COLLABORATION EXERCISES AND CASESINNOVATION IN PRACTICECHAPTER 7 – PAGE 284: QUESTION#2

GROUP D *Alex M.

*Jessica H.

*Julia P.

*Nieves R.

*Susan C.

A-1) EXPLAIN HOW PROCESSES ARE INHERENT IN APPLICATION SOFTWARE

A-2)ARE PROCESSES INHERENT ONLY IN ERP SOFTWARE SUCH AS SAP OR ARE THEY INHERENT IN OTHER PRODUCT AS WELL. Inherent processes built into business process design software

require an organization to conform its activities to the program. That can save a company substantial design costs. Inherent processes can also cause disruptions to operations and employees. This figure provides an example of inherent processes in an ordering process.

There is process inherited in Customer Relationship Management

CRM however Enterprise Resource Planning ERP provide even more integration than CRM. ERP integrates

the primary value changing activities with human resources and accounting. ERP is an outgrowth of MRP II and the primary ERP user are

Manufacturing companies.

A-3) DOES MICROSOFT WORD FOR EXAMPLE HAVE INHERENT PROCESSES?

No, Microsoft word does not has inherent process like SAP. It is a universal text processor to create letter, memo etc.

A-4) What characteristic and classification of inherent process does comparison of sap and word suggested When an organization acquires a business application from Sap the processes for using the software are built-in, inherent process. In most case to use the software the organization must conform its activities to those processes. If the software is designed well the inherent processes will save the organization the substantial something staggering costs of design. From tracking customers, process order, manage inventory, pay employees, and provide general ledger, payable, receivable, and other necessary accounting function. Microsoft is software created to assist in the daily basis job performance such creating a memo for external or internal process. Microsoft Word can be adapt to SAP, so we will be able to transfer information from SAP into Word and create a letter.

B- Many early business process design projects failed

because they were tailor-made. They were custom-fit to a particular organization, and so just one company bore the cost of the design effort. When an organization acquires a business application from say, Oracle or SAP, the processes for using the software are built-in, Inherent Processes. If the software is desined well, the inherent processes will effectively integrate activities across departments, saving the organization the substantial, sometime staggering, costs of designing new process itself The primary benefit is not the software, but the inherent processes from using the software saving the company time, expense and agony of process design.

C-1) HOW DOES A VENDOR GAIN A COMPETITIVE ADVANTAGE WHEN PRODUCING A COMMODITY?

Enterprise Resource Planning Systems are becoming commodities. Commodities are something useful that can be turned into commercial or another advantage. This term pertains to ERP systems and processes, if there are more companies that are creating blueprints with the same features and formats then it isn’t a unique product and the companies have to get a competitive advantage to survive in the market.

C-2) HOW COULD ORACLE, FOR EXAMPLE, GAIN A COMPETITIVE ADVANTAGE OVER SAP?

For the company of Oracle is providing the same service of creating blueprints for business with the same features and functions lets them be at the same competitive level as SAP, but doesn’t give them a competitive advantage. A way that Oracle can get an advantage is by reducing the cost of the software and hardware as well as the training of the users. Oracle can also enhance the program by making it able to customize to the customer’s request and not just the standardized blueprint.

D) SUPPOSE THAT TWO COMPANIES USING THE SAME ERP (ENTERPRISE RESOURCE PLANNING) SYSTEM HAVE THE EXACT SAME BUSINESS PROCESSES.

1)Does it necessarily follow that neither company can gain acompetitive advantage over the other? Not necessarily, because it comes down to how each company uses the system to their gain. It comes down to training, and executing plans.2)Is there some way that one company can gain an advantage bybetter executing the identical process? How? Yes, one of the companies can gain advantage by the way it's procedures are executed and established, how they implement their system (meaning training, data conversion, new procedures, problem solving)

3)Is such a competitive advantage sustainable? Would you rather have a competitive advantage by having better processes or acompetitive advantage by having the same processes, butexecuting them better? I think it's not sustainable due to the fact that each company will eventually try to outmatch their competitors by creating

new ways, ideas and plans. I would say the same processes with better execution, because

it all comes down to how you execute the plans and system.

SUPPOSE THAT AN ERP SYSTEM MAINTAINS CUSTOMER ORDER DATA IN THE FOLLOWING TABLES:

CustomerCustomer OrderOrder PaymentPayment

CustNumCustNum Order NumberOrder Number OrderNumberOrderNumber

NameName OrderDateOrderDate PaymentDatePaymentDate

Industry CodeIndustry Code SalesPerson SalesPerson NameName

Payment Payment AmountAmount

Annual SalesAnnual Sales AmountAmount

CustNumCustNum

EXPLAIN THE RELATIONSHIPS THAT ARE DEFINED FOR THESE THREE TABLES

Table 1 and 2 the relationship is CustNum

Table 2 and 3 the relationship is OrderNumber

SUPPOSE THAT A COMPANY EXTRACTS THIS DATA FROM ITS ERP SYSTEM AND USES IT TO INFORM SALES ACTIVITIES. WHAT INFORMATION CAN BE OBTAINED FROM THIS DATA?

o Number of orders placed by a customero Annual purchases a customer has madeo How often a customer places orderso Payment history

HOW CAN THE INFORMATION OBTAINED FROM THIS DATA PROVIDE A COMPETITIVE ADVANTAGE?

o The data obtained provides a competitive advantage because it gives you a summary of what customers purchase and when the purchases are made and you can provide customers with automated ordering instead of having them call in orders.

o A company can provide a customer with payment arrangement if it’s a customer that has a good payment history.

o Provide customers with discounts, therefore they will come back for your business.

o Also since the information provides you with dates of orders, if you realize a customer has stopped placing orders you can follow up with them to keep them buying from products.

F-

Organizations that are adopting ERP must review those models and determine which ones are appropriate to them. Sometimes the current-practice models are incomplete, vague or innacurate. Also, Users must be trained on the processes, procedures and use of the ERP system's function and features. Additionally, the company needs to conduct a simulation test to identify problems.