TEST BANK FOR INTEGRATED BUSINESS PROCESS
ES WITH ERP SYSTEMS 1ST EDITION BY SIMHA R M
,Chapter 1: Introduction to Business
c c c c
Process
c
Learning cObjectives
After ccompleting cthis cchapter cyou cwill cbe cable cto:
1. Define cthe cfunctional corganizational cstructure, cand cexplain cwhy cthis cstructure ccreates
cproblems cfor cmodern cbusinesses
2. Describe ckey cbusiness cprocesses cin can corganization
3. Identify cthe cmain cintegration cpoints cbetween cand camong cprocesses
4. Understand cthe ccross-functional cnature cof cprocesses cand ctheir crelationship cto
corganizational careas
5. Adopt cand capply can cintegrated cperspective cto cbusiness cprocesses
6. Describe cGBI’s corganizational cstructure
7. Explain chow cthe cSAP csystem cpromotes can cintegrated capproach cto cbusiness cprocesses
Chapter cOutline cand cTeaching cSuggestions
1. The cFunctional cOrganizational cStructure
a. The cSilo cEffect
b. Enterprise cSystems
Discuss chow ccompanies care corganized, cand cexplain cthat cthe cfunctional cstructure cis cthe
cmost ccommon corganizational cstructure. cYou ccan cuse ca cuniversity cor ccompany cor ca
cbusiness cschool cdepartment cthat cyou care cfamiliar cwith cas can cexample. cPoint cout cthat
cprocesses care ccross- cfunctional. cAsk cthe cquestion: cWhy cis cthe cfunctional cstructure cso
ccommon? cFigure c1-1 cwill cassist cyou cin cexplaining cthe ccross-functional cnature cof
cbusiness cprocesses.
Explain cthe csilo ceffect cand cits cnegative cimplications cfor cmodern cbusiness corganizations.
c You ccan cgive can cexample csuch cas ccreating ca csales corder cin csales cand cmarketing cwith
cno cintegration cor ccommunication cwith cinventory cmanagement cor cproduction.
Point cout cthat cthe cnature cof cthe cfunctional corganizational cstructure cand cthe ccross-
functional cnature cof cprocesses cdirectly cconflict cwith ceach cother.
Explain cthe cbenefits cof can centerprise csystem c(ES) c(i.e., csupports cend-to-end cprocesses,
cproductivity, ccompetitive cedge, cmonitoring cand cchanging cof cbusiness cprocesses, cetc.).
2. Business cProcesses
, a. Procurement c- cBuy
b. Production c- cMake
c. Fulfillment c- cSell
d. Material cPlanning c- cPlan
e. Inventory cand cWarehouse cManagement c- cStore
f. Lifecycle cData cManagement c- cDesign
g. Asset cManagement cand cCustomer cService c- cService
h. Human cCapital cManagement c- cPeople
i. Project cManagement c- cProjects
j. Financial cAccounting c- cTrack cfor cTrack cfor cExternal cReporting
k. Management cAccounting c- cTrack cfor cInternal cReporting
Define cand cexplain ca cbusiness cprocess. cPoint cout cthat corganizations cuse cmany cprocesses
cto cachieve ctheir cobjectives cand cthey cemploy cspecific cterms cto cidentify cthe cprocesses.
cProcesses ccan cbe cdirectly crelated cor cclosely crelated cto ccreating cand cdelivering cgoods
cand cservices. cUse cFigure c1-2 cto cillustrate ca cprocess cthat cis cexecuted cin cresponse cto ca
cneed c(trigger). cThe cprocess cis c carried cout cthrough ca csequence cof csteps cand cresults cin
can coutput. cYou ccan cuse can cexample csuch cas cordering csupplies.
Processes ccan cbe csupported cby cother cprocesses cand ccan chave cnumerous csub-processes.
cPoint cout cthat ccommunication cand ccoordination cof ctasks care cvery cimportant. cFigure c1-3
ccan cassist cyou cin cexplaining cthis cpoint. c Ask cstudents cto cindentify csome cother cprocesses
cthat cthey care cfamiliar cwith.
Describe cand cgive cexamples cof cthe cbusiness cprocesses c(A c- cK). cFigures c1-4 cthrough c1-10
cwill cassist cyou.
3. Global cBicycle, cIncorporated c(GBI)
Explain cthat cGlobal cBicycle, cIncorporated c(GBI) cis ca cfictional ccompany cthat cis cused cto
cillustrate cthe cimportant cconcepts, cprocesses, cand ctechniques cdiscussed cin cthe ctextbook.
c Figure c1-11 cwill cassist cyou cin cexplaining cGBI's corganizational cstructure.
Call cup cthe cSAP cUniversity cAlliance cCommunity c(UAC) cwebsite chttp://uac.sap.com, cand
cdemonstrate cthe cfunctionality cand cservices cavailable cfor cstudents. c Also cinstruct cstudents
cto cread cthe cGBI cBackround cDocument con cthe cUAC cto cunderstand cGBI’s chistory,
cproducts cand coperations.
4. How cTo cUse cThis cBook
a. Chapter cStructure
b. SAP cSoftware cand cCertification
c. WileyPLUS
, Explain cthe cfour ckey csections cin cmost cof cthe cprocess cchapters. c Provide ca cbrief
cbackground con cthe corigins cof cSAP cand cthe cproblems cit cinitially csolved.
Explain cthat cmost cSAP cconsultants care cnot cprogrammers cand chave cmastered cthe
cmaterial cpresented cin cthis cbook.
Explain cthe cthree clevels cof cSAP cCertification cand cthe cvalue cadded cof cbecoming ca cSAP-
certified cconsultant.
Point cout cthat cthe cimportance cof cthe cWileyPLUS conline csupplements cand cthe cvalue
cadded cto cpassing cthe cSAP cCertification cexam. cReinforce cthe cpoint cthat cusing cthis
ctextbook cand cthe cancillary cmaterials ccan csubstitute cfor ctaking ca cformal cTERP c10
ccourse.
Review cquestions
1. Question:
Describe cthe cfunctional corganizational cstructure. c Why cdo cyou cthink cthis cstructure cis cso ccommon?
.
Answer:
The cfunctional corganization cstructure cis cdivided cinto cfunctions, cor cdepartments, ceach cof
cwhich cis cresponsible cfor ca cset cof cclosely crelated cactivities. cThis ctype cof corganizational
cstructure cis cwidely cused cbecause cit cspreads cthe cresponsibility cacross can corganization
cinstead cof clocating cit cin cone cparticular cperson cor cgroup. cIn caddition, cit cenables cpeople
cto cspecialize cin cterms cof cskills cand cknowledge.
2. Question:
What cis cthe csilo ceffect? c Why cdoes cit cexist? c How ccan can corganization creduce cor
celiminate cthe csilo ceffect?
.
Answer:
The csilo ceffect crefers cto can corganizational cstructure cin cwhich cworkers ccomplete ctheir
ctasks cin c their cfunctional c“silos” cwithout cregard cto cthe cconsequences cfor cthe cother
cfunctions cin cthe cprocess. c This csituation cexists cbecause ceach cdepartment cwithin ca
cfunctional corganization cworks cindependently cand cfocuses con cits cobjectives. c This ctendency
ccan cbe creduced cby cthinking csideways cor cviewing cthe cbusiness cacross cfunctional
cboundaries cand cfocusing con cthe cend-to-end cnature cof cthe cprocess cand cits cintended
coutcomes.
3. Question:
What cis ca cbusiness cprocesses? c Why cis ca cprocess cview cof corganizations cessential cto
cbecoming ca csuccessful cmanager?
.
Answer:
A cbusiness cprocess cis ca cset cof ctasks cor cactivities cthat cproduce cdesired coutcomes. c Every
cprocess cis ctriggered cby csome cevent, csuch cas creceiving ca ccustomer corder cor crecognizing
cthe cneed cto c purchase csomething. c A cprocess cview ccan cliberate cmanagers cfrom cthe csilo
ceffect. c Managers cmust
ES WITH ERP SYSTEMS 1ST EDITION BY SIMHA R M
,Chapter 1: Introduction to Business
c c c c
Process
c
Learning cObjectives
After ccompleting cthis cchapter cyou cwill cbe cable cto:
1. Define cthe cfunctional corganizational cstructure, cand cexplain cwhy cthis cstructure ccreates
cproblems cfor cmodern cbusinesses
2. Describe ckey cbusiness cprocesses cin can corganization
3. Identify cthe cmain cintegration cpoints cbetween cand camong cprocesses
4. Understand cthe ccross-functional cnature cof cprocesses cand ctheir crelationship cto
corganizational careas
5. Adopt cand capply can cintegrated cperspective cto cbusiness cprocesses
6. Describe cGBI’s corganizational cstructure
7. Explain chow cthe cSAP csystem cpromotes can cintegrated capproach cto cbusiness cprocesses
Chapter cOutline cand cTeaching cSuggestions
1. The cFunctional cOrganizational cStructure
a. The cSilo cEffect
b. Enterprise cSystems
Discuss chow ccompanies care corganized, cand cexplain cthat cthe cfunctional cstructure cis cthe
cmost ccommon corganizational cstructure. cYou ccan cuse ca cuniversity cor ccompany cor ca
cbusiness cschool cdepartment cthat cyou care cfamiliar cwith cas can cexample. cPoint cout cthat
cprocesses care ccross- cfunctional. cAsk cthe cquestion: cWhy cis cthe cfunctional cstructure cso
ccommon? cFigure c1-1 cwill cassist cyou cin cexplaining cthe ccross-functional cnature cof
cbusiness cprocesses.
Explain cthe csilo ceffect cand cits cnegative cimplications cfor cmodern cbusiness corganizations.
c You ccan cgive can cexample csuch cas ccreating ca csales corder cin csales cand cmarketing cwith
cno cintegration cor ccommunication cwith cinventory cmanagement cor cproduction.
Point cout cthat cthe cnature cof cthe cfunctional corganizational cstructure cand cthe ccross-
functional cnature cof cprocesses cdirectly cconflict cwith ceach cother.
Explain cthe cbenefits cof can centerprise csystem c(ES) c(i.e., csupports cend-to-end cprocesses,
cproductivity, ccompetitive cedge, cmonitoring cand cchanging cof cbusiness cprocesses, cetc.).
2. Business cProcesses
, a. Procurement c- cBuy
b. Production c- cMake
c. Fulfillment c- cSell
d. Material cPlanning c- cPlan
e. Inventory cand cWarehouse cManagement c- cStore
f. Lifecycle cData cManagement c- cDesign
g. Asset cManagement cand cCustomer cService c- cService
h. Human cCapital cManagement c- cPeople
i. Project cManagement c- cProjects
j. Financial cAccounting c- cTrack cfor cTrack cfor cExternal cReporting
k. Management cAccounting c- cTrack cfor cInternal cReporting
Define cand cexplain ca cbusiness cprocess. cPoint cout cthat corganizations cuse cmany cprocesses
cto cachieve ctheir cobjectives cand cthey cemploy cspecific cterms cto cidentify cthe cprocesses.
cProcesses ccan cbe cdirectly crelated cor cclosely crelated cto ccreating cand cdelivering cgoods
cand cservices. cUse cFigure c1-2 cto cillustrate ca cprocess cthat cis cexecuted cin cresponse cto ca
cneed c(trigger). cThe cprocess cis c carried cout cthrough ca csequence cof csteps cand cresults cin
can coutput. cYou ccan cuse can cexample csuch cas cordering csupplies.
Processes ccan cbe csupported cby cother cprocesses cand ccan chave cnumerous csub-processes.
cPoint cout cthat ccommunication cand ccoordination cof ctasks care cvery cimportant. cFigure c1-3
ccan cassist cyou cin cexplaining cthis cpoint. c Ask cstudents cto cindentify csome cother cprocesses
cthat cthey care cfamiliar cwith.
Describe cand cgive cexamples cof cthe cbusiness cprocesses c(A c- cK). cFigures c1-4 cthrough c1-10
cwill cassist cyou.
3. Global cBicycle, cIncorporated c(GBI)
Explain cthat cGlobal cBicycle, cIncorporated c(GBI) cis ca cfictional ccompany cthat cis cused cto
cillustrate cthe cimportant cconcepts, cprocesses, cand ctechniques cdiscussed cin cthe ctextbook.
c Figure c1-11 cwill cassist cyou cin cexplaining cGBI's corganizational cstructure.
Call cup cthe cSAP cUniversity cAlliance cCommunity c(UAC) cwebsite chttp://uac.sap.com, cand
cdemonstrate cthe cfunctionality cand cservices cavailable cfor cstudents. c Also cinstruct cstudents
cto cread cthe cGBI cBackround cDocument con cthe cUAC cto cunderstand cGBI’s chistory,
cproducts cand coperations.
4. How cTo cUse cThis cBook
a. Chapter cStructure
b. SAP cSoftware cand cCertification
c. WileyPLUS
, Explain cthe cfour ckey csections cin cmost cof cthe cprocess cchapters. c Provide ca cbrief
cbackground con cthe corigins cof cSAP cand cthe cproblems cit cinitially csolved.
Explain cthat cmost cSAP cconsultants care cnot cprogrammers cand chave cmastered cthe
cmaterial cpresented cin cthis cbook.
Explain cthe cthree clevels cof cSAP cCertification cand cthe cvalue cadded cof cbecoming ca cSAP-
certified cconsultant.
Point cout cthat cthe cimportance cof cthe cWileyPLUS conline csupplements cand cthe cvalue
cadded cto cpassing cthe cSAP cCertification cexam. cReinforce cthe cpoint cthat cusing cthis
ctextbook cand cthe cancillary cmaterials ccan csubstitute cfor ctaking ca cformal cTERP c10
ccourse.
Review cquestions
1. Question:
Describe cthe cfunctional corganizational cstructure. c Why cdo cyou cthink cthis cstructure cis cso ccommon?
.
Answer:
The cfunctional corganization cstructure cis cdivided cinto cfunctions, cor cdepartments, ceach cof
cwhich cis cresponsible cfor ca cset cof cclosely crelated cactivities. cThis ctype cof corganizational
cstructure cis cwidely cused cbecause cit cspreads cthe cresponsibility cacross can corganization
cinstead cof clocating cit cin cone cparticular cperson cor cgroup. cIn caddition, cit cenables cpeople
cto cspecialize cin cterms cof cskills cand cknowledge.
2. Question:
What cis cthe csilo ceffect? c Why cdoes cit cexist? c How ccan can corganization creduce cor
celiminate cthe csilo ceffect?
.
Answer:
The csilo ceffect crefers cto can corganizational cstructure cin cwhich cworkers ccomplete ctheir
ctasks cin c their cfunctional c“silos” cwithout cregard cto cthe cconsequences cfor cthe cother
cfunctions cin cthe cprocess. c This csituation cexists cbecause ceach cdepartment cwithin ca
cfunctional corganization cworks cindependently cand cfocuses con cits cobjectives. c This ctendency
ccan cbe creduced cby cthinking csideways cor cviewing cthe cbusiness cacross cfunctional
cboundaries cand cfocusing con cthe cend-to-end cnature cof cthe cprocess cand cits cintended
coutcomes.
3. Question:
What cis ca cbusiness cprocesses? c Why cis ca cprocess cview cof corganizations cessential cto
cbecoming ca csuccessful cmanager?
.
Answer:
A cbusiness cprocess cis ca cset cof ctasks cor cactivities cthat cproduce cdesired coutcomes. c Every
cprocess cis ctriggered cby csome cevent, csuch cas creceiving ca ccustomer corder cor crecognizing
cthe cneed cto c purchase csomething. c A cprocess cview ccan cliberate cmanagers cfrom cthe csilo
ceffect. c Managers cmust
