Good Inventory Management Practices
Good inventory Management practices in the company help by adding value in terms of having control over and maintaining lean inventory. Inventory should not be too much or too less. Both the situations are bad for the company. However often we see that inventory is not focused upon by the management and hence lot of […]
Effective Product Design
Introduction Organization success is dependent on customer satisfaction and delight. Customer satisfaction is achieved through development of product and service, which have all attributes required by the customer. A success product or services do not only have attractive package design but should be also able to provide robust performance. Thus, product design must be practical […]
What is Productivity and Why it is Important to Corporates, Nations, and Professionals?
What is Productivity and Why it is so Important? We often hear the term Productivity, bandied about in economics and management textbooks and the popular press. Indeed, not a day goes by without this term popping up in myriad contexts. Further, when experts talk about falling or rising productivity, they stress its importance to everything […]
The Need for Operational Definitions of Metrics
While coming up with operational metrics one must not forget to begin by first clarifying and defining what they mean. This is because there is a good chance that there may be ambiguity regarding what the metric really means. To better understand how to come up with operational definitions, the following procedure must be followed. […]
Rags to Riches and Back: The Story of Chinese Boom and Bust
The 1970’s The story of China’s growth began in the 1970’s. Back then China was an extremely poor country with one of the lowest per capita income in the world. The population of the country was largely agrarian. The output of food grains was so small that starving to death was a possibility in China. […]
Kernel of an ERP system comprises of a technical module (set of tools) which provides a foundation to various application modules. These tools provide application installation and system administrations functionalities which enables efficient running of applications, within a secured environment. The technical module also provides high level COBOL and 4 GL programming languages (such as ABAP by SAP) which enable application customization and development. The important functions of analytic, report writing, queries, text management and integration with other systems such as office suite are administered through various tools contained in this module. Handling of logs and audit trails of system generated transactions is another functionality which is growing in importance, due to various regulatory requirements such as Sarbanes-Oxley, IFRC and Basel II.
Positioning of Technical modules: In addition to provide a base to various application modules, tools contained in the technical module deal with the hosting environment of the ERP system, namely RDBMS and Operating system. This is clarified in the following diagram:
Installation of an ERP system: The procedure for installation broadly comprises the following:
It may be mentioned that the job of installing an ERP system is done by competent tools experts with the help of detailed installation guides provided by the ERP vendor.
License Management: There are various types of licensing scheme offered by product vendors such as i) named users ii) package based users iii) concurrent users and iv) module based users v) power user (having access to development tools). The license management process is embedded in ERP systems for the purpose of copy protection mechanism and to regulate the commercial use of the system. However, for testing and demonstration purposes, vendors normally provides unprotected software with limited validity, which is needed to be validated and patched before a specified expiration date. The copy protection mechanism is also used by dealers to protect their customizations on the standard ERP software. The license management monitor is implemented by license daemon program.
Validation Process of License: After installation of ERP system under production environment, the software is permitted to be used for a limited period, which is counted from the date of the installation. After this period, the application software is blocked, unless it is validated by product developer.
The validation procedure begins when the requested system configuration is defined by the user immediately after the installation. A report of this configuration and a system generated security key is sent to product developer. Upon receiving the report, validation keys are sent by them which must be entered in the system by the user. The system is then initialized by setting the parameters and is ready for use.
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