Test Bank For Integrated Business Processes With ERP Systems 1st Edition by Simha R. Magal | Complete A+ Guide

,Chapter 1: Introduction to Business g g g g




Process
g




Learning Objectives g




After completing this chapter you will be able to:
g g g g g g g g




1. Define the functional organizational structure, and explain why this structure creates problems
g g g g g g g g g g g



for modern businesses
g g g



2. Describe key business processes in an organization
g g g g g g



3. Identify the main integration points between and among processes
g g g g g g g g



4. Understand the cross-functional nature of processes and their relationship to organizational
g g g g g g g g g g



areas
g



5. Adopt and apply an integrated perspective to business processes
g g g g g g g g



6. Describe GBI’s organizational structure g g g



7. Explain how the SAP system promotes an integrated approach to business processes
g g g g g g g g g g g




Chapter Outline and Teaching Suggestions
g g g g




1. The Functional Organizational Structure
g g g




a. The Silo Effect g g




b. Enterprise Systems g




Discuss how companies are organized, and explain that the functional structure is the most
g g g g g g g g g g g g g




common organizational structure. You can use a university or company or a business school
g g g g g g g g g g g g g g




department that you are familiar with as an example. Point out that processes are cross-
g g g g g g g g g g g g g g g




functional. Ask the question: Why is the functional structure so common? Figure 1-1 will assist
g g g g g g g g g g g g g g g




you in explaining the cross-functional nature of business processes.
g g g g g g g g g




Explain the silo effect and its negative implications for modern business organizations. You
g g g g g g g g g g g g




can give an example such as creating a sales order in sales and marketing with no integration
g g g g g g g g g g g g g g g g g




or communication with inventory management or production.
g g g g g g g




Point out that the nature of the functional organizational structure and the cross-functional
g g g g g g g g g g g g




nature of processes directly conflict with each other.
g g g g g g g g




Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end processes,
g g g g g g g g g g g




productivity, competitive edge, monitoring and changing of business processes, etc.).
g g g g g g g g g g




2. Business Processes g

, a. Procurement - Buy g g




b. Production - Make g g




c. Fulfillment - Sell g g




d. Material Planning - Plan g g g




e. Inventory and Warehouse Management - Store g g g g g




f. Lifecycle Data Management - Design g g g g




g. Asset Management and Customer Service - Service
g g g g g g




h. Human Capital Management - People g g g g




i. Project Management - Projects g g g




j. Financial Accounting - Track for Track for External Reporting
g g g g g g g g




k. Management Accounting - Track for Internal Reporting g g g g g g




Define and explain a business process. Point out that organizations use many processes to
g g g g g g g g g g g g g




achieve their objectives and they employ specific terms to identify the processes. Processes can
g g g g g g g g g g g g g g




be directly related or closely related to creating and delivering goods and services. Use Figure
g g g g g g g g g g g g g g g




1-2 to illustrate a process that is executed in response to a need (trigger). The process is
g g g g g g g g g g g g g g g g g




gcarried out through a sequence of steps and results in an output. You can use an example such
g g g g g g g g g g g g g g g g g




as ordering supplies.
g g g




Processes can be supported by other processes and can have numerous sub-processes. Point out
g g g g g g g g g g g g g




that communication and coordination of tasks are very important. Figure 1-3 can assist you in
g g g g g g g g g g g g g g g




explaining this point. Ask students to indentify some other processes that they are familiar
g g g g g g g g g g g g g g




with.
g




Describe and give examples of the business processes (A - K). Figures 1-4 through 1-10 will assist
g g g g g g g g g g g g g g g g




you.
g




3. Global Bicycle, Incorporated (GBI)
g g g




Explain that Global Bicycle, Incorporated (GBI) is a fictional company that is used to illustrate
g g g g g g g g g g g g g g




the important concepts, processes, and techniques discussed in the textbook. Figure 1-11 will
g g g g g g g g g g g g g




assist you in explaining GBI's organizational structure.
g g g g g g g




Call up the SAP University Alliance Community (UAC) website http://uac.sap.com, and
g g g g g g g g g g




demonstrate the functionality and services available for students. Also instruct students to
g g g g g g g g g g g g




read the GBI Backround Document on the UAC to understand GBI’s history, products and
g g g g g g g g g g g g g g




operations.
g




4. How To Use This Book
g g g g




a. Chapter Structure g




b. SAP Software and Certification g g g




c. WileyPLUS

, Explain the four key sections in most of the process chapters. Provide a brief background on the
g g g g g g g g g g g g g g g g




origins of SAP and the problems it initially solved.
g g g g g g g g g




Explain that most SAP consultants are not programmers and have mastered the material
g g g g g g g g g g g g




presented in this book.
g g g g




Explain the three levels of SAP Certification and the value added of becoming a SAP-certified
g g g g g g g g g g g g g g




consultant.
g




Point out that the importance of the WileyPLUS online supplements and the value added to
g g g g g g g g g g g g g g




passing the SAP Certification exam. Reinforce the point that using this textbook and the
g g g g g g g g g g g g g g




ancillary materials can substitute for taking a formal TERP 10 course.
g g g g g g g g g g g




Review questions
g




1. Question:
Describe the functional organizational structure. Why do you think this structure is so common?
g g g g g g g g g g g g g



.
Answer:
The functional organization structure is divided into functions, or departments, each of which is
g g g g g g g g g g g g g



gresponsible for a set of closely related activities. This type of organizational structure is widely
g g g g g g g g g g g g g g



gused because it spreads the responsibility across an organization instead of locating it in one
g g g g g g g g g g g g g g



gparticular person or group. In addition, it enables people to specialize in terms of skills and
g g g g g g g g g g g g g g g



gknowledge.

2. Question:
What is the silo effect? Why does it exist? How can an organization reduce or eliminate the silo
g g g g g g g g g g g g g g g g g



effect?
g



.
Answer:
The silo effect refers to an organizational structure in which workers complete their tasks in
g g g g g g g g g g g g g g



their functional “silos” without regard to the consequences for the other functions in the
g g g g g g g g g g g g g g



process. This situation exists because each department within a functional organization works
g g g g g g g g g g g g



independently and focuses on its objectives. This tendency can be reduced by thinking sideways
g g g g g g g g g g g g g g



or viewing the business across functional boundaries and focusing on the end-to-end nature of
g g g g g g g g g g g g g g



the process and its intended outcomes.
g g g g g g




3. Question:
What is a business processes? Why is a process view of organizations essential to becoming a
g g g g g g g g g g g g g g g



successful manager?
g g



.
Answer:
A business process is a set of tasks or activities that produce desired outcomes. Every process is
g g g g g g g g g g g g g g g g



triggered by some event, such as receiving a customer order or recognizing the need to
g g g g g g g g g g g g g g g



purchase something. A process view can liberate managers from the silo effect. Managers must
g g g g g g g g g g g g g g