Chapter 15
Review Questions
R1. Explain the three conditions that must be met to satisfy a database orientation.
A database orientation requires the following three conditions to be met
Data must be stored at their most primitive levels, at least for a defined time
period.
Data must be stored only once, and such that all authorized decision makers
can access the data.
Data must be stored so as to allow retrieval in various formats as needed for
different purposes.
R2. Bolt-on applications and best of breed software are both concepts associated with
ERP software. What is the difference between these concepts?
Bolt-on applications are non-ERP software programs that can be added to
existing ERP software applications to provide additional functionality. Best of
breed software is the use of modules from various ERP software packages in
conjunction with each other rather than using modules from only a single ERP
software package. Some differences are that bolt-on applications are used to
provide functionality not typically found in any of the ERP software packages and
the bolt-on applications are typically created by non-ERP vendors.
R3. What is the difference between intra-enterprise integration and inter-enterprise
integration?
Intra-enterprise integration refers to integration within a single enterprise and
inter-enterprise integration refers to integration of different enterprises. Intra-
enterprise integration requires cooperation of different departments or functional
areas within an enterprise; whereas inter-enterprise integration requires
cooperation among different enterprises.
R4. What does it mean to have data stored at its most primitive level?
Data stored at its most primitive level cannot be disaggregated any further.
194 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
,Chapter 15
R5. What is the difference between back-office and front-office activities?
Back-office is a term that is often used in business to describe activities or
systems that are only seen and used by people within enterprises; external
partners such as vendors and customers do not usually see back-office activities.
The systems and activities external partners normally do see are referred to as
“front-office” systems and activities. For example, activities and systems used in
the sales showroom are front-office dealings because customers see and interact
with them.
R6. To what extent is B2C e-commerce different from B2C commerce?
B2C e-commerce is not significantly different from B2C commerce without
electronics, e.g. via catalog mail orders, telephone orders, or customer pickup. In
those scenarios a customer inquires (or is informed through a marketing event)
about goods or services, the customer places an order for goods or services to
be delivered, the enterprise delivers the goods or services to the customer, and
the customer renders payment to the enterprise for the goods or services. The
simple change in communication technology by which the order is placed and/or
by which the payment is rendered doesn’t change the nature of the business
process or the structure of the system needed to capture relevant information.
The primary differences in B2C commerce enabled by electronic technology are
the breaking down of time, place, and form barriers. The time barrier is broken in
that no longer is consumer access to certain business information restricted to
normal business hours; information may be posted to web sites and made
accessible 24 hours per day, 7 days per week, 52 weeks per year. The place
barrier is broken in that consumers do not need to physically transport
themselves to business locations in order to engage in transactions with the
businesses. They can shop from the comfort of their easy chair with a few clicks
of a mouse, and they can obtain product information and products from suppliers
around the world from whom they may not have been able to obtain information
before the advent of B2C e-commerce. B2C e-commerce also breaks the form
barrier in that businesses no longer need to be a particular form or size in order
to attract and satisfy customers. A small enterprise that can’t afford a fancy
physical storefront may be able to attract customers with a well-designed web-
based storefront. Consumers typically do not have automated information
systems that need to be seamlessly integrated with the businesses’ information
systems. Thus e-commerce technology advances create little apparent need to
change the focus of enterprise systems from an intra-enterprise view to an inter-
enterprise view.
195 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
, ERP Systems and E-Commerce:
Intra- and Inter- Enterprise Modeling
R7. How has B2B commerce changed with advances in electronic technology?
B2B commerce has undergone a shift that requires an inter-enterprise view of enterprise
systems. This shift is away from a traditional linear supply chain/value system to the
current “value webs” in which enterprises need information not just about their most
direct external partners but also about indirect partners. For example, enterprises today
increasingly need information about product demand by their customers’ customers. It is
difficult to say whether this shift occurred because of advances in technology or whether
the increasing information needs driving enterprises toward e-commerce in fact
necessitated the technological developments.
R8. Which technology makes information exchange between a small supplier and a
large customer more feasible: electronic data interchange or the Internet?
The Internet makes information exchange between a small supplier and a large
customer more feasible than does electronic data interchange (EDI). EDI
involves the exchange of data between enterprises in a prescribed electronic format,
usually through a VAN (value added network). The VAN connections between
enterprises and the software used to accomplish EDI are proprietary and expensive.
Small suppliers will find it difficult to justify the expense of the proprietary hardware and
software. The Internet is accessible for low monetary investments and new software
applications are available that accomplish the goals of EDI without the need for the
expensive, proprietary equipment.
Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e 196
, Chapter 15
Discussion Questions
D1. How do the semantic orientations of ERP systems and the REA enterprise
ontology differ?
The goal of semantic orientation requires objects in a system’s conceptual model
to correspond as closely as possible to objects in the underlying reality. At first
glance both ERP-based systems and REA-based systems share the semantic
orientation goal; however, there are important differences. Whereas ERP
software requires the business to be changed to match the software, REA tailors
the system to match the business’s reality. This difference may be necessary in
order for ERP software to be commercially viable. To date, REA-based systems
have been built as proprietary applications as part of custom consulting
engagements.
D2. Do you agree or disagree with the claim that debits, credits, and general ledger
accounts are artifacts? Explain why you agree or disagree.
Hopefully you agree with the claim that debits, credits, and general ledger
accounts are artifacts. They are much like mechanisms for keeping track of the
score of a sports event. Whether the score is kept on a small pad of paper using
a pencil or displayed on a four-sided electronic device capable of showing instant
replays and suspended high in the air for all to see, doesn’t affect the nature of
the sports event itself. Similarly, whether we keep score for business events
using debits, credits and a general ledger, or whether we use relational database
tables, doesn’t affect the nature of the business events.
D3. Do you believe the REA enterprise ontology provides a valid theoretical foundation
for ERP software? Explain why or why not.
Hopefully you believe the REA enterprise ontology provides a valid theoretical
foundation for ERP software, since both have as their goal the enterprise-wide
storage and accessibility of information needed to effectively operate enterprises
and to communicate with business partners.
D4. Can you think of an alternative pattern to use as a structuring orientation for
enterprise systems? Describe the components of your pattern and specify any
rules you can identify for the behavior of those components.
Answers will vary depending on student creativity.
197 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
Review Questions
R1. Explain the three conditions that must be met to satisfy a database orientation.
A database orientation requires the following three conditions to be met
Data must be stored at their most primitive levels, at least for a defined time
period.
Data must be stored only once, and such that all authorized decision makers
can access the data.
Data must be stored so as to allow retrieval in various formats as needed for
different purposes.
R2. Bolt-on applications and best of breed software are both concepts associated with
ERP software. What is the difference between these concepts?
Bolt-on applications are non-ERP software programs that can be added to
existing ERP software applications to provide additional functionality. Best of
breed software is the use of modules from various ERP software packages in
conjunction with each other rather than using modules from only a single ERP
software package. Some differences are that bolt-on applications are used to
provide functionality not typically found in any of the ERP software packages and
the bolt-on applications are typically created by non-ERP vendors.
R3. What is the difference between intra-enterprise integration and inter-enterprise
integration?
Intra-enterprise integration refers to integration within a single enterprise and
inter-enterprise integration refers to integration of different enterprises. Intra-
enterprise integration requires cooperation of different departments or functional
areas within an enterprise; whereas inter-enterprise integration requires
cooperation among different enterprises.
R4. What does it mean to have data stored at its most primitive level?
Data stored at its most primitive level cannot be disaggregated any further.
194 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
,Chapter 15
R5. What is the difference between back-office and front-office activities?
Back-office is a term that is often used in business to describe activities or
systems that are only seen and used by people within enterprises; external
partners such as vendors and customers do not usually see back-office activities.
The systems and activities external partners normally do see are referred to as
“front-office” systems and activities. For example, activities and systems used in
the sales showroom are front-office dealings because customers see and interact
with them.
R6. To what extent is B2C e-commerce different from B2C commerce?
B2C e-commerce is not significantly different from B2C commerce without
electronics, e.g. via catalog mail orders, telephone orders, or customer pickup. In
those scenarios a customer inquires (or is informed through a marketing event)
about goods or services, the customer places an order for goods or services to
be delivered, the enterprise delivers the goods or services to the customer, and
the customer renders payment to the enterprise for the goods or services. The
simple change in communication technology by which the order is placed and/or
by which the payment is rendered doesn’t change the nature of the business
process or the structure of the system needed to capture relevant information.
The primary differences in B2C commerce enabled by electronic technology are
the breaking down of time, place, and form barriers. The time barrier is broken in
that no longer is consumer access to certain business information restricted to
normal business hours; information may be posted to web sites and made
accessible 24 hours per day, 7 days per week, 52 weeks per year. The place
barrier is broken in that consumers do not need to physically transport
themselves to business locations in order to engage in transactions with the
businesses. They can shop from the comfort of their easy chair with a few clicks
of a mouse, and they can obtain product information and products from suppliers
around the world from whom they may not have been able to obtain information
before the advent of B2C e-commerce. B2C e-commerce also breaks the form
barrier in that businesses no longer need to be a particular form or size in order
to attract and satisfy customers. A small enterprise that can’t afford a fancy
physical storefront may be able to attract customers with a well-designed web-
based storefront. Consumers typically do not have automated information
systems that need to be seamlessly integrated with the businesses’ information
systems. Thus e-commerce technology advances create little apparent need to
change the focus of enterprise systems from an intra-enterprise view to an inter-
enterprise view.
195 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
, ERP Systems and E-Commerce:
Intra- and Inter- Enterprise Modeling
R7. How has B2B commerce changed with advances in electronic technology?
B2B commerce has undergone a shift that requires an inter-enterprise view of enterprise
systems. This shift is away from a traditional linear supply chain/value system to the
current “value webs” in which enterprises need information not just about their most
direct external partners but also about indirect partners. For example, enterprises today
increasingly need information about product demand by their customers’ customers. It is
difficult to say whether this shift occurred because of advances in technology or whether
the increasing information needs driving enterprises toward e-commerce in fact
necessitated the technological developments.
R8. Which technology makes information exchange between a small supplier and a
large customer more feasible: electronic data interchange or the Internet?
The Internet makes information exchange between a small supplier and a large
customer more feasible than does electronic data interchange (EDI). EDI
involves the exchange of data between enterprises in a prescribed electronic format,
usually through a VAN (value added network). The VAN connections between
enterprises and the software used to accomplish EDI are proprietary and expensive.
Small suppliers will find it difficult to justify the expense of the proprietary hardware and
software. The Internet is accessible for low monetary investments and new software
applications are available that accomplish the goals of EDI without the need for the
expensive, proprietary equipment.
Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e 196
, Chapter 15
Discussion Questions
D1. How do the semantic orientations of ERP systems and the REA enterprise
ontology differ?
The goal of semantic orientation requires objects in a system’s conceptual model
to correspond as closely as possible to objects in the underlying reality. At first
glance both ERP-based systems and REA-based systems share the semantic
orientation goal; however, there are important differences. Whereas ERP
software requires the business to be changed to match the software, REA tailors
the system to match the business’s reality. This difference may be necessary in
order for ERP software to be commercially viable. To date, REA-based systems
have been built as proprietary applications as part of custom consulting
engagements.
D2. Do you agree or disagree with the claim that debits, credits, and general ledger
accounts are artifacts? Explain why you agree or disagree.
Hopefully you agree with the claim that debits, credits, and general ledger
accounts are artifacts. They are much like mechanisms for keeping track of the
score of a sports event. Whether the score is kept on a small pad of paper using
a pencil or displayed on a four-sided electronic device capable of showing instant
replays and suspended high in the air for all to see, doesn’t affect the nature of
the sports event itself. Similarly, whether we keep score for business events
using debits, credits and a general ledger, or whether we use relational database
tables, doesn’t affect the nature of the business events.
D3. Do you believe the REA enterprise ontology provides a valid theoretical foundation
for ERP software? Explain why or why not.
Hopefully you believe the REA enterprise ontology provides a valid theoretical
foundation for ERP software, since both have as their goal the enterprise-wide
storage and accessibility of information needed to effectively operate enterprises
and to communicate with business partners.
D4. Can you think of an alternative pattern to use as a structuring orientation for
enterprise systems? Describe the components of your pattern and specify any
rules you can identify for the behavior of those components.
Answers will vary depending on student creativity.
197 Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e
