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BUS 237 Study Guide - Final Guide: Infor, Rela, Xml

Business Administration
Course Code
BUS 237
Zorana Svedic
Study Guide

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Chapter 7
Q1. Competitive advantage
Product and services:
Create new products
Enhance products and services
Differentiate products and services
Businesss process:
Lock in customers and uyers
Lock in suppliers
Create barriers to entry
Establish alliance
Reduce cost
= primary + supporting activities (information technology) => IS => effective
and efficient => productivity3
Q2. Functional system: facilitates the work of a single department or busiess function =>
add features and capabilities to information systems to support more functional area
activity => mixture of functional and cross functonal
5 functional systems:
HR system
Accounting system
Operation system
Manufacturing system
Sales system
Cross functional: process cut across functional areas, intergrate data and business process
across different d and system
Interorganizational system: IS cross functional bounfries and organizational boundaries.
System are usded by two or more related companies (supply chain managaement system
and e-commerce application)
Functional silos: functional are isolated => work independent => manager query separate
functional system and integrate data manually.3
Figure 7-4
Data dupblication: each application has its own database => =>lack of data
integrity( Change data in one system takes several day to reach other system )=>
inconsistent and duplicate data => inconsistent result
Disjoint business process: hard to send data from one system to other system =>
problematic. Example: Order entry system: ccc-nnnn vs Manufacturing system:

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Limited information and lsck of integrated info: customer query => order +
inventor + manufacturing system provide => inconsistent data
Inefficiency activities: make decision based on isolated data . Example: raw
material system => make decision (inventory replenishment) = cost + benefit =>
sales, order entry + manufacturing activities => improve by carrying less than
optimal nmbers of product in raw material system
Higher cost
Q3. Improve business process without technology change
adding resources (workers)
adding increase specialization (skilled workers)
=> doing more with more (cost more money)
=> doing more with less IT
=> automate and improve existing functional system (paving the cow path) => make
thing easier + not change things => BP design changes things => integrate activities of
many functional departments (value chain) => cross functional => data accessible to
entire enterprise => activity linkage
Combining functional system: use layer
of software (bridge) connect different
functional system together
intact (data in each
functional system stay
within the system)
customized EAI interface => centre
EAI server pull data => centrally
integrate => single database =>
minimize change
bad aid solution to address issues with
multiple functional systems
cheaper than the alternative
Combining functional system: central
database + a set of standard business
processes (buit on top of database) =>
integrate data in to a single
Manager access, send and receive from
the central database
= prebuilt software => remove existing
functional system => change current
BP replace by erp modules
complex: multiple departments => detail works + many people agree +
expert decisions => time + effort
incorrect data

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conving worth of effot: underestimate benefit => not convince,
overestimate => disappoint + reluctant to changes => risky
employee resist change: not work in new way + reorganize and abolish
+ work for someone new
=> no proper training (benefit, use, purpose, implementation stage) =>
loose faith
labour hour, cost , risk underperformance, uncertain outcome
fail = tailor made
Q4. Industry standard processes: pre-made integrated application (buit-in) acquire from
large software development company (Oracle, Info, Microsoft, SAP) => conform
activities = diagram (software and logic) => design well => effectively integrate activities
=> save cost
Advantage: inherent process in software => save time, expense, agony of process design,
benefit immediately from tried and tested cross department processes
different from existing process => change substantially => disruptive to org and
difficult to differentiate
Q5. Enterprise resource planning (ERP):
support many or all primary activities + human resource and accounting support
out groth of MRP
primary users: manufacturing companies
vendors: SAP , Oracle, Infor > Microsoft (NAV, AX, GP, Solomon)
ultimate in cross department process system: intergrate sales, order, inventory,
manufacturing, customer service, human resources, accounting and oothers
provide software, industry standard procedures, job description
1. single central database (collecting enterprise infor)
2. formal approach = documented, tested busness models + comprehensive
set of inherent process for all org activities (process blueprint by SAP) +
diagram use a set of standardized symbols
adapt to ERP blueprint => operate effectively + correctly
3. maintain data in centralized database
4. difficult, fraud, challenge, slow, costly to switch (hardware, software, procedure,
training employee converting data and other developmental expense
1. efficient BP: not reinvent + gain benefit from already proved successful
2. inventory reduction: not maintain large buffer stocks + item remain
shorter period => lower cost
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