Chapter 8:
ERP and Electronic Commerce
Answers to End-of-Chapter Exercises
QUESTION 1
Sample Answer:
Some ideas in this memo might include:
-Efficiency
-Cost savings
-More competitive
-Better information
Preparation and Grading Guidelines:
Students should be able to read Chapter 8 and attend the lecture to answer this question
sufficiently. Memos that cover the main benefits of Internet procurement should be
awarded full credit.
QUESTION 2
Sample Answer:
An application service provider supplies organizations not only with software but also the
operation of that software, disk storage, and computing power and support.
Success and failure stories can be found on the Web. Exact failure stories might be hard
to come by but certainly students can find potential problems with ASPs and dangers to
look out for. One possible site would be:
http://www.infoms.com/wp-asp.html
Preparation and Grading Guidelines
The instructor should give the student some guidance as to how detailed this analysis of
success and failure needs to be. As mentioned in the sample answer, exact stories about
failure might be hard to come by. Instead, suggest to the student they find success stories
along with potential pitfalls in using ASPs. Full credit should be granted if the student
follows the instructor's guidelines and is able to articulate in which cases ASPs make
sense.
QUESTION 3
Sample Answer:
,Concepts in Enterprise Resource Planning, Third Edition 8-2
Students should find plenty of information on NetWeaver. The challenge will be to write
something that is understandable, as it is a difficult topic.
Some sites to look at:
http://www.sap.com/solutions/netweaver/index.epx
http://searchsap.techtarget.com/qna/0,289202,sid21_gci956297,00.html
http://www.informationweek.com/showArticle.jhtml?articleID=22102067
Preparation and Grading Guidelines
Students should be lectured on NetWeaver before attempting this exercise, since the
concepts are difficult for the average business student. Grading should be liberal, based
on the students' background.
QUESTION 4
Sample Answer:
There is so much news on RFIDs today in the popular press that the student should find
no problem in explaining the current status of this technology.
Preparation and Grading Guidelines:
Once the student has read the Chapter 8 material on RFIDs, they should be able to find
many articles that are understandable about what companies are doing with this
technology.
Grading should not only be determined by content, but also on the PowerPoint
presentation output. Guidelines might be:
-slides readable in terms of font, background, etc
-slides not too busy
-transitions or build effects
-interesting graphics
-good flow of content
,Concepts in Enterprise Resource Planning, Third Edition 8-3
Answers to Another Look Cases
Another Look - Using ERP through an Application Service Provider
QUESTION 1
Advantages:
-Up-to-date (new releases, bugs) installed software
-Knowledgeable systems staff
-Good server capacity
-Staffed helplines available
Disadvantages:
-Loss of control
QUESTION 2
Challenges:
-Keeping up with the software changes
-Running complicated software while doing other jobs
-Infrequent use, so difficult to remember how to run software
-Drastically varying levels of usage (many students and then no one)
For a small company:
-Keeping up with the software changes
-Running complicated software while doing other jobs
Another Look – BI at Rohm and Haas
QUESTION 1
Key performance indicators are concrete measurements which might take into account
financial measurements along with non-financial. Answers will vary with the industry
that interests the student.
Another Look - XML, ERP, and E-Commerce
QUESTION 1
Customers had varying levels of computing ability and access, so they wanted to let
everyone integrate via their own capabilities
QUESTION 2
Benefits:
, Concepts in Enterprise Resource Planning, Third Edition 8-4
Rapid flow of information allows for rapid filling of orders. Anticipation of low
inventory can automatically trigger an order so that the customer never runs out. Also,
this can automatically affect the supplier's production so they will always be prepared for
that order.
QUESTION 3
The answer to this question can be interpreted in many different ways. A very simplified
version of the processing part of the flowchart could look something like this: