ERP Glossary - I: Implementation to IT Consulting

Implementation

In ERP, implementation means the large-scale process of installing and configuring software, testing the solution, preparing the organization for change, training the end-users, and establishing a support organization to sustain the implementation.

Income Statement

One of the primary documents of a financial statement, the income statement indicates the profit or loss generated as the result of conducting business operations over a given period of time.

Incoterms

Incoterms are phrases - abbreviated to three- letter codes - that represent where ownership and responsibility for property changes hands as a result of a foreign trade business transaction. Ownership transfer can take place at the factory from where the goods are shipped, at the port when shipped, at the arrival port, or even at the final destination in the foreign country.

Installation (software)

Installation is the process of transferring computer programs, drivers, and plug ins to a computer.

Integrated Software

Integrated software refers to a collection of computer programs which share common data across functional boundaries. In an unintegrated system, different functional areas could use their local software to produce different answers to the same question - for instance, finance, supply chain, sales, and manufacturing could all produce independent and different forecasts. In an integrated software, there is only one version of the forecast that all four functional areas must use.

Interface (Computing)

In computer systems, an interface is the point of data exchange between two stand-alone programs. Integrated systems share one common set of master data and transactional history; interfaced systems share a few crucial data fields, but otherwise maintain separate and independent master data.

Inventory Control

The process of determining upper and lower threshold limits for inventory, and establishing appropriate actions to take to result in changing the inflow to or the outflow from an inventory category. For instance, if there is an excess of finished goods inventory, you might choose to curtail your manufacturing schedule (reduce the inflow) or run a sales promotion (increase the outflow), or both.

Invoice

A document which specifies the amount of money expected to be paid by a customer in exchange for the goods and services detailed on the document. An invoice typically contains at the minimum (1) the material or service purchased (2) the quantity of material or service (3) the price per unit of the material or service (4) the total charge for the material or service (5) a unique invoice number containing a date and (6) boiler plate information such as the seller's address, terms and conditions, freight routing, etc.

ISO Standards

The International Organization of Standards is a series of compliance requirements intended to demonstrate a stable and reliable manufacturing process. While extremely detailed, the ISO process boils down to three themes: "what is the business process?", "how is the business process documented?", and "what are the results of the business process?".

IT (Information Technology) Consulting

A job field in which subject matter experts from outside an organization are paid to advise IT leaders on strategies, contingencies, or solutions. Deciding whether you need an ERP consultant is crucial to your ERP strategy.

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Tom Stephenson

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Tom Stephenson

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