Summary of Chapter 8: RFID, Business Intelligence (BI), Mobile Computing, and Cloud
Computing
Objectives:
RFID: Understand its role in logistics and sales.
BI: Define and give examples of its uses.
In-Memory Computing: Explain its impact on BI.
Mobile Applications: Discuss their business importance.
Cloud Computing: Describe its growing significance for ERP providers.
SOA and Web Services: Explain their roles and components.
SaaS: Define and list its advantages and disadvantages.
Introduction:
ERP Systems: Critical for performing business tasks, traditionally run on a company's own systems,
focusing on managing business transactions.
Current Trends: Technologies like RFID, BI, cloud computing, and mobile technologies are
transforming data storage and delivery.
Radio Frequency Identification (RFID):
Definition: RFID is a tool for tracking items through the supply chain.
Components: RFID tags are small packages with a microprocessor and antenna.
Usage: Tags can be attached to products for tracking purposes.
Business Intelligence (BI):
Definition: BI encompasses applications and technologies for extracting and analyzing data to aid
decision-making.
Components: Includes data-mining tools and querying tools, often interactive and visual.
Market Growth: Significant recent growth due to increased demand for data analysis.
In-Memory Computing:
Data Structure: Data in a warehouse is structured as multidimensional cubes for quick analysis.
Challenges: Requires technical expertise and restricts data analysis flexibility.
Advancements: In-memory storage provides faster access and reduces costs, with data compression
enabling large volumes of data to be stored without aggregation.
Mobile Computing:
Trend: Increased use of smartphones and tablets.
Development: Mobile applications need to be compatible with various operating systems.
Business Decisions: Companies must decide on the use of mobile devices by employees, considering
both information provision and data sourcing.
Cloud Computing:
Definition: Delivery of software products via the Internet, accessed through web browsers or
lightweight applications.
Evolution: Represents the latest stage in computing and internet development.
NetWeaver:
Introduction: Launched by SAP in 2004, it's a collection of components supporting business
transactions over the Internet.
Components: Includes Enterprise Portal, Mobile Infrastructure, Business Intelligence, Master Data
Management, Exchange Infrastructure.
SOA: SAP’s service-oriented architecture aims to make business applications service-based,
facilitating easier and faster application addition and open standards usage.
Software as a Service (SaaS):
Definition: A delivery model where software is hosted by a provider and accessed via a web
browser.
Example: SAP Business ByDesign, an ERP system delivered via the cloud for small to medium-
sized companies.
Advantages: Lower initial costs, shorter implementation time, reduced need for IT support.
Disadvantages: Concerns include security, bandwidth, flexibility, and focus on technical aspects.
Summary Points:
Data Growth: RFID and mobile devices are significantly increasing data volumes.
BI Tools: Growing in sophistication, with in-memory computing enhancing speed and flexibility.
Cloud Computing: Software delivered via the internet, with SOA and Web services facilitating
application communication.
NetWeaver: SAP’s platform supports internet-based business transactions.
SaaS: Offers cost-effective ERP solutions but comes with security and other risks.
Decision-Making Exercise:
Cost Comparison: Analyzing costs of traditional ERP systems versus SaaS.
NPV Calculation: Using net present value to compare investment options, considering different
hurdle rates.
Recommendation: Based on the cost analysis, providing a recommendation to the CIO on the
preferred method for implementing an ERP system.
Answers to Exam Questions for Chapter 8: RFID, Business Intelligence (BI), Mobile
Computing, and Cloud Computing
1. Multiple Choice Questions:
1. Which of the following best describes RFID technology?
B) A tool for tracking items through the supply chain
2. What is the primary advantage of in-memory computing in business intelligence?
B) Faster data access and analysis
3. Which component is NOT part of SAP’s NetWeaver platform?
C) Data Warehouse Management
4. What is a major disadvantage of using SaaS?
B) Limited flexibility and control
2. Short Answer Questions:
1. Define RFID and explain its role in logistics and sales.
RFID (Radio Frequency Identification) is a technology used to track and manage
items through the supply chain. It involves attaching small tags with
microprocessors and antennas to products, which can then be tracked efficiently
throughout the logistics and sales processes.
2. How does business intelligence (BI) support decision-making in organizations?
Business Intelligence (BI) supports decision-making by providing tools and
technologies to extract, analyze, and visualize large amounts of data. This
analysis helps organizations identify trends, make predictions, and inform
strategic decisions, enhancing overall business performance.
3. What are the main challenges associated with using multidimensional data cubes in BI?
The main challenges with using multidimensional data cubes in BI include the
need for significant technical expertise to construct and manage the cubes and
the inherent restrictions on how data can be analyzed, limiting flexibility.
4. Describe the concept of cloud computing and its significance for ERP systems.
Cloud computing is the delivery of computing services, including software, over
the Internet. For ERP systems, cloud computing is significant because it allows
businesses to access and manage their ERP applications online, reducing the
need for on-premises infrastructure, lowering costs, and enabling scalability and
flexibility.
3. Essay Questions:
1. Discuss the impact of mobile computing on ERP systems and how companies must adapt to
these changes.
Mobile computing has significantly impacted ERP systems by increasing
accessibility and flexibility for users. Employees can now access ERP data from
smartphones and tablets, enhancing productivity and decision-making.
Companies must adapt by developing mobile-compatible applications, ensuring
data security on mobile devices, and creating policies for mobile device usage to
leverage these benefits effectively.
2. Explain the concept of service-oriented architecture (SOA) and its benefits and challenges in
ERP development.
Service-oriented architecture (SOA) is an approach where software components
are designed as reusable services that can be easily integrated and accessed over
a network. In ERP development, SOA offers benefits such as improved
flexibility, scalability, and the ability to quickly add new applications. However,
challenges include the complexity of implementation, the need for significant
upfront investment, and difficulties in determining the return on investment.
3. Compare and contrast the traditional ERP implementation model with the SaaS model. What
are the advantages and disadvantages of each?
Traditional ERP Implementation:
Advantages: Full control over the system, customization to specific
business needs, and no reliance on external providers.
Disadvantages: High initial costs, longer implementation times, and the
need for extensive IT support and maintenance.
SaaS Model:
Advantages: Lower initial costs, shorter implementation times, reduced
need for IT support, and easier updates and scalability.
Disadvantages: Limited flexibility and control, potential security
concerns, and reliance on the SaaS provider for uptime and support.
4. True/False Questions:
1. In-memory computing makes the use of multidimensional data cubes unnecessary.
True
2. SaaS solutions generally require a higher initial investment compared to traditional ERP
systems.
False
3. SAP NetWeaver facilitates the integration of diverse applications through the use of Web
services.
True
4. One of the disadvantages of cloud computing is that it often requires a large team of IT
personnel to manage.
False
