Chapter 7

Question 1

Order-To-Cash Process

Answer 1

The process associated with selling a product or service

Question 2

Procure-To-Pay Process

Answer 2

The process associated with procuring goods from external vendors

Question 3

Make-To-Stock Process

Answer 3

Goods are produced based on forecasts and are stocked in a warehouse; sales orders are then fulfilled from inventory

Question 4

Make-To-Order Process

Answer 4

Raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received

Question 5

Core Activities

Answer 5

Include inbound logistics, operations and manufacturing, outbound logistics, marketing and sales, and customer service

Question 6

Support Activities

Answer 6

• Business activities that enable the primary activities to take place
• Include administrative activities, infrastructure, human resources, technology development, and procurement

Question 7

Value System

Answer 7

Information flows from one company’s value chain to another companies value chain

Question 8

Upstream Information Flow

Answer 8

Consists of information that is received from another ogranization

Question 9

Downstream Information Flow

Answer 9

Information that is produced by a company and sent along to another organization

Question 10

Stand-Alone Applications

Answer 10

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

Question 11

Legacy Systems

Answer 11

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

Question 12

Enterprise-Wide Information System (Enterprise System)

Answer 12

An integrated suit of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company wide basis using one large database

Question 13

Internally Focused System

Answer 13

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

Question 14

Externally Focused Systems

Answer 14

Coordinate processes with customers, suppliers, business partners, and others who operate outside an organization’s boundaries

Question 15

Inter-organizational System (IOS)

Answer 15

A system that communicates across organizational boundaries

Question 16

Packaged Software (Off-The-Shelf Software)

Answer 16

Applications written by third-party vendors for the needs of many different users and organizations

Question 17

Custom Software

Answer 17

Applications that are designed and developed exclusively for a specific organization

Question 18

Modules

Answer 18

• Components that can be selected and implemented as needed

- Each module is designed to replace a legacy system

Question 19

Vanilla Version

Answer 19

The features and modules that an enterprise system comes with out of the box

Question 20

Customization

Answer 20

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

Question 21

Best Practices

Answer 21

Reflect the techniques and processes identified with experience and research that have consistently shown results superior to those achieved with other means

Question 22

Business Process Management

Answer 22

Systematic, structured improvement approach by all or part of an organization whereby people critically examine, rethink, and redesign business processes to achieve dramatic improvements in one or more performance measures

Question 23

Enterprise Resource Planning (ERP)

Answer 23

Applications that integrate business activities across departmental boundaries

Question 24

ERP Core Requirements

Answer 24

Support the important internal activities of the organization for producing their products and services

Question 25

ERP Extended Components

Answer 25

Support the primary external activities of the organization for dealing with suppliers and customers

Question 26

Service-Oriented Architecture (SOA)

Answer 26

Business processes are broken down into individual components

Question 27

Web Services

Answer 27

Allow data to be accessed without intimate knowledge of other organizations’ systems, enabling machine-to-machine interaction over the internet