Information Systems Development Overview
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Questions and Answers

What is a potential disadvantage of re-engineering business processes?

  • It can disrupt existing workflows and procedures. (correct)
  • It ensures that all business requirements are met.
  • It promotes integration of new software features.
  • It simplifies the upgrade process.

    • Which implementation strategy typically has lower time and cost requirements?

  • Customized implementation
  • Outsourcing to a vendor
  • Vanilla implementation (correct)
  • Integration of legacy systems with ERP

    • What is a key characteristic of customized ERP implementations?

  • They tend to be more expensive and time-consuming. (correct)
  • They align closely with vendor best practices.
  • They are easily integrated into new software versions.
  • They are generally completed within budget.

    • What is a potential drawback of maintaining legacy systems while adding ERP modules?

    <p>It often lacks overall integration.</p> Signup and view all the answers

    What does the 'best practices' methodology provide during the detailed design phase?

    <p>Models for applicable business processes to follow.</p> Signup and view all the answers

    What primary factor must organizations consider when outsourcing ERP activities?

    <p>The reliability and stability of the external vendor.</p> Signup and view all the answers

    What should organizations do with business processes that do not align with the ERP system?

    <p>Re-engineer them to fit the system.</p> Signup and view all the answers

    Which statement best describes the use of interactive prototyping in the ERP design phase?

    <p>It enhances user involvement and feedback.</p> Signup and view all the answers

    What is a primary phase included in the traditional systems development life cycle?

    <p>Implementation</p> Signup and view all the answers

    Why is automating the current system considered counter-productive?

    <p>It can inherit old problems and flaws.</p> Signup and view all the answers

    What is one of the new approaches to systems development mentioned?

    <p>Software packages</p> Signup and view all the answers

    During which phase are logical database designs created?

    <p>Systems design</p> Signup and view all the answers

    Which of the following is a characteristic of end-user development?

    <p>End-users create information systems using basic software.</p> Signup and view all the answers

    What is a critical step included in the planning phase of ERP systems design?

    <p>Needs assessment</p> Signup and view all the answers

    Which phase focuses on evaluating business justification in ERP systems planning?

    <p>Planning</p> Signup and view all the answers

    What is a significant drawback of traditional systems development life cycle?

    <p>It often involves excessive time and resources.</p> Signup and view all the answers

    Automating the current system can help eliminate old problems and flaws.

    <p>False</p> Signup and view all the answers

    The phases of the ERP systems design process include Planning, Requirements analysis, Design, Detailed design, Implementation, and Maintenance.

    <p>True</p> Signup and view all the answers

    Prototyping is necessarily faster than traditional systems development methods.

    <p>False</p> Signup and view all the answers

    End-user development is considered highly effective for large-scale system development.

    <p>False</p> Signup and view all the answers

    Requirements analysis is a phase in the traditional systems development life cycle.

    <p>True</p> Signup and view all the answers

    Creating logical database designs should occur after detailed designs have been refined.

    <p>False</p> Signup and view all the answers

    Traditional systems development life cycle includes an implementation phase.

    <p>True</p> Signup and view all the answers

    Tangible and intangible benefits are assessed during the requirements analysis phase.

    <p>False</p> Signup and view all the answers

    Re-engineering current systems can be resource-intensive and expensive.

    <p>True</p> Signup and view all the answers

    Process models and data models are tools used in detailed analysis of systems.

    <p>True</p> Signup and view all the answers

    Re-engineering business processes is typically less disruptive than customization.

    <p>False</p> Signup and view all the answers

    The 'vanilla' implementation approach is known for being challenging to implement and typically runs over budget.

    <p>False</p> Signup and view all the answers

    Maintaining legacy systems while integrating ERP modules can lead to an organization not fully benefiting from the ERP system.

    <p>True</p> Signup and view all the answers

    Interactive prototyping requires minimal user involvement during the detailed design phase.

    <p>False</p> Signup and view all the answers

    Customization of ERP systems usually leads to lower time and cost compared to 'vanilla' implementations.

    <p>False</p> Signup and view all the answers

    Best practices methodology helps to discard inapplicable business processes during system selection.

    <p>True</p> Signup and view all the answers

    Outsourcing ERP activities typically relies heavily on the reliability and stability of the organization itself.

    <p>False</p> Signup and view all the answers

    Changes in business processes may not be necessary when implementing ERP systems.

    <p>False</p> Signup and view all the answers

    The detailed design phase allows teams to identify areas not covered by the ERP system as candidates for customization.

    <p>True</p> Signup and view all the answers

    ERP systems allow for integrated marketing support systems and independent sales processes.

    <p>False</p> Signup and view all the answers

    Sales forecasting helps predict trends and analyze competitor information.

    <p>True</p> Signup and view all the answers

    The purpose of CRM software is solely to manage product pricing.

    <p>False</p> Signup and view all the answers

    Sales management control processes are intended to enhance resource allocation for maximizing revenue.

    <p>True</p> Signup and view all the answers

    An integrated CRM system requires an independent sales and marketing ERP module.

    <p>False</p> Signup and view all the answers

    Quality control systems are integrated into ERP systems to help eliminate problems faced by manufacturers.

    <p>True</p> Signup and view all the answers

    The benefits of ERP systems include the use of proprietary documents and singular databases.

    <p>False</p> Signup and view all the answers

    Less accurate information supplied to the sales force can lead to substantial operational problems for a company.

    <p>True</p> Signup and view all the answers

    The integration of sales models exclusively involves financial and accounting data.

    <p>False</p> Signup and view all the answers

    Sales management control processes can signal potential shortfalls in stock levels.

    <p>True</p> Signup and view all the answers

    Customers desire a consistent and ____ range of services.

    <p>True</p> Signup and view all the answers

    An online kiosk connects only to physical stores and not e-commerce websites.

    <p>False</p> Signup and view all the answers

    Having multiple channel shoppers reduces their lifetime value.

    <p>False</p> Signup and view all the answers

    Integrating disparate systems is a strategy employed after acquiring Quill.

    <p>True</p> Signup and view all the answers

    Reducing the number of direct linkages can lead to increased system complexity.

    <p>False</p> Signup and view all the answers

    Sales forecasting is a function of the CRM module in ERP systems.

    <p>False</p> Signup and view all the answers

    Standardized systems improve the effectiveness of web services.

    <p>True</p> Signup and view all the answers

    Maintaining competitive pricing scales is not a primary function of sales order processing systems.

    <p>False</p> Signup and view all the answers

    The sales and marketing modules of ERP are designed to support daily activities like prospecting.

    <p>True</p> Signup and view all the answers

    The CRM module serves as a back-end interface for customers.

    <p>False</p> Signup and view all the answers

    What advantage do multiple channel shoppers provide to a business?

    <p>They increase lifetime value.</p> Signup and view all the answers

    What is a key feature of the online kiosk mentioned?

    <p>It allows customers to build PCs to order.</p> Signup and view all the answers

    What outcome results from implementing an integration level between disparate systems?

    <p>Standardization of systems.</p> Signup and view all the answers

    Which of the following best describes the function of the CRM module in ERP systems?

    <p>It provides a front-end interface connecting customers to sales departments.</p> Signup and view all the answers

    What is a primary objective of the sales and marketing modules in ERP systems?

    <p>To manage sales order processing and daily activities.</p> Signup and view all the answers

    Which statement is true regarding the impact of standardized systems in an organization?

    <p>They can streamline operations and improve efficiency.</p> Signup and view all the answers

    How does a consistent and seamless range of services benefit customers?

    <p>It enhances customer experience and satisfaction.</p> Signup and view all the answers

    What is one of the key benefits of having integrated sales forecasting in ERP systems?

    <p>It aids in identifying advertising channels.</p> Signup and view all the answers

    What role does an order management system play in the integration of services?

    <p>It connects various business functions for efficiency.</p> Signup and view all the answers

    What mistake do some companies make regarding multiple channel shopping?

    <p>They underestimate its impact on lifetime value.</p> Signup and view all the answers

    What is a primary benefit of using integrated CRM software in ERP systems?

    <p>It helps identify sales prospects and manage customer relationships.</p> Signup and view all the answers

    What is the main purpose of sales forecasting in sales management?

    <p>To predict market trends and customer needs.</p> Signup and view all the answers

    Which of the following processes is directly influenced by sales management control systems?

    <p>Allocation of resources to maximize revenues.</p> Signup and view all the answers

    How do ERP systems differ from traditional systems regarding marketing support?

    <p>ERP systems enable integrated marketing support systems.</p> Signup and view all the answers

    What kind of information is typically managed through the sales order processing system?

    <p>Customer billing and order details.</p> Signup and view all the answers

    Which of the following is NOT an element of the CRM capabilities in ERP systems?

    <p>Product manufacturing specifications.</p> Signup and view all the answers

    What challenge was Atlantic Manufacturing facing with its existing business processes?

    <p>Lack of accurate information supplied to the sales force.</p> Signup and view all the answers

    Which module can be integrated with the sales model to improve overall business processes?

    <p>Quality Management.</p> Signup and view all the answers

    Which factor should be analyzed for making pricing decisions in sales management?

    <p>CPI and expected consumer disposable income.</p> Signup and view all the answers

    What is an essential feature of ERP systems that benefits sales and marketing modules?

    <p>Common database offering data integration.</p> Signup and view all the answers

    Study Notes

    Information System Development for Enterprise Systems

    • The development process for information systems is more complex when implementing large enterprise systems
      • The process involves planning, design and implementation stages
      • The traditional systems development life cycle (SDLC) is not always the best model to use

    Traditional Systems Development Life Cycle (SDLC)

    • The traditional SDLC involves a detailed analysis of the system using tools and techniques to determine problem areas.
      • This process includes a feasibility study, system analysis, system design, detailed design, implementation, and maintenance.
    • Automating current systems can be counterproductive.
      • Companies may inherit old problems and flaws
    • The SDLC provides an opportunity for companies to re-engineer their current systems.
      • The approach can be very time-consuming and expensive.

    New Approaches to Systems Development

    • Prototyping: Models are shown to end-users for feedback and guidance.
      • This approach is not necessarily faster.
    • End-user development: End-users create information systems using spreadsheets and databases.
      • This approach is not effective for large-scale development.
    • Software Packages: Software packages offer economies of scale in development, enhancement, and maintenance.

    The ERP Systems Design Process

    • ERP systems design process phases include: planning, requirements analysis, design, detailed design, implementation, and maintenance.

    Planning and Requirements Analysis

    • The planning phase involves conducting a needs assessment and business justification.
      • Tangible and intangible benefits are identified.
    • Requirements analysis: identifies business processes to be supported.
      • Vendors offer "best practices" models of supported functions.
      • A checklist of activities and factors is used to guide the process.

    Design Phase

    • Companies need to re-engineer business processes to fit the software.
      • The traditional SDLC defines new business requirements and implements conforming software.
    • Re-engineering versus customization:
      • Re-engineering can disrupt the organization by requiring changes in workflows and procedures.
      • Customization can make future upgrading difficult.

    Alternative Designs

    • "Vanilla" design: An easy to implement approach that involves following the vendor-prescribed methodology and employing consultants with specialized vendor expertise.
      • Vanilla designs are typically on time and on budget.
    • Customized design: This approach can increase time and costs.
      • Customized systems are not easily integrated into new versions.
    • Maintain legacy systems: Support specific functions with ERP modules.
    • This is a cost-effective approach, but the organization may not get the full benefit of ERP.
    • Limited integration is also a drawback.
    • Outsourcing: An external vendor operates the system.
      • ASPs provide on a time-sharing basis.
      • Outsourcing relies on the reliability and stability of the vendor.

    Detailed Design

    • The team selects the models, processes, and information to be supported.
      • The "best practices" methodology provides models.
      • Applicable business processes are selected, inapplicable processes discarded.
      • Those processes that do not match the system become the foundation for re-engineering.
      • Areas not covered are candidates for customization.
    • Interactive prototyping and extensive user involvement are critical.

    Enterprise Resource Planning (ERP) Systems Development

    • ERP systems are developed using a traditional systems development life cycle (SDLC) methodology.
    • The SDLC includes six phases: problem definition, feasibility study, system analysis, system design, detailed design, implementation and maintenance.
    • SDLC can take too much time and uses many resources.
    • ERP system design process includes six similar phases: planning, requirements analysiss, design, detailed design, implementation, maintenance.
    • The planning phase is crucial for identifying business needs and understanding the tangible and intangible benefits of an ERP system.
    • In the design phase, businesses re-engineer their processes to fit the ERP software.
    • Implementers choose between a "vanilla" design, which follows vendor-prescribed methodology, or a customized design, which offers flexibility but increases costs and complexity.
    • Other design considerations include maintaining existing legacy systems and adding ERP modules to support specific functions, outsourcing implementation, and using application service providers (ASPs) on a time-sharing basis.
    • The detailed design phase involves selecting models, processes, and information to be supported by the ERP system.
    • Businesses can select "best practices" methodologies or discard non-applicable processes.
    • Processes that don't match the system serve as the foundation for re-engineering.
    • The detailed design also includes areas not covered by the ERP software, which may require customization.
    • Interactive prototyping and extensive user involvement are critical elements during the detailed design phase.

    Objectives

    • Examine the sales and marketing modules in an Enterprise Resource Planning (ERP) system.
    • Understand the interrelationships between the business processes in a sales and marketing context.

    Atlantic Manufacturing Case Study

    • Atlantic Manufacturing faced challenges with their current order acquisition, operations, distribution, and accounting systems.
    • Their sales force received inaccurate information, customers requested shorter lead times, the credit system was inconsistent leading to collection problems, service calls lacked warranty information, and the quality control system was not integrated.
    • Competitive companies have eliminated these issues.

    Sales and Marketing Processes

    • Operational-level processes include:
      • Daily activities: Prospecting, telemarketing, direct mail.
      • Contact management: Databases, lists.
    • Support activities include:
      • Sales order processing system.
      • Point of Sale (POS) systems

    Sales Management Control Processes

    • Designed to allocate resources for maximum revenue generation.
    • Decisions are based on sales analysis including:
      • Comparison of sales data.
      • Analysis of revenues against benchmarks.
      • Listing of most profitable products, sorted by territory and salesperson.
    • Software is often used to:
      • Enable quicker analysis.
      • Identify trends.
      • Analyze salesperson performance.
      • Identify strong and weak products.
      • Signal potential shortfalls or excesses in stock levels.

    Additional Sales Management Applications

    • Sales forecasting: Predicts trends and determines customer needs in different market segments. It is based on sales history, customer demands, demographic trends, and competitor information.
    • Advertising: Identifies the most effective communication channels.
    • Product pricing: Decisions are supported by pricing models that consider the Consumer Price Index (CPI), expected consumer disposable income, production volumes, labor costs, and raw material costs.

    Sales and Marketing Modules

    • ERP systems offer distinct advantages over traditional systems by:
      • Providing integrated marketing support systems.
      • Offering integrated Customer Relationship Management (CRM) software.
    • Purpose of the modules: Identify sales prospects, process orders, manage inventory, arrange deliveries, handle billing, and process payments.
    • Benefits of the modules: Standardization of codes and documents, common database, audit trail, and data integration.

    CRM

    • CRM serves as a front-end interface between the customer and the sales and marketing departments.
    • It represents a comprehensive approach to customer relationship management.
    • CRM evolved from sales force automation software, equipping sales teams with management tools for:
      • Sales activity.
      • Sales and territory management.
      • Contact databases.
      • Leads generation and monitoring.
      • Product-specific configuration support.
      • Knowledge and information resource management.
    • CRM requires an underlying Sales and Marketing ERP module for operational-level data.
    • CRM data is accessible through a data warehouse.

    Module Integration

    • Sales model can be integrated with:
      • CRM
      • Financial Accounting
      • Materials Management
      • Human Resources
      • Quality Management
      • Controlling

    Featured Article: Staples and Integrated ERP

    • Staples is leveraging technology to gain a competitive advantage.
    • Customer expectations include a full range of services that are consistent and seamless.
    • Staples employs an online kiosk connected to their e-commerce website:
      • It integrates POS systems, order management systems, and supply chain functionalities.
      • Customers can access information about products and services, view inventory, and build PCs to order.
    • Multiple channel shoppers have significantly increased lifetime value.
    • Staples acquired Quill and implemented an integration level to connect two disparate systems.
    • Staples reduced the number of direct linkages by standardizing systems and utilizing web services.
    • A team reviews systems, users, and their needs.

    Summary

    • The sales and marketing modules in ERP systems support sales order processing, manage daily activities like prospecting, and handle contact management.
    • The system enables sales forecasting, identifies advertising channels, and helps maintain competitive pricing scales.
    • The CRM module acts as a front-end interface for customer interactions within the sales and marketing departments.

    Enterprise Resource Planning Systems: Sales and Marketing

    • Enterprise Resource Planning (ERP) systems have modules for sales and marketing.
    • Sales and marketing modules support sales order processing systems and manage daily activities, such as prospecting.
    • Sales and marketing modules help with contact management, including managing databases and lists.
    • To achieve maximum revenue, sales management control processes allocate resources based on analysis of sales, such as comparing sales, analyzing revenue against benchmarks, and identifying most profitable products.
    • Software is often used in sales management control processes to analyze sales data, sales performance, product performance and identify trends.
    • Sales forecasting, advertising, and product pricing are additional sales management applications.
    • ERP systems for sales and marketing support integrated marketing systems and provide Customer Relationship Management (CRM) software.
    • ERP systems help businesses identify sales prospects, process orders, manage inventory, arrange deliveries, handle billing, and process payments.
    • ERP systems for sales and marketing provide standard codes and documents, a common database, an audit trail, and allow for data integration.
    • CRM serves as a front-end interface between the customer and the sales and marketing departments.
    • CRM provides sales force management tools, such as sales activity and territory management, contact databases, leads generation and monitoring, product-specific configuration support, and knowledge and information resource management.
    • CRM requires an underlying Sales and Marketing ERP module for operational-level data. CRM data is accessible through a data warehouse.
    • The Sales and Marketing ERP module can be integrated with other modules like Customer Relationship Management (CRM), Financial Accounting, Materials Management, Human Resources, Quality Management, and Controlling.
    • Staples uses technology, including online kiosks and integrated ERP systems, to achieve a competitive advantage.
    • Staples uses their ERP systems to connect their e-commerce website, POS systems, and order management and supply chains.
    • Staples implemented integrated ERP systems to reduce the number of direct linkages, standardize systems, and use web services.
    • The sales and marketing modules for ERP systems are designed to support sales order processing and management of daily activities like prospecting and contact management.
    • They also enable sales forecasting, identifying advertising channels, and maintaining competitive pricing scales.

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    Related Documents

    Enterprise Resource Planning PDF
    ERP Sales and Marketing Modules PDF

    Description

    Explore the complexities of developing information systems for enterprise environments. This quiz covers traditional SDLC methods, the challenges of automating systems, and new approaches like prototyping. Gain insights into the planning, design, and implementation stages crucial for successful system development.

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