Key Terms #s 2-5:
Enterprise resource planning system (ERP): a system that integrates individual traditional business functions into a series of modules so that a single transaction occurs seamlessly within a single information system rather than several separate systems.
Outsourcing: the practice of turning over responsibility for some or all of an organization’s information systems applications and operations to an outside firm.
Request for proposal (RFP): a document provided to vendors to ask them to propose hardware and system software that will meet the requirements of a new system.
Reuse: the use of previously written software resources, especially objects and components, in new applications.
Review Questions:
1) Describe and compare the six sources of software.
Information technology services firms – specialists come in and set it up
Packaged software providers – buy it and set it up yourself
Vendors of enterprise solutions software – crosses functional boundaries (unified information system)
Cloud computing - internet
Open source software – free software
In-house development – make your own or reuse
2) How can you decide among various off-the-shelf software options? What criteria should you use? You should assess your company’s needs and assets. Criteria consists of cost, functionality, vendor support, viability of vendor, flexibility, documentation, response time, and ease of installation.
3) What is an RFP, and how do analysts use one to gather information about hardware and system software? RFP is a document provided to vendors to ask them to propose hardware and system software that will meet the requirements of a new system. You can ask the vendor questions and get feedback from other customers to gather information.
5) What are ERP systems? What are the benefits and disadvantages of such systems as a design strategy? An ERP system is a system that integrates individual traditional business