MIS Test 2 (Chapter 1)

Question 1

The Global Business Environment

Answer 1

• Companies are no longer limited to their local markets.

Question 2

Why are design, manufacturing, materials, assembly, service, etc., being carried out in different parts of the world?

Answer 2

• Inexpensive labor
• Knowledge
• International policies

Question 3

What are the consequences of globalization?

Answer 3

• As a company’s market expands, so do the number and types of firms with which it competes.
• Has put pressure on companies to be more efficient and effective, part of which involves developing strategies to tightly integrate their operations.

Question 4

What is the information revolution?

Answer 4

• Increased use of information and communication technologies (ICT) – such as the internet and computer-based information systems – to create, delivery, and use information.
• Allows global enterprise to share information quickly and coordinate business processes.

Question 5

Knowledge Worker

Answer 5

• Increasing dependence on information to do their work.
• Uses ICT to create, acquire, process, synthesize, disseminate, analyze, and use information.
• non routine, non repetitive
• Uses structured and unstructured information from multiple sources.
• Must have a thorough understanding of the business processes that occur across different areas of the company (i.e., the big picture)

Question 6

Examples of a knowledge worker and their key skills

Answer 6

• Examples: sales executive, production managers, product managers, financial analysts
• Key skills: Strategic thinking ( big picture, process view), information literacy (find and use needed information), communication and collaboration (project teams)

Question 7

Examples of a task worker

Answer 7

• Customer service representatives, accounting clerks, insurance claims processor
• Very routine, narrowly focused, and structured

Question 8

A basic procurement process

Answer 8

1. Warehouse - create requisition (purchase requisition)
2. Purchasing - create and send purchase order (purchase order)
3. Warehouse - receive shipment (packing list, goods receipt document)
4. Accounting - receive invoice (invoice), send payment (payment)

Question 9

A basic production process

Answer 9

1. Warehouse - request production (planned order)
2. Production - authorize production (production order, material withdrawal list)
3. Warehouse - issue raw material game (material withdrawal slip)
4. Production - create product (production order)
5. Warehouse - receive finished goods (goods receipt)

Question 10

A basic fulfillment process

Answer 10

1. Sales - receive customer inquiry (customer inquiry), create and send quotation (quotation)
2. Sales - receive customer purchase order (customer purchase order), create sales order (sales order)
3. Warehouse - prepare shipment “pick and pack” (picking document), send shipment “ship” (packing list)
4. Accounting - create and send invoice (invoice), receive payment (payment)

Question 11

What is the functional structure?

Answer 11

• The most common organizational structure.
• Organization is divided into common functions, or departments, each of which is responsible for a set of loosely related activities.

Question 12

How are processes completed successfully in the functional structure?

Answer 12

• Each functional group must execute its individual steps in the process.

Question 13

Why is the is the functional structure the most common organizational structure?

Answer 13

• Easier to manage people and the activities they perform.

- Allowed groups to perform one activity very well.

Question 14

What is the silo effect?

Answer 14

• When workers complete their task in their functional areas in “silos” without regard to the consequences for the other components of the process.
• Tendency to view work in terms of functional silos rather than in terms of cross-functional processes can lead to poor coordination between functional areas.
• The silo nature of the functional organizational structure conflicts with the cross-functional nature of processes

Question 15

What are consequences of the “silo effect”?

Answer 15

• Delays (increased lead times, increased cycle times)
• Excess inventory (stocking extra inventory “just in case”)
• Lack of visibility across the process (status of how the process in other parts of the organization, how the process is performing over time)

Question 16

Process using enterprise systems

Answer 16

1. Sales - receive customer order (enter/update data)
2. Warehouse - prepare shipment (enter/update data), send shipment (enter/update data)
3. Accounting - send invoice (enter/update data), receive payment (enter/update data)

Question 17

What is the physical flow in a business process?

Answer 17

• The physical activities associated with a process

Question 18

What is the data and document flow in a business process?

Answer 18

• The data (dates, quantities, locations, etc.) associated with each process.
• Data is often found in documents (purchase orders, invoices, etc.) that are created or modified throughout different steps of the process.
• Each time the physical steps in a process are executed, data and documents are created or modified.

Question 19

What is the information flow in a business process?

Answer 19

• When data from each instance of the process, as well as at an aggregate level, is accumulated and organized in a manner that is meaningful and useful (monthly sales report, etc.)

Question 20

Roles of ES in organizations (execute the process)

Answer 20

• Inform people when it is time to complete a task.
• Provide data necessary to complete the task.
• Provide the means to complete the task.

Question 21

Roles of ES in organizations (capture and store process data)

Answer 21

• Some data is generated and automatically captured by system.
• Other data is generated outside the system and must be entered into it.

Question 22

Roles of ES in organizations (monitor performance)

Answer 22

• Instance level information (a specific task or activity)

- Aggregate level information (process as a whole)

Question 23

Roles of ES in organizations

Answer 23

• Execute the process
• Capture and store process data
• Monitor performance