ISMN Test #4 Ch. 10

Legacy Systems

Built in house and are supported by your organizations IT department

Transaction Processing Systems

support the monitoring, collection, storage, and processing of data from the organizations basic business transaction, each of which generates data

Transaction

any business event that generates data worthy of being captured and stored in a database

What do transaction processing systems do

-Support core options

Inputs for the funcional area info systems

-Handle high volumes of data

-avoid errors on downtime

-Record results accurate and securely

Source data automation

organizations try to automate the data entry as much as possible because of the large volume involved

What two ways do systems process data?

Batch and Online processing

Batch Processing

places the transaction data in groups and processes the batches periodically

Online transaction processing

business transactions are processed online as soon as they occur

Functional Area Info Systems

support individual functional areas in the organization by increasing each area's internal efficiency and effectiveness

Enterprise resource planning systems

an IS that tightly integrates the functional areas of the organization and enables information to flow seamlessly across them

What are ERP systems designed to do?

designed to correct a lack of communication among the functional area IS

What are the 3 benefits of ERP systems

1.)Organizational flexibility and agility

2.)Decision Support

3.)Quality and Efficiency

What are the drawbacks of an ERP system?

1.)complex, expensive, and time consuming

2.)costs and risk of failure are substantial

3.)If IS fails then loss of revenue, profits, and market share

Causes for ERP system failures?

1.)Failure to involve affected employees in planning

2.)Trying too much too fast

3.)Insufficient training

4.)Failure to perform proper data conversion

Vanilla aproach

company implements a standard ERP package using the packages built in configuration options

Custom Approach

company implements a more customized ERP system by developing new ERP functions designed specifically for that firm

Best of Breed approach

company mix and matches core modules and functionality to best fit their unique internal processes

What is the fastest implementation approach

Vanilla

What is the best fit for a company approach

custom approach

Routine Reports

produces at scheduled intervals (daily, weekly, montly)

Ad hoc (on demand reports)

created on demand in response to a specific question or request

Exception reports

include only information that falls outside certain threshold standards