ISDS 4111 Exam 1 – Complete Study Guide – Q’s And A’s
• Cross-Functional Process o Spans several functional units, departments
or companies
• Functional Structure o Categorizes an organizations tasks and activities
into groups to improve efficiency and responsibility of work in the
organization
o Functional silo syndrome: a focus within divisionalized structure on
functional objective without regard to process objectives
• Functional goals vs. process goals • Process execution requires
communication and coordination among functions
• Enterprise System o Support end-to-end processes
o Provides increased profitability, increased productivity, and a competitive
edge
o Enterprise system is designed to • Break down the vertical and
horizontal silos
• Facilitate information sharing
• Automate processes
• Integrate all systems
• Business Process o A sequence of tasks or activities that produce desired
outcomes
o ERP systems automate business processes
o Core business processes • Material planning (plan)
• Inventory and warehouse management (store)
• Asset management/customer service (service)
• Human capital management (people)
• Program and project management (projects)
• Lifecycle data management (design)
• Procurement (buy)
• Production (make)
• Fulfillment (sell)
• Financial accounting (external)
, • Management accounting (internal)
• Objective of all of the core processes of SAP o Procurement (buy): the act
of obtaining or buying good and services
o Production (make): the processes and methods used to transform tangible
inputs (raw materials, semi-finished goods, subassemblies) and intangible
inputs (ideas, information, knowledge) into goods for services
o Fulfillment (sell): the process of taking an order and executing it by making
it ready for delivery to its intended customer
o Inventory and warehouse management: Supervise the flow of goods from
manufacturers to warehouses and from there to the point of sale
o Material Planning: Planning and determining requirements for incoming
materials that will be a part of the production
• Objective of the warehouse in all of the core processes of SAP o In
procurement
• Receive material → prepare for storage → store materials
o In production
• Request materials → locate materials → issue materials
• Receive materials → prepare for storage → store materials
o In fulfillment
• Locate materials → prepare shipment → ship to customer
• The objective that SAP plays for a company o To provide an end to end
enterprise system that can communicate across all departments (integration)
• The general goal of an information system o Support business activities
and enhance the workers
• What ERP vendors embed in their software o SAP, Oracle, and Microsoft
provide modules that support the major functional areas of business
o Embeds best business practices that implement the organizations policy and
procedure via business rules
• What the difference is between a vanilla and chocolate ERP implementation
o Vanilla: deciding to implement the ERP system as-is...disruptions will occur
with the functioning of the organization because employees will have to be re-
trained
• Cross-Functional Process o Spans several functional units, departments
or companies
• Functional Structure o Categorizes an organizations tasks and activities
into groups to improve efficiency and responsibility of work in the
organization
o Functional silo syndrome: a focus within divisionalized structure on
functional objective without regard to process objectives
• Functional goals vs. process goals • Process execution requires
communication and coordination among functions
• Enterprise System o Support end-to-end processes
o Provides increased profitability, increased productivity, and a competitive
edge
o Enterprise system is designed to • Break down the vertical and
horizontal silos
• Facilitate information sharing
• Automate processes
• Integrate all systems
• Business Process o A sequence of tasks or activities that produce desired
outcomes
o ERP systems automate business processes
o Core business processes • Material planning (plan)
• Inventory and warehouse management (store)
• Asset management/customer service (service)
• Human capital management (people)
• Program and project management (projects)
• Lifecycle data management (design)
• Procurement (buy)
• Production (make)
• Fulfillment (sell)
• Financial accounting (external)
, • Management accounting (internal)
• Objective of all of the core processes of SAP o Procurement (buy): the act
of obtaining or buying good and services
o Production (make): the processes and methods used to transform tangible
inputs (raw materials, semi-finished goods, subassemblies) and intangible
inputs (ideas, information, knowledge) into goods for services
o Fulfillment (sell): the process of taking an order and executing it by making
it ready for delivery to its intended customer
o Inventory and warehouse management: Supervise the flow of goods from
manufacturers to warehouses and from there to the point of sale
o Material Planning: Planning and determining requirements for incoming
materials that will be a part of the production
• Objective of the warehouse in all of the core processes of SAP o In
procurement
• Receive material → prepare for storage → store materials
o In production
• Request materials → locate materials → issue materials
• Receive materials → prepare for storage → store materials
o In fulfillment
• Locate materials → prepare shipment → ship to customer
• The objective that SAP plays for a company o To provide an end to end
enterprise system that can communicate across all departments (integration)
• The general goal of an information system o Support business activities
and enhance the workers
• What ERP vendors embed in their software o SAP, Oracle, and Microsoft
provide modules that support the major functional areas of business
o Embeds best business practices that implement the organizations policy and
procedure via business rules
• What the difference is between a vanilla and chocolate ERP implementation
o Vanilla: deciding to implement the ERP system as-is...disruptions will occur
with the functioning of the organization because employees will have to be re-
trained
