Copyright © 2014 Pearson Education, Inc. 1 It's what you learn after you know it all that counts. John Wooden Key Terms and Review (Chapter 7) Enhancing Business Processes Using Enterprise Information Systems

Copyright © 2014 Pearson Education, Inc. 2 Chapter 7 Learning Objectives Core Business Processes and Organizational Value Chains Explain core business processes that are common in organizations. Enterprise Systems Describe what enterprise systems are and how they have evolved. Enterprise Resource Planning Describe enterprise resource planning systems and how they help to improve internal business processes. The Formula for Enterprise System Success Understand and utilize the keys to successfully implementing enterprise systems.

Copyright © 2014 Pearson Education, Inc. 3 Business Process Management Systematic and structured improvement approach by all of part of an organization whereby people critically examine, rethink and redesign business processes in order to achieve dramatic improvements.

Copyright © 2014 Pearson Education, Inc. 4 Core Activities Include the main functions of an organization. Examples: inbound logistics (receiving), operations and manufacturing, outbound logistics (shipping), marketing and sales, customer service.

Copyright © 2014 Pearson Education, Inc. 5 Custom Software Applications that are designed and developed exclusively for a specific organization.

Copyright © 2014 Pearson Education, Inc. 6 Enterprise Resource Planning Applications that integrate business activities across departmental boundaries.

Copyright © 2014 Pearson Education, Inc. 7 Enterprise System An integrated suite of business applications for vitually every department, process and industry, allowing companies to integrate information across operations on a company- wide basis using one large database.

Copyright © 2014 Pearson Education, Inc. 8 ERP Core Components These components support the important internal activities of the organization for producing their products and services. Examples: – Financial Management – Operations Management – Human Resource Management

Copyright © 2014 Pearson Education, Inc. 9 Externally Focused System A system that coordinates business processes with customers, suppliers, business partners and other who operate outside an organization’s boundaries.

Copyright © 2014 Pearson Education, Inc. 10 Internally Focused System These systems support functional areas, business processes and decision making within an organization. These activities can be viewed as a series of links in a chain along which information flows within the organization.

Copyright © 2014 Pearson Education, Inc. 11 Legacy System Older, stand-alone systems (both software and hardware) that are nearing, at or beyond their useful life within an organization.

Copyright © 2014 Pearson Education, Inc. 12 Make-To-Order Raw materials, subcomponents and accessories are procured based on forecasts. Actual manufacturing does not start until sales orders are received.

Copyright © 2014 Pearson Education, Inc. 13 Make-To-Stock Goods are produced based on forecasts and are stocked in a warehouse. Sales Orders are then fulfilled from inventory.

Copyright © 2014 Pearson Education, Inc. 14 Packaged / Off-The-Shelf software Applications that are written by third-party vendors for the needs of many different users and organizations.

Copyright © 2014 Pearson Education, Inc. 15 Order-To-Cash process Processes associated with selling a product or service. Example: Create Customer Record Check Credit Create Order Allocate Stock Pick, Pack & Ship Prepare & Send Invoice Collect Payment

Copyright © 2014 Pearson Education, Inc. 16 Procure-To-Pay Process The processes associated with procuring goods from external vendors. Example: Negotiate Price & Terms Issue Purchase Order Receive Goods Receive Invoice Settle Payment

Copyright © 2014 Pearson Education, Inc. 17 Stand-Alone Application Systems that focus on the specific needs of individual departments and are typically not designed to communicate with other systems in the organization.

Copyright © 2014 Pearson Education, Inc. 18 Value System A process where information flows from one company’s value chain to another company’s value chain.