Overview

What is enterprise resource planning? Enterprise resource planning refers to a systematic process of integrating all the functions and departments of a company in an efficient computer network. The approach is cost efficient because the firm does not need to use various computer software to monitor and manage the functions and operations of the departments.

A typical enterprise resource planning system features software modules for supply chain management, customer relationship management, data warehouse, customization and access control. In addition to these, the system includes modules for human resources, financials, project management as well as manufacturing. Most international corporations use enterprise resource planning software because it is very reliable and efficient in managing the activities of firms concerning inventory, logistics, shipping, accounting and invoicing.

Advantages

Most international companies benefit from the use of an enterprise resource planning system. With the implementation of this approach, employees became more productive since they can easily get the data that they need by accessing the system. For instance, if a human resource department staff is doing a report about the payroll, the employee does not need to go to the finance department to get the data needed for the report. By accessing the system, the employee can find and download information that will be used in the report. When it comes to the security of data, companies have nothing to worry because most enterprise resource planning systems have security features, which are very important to prevent problems concerning embezzlement and industrial espionage.

Disadvantages

Like other computer systems, enterprise resource planning software has limitations. One of the disadvantages of using the software is it is costly. Additionally, the system affects the boundaries of power in corporations, which can cause troubles regarding lines of responsibility, accountability as well as employee morale. Another disadvantage of using the software is that it is very complex. In this regard, companies should form a reliable IT management team that will be in-charged with the effective and successful employment of the system. To avoid security breach, the team should regularly change the passwords to secure confidential data.

Auditable Companies

Any number of firms can go through this process. These include the data centers and BPO (business process outsourcing). Clearing houses and other financial institutions are also included.

Type I and Type II Reports

The auditor evaluation can be either one of these two methods. The first or Type I contains the auditor’s evaluation of the facts. These include an assessment of company policies and an appraisal of its methods. These reports are based on a single day.

Type II is similar in many ways. The biggest difference is that this SAS 70 reports cover a wider time span. Because the time span is longer, it is favored by more companies and clients.

The Auditor’s Report

Regardless of the type, the report is presented as the Service Auditor’s Report. These are handed out to the company and to its clients. Depending on the company, the results may be kept for company use and viewing only.

Both of the reports contain the auditors’ assessment and a description of the company’s controls. Type II also includes the operating efficiency, various tests and other reports. These are usually not part of Type I reports.

Frequency

There are no regulations when it comes to performing an audit. Even though the SAS 70 Type I report is for a day only, companies still do it once a year. Type II reports are usually done every six months. Some may prefer one report or the other. Most of the time though, companies get a Type I report every year and a Type II report twice yearly.

Advantages

Because it is the standard, a company gets plenty of benefits when subjecting themselves to this auditing. For one thing it creates a transparent business environment. By getting good results from the auditing company, it can also do wonders for the company’s reflection. A company that gets positive marks from SAS 70 can be very helpful in projecting a positive image.

Other Functions

Since its inception, more and more companies are availing of this service. Apart from security companies, firms involved with health care are also using this service. Owing to its clarity and independence it helps companies a great deal. The Service Auditor’s Report can be given to the company auditor. This in turn can make planning and assessing the financial situation easier.

By using the Service Report a company also saves on costs. There is no longer a need to get repeated requests from clients. With the single report, it can be given to all the clients and or customers. It promotes efficiency.

The SAS 70 has become indispensable for a lot of companies. Because its worthiness is unquestioned, it goes a long way towards helping a company go in the right direction.

Overview

What is change management? Known as a discipline of information technology service management, change management refers to standardized and systematic procedures that are used for proper and efficient handling of changes in computer infrastructure. The procedures are very important to control the configuration management database within training and test environments as well as the live environment.

Change management is usually implemented when problems regarding the information technology infrastructure occur. One of the conflicts that may cause the implementation of change management is legislative changes. The management processes is very useful in minimizing the effects of the problems on the functionality of the entire computer network.

Processes

When implementing changes in information technology infrastructure, computer users should have sufficient understanding on the processes in change management. The processes involve changes in hardware, communications software and equipment as well as system software. The processes also include the modifications or alterations in the maintenance and support of live computer infrastructure. To ensure that the processes will be efficiently implemented, it is important to have ideas on the activities associated with filtering changes, managing changes as well as providing management information. In addition to these, the activities should follow the steps important to closing and reviewing of Requests for Change.

Developing an Information Technology Change Management Program

There are important steps that should be followed to develop an information technology change management program. The initial step is to create a Request for Change. This should include the reason for implementing the program. Afterwards, make sure that the change is important to the productivity of a particular business operation. As soon as business alteration acceptance was obtained, conceptualize and start the development of a proposal. Present the change proposal to the Change Advisory Board. When the board approves the proposal, proceed with the implementation of the program. Evaluate the results and assess the limitations of the management program that was implemented.

Advantages

Enterprise Resource Planning is very essential to enhance corporate effectiveness in providing the demands and expectations of customers and clients. The integration of the functions, files, and activities of companies stored in software allows employees to access information that are significant to monitor the supply chain, as well as the production chain. Aside from this, ERP helps corporations save money since they do not have to allot a budget for the database management software that each department uses. Additionally, the approach can also lessen power consumption expenses. To maximize the implementation of this process, companies are encouraged to assign IT employees to maintain and provide support services for the ERP system.

Disadvantages

When firms fail to allot sufficient investment for the Enterprise Resource Planning software that they use, the approach can affect the functionalities and efficiency of departments. In this regard, it is important that corporations create a policy that will protect the files stored in the system to prevent experiencing the common problems associated with ERP.

One of the disadvantages of Enterprise Resource Planning is that the use of software that will manage the activities of a firm can affect the workflow, competitive advantage, and employee morale. In addition, the implementation of this approach is very expensive and very risky. Since the files, activities, and corporate reports are centralized, there is a high possibility that some important and confidential files could be lost.

Instructions to Migrate Data to an ERP System

Data migration is a significant and sensitive process related to the implementation of Enterprise Resource Planning in companies. Planning is important before firms start with this process. To ensure successful transfer of business files, these are the simple steps to follow.

1. Determine which of the corporate records should be transferred to the new system.
2. Prepare a timeline for data migration.
3. Create templates for the data.
4. Do not forget to freeze and secure computer tools that will be used in the migration.
5. Assess the efficiency and reliability of archiving settings to be implemented.

The First Version

What is ITIL? Information Technology Infrastructure Library is an informative documentation of policies, practices and concepts that are useful for computer operations and developments. The first version of ITIL was developed through the leadership of the Central Computer and Telecommunications Agency. This version has 31 volumes and it focuses on methodologies that governmental institutions can use in the efficient management of information technology infrastructure. In the 1990s, ITIL was widely adopted by information technology companies in Great Britain, which led to the publication of other versions of Information Technology Infrastructure Library.

The Second Version

To enhance the understanding of private and public agencies on information technology management, the ITIL version 2 was published in the late 1980s. Some of the topics covered in this set are service delivery, service support, security management as well as application management. Other topics included in this version are ICT infrastructure management, software asset management and ITIL small-scale implementation. This version is very helpful to readers who want to enhance their understanding on information technology management because it has a glossary of terms that are commonly associated with computer systems. Because of the increasing number of companies who use the ITIL version 2 as reference, the third version was introduced in the 2000s.

The Third Version

The third version of Information Technology Infrastructure Library focuses on five topics, namely service strategy, service design, service transition, service operation as well as continual service improvement. Many IT companies adopted the publications but there are some corporations that criticize the ITIL. One of the criticisms raised against the books include the argument that the frameworks of ITIL fall under business service management and not under information technology service management. Aside from these, some corporations complain that the books are costly. Above all, computer experts argue that ITIL is a holistic approach to IT practices, operations, computer network and computer software management as well as data management.