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Chapter 4

Chapter 4 - ERP.docx

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Information Technology Management
ITM 100
Ron Babin

Class 4 – ERP Systems  Ryerson has a set of systems to service the entire community, consisting of several legacy and COS (Commercial off the shelf) systems o Blackboard (learning management system – LMS)  Runs on a series of computer systems and servers in KHW basement. RAMSS also uses the Oracle DBMS (Database Management System) to get student data such as registration, etc. o RAMSS (Registrar system) o Oracle (Financial and HR systems)  Uses two enterprise systems: Financial IS, and HRIS.  Anything to do with money is connected in the Financial IS (library fees, etc) o Scheduling o Other “best of breed” systems – bookstore, residence, library, RAC/MAC, etc.  EAI Middleware (Enterprise Application Integration) – The information bus o Allows you to swap databases through the EAI Middleware, and supplies the information from different databases Enterprise Resource Planning – integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprise-wide decisions by viewing enterprise-wide information on all business operations  ERP Is: o Solution to incompatible applications o Addresses the need for global information sharing o Avoids the expense of fixing legacy systems  Legacy Systems – are older computer technology still in use (most of this software has been written in the 1960s). ERP can separate the data from this software and so solves the problem of these aging systems still in us  Functional Systems – Serve single business departments or units  At the heart of all ERP systems is a database; when a user enters or updates information in one module, it is immediately and automatically updated through the entire system. Personal (Textbook) Notes  Social Responsibility – Government / Corporation / Organization / Individual has a responsibility to society  Corporate Policy – refers to the position a firm takes on social and political issues  Corporate Responsibility – Part of Social Responsibility: Includes everything from hiring minority workers to making safe products.  Sustainable or “Green” IT – Manufacturing / use / management / disposal of IT in a way that minimizes environmental damage, critical part of social responsibility of a corporation  Energy Consumption of IT systems is very costly. In fact, in a typical data centre over 30% of the energy goes to the IT equipment. Using better cooling techniques and better designed computers, companies can save millions in operating costs per year for IT systems o Energy Rebate Programs are available in Ontario for small businesses, offering incentives to upgrade to energy-saving applicants, and to meet energy efficiency goals in the Ontario Building Code o Stricter carbon emission laws are making it a necessity for business to use energy efficiently  Sun Microsystems designed the first multi-core chip. Marc Tremblay who was Sun Microsystem’s chip architect knew that faster chips would run hotter and burn out, so he created the multi-core with several processors running on a single piece of silicon. They each run cooler and collectively get more work done. o HP created Smart Cooling for use in data centres. Thousands of heat sensors monitor temperatures and the software direct o Water-cooling is a popular technique used to cool hot chips more efficiently than the conventional method of blowing cold air onto them.  Virtualization is a framework that divides the resources of a computer into multiple execution environments. Allows IT managers to easily load multiple programs on a single machine and move programs between computers on the fly, making maximum use of a server cluster. Saves a lot on energy costs because previously servers could only run 1 app at a time, and the server was always on even if that app was not in use  Google experimented using alternative energy sources such as wind and solar power in its data centres, but ultimately decided that these efforts are in vein and canceled the program.  Sustainable IT Disposal refers to the safe disposal of IT assets at the end of their life cycle o Ensures E-Waste (old computer equipment) does not end up in a landfill where toxic substances can cause problems o Many hardware manufactures (Toshiba, Dell, Sony) now offer take-back programs for safe disposal o Canada’s provincial laws require that e-waste be recycled. They created the Electronic Product Stewardship Canada (EPSC) to manage e-waste programs.  These programs currently target 5 general categories: PC’s , notebooks, monitors, printers, and televisions.  Companies like LinkedIn, the professional networking website, are being used more and more by large and powerful firms to seek out suitable candidates for employment o Gives companies the ability to stay in touch with former employees o Powerful job-searching tool, and employee-seeking tool o Helps create a community with potential customers  With the progress of technology the Virtual Workforce – people working at home through the internet – is growing steadily.  Tools for the Virtual Workforce include: o Mobile Commerce – the ability to purchases goods/service through an internet enabled device wirelessly o Telematics – Blending of computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations. o Electronic Tagging – a technique for identifying and tracking assets and individuals via technologies such as Radio Frequency Identification and smart cards. Section 4.2 – Enterprise Resource Planning  Enterprise Resource Planning (ERP) - integrates all departments and functions throughout an organization into a SINGLE information system, so that employees can make decisions by viewing enterprise-wide data on all business operations. o EX: Taking data from across an enterprise, consolidating and correlating the data, and generating enterprise-wide organizational reports. o Provide organizations with consistency across the board  Legacy Systems is an older computer technology that remains in use even though there are newer systems available. They often remain in place because they still do their assigned job, respond adequately to user requests or because the cost of replacement is too high. o Some issues with converting include issues of data transfer, compatibility, etc. o Functional Systems are informational systems that serve a single business unit, such as accounting  Issues can occur in Information Systems when there is no consistency. If a single department such as sales decides to implement a new system without considering other departments, inconsistencies can occur throughout the entire company. It is important to keep data consistent across the ERP.  An ERP system can provide information to the headquarters of a company that is large and has multi-site operations world-wide. An ERP system can help to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share. o An example is the City of Winnipeg. The city was struggling with inconsistent data across departments,
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