Client-Server Architecture and ERP Systems

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Questions and Answers

What is a significant limitation of in-house design in information systems?

Limits connectivity outside the company (correct)
Supports strategic decision-making
Increases data redundancy
Enhances external communication

What is one of the key features of a multi-module application software?

It encourages information fragmentation
It enables smooth information flow across boundaries (correct)
It operates independently without shared databases
It relies on paper-based records

What problem arises from having numerous distinct and independent databases?

Fragmentation limits communications (correct)
Reduced redundancy issues
Increased data integrity
Enhanced decision-making capabilities

What major drawback do traditional information systems with closed database architecture face?

Lack of integration across systems (D) Signup and view all the answers

What issue does paper-based data entry commonly face?

Multiple data entries are required (C) Signup and view all the answers

What is a long-term consequence of using an in-house design for databases?

Higher long-term maintenance costs (A) Signup and view all the answers

Which of the following describes a key advantage of an Enterprise Resource Planning (ERP) system?

Integrated applications with shared databases (C) Signup and view all the answers

What is a common challenge found with legacy systems within a business enterprise?

Limits flexibility and system adaptation (A) Signup and view all the answers

What is the primary function of Online Transaction Processing (OLTP)?

Facilitates day-to-day operational activities (D) Signup and view all the answers

Which of the following is a characteristic of Online Analytical Processing (OLAP)?

Provides real-time information for decision making (C) Signup and view all the answers

What does 'drill-down' functionality in OLAP allow users to do?

View data in increasing levels of detail (B) Signup and view all the answers

Which module is typically associated with transaction processing systems?

Business planning (B) Signup and view all the answers

What does slicing and dicing in OLAP allow the user to do?

Examine data from different viewpoints (C) Signup and view all the answers

What is a primary characteristic of a two-tier client-server architecture?

The client connects directly to a single server for both application and database duties. (B) Signup and view all the answers

In a three-tier client-server architecture, how does the client interact with the database server?

The client links to the application server, which then connects to the database server. (B) Signup and view all the answers

Which architecture is especially used in wide area networks (WANs)?

Three-tier architecture (D) Signup and view all the answers

What type of database configuration may involve selecting from thousands of tables?

Two-tier database configuration (B) Signup and view all the answers

What does bolt-on software provide in a client-server environment?

Specialized functionality software from third-party vendors (A) Signup and view all the answers

What type of data warehouse is mentioned that is capable of handling hundreds of gigabytes or terabytes of data?

Multi-dimensional database warehouse (B) Signup and view all the answers

What is a key function of Supply-Chain Management (SCM) in client-server systems?

It creates links between vendors, carriers, and logistics companies. (C) Signup and view all the answers

What is generally true about the data extracted for data warehouses?

It is extracted periodically from operational databases or public information services. (A) Signup and view all the answers

What is the primary purpose of transaction authorization in systems?

To validate transactions before acceptance (D) Signup and view all the answers

Why is segregation of duties important within systems?

To limit user access to certain functions and data (A) Signup and view all the answers

What is a key reason for implementing contingency planning?

To ensure business continuity in case of disaster (D) Signup and view all the answers

What does independent verification aim to improve in a system?

Overall performance level assessment (A) Signup and view all the answers

What is a distinguishing feature of PeopleSoft?

Its open, modular architecture for integration (D) Signup and view all the answers

What is NOT one of the five essential stages of the data warehousing process?

Loading the data into the operational database (C) Signup and view all the answers

What describes the 'Big Bang' approach in ERP implementation?

Complete switch from legacy systems in one event (D) Signup and view all the answers

Which of the following factors is crucial when choosing an ERP system?

Goodness of fit for the specific industry (C) Signup and view all the answers

What is a common area where high costs can arise during ERP implementation?

Training (B) Signup and view all the answers

What does the term 'cost overrun' refer to?

Unexpected costs exceeding budgeted amounts (C) Signup and view all the answers

What is one of the consequences of ERP reengineering in an organization?

Major changes in how business operations are conducted (C) Signup and view all the answers

What challenge can arise if an organization chooses the wrong ERP consultant?

Misalignment of project expectations (B) Signup and view all the answers

What is one possible consequence of user reluctance during ERP implementation?

Inertia that hinders change (D) Signup and view all the answers

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Study Notes

Two-Tier Client-Server Architecture

Common server manages application and database functions.
Primarily used in Local Area Networks (LANs).

Three-Tier Client-Server Architecture

Client connects to an application server, which then connects to a database server.
Commonly used in Wide Area Networks (WANs).

ERP with OLTP and OLAP Using Data Warehousing

Integrates Online Transaction Processing (OLTP) and Online Analytical Processing (OLAP) systems.
Uses a data warehouse for analytical processing and reporting.

Database Configuration

Involves selecting thousands of database tables and configuring system settings.

Bolt-on Software

Specialized functionality provided by third-party vendors.
Example: Supply Chain Management (SCM) software linking vendors, carriers, and logistics companies.

Traditional Information Systems Limitations

Relational or multi-dimensional database; can consume significant storage (GBs or TBs).
Data periodically extracted from operational databases or public sources.
Limited external connectivity due to in-house design.
Lack of integration between independent Information Systems (ISs) hampers internal communication.
Does not support strategic decision-making.
High long-term maintenance costs.
Restricts process re-engineering.
Similar to flat-file approach with data fragmented across applications.
Redundancy and anomaly problems due to numerous independent databases.
Paper-based systems require multiple data entries and create uncertainty about information status.

Traditional Information System Architecture

Depicts a closed database architecture with separate databases for customer, manufacturing, and procurement.

Enterprise Resource Planning (ERP) Systems

Integrated multi-module application software managing core business functions.
Key features include seamless information flow and a standardized environment with a shared database.

Core ERP Applications (OLTP)

Also known as Online Transaction Processing (OLTP).
Support day-to-day operational activities.
Handle mission-critical tasks through operational database queries.
Modules include sales & distribution, business planning, production planning, shop floor control, and logistics.

Business Analysis Applications (OLAP)

Also known as Online Analytical Processing (OLAP).
Decision support tool for management using complex data analysis.
Provides real-time information for improved performance and competitive advantage.
Includes decision support, modeling, information retrieval, ad-hoc reporting/analysis, and "what-if" analysis.

Data Warehousing

Supports management through analysis of complex data associations in data warehouses.
Enables data consolidation, drill-down, slicing, and dicing for trend analysis.
Data warehouse optimized for quick searching, retrieval, and ad-hoc queries.
Data warehouse is not mandatory for ERP but enhances competitive advantage.
Recommended architecture includes separate operational and data warehouse databases.
Data warehousing process: modeling, extraction, cleansing, transformation, and loading.

Data Warehouse System

Shows how data from legacy systems (VSAM files, hierarchical and network databases) are transformed into a data warehouse for analysis.

ERP Implementation Strategies

Big Bang: complete switch to ERP at once.
Phased-in: gradual implementation and integration of ERP units.

Challenges in ERP Implementation

Resistance to cultural change (user reluctance, need for management support).
Choosing the wrong ERP (goodness-of-fit, scalability).
Choosing the wrong consultant (thorough interviewing, clear expectations).
High costs and cost overruns (training, testing, integration, database conversion).
Operational disruptions (re-engineering leads to major business process changes).
Cost overruns involve exceeding budgeted amounts due to cost underestimation.

ERP Controls and Security

Transaction authorization (controls validate transactions).
Segregation of duties (programmed controls replace manual segregation).
User roles limit access to functions and data.
Supervision (requires technical and operational understanding).
Accounting records (risk of corrupted data from external and legacy systems, loss of paper trail).
Access controls (confidentiality, who has access to what?).
Data warehouse access (information sharing with suppliers and customers).
Contingency planning (business continuity in case of disaster, server backup plans).
Independent verification (shift from transaction-level to overall performance-level verification).

Popular ERP Vendors

Oracle (e-business focus, internet-based and client-server applications).
PeopleSoft (open, modular architecture for integration).
Baan (use of "best-of-class" applications).

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