Midterm Exam 1: Chapters 1-5 AIS

Supply Chain Management (SCM) Software:

Enables the steps in the supply chain including demand planning, inventory acquisition, manufacturing, distributing and selling.

Electronic Storefronts

The creation of Internet-located resources for displaying goods and services for sale and for conducting related sales events.

Communications Network

The trading partners must have a method of communicating the electronic messages to each other. Organizations may use either EDI service bureaus or the Internet

Cloud Computing

The use of the Internet to provide scalable services- such as software, resources, hardware, and data storage- to users. Ex: Gmail

(T/F) A character is a basic unit of data such as a letter, number, or special character.

True

(T/F) Business process management (BPM) provides a comprehensive method for integrating manual and automated internal processes, applications, and systems, as well as integration to external partners and services.

True

(T/F) Enterprise application integration (EAI) links together two or more systems and allows them to work together.

True

(T/F) Enterprise systems potentially integrate the business process functionality and information from all of an organization's functional areas.

True

(T/F) Integrated information systems provide additional value by improving consistency, completeness, and accuracy.

True

(T/F) Microsoft Dynamics and Sage Group focus on small and mid market sized companies.

True

(T/F) SAP has a primary focus on large Fortune 500 type companies.

True

(T/F) Supply chain management (SCM) software helps plan and execute steps such as demand planning, acquiring inventory, manufacturing, distributing, and selling the product.

True

(T/F) The data captured as business events occur should be sufficient for someone who was not a party to the event to understand and reconstruct what happened.

True

(T/F) One of the primary goals of implementing an ERP system is to standardize systems across multiple locations and multiple divisions.

True

Online Transaction Entry (OLTE) System

Use of data entry devices to enter business event data directly into the information system at time and place that business event occurs. Merges the traditional subprocesses of business event occurrences and records business event data into a single operation. Considered online because the data entry device is connected to the computer. Data entry is completed using bar code readers, scanners, or radio-frequency identification (RFID) readers.

Internet EDI (IEDI)

Use of secure, structured messages over the internet to execute business transactions.

Record

(A row in a table) A collection of related data fields (attributes) that belongs to a particular entity or event.

Field

(Single cell in a table) A collection of related characters that comprise an attribute.

Subprocesses of Batch Processing

1. Business Event Occurs Information is recorded on a source document. 2. Record Business Event Data A batch of source documents is entered in a computerized format using an OFFLINE device. 3. Update Master Data The computer processes the entered information and updates the master data. 4. Generate Outputs After the update, the periodic outputs (e.r., reports) are generated for management.

OLRT Systems require three basic suprocessed to be completed:

1. Business Event Occurs Record business event data 2. Update master data 3. Generate reports (and support queries) (Processing methods requires data communications pathways among PCs, Terminals, or other systems)

Enforcement of data standards and business rules means:

1. Business events are handled consistently. 2. All relevant data is collected- completeness. 3. Collected data is verifiable and neutral. 4. All data is available in a timely manner. The system facilitates the sharing of services for efficiency and consistency.

Methods of E-Business include:

1. Electronic Mail (E-mail) 2. Electronic Document Management (EDM) 3. Electronic Data Interchange (EDI) 3. Internet Commerce

Activities in the manual account process: (3 in Total)

1. Journalize The business event 2. Post The business event from the journal to a subsidiary ledger 3. Post The Total from the Journal to the General Ledger 4. Summarze The business events by preparing a trial balance

Modules that are part of the SAP Business Suite include:

1. Sales and Distribution (SD) 2. Materials Management (MM) 3. Financing Accounting (FI) 4. Controlling (CO) 5. Human Capital Management (HCM)

Most organizations group their major business events into two processes:

1. The order to-cash (or revenue) process 2. The purchase-to-pay (or expenditure) process

Third-party add-on modules: Sales Force Automation (SFA) Software:

Automates sales tasks such as order processing and tracking.

Character

A basic unit of data

Value Chain

A chain of activities performed by an organization that transform inputs into outputs valued by the customer. An organization creates a competitive advantage to creating more value for customers than its competitors. Organizations create value by performing activities at lower cost or enhancing differentiation of products or services.

Table (or file)

A collection of related records (sometimes called entity/ event instances)

Web Services

A software application that supports direct interactions with software objects over an intranet or the Internet.

A man-made system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization. A. Operations Process B. Enterprise Systems C. Management Information System D. Transaction Processing System

A. Operations Process

A quality indicating if information is capable of making a difference in a decision-making situation by reducing uncertainty or increasing knowledge for that particular decision. A. Relevance B. Reliability C. Effectiveness D. Completeness

A. Relevance

Relates to the provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities. A. Reliability B. Relevance C. Comparability D. Availability

A. Reliability

An information quality concerning the inclusion of actual authorized events and actual objects. A. Validly B. Verifiability C. Neutrality D. Consistence

A. Validity

Materials Management (MM)

Acquisition of goods from vendors and management of the goods while they are in stock: 1. Preparing and recording a purchase order 2. Recording the vendor's invoice Interacts with: Sales and Distribution Module (SD), Financial Accounting Module (FI), and Controlling Module (CO).

Third-party add-on modules: Customer Self-Service (CSS) software:

Allows customers to complete tasks without the help of an organization's employees.

Electronic Business (E-Business or E-Commerce)

Application of electronic networks (including the Internet) to exchange information and link business processes among organizations and individuals.

Translation Software

Application's electronic business document must be translated to the structured EDI format that will be recognized by the receiving computer.

A specialized subsystem of the IS that collects, processes, and reports information related to the financial aspects if business events. A. Management Information Systems (MIS) B. Accounting Information Systems (AIS) C. Enterprise Systems D. Database Systems

B. Accounting Information Systems

Concerns the provision of information through the optimal (most productive and economical) use of resources applied to achieve a set of goals. A measure of the productivity of the resources. A. Effectiveness B. Efficiency C. Reliability D. Validity

B. Efficiency

Third-party add-on modules: Customer Relationship Management (CRM) Software

Builds and maintains customer-related database

Enterprise Application Integration (EAI)

Combines processes, software, standards, and hardware to link two or more systems together; allowing them to act as one

Those for which none of the decision phases(intelligence, design, or choice) are routing or repetitive are A. Strutted Decisions B. Strategic Decisions C. Unstructured Decisions D. Management Decisions

C. Instructed Decisions

A part of s system; these parts are interrelated or integrated as a single system. A. Information System B. Supersystem C. Subsystem D. Natural System

C. Subsystem

Information available to a decision maker before it loses its capacity to influence a decision. A. Completeness B. Significance C. Timeliness D. Predictive Value

C. Timeliness

Electronic Document Management (EDM)

Capture, storage, management, and control of document images. Applications fall into two categories: 1. Document storage and retrieval 2. Business event data processing

Enterprise systems achieve quality of information goals by:

Collecting data about business events. Making that data available for use by interested and authorized parties.

Best-of-breed Approach

Combines modules from various vendors to create an information system that better meets an organization's needs than a standard ERP system.

Internet Commerce

Computer-to-Computer exchange of business event data via Internet communication that allows the initiation and consummation of business events.

Electronic Data Interchange (EDI)

Computer-to-computer exchange of business data in structured formats that allow direct processing of those electronic documents by the receiving computer system.

Network Providers (Internet Commerce)

Connection to Internet through direct connection or network provider.

Client/Server Relationship

Customer connects to vendor in an extended form of client/server application.

The correspondence or agreement between the information and the actual events between the information and the actual events or objects that the information represents. A. Relevance B. Completeness C. Objectivity D. Accuracy

D. Accuracy

Four W's

Data collected and stored should relate to: Who: Relates to individuals and organizations that are involved in the event (sometimes called agents) What: RElates to all resources exchanged due to the event Where: Relates to the locations at which (1) the event takes place, (2) exchanged resources reside before and after the event, and (3) the agents are during the event When: Relates to the time periods involved in completion of the event including future exchanges of resources

(T/F) An organization creates a competitive advantage by creating less value for its customers than does its competition.

False

(T/F) Because of the enormous implementation costs, only very large organizations can afford ERP systems.

False

(T/F) Customer relationship management (CRM) software aggregates, manages, and retains data across the entire organization for the identification, acquisition, and retention of vendors to maximize the benefits of those relationships.

False

(T/F) ERP systems have proved to be quite easy to install and in short periods of time.

False

(T/F) Enterprise Ware might be used to stitch together a number of legacy systems, an enterprise system, best-of-breed applications, and Web-based applications.

False

(T/F) In a disaggregated information system, the customer will be notified immediately whether the item is on the shelf and not committed to another customer.

False

(T/F) Supporting activities of the value chain include activities directly involved with marketing, producing, selling, and delivering the product or service to the customer.

False

(T/F) The dominant player in the large system ERP arena is Microsoft.

False

(T/F) The value chain is a chain of activities performed by the organization to transform outputs into inputs valued by the customer.

False

(T/F) When choosing modules for an organization's ERP system, it is generally best to select them all from a single vendor.

False

(T/F) With a best-of-breed approach an organization can minimize the number of different software modules employed to implement an enterprise system.

False

Oline Real-Time (OLRT) Systems

Gathers and record business event data at time of occurrence. Updates master data instantaneously. Provides results in real time. Also known as immediate mode in which little or no delay occurs between any two data processing steps.

Controlling and Profitability Analysis (CO/PA)

Handles internal accounting, including: 1. Cost Center Accounting 2. Profitability analysis for sales, activity-based accounting 3. Budgeting

ERP Systems

Have received an exponential boost in importance for businesses in the era of Big Data and business analytics.

Data should:

Help all uses (relevance, understandability) Make decisions (decision usefulness) Analyze pst events to make predictions about future events (predictive/feedback value)

Big Data

High-volume, high-velocity and/or high variety information assets that demand cost-effective, innovative forms of information processing that enabled enhanced insight, decision making, and process automation.

Data Maintenance

Includes activities related to adding, deleting, or replacing standing data

Business Event

Includes any change in the state of an enterprise, such as purchase of goods and services. Ex: Buying inventories, selling product, hiring and training employees.

Information Processing

Includes data processing functions related to economic events

The two types of updates that can be made: (Master Data)

Information processing and Data maintenance

Enterprise Systems (Enterprise-wide Information systems and enterprise information systems)

Integrate and automate business process functionality and information from all of an organization's functional areas.

Assurance Providers

Internet assurance services provide limited assurance that Website is reliable and secure.

Human Capital Management (HCM)

Managed in SAP. Module included functions related to: 1. Recruitment 2. Management and administration of personnel 3. Payroll processing 4. Personnel training 5. Travel Maintains data related to benefits. training, and work shifts.

Product Lifecycle Management (PLM) Software:

Manages product data from design through manufacturing and ending in the disposal of a product

Supplier Relationship Management (SRM) software:

Manages the interactions with organizations that supply the goods and services to an enterprise; includes procurement and contract management.

Electronic Mail (E-mail)

Non-standardized messages between individuals linked via a communications network.

Three major steps in the Sales and Distribution (SD) process:

Order entry, shipment, and billing. Connections to: Materials Management Module (MM), Financial Accounting Module (FI), and Controlling Module (CO).

Application Software

Originating application software prepares an electronic business document (PO). Destination application processes the business data.

Financial Accounting

Plays a central role in the SAP system. Incorporates data from other modules into general ledger accounts and external financial statements. Includes accounts receivable and accounts payable functions to record and manage that data directly and to complete evens begun in the SD and MM modules.

Immediate Mode

Processing mode in which little or no delay occurs between any two data processing steps

Periodic Mode

Processing mode with delay between the various data processing steps. Heavily dependent on the use of batch processing. Example: Payroll

Network Providers

Provide a link to the Internet by making their directly connected networks available for access by fee-paying customers.

Internet Auction Markets

Provide an Internet base for companies to put products up for bid or for buyers to put proposed purchases up for bid.

Application Programming Interface (API)

Provided by the application developer

Value-Added Network (VAN) Service

Rather than connecting to each trading partner, an organization can connect to a value-added network (VAN) service that acts as an EDI "post office"

Service-Oriented Architecture (SOA)

Refers to well-defined, independent functions (or applications) that can be distributed over a network via Web Services.

Standing Data

Relatively permanent portions of master data. Part of data maintenance.

Master Data

Repositories of relatively permanent data maintained over an extended period of time

An enterprise system's central database:

Retains one version of data elements. Uses data to verify the accuracy of new data elements. Permits only authorized changes to the database. Improves reliability, validity, an accuracy of the database.

Internet Assurance

Service provided for a fee to vendors to provide limited assurance to users of the vendor's Website that the site is in fact reliable and event data security is reasonable. Ex: WebTrust

Middleware

Software for connecting two or more software applications or modules

Enterprise Resource Planning (ERP) Systems

Software packages that can be used for the core systems necessary to support enterprise systems.

Business Analytics

Solutions used to build analysis models and simulations to create scenarios, understand realities and predict future states

Business Process Management (BPM)

Takes into account modeling, automating, managing, and optimizing business processes, including: 1. A design environment for modeling and documenting business processes targeted at improvements 2. Conversion of manual processes to automated processes 3. Implementation of data entry forms that prevent error 4. Engine to facilitate change 5. Monitoring to enable process improvement and optimization.

Batch Processing

The aggregation of several business events over some period of time with the subsequent processing of these data as a group by the information system

Internet Connection

The network diagram of a cloud, displayed at circle 3, pictorially represents how the Internet operates.