data: data about the university such as the location of its warehouses,
the mailing addresses of the buildings, and the names it of its financial accounts.
Hardware: Several hardware needs are addressed because of ERP implementations.
Among these are storage devices, clients, printers, servers, and others. However, with
changes in technology, organizations are now facing a new ERP hardware dilemma. The
Cloud has also become a player in the ERP environment, where businesses may “rent”
ERP systems with lower up-front and hardware costs.
Procedures for an ERP system: can be very strict and this requires a great deal of
training for the users. Often, organizations schedule trainer sessions whereby a third party
vendor would train individuals within the organization in order for them to be prepared to
train users on an ongoing basis.
People involved with the ERP system : Three basic categories of users.
Users: interact directly with the system.
Systems Analysts: Second are analysts, often referred to as systems or business analysts,
whose role it is to analyze the system and business processes to maintain and adapt
the system after implementation.
Consultants: perform various roles, from training to configuration of the ERP system.
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