Chapter 7 Flashcards
(27 cards)
Order-To-Cash Process
The process associated with selling a product or service
Procure-To-Pay Process
The process associated with procuring goods from external vendors
Make-To-Stock Process
Goods are produced based on forecasts and are stocked in a warehouse; sales orders are then fulfilled from inventory
Make-To-Order Process
Raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received
Core Activities
Include inbound logistics, operations and manufacturing, outbound logistics, marketing and sales, and customer service
Support Activities
- Business activities that enable the primary activities to take place
- Include administrative activities, infrastructure, human resources, technology development, and procurement
Value System
Information flows from one company’s value chain to another companies value chain
Upstream Information Flow
Consists of information that is received from another ogranization
Downstream Information Flow
Information that is produced by a company and sent along to another organization
Stand-Alone Applications
Systems that focus on the specific needs of individual departments are typically not designed to communicate with other systems in the organizations
Legacy Systems
Systems that are either fast approaching or beyond the end of their useful life within the organization
Enterprise-Wide Information System (Enterprise System)
An integrated suit of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company wide basis using one large database
Internally Focused System
Support functional areas, business processes, and decision making within an organization
Externally Focused Systems
Coordinate processes with customers, suppliers, business partners, and others who operate outside an organization’s boundaries
Inter-organizational System (IOS)
A system that communicates across organizational boundaries
Packaged Software (Off-The-Shelf Software)
Applications written by third-party vendors for the needs of many different users and organizations
Custom Software
Applications that are designed and developed exclusively for a specific organization
Modules
- Components that can be selected and implemented as needed
- Each module is designed to replace a legacy system
Vanilla Version
The features and modules that an enterprise system comes with out of the box
Customization
Provides either additional software that is integrated with the enterprise system or consists of direct changes to the vanilla application itself
Best Practices
Reflect the techniques and processes identified with experience and research that have consistently shown results superior to those achieved with other means
Business Process Management
Systematic, structured improvement approach by all or part of an organization whereby people critically examine, rethink, and redesign business processes to achieve dramatic improvements in one or more performance measures
Enterprise Resource Planning (ERP)
Applications that integrate business activities across departmental boundaries
ERP Core Requirements
Support the important internal activities of the organization for producing their products and services
