Marketing Channel Systems – Meaning and Important Concepts
Introduction The last two decades have changed the way business is getting conducted. Some businesses are still using traditional channel systems but advent of the Internet has revolutionized distribution channels. Companies are changing business models to leverage Internet advantage. With open proliferation of information, customer expectations are reaching new heights. Companies need to figure out […]
The Argument against Planned Obsolescence
Planned obsolescence is often considered to be a part of the capitalist ideology. The supposed logic behind planned obsolescence is that capitalist companies put inferior components in their products. As a result, these products do not last as long. Since the products break down sooner, the customers are forced to buy new products. Opponents of […]
The New NAFTA Deal
Canada and Mexico are the second and third biggest trade allies for the United States. Historically these nations have had a healthy relationship with very few trade disputes. This is the reason why the North American Free Trade Agreement, i.e. the NAFTA was said to be successful. However, President Trump has been extremely critical of […]
Innovation in the Digital Age: Some Issues and Observations
What is Innovation and how did it evolve? Innovation is commonly known and defined as the ability or skill to improve existing processes and to come up with a better way of doing things. On the other hand, the invention is understood to be an entirely new way of doing things. Thus, whereas innovation is […]
The Drivers of Globalization: Friedmans Flatteners
The famous author and cheerleader for globalization, Thomas Friedman, in his book The World is Flat identified some key drivers of globalization. He called these factors the flatteners to denote the premise of the book that these factors were responsible for the flattening of the world. In other words, globalization has ensured that all countries […]
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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