INFO 200 | Midterm Notes

Chapter 1: The Importance of MIS

I- The digital revolution:

We live in the information age, a period in history where the production, distribution, and control
of information is the primary driver of the economy.
It started with the digital revolution (conversion from mechanical/analog devices to digital
devices).
They could also work faster as processor speed increased.
Bell’s law: A new computer class forms roughly each decade establishing a new industry
(digital devices will evolve so quickly that they will enable new platforms, programming
environment, industries, network and information systems every 10 years).
The evolution of digital technology has fundamentally altered businesses and become a primary
driver of corporate profitability.
To understand how businesses can be affected by digital evolution. What existing industries do,
they how they change. Technological change accelerating Bell’s Law affect: Highly successful
business could be bankrupt quickly because technology changed, and it didn’t.
Moore’s law: The number of transistors
per square inch on an integrated chip
doubles every 18 month. Because of this
law the ratio of price to performance of
computers has fallen dramatically (4000$
to 0$ approximately). The increase of
processing speed has had a greater impact
on the global economy than any other
single factor. It has enabled new devices,
apps, companies and platforms.
Metcalfe’s law: the value of a network is equal to the square of the number of users connected
to it (as more digital devices are connected together the value of that network will increase). As
more users gained access to the internet it became more valuable.
Nielsen’s law: network connection speeds for high-end users will increase by 50% per year.
Network speed is increasing. Higher speeds enable new products, platforms…
Kryder’s law: the storage density on magnetic disks is increasing at an exponential rate.
Storage capacity is increasing and the cost of storing data is approximately 0$.

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II- The importance of MIS:

Learn how technology fundamentally changes businesses.
Know why executives try to find ways to use new technology to create a sustainable competitive
advantage.
Learn to assess, evaluate, apply emerging information technology to business.
Help you attain knowledge needed by future business professionals.

III- How to attain job security:

Through Moore’s Law, Metcalfe’s Law, Kryder’s Law: Driving data processing, storage,
communications costs to essentially zero. Any routine skill can, and will, be outsourced to lowest
bidder.
Develop marketable skills (mainly Reich’s four key skills): the cost of data processing, storage,
communications are 0$. Any routine skill can and will be outsourced by the lowest bidder. Rapid
technological change and increased international competition: Requires skills and ability to adapt
and favours people with strong non-routine cognitive skills.

Abstract Reasoning: Ability to use and construct a representation/model, make and manipulate a
model.
Systems Thinking: Ability to model system components, connect inputs, and outputs among
components to reflect structure and dynamics and to discuss, illustrate, critique systems; compare
alternative systems; apply different systems to different situations.
Collaboration: Ability to work with others to achieve a common goal: Receive/provide feedback.
Experimentation: Ability to identify opportunities and test them (with use of available resources).
Make reasoned analysis of an opportunity; develop and evaluate possible solutions. Fear of failure
paralyzes many good people and ideas.

IV- What is MIS:

Key elements: Management and use (develop, maintain, adapt by creating information system to
meet your needs, take an active role in system’s development so that business professionals use
cognitive skills to understand business needs and requirements), Information systems, Strategies.
The goal of MIS is to manage IS to achieve business strategies.
System: A group of components that interact to achieve some purpose.

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IS: Group of components that interact to produce information.

The most important components are the people; cognitive skills determine quality of your thinking,
ability to conceive information from data. Information is value you add to information systems,
but only humans produce information.
All components must work together.

V- Difference between IT and IS:

Information Technology (IT): Products, methods, standards, and inventions used to produce
information and to drive the developments of a new IS. IT components = Hardware + Software +
Data.
IS = IT + Procedures + People
We cannot buy an IS but we can buy, rent, lease hardware, software and databases, and predesigned
procedures. People execute procedures to employ new IT.

VI- Development and use on IS:

Business professionals need to take active role to ensure systems meet their needs, understand how
IS constructed, consider users’ needs during development and learn how to use ancillary (security,
backups). Information systems exist to help people achieve business' strategies.

VII- Strong passwords:

• 10+ characters
• No user, real, company name
• No dictionary words
• Different from previous passwords
• Contains numbers, symbols …
DO-SI-DO move is to move away so that another person can enter password privately, a common
professional practice.
• Never write down your password
• Never ask someone for their password
• Never give your password to someone
A duty is the necessity to act in accordance with categorical imperative
Perfect duty - behavior that must always be met
Imperfect duty - a praiseworthy action, but not required

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Chapter 2: Business Processes, Information Systems, and

Information
I- Business process:
The abilities to create process models, discuss changes to processes, and know how info systems
can support processes are key parts of every business professional’s skillset. Business
professionals need to answer questions like:
• Can we change the way we work to better achieve our goals?
• Can we do our work with less cost?
• How can we eliminate special cases?
• Why do we have so many forms to fill out?...
A business process is a network of activity for accomplishing a business function. Constructed
using symbols of Business Process Modeling Notation (BPMN)

A swimlane format is a graphical arrangement in which all activities

for a given role (job type) are shown in a single vertical lane. Each
swimlane has activities, which are specific tasks that need to be
accomplished as part of the process. A role is a subset of the act in a
business process that is performed by an actor, which is a person,
group, dept, org or info systems.
• Activity: Specific tasks to be accomplished in a process.
• Decision: Question to be answered Yes/No.
• Role: Sets of procedures.
• Actor: Person, group, department, organization, or information system.
• Resource: People, or facilities, or computer programs assigned to roles.
• Repository: Collection of business records.
Data Flows: Movement of data from 1 activity to another.
Sequence Flows: Solid line that indicates what the next action is.

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II- How can IS improve process quality:

The process quality is measured in 2 dimensions:
Effectiveness: an effective business process is one that enables the org. to accomplish its strategy
Efficiency: Ratio of benefits to costs, output/ inputs. Ex. IS that provides same benefit but at lower
cost.
Two repositories may create process inefficiencies. A single repository is less costly, generate
fewer errors, and as effective.

III- Process costs:

BPMN doesn't show costs directly. Cost is labor to perform activity.
Computer network, email, or other system needed to support data flows. Cost of infrastructure part
of business process costs. Use an Information System to Store Vendor Data

Storing vendor product and performance data in a database is efficient. It saves time since the
buyer would have a faster and more reliable means of finding relevant data.
Store Vendor Product & Performance Data in a Database view past vendor performance to help
choose between vendors. (Ex. Stay away from vendors that frequently ship fewer/more items than
requested or in bad condition).

IV- Information:
What is information
• Knowledge derived from data, where data are recorded facts or figures.
• Data presented in a meaningful context.
• Processed data, or data processed by summing, ordering, averaging, grouping, comparing, or
other similar operations.
• A difference that makes a difference.
Where is information
• Graph is not, itself, information.
• Graph is data humans perceive and from that perception, conceive information.
• Ability to conceive information from data determined by cognitive skills. (Humans are the
most imp part of any IS- cognitive skills)
• People perceive different information from same data they will perceive different information
from the same data.

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V- Data characteristics:
Accurate: correct, complete data helps us conceive good info and correctly understand them
Timely: available in time for its use
Relevant: both to the context and subject
Just barely sufficient: Right amount of information vs. extraneous info
Worth its cost: data is not free. There are costs for developing an IS, costs of operating and
maintaining that system and cost of time and salary for reading and processing the data that the
system provides.

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Chapter 3: Organizational Strategy, Information Systems, and

Competitive Advantage

I- Strategy Determines Information Systems:

II- Forces that define industry structure (Porter’s 5 competitive forces):

Determine industry profitability (weak, medium, strong):
• Threat of New Competitors: How easy it is for new businesses to enter the industry.
• Threat of Substitutes: How easy it is for customers to switch to substitutes (caused by income,
price changes, trends, preferences).
Do you offer higher/lower prices?
Do you offer the same/different perceived benefit?
• Threat of Existing Rivals: Customer loyalty.
• Bargaining Power of Suppliers: Availability of substitutes, size of firm in relation to supplier.
• Bargaining Power of Customers: Availability of substitutes, reputation/size of firm.

III- Competitive strategy:

To be effective, organization goals, objectives, culture, and activities must be consistent with the
overall organization’s strategy. This means, all information systems in organization must facilitate
the organization’s competitive strategy. Each of the three competitive forces concerns the danger
of customers taking their business elsewhere.
An organization can be the cost leader, or it can focus on
adding value to its products or services to differentiate
them from others of the competition.
The organization can employ the cost or differentiation
strategy across an industry, or it can focus its strategy on a
particular industry segment.

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If for example, the competitive strategy is to be a cost leader, then business activities need to be
developed to provide essential function at the lowest possible cost.
A business that selects a differentiation strategy might choose to develop more costly systems, but
it would do so only if those systems provided benefits to their differentiation strategy that out-
weighted their costs.
Porter defined value as the amount of money that a customer is willing to pay for a resource,
product or service. The difference between the value that an activity generates and the cost of the
activity is called margin.

IV- Value Chains:

Linkages
A network of value-creating activity. That generic chain consists of 5 primary activities and 4
support activities. Each activity at each step needs value or it should not be part of the chain.
Value: Amount of money that customer is willing to pay for a product, service, or resource.
Primary act is business function that relate directly to the production of the organization’s products
or services. They are tangible and easier to measure value.
Inbound logistics: receiving and storing inputs to the product.
Operations/manufacturing: transforming inputs into the final product.
Outbound logistics: collecting, storing, and physically distributing the product to buyers.
Sales and marketing: inducing buyers to purchase the product and providing a means for them to
do so.
Customer service: assisting customer’s use of the product and thus maintaining the products
value.
Support activities are business function that assist and facilitate the primary activities. They
contribute indirectly to production. They are intangible costs/ benefits. The margin is an estimate.
Procurement: Finding vendors, setting up contracts, negotiating prices.
Technology: Research & Development.
HR: Training, recruiting, compensation.
Firm Infrastructure: Different branches/departments within the firm.

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Medium-sized drone manufacturer’s value chain--network of value-creating activities. The

difference between value an activity generates, and its cost is called margin. Linkages are
interactions across value activities.

V- Business Processes:
Implementing the value-chain in ways that are consistent with its competitive strategy.

Ex. Low cost vendor: Uses minimal/quick processes to support its value chain.
High cost vendor: Creates more elaborate & unique business processes to differentiate.

VI- Information System:

Applying the 5 components to implement the B.P. Providing a competitive advantage.
Product implementations:
• create a new product or service
• enhance products or services
• differentiate products or services
Process implementations:
• lock in customers and buyers (make it difficult or expensive for customers to switch to another
product: switching costs)
• lock in suppliers
• raise the barriers to market entry
• establish alliances
• reduce costs

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Chapter 7: Organizations and Information Systems

I- How do info systems vary by scope:

Personal info systems: they are used by a single individual and they have simple procedures. It is
easy to manage change to personal information systems, but you control the timing of that change.
Because you will be the sole user of the new system, if new procedures are required only you need
to adapt. And if there are problems, you can solve them by yourself.
Workgroup info systems: it is an information system that facilitates the act of a group of people.
They are sometimes called departmental information systems. Other workgroup info systems that
support a particular business function are called functional information systems. Typically, they
support between 10 and 100 users. The procedures for using them must be understood by all
members of the group. When problems occur, they almost always can solve them within the group.
Enterprise info systems: they are info systems that span an organization and support act of people
in multiple dept. 100 to 1000s of users. Procedures are formalized and extensively documented,
users undergo formal procedure training. Sometimes enterprise systems include categories of
procedure and users are defined according to level of expertise. The solution to problems usually
involve more than on department because they include many departments and thousands of users,
they are difficult to change.
Inter-enterprise info systems: they are information systems that are shared between two or more
independent org. 1000s users. solutions to problems require cooperation between many
organizations (contract, meeting …). They are exceedingly difficult to change.

II- Problems by departmental silos:

An information silo is the condition that exists when data are isolated in separate info systems.
They cause problem such as data duplication, inconsistency, data integrity, disjointed process, lack
of integrated enterprise information/ limited information, inefficiency and isolated decisions,
increase expenses.
Data are duplicated which causes data duplication. When applications are isolated, business
processes are disjointed. A consequence of such disjointed activities is the lack of integrated
enterprise information. This leads to inefficiency from making decisions in isolation.

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To solve them, integrate the data into a single database and revise app and processes to use them.
If it is not possible we can allow isolation but we need to manage it to avoid problems.

First, isolated data created by workgroup information systems are integrated using enterprise-wide
applications. Second, today, isolated data created by information systems at the enterprise level
are integrated into inter-enterprise systems using distributed applications (such as PRIDE).
Business process reengineering is the act of altering existing and designing new business
processes to take advantage of new info systems. Enterprise systems enabled creation of more
efficient or more effective processes.
Processes can be improved by the change of process structure and/or the change of process
resources. People use processes to organize and perform an activity to achieve an organization’s
goals. Two dimensions of process quality are efficiency and effectiveness.
Integrated data, enterprise systems create stronger, faster, more effective linkages in value chains.
It’s difficult, slow, exceedingly expensive. The key personnel determine how best to use new
technology. It requires high-level and expensive skills, and considerable time.

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III- How CRM, ERP, and EAI support enterprise systems:

Organizations can license software and obtain prebuilt procedures. Over time, three categories of
enterprise applications have emerged: customer relationship management, enterprise resource
planning and enterprise application integration. These inherent processes are predesigned
procedures for using software products and they save org from expensive and time-consuming
business process reengineering.
Customer relationship management (CRM):
It is a suite of applications, a database, and a set of inherent processes for managing all the
interactions with the customer from lead generation to customer service. Every transaction and
contact with the customer is recorded in the CRM database.
Components of a CRM application: 4 phases of customer life cycle: marketing, customer
acquisition, relationship management and loss/churn. This design eliminates duplicated customer
data and removes the possibility of inconsistent data.
It supports customer-centric organization.

Notice that components exist for each stage of the customer life cycle. As shown, all applications
process a common customer database. This design eliminates duplicated customer data and
removes the possibility of inconsistent data.
Marketing sends messages to target market to attract customer prospects. When prospects order,
they become customers who need to be supported. Additionally, relationship management
processes increase the value of existing customers by selling them more products.
Over time, organization loses some customers. When this occurs, win-back processes categorize
customers according to their value and attempt to win back and turn them into high-value
customers.

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CRM components exist for

each stage of the customer
life cycle. As shown, all
applications process a
common customer database.
This design eliminates
duplicated customer data and
removes the possibility of
inconsistent data. It also
means that each department
knows what has been
happening with the customer
at other departments.
Enterprise resource planning (ERP):
It is a suite of applications, a database and a set of inherent processes for consolidating business
operation into a single consistent computing platform. CRM plus accounting, manufacturing,
inventory, and human resources applications.
SAP offers industry-specific customize packages.
They are used to forecast sales and to create manufacturing plans and schedules to meet those
forecasts such as material, equipment…

Enterprise application integration (EAI):

ERP systems are not for every organization. Some find that converting from their current systems
to ERP system is too difficult, others are satisfied with their manufacturing application systems
and doesn’t want to change.
Companies for which ERP is inappropriate still have the problems of info silos and some choose
EAI to solve these problems. It is a suite of software applications that integrates existing systems
by providing layers of software that connect applications together:
• It connects system islands via a new layer of software/system
• It enables existing applications to communicate and share data

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• It provides integrated info

• It leverages existing systems leaving functional apps as is but providing an integration layer
on the top
• It enables a gradual move to ERP

EAI enables organizations to use existing silo applications while eliminating many serious
problems of isolated systems.
The layers of EAI software enable existing applications to communicate with each other and to
share data. When CRM applications send data to the manufacturing application system, the CRM
data sends it to an EAI software program. That EAI program makes the conversion and then sends
the converted data to the ERP system. The reverse action is taken to send data back from the ERP
to the CRM. The benefit of EAI is that it enables org to use existing applications while eliminating
many of the serious problems of isolated systems.

IV- Problems when implementing and upgrading enterprise systems:

Implementation is challenging, difficult, expensive, and risky. It is not unusual for enterprise
system projects to be well over budget and a year or more late.
Collaborative management: There is no clear boss, with no single manager, who resolves the
disputes that arise?
Requirement gaps: Few organizations today create their own enterprise systems from scratch.
Instead they license an enterprise product that provides specific functions and features and that
includes inherent procedures. But its never a perfect fit. Almost always there are gaps between the
requirements of the organization and the capabilities of the licensed application. The first challenge
is to identify the gaps. The second one is to decide what to do with the gaps once they are identified.
Transition problems: Transitioning to a new enterprise system is also difficult. The organization
must somehow change from using isolated dept systems to using the new enterprise system while
continuing to run the business. Such transitions require careful planning and substantial training.
Inevitably problems will develop.
Employee resistance: People resist change. Change requires effort and engenders fear. First
senior level management needs to communicate the need for the change to the organization and

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must reiterate that need throughout the transition process. Second, employees fear changes because
it threatens their self-efficacies which is a person’s belief that he can do a job. To enhance
confidence, they need to be trained and coached on the successful use of the new system. Thirdly,
changing to ERP will not affect employees directly so cash prices can be very effective.
New technology: Because of the cost saving of cloud-based computing, organizations would like
to move their enterprise systems to the cloud. But legal risk and business policy factors may make
such a move infeasible. The organization may be required to keep physical control of its data.
Most IT problems are workflow problems, not software problems”.
Someone with knowledge of business processes fixes the workflow problem. Need knowledgeable
business people comfortable working with technical people.

V- How Do Inter-enterprise IS Solve the Problems of Enterprise Silos?

Isolation of data causes problems.

A system is a distributed system because processing is distributed across multiple computing

devices. Standards such as http, https, html5, CSS3, JavaScript, and others enable programs on
varied and disparate devices to flexibly communicate with cloud servers and database, and
indirectly communicate with each other.

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Chapter E9: Enterprise Resource, Planning (ERP) Systems

I- Purpose of ERP systems:
ERP is a suite of applications called modules, a database and a set of inherent processes for
consolidating business operations into a single consistent computing platform. An ERP system is
an information system based on ERP technology. ERP systems integrate all of an organization’s
purchasing, human resources, production, sales, and accounting into a single system.
Integration through a centralized ERP database: Allowing the left hand of the organization to
know what the right hand is doing. Whatever happens in one department – the other departments
will be notified instantly
Allows real time updates, globally – whenever & wherever the transaction takes place.
Decisions made on a timely basis – using the latest data
Able to better meet requirements

All activity is processed by ERP application programs and consolidated data are stored in a
centralized ERP database.
It’s easy to draw a rectangle on a chart, label it “ERP application programs,” and assume data
integration takes all problems away. It is far more difficult to write those application programs and
design the database to store that integrated data. Even more problematic, what procedures should
employees and others use to process those application programs?

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II- ERP Challenges:

To write these application programs + to design a database that stores all the integrated data.
Many decisions to be made on who does what – this means procedures should be well thought-
out.
These are difficult, daunting process required to implement + requires high-skilled personnel.
Some organizations tried to develop their own ERP but they failed because it was too expensive
and difficult for them. But some ERP software vendors developed ERP applications that included
program code, databases and inherent processes that addressed issues as those just listed. Today
almost no organization develops its own ERP software, such systems are licensed from vendors.
Even with solutions provided by ERP vendors, the process of converting an organization from
their own systems to ERP is a long and expensive process. For most organization, it’s a multiyear
project that involves a lot of cash and hundreds of employees, consultants…

III- Elements of an ERP system:

The term ERP has been applied to a wide array of application solutions. Some vendors have
attempted to catch the buzz for ERP by misapplying the term to applications that are nothing more
than one or two integrated functional applications. It contains ERP Application programs, ERP
Business process procedures, ERP Databases, ERP Training and Consulting.
Supply chain: (procurement, sales order processing, inventory management, supplier
management, related activities)
Manufacturing: (scheduling, capacity planning, quality control, bill of materials, and related
activities)
CRM: (sales prospecting, customer management, marketing, customer support, call center
support)
Human resources: (payroll, time and attendance, HR management, commission calculations,
benefits administration, and related activities)
Accounting: (general ledger, accounts receivable, accounts payable, cash management, fixed asset
accounting)
An ERP solution is an info system and as such has all five components:
Hardware: Traditionally organization hosted ERP solutions on their own, in-house, networked
server computers. Such hosting is still case for many large ERP applications and for those ERP
applications that were installed years ago and for which the hardware infrastructure is stable and
well managed.
Increasingly however organizations are turning to cloud-based hosting in one of two modes:
PaaS (platform as a service): replace an org existing hardware infrastructure with hardware in the
cloud. Install ERP software and databases on that leased cloud hardware. The using organization
then manages the ERP software on the cloud hardware. Used by larger ERP systems.
SaaS (software as a service): acquire a cloud-based ERP solution. SAP, Oracle, Microsoft and
others offer their ERP software as services. The vendor manages the ERP software and offers it to
customers as a service. It’s used by smaller ERP systems.
The problem with cloud-based ERP hardware is that in some cases the law, industry practice, or
other constraints require the org to maintain physical control over its data or at least substantial
parts of it. In what is coming to be known as hybrid model, many ERP customers will store most

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of their data on cloud servers managed by cloud vendors and store sensitive data on servers they
manage themselves.
Software (ERP application programs):
ERP vendors design application programs to be configurable so that development teams can alter
them to meet customer requirements without changing program code. During the ERP
development process, the development teams sets configuration parameters that specify how ERP
application program will operate. There are no limits to how much configuration can be done. If a
new ERP customer has requirements that cannot be met via program configuration, then it either
needs to adapt its business to what the software can do or write.
This requires long-term maintenance costs and should choose an ERP solution that has applications
that function close to the organization’s requirements.
Data (ERP databases):
An ERP solution includes a database design as well as initial configuration data. It does not contain
the company’s operational data. During development, the team must enter initials values for that
data as part of the development effort.
Two types of program code:
Trigger: it is a computer program stored within the database that runs to keep the database
consistent when certain conditions arise. Keeps data consistent when certain conditions arise.
Stored procedure: is a computer program stored in the database that is used to enforce business
rules, which are configured by developers and business professionals.
Procedures (business process procedures):
It is a set of inherent procedures that implement standard business processes to accomplish
different functions. ERP vendors develop hundreds of procedures that enable the ERP customer
organization to accomplish its work using the applications provided by the vendor. New
procedures must be altered or designed if not quite fitting the organization. Some ERP vendors
call them process blueprints (the inherent process/ procedures). As with application programs, ERP
users must either adapt to predefined processes and procedures or design new ones.

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People: training and consulting

Because of the complexity and difficulty of implementing and using ERP solutions, ERP vendors
have developed training programs to prepare employees. SAP operates universities.
Training curriculum developed by vendors to prepare employees for implementation and usage.
Super Users are elected employees to be trained by the vendors to become in-house trainers in
training session called Train the Trainer. On-site Consulting for implementing and using ERP.

IV- How to implement and upgrade ERP systems:

To appreciate the magnitude of these tasks, consider that SAP blueprint contains over a thousand
process models. Organizations that are adopting ERP must review those models and determine
which ones are appropriate to them. Then, compare ERP models to models developed based on
their current practices.
Inevitably, some current-practice models are incomplete, vague, or inaccurate, so the team must
repeat existing process models. In some cases, it is impossible to reconcile any existing system
against the blueprint model. If so, the team must adapt, cope, and define new procedures, often to
the confusion of current employees.
• Review ERP system that is being adopted - Is it appropriate?
• Develop an As-is Model: Model of current business processes & procedures
• Compare as-is model to ERP process blueprints
• 2 ways to eliminate differences/remove inconsistencies:
Changing existing business process to match ERP’s
Altering ERP system
• Train users
• Conduct a simulation test to identify problems/glitches
• Implement: Convert previous model to new ERP syste,
Or update the system:
Once the differences between as-is processes and blueprints have been corrected the next step is
to implement the system but before that users must be trained on the new system. While the system
is being installed business runs as normal but it’s a difficult and challenging time for any
organization.

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V- ERP by industry type:

First major ERP customers were large
manufacturers.
Industry-specific solutions have become popular
ever since SAP constructed an auto-manufacturing-
specific ERP solution as a product offering.
It became easy for ERP vendors to go up the supply
chain + sell ERP solutions to distributors, etc.
ERP use by industry in manufacturing, distribution,
mining, materials, extraction petroleum, medical
care, utilities, retail, and education.

VI- ERP by organization size:

ERP was used by huge organizations that had resources and skilled personnel needed to
manage/accomplish and ERP implementation. Today, the ERP use spread downward from large
companies to medium and now is used by small organizations.
Small: Employ 1 or 2 IT specialists who manage the ERP system and the entire IS department.
Pressured during periods of ERP implementation. They are speared very thin and often are over
their heads while an ERP implementation.
Mid-sized: Expand IT from 1 person to a small staff
This staff is separated from senior management - Leads to misunderstanding and distrust.
Thus, the senior management must be committed to ERP solution.
Large: Have resources and skilled personnel to accomplish and manage an ERP implementation.
Large IT staff - Headed by a chief information officer CIO (business and IT professional). ERP
implementation part of strategic planning and requires full backing of entire executive group.
When IT management is isolated, the commitment is hard to receive.

VII- International ERP:

Most large companies are present all over the world thus the ERP application programs must:
• Contain several languages.
• Adapt to different cultures.
• Support different currencies.
• Manage international transfers of goods in inventories.
• Work effectively with international supply chains.
• Provide worldwide consolidation of financial statements.

VIII- ERP vendors market leaders:

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INFO 200 | Midterm Notes

SAP:
Classic SAP uses thick-client, client-server architecture.
SAP HANNA Enterprise Cloud, PaaS ERP.
Big problem: Cannot dramatically move out of classic SAP to cloud-based solutions, must focus
resources and attention on needs of current customers.
Infor:
Grew by acquisitions, sells many ERP products for many different industries. The products vary
in purpose, scope, and quality.
Serves midrange, higher-end small companies and lower-end large companies.
Infor Business Cloud (SaaS) or bare-bones offered as IaaS.
Sage:
International company began licensing accounting software in 1981. Via acquisitions, now
licenses enterprise applications including CRM and ERP. It offers numerous functional
applications in finance as well.
Primarily targets healthcare, construction, distribution, manufacturing, and retail industries.
Microsoft Dynamics:
AX, Nav, GP, Solomon, and Dynamics CRM.
Consolidating its offerings - AX to be true ERP product for larger organizations.
Dynamics CRM extensible to enable use for ERP and CRM. GP used as a platform for simpler
ERP solutions. CRM product online as SaaS, no full ERP implementation in the cloud.

IX- ERP in the Future:

• Problems of cloud-based ERP using the hybrid model, mobility will still present potentially
serious security threat
• Warehouse workers on loading dock, shipping department carry mobile devices that enable
processing ERP and other enterprise applications.
• Managers, decision makers, and knowledge workers will have similar applications on their
own phones or other mobile devices, devices they can access from work, other offices, the
street, or home.
• Increased vulnerability to criminal hackers, malicious insiders.
• Potential effect of the Internet of Things.
• Machines will employ ERP system to schedule their own maintenance.
• Factory floor milling machines able to order a replacement for a dull cutter, possibly made by
a 3D printer.
• Machines schedule routine and emergency maintenance for themselves.

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