Ch. 7 Flashcards
Functional Areas
Marketing and Sales
Supply Chain Management
Manufacturing and operations
Accounting and finance
Human Resources
Core Business Processes
Order-to-cash
The process of selling goods or services and collecting revenue for them
Procure-to-pay
The process of ordering goods or services and paying for them
Make-to-Stock
Manufacturing goods based on forecasts and stocked I warehouses
Make-to-Process
Raw materials are purchased based on forecast. However the order does not begin until it is placed by the customer
Order-to-cash Process and Functional Areas
Create customer record
Check the credit
Create the order
Allocate Stock
Pick, Pack, and Ship
Prepare and send invoice
Collect payment
Functional Areas:
[S]ales/Marketing
[A]ccounting/Finance
[M]anufacturing/Operations
Procure-to-Pay process and Functional Areas
Negotiate price and terms
Issue purchase order
Receive goods
Receive Invoice
Settle Payment
Functional Areas:
Supply [C]hain management
[A]ccounting/Finance
[M]anufacturing/Operations
Make-to-stock Process
Procure Inputs
Schedule Production
Production
Quality control
Stock Product
Make-to-Order
Process the sales order
Design product
Procure inputs
Schedule Production
Production
Quality Control
Ship Product
Value chain
Business activities that add value to the end product
Value System and Flows
Multiple value chains
Upstream: Info received from another organization
Downstream: Info produced by a company and sent to another organization
Standalone Applications/Legacy Systems
A system that focuses on a specific need of an individual department and is not designed to communicate with other systems within the organization
Enterprise System/Integrated Suite
All departments are integrated into one system
Internally Focused Systems
System that supports: [F]unctional areas
[B]usiness Processes
[D]ecision Making
Externally Focused Systems
Info system that coordinates business activities with customers, suppliers, business partners, and others who operate outside of an organization
How to improve business processes through Enterprise?
Packaged Software/Off the shelf software
-Software designed by a third party vendor
Custom Software
-Software programs designed for a companies specific needs
Modules
-Enterprise systems are designed in modules with components that can be selected as needed (designed around functional areas)
Business Process Management
A systematic improvement approach that examines to redesign business processes to achieve dramatic results. Ex, quality, cycle time, or cost
Enterprise Resource Planning (ERP)
A type of info system that integrates business activities across departmental boundaries
