1. Chapter 6 Supporting Processes with ERP Systems Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-1

2. Question ________ occur(s) when data are isolated and replicated in separated information systems. – A) Metadata publishing – B) Encapsulation – C) Information silos – D) Automation 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-2

3. Question An enterprise application integration product is ________. – A) a strategy that uses business process management to radically enhance the customer service experience – B) a suite of software applications that tackles the information silo problem by providing layers of software that connect information systems together – C) a suite of applications, a database, and a set of inherent processes for managing all the interactions with a customer, from lead generation to customer service – D) a suite of software, a database, procedures and a set of processes for supporting business operations with a single, consistent, information system 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-3

4. Question The primary purpose of an ERP system is ________. – A) duplication – B) integration – C) customization – D) customer acquisition 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-4

5. What Problem Does an ERP System Solve? Information Silo Problem – Data isolated in separate information systems Solutions – Enterprise Application Integration (EAI) – Enterprise Resource Planning (ERP) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-5

6. What Problem Does an EAI System Solve? 6-6

7. What Problem Does an ERP System Solve? 6-7

8. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8 What Problem Does an ERP System Solve? The left hand knows what the right hand is doing ERP Systems standardize processes and bring the data from the company’s processes into one place into one single information system By consolidating data about customers, suppliers, products, machinery, facilities, production schedules, finances, managers: – Make decisions with real time data – Save time because information is at their disposal – Speed up production – Address problems as they arise – Save money

9. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-9

10. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 10 5 information silos Where do we need to get information from if we need to know if we can fill an order for 1,000 bikes by next week?

11. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11 1 central database Where do we need to get information from if we need to know if we can fill an order for 1,000 bikes by next week?

12. Where did ERP systems come from? Grew out of manufacturing software – Materials Requirement Planning software (MRP) Manage inventory, production & labor – MRPII – adds in: Financial tracking of manufacturing processes Ability to schedule capacities Other drivers too – Y2K – Sarbanes-Oxley (SOX) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-12

13. Question The customization of ERP software to meet different customer requirements without changing the program code is called ________. – A) automation – B) configuration – C) modularity – D) process blueprinting 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-13

14. What Are the Elements of an ERP System? – SCM – P2P, O2C, inventory management, supplier management – Manufacturing – scheduling, capacity planning, quality control, Bill of Materials – CRM – sales prospecting, customer management, marketing, customer support, call center support – Human Resources – payroll, time and attendance, HR management, commission calculations, benefits admin – Accounting – GL, AR, AP, cash management, fixed-asset accounting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-14

15. What Are the Elements of an ERP System? Five Components of an ERP System – Software – Hardware – Data – Procedures – People Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-15

16. What Are the Elements of an ERP System? ERP Software – Configuration ERP Databases – Over 25,000 tables Procedures – Train the trainer (in-house training) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-16

17. What Are the Elements of an ERP System? Hardware – ERP Hardware Dilemma People – Users – Analysts – Consultants Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-17

18. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 18

19. Question The inherent processes defined in an ERP solution are also known as ________. – A) stored procedures – B) process blueprints – C) database transactions – D) transaction logs 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-19

20. What Are the Elements of an ERP System? Inherent Business Processes in ERP – System specified business processes – Process blueprints – Is it better to change the software to conform to existing business processes or better to change business processes to match software? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-20

21. Question Which of the following is an organizational benefit of using an ERP product? – A) It controls the unionization of labor. – B) It creates an island of automation. – C) It facilitates data sharing in real time. – D) It promotes the duplication of data. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-21

22. What Are the Benefits of an ERP System? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-22

23. What Are the Benefits of an ERP System ? Example Measures of the Benefits of ERP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-23

24. What Are the Challenges of Implementing an ERP System? Sample implementation Decisions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-24

25. What Are the Challenges of Implementing an ERP System? People Issues Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-25

26. What Types of Organizations Use ERP? Figure 6-13 ERP by Industry Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-26 ERP by Industry Type ERP by Organization Size International ERP

27. Who Are the Major ERP Vendors? ERP Vendor Market Share Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-27

28. Who Are the Major ERP Vendors? ERP Products Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-28

29. Question Which of the following is true about ABAP? – A) It enables the Business Suite/NetWeaver approach to be more adaptive to new IT developments. – B) It has SOA capabilities that help it to integrate SAP with non-SAP applications. – C) It is a high-level application language of SAP that is used to enhance the functionality of an SAP implementation. – D) It connects SAP applications to hardware, third-party software, and output devices. 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-29

30. What Makes SAP Different from Other ERP Systems? SAP Modules Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-30

31. What Makes SAP Different from Other ERP Systems? SAP Inputs and Outputs - Procurement Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-31

32. What Makes SAP Different from Other ERP Systems? SAP Business Suite – SAP ERP – SAP CRM – SAP SRM – SAP SCM – SAP NetWeaver: Application platform on which these mentioned applications run; it is like an operating system Connects SAP hardware, third party software and output devices Much more adaptive to new IT environments Includes SOA : Service Oriented architecture which allow SAP applications to integrate with non-SAP applications Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-32