ERP Satellite Systems Overview
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Questions and Answers

What does the term "Satellite System" refer to?

Satellite systems are Information Systems (IS) that are generally connected to the ERP system. If the ERP system is viewed as a "planet", then these connected ISs are the "satellites".

What are the primary functions of Operational ISs?

Operational ISs deal with the execution of day-to-day operations. They support business processes within a company and focus on recording transactions in a simple, often automated, manner, often involving "Cyber Physical Systems" (CPS) such as IoT devices.

Which of the following are examples of Operational ISs?

  • SRM (Supplier Relationship Management System)
  • TMS (Transportation Management System) (correct)
  • APS (Advanced Planning and Scheduling System)
  • CPM (Corporate Performance Management System)
  • WMS (Warehouse Management System) (correct)
  • TQM (Total Quality Management System)
  • PMS (Project Management System)
  • ESS (Executive Support System)
  • HRM (Human Resource Management System)
  • PLM (Product Lifecycle Management System)
  • CRM (Customer Relationship Management System)
  • MES (Manufacturing Execution System) (correct)

    • Explain the primary functions of Tactical ISs.

    <p>Tactical ISs focus on managing and supervising activities, including those related to Planning and Control. They deal with the use of transactions as information for decision-making and often incorporate a structured approach, sometimes described as &quot;bureaucratic&quot;.</p> Signup and view all the answers

    Which of the following are examples of Tactical ISs?

    <p>CRM (Customer Relationship Management System)</p> Signup and view all the answers

    What are the main characteristics of Strategic ISs?

    <p>Strategic ISs are designed to support company decisions and governance, dealing with &quot;what-if&quot; scenarios and choosing the best course of action. They are highly complex and necessitate highly skilled personnel. Strategic ISs are focused on long-term planning and decision-making that impacts the overall direction of the company.</p> Signup and view all the answers

    Which of the following are examples of Strategic ISs?

    <p>TQM (Total Quality Management System)</p> Signup and view all the answers

    Operational ISs are mainly focused on recording transactions and supporting immediate action.

    <p>True</p> Signup and view all the answers

    Tactical ISs prioritize supporting the planning and control of operations, often employing a structured approach.

    <p>True</p> Signup and view all the answers

    Strategic ISs are highly complicated systems that are typically used to support decision-making in a complex environment.

    <p>True</p> Signup and view all the answers

    What is the primary purpose of CPM (Corporate Performance Management)?

    <p>CPM is a system that supports company strategy by monitoring and managing the performance of the business, tracking both overall and departmental performance. It translates strategic goals into operational plans and provides insights into aggregated results.</p> Signup and view all the answers

    What are the three main elements comprising CPM?

    <p>Master Plan</p> Signup and view all the answers

    How are CPM systems changing with the advent of AI?

    <p>CPM systems are evolving into &quot;Executive Support Systems&quot; (ESS) enabled by AI. These systems utilize AI to extract knowledge from both internal and external company information, allowing for more comprehensive and data-driven decision-making.</p> Signup and view all the answers

    Which statement best describes the role of CPM in a company?

    <p>CPM is primarily focused on supporting strategic decision-making and managing overall company performance.</p> Signup and view all the answers

    CPM systems are often used to develop Master Plans and Detailed Plans for future operations.

    <p>True</p> Signup and view all the answers

    CPM systems typically include a Balanced Scorecard (BSC) for connecting targets across different areas of the company.

    <p>True</p> Signup and view all the answers

    CPM systems often use a Performance Management System (PMS) to collect Key Performance Indicators (KPIs) related to different business objectives.

    <p>True</p> Signup and view all the answers

    CPM systems are becoming increasingly reliant on AI to analyze data, identify trends, and provide insights for decision-making.

    <p>True</p> Signup and view all the answers

    Explain the difference between strategic CPMs and financial CPMs.

    <p>Strategic CPMs focus on the broader strategies and performance of the company, while financial CPMs center on financial performance and budgeting. Strategic CPMs include a greater emphasis on operational plans, while financial CPMs prioritize financial reporting and analysis.</p> Signup and view all the answers

    What role does a Transportation Management System (TMS) primarily play in an organization?

    <p>It facilitates planning, scheduling, and execution of distribution activities.</p> Signup and view all the answers

    In the context of a Manufacturing Execution System (MES), which activity is NOT a typical function?

    <p>Implementing financial forecasting strategies.</p> Signup and view all the answers

    What is an essential feature of a Transportation Management System (TMS)?

    <p>Tracking and booking shipments.</p> Signup and view all the answers

    Which of the following activities is mainly handled by a Manufacturing Execution System (MES)?

    <p>Collecting data on labor productivity.</p> Signup and view all the answers

    Which of the following best describes a function of TMS in relation to distribution?

    <p>Scheduling routes and managing loads effectively.</p> Signup and view all the answers

    What is a primary function of a Warehouse Management System (WMS)?

    <p>To support various logistical activities within a warehouse.</p> Signup and view all the answers

    Which of the following is NOT a typical activity associated with a Warehouse Management System?

    <p>Facilitating customer feedback processes.</p> Signup and view all the answers

    What distinguishes a Satellite System in relation to an ERP System?

    <p>It integrates with the ERP to form an Extended ERP System.</p> Signup and view all the answers

    How does a Warehouse Management System ensure efficiency in warehouse operations?

    <p>By suggesting real-time actions and providing timely alerts.</p> Signup and view all the answers

    What is a key feature of an Operational IS?

    <p>It is known for its ability to process transactions in real time.</p> Signup and view all the answers

    In the context of information systems, how can an IS become a Module of another IS?

    <p>By being directly incorporated into another IS.</p> Signup and view all the answers

    What element of Warehouse Management Systems makes them user-friendly?

    <p>Being as simple as possible and sometimes 'fool proof'.</p> Signup and view all the answers

    Which process is involved in the outgoing items activities of a Warehouse Management System?

    <p>Packaging and shipping of items to customers.</p> Signup and view all the answers

    Which level of company operations do Satellite Systems primarily support?

    <p>Operational, tactical, and strategic levels collectively.</p> Signup and view all the answers

    Which of the following statements best describes the role of an ERP System in relation to Satellite Systems?

    <p>ERP Systems serve as a central hub that integrates various Satellite Systems.</p> Signup and view all the answers

    Study Notes

    ERP Satellite Systems

    • ERP Systems are the most comprehensive Information Systems (IS)
    • Business Intelligence (BI) Systems are examples of ISs that connect to an ERP System
    • Other ISs are like satellites around the central ERP System
    • BI Systems can be integrated into an ERP system or exist independently
    • Office Automation is a common example of an IS that can be both connected to and included within an ERP System

    Learning Objectives

    • Discussing the meaning of "Satellite Systems"
    • Identifying different types of Operational ISs
    • Recognizing Tactical ISs and their functions
    • Understanding the characteristics of Strategic ISs
    • Exploring the functionalities of Corporate Performance Management (CPM)

    Exam Question - text

    • Artificial Intelligence (AI) is evolving Corporate Performance Management (CPM) systems into Executive Support Systems (ESS)
    • ESS systems extract information from data
    • ESS systems can also gain insights from knowledge
    • ESS systems can extract knowledge directly from data
    • ESS systems can help convert information into knowledge

    Q1. What does «Satellite System» mean?

    • ERP Systems are the central, most complete ISs
    • Other ISs, such as Business Intelligence (BI) Systems, can be connected with or integrated into an ERP to create an Extended ERP System.
    • These other ISs, functioning like satellites orbiting a planet, support the ERP System's core functions.

    Q2. What are the Operational ISs?

    • Operational ISs focus on company operations.
    • They support business processes at an operational level.
    • They are also known as Transaction Processing Systems (TPS)
    • They process transactions (events recorded as data), ensuring execution in real-time.
    • This real-time processing permits prompt actions and alerts if tasks aren't completed as expected.
    • This system aims for simplicity (often "foolproof").
    • Examples include Warehouse Management Systems (WMS) and Transportation Management Systems (TMS).

    Q2. What are the Operational ISs? (WMS example)

    • A WMS supports warehouse processes (receiving, stocking, and shipping)
    • Typical activities include incoming item receipt, quality control, and warehouse operations like loading, counting, and unloading.
    • Outgoing item packaging, shipping, and return management are also part of typical WMS functionality.

    Q2. What are the Operational ISs? (TMS Example)

    • A TMS handles distribution processes like shipments and warehouse transfers.
    • Typical functions include planning routes and schedules, coordinating with carriers (private fleet or selected partners), and tracking loads and shipments.
    • Post-shipment analysis and tracking are included in core TMS operations.

    Q3. And the Tactical ones?

    • Tactical Information Systems (tactical ISs) supervise activities at a tactical level.
    • They are also called Management Information Systems (MISs).
    • Management activities, using transactions as information, support tactical planning and control.
    • Systems provide near real-time monitoring, generating actionable plans and warnings if tasks are not completed on schedule.
    • CRM (Customer Relationship Management) and SRM (Supplier Relationship Management) systems are common examples.

    Q3. And the Tactical ones? (CRM Example)

    • A CRM supports a company's customer interactions.
    • Key functions such as information dissemination, relationship building, opportunity management, and sales order tracking are carried out by this system.
    • Customer feedback and sales follow-up analysis are crucial parts of CRM functionality.

    Q3. And the Tactical ones? (SRM Example)

    • SRM focuses on supplier interactions for companies.
    • Activities include supplier identification, managing invitations to quote, overseeing supplier onboarding, evaluating suppliers, tracking purchase orders, and planning or designing products.
    • SRM's role includes analyzing and evaluating reports after completion of supply tasks.

    Q3. And the Tactical ones? (HRM Example)

    • HRM (Human Resources Management) supports processes concerning employee lifecycle (hiring, training, performance management, separation).
    • HRM covers staffing, personnel management, and performance appraisal.
    • This system also handles employee orientation, disciplinary actions, compliance with employment regulations, and overall management of the employee relationship.

    Q3. And the Tactical ones? (PLM Example)

    • Product Lifecycle Management (PLM) systems track the entire product lifecycle (introduction, growth, maturity, and decline).
    • Tasks include defining customer requirements, designing and planning products, overseeing realisations, and improving and managing workflows and organizational change.

    Q4. And the Strategic ones?

    • Strategic ISs are centered on decision-making processes within a company.
    • These systems are often called Decision Support Systems due to their role in supporting strategic decisions.
    • The systems allow the creation of alternative scenarios and selections from those options in a structured, timely manner.
    • Strategic ISs often involve complex calculations, models, and skills from highly-trained personnel.
    • Examples include Advanced Planning and Scheduling (APS) and Total Quality Management (TQM) systems.

    Q4. And the Strategic ones? (APS Example)

    • APS (Advanced Planning and Scheduling) systems support business planning, forecasting, and scheduling production activities.
    • APS activities include forecasting demands, defining customer commitments, planning production processes, and scheduling resource allocation.

    Q4. And the Strategic ones? (TQM Example)

    • TQM (Total Quality Management) focuses on controlling processes to ensure quality across all company operations.
    • Activities of this type of system involve assessing quality processes, standardizing procedures, monitoring quality compliance, detecting defects, and making improvements from quality testing.

    Q4. And the Strategic ones? (BPMS Examples)

    • Business Process Management Systems (BPMS) software enhances TQM systems to execute and assess processes.

    Q5. And what about CPM?

    • Corporate Performance Management (CPM) is a comprehensive approach used within companies to track and manage their performance metrics.
    • It translates strategic information into operational plans.
    • This system provides aggregated results to drive improvement efforts.
    • It comprises performance monitoring and management methodologies, measures, processes, and systems.
    • CPM's ability to connect performance targets with company objectives, resource allocation, internal methods, and business outcomes is critical to their success

    Q5. And what about CPM? (Elements of CPM)

    • Performance monitoring is one of the key aspects of CPM because it uses planned objectives and detailed processes (like company-wide exercises) to generate company results.
    • Defining targets for each objective is an important part of CPM, as is tracking progress and refining objectives.
    • CPM continually monitors results and provides essential insights for strategic decisions and goal planning.

    Q5. And what about CPM?(Business Processes)

    • Strategic Management Activities (such as Master Plans and Balanced Scorecards) are supported by CPM.
    • Tactical control activities such as Budgeting and detailed Plans, are overseen by CPM.

    Exam Question - solution

    • Artificial intelligence (AI) is changing Corporate Performance Management (CPM systems as it converts these systems to executive support systems (ESS)
    • ESS systems leverage data and knowledge
    • ESS systems extrapolate knowledge from data and present information in a structured manner

    References

    • Processes, Systems, and Information, by Earl McKinney Jr. and David Kroenke
    • Modern ERP, select, implement & use today's advanced business systems, by Marianne Bradford

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    Lesson 10 ERP Satellite Systems from Operations to Governance PDF

    Description

    Explore the intricate world of ERP Systems and how they interact with various Information Systems (IS). This quiz covers the definitions, characteristics, and functionalities of operational, tactical, and strategic ISs, while highlighting the evolving role of Corporate Performance Management (CPM). Join us to test your understanding of these critical business technologies.

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