Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
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.
Your email address will not be published. Required fields are marked *