3. What is an enterprise information system? How do these systems differ from functional systems? What is their value to organization?
1. Organizational structure is part of the strategic management approach use by the management while embracing their management functions, it refers to how activities such as the supervision, task allocation, and coordination are redirected towards achieving the set organizational structure. It is also explained to be achieving the organizational objectives through people in their working environment (Frank, 2014).
The functional structure is commonly used organizational structure, it is the type of the organizational structure in which organizational activities are grouped into groups and department such as finance, information communication department, and marketing. It is commonly used by large and small organizations (Yu, 2013).
By grouping the organizational activities into group enhances utilization of the human resource strategic management approach such as motivation and job performance appraisal to employee. The grouped department in the organization will also be able to make the right decisional making which will ensure proper operation in the organization. The disadvantage is that practical offices may turn out to be excessively effective, regularly dismissing the association (Doumeingts, 2016).
2. A functional information system is an approach that provides significance information relating specific groups and activities and other vital information regarding the management controls.
The functional information system in an organization plays a key role in making fundamental decisions that will lead to achieving the organizational goals and objectives. Decision-making process implies making decision which will be functional while planning the future operations of the organization. An information system is an organization facilitated the noble operations which will lead the form into gaining the competitive advantage in a business environment. It also allows the organization faces important communication process.
Information systems may not work legitimately which influences the running of the business. This can bring about framework separate, intruding on smooth operations and buyer disappointment. Deficient information systems can convey wrong information to different systems which could make issues for the business and its clients. Information systems are additionally vulnerable to hackers and frauds.
3. Enterprise systems support the whole procedure as opposed to parts of the procedure. Moreover, enterprise systems are not only backing the execution of individual exercises in a procedure, they additionally help the association coordinate work across the functional units. This coordination further decreases delays, avoids excess stock, and expands visibility. Apparently the intricacy of dealing with the information across whole procedures, it is not practical to depend on physically associating useful data frameworks by printing data from one framework and rekeying it into the following framework. In this way, notwithstanding moving from storehouses to procedures, associations should likewise move from practically engaged data frameworks to coordinated venture frameworks (Bannister, 2015).
4. The functional view of an organization is focusing on the skills and the expertise relevant to fulfill certain business functions at the different organizational level. While the process view of the organization is based on the different stages of production process in the organization. Communication in functional view of the organization takes place at the departmental level, while in process view communication and related decision take place in the process stages (Doumeingts, 2016).
Process view is commonly used strategic management in today’s business environment, it allows managers to establish and focus on the relevant skill required in the production process of the organization (Frank, 2014).
5. The three-way match is a payment verification approach that is used by accounting and procurement department while procuring supplies to the organization, it implies when one party A receives an invoice it will be the same with one party B is having. The documents used in the three-way match are invoice, purchase order, and receive report (Tang, 2016).
6. Bill of material is embraced to be an essential part of manufacturing, it comprises list of part, sub-assemblies, and assemblies used in creating the final products. The bill of material explains what to be bought as well as instruction of how to assemble the products.
While product routing in manufacturing explains the steps and procedures which will be used in creating the final products. Routing states the process and related task required while creating to new final products (Morecroft, 2015).
7. The manual business process is influenced by the different key problem, this limits the operation of the organization. The manual business system takes more efforts and physical space to track the paper documents when errors are to be corrected the data are to be completed and redone rather being updated. Customer service may is also affected by the essentiality of manual and paper business process in the organization, accessing the customer information may be difficult since the customer details are stored in different places (Davenport, 2013).
To eliminate this manual works, the company should adopt the use of new technology such as accounting packages and other related software’s, this will seek toward reducing and eliminating fully the key problem associated with the manual business process (Frank, 2014).
8. Make to order (MTO) is a business production strategy that normally allows the customers to buy products that are customized to their determinations. This strategy just makes the final products once the customer places an order. This creates an extra time for the customer to get the product, yet considers more adaptable customization contrasted with obtaining from retailers. Make to order (MTO) strategy eases the issues of over the top inventory that is normal with the conventional make to stock (MTS) strategy. Therefore the advantage of Make to order is to reduce production of excess stock to the market (Fleischmann, 2014).
While the Made to Stock strategy is a traditional production strategy used by many business organization to match the level of production and inventory in relation to the customer demands and forecast, Made to Stock strategy requires to the company to exceptionally make an accurate forecast of demands in the market in order to determine the level of stock to be produced. One of the drawbacks of Made to Stock strategy is that it only relies on the accuracy of the forecasted demands (Frank, 2014).
9. Globalization is defined to be the integration of people, business organization, and governments. The process of globalization is created as a result of agreement between firm and the governments, this is to improve the operation of every business organization (Yu, 2013).
Adopting of new innovation and technology is one of the response and the positive impact of globalization on the organization, this implies when the organization used different technology to undertake their business activities. Expansion in the market environment is also amongst the response of the globalization in relation to the impact on the organizations. Low-Priced Workforce and Raw Materials is an impact of globalization to operating business organization, it implies when the company responds to the effects of low labor and raw material. An organization may access the important factors by entering into an agreement with other operation firms from different regions (Cross, 2016).
10. Product view is explained to be an element of marketing information system. It is defined to be process of understating the product concepts, design requirement, product target market, pricing and positioning strategy. The product view allows the customer and all the stakeholders to review the product in the market, their views may be used to improve the image, design and the specification of the product (Frank, 2014).
11. Systems Applications and Products allows the organization to track business operation in relation to customer and their interaction with the business. Organizational data refers to the data relating to the structure and mode of the organization. Examples include sales and raw material data.
Transactional data are data that support the daily operation of an organization, they comprise the automotive systems that facilitate daily business process. Example include payment methods and discount received and allowed (Fleischmann, 2014).
Master data plays a primary role in business process, it refers to the key organizational entities that are utilized by a few useful groups and are regularly put away in various data frameworks over a business enterprise. Moreover, master data represents the business entities around which the organization business transactions are executed and the essential components around which analysis are conducted. An example includes data relating to employee performance, product, and supplies (Bannister, 2015).
12. Raw materials. Ordinarily, raw materials are obtained from a seller and are not sold to end-clients (Yu, 2013).
Semi-Finished products. They are normally created from crude materials and are utilized to deliver finished merchandise. Cases: front wheel gatherings.
Finished goods. This is made by the production procedure from different materials, for example, raw and semi-finished products.
Trading goods. Like raw materials, these are purchased from a merchant. Additional preparing of the material preceding exchanging is not performed.
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