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Chapter 6

COMM 226 Chapter Notes - Chapter 6: Wide Area Network, Enterprise Application Integration, Internet Layer


Department
Commerce
Course Code
COMM 226
Professor
Marc- Andre Leger
Chapter
6

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CHAPTER 6: supporting processes with ERP systems
Q1: what problems does ERP systems solve?
With imagination when a software engineer at SAP realized that his new
networks and advances in database storage allowed them to create large,
centralized, well connected databases that spanned entire companies
The key to ERP systems is that data is consolidated in one central databases
Enterprise application integration (EAI)
It connects information silos via new layer of software
It enables existing application to communicate and share data
It provides integrated data
It leverages existing systems, leaving department information systems as
is but providing an integration layer over the top
It enables a gradual move to ERP
Enterprise resource planning (ERP)
Is a product suite of software, a database, procedures and a set of processes for
supporting business operation with a single consistent information system
These systems intergrade process data from departments such as accounting,
human resources. Sales and operations into a single system
The primary purpose of an ERP system is integration. An ERP systems allows
the Èlefty hand of the organization to know what the right hand is doing”

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By consolidating the data in one place, the data are always up to date and
available in real time to be used by any process in the organization
Q2: what are the elements of an ERP systems?
Current ERP systems are particularly strong in the areas in which they were first
developed, such as manufacturing and supply process
Through the use of material requirements planning (MRP) to efficiently
manage inventory, production, and labour. As computer power became cheaper,
Manufacturing resource planning (MRPII) was developed that added financial
tracking capabilities as well as the opportunity to schedule equipment and
facilities.
JUST IN TIME (JIT), manufacturing occurs just as raw material arrive
synchronizes manufacturing
The Sarbanes Oxley act (SOX) required companies to exercise greater control
over their financial processes, and ERP systems addressed that new
requirement
SUPPLY CHANGE MANAGEMENT
MANUFACTURING
CUSTOMER RELATIONSHIP MANAGEMENT
HUMAN RESOURCES
ACCOUNTING
FIVE COMPONENTS OF ERP
ERP SOFTWARE: Accomplished inter process data integration. This
customization is called configuration
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