Chapter 2 Enterprise Systems TRUE FALSE 1 One of the primary goals of implementing an ERP system is to standardize processes and systems 2 Communicating via separate databases is easier than communicating with an enterprise system 3 Enterprise systems result in more accurate forecasts resulting in reduced inventory and costs to redistribute inventory 4 The primary goal of installing an enterprise system is reducing system installation costs 5 Enterprise systems potentially integrate the business process functionality and information from all of an organization s functional areas 6 An enterprise system should cause the organization to conduct business in a more costly manner 7 An add on software module in an enterprise system might be a customer relationship management 8 The dominant player in the enterprise systems market is Microsoft 9 SAP has a primary focus on large Fortune 500 type companies 10 Microsoft Dynamics GP Great Plains and Lawson Software focus on mid market sized companies 11 Customer relationship management CRM software builds and maintains an organization s customer ANS T ANS F ANS T ANS F ANS T ANS F system CRM ANS T ANS F ANS T ANS T related data ANS T 12 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 13 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 14 Customer relationship management CRM functionality includes procurement and contract 15 Customer self service CSS software is often an extension of CRM software 16 Supply chain management SCM software helps plan and execute the steps such as demand planning acquiring inventory manufacturing distributing and selling the product 17 Supplier relationship management SRM software manages the interactions with the organization s that supply the goods and services to an enterprise 18 Middleware is a software product that connects two or more separate applications or software 19 Enterpriseware might be used to stitch together a number of legacy systems an enterprise system best of breed applications and Web based applications 20 An Application Programming Interface API is a means for connecting to a system or application provided by the developer of that application 21 Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface 22 Enterprise application integration EAI is an approach to connect together multiple pieces of an enterprise system and to connecting across different organizations ANS F ANS T management ANS F ANS T ANS T ANS T modules ANS T ANS F ANS T ANS T ANS T 23 Examples of enterprise application integration include enterprise systems and customer relationship management systems ANS T 24 Enterprise Services Bus ESB is a type of communications broker software that uses standardized protocols to let event driven applications communicate in a less expensive manner than can the tightly coupled synchronous enterprise application integration EAI platforms 25 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 26 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 27 Manual accounting systems include integration of business processes applications databases and data standards such as EDI and XML 28 Event driven architecture EDA is an approach to building and designing enterprise systems in which business events trigger messages to be sent by middleware between independent software modules that are completely unaware of each other 29 In an event driven architecture EDA the business unit pushes the event to the recipient rather than waiting for the recipient to request or pull the event to them 30 The value chain is a chain of activities performed by the organization to transform outputs into inputs valued by the customer 31 An organization creates a competitive advantage by creating less value for its customers than does its ANS T ANS F ANS T ANS F ANS T ANS T ANS F competition ANS F 32 Secondary activities of the value chain include activities directly involved with marketing producing selling and delivering the product or service to the customer ANS F ANS F ANS F ANS T ANS F ANS T ANS T name ANS T ANS T ANS F ANS T 33 Primary activities of the value chain provide support infrastructure such as procurement information technology human resources and accounting 34 The value chain emphasizes the separate activities or silos of the organization 35 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 36 The activities in the value chain the value activities are business processes that convert inputs to valued outputs ANS T 37 In a disaggregated information system the customer will be notified immediately whether the item is on the shelf and not committed to another customer 38 Telling the customer when they will receive an item is known as available to promise ATP 39 A character is a basic unit of data such as a letter number or special character 40 A field is a collection of related characters that comprise an attribute such as a customer number or 41 A record is a collection of related data field attributes 42 The credit limit within a customer record provides unlimited authorization for customer sales 43 Segregation of duties includes separating the sales and credit departments 44 Generally when processing a customer order one does not need to know the total price of the goods before credit authorization can be made 45 In an enterprise system once a customer order is completed the purchasing function would be immediately informed that the merchandise has been sold and may need to be replenished 46 A warehouse manager might want to have a list of all customers who have not made a purchase in the 47 A credit manager might want to compare customer credit limits sales billing data and payment data to determine if credit limits need to be adjusted for customers with high sales or late payments 48