MISY 5340 COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
Functional Organizational Structure - ✔✔Groups people by function (sales, finance,
production). Advantages: specialization and efficiency within each function.
Disadvantages: silo effect- departments focus only on their own goals, causing poor
communication across functions.
✔✔Silo Effect - ✔✔A functional area will perform the step in their process without fully
understanding the steps before them or the steps after. When information doesn't flow
between departments. Leads to delays, errors, duplication, and inefficiencies.
Enterprise Systems help reduce the silo effect.
✔✔Enterprise Systems (ES) - ✔✔Systems that support end-to-end processes and are
essential to the efficient and effective execution and management of business process.
Integrated software that connects all functions across an organization. Example; ERP
(enterprise resource planning) like SAP. Ensures real-time data sharing and cross-
department visibility.
✔✔Business Processes - ✔✔A sequence of tasks across departments to achieve a
business goal. Cross functional in nature (cutting across silos). Examples; procurement,
production, fulfillment.
✔✔Procurement Process (buy) - ✔✔Refers to all activities involved in buying or
acquiring the materials.
✔✔Project - ✔✔Temporary in nature and is typically associated with large, complex
activities.
✔✔Production Process (make) - ✔✔Involves the actual creation of the products within
the organization.
✔✔Fulfillment (sell) - ✔✔selling and delivering products to customers.
, ✔✔Material Planning Process (plan) - ✔✔Uses historical data and sales forecasts to
plan which materials will be procured and produced and in what quantities.
✔✔Inventory & Warehouse Management (store) - ✔✔involved with the storage and
movement of materials.
✔✔Lifecycle Data Management (design) - ✔✔Supports the design and developent of
products from initial product idea stage through discontinuation of the product.
✔✔Asset Management & Customer Service (service) - ✔✔maintaining equipment and
supporting customers.
✔✔Human Capital Management (people) - ✔✔focuses on people management:
recruiting, hiring, training, compensation and business management.
✔✔Project Management (projects) - ✔✔Used to plan and execute large projects.
✔✔Financial Accounting (external reporting) - ✔✔reporting to outside stakeholders.
✔✔Management Acounting or Controlling (CO) Processes - ✔✔(track internal) focus on
internal reporting to manage costs and revenues.
✔✔Global Bike Incorporated (GBI) - ✔✔Fictional company used to describe the
processes in our textbook. A case study company used in SAP exercises. Makes and
sells bikes and accessories worldwide. Used to illustrate real world application of
business processes.
✔✔SAP Software - ✔✔Market leader in ERP software. Integrates all business
processes (buy, make, sell, plan, etc). Provides real time data to improve efficiency and
decision making.
✔✔Application Layer - ✔✔What the application allows you to do (create formulas or
charts, compose and essay).
✔✔Application Platforms - ✔✔Allowing the various systems to communicate seamlessly
with one another as well as with systems outside the company.
✔✔Application Suite - ✔✔The collection of inter-company systems and the underlying
intra-company ERP systems.
✔✔Architecture - ✔✔Technical structure of the software, the ways users interact with
the software, and the way the software is physically managed on computer hardware.
QUESTIONS SET A+
Functional Organizational Structure - ✔✔Groups people by function (sales, finance,
production). Advantages: specialization and efficiency within each function.
Disadvantages: silo effect- departments focus only on their own goals, causing poor
communication across functions.
✔✔Silo Effect - ✔✔A functional area will perform the step in their process without fully
understanding the steps before them or the steps after. When information doesn't flow
between departments. Leads to delays, errors, duplication, and inefficiencies.
Enterprise Systems help reduce the silo effect.
✔✔Enterprise Systems (ES) - ✔✔Systems that support end-to-end processes and are
essential to the efficient and effective execution and management of business process.
Integrated software that connects all functions across an organization. Example; ERP
(enterprise resource planning) like SAP. Ensures real-time data sharing and cross-
department visibility.
✔✔Business Processes - ✔✔A sequence of tasks across departments to achieve a
business goal. Cross functional in nature (cutting across silos). Examples; procurement,
production, fulfillment.
✔✔Procurement Process (buy) - ✔✔Refers to all activities involved in buying or
acquiring the materials.
✔✔Project - ✔✔Temporary in nature and is typically associated with large, complex
activities.
✔✔Production Process (make) - ✔✔Involves the actual creation of the products within
the organization.
✔✔Fulfillment (sell) - ✔✔selling and delivering products to customers.
, ✔✔Material Planning Process (plan) - ✔✔Uses historical data and sales forecasts to
plan which materials will be procured and produced and in what quantities.
✔✔Inventory & Warehouse Management (store) - ✔✔involved with the storage and
movement of materials.
✔✔Lifecycle Data Management (design) - ✔✔Supports the design and developent of
products from initial product idea stage through discontinuation of the product.
✔✔Asset Management & Customer Service (service) - ✔✔maintaining equipment and
supporting customers.
✔✔Human Capital Management (people) - ✔✔focuses on people management:
recruiting, hiring, training, compensation and business management.
✔✔Project Management (projects) - ✔✔Used to plan and execute large projects.
✔✔Financial Accounting (external reporting) - ✔✔reporting to outside stakeholders.
✔✔Management Acounting or Controlling (CO) Processes - ✔✔(track internal) focus on
internal reporting to manage costs and revenues.
✔✔Global Bike Incorporated (GBI) - ✔✔Fictional company used to describe the
processes in our textbook. A case study company used in SAP exercises. Makes and
sells bikes and accessories worldwide. Used to illustrate real world application of
business processes.
✔✔SAP Software - ✔✔Market leader in ERP software. Integrates all business
processes (buy, make, sell, plan, etc). Provides real time data to improve efficiency and
decision making.
✔✔Application Layer - ✔✔What the application allows you to do (create formulas or
charts, compose and essay).
✔✔Application Platforms - ✔✔Allowing the various systems to communicate seamlessly
with one another as well as with systems outside the company.
✔✔Application Suite - ✔✔The collection of inter-company systems and the underlying
intra-company ERP systems.
✔✔Architecture - ✔✔Technical structure of the software, the ways users interact with
the software, and the way the software is physically managed on computer hardware.
