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However, as more and more large companies began installing them, ERP vendors began targeting mid-sized and even smaller businesses. The initial wave of software-application development began in the s, when applications were developed for mainframe computers.

In those days, computing was expensive, so applications were designed to take as little space as possible. One shortcut that many programmers took was in the storage of dates, specifically the year. In order to solve this problem, applications would have to be updated to use four digits for years instead of two.

Solving this would be a massive undertaking, as every line of code and every database would have to be examined. This is where companies gained additional incentive to implement an ERP system. For many organizations that were considering upgrading to ERP systems in the late s, this problem, known as Y2K year , gave them the extra push they needed to get their ERP installed before the year ERP vendors guaranteed that their systems had been designed to be Y2K compliant — which simply meant that they stored dates using four digits instead of two.

This led to a massive increase in ERP installations in the years leading up to , making the ERP a standard software application for businesses. An example of a well-known CRM package is Salesforce. Many organizations must deal with the complex task of managing their supply chains. A supply chain management SCM system manages the interconnection between these links, as well as the inventory of the products in their various stages of development.

Just as with the personal computer, mobile devices such as tablet computers and smartphones also have operating systems and application software. In fact, these mobile devices are in many ways just smaller versions of personal computers.

A mobile app is a software application programmed to run specifically on a mobile device. As we saw in chapter 2, smartphones and tablets are becoming a dominant form of computing, with many more smartphones being sold than personal computers.

This means that organizations will have to get smart about developing software on mobile devices in order to stay relevant. These days, most mobile devices run on one of two operating systems: Android or iOS. In the fourth quarter of , Android was installed on Other mobile operating systems of note are Blackberry 3.

As organizations consider making their digital presence compatible with mobile devices, they will have to decide whether to build a mobile app.

A mobile app is an expensive proposition, and it will only run on one type of mobile device at a time. For example, if an organization creates an iPhone app, those with Android phones cannot run the application. Each app takes several thousand dollars to create, so this is not a trivial decision for many companies. One option many companies have is to create a website that is mobile-friendly. A mobile website works on all mobile devices and costs about the same as creating an app. We will discuss the question of whether to build a mobile app more thoroughly in Chapter Historically, for software to run on a computer, an individual copy of the software had to be installed on the computer, either from a disk or, more recently, after being downloaded from the Internet.

To understand cloud computing, we first have to understand what the cloud is. These service providers rely on giant server farms and massive storage devices that are connected via Internet protocols.

Cloud computing is the use of these services by individuals and organizations. You probably already use cloud computing in some forms. For example, if you access your e-mail via your web browser, you are using a form of cloud computing.

While these are free versions of cloud computing, there is big business in providing applications and data storage over the web. Salesforce see above is a good example of cloud computing — their entire suite of CRM applications are offered via the cloud. Cloud computing is not limited to web applications: it can also be used for services such as phone or video streaming.

Cloud computing has the ability to really impact how organizations manage technology. For example, why is an IT department needed to purchase, configure, and manage personal computers and software when all that is really needed is an Internet connection?

Many organizations are understandably nervous about giving up control of their data and some of their applications by using cloud computing. But they also see the value in reducing the need for installing software and adding disk storage to local computers.

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