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What is the main purpose of systems integration in organizations?
What is the main purpose of systems integration in organizations?
Functional silos refer to operational units that are well-connected and share information freely.
Functional silos refer to operational units that are well-connected and share information freely.
False
What does ERP stand for and what is its role in systems integration?
What does ERP stand for and what is its role in systems integration?
Enterprise Resource Planning; ERP systems allow organizations to integrate different systems into one organization-wide application.
The POSDCORB model categorizes organizational functions that include Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and ______.
The POSDCORB model categorizes organizational functions that include Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and ______.
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Match the terms to their definitions:
Match the terms to their definitions:
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Which of the following best describes 'silos' in an organizational context?
Which of the following best describes 'silos' in an organizational context?
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Systems integration is unnecessary for effective organizational growth.
Systems integration is unnecessary for effective organizational growth.
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What is the primary focus of ERP systems in organizations?
What is the primary focus of ERP systems in organizations?
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ERP systems primarily aim to enhance individual departmental goals over organizational goals.
ERP systems primarily aim to enhance individual departmental goals over organizational goals.
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What is the primary focus of lower-level management?
What is the primary focus of lower-level management?
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Name one challenge organizations face during system integration.
Name one challenge organizations face during system integration.
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Business process re-engineering (BPR) aims to enhance functional silos within organizations.
Business process re-engineering (BPR) aims to enhance functional silos within organizations.
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ERP systems improve operational efficiency with better business processes that focus on __________ goals.
ERP systems improve operational efficiency with better business processes that focus on __________ goals.
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What does a silo information system create within an organization?
What does a silo information system create within an organization?
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Match the following aspects of system integration with their descriptions:
Match the following aspects of system integration with their descriptions:
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As organizations grow, they typically break functions into smaller units to manage __________ and specialize.
As organizations grow, they typically break functions into smaller units to manage __________ and specialize.
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Match the following organizational management levels with their primary focus:
Match the following organizational management levels with their primary focus:
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Which of the following describes a key benefit of cross-functional organizational structures?
Which of the following describes a key benefit of cross-functional organizational structures?
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Web-based systems today utilize a centralized architecture.
Web-based systems today utilize a centralized architecture.
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What problem arises from using a silo information system?
What problem arises from using a silo information system?
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Cross-functional business processes involve people and resources from various __________ departments.
Cross-functional business processes involve people and resources from various __________ departments.
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What is the primary function of the Web server in the described configuration?
What is the primary function of the Web server in the described configuration?
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Each functional area in an organization has identical information needs and report requirements.
Each functional area in an organization has identical information needs and report requirements.
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What is one major business function that IS supports?
What is one major business function that IS supports?
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Business process reengineering involves changing the mindset of the employees and encouraging them to perform tasks in a ______ way.
Business process reengineering involves changing the mindset of the employees and encouraging them to perform tasks in a ______ way.
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Match the following steps in integrating systems with their descriptions:
Match the following steps in integrating systems with their descriptions:
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Which of the following is NOT a step in integrating systems?
Which of the following is NOT a step in integrating systems?
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Physical integration requires logical connection of disparate systems.
Physical integration requires logical connection of disparate systems.
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What is the need for categorizing resources in system integration?
What is the need for categorizing resources in system integration?
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Different levels of management within a functional area require different levels of ______ and details of information.
Different levels of management within a functional area require different levels of ______ and details of information.
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What does management need to change for successful integration of systems?
What does management need to change for successful integration of systems?
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What is the primary role of middleware tools in system integration?
What is the primary role of middleware tools in system integration?
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A centralized IT support system is not necessary if the organization has multiple platforms.
A centralized IT support system is not necessary if the organization has multiple platforms.
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What is the purpose of a single sign-on policy?
What is the purpose of a single sign-on policy?
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A good __________ and recovery system is essential during a system failure.
A good __________ and recovery system is essential during a system failure.
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Match the following benefits of systems integration with their corresponding limitations:
Match the following benefits of systems integration with their corresponding limitations:
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Which of the following is a benefit of systems integration?
Which of the following is a benefit of systems integration?
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ERP systems are designed to support only one business function within an organization.
ERP systems are designed to support only one business function within an organization.
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What is a limitation of systems integration?
What is a limitation of systems integration?
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Organizations should develop standards and policy on the acquisition of new __________ and software.
Organizations should develop standards and policy on the acquisition of new __________ and software.
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What best describes the nature of ERP systems?
What best describes the nature of ERP systems?
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Study Notes
Book Information
- Title: Enterprise Systems for Management
- Edition: Second
- Authors: Luvai F. Motiwalla and Jeff Thompson
- Publisher: Prentice Hall
- Copyright: 2012
Chapter 2: Systems Integration
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Learning Objectives:
- Understand the influence of organizational structure on information systems.
- Identify different functional silos within organizations.
- Learn about the evolution of information systems technology (including generations and architectures).
- Comprehend systems integration and its importance for organizations.
- Understand the role of ERP systems in systems integration.
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Systems Integration:
- Seamless communication and information (data) sharing between heterogeneous information systems (IS).
- Critical for organizational growth; management must prioritize it.
- ERP systems are a key type of enterprise information system, enabling organizations to integrate various systems into one organization-wide application with an integrated database management system.
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Functional Silos:
- Compartmentalized operating units isolated from their environments.
- POSDCORB (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting) categorization, from the late 1930s, led to formal organizational functions (control, management, supervision, and administration).
- Examples like Accounting and Human Resources departments represent breaking tasks into manageable smaller parts assigned to groups.
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Vertical Silos:
- Hierarchical roles within organizations.
- Top-level management (CEOs, Presidents) focus on long-term strategy, while middle management handles tactical issues and policy execution.
- Lower-level management concentrates on daily operations.
- Organizational complexity often necessitates breaking down functions into smaller units, increasing specialization and productivity.
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Business Process and Silos:
- The limitations of silos prompted business process re-engineering (BPR).
- Cross-functional processes combine people and resources from different departments, working collaboratively and sharing information at all organizational levels.
- Cross-functional organizational structures break down silos, enabling information flow between departments.
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IS Architectures:
- Rapid advancements in computer and networking technologies influence new information system models.
- Web-based systems use distributed architectures, enabling the sharing of applications and data resources between client and server computers.
- In this setup, personal computers connect to a network via a Web server, which acts as a gateway to applications and databases (potentially mainframes or similar).
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IS Functionalization:
- IS support various management levels and business functions (manufacturing, marketing, accounting, finance, HR).
- Each functional area has unique information needs and reporting requirements, varying across management levels within that functional area.
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Systems Integration (Logical):
- Development of systems that allow all stakeholders to share data according to their needs and authorization. Adjustments in organizational structures, processes, and employee roles are necessary.
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Systems Integration (Physical):
- Establishing seamless connectivity between different, often heterogeneous, systems.
- Business process re-engineering, which changes the organizational mindset to encourage new ways of working.
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Steps in Integrating Systems:
- Resource categorization, compliance and standards, support of legacy systems, middleware tools, authentication and authorization policies, centralized IT support, back up recovery and security, and hardware and software standardization.
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Benefits and Limitations of Systems Integration:
- Benefits: Increased revenue, leveling the competitive environment, enhanced information visibility, increased standardization.
- Limitations: High initial setup costs, power or interdepartmental conflicts (due to information sharing), long-term ROI, limitations on creativity and independence
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ERP and Systems Integration:
- ERP systems are integrated multi-module software packages designed for supporting various business functions across an organization.
- ERP systems usually involve commercial packages simplifying the gathering and integration of organization-related information.
- ERP systems enable organizations to standardize and improve business processes, aligning with industry best practices.
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ERP's Role in Logical Integration:
- Businesses should focus on processes rather than isolated functions.
- ERP systems come with predefined functions for various business tasks in an organization.
- ERP systems often use predefined, standardized procedures for tasks (such as order entry) and their flow between various departments.
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ERP's Role in Physical Integration:
- ERP system implementation often involves updating or replacing existing hardware and software.
- Integration is necessary at all levels (data, client, and application).
- Implementation usually improves efficiency by focusing on organizational goals instead of departmental goals.
- Electronic data interchange (EDI) and business-to-business (B2B) commerce become possible with an integrated system.
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Implications for Management:
- Silos do not allow for real-time information sharing, especially in the long term. This harms organizations.
- Systems integration is critical for decision-making from lower levels in the organization, facilitating better communication with clients, and enabling real-time data across all departments.
- Replacing hardware and software has technical and human elements (such as IT support and retraining of workers and department heads).
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Ethical Implications of Integration:
- Systems integration can create new ethical issues, such as the possibility of employees misusing information for personal gain or unauthorized access.
- Policies regarding ethical usage of info, proper security measures, and staff training are crucial for smooth operations.
- Systems integration can create new ethical issues, such as the possibility of employees misusing information for personal gain or unauthorized access.
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Summary:
- Functional silos group organizational tasks for efficiency and responsibility.
- Silos can be beneficial for productivity but often lead to departmental goals instead of overall organizational goals.
- Information systems have evolved from centralized mainframe architecture to client-server architectures.
- Successful system integration requires addressing both the human (logical processes) and technical (physical systems) components.
- ERP systems simplify the process but can be costly and require significant organizational change.
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Review Questions:
- Covered in the provided text (though some may require further research for full answer).
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Description
This quiz assesses your understanding of systems integration and the role of ERP (Enterprise Resource Planning) in organizations. It covers key concepts such as functional silos, the POSDCORB model, and challenges faced during system integration. Test your knowledge and see how well you grasp the importance of these systems in organizational growth.
