MIS 320 Refresher: Enterprise Systems and Business Processes PDF

**MIS 320 Refresher** **Enterprise Systems and Business Processes** Most companies are organized into functional departments, grouping related activities and assets under specialized management controls. However, this structure creates communication difficulties and delays. Business processes, whi...

**MIS 320 Refresher** **Enterprise Systems and Business Processes** Most companies are organized into functional departments, grouping related activities and assets under specialized management controls. However, this structure creates communication difficulties and delays. Business processes, which cut across these silos, consist of tasks that produce desired outcomes and are triggered by events such as receiving a customer order or recognizing the need to increase inventory. Enterprise systems (ES) support end-to-end processes by integrating data across functions, providing consistent information for decision-making. The most complex ES are **Enterprise Resource Planning (ERP)** systems, which focus on intra-company processes and integrate functional and cross-functional business processes. **SAP** is the world's most popular ERP system. **Types of Data in an ERP System** 1. **Organizational Data** -- Represents an enterprise's structure (e.g., client, company code, plant). A client is the highest organizational level. 2. **Master Data** -- Represents entities involved in various processes (e.g., customers, vendors, materials). 3. **Transaction Data** -- Reflects the consequences of executed process steps (e.g., dates, quantities, prices, payment terms). **Key Business Processes** Organizations use multiple processes to achieve objectives, including: **1. Accounting Processes** - **Financial Accounting (FI)** -- Records financial impacts of business processes and generates financial statements. - **Management Accounting (CO)** -- Internally focused, providing data for process management. - **Key Data Elements:** Organizational (client, company code, business area), Master Data (chart of accounts, general ledger, accounts receivable/payable, assets). - **Key Processes:** General ledger accounting, accounts receivable/payable, asset accounting, bank ledger accounting. **2. Procurement Process** - **Steps:** Requirements determination, supplier selection, order processing, goods receipt, invoice verification, payment processing. - **Key Data Elements:** Organizational (plant, storage locations, purchasing organization, purchasing group), Master Data (material master, vendor master, purchasing info records, conditions). - **Purchasing Info Record** -- Links material and vendor data for pricing and contract management. **3. Fulfillment Process** - **Steps:** Customer inquiry, quotation preparation, sales order processing, shipping, billing, payment processing. - **Key Data Elements:** Organizational (sales area, shipping point, credit control area), Master Data (customer master, material master, pricing conditions). - **Sales Area** -- Combination of sales organization, distribution channel, and division. **4. Production Process** - **Steps:** Request production, authorize production, release production order, raw materials issue, production, production confirmation, finished goods receipt, production order completion. - **Production Strategies:** - **Make-to-Stock:** Production occurs before demand. - **Make-to-Order:** Production occurs after receiving a sales order. - **Key Data Elements:** Master Data (bill of materials, work centers, product routings). - **Bill of Materials (BOM):** Identifies raw materials and semifinished goods needed for production. **5. Inventory and Warehouse Management (IWM)** - **Inventory Management (IM):** Manages movement of goods in/out of plants. - **Goods Movements:** Receipt, issue, stock transfer, transfer posting. - **Warehouse Management (WM):** Manages materials within and between plants. - **Storage Structure:** Warehouses → Storage Types → Storage Sections → Storage Bins. - **Key Steps:** Transfer requirement (initiates movement), transfer order (executes movement), physical transfer, transfer confirmation. **6. Material Planning Process** - **Objective:** Balance supply and demand for materials. - **Key Questions:** 1. What materials are required? 2. How many are required? 3. When are they required? - **Process Steps:** 1. **Sales and Operations Planning (SOP):** Forecasts demand, generates production plans. 2. **Demand Management:** Adjusts planned independent requirements (PIRs) based on customer orders and planning strategies. 3. **Materials Requirement Planning (MRP):** Calculates net material requirements, triggers procurement/production. - **Key Data Elements:** Master Data (BOM, product routings, material master, product groups). **Conclusion** Enterprise systems, particularly ERP, streamline business processes across functions, ensuring efficiency and data consistency. Understanding these processes helps businesses operate smoothly and make informed decisions. **1. Supply Chain Structure and Relationships** - **Supply Chain Definition**: Network of organizations and processes involved in producing, delivering, and disposing of goods or services. - **Focal Firms**: Companies leading the supply chain, like General Motors, Ford, Toyota. - **Upstream**: Suppliers that provide raw materials (e.g., steel, aluminum). - **Downstream**: Organizations closer to the customer (e.g., car dealerships). - **Tier 1 Suppliers**: Direct suppliers to the focal firm (e.g., subassembly providers). - **Supplier Relationships**: - **Arms-Length**: Minimal cooperation (e.g., weekly supplier switches). - **Collaborative**: Close cooperation (e.g., sharing forecasts). **2. Competitive Priorities and Corporate Strategy** - **Corporate Strategy**: Foundation for supply chain strategy. - **Order Winners**: Unique features that attract customers. - **Order Qualifiers**: Minimum standards for consideration. - **Competitive Priorities**: - **Product-related**: Quality, timeliness, cost. - **Process-related**: Flexibility, innovation. - **Value Proposition**: Promise of value to customers, based on differentiation. - **Fit**: Alignment with capabilities and key customers. **3. Tactical, Operational, and Strategic Planning** - **Strategic Planning**: Long-term decisions, defining objectives. - **Tactical Planning**: Intermediate decisions to meet demand. - **Operational Planning**: Short-term tasks (e.g., scheduling staff). **4. Capacity** - **Capacity**: Maximum output a system can produce. - **Bottlenecks**: Points in a process with limited capacity. **5. Manufacturing and Service Process Structure** - **Make-to-Stock**: Products made in large quantities and stocked for sale (e.g., cereal). - **Postponement Strategy**: Components stocked near demand sources and assembled when needed. **6. Lean System** - **Lean**: Focus on eliminating waste and improving efficiency. - **Pull System**: Output pulled from the preceding workstation as needed. - **Push System**: Work pushed to the next station, not used in lean management. - **Six Sigma**: Reduces defects and variation to improve quality. **7. Inventory Management and Performance Metrics** - **Inventory Turnover**: Measure of how efficiently inventory is managed. - **Safety Stock**: Extra stock to cover demand or supply variability. - **Strategic Profit Model**: Analyzes supply chain impact on financial performance. - **SCOR Model**: Benchmarking operational performance across companies. **8. Forecasting and Demand Management** - **Demand Planning**: Forecasting and managing customer demand. - **Forecasting Methods**: - **Qualitative**: Grassroots, Executive Judgment, etc. - **Quantitative**: Time-Series Analysis, Causal Studies, AI. - **Forecast Error**: Difference between actual demand and forecasted demand. - **CPFR**: Collaborative planning and forecasting across the supply chain. - **Bullwhip Effect**: Small demand changes cause larger upstream fluctuations. **9. Sustainability in Supply Chain Management** - **Sustainability**: Improving performance in environmental impact, social responsibility, and profitability. - **Triple Bottom Line**: Corporate performance across People, Profit, Planet. **10. Sourcing and Supply Management** - **Supply Management**: Acquiring inputs and managing supplier relationships. - **Sourcing**: Acquiring goods and services. - **Supplier Selection**: Weighted Point Model to evaluate supplier performance. **11. Logistics Management** - **Logistics**: Managing movement and storage of materials. - **Transportation Economics**: - **Economy of Scale**: Lower cost per unit as shipment size increases. - **Economy of Distance**: Lower cost per unit as distance increases. - **Logistics Network Design**: Cost-to-service and cost-to-cost trade-offs, Total Landed Cost. **12. Materials and Resource Requirements Planning** - **MRP**: Calculates when and how much raw material is needed. - **DRP**: Plans when and how to supply finished goods. - **CRP**: Ensures sufficient resources are available for production. A diagram of a company Description automatically generated (Rectangle) Here's a more digestible version of the key concepts for **MKT 362: Essential Marketing Concepts**: **1. Customer Value and Satisfaction** - **Customer Value**: The total benefits a customer receives from a product minus the total costs they incur to obtain it. - **Customer Satisfaction and Loyalty**: Satisfied customers are more likely to return, promoting loyalty. - **How Businesses Create Value**: Companies create value by meeting or exceeding customer expectations, delivering high-quality products, and ensuring positive experiences. **2. Market Segmentation, Targeting, and Positioning** - **Market Segmentation**: Dividing the market into distinct groups based on characteristics such as geography, demographics, psychographics, and behavior. - **Types of Segmentation**: - **Geographic**: Based on location. - **Demographic**: Based on age, gender, income, etc. - **Psychographic**: Based on lifestyle, values, interests. - **Behavioral**: Based on consumer behavior (e.g., usage patterns). - **Targeting**: Selecting a market segment that matches a company's capabilities and resources. The marketing mix (4 Ps) is then tailored to meet the needs of that group. - **Targeting Strategies**: - **Undifferentiated**: Same offering to everyone. - **Differentiated**: Different offerings for different segments. - **Concentrated**: Focusing on one segment. - **Micromarketing**: Targeting very specific, localized markets. - **Positioning**: The process of influencing how customers perceive a brand/product relative to competitors. - **Positioning Strategies**: - Craft a unique market position. - **Perceptual Mapping**: Graphing how customers perceive brands in relation to competitors. **3. Product Strategies within the Marketing Mix** - **Role of Product in 4 Ps**: Product is the core offering in the marketing mix, impacting price, place, and promotion. - **Product Life Cycle (PLC)**: Stages a product goes through, each requiring different marketing strategies: - **Introduction**: New product, focus on awareness. - **Growth**: Increased demand, competition arises. - **Maturity**: Sales stabilize, differentiation is key. - **Decline**: Sales decrease, consider discontinuation or revitalization. - **Product Differentiation and Innovation**: Creating unique features and improving the product. - **Branding and Packaging**: Branding helps establish identity, while packaging plays a role in protection and appeal. **4. Promotion Strategies within the Marketing Mix** - **Role of Promotion**: Informs, persuades, and reminds customers about the product. - **Integrated Marketing Communications (IMC)**: Coordination of all communication tools to create a consistent message. - **Promotional Mix**: - **Advertising**: Paid communication through various media. - **Sales Promotion**: Short-term incentives to encourage purchase. - **Public Relations**: Managing the brand's image. - **Personal Selling**: Direct communication with potential customers. - **Direct Marketing**: Targeting customers directly (e.g., emails, catalogs). - **Factors Affecting the Promotional Mix**: Product nature, target market, PLC stage, budget, and strategy type (push vs. pull). - **Digital vs. Traditional Promotion**: Digital (social media, online ads) vs. Traditional (TV, print ads). **5. Distribution (Place) Strategies within the Marketing Mix** - **Role of Distribution Channels**: Delivering products to customers efficiently. - **Types of Distribution Channels**: - **Direct**: Manufacturer sells directly to customers. - **Indirect**: Using intermediaries (retailers, wholesalers). - **Distribution Strategies**: - **Intensive**: Available in many locations. - **Selective**: Available in select outlets. - **Exclusive**: Limited distribution in very few locations. - **Impact of E-commerce**: Online selling has changed how products reach consumers, offering direct-to-consumer sales and broader reach. **6. Price Strategies within the Marketing Mix** - **Role of Price**: Critical element in the marketing mix that affects profitability and customer perceptions. - **Pricing Objectives**: - **Profit-oriented**: Focus on maximizing profits. - **Sales-oriented**: Focus on increasing sales volume. - **Pricing Strategies**: - **Cost-based**: Setting price based on production cost. - **Value-based**: Setting price based on perceived value to the customer. - **Competition-based**: Setting price based on competitors\' prices. - **Pricing Tactics**: - **Market Penetration**: Low initial price to attract customers. - **Price Skimming**: High initial price, lowering over time. - **Break-even Pricing**: Price that covers costs with no profit. - **Psychological Impact**: Pricing strategies like \$9.99 instead of \$10. - **Discounts, Rebates, Price Bundling**: Reductions or bundling products together at a lower price. MGT 382: Principles of Management 1. **Learning Goal: Describe the basic concepts of management.** Management is the process of planning, organizing, leading, and controlling resources to achieve organizational goals. 2. **Learning Goal: Recognize the different forms of organizational structure and control systems.** The main forms of organizational structure are: functional, divisional (product and geographic), matrix, and team-based. 3. **Learning Goal: Define the basic functions of human resource management.** The main functions of human resource management are: employee selection, hiring, and onboarding; performance management; compensation rewards and benefits; and talent development and succession planning. 4. **Learning Goal: Compare and contrast the different approaches to motivation.** The major theories of motivation include: needs theories, operant conditioning theory, equity theory, goal-setting theory, and expectancy theory. You should know the difference between intrinsic and extrinsic motivation. 5. **Learning Goal: Differentiate the various leadership styles.** Approaches to leadership include traits approaches, behavioral approaches, situational leadership, and a variety of contemporary approaches including servant leadership, transformational leadership, authentic leadership, and leader-member exchange. 1 6. **Learning Goal: Recognize the challenges of teamwork and communication.** Key characteristics of teams that managers should consider include team type, team size, types of interdependence, roles, and diversity. Key considerations in team processes include the stages of team development, cohesiveness, norms, and conflict resolution. Team effectiveness can be measured in terms of output (goal achievement), personal satisfaction of team members, and growth in the capacity to learn. Challenges to team effectiveness include social loafing, groupthink, and poorly managed conflict. 7. **Learning Goal: Identify managerial issues related to diversity, ethics, and the global economy.** *Diversity, equity, and inclusion*: Forms of, diversity and discrimination include race, age, religion, sexual orientation, ability, and gender identity. Diversity can help companies attract new employees, reduce costs, improve their reputation, and increase their creativity through cognitive diversity. *Ethics*: Leading ethical frameworks include utilitarianism, rights-based (deontological) theory, virtue ethics. *Global economy*: Hofstede's framework and GLOBE provide ways of characterizing and distinguishing national cultures. Here are simplified notes based on your original content: **FIN 370 Refresher -- Simplified Notes** **Enterprise Systems & Business Processes** - **Companies** have departments (finance, sales, HR) that often struggle to communicate. - **Business processes** cut across these silos (e.g., order processing, production). - **Enterprise Systems (ES)** integrate functions and improve efficiency. - **ERP (Enterprise Resource Planning)** is the most complex ES (SAP is the most popular). **Types of Data in ERP** 1. **Organizational Data** -- Defines structure (e.g., company code, plant). 2. **Master Data** -- Describes business entities (e.g., customers, vendors, materials). 3. **Transaction Data** -- Records process actions (e.g., sales orders, invoices). **Key Business Processes** 1. **Accounting**: Tracks financial transactions. - **Financial Accounting (FI)** -- External reporting. - **Management Accounting (CO)** -- Internal decision-making. - **Key Processes**: General ledger, AR/AP, asset accounting. 2. **Procurement**: Purchasing materials/services. - Steps: Identify needs → Select supplier → Order → Receive goods → Pay invoice. 3. **Fulfillment**: Selling and delivering products. - Steps: Inquiry → Quotation → Order → Shipping → Billing → Payment. 4. **Production**: Manufacturing goods. - **Make-to-Stock** (produce before demand) vs. **Make-to-Order** (produce after order). - Steps: Request → Approve → Produce → Confirm → Store. 5. **Inventory & Warehouse Management (IWM)**: Storage & movement of goods. - **IM (Inventory Management)**: Goods in/out. - **WM (Warehouse Management)**: Organizing storage. 6. **Material Planning**: Ensures materials are available when needed. - **SOP (Sales & Operations Planning)**: Forecasting. - **MRP (Material Requirements Planning)**: Generating procurement proposals. **Conclusion** - **Enterprise systems improve efficiency** by integrating data across departments. - **ERP systems ensure consistency** in business processes. - **Understanding these processes helps businesses** streamline operations. Let me know if you need further simplifications or edits! MGT 382: Principles of Management 1. **Learning Goal: Describe the basic concepts of management.** Management is the process of planning, organizing, leading, and controlling resources to achieve organizational goals. 2. **Learning Goal: Recognize the different forms of organizational structure and control systems.** The main forms of organizational structure are: functional, divisional (product and geographic), matrix, and team-based. 3. **Learning Goal: Define the basic functions of human resource management.** The main functions of human resource management are: employee selection, hiring, and onboarding; performance management; compensation rewards and benefits; and talent development and succession planning. 4. **Learning Goal: Compare and contrast the different approaches to motivation.** The major theories of motivation include: needs theories, operant conditioning theory, equity theory, goal-setting theory, and expectancy theory. You should know the difference between intrinsic and extrinsic motivation. 5. **Learning Goal: Differentiate the various leadership styles.** Approaches to leadership include traits approaches, behavioral approaches, situational leadership, and a variety of contemporary approaches including servant leadership, transformational leadership, authentic leadership, and leader-member exchange. 1 6. **Learning Goal: Recognize the challenges of teamwork and communication.** Key characteristics of teams that managers should consider include team type, team size, types of interdependence, roles, and diversity. Key considerations in team processes include the stages of team development, cohesiveness, norms, and conflict resolution. Team effectiveness can be measured in terms of output (goal achievement), personal satisfaction of team members, and growth in the capacity to learn. Challenges to team effectiveness include social loafing, groupthink, and poorly managed conflict. 7. **Learning Goal: Identify managerial issues related to diversity, ethics, and the global economy.** *Diversity, equity, and inclusion*: Forms of, diversity and discrimination include race, age, religion, sexual orientation, ability, and gender identity. Diversity can help companies attract new employees, reduce costs, improve their reputation, and increase their creativity through cognitive diversity. *Ethics*: Leading ethical frameworks include utilitarianism, rights-based (deontological) theory, virtue ethics. *Global economy*: Hofstede's framework and GLOBE provide ways of characterizing and distinguishing national cultures. MKT 362: Essential Marketing Concepts - **Learning Objective:** Illustrate the importance of customer value. - Definition of customer value - The role of customer satisfaction and loyalty o - How businesses create and deliver value to customers - **Learning Objective:** Explain the importance of market segmentation, targeting, and positioning. - **Learning Objective:** Investigate the role of product strategies within the marketing mix. - The role of product in the 4Ps (Product, Price, Place, Promotion) - Product life cycle (PLC) (Introduction, Growth, Maturity, Decline) and marketing strategies at each stage of PLC - Product differentiation and innovation o - Branding and packaging strategies - **Learning Objective:** Compare and contrast promotion strategies within the marketing mix. - The role of promotion in marketing o - Marketing communication process - Integrated marketing communications - Promotional mix: Advertising, Sales Promotion, Public Relations, Personal Selling, Direct - **Learning Objective:** Compare and contrast distribution (place) strategies within the marketing mix. - The role of distribution channels in marketing o - Types of distribution channels: Direct vs. Indirect o - Intensive, Selective, and Exclusive distribution strategies o - Retailing - The impact of e-commerce on distribution - **Learning Objective:** Analyze the role of price strategies within the marketing mix. - The importance of pricing in the 4Ps - Pricing objectives (e.g., profit-oriented, sales-oriented) o - Pricing strategies: Cost-based, Value-based, Competition-based o - Market penetration pricing, price skimming, Break-even pricing - Tactics for fine tuning the base price: e.g., the psychological impact of pricing; discounts, rebates; price bundling.