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

,Chapter 1: Introduction to Business j j j j




Process
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Learning Objectives j




After completing this chapter you will be able to:
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1. Define the functional organizational structure, and explain why this structure creates problems for
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modern businesses
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2. Describe key business processes in an organization j j j j j j



3. Identify the main integration points between and among processes
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4. Understand the cross-functional nature of processes and their relationship to organizational
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areas
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5. Adopt and apply an integrated perspective to business processes
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6. Describe GBI’s organizational structure j j j



7. Explain how the SAP system promotes an integrated approach to business processes
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Chapter Outline and Teaching Suggestions
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1. The Functional Organizational Structure
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a. The Silo Effect j j




b. Enterprise Systems j




Discuss how companies are organized, and explain that the functional structure is the most
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common organizational structure. You can use a university or company or a business school
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department that you are familiar with as an example. Point out that processes are cross-
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functional. Ask the question: Why is the functional structure so common? Figure 1-1 will assist you
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in explaining the cross-functional nature of business processes.
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Explain the silo effect and its negative implications for modern business organizations. You can
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give an example such as creating a sales order in sales and marketing with no integration or
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communication with inventory management or production.
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Point out that the nature of the functional organizational structure and the cross-functional
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nature of processes directly conflict with each other.
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Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end processes,
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productivity, competitive edge, monitoring and changing of business processes, etc.).
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2. Business Processes j

, a. Procurement - Buy j j




b. Production - Make j j




c. Fulfillment - Sell j j




d. Material Planning - Plan j j j




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




f. Lifecycle Data Management - Design j j j j




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




h. Human Capital Management - People j j j j




i. Project Management - Projects j j j




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




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




Define and explain a business process. Point out that organizations use many processes to
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achieve their objectives and they employ specific terms to identify the processes. Processes can be
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directly related or closely related to creating and delivering goods and services. Use Figure 1-2 to
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illustrate a process that is executed in response to a need (trigger). The process is carried out
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through a sequence of steps and results in an output. You can use an example such as ordering
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supplies.
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Processes can be supported by other processes and can have numerous sub-processes. Point out
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that communication and coordination of tasks are very important. Figure 1-3 can assist you in
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explaining this point. Ask students to indentify some other processes that they are familiar with.
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Describe and give examples of the business processes (A - K). Figures 1-4 through 1-10 will assist
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you.
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3. Global Bicycle, Incorporated (GBI)
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Explain that Global Bicycle, Incorporated (GBI) is a fictional company that is used to illustrate the
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important concepts, processes, and techniques discussed in the textbook. Figure 1-11 will assist
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you in explaining GBI's organizational structure.
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Call up the SAP University Alliance Community (UAC) website http://uac.sap.com, and
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demonstrate the functionality and services available for students. Also instruct students to read
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the GBI Backround Document on the UAC to understand GBI’s history, products and operations.
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4. How To Use This Book
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a. Chapter Structure j




b. SAP Software and Certification j j j




c. WileyPLUS

, Explain the four key sections in most of the process chapters. Provide a brief background on the
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origins of SAP and the problems it initially solved.
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Explain that most SAP consultants are not programmers and have mastered the material
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presented in this book.
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Explain the three levels of SAP Certification and the value added of becoming a SAP-certified
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consultant.
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Point out that the importance of the WileyPLUS online supplements and the value added to
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passing the SAP Certification exam. Reinforce the point that using this textbook and the ancillary
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materials can substitute for taking a formal TERP 10 course.
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Review questions
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1. Question:
Describe the functional organizational structure. Why do you think this structure is so common?
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.
Answer:
The functional organization structure is divided into functions, or departments, each of which is
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responsible for a set of closely related activities. This type of organizational structure is widely used
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because it spreads the responsibility across an organization instead of locating it in one particular
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person or group. In addition, it enables people to specialize in terms of skills and knowledge.
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2. Question:
What is the silo effect? Why does it exist? How can an organization reduce or eliminate the silo
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effect?
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.
Answer:
The silo effect refers to an organizational structure in which workers complete their tasks in their
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functional “silos” without regard to the consequences for the other functions in the process. This
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situation exists because each department within a functional organization works independently
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and focuses on its objectives. This tendency can be reduced by thinking sideways or viewing the
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business across functional boundaries and focusing on the end-to-end nature of the process and its
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intended outcomes.
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3. Question:
What is a business processes? Why is a process view of organizations essential to becoming a
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successful manager?
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Answer:
A business process is a set of tasks or activities that produce desired outcomes. Every process is
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triggered by some event, such as receiving a customer order or recognizing the need to purchase
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something. A process view can liberate managers from the silo effect. Managers must
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