ISDS 351 FINAL EXAM STUDY GUIDE
Chapter 8
Goal of ERP system - Answer -goal is to enable easy access to business data & create
efficient, streamlined work processes
how is goal of ERP system achieved - Answer -achieved by building one single
database that is accessed by multiple software modules ----provide support for key
business functions for diff areas of an organization
ERP databases (3): - Answer -1. production and supply chain management
2. customer relationship management & sales ordering
3. financial and managerial accounting
Benefits of ERP systems - Answer -1. Improved access to Quality data for operational
decision making
2. Improvement of work processes.
Tier 1 vendors - Answer -- target large multinational firms w/ multiple locations --annual
revenue in excess of 1 bill
- solutions: highly complex & expensive to implement & support; implementation -
multiple locations -take yrs
- primary vendors are Oracle & SAP
Tier II vendors - Answer -- target medium-sized firms w/ annual revenue ($50 mill to $1
bill) - operating out of 1 or more locations
- solutions: much less complex & less expensive to implement & support
- two dozen or more vendors (Oracle, SAP, Microsoft, Infor, Epicor, & Lawson)
Tier III vendors - Answer -- target smaller firms w/ annual revenue ($10 mill to $50 mill)
-typically operate out of a single location
- solutions: comparatively easy & inexpensive to implement & support
- dozens of vendors (ABAS, Bluebee Software, Cincom Systems, Compiere, ESP
Technologies, Frontier Software, GCS Software, Microsoft, Netsuite, PDS, Plex, &
Syspro)
*****Many of the tier I and tier II vendors also offer solutions for smaller firms***
ERP Customization - Answer -- Organizations customize an ERP software to:
a. Integrate other business systems
b. Add data fields or change field sizes
c. Meet regulatory requirements
- Open-source ERP systems allow organizations to modify the source code to meet
their needs
, Open source software - Answer -- an alternative to contracting w/ service organizations
to customize an ERP system, many organizations elect to implement __________
systems from vendors such as Compiere.
- W/ this software, organizations can see & modify source code to customize - to meet
their needs.
- Such systems are much less costly to acquire & are relatively easy to modify to meet
changing business needs.
Supply chain Management - Answer -planning, execution, & control of all activities
involved in raw material sourcing & procurement, conversion of raw materials to finished
products, warehousing & delivery of finished products to customers.
supply chain management goal - Answer -decrease costs and improve customer
service, while at the same time reducing the overall investment in inventory in the
supply chain.
supply chain management processes (5) - Answer -1. Demand planning
2. Sourcing
3. Manufacturing
4. Logistics
5. Customer service
Demand planning - Answer --determining demand for company's products by taking
into account all factors that can affect demand (ex: pricing, promotions, advertising
activities; general economic conditions; actions by competitors & regulatory agencies;
holidays; weather, etc)
-Some organizations --implemented collaborative forecasting, planning, &
replenishment process
Sourcing - Answer --choosing suppliers and establishing contract terms to provide raw
material needed to create products
Manufacturing - Answer -Producing, testing, packaging, & preparing products for
delivery; may involve use of contract manufacturers
Logistics - Answer -Est network of warehouses for storing products; choosing carriers
to deliver products to customers; & scheduling carrier pickups so that product is
delivered to customers/warehouses on timely basis
Customer service - Answer -Improving customer experience & increasing customer
satisfaction (ex: dealing w/ problems caused by over-shipments (customer receives
more of a particular item than expected), short-shipments (customer receives less of a
particular item than expected), & products damaged during transit
Customer relationship management - Answer -helps a company manage all aspects of
customer encounters (marketing, sales, distribution, accounting, customer service)
Chapter 8
Goal of ERP system - Answer -goal is to enable easy access to business data & create
efficient, streamlined work processes
how is goal of ERP system achieved - Answer -achieved by building one single
database that is accessed by multiple software modules ----provide support for key
business functions for diff areas of an organization
ERP databases (3): - Answer -1. production and supply chain management
2. customer relationship management & sales ordering
3. financial and managerial accounting
Benefits of ERP systems - Answer -1. Improved access to Quality data for operational
decision making
2. Improvement of work processes.
Tier 1 vendors - Answer -- target large multinational firms w/ multiple locations --annual
revenue in excess of 1 bill
- solutions: highly complex & expensive to implement & support; implementation -
multiple locations -take yrs
- primary vendors are Oracle & SAP
Tier II vendors - Answer -- target medium-sized firms w/ annual revenue ($50 mill to $1
bill) - operating out of 1 or more locations
- solutions: much less complex & less expensive to implement & support
- two dozen or more vendors (Oracle, SAP, Microsoft, Infor, Epicor, & Lawson)
Tier III vendors - Answer -- target smaller firms w/ annual revenue ($10 mill to $50 mill)
-typically operate out of a single location
- solutions: comparatively easy & inexpensive to implement & support
- dozens of vendors (ABAS, Bluebee Software, Cincom Systems, Compiere, ESP
Technologies, Frontier Software, GCS Software, Microsoft, Netsuite, PDS, Plex, &
Syspro)
*****Many of the tier I and tier II vendors also offer solutions for smaller firms***
ERP Customization - Answer -- Organizations customize an ERP software to:
a. Integrate other business systems
b. Add data fields or change field sizes
c. Meet regulatory requirements
- Open-source ERP systems allow organizations to modify the source code to meet
their needs
, Open source software - Answer -- an alternative to contracting w/ service organizations
to customize an ERP system, many organizations elect to implement __________
systems from vendors such as Compiere.
- W/ this software, organizations can see & modify source code to customize - to meet
their needs.
- Such systems are much less costly to acquire & are relatively easy to modify to meet
changing business needs.
Supply chain Management - Answer -planning, execution, & control of all activities
involved in raw material sourcing & procurement, conversion of raw materials to finished
products, warehousing & delivery of finished products to customers.
supply chain management goal - Answer -decrease costs and improve customer
service, while at the same time reducing the overall investment in inventory in the
supply chain.
supply chain management processes (5) - Answer -1. Demand planning
2. Sourcing
3. Manufacturing
4. Logistics
5. Customer service
Demand planning - Answer --determining demand for company's products by taking
into account all factors that can affect demand (ex: pricing, promotions, advertising
activities; general economic conditions; actions by competitors & regulatory agencies;
holidays; weather, etc)
-Some organizations --implemented collaborative forecasting, planning, &
replenishment process
Sourcing - Answer --choosing suppliers and establishing contract terms to provide raw
material needed to create products
Manufacturing - Answer -Producing, testing, packaging, & preparing products for
delivery; may involve use of contract manufacturers
Logistics - Answer -Est network of warehouses for storing products; choosing carriers
to deliver products to customers; & scheduling carrier pickups so that product is
delivered to customers/warehouses on timely basis
Customer service - Answer -Improving customer experience & increasing customer
satisfaction (ex: dealing w/ problems caused by over-shipments (customer receives
more of a particular item than expected), short-shipments (customer receives less of a
particular item than expected), & products damaged during transit
Customer relationship management - Answer -helps a company manage all aspects of
customer encounters (marketing, sales, distribution, accounting, customer service)
