Ch. 7 Enhancing business Processes Using Enterprise Information

Question 1

order-to-cash

Answer 1

process of selling a product or service
create customer record → check credit → create order → allocate stock → pick, pack, and ship, → prepare and send invoice → collect payment

Question 2

procure to pay

Answer 2

processes associated with procuring goods from external vendors
negotiate price and terms → issue purchase order → receive goods → receive invoice → settle payment

Question 3

make to stock

Answer 3

associated with producing goods between different industries
procure inputs → schedule production → production → quality control → stock product

Question 4

make to order

Answer 4

raw materials, subcomponents and accessories are produced based on forecast
process sales order → design/engineer product → procure inputs → schedule production → production → quality control → ship product

Question 5

core activities

Answer 5

1. inbound logistics (receiving)
2. operations and manufacturing
3. outbound logistics (shipping)
4. marketing and sales
5. customer service

Question 6

support activities

Answer 6

business activities that enable primary activities to take place
administrative, infrastructure, HR, technology development, procurement

Question 7

value chain

Answer 7

core activities + support activities combined

Question 8

value system

Answer 8

three companies combine their value chains, forming a value system

Question 9

upstream information flow

Answer 9

consists of information that is received from another organization

Question 10

downstream information flow

Answer 10

relates to the information that is produced by a company and sent along to another organization

Question 11

standalone applications

Answer 11

systems that focus on the specific needs of individual departments and are typically not designed to communicate with other systems in the organization

Question 11

legacy systems

Answer 11

systems that are fast approaching or beyond the end of their useful life within the organization

Question 12

best of breed approach

Answer 12

using a suite of independent systems that are the best systems within their respective areas, allows organisations to maintain agility and quickly respond to changes in the business environment

Question 13

enterprise system

Answer 13

integrated suite of business application for virtually every business process, allowing companies to integrate data across functional areas on a company wide basis, not storing data across the org. but using an integrated database to provide a central repository

Question 14

internally focused systems

Answer 14

support functional areas, business processes, and decision making within an organization

Question 15

externally focused systems

Answer 15

help to streamline communications and coordinate business processes with customers, suppliers, business partners, and other who operate outside an org’s boundaries

Question 16

interorganizational system

Answer 16

key purpose: streamline the flow of information from one company’s operations to another’s

Question 16

best practices based software

Answer 16

enterprise systems that already have been customised for particular industries based on best practices and the data types and requirements of the specific industries

Question 17

customisation

Answer 17

provides either additional software that is integrated with the enterprise system or consists of direct changes to the vanilla application

Question 17

packaged software (off the shelf)

Answer 17

written by third party vendors for the needs of many different users and organisations, supporting standardised, repetitive tasks, such as word processing, payroll processing, or preparing taxes

Question 18

enterprise resource planning

Answer 18

ERP systems replace standalone applications by providing various modules based on a common database and similar application interfaces that serve the entire enterprise rather than portions of it

Question 18

business process management

Answer 18

a systematic, structured improvement approach by all or part of an org whereby people critically examine, rethink, and redesign processes to achieve dramatic improvements in one or more performance measures (quality, cycle time, or cost)

Question 19

ERP core components

Answer 19

1. financial management
2. operations management
3. HR management

Question 19

business process management steps (5)

Answer 19

1. developing a vision that specifies business objectives
2. identifying critical processes that are to be redesigned
3. understand and make the process easy
4. identify ways that IS can be used to improve process
5. design and implement a prototype of the new process

Question 20

choosing an ERP system

Answer 20

choose a system that will meet the unique requirements of the company,

Question 21

ERP extended components

Answer 21

support primary activities of the org for dealing with suppliers and customers, specifically, focus on supply chain management and customer relationship management

Question 22

ERP control

Answer 22

the locus of control over the computing systems and data contained in those systems as well as decision making authority

Question 23

ERP success

Answer 23

main objective of enterprise system is to help achieve competitive advantage by streamlining business activities within and outside a company

Question 24

ERP should

Answer 24

get help from outside experts, train users thoroughly, take a multidisciplinary approach to implementations, evolve the implementation