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Q1. What is an ERP system? What are the top three reasons companies choose to use it as the basis for designing their information systems?

Explanation

An ERP system is that system where all of the business can be streamlined in one bundled application where we can track the on hand quantity of an item or track it’s shipping information, calculate the cost involved for an order and finally the financial statement of an organization. All the above information we can just get from one application which refers to ERP.

There are multiple vendors in the market offering ERP software viz., SAP, Oracle and
Microsft. SAP is famous for its manufacturing modules. Top automobile manufacturing companies like Mercedes, Audi and Volkswagen use SAP for their Organizational needs. Oracle is fighting hand to hand with its E-Business software which can do the functionalities of an SAP ERP system at a reduced cost.

The reasons why companies prefer packaged software ERP is • Everything can be accessed in one application. • Less customizations are required than developing a whole new system. • Flexibility to integrate with other systems like barcode makes it a boon for organizations. • Single database is implemented in the backend which enables for centralized storage and backing up all enterprise data

Q2. You are an IT manager at a wholesale auto parts distributor. Your CEO has asked you to develop a new web-based order entry system to replace your existing legacy (a.k.a. older) system. There will be only minor changes in business requirements and functionality from the current system, necessary to deal with a web-based environment. Which systems development methodology would you use and why?

Explanation

I would choose agile methodology for the above scenario as the change request is a small one – replacing an old system with new web based order entry. I would sit with the end user with a team and start developing the new system which makes the

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