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Chapter 2

ITM330 Chapter 2 Notes.docx

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Information Technology Management
ITM 330
Peter Pille

ITM330 Chapter 2 Notes The Evolution of Information Systems Up until now companies had unintegrated information systems that supported only the activities of individual business functional areas This configuration of information system is called Silos because each department has its own stack or silo of information that is unconnected to the next silo Current ERP systems have evolved due to 3 things 1 the advancement of hardware and software technology computing power memory and communications 2 the development of a vision of integrated information systems and 3 the reengineering of companies to shift from a functional focus to a business process focus Computer Hardware and Software Development Computer hardware and software has grown rapidly in the 1960s to the 1970s Moores Law states that the computer chip doubled every 18 months This means that the capabilities of computer hardware were doubling every 18 months In the 1970s Relational Database Software was developed which allows business to store retrieve and analyze large volumes of data Ex spreadsheets Early Attempts to Share Resources By the mid 1980s telecommunication developments allowed users to share data and peripherals on local networks The central computerlocal computer arrangement is now called a ClientServer Architecture The computers eventually got more power allowing a larger Scalability meaning that when the equipments capacity is exhausted its capacity can be increased by adding new hardware Companies use Database Management Software DBMS which allowed them to hold that datain an organized fashion and retrieve the data easily The Manufacturing Roots of ERP Information systems helped the factory floor by making the Material Requirements Planning MRP software This software allowed a plant manager to plan production and raw materials requirements by working backward from the sales forecastLooked at Marketing and Sales forecast of demandLooked at the production schedule needed to meet that demandCalculated the raw materials needed for productionAnd finally projected raw materials purchase order to suppliers
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