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Comm 226: Business Technology Management > week 5: enterprise systems part 1 > Flashcards

week 5: enterprise systems part 1 Flashcards

1
Q

What are the fundamental ways of achieving competitive advantage?

A

Changing the product

Business processes

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2
Q

how to change the product to obtain competitive advantaged?

A

By introducing new products or services or enhancing current products or services

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3
Q

how do business processes obtain competitive advantage?

A

the use technology

this helps lock in customers, reduce costs, and create entry barriers for competitors in the market

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4
Q

how can information systems

can affect competitive advantage?

A

By making the primary and support activities in an organization more productive than those of competitors

making business processes more effective and more efficient to increase productivity

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5
Q

primary and support activities in an organization

A

referring to the value chain

thinking that the value chain activities serve several functions in the organization

are building blocks in an organization

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6
Q

primary activities

A

Relate directly to organization’s customers and
products

mostly create value

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7
Q

what is part of primary activities?

A

Marketing and sales

Inbound logistics

Operations and manufacturing

Outbound logistics

Service and support

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8
Q

support activities

A

facilitate primary activities

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9
Q

what is part of support activities?

A

Human resource

Accounting and infrastructure

Procurement

Technology activities

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10
Q

which are the systems used in primary activities?

A

operation systems

manufacturing systems

sales systems

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11
Q

Functional silos

A

Systems designed to work independently of one another

such as operation systems, manufacturing systems, sales systems

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12
Q

in reality, are functional systems independent or inter-related? why?

A

inter related

organization as a whole is inter related

ex: Purchasing influences inventory, which influences production, which influences customer satisfaction, which influences future sales

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13
Q

when you make a decision, must you consider all the other functional silos or functional systems in the organization?

A

ye bruv

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14
Q

what must managers do with functional silos? how is this inefficient?

A

they must query separate functional systems and integrate the data manually

creates a lot of errors which creates error in decision making process

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15
Q

which are the major functions in functional systems?

A

marketing and sales

operations

manufacturing

human ressources

accounting and finance

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16
Q

which are the main information systems in the marketing and sales function?

A

product management

lead tracking

sales forecasting

customer management

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17
Q

which are the main information systems in the operations function?

A

order entry

order management

inventory management

customer service

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18
Q

which are the main information systems in the manufacturing function?

A

inventory

planning

scheduling

manufacturing operations

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19
Q

which are the main information systems in the human resources function?

A

payroll and compensation+

recruiting

assessment

development and training

human ressources planning

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20
Q

which are the main information systems in the accounting and finance function?

A

general ledger

financial reporting

accounts receivable

accounts payable

costs accounting

budgeting

cash management

treasury management

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21
Q

Why Are Functional Systems Changing?

A

they are limited because they operate in isolation

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22
Q

what happens when functional systems are limited because they operate in isolation?

A

Data duplication results from each application having own database

Business processes disjointed across functions

Limited information available at any one source

Limited information available at any one source

Inefficient decisions based on limited knowledge

Increased costs to organization

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23
Q

how are disjointed business processes a problem?

A

produces lack of integrated enterprise information

managers have it difficult to see the big picture?

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24
Q

how is data duplication an issue?

A

potential lack of data integrity

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25
Q

Integrated, Cross-Functional Systems

A

Cross-departmental systems operate across departmental boundaries

what we need to achieve

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26
Q

why is transition from functional systems to integrated cross-functional systems is difficult?

A

need a lot of coordination

Integrated processing needs many departments to coordinate activities

Inter-organizational systems are cross- functional systems used by two or more related companies

Most organizations today have a mixture of functional and integrated systems

27
Q

How can business processes be improved?

A

Adding resources, such as adding more workers

Adding increased specialization

Changing/eliminating nonproductive activities

28
Q

what already supports business processes?

A

information systems

IT enables firms to innovate and make significant change

29
Q

what does using IT to improve business process require?

A

understanding of where improvements are possible

30
Q

what do more efficient business processes integrate?

A

the activities of all departments involved in a value chain

31
Q

Enterprise Application Integration (EAI)

A

a way go combine different functional systems by adding some lawyers of software to connect them together

older thing

An approach to combining functional systems

it uses layers of software as a bridge to connect different functional systems together

32
Q

Enterprise Resource Planning (ERP)

A

much better and modern approach

creating a new system with one central data base

it combines all the data components, elements, and other shit from processes

A second approach to combining functional systems

one central database is combined with a set of standard processes built on top of the database to ensure integration between functional area

33
Q

what is the main design principle of ERPs?

A

one central database

it is combined with a set of standard processes built on top of the database

this ensures integration between functional area

34
Q

what is the body of the Enterprise Resource Planning (EAI)

A

the manager at the top

the EAI server right after from which the manager accesses the data

underneath it, there is the different EAI interfaces that sends data to the EAI server

underneath, there are the corresponding independent functional systems for each EAI interface

35
Q

what is the body of the Enterprise Application Integration (ERP)

A

The manager at the top

underneath is the ERP database which is the single central database from which the manager accesses data

underneath are the functional areas where people send and receive data to the ERP database

no functional systems exist. They were replaced by ERP modules

36
Q

What are the challenges of implementing business process changes? why will process design projects be expensive and difficult?

A

There is a lot of detailed work to be done to determine what to change and make an effective decision

Hard to estimate the business value that will emerge from business process changes

Many people like change but do not want to change

May take a long time

Very expensive and outcomes are uncertain

37
Q

why did many early business process design projects fail?

A

because they were tailor-made

Software vendors designed integrated applications, with built-in industry standard processes

38
Q

what was the goal of designing integrated applications, with built-in industry standard processes (which was a mistake)

A

Integrate activities across departments

Save costs of new process design

Examples: Oracle, Salesforce.com, Microsoft, or SAP

39
Q

what were the problems with designing integrated applications, with built-in industry standard processes?

A

Industry standard processes may be very different from existing processes in the organization

May require the organization to change substantially

40
Q

What are ERP systems?

A

Support all the primary business processes as well as the human resource and accounting support processes

Enterprise-wide systems that integrate sales, order, inventory, manufacturing, and customer service activities

ERP systems provide software, pre- designed databases, procedures, and job descriptions for organization-wide process integration

41
Q

who are the primary ERP users?

A

manufacturing companies

42
Q

what are the characteristics of the ERP?

A

cross functional, process view of the organization

formal approach based on formal business models

maintains data in centralized database

offers large benefits

difficult, fraught with challenges, and can be slow to implement

often very expensive

43
Q

benefits of ERP

A

Efficient business processes

Inventory reduction

Lead-time reduction

Improved customer service

Greater, real-time insight into organization

Higher profitability

44
Q

what are cross-functional systems developed for?

A

cross-functional systems developed to overcome problems in functional silos

45
Q

what do Customer Relationship Management (CRM) systems do?

A

Support the business processes of attracting, selling, managing, delivering, and supporting customers

support the direct value chain activities that involve the customer

Integrate four phases of the customer life cycle: marketing, customer acquisition, relationship management, and loss/churn

46
Q

in Customer Relationship Management (CRM) systems, how is the customer data stored?

A

All customer data stored in single database

47
Q

Purpose of Relationship Management

A

To maximize the value of the existing customer

48
Q

Two types of applications for Relationship Management applications

A

Sales Management applications

Integrated CRM applications

49
Q

Sales Management applications

A

support sales to existing customers

Ensures that sales management has sufficient information to prioritize and allocate sales time and efforts

50
Q

Integrated CRM applications

A

store data in a single database

51
Q

can CRM processes be linked to one another?

A

ye bruv

52
Q

what are the CRM components?

A

solicitation

Lead tracking (pre-sale)

relationship management (post sale)

53
Q

what does CRM solicitation do?

A

generate prospects via messages to target market

54
Q

what does CRM solicitation use to generate prospects via messages?

A

use email, websites, and other IS messaging media

support direct mail, catalogue, and other tradition promotion

55
Q

what is the goal of CRM lead tracking (pre sale)?

A

track sales leads

track customer responses and contacts

prioritize responses to maximize new customer revenue

56
Q

what does CRM relationship Management (post sale) do?

A

maximize the value of existing customer base

57
Q

what does CRM relationship Management (post sale) use to maximize the value of existing customer base?

A

sales management applications

customer support applications

58
Q

what do CRM sales management applications do?

A

prioritize customer using purchasing history

increase sales to existing customers

focus reselling on high-value customers

win back lost high value customers

59
Q

what do CRM customer support applications do?

A

manage orders

track customer’ problems and problem resolutions

prioritize responses according to customer value

gather data for product improvement

60
Q

what are supply chain management (SCM) systems?

A

inter-organizational systems that enable companies to efficiently handle the flow of good from suppliers to customers

integrating all different aspects of supply chain to present it as a coherent ensemble to stakeholders and everyone in the orgnaization

61
Q

what is a supply chain?

A

a network of organizations and facilities that transforms raw materials into products delivered to customers

62
Q

who does a supply chain involve?

A

customers

retailers

distributors

manufacturers

suppliers

transportation companies

warehouses

inventories

some means for transmitting messages and information among the organizations involved

63
Q

Customer Relationship Management (CRM) systems

A

Support the business processes of attracting, selling, managing, delivering, and supporting customers

Direct value chain activities that involve the customer

Integrates four phases of the customer life cycle

All customer data stored in single database

64
Q

four phases of the customer life cycle

A

marketing

customer acquisition

relationship management

loss/churn

Comm 226: Business Technology Management (15 decks)

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