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Chapter 4

BUS 252 Chapter Notes - Chapter 4: Uptodate, Enterprise Resource Planning, Customer Relationship Management

Course Code
BUS 252

of 3
Chapter 4: Enterprise-wide and Inter-enterprise Systems
Enterprise-wide Systems are any information systems that are deployed throughout an enterprise. They
are intended to make information available to all personnel in the enterprise who need it.
The enterprise systems are based on the confidence that the information they have is as accurate and
up-to-date as what others in the enterprise are receiving.
They also are intended to gather data using one piece of software to optimize the organization of that
data and, therefore, make it easier and manage.
The popularity of the enterprise-wide systems increased when organizations became global and some of
the management decisions were pushed down to the local manager. However, these local managers still
need up-to-date data to have a clear picture of how their decisions is going to affect the organization.
There are many forms of enterprise-wide systems:
1) Enterprise Resource Planning (ERP)
2) Supply Chain Management (SCM)
3) Customer Relationship Management (CRM)
Since, enterprise systems are expensive and take time to install. Some companies just use their existing
software to make a system that replicates the works of an enterprise system. Companies use
applications like Middleware and legacy systems to link to separate systems together.
Middleware: A software or programming that links together or communicates between two separate
and different programs.
ERP Systems
Enterprise Resource Planning (ERP) systems have the functionality of all the large enterprise system
build into the same piece of software. They make it easier for personnel as all the required data is stored
in one place, and there is no need to switch between applications. Under the ERP systems all the
separate application that the company uses to carry out its day-to-day business are now located under
one single application.
ERP systems are large, have a comprehensive set of functionality, and utilize centralized databases to
hold the data of an organization so that all personnel are reading the same data.
Business Process Reengineering (BPR)
It involves rethinking some of the key business strategies/processes that a business currently uses to
incorporate the new technology.
The largest vendors of ERP systems are Oracle and SAP. Microsoft is also a major player, but it only
appeals to small and medium-sized business.
Characteristics of ERP Systems
ERP systems are client-server systems built on relational database networks. A client-server system is a
network configuration that evolved from networks build around central computers (server) to provide
computing power to the users on their desktop computers (clients).
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Chapter 4: Enterprise-wide and Inter-enterprise Systems
There are different forms of client-server systems, and the difference between them are primarily
defined by strategic objectives. There are three basic elements to any information system: data,
processing, and output.
Most ERP systems are configured as three-tier client-server system, which means they have applications
servers available in the organization.
Implementing and Integrating ERP
Before ipleetig ERP systes ito a copay’s daily operation, the company should carry out some
pilot project with the company that is going to help implement ERP. In this pilot project, both the
companies should test if the company that wants ERP has capable machines and software for processing
the ERP data.
Both the companies should participate in Stress Testing, which is a process of high-volume entry,
processing, and output of test data designed to determine whether the system has the capacity to
handle the volumes that will be required of it.
In addition, once the ERP system is implemented the employees of the company should be extensively
trained on the functions and the applications of the system.
Steps in ERP Implementation
Phase 1: Definition
1) Set up and organize the project team.
2) Conduct project team orientation.
3) Plan the implementation project.
4) Identify and document the overall business and system requirements.
5) Define the application and information technology architectures
6) Describe the application and information technology architectures.
7) Develop a training plan for team members
Phase 2: Operation Analysis
8) Collect the business process information and requirements
9) Fit the required business processes to the standard built-in ERP processes.
10) Develop the business requirements scenarios and the gap analysis.
11) Refine the application and technology architectures
12) Prototype business processes
13) Begin consideration of the feasibility of the business process design.
Phase 3: Solution Design
14) Develop detailed documentation of business procedures
15) Consider and set specific application configuration options for customization.
16) Design any custom extension, interface, and data conversions.
17) Determine process and organization changes required to enable implementation.
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Chapter 4: Enterprise-wide and Inter-enterprise Systems
Phase 4: Build
18) Code and test the customization carried out, including all enhancements, conversions, and
interface (development team)
19) Create and execute performance, integration, and business system tests.
Phase 5: Transition
20) Conduct data conversion
21) Conduct final training for the users and support staff
22) Conduct a production readiness check
Phase 6: Production
23) Cutover to production
24) Fine-tune the systems to make sure it is actually running as it was intended
25) Begin the process of regular maintenance
26) Turn over the system to the continuing management of the organization
27) Begin ongoing support by the continuing IS personnel
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