Hi this is the last multiple choice exam I have and this one only covers 3 chapters so I think it might be shorter

Core Concepts of Accounting Information Systems, Canadian Edition Chapter 13-1 Chapter 13: Developing and Implementing Effective Accounting Information Systems Introduction System Development Life Cycle Systems Planning Systems Analysis Detailed Systems Design Implementation, Follow-Up and Maintenance Chapter 13-2 Chapter 13: Developing and Implementing Effective Accounting Information Systems After reading this chapter you will be able to: 1. Describe various roles taken in systems studies 2. Discuss why systems analysts must understand company's strategic and operational goals 3. Be familiar with deliverables in systems analysis work, especially the systems analysis report 4. Create a plan to complete the analysis and design phases of a systems study Chapter 13-3 Chapter 13: Developing and Implementing Effective Accounting Information Systems 5. Describe a feasibility study and how to conduct it 6. Describe the costs, benefits, tools and techniques associated with systems design work 7. Evaluate alternative systems proposals and make a selection of choose to outsource 8. Be familiar with the activities required to implement and maintain a large IS Chapter 13-4 Introduction IT governance Ensures IT is used effectively, efficiently, and strategically IT strategy aligned with overall organization strategy Study of IT systems Planning and analysis through development Design, development, and implementation Maintenance of AIS applications Chapter 13-5 Systems Development Life Cycle Systems study Also called \"Systems Development\" Is formal investigation of an existing information system to find strengths and weaknesses Performed by In-house professionals (large organizations) Outside consultants (smaller companies) Chapter 13-6 Four Stages in the Systems Development Life Cycle Planning and investigation Organize a systems study team Preliminary investigation of current system Develop strategic plans for remainder of study Analysis Identify current information needs, strengths, and weaknesses Chapter 13-7 Four Stages in the Systems Development Life Cycle Design Design changes that eliminate or minimize weak points and preserve strengths Implementation, follow-up, and maintenance Resource acquisition Training employees Studies to identify new problems Maintain system (correct problems) Chapter 13-8 Systems Development Life Cycle Figure 13-1 Activities flow from one to another, also called \"Waterfall Model\" Chapter 13-9 Systems Studies and AISs Applications portfolio can contain Enterprise system Specialized information systems for functional areas Impacts of systems studies Changes work flows Alters data gathering and recording tasks Employee responsibilities How reward managers Chapter 13-10 Study Break #1 Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system? A. Planning and investigation B. Analysis C. Design D. Implementation, follow-up, and maintenance Chapter 13-11 Study Break #1 - Answer Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system? A. Planning and Investigation B. Analysis C. Design D. Implementation, follow-up, and maintenance Chapter 13-12 Systems Planning First phase of systems study Planning is focused investigation that: Approaches problems from a broad point of view Uses an interdisciplinary study team Ensures study team works closely with steering committee Systems approach: a broad viewpoint Aligns study with mission, strategic goals, and objectives Chapter 13-13 Systems Planning Study team and the steering committee Need interdisciplinary study team Must communicate closely with management Appoint steering committee to interface with management Investigating current systems Preliminary investigation to identify issues Consider alternatives Make recommendations to steering committee Chapter 13-14 Systems Analysis In-depth examination of system Become familiar with current system Identify inputs and outputs Identify strengths and weaknesses Make recommendations Study team activities Identify and understand system goals Perform a systems survey Report findings Chapter 13-15 Systems Analysis Procedures Figure 13-3 The logical flow of study team activities Chapter 13-16 Understanding Organizational Goals General systems goals apply to most of organization's IS Principles Benefits should exceed the costs Outputs help managers make better decisions System allows optimal access to information Flexibility to accommodate changing information needs Chapter 13-17 Understanding Organizational Goals AIS key to satisfying top management goals Provide long-range budget planning data Periodic performance reports for control Short-range operating performance Operating management systems goals Decisions cover well-defined, narrow organization areas Decisions are about current year Chapter 13-18 Systems Survey Work Systems survey Objective is to allow more complete understanding of current system and environment Understanding the human element and potential behavioral problems Employee resistance to change to gain wide user cooperation and support Chapter 13-19 Systems Survey Work Means of data gathering for study Review existing documentation Observe the current system in operation Use questionnaires (open and closed ended) and surveys Review internal control procedures Interview systems participants Chapter 13-20 Systems Survey Questionnaire Figure 13-4 Chapter 13-21 Data Analysis Analyze after completing survey work Create summary statistics Map through flowcharts Usually takes longer than preliminary investigation May provide interim reports to steering committee Final systems analysis report to steering committee contains team's recommendations Chapter 13-22 Evaluating System Feasibility Detailed investigation of potential systems includes evaluation of: Technical Feasibility What technical resources are required Hardware, software, technical skills of current employees Operational Feasibility Compatibility with current operating environment and capabilities of current employees Chapter 13-23 Evaluating System Feasibility Schedule Feasibility Estimate time needed for implementation Legal Feasibility Conflicts between system and federal, provincial or contractual legal obligations Economic Feasibility Cost-benefit analysis Difficulties estimating implementation costs Chapter 13-24 Study Break #2 The feasibility evaluation: A. Is completed prior to detailed systems design B. Includes economic, schedule, technical, legal and operational feasibility C. Both a and b are true D. Neither a nor b is true Chapter 13-25 Study Break #2 - Answer The feasibility evaluation: A. Is completed prior to detailed systems design B. Includes economic, schedule, technical, legal and operational feasibility C. Both a and b are true D. Neither a nor b is true Chapter 13-26 Study Break #3 In developing and implementing IT, the Study Team and Steering Committee must consider organizational goals. These include: A. General, technical and top management goals B. General, operating management and technical goals C.Top management, operating management and economic goals D.Top management, operating management and general systems goals Chapter 13-27 Study Break #3 - Answer In developing and implementing IT, the Study Team and Steering Committee must consider organizational goals. These include: A.General, technical and top management goals B.General, operating management and technical goals C.Top management, operating management and economic goals D.Top management, operating management and general systems goals Chapter 13-28 Steps in the Systems Design Phase Figure 13-5 Once Steering Committee approves the feasibility of a general system plan detailed systems design can begin Chapter 13-29 Detailed Systems Design Can include: Specifying system outputs, processing procedures, and inputs Prototyping The systems specifications report Choosing an accounting information system Outsourcing Chapter 13-30 Detailed Systems Design Figure 13-6 Chapter 13-31 Designing System Outputs, Processes, and Inputs System outputs Determine necessary outputs and format Create better outputs rather than copy old Classify by source, media, frequency Process design Examine how system produces outputs Identify necessary processing procedures Utilize top down design Chapter 13-32 Designing System Outputs, Processes, and Inputs Designing system inputs Identify and describe data elements the system must collect Specify how data items must be coded Determine source of each data element Capture computer readable data where possible Streamline data entry tasks Chapter 13-33 Prototyping Concepts Develop a simplified model of proposed system Scaled-down, experimental version Developed quickly, cheaply for user evaluation Usefulness and challenges Helps if needs not understood, requirements hard to define Not recommended for large or traditional AIS applications Chapter 13-34 Steps in Prototyping Figure 13-8 Prototype gives look and feel of system. Users experiment, provide feedback, and evaluate changes. Chapter 13-35 The Systems Specifications Report Systems specifications report Summary of design team findings Submitted to steering committee for review, comment, and approval Make-or-Buy alternatives Develop system within the organization Outsource development of system vs. buying canned software or a turnkey system Chapter 13-36 Choosing an AIS Selection criteria to consider when evaluating proposals from vendors Performance capability of each proposed system Costs and benefits of each proposed system Maintainability of each proposed system Compatibility of each proposed system with existing systems Vendor support Chapter 13-37 Choosing an AIS Making the Final Decision Point-scoring analysis Used to evaluate competing possible solutions Assign point value for each evaluation criteria Rate each proposal Highest point total determines the winner May include subjective rankings Selecting a finalist Consider intangibles such as reputations Chapter 13-38 Point-Scoring Analysis Figure 13-10 Chapter 13-39 Outsourcing Business process outsourcing Wide range of possible activities from routine functions to entire operation Typical contracts 5 to 10 years Knowledge process outsourcing Contract to perform research or other knowledgerelated work Takes advantage of lower wage rates but high education levels Chapter 13-40 Outsourcing Advantages Can focus on core competencies More efficient use of managerial time and resources Cost savings Disadvantages Inflexibility of contractual relationships Loss of control and understanding of IT Loss of IT based competitive advantages Chapter 13-41 Implementation, FollowUp, and Maintenance Implementation activities Managing IT implementation projects Postimplementation review System maintenance Chapter 13-42 Implementation Activities Possible steps Prepare physical site Determine functional changes on reporting structure and personnel relationships Select and assign personnel Train personnel Acquire and install computer equipment Establish internal controls via new business processes Chapter 13-43 Implementation Activities Possible steps Convert data files from old to more useful formats Acquire computer software Test computer software to ensure processing accuracy and completeness Convert to the new system using direct, parallel or modular conversion Connect with end users and conduct change management Chapter 13-44 Managing IT Implementation Projects Program evaluation and review technique (PERT) Identify tasks that must be completed before others start to identify critical paths Recognize areas where slack time occurs Gantt Charts Useful for scheduling and tracking activities Easy to understand, can be used with PERT Best suited for projects lacking complexity Chapter 13-45 PERT Figure 13-11 Red = critical path Slack time = (6 + 5 days on critical path) less the 6 days in Chapter 13-46 Gantt Chart Figure 13-12 Chapter 13-47 Managing IT Implementation Projects Project management software Operates on desktop or notebook computers Aids in the management of implementation projects Assist in using PERT and Gantt charts effectively Divides project into simpler activities Estimates time and cost of activities Chapter 13-48 Postimplementation Review Follow up and maintenance phase Reevaluate new system's effectiveness Talk with personnel about satisfaction levels Talk with end users about satisfaction levels Evaluate control procedures and effectiveness Observe employee work performance Evaluate computer processing functions Determine output schedule timing and effectiveness Chapter 13-49 System Maintenance System Maintenance Performed by IT function Continues tasks created by initial follow-up study Identify errors and anomalies Estimate costs of fixing items Perform necessary modifications Chapter 13-50 System Maintenance Costs Figure 13-13 Chapter 13-51 Study Break #4 The use of Prototyping in IT development has both advantages and disadvantages. In general, prototyping is most appropriate when: A.The design team is not pressed for time in creating a new system B.Users have a thorough understanding of their information needs C.There are high risks associated with developing an implementing an ineffective system D.System requirements are easily defined Chapter 13-52 Study Break #4 - Answer The use of Prototyping in IT development has both advantages and disadvantages. In general, prototyping is most appropriate when: A.The Design Team is not pressed for time in creating a new system B.Users have a thorough understanding of their information needs C.There are high risks associated with developing and implementing an ineffective system D.System requirements are easily defined Chapter 13-53 Study Break #5 A point-scoring analysis: A.Is a useful tool in conducting a feasibility analysis B.Helps the systems study team to decide whether or not to outsource their AIS C.Provides a systems study team with an objective means for selecting a final AIS D.Is a tool used for managing IT projects Chapter 13-54 Study Break #5 - Answer A point-scoring analysis: A.Is a useful tool in conducting a feasibility analysis B.Helps the systems study team to decide whether or not to outsource their AIS C.Provides a systems study team with an objective means for selecting a final AIS D.Is a tool used for managing IT projects Chapter 13-55 Core Concepts of Accounting Information Systems, Canadian Edition Chapter 14-1 Chapter 14: Accounting on the Internet Introduction The Internet and the World Wide Web XBRL - Financial Reporting on the Internet Electronic Business Privacy and Security on the Internet Chapter 14-2 Chapter 14: Accounting on the Internet After reading this chapter you will: 1. Understand some basic internet concepts 2. Appreciate why electronic communication is useful to accountants 3. Know why XBRL in important to financial reporting 4. Understand EDI and its importance to AISs 5. Understand some examples of cloud computing Chapter 14-3 Chapter 14: Accounting on the Internet 6. Know the differences between B2C and B2B e-commerce 7. Appreciate privacy and security issues associated with e-commerce 8. Know why businesses use firewalls, proxy servers and encryption techniques 9. Understand digital signatures and digital time-stamping techniques Chapter 14-4 The Internet and World Wide Web Internet addresses and software Intranets and extranets The world wide web, HTML, and IDEA Groupware, electronic conferencing, and blogs Chapter 14-5 Internet Addresses and Software The internet is collection of networks linked to the internet backbone Internet address begins as domain address or uniform resource locator (URL) (e.g., www.name.com) Each device has own Internet Protocol (IP) address (e.g., 207.142.131.248) Transmission Control Protocol (TCP) chops messages into data packets Chapter 14-6 Intranets and Extranets Intranets Same technology as the internet Internal to the organization Outsiders are unable to access information Extranets Enable selected external users to access intranets Utilize passwords or private data communications channels Chapter 14-7 The World Wide Web and HTML World Wide Web Multimedia portion of the Internet View using Web Browser Example of Web Browsers: Uses Hypertext Markup Language (HTML) as editing language for web pages Uses Hypertext Transfer Protocol (HTTP) as communications protocol to transfer web pages Chapter 14-8 HTML Code Figure 14-1 HTML defines format of a page Chapter 14-9 Groupware and Social Media Groupware Software allowing users to complete numerous tasks centered on collaboration Can exchange messages, schedule meetings and appointments, share and manage files Software include Exchange, Groupwise, Lotus Notes, and Oracle Webcenter Chapter 14-10 Groupware, Electronic Conferencing, and Blogs Instant messaging software Enables remote users to communicate in real time Supports electronic conferencing Knowledge management Strategy to develop and distribute information and expertise within organization Social media Allows connection with customers and others Challenges include security and finding value Chapter 14-11 Study Break #1 Which of the following is most likely to contain only numbers? A. Domain address B. URL address C. IP address D. Postal address Chapter 14-12 Study Break #1 - Answer Which of the following is most likely to contain only numbers? A. Domain address B. URL address C. IP address D. Postal address Chapter 14-13 Study Break #2 Which of the following enables users to view data with a web browser? A.Intranet B.Extranet C.Internet D.All of these Chapter 14-14 Study Break #2 - Answer Which of the following enables users to view data with a web browser? A.Intranet B.Extranet C.Internet D. All of these Chapter 14-15 XBRL: Financial Reporting on the Internet eXtensible Markup Language (XML) Similar to HTML Users define their own tags or \"extensible\" XML tags describe the data eXtensible Business Reporting Language (XBRL) Tags are standardized for business reporting purposes vs XML can be custom Chapter 14-16 XBRL Code Figure 14-2 Chapter 14-17 XBRL - Financial Reporting on the Internet XBRL instance documents and taxonomies XRBL instance documents are examples of a class of documents Defined by a standard Need to know standard tags and rules on use Taxonomies define tags to represent accounting and financial terms Chapter 14-18 How XBRL Affects Accountants Figure 14-3 Chapter 14-19 XBRL - Financial Reporting on the Internet Benefits of XBRL Transmit financial data in standard format Data items are uniquely defined Searching for tags is easier (IDEA) Saves rekeying for uploading to websites Data is self-checking Automatic and reliable exchange of financial information Companies are not constrained to specific formats Chapter 14-20 XBRL - Financial Reporting on the Internet The disadvantages of XBRL Requires new users to learn, and conform to, the standards of the language Evolving standards require conformity to changing specifications No requirement for auditors to provide assurance on XBRL filings Costs of transition Chapter 14-21 XBRL - Financial Reporting on the Internet Current status of XBRL XBRL Consortium in charge of developing standards Not consistently required yet in Canada but some large companies including XBRL in their filings Most accounting software now supports XBRL Chapter 14-22 Study Break #3 All of the following are markup languages that use edit tags except: A. HTML B. BYTE C. XML D. XBRL Chapter 14-23 Study Break #3 - Answer All of the following are markup languages that use edit tags except: A. HTML B. BYTE C. XML D. XBRL Chapter 14-24 Study Break #4 A document file containing XBRL tags is a(n): A. Extranet document B. Intranet document C. Instance document D. URL Chapter 14-25 Study Break #4 - Answer A document file containing XBRL tags is a(n): A. Extranet document B. Intranet document C. Instance document D. URL Chapter 14-26 Electronic Business Definition Conduct of business with computers and data communications Categories of electronic commerce Retail sales E-payments and e-wallets Electronic data interchange Cloud-computing services Chapter 14-27 Electronic Business Electronic Data Interchange (EDI) Transmitting information over high-speed communications channels Allows exchange of business documents Delivery can include internet or traditional fax Can include handwritten signatures (authenticity) Can include graphics and photographs Chapter 14-28 E-Payments and E-Wallets E-Payments Faster, easier, and safer way to handle online transactions E-payment service acts as intermediary (PayPal) E-Wallet Software storing consumer's personal information Customers pay for purchases by providing their e-wallet account numbers Chapter 14-29 E-Commerce and Retail Sales Overview Virtual stores to sell directly to customers Automated AISs allow customers to create own orders Problems with Internet Retail Sales Hard to determine legitimacy of web sites Reliance upon emails to communicate complaints Reliance upon suppliers for order fulfillment Click fraud to make advertising appear effective Customer privacy concerns Chapter 14-30 Advantages of Virtual Stores Figure 14-4 Chapter 14-31 Business-to-Business E-Commerce Definition Businesses buying and selling goods and services to each other over the Internet Advantages Shortens time from purchase to delivery Expanded to global variety of vendors Reduces processing costs Wider availability of real-time data Chapter 14-32 Cloud Computing Purchasing computing services over the internet. Includes: Processing Services such as software as a service (SaaS) and platform as a service (PaaS) Backup services to maintain copies of critical data Educational services for general interest, professional research, skill training and specialized web tutorials Chapter 14-33 Advantages of Cloud Computing Figure 14-5 Chapter 14-34 Cloud Computing: Backup Provider Example Figure 14-6 Chapter 14-35 Privacy and Identity Theft Identity theft Using another person's personal data that involves fraud or deception Senate Bill S-4 , PIPEDA and various provincial legislation designed to protect privacy and prevent identity theft Prevention Companies and individuals must exercise reasonable caution to protect personal information Chapter 14-36 Safeguarding Personal Data Figure 14-7 Chapter 14-37 Security Safeguarding electronic resources and limiting access to authorized users Access security is restricting access to bona fide users. Access authentication involves: What you have - plastic card What you know - unique information Who you are - fingerprints Chapter 14-38 Spam and Phishing Spam Unsolicited email messages Distracting, often illegal and increasingly costly Many messages bogus at best Phishing Websites requesting personal information from consumers Most information is typically stored in AISs Chapter 14-39 Social Networking Sites have evolved from user focus Commercial application of sites has privacy implications Organizations use to gauge public reaction to launch of new product or develop online presence Privacy concerns Potential employers search for \"red flags\" Bosses use to evaluate employees Chapter 14-40 Firewalls Purpose Guards against unauthorized access Stand-alone devices and/or software Two primary methods of protection Inclusion: access control list (ACL) Exclusion: shut out known threats Problems Cannot protect against denial-of-service attacks Spoofing Chapter 14-41 Firewall Example Figure 14-8a Chapter 14-42 Firewall Hardware Figure 14-8b Chapter 14-43 Intrusion Detection Systems Create records of unauthorized access Passive IDSs Log attempts and alert network administrators Reactive IDSs Detect potential intrusions dynamically Log off potentially malicious users Program firewalls to block messages from suspected source Chapter 14-44 Value-Added Networks Definition Private, point-to-point communication channels Usually created for security purposes Methods of creation Blank slate, create all from scratch Lease secure, dedicated transmission lines Can create a virtual private network (VPN) to \"tunnel\Core Concepts of Accounting Information Systems, Canadian Edition Chapter 15-1 Chapter 15: Accounting and Enterprise Software Introduction Integrated Accounting Software Enterprise-Wide Information Systems Selecting a Software Package Chapter 15-2 Chapter 15: Accounting and Enterprise Software After reading this chapter you will: 1. Know the evolution of accounting and enterprise software 2. Understand the differences among various types of accounting and enterprise software 3. Be able to explain how various functions in enterprise software work together 4. Understand the architecture of enterprise systems including their use of a centralized database Chapter 15-3 Chapter 15: Accounting and Enterprise Software 5. Be able to describe the relationship between business process reengineering and enterprise system implementation 6. Be able to assess the costs and benefits associated with enterprise systems 7. Recognize when an organization needs a new AIS 8. Understand how organizations go about selecting accounting and enterprise software Chapter 15-4 Introduction Advances in accounting software Initially AIS were simple bookkeeping systems Today are powerful and complex data collection programs that can accommodate specific needs Enterprise resource planning systems (ERP) Encompass needs of entire organization Manufacturing, sales and distribution, HR applications are often integrated with suppliers or customers through entire supply chain Chapter 15-5 Integrated Accounting Software Function Process all types of accounting transactions Transactions affecting general and special journals Modules Organizes transaction processing in modules and links modules Modules correspond to business processes and include accounts receivable, accounts payable, inventory, payroll, and others Chapter 15-6 Features of Integrated Accounting Software Programs Figure 15-1 Chapter 15-7 Small Business Accounting Software For small and medium-sized enterprises (SMEs) Inexpensive accounting programs available Even most basic packages provide cash flows, financial statements, and budget reports Can customize chart of accounts and some reports Popular software packages Quickbooks by Intuit Chapter Microsoft even offers a very basic package for free 15-8 Small Business Accounting Software Features of software vary by provider Challenge to learn how to get greatest value from product Consider if can handle anticipated transaction volumes Consider if scalable or able to grow with organization Consider implementation and training costs. Usually easier to move up with vendor's larger packages than learn new vendor's material Many packages feature Internet connectivity Chapter 15-9 Midrange and Large-Scale Accounting Software Utilization Consider transaction processing needs volume and complexity Can integrate with other solutions Popular software packages Microsoft Dynamics GP SAP Business One Epicor Sage software's MAS 90, MAS 200 Made2Manage Chapter 15-10 Midrange and Large-Scale Accounting Software Cost considerations Range from $2,000 to over $300,000 Features Multi-currency transactions Currency conversions Various modules and interfaces (CRM, HR) Deployment options (desktop, web-browser, or hosted solutions) Chapter 15-11 Midrange Accounting Software Integration Figure 15-2 Chapter 15-12 Specialized Accounting Information Systems Specially designed software for specific industries Schools, dental offices, pet retailers Can be designed as add-on modules for integrated software packages Independent developers create programs to interface with integrated packages Some packages include source code to allow customers to create own customization Chapter 15-13 Study Break #1 Which of the following accounting software programs would be appropriate for a small business (e.g., a sole proprietorship with 20 employees)? A.SAP B.QuickBooks C.NetSuite D.Oracle Chapter 15-14 Study Break #1 - Answer Which of the following accounting software programs would be appropriate for a small business (e.g., a sole proprietorship with 20 employees)? A.SAP B.QuickBooks C.NetSuite D.Oracle Chapter 15-15 Study Break #2 Mid-level accounting software: A.Can only be deployed through a server networked with desktop computers B.May be purchased in modules that match various business processes C.Will not be appropriate for a multinational company because these programs cannot handle foreign currencies D.Is generally inappropriate for a company operating in a specialized industry, such as retail or not-for-profit Chapter 15-16 Study Break #2 - Answer Mid-level accounting software: A.Can only be deployed through a server networked with desktop computers B.May be purchased in modules that match various business processes C.Will not be appropriate for a multinational company because these programs cannot handle foreign currencies D.Is generally inappropriate for a company operating in a specialized industry, such as retail or not-for-profit Chapter 15-17 Enterprise-Wide Accounting Software Solutions Enterprise resource planning systems (ERP) Also known as enterprise software and business application suites Integrated programs with central database Adopting typically forces user to reengineer business processes Popular products Microsoft Dynamics AX SAP All-in-One Sage MAS 500 Chapter 15-18 Enterprise System Functionality Basic ERP functions Integration among major business processes Order processing and fulfillment, manufacturing, purchasing and human resources Extended ERP systems Back-office functions primarily concern internal systems Front-office functions extend to CRM, e-business functions Chapter 15-19 Extended ERP Systems Supply chain management (SCM) allows customer and vendor interfaces Customer relationship management (CRM) can give integrated customer view across entire organization Business intelligence tools (BI) help high level analysis of data from ERP and other systems Partnership relationship management (PRM) systems help link organization to key partners Chapter 15-20 ERP System Integration Figure 15-3 Chapter 15-21 Supply Chain Example Figure 15-4 Chapter 15-22 The Architecture of Enterprise Systems Figure 15-5 Chapter 15-23 The Architecture of Enterprise Systems Systems configurations Most often licensed and run on company's system Some using hosted solutions help alleviate risks and save on purchase, upgrade and maintenance costs Hosted solutions may provide better security Centralized database Each data item stored once so prevents data redundancy Data immediately available to all business functions Chapter 15-24 The Architecture of Enterprise Systems Application interfaces Best-of-breed approach: implement ERP then interface it with best of breed \"bolt-ons\" such as CRM Enterprise application integration (EAI) to integrate legacy systems Internet portals Gateways to other web sites or services Enhances communication and productivity among employees, customers, partners and suppliers Chapter 15-25 Study Break #3 Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system? A.Must be a hosted solution B.Multiple databases C.Integration of business functions D.Low cost Chapter 15-26 Study Break #3 - Answer Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system? A.Must be a hosted solution B.Multiple databases C.Integration of business functions D.Low cost Chapter 15-27 Study Break #4 Components of an ERP's architecture typically include: A.A centralized database and application interfaces B.Internet portals and multiple databases C.A centralized database running on a mainframe computer D.Business intelligence and multiple databases Chapter 15-28 Study Break #4 - Answer Components of an ERP's architecture typically include: A.A centralized database and application interfaces B.Internet portals and multiple databases C.A centralized database running on a mainframe computer D.Business intelligence and multiple databases Chapter 15-29 Business Process Reengineering and ERPs ERP integration ERP often requires process adoption which entails reengineering business processes Encourages conformity with best practices Critical BPR success factors Planning and defined roles and scope High-level review of process Support from top management Chapter 15-30 Key Aspects of BPR Success Figure 15-6 Chapter 15-31 Risks and Benefits of Enterprise Systems Many ERPs fail Costs a major reason Hardware, software Data conversion Ongoing maintenance and upgrades Employee training Chapter 15-32 Risks and Benefits of Enterprise Systems But!! Compelling benefits include ability to Make enterprise level decisions Identify trends Understand interrelationships between units Eliminate redundant data Increase efficiency of financial reporting Monitor business processes Chapter 15-33 Risks and Benefits of Enterprise Systems Figure 15-7 Chapter 15-34 Sales Dashboard Example Figure 15-8 Can include information from outside sources as well. Would be then called an \"Enterprise Mashup\" Chapter 15-35 Anatomy of a Digital Dashboard Figure 15-9 Chapter 15-36 Measuring the Value of an ERP Figure 15-10 Often difficult to quantify impacts of ERP on a business. Chapter 15-37 Selecting a Software Package When is a new AIS needed? To comply with new regulations or laws To be able to analyze data, generate timely financial statements, identify opportunities How best to acquire a new AIS? Build a customized AIS from scratch? Prepackaged software? Use VAR services for purchase and more? Use a vendor consultant? Chapter 15-38 Summary of Software Packages Figure 15-11 Chapter 15-39 When is a New AIS Needed? Figure 15-12 Indicators include: Chapter 15-40