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02 - Accounting Information Systems 8e1 SOLUTIONS FOR...

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Accounting Information Systems, 8e 1 SOLUTIONS FOR CHAPTER 2 Discussion Questions DQ2-1 After the core of an ERP system has been implemented, any of the modules may then be implemented separately. What is the implication of being able to implement an ERP system on a piece-by-piece basis? ANS. An advantage of being able to implement individual modules is that you can choose best of breed software. Also, a partial implementation can be done more quickly and the benefits received earlier. The remainder of the implementation can proceed as needed and as resources permit. A disadvantage might be that you may not experience benefits of full integration and may need to create links between modules from different vendors. DQ2-2 The Cliffs Company is considering taking customers’ orders on its Web site. a. What information would Cliffs collect from the customer during this process? b. What information would need to come from Cliffs’ Web and back-end systems to complete the order? c. How would an enterprise system facilitate this exchange of information? ANS. a. Collect customer number or name. If this is not an existing customer, Cliffs would need customer address, contact information, and so on. Cliffs would also need to collect the product codes and quantities that the customer is ordering. b. Information needed may include open orders, previous orders (for preferences), credit status, requested item availability and promised delivery date, ship-to address, bill-to address. c. An enterprise system makes this process timely and seamless. The customer would not see or experience problems related to the collection and display of this data. Although this would be true of well-integrated legacy systems, an enterprise system should be able to exchange more information with a Web server in a timelier manner with a higher level of data integrity.
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2 Solutions for Chapter 2 DQ2-3 Periodically, you will read in the news where one company in the ERP industry acquired another company in that industry. Discuss the pros and cons of consolidation of the ERP software industry. ANS. Pros include enhanced functionality of individual products as vendors incorporate the features of several products into one. An organization can do one-stop-shopping for multiple packages with one vendor. This should lead to fewer problems when integrating between each vendor’s products. Large vendors are presumably more stable than the smaller, acquired vendors that would have been on their own. Cons include limited ability to shop and compare among competing products. An ERP system has limited capability to distinguish an organization from others in the industry (i.e., every player in an industry uses the same package).
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