IT1901 Technology in the Industry PDF

IT1901 Technology in the Industry Definition of Technology Technology is the application of scientific knowledge for practical purposes, especially in the industry. It includes machines like computers, techniques, processes, and programs. Examples of tech...

IT1901 Technology in the Industry Definition of Technology Technology is the application of scientific knowledge for practical purposes, especially in the industry. It includes machines like computers, techniques, processes, and programs. Examples of technology can be found in homes and personal spaces, industries, businesses, and the medical profession. Technology surrounds the modern life everyone has today. Information technology (IT) is the study and use of systems, especially computers, for storing, retrieving, and sending information. Internet of Things (IoT) Internet of Things (IoT) refers to the connection of devices, such as computers, smartphones, cars, and even kitchen appliance, to the Internet. IoT device is any standalone Internet-connected device that can be monitored and/or controlled from a remote location; while an IoT Ecosystem is a complex interconnected system where it allows different components that enable businesses, governments, and consumers to connect to their IoT devices. Parts of IoT Ecosystem 1. Entity – It includes business, governments, and consumers. 2. Physical Layer – This is the hardware that makes an IoT device, including sensors and networking gears. 3. Network Layer – This is the Internet communication layer responsible for transmitting the data collected by the physical layer to different devices. 4. Application Layer – This includes the protocols and interfaces that devices use to identify and communicate. 5. Remotes – These enable entities to connect and control IoT devices. 6. Dashboard – It displays information about the IoT ecosystem and is generally housed on a remote. 7. Analytics – It is the software system that analyzes the data generated by IoT devices. 8. Data Storage – This is where data from IoT device is stored. Business Process Automation (BPA) Business process automation (BPA) is the process of managing data, information, and processes to reduce costs, resources and investments. BPA increases productivity by automating key business processes through computing technology. This process is geared toward implementing software applications to automate routine business tasks through initiation, execution, and completion while achieving enterprise-wide workflow efficiency. An enterprise resource planning (ERP) system is often conceived as a BPA’s implementation outcome. Enterprise Resource Planning (ERP) Enterprise resource planning (ERP) system refers to a business system and software package which integrate and streamline data across the company into one (1) complete system to support the needs of the entire enterprise. It is designed to enhance all aspects of operations by taking processes and functions that were previously disjointed, supported by various legacy systems, and seamlessly integrating and coordinating them. Legacy systems are older, standalone, diverse systems which were used by the business industry. These systems were created individually to satisfy one (1) specific area of business alone. EVOLUTION AND TREND OF ERP ERP History Engr. Ford Whitman Harris developed the Economic Order Quantity (EOQ) Model, a paper-based 1913 manufacturing system for production scheduling Toolmaker Black and Decker is the first company to adopt a Material Requirements Planning 1964 (MRP), a software-based integrated information system designed to improve productivity for business. MRP was the result of the combination of EOQ concepts and mainframe computers. 01 Handout 1 *Property of STI  [email protected] Page 1 of 2  IT1901 MRP II was developed. It featured modules as a key software architectural component and integrated core manufacturing components, which include purchasing, bill of materials, scheduling, and contract management. 1983 As computer technology evolved through the 1980s, concepts like MRP II were developed to handle business activities beyond manufacturing, incorporating finance, customer relationship management, and human resources data Gartner, Inc., a leading technology research and advisory company, coined this new category of 1990 business management software, Enterprise Resource Planning (ERP). From the 1990s until the beginning of the 21st century, ERP adoption proliferated as more 21st Century organizations relied on it to streamline core business processes and improve data visibility. ERP Today As the use of ERP rapidly grows in the industry, the cost of implementing an ERP system has begun to climb as well. Not only in terms of hardware’s and software’s expensive capital investments, but it often requires additional costs for custom coding, consultants, and training nowadays. Concurrently, the ERP technology has evolved to embrace the Internet. It integrated new features and functionalities such as product life cycle management (PLM), supply chain management (SCM), and customer relationship management (CRM). ERP has also entered the use of cloud services. Software-as-a-service (SaaS) is a software licensing model in which access to the software is provided on a subscription basis, with the software being located on external servers rather than on servers located in-house. The cloud offers a more affordable and alternative workaround for ERP, which lowers both operational expenses and capital expenses. CHARACTERISTICS OF ERP The distinctive characteristics of ERP are as follows: Transforms an enterprise into an information-driven enterprise Fundamentally models a process-oriented enterprise Enables a real-time enterprise Elevates information technology strategy as part of the business strategy A mass-user-oriented application environment. WHEN DOES A COMPANY NEED AN ERP SYSTEM? 1) Desire for growth There are existing process and systems which might not be able to manage an increasing number of end users and transactions within the company. An ERP system is highly suggested for a growing company because it can handle and standardize the continuous growth of processes and integrated data across the organization. 2) Too many business systems supporting processes Running various business systems in a company to support different processes can cause confusion and inefficient workflow within the organization. Different systems in the company also mean different IT maintenance team per system. Additionally, each system’s upgrade can cost huge monetary allotment for the company. Therefore, a company needs an ERP system to have an organized, effective, and efficient workflow within the organization. 3) Business lacks compliance Government and institutional requirements continue to grow and evolve. Navigating through numerous legal, regulatory, and supply chain mandates can be complicated and time-consuming. With the help of an ERP system, the reports, accounting standards, and documentation can be done satisfactorily. References: Bradford, M. (2015). Modern ERP: Select, implement, and use today’s advanced business systems (3rd Ed.). North Carolina, USA. Business process automation (n.d.). In Techopedia. Retrieved from https://www.techopedia.com/definition/671/business-process-automation-bpa Kale, V. (2016). Enhancing enterprise intelligence: Leveraging ERP, CRM, SCM, PLM, BPM, and BI. USA: CRC Press Taylor & Francis Group. Kenton, W. (2017, November 08). Software as a Service – SaaS [Web log post]. Retrieved from https://www.investopedia.com/terms/s/software-as-a-service-saas.asp Kenton, W. (2018, April 09). Materials Requirements Planning (MRP) [Web log post]. Retrieved from https://www.investopedia.com/terms/m/mrp.asp Meaning of Technology (n.d.). In Oxford Dictionaries. Retrieved from https://en.oxforddictionaries.com/definition/technology Meola, A. (2018, May 10). What is the Internet of Things (IoT)? Meaning & definition [Web log post]. Retrieved from https://www.businessinsider.com/internet-of-things-definition What is ERP? (n.d.). In Oracle. Retrieved from https://www.oracle.com/applications/erp/what-is-erp.html 01 Handout 1 *Property of STI  [email protected] Page 2 of 2