Chapter 2Enterprise Systems

Chapter 2—Enterprise Systems

TRUE/FALSE

• One of the primary goals of implementing an ERP system is to standardize systems across multiple

locations and multiple divisions.

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• Submitting a purchase order is a business event but creating an employee record is not a business

event.

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• Early adopters of ERP systems were in the business of making products.

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• ERP systems have proved to be quite easy to install and in short periods of time.

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• Enterprise systems potentially integrate the business process functionality and information from all of

an organization's functional areas.

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• With an enterprise system an organization will conduct business in a more costly manner.

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• An add-on software module in an enterprise system might be a customer relationship management

system (CRM).

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• The dominant player in the large system ERP arena is Microsoft.

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• SAP has a primary focus on large Fortune 500 type companies.

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• Microsoft Dynamics and Sage Group focus on small and mid market sized companies.

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• Customer relationship management (CRM) software builds and maintains an organization's

customer-related database.

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• Customer relationship management (CRM) software aggregates, manages, and retains data across the

entire organization for the identification, acquisition, and retention of vendors to maximize the benefits of those relationships.

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• If you have made a Web purchase such as with Amazon.com you have experienced some of the

functionality of a CRM system where the vendor keeps track of your name, address, and purchases.

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• Customer relationship management (CRM) functionality includes procurement and contract

management.

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• Customer self service (CSS) software is often an extension of CRM software.

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• Supply chain management (SCM) software helps plan and execute steps such as demand planning,

acquiring inventory, manufacturing, distributing, and selling the product.

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• Supplier relationship management (SRM) software manages the interactions with the organization's

that supply the goods and services to an enterprise.

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• Middleware is a software product that connects two or more separate applications or software

modules.

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• Enterpriseware might be used to stitch together a number of legacy systems, an enterprise system,

best-of-breed applications, and Web-based applications.

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• An Application Programming Interface (API) is a means for connecting to a system or application

provided by the developer of that application.

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• Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface.

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• Enterprise application integration (EAI) links together two or more systems and allows them to work

together.

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• Product life-cycle management (PLM) software manages product data from design through

manufacture, and disposal.

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• When choosing modules for an organization’s ERP system, it is generally best to select them all from

a single vendor.

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• DreamWeaver is a Web services platform from SAP that can be used to build applications that

integrate business processes and databases from a number of sources within and between organizations.

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• Business process management (BPM) provides a comprehensive method for integrating manual and

automated internal processes, applications, and systems, as well as integration to external partners and services.

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• With a best-of-breed approach an organization can minimize the number of different software modules

employed to implement an enterprise system.

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• Because of the enormous implementation costs, only very large organizations can afford ERP systems.

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• The data captured as business events occur should be sufficient for someone who was not a party to

the event to understand and reconstruct what happened.

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• The value chain is a chain of activities performed by the organization to transform outputs into inputs

valued by the customer.

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• An organization creates a competitive advantage by creating less value for its customers than does its

competition.

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• Supporting activities of the value chain include activities directly involved with marketing, producing,

selling, and delivering the product or service to the customer.

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• Primary activities of the value chain provide infrastructure such as procurement, information

technology, human resources, and accounting.

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• The value chain works to separate the functional activities or silos of the organization.

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• Dell's value chain takes raw materials, manufactures computers and other products, and delivers them

to customers in a timely manner at an attractive price.

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• The activities in the value chain, the value activities, are business processes that convert inputs to

valued outputs.

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• In a disaggregated information system, the customer will be notified immediately whether the item is

on the shelf and not committed to another customer.

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• Telling the customer when they will receive an item is known as available to promise (ATP).

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• A character is a basic unit of data such as a letter, number, or special character.

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• A field is a collection of related characters that comprise an attribute, such as a customer number or

name.

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• A record is a collection of related data fields pertaining to a particular entity or event.

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• The credit limit within a customer record always provides unlimited authorization to accept a customer

order.

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• Segregation of duties includes separating the sales and credit departments.

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• Generally, when processing a customer order, one does not need to know the total price of the goods

before credit authorization can be made.

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