Information System

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Section 11.3 - Before You Go On…

1. Define ERP and describe its functionalities.

Transaction processing (TPSs) monitor, collect, store, and process data generated from all business transactions. These data are inputs to the organization’s database. TPSs have to handle high volume and large variations in volume efficiently, avoid errors and downtime, record results accurately and securely, and maintain privacy and security. The backbone of most information systems applications is the transaction processing system.

2. List some drawbacks of ERP software.

1-The biggest disadvantage related with ERP software is its long journey, its data length, time consuming, expensive implementation. Even we ignored the purchasing cost of the software which is huge one as well; its implementation process can take several months and required some huge money for the implementation.

2- It may be possible that companies may hire some brains to calculate the cost and make necessary arrangements, but so many large companies and small businesses are fails to implement the ERP software project successfully because of its complexities.

3-ERP software has two lines, one touch each and second is that every employee of the company related to the implementation and involved its complexities. To train all the employees about its module is time consuming but also involve some amount of money.

4- After successful implementation, now the valuable data is in the access of number of employees, which can raise some serous security issues even after successful completion of this process the valuable data which now comes at the disposal of so many people raises serious security issues. Overlapping the data, System failure, pathetic consultancy, and serious viruses may cause the result in wasting of data.

5- ERP software is business tool, it can changed the whole company business system, it may change the industry slandered system, wash out the flexibility which may effect on the final product, and its strict module may effect on the employees comfort level and make them dis-satisfied.

Section 14.4 - Before You Go On…

1. Define a supply chain and supply chain management (SCM).

A supply chain refers to the flow of materials, information, money and services from raw material suppliers, through factories and warehouses to the end customers. A supply chain also includes the organizations and processes that create and deliver products, information, and services to end customers.

Supply chain management’s (SCM) function is to plan, organize, and optimize the supply chain’s activities. The goal of SCM systems is to reduce friction along the supply chain. Friction can involve increased time, costs, and inventories as well as decreased satisfaction.

2. List the major components of supply chains.

The supply chain involves three segments or components:

1. Upstream: where sourcing or procurement from external suppliers occurs (orders, information, payments, returns) 2. Internal(where packaging, assembly or manufacturing takes place). 3. Downstream, where distribution takes place, frequently by external distributors (products, services, information)

Section 14.6 - Before You Go On…

1.Define EDI and list its major benefits and limitations

Electronic Data Interchange (EDI) is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. EDI formats these documents according to agreed-upon standards and then transmits messages using a converter, called a translator. 

Benefits 
- Minimizes data entry errors because each entry is checked by the computer. - The length of the message can be shorter, and the messages are secured. - Reduces cycle time.
- Increases productivity.
- Enhances customer service.
- Minimizes paper...
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