Mis Final Exam - Chapter Seven

Front 1

Enterprise-wide Systems
aka Enterprise Systems

Back 1

Enterprise-wide Systems
aka Enterprise Systems, are systems that allow companies to integrate information across operations on a company-wide basis

Front 2

Interorganizational Systems (IOS)

Back 2

Systems that communicate across organizational boundaries who’s goal is to streamline information flow from one company to another

Front 3

Functional areas

Back 3

Functional areas within an organization that process inputs and produce outputs. These activities may vary widely based on the unique requirements of a company’s industry

Front 4

Inbound Logistics

Primary Activities

Back 4

receiving and stocking raw materials, parts, products

Front 5

Operations/Manufacturing

Primary Activities

Back 5

processing orders and raw materials into finished product

Front 6

Outbound Logistics

Primary Activities

Back 6

distribution of the finished product to customers

Front 7

Marketing and Sales

Primary Activities

Back 7

creating demand for the product (pre-sales activities)

Front 8

Customer Service

Primary Activities

Back 8

providing support for the product or customer (post-sales activities)

Front 9

Support activities

Back 9

Support activities are business activities that enable Primary Activities These activities can be unique by industry but are generally more typical across industries

Front 10

Infrastructure

Support Activities

Back 10

hardware and software that must be implemented to support applications for primary activities

Front 11

Human Resources

Support Activities

Back 11

employee management activities: hiring, interview scheduling, and benefits management

Front 12

Technology Development

Support Activities

Back 12

the design and development of applications that support the organization

Front 13

Procurement

Support Activities

Back 13

purchase of goods or services that are required as inputs to primary activities

Front 14

A Value System – Externally Focused

Back 14

A connection of value chains across organizations
Allows the flow of information between organizations to support business activities

Front 15

Upstream flow

Back 15

Upstream flow is information received from another organization (i.e. from company A to Company B above)

Front 16

Downstream Flow

Back 16

Downstream Flow is information sent to another organization (i.e. from Company B to Company C above)

Front 17

Packaged Applications

Back 17

“Off the Shelf” computer applications purchased from a vendor or the company that created the system (i.e. Quicken or MS Money for financial applications)

Front 18

Packaged Key Characteristics

Back 18

Best Use - standardized, repetitive tasks
Cost Effectiveness – lower cost because vendors can create once and then sell many copies to others
Organizational Fit – may not be well suited for tasks that are unique to a particular business or industry
Maintenance – the vendor makes the changes and then sends the updates to its customer on a periodic basis. The customer does not control this schedule

Front 19

Custom Applications

Back 19

“Custom-built” computer applications created by the organization or a third party (e.g. a consulting organization)

Front 20

Custom Key Characteristics

Back 20

Best Use - unique business process to an organization
Cost Effectiveness – much higher cost due to the one-time creation of the applications
Organizational Fit – excellent as they are designed to fit a specific business process
Maintenance – all changes are created and implemented by the organization using the application

Front 21

Stand Alone (Legacy) Systems

Back 21

A single system or groups of systems, designed to each support one or a few business functions (e.g. accounting system or a manufacturing system, etc.)

Front 22

Stand Alone (Legacy) Systems

Back 22

Little or no integration with other organizational systems. If integration exists, it is usually in batch (i.e. the accounting system gets updates from manufacturing system once a day or week
Organizational fit may be better than integrated packages due to the focus on one function and that they have been highly modified over time
Customization and the age of these systems make them difficult to support due to the complexity, use of older or obscure languages, etc.

Front 23

Legacy (stand-alone) Systems

Back 23

information is not readily shared between systems (i.e. Inbound Logistics inventory information shared with Operations)

Front 24

Integrated Packages (Enterprise Resource Planning)

Back 24

Richly functional systems designed to support many organizational functions (e.g. accounting and finance)

Front 25

ERP Key Characteristics

Back 25

Internally focused systems designed to support the internal operations of the organization
Highly integrated systems sharing a common data warehouse for information sharing across functions, using real-time updates
Organizational fit may be less for individual departments but the integrated sharing of information usually outweighs these issues
Usually packaged applications supported by the vendor utilizing a common user interface
Customization is discouraged but these systems have the flexibility to support other outside applications using the common data repository and interfaces

Front 26

Integrated Systems

Back 26

Information is stored in a single data repository and can be accessed and updated by all functional systems (e.g. Operations)

Front 27

Control

Choosing an ERP System – Selection Factors

Back 27

Control refers to where the power lies related to computing and decision support systems (centralized vs. decentralized) in selecting systems, developing policies and procedures, etc. (who will decide?)

Front 28

Business Requirements

Choosing an ERP System – Selection Factors

Back 28

Business Requirements refers to the system’s capabilities and how they meet organizational needs through the use of software modules or groups of business functionality (what do you need?)

Front 29

Best Practices

Choosing an ERP System – Selection Factors

Back 29

Best Practices refers to the degree to which the software incorporates industry standard methods for doing business which can cause a need for significant business processes reengineering (how much change is required?)

Front 30

Business Process Reengineering

Back 30

A systematic, structured improvement approach by all or part of an organization whereby people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures (e.g. quality, cycle time, cost)

Front 31

Hammer and Champy, (“Reenginerring the Corporation”)

Back 31

“The radical redesign of an organization was sometimes necessary in order to lower costs and increase quality and that the information technology was the key enabler for that radical change”

Front 32

Integrated Packages

Back 32

Richly functional systems designed to support externally focused functions (Upstream – Supply Chain Management and Downstream – Customer Relationship Management)

Front 33

Integrated Packages

Back 33

Highly integrated with internal systems (ERP) through the use of interfaces and specialty software
Organizational fit for these systems is very high as they are highly specific to the function they support
These are usually packaged applications that are supplied and supported by the ERP vendor or other third party system integrators
Customization or modifications are also discouraged to minimize support cost but the applications are highly tailorable with configuration options

Front 34

Objective

Customer Relationship Management

Back 34

Applications that help organizations attract new business and attract and encourage repeat business

Front 35

Functions

Customer Relationship Management

Back 35

There are two primary functions in CRM systems:
Sales – tools designed to assist in presales activities such as marketing and prospecting (e.g. Sales Force Automation)
Service – tools that help with the post-sales aspects of the business (e.g. call center technology, analytics)

Front 36

Sources

Customer Relationship Management

Back 36

There are two primary sources of CRM systems:
CRM Software Vendors – Siebel, FirePond, Onyx, E.Piphany
ERP Vendors – SAP, Baan, Oracle, etc.

Front 37

Sales Force Automation

Back 37

Sales Force Automation provides salespeople and sales managers with computerized support tools to assist in daily routines
Example: Siebel SFA displays multiple functions including: sales, quota & forecast by sales person; messages; appointments

Front 38

Objective

Supply Chain Management

Back 38

Applications that accelerate product development and reduce cost associated with procuring raw materials, components, and services from its suppliers

Front 39

Sources

Supply Chain Management

Back 39

There are two primary sources of SCM systems. These systems are built to tightly integrate with ERP systems
SCM Software Vendors – Agile, Ariba, I2, Manugistics, Commerce One, etc.
ERP Vendors – SAP, Baan, Oracle, etc

Front 40

Supply Chain

Back 40

the suppliers that an organization purchases from directly

Front 41

Supply Network

Back 41

the suppliers that an organization purchases from directly and its suppliers

Front 42

Secure Executive Sponsorship

Recommendations for Enterprise System Success

Back 42

The highest level support is required to obtain resources and make and support difficult reengineering decisions

Front 43

Get Help from Outside Experts

Recommendations for Enterprise System Success

Back 43

Implementation success is enabled by deep application experience and access to supporting tools and methods

Front 44

Thoroughly Train Users

Recommendations for Enterprise System Success

Back 44

Training in organization, business process, and application functions is critical to success and must be reinforced

Front 45

Take a Multidisciplinary Approach to Implementations

Recommendations for Enterprise System Success

Back 45

Enterprise systems span the entire organization and as such require input and participation from all functions