Organization Structure and Business Process Modelling
1. What is the most common Organizational Structure? How did the structure evolve? What are the benefits and drawbacks associated with the implementation of such a structure?
The most common organizational structure is the functional or department form of organizational structure. This structure evolved due to the development of scientific management method which was formed during industrial revolution where in departments was formed. The main benefits of this method are that it leads to better organization and better accountability. The biggest drawback of this method is that it results in lack of integration, which would not be apt for present times with high competition and global level of business. In present times there are several modern and hybrid organization structures that are opted for by present day organizations (Christian Caspar and Michael Halbye, 2017).
2. What is a functional information system? What is their value to an organization? What are their main drawbacks?
A functional information system is an information system that has been formed to suit the exact needs of a particular business function which may be marketing, Human resources, finance or other domains of a business. They add great value to an organization as they provide detailed information management and also help record information, process it and help the business carry out the function with greater efficiency. Their main drawback is that they are difficult to be integrated with other functional systems and do not provide real time information for activities of the organization as a whole. It lacks integration (Kathryn F. Shen, J.D, 2016).
3. What is an enterprise information system? How do these systems differ from functional systems? What is their value to organization?
An enterprise information system is one which functions as a system that connects all the functions of the organization and along with this it helps integrate information or data updates in each and every department of an organization. It is important to focus on the resource management of an organization and an enterprise information system helps an organization manage all its resources in an integrated manner. These systems differ from functional systems as they are a common system formed to manage the whole of the organization and its operations. Their value to organization is that they provide a holistic approach towards managing resources and obtaining efficiency (Christian Caspar and Michael Halbye, 2017).
4. Explain the difference between the functional view and process view of Organizations. Why is the process view important today?
The functional view of an organization is based on marketing, finance, human resources and operations which results in a non integrated format of managing the business. On the other hand the process view of organizations is based on understanding the complete process right from forming the business concept to obtaining raw material to reaching the final consumer. The process view is important today as it helps provide better consumer service and helps organizations be more competitive. It is an important aspect of delivering better value to the consumer. It is an important element in forming long term growth for the whole of the organization and so it is preferred by present day organizations (Kathryn F. Shen, J.D, 2016).
5. Within the procurement process what is a three way match used for? What is used to complete the match?
In the procurement process, the three way match is used for matching the purchase orders, invoices and order receipts. This process aims at ensuring optimal vendor relationships and ensuring accuracy in the purchase process. The last step that is used to complete the match is an audit which enables ensure effective management of the purchase process. It is important for a business to focus on the efficiency of its procurement process which is possible only when there is detailed understanding of what was ordered and from whom as well as if the right products were received or not (Kathryn F. Shen, J.D, 2016).
6. Explain the difference between a Bill of Material and Product Routing?
Bill of Material refers to a statement that defines product structure at the manufactured end item. Product routing refers to the production module which helps define the manufacturing process as a whole and bill of material or material requirement is a part of product routing. Both the modules and methods are effective for production management. Yet Bill of Material is quite flexible whereas the Product routing method is not flexible. So Bill of Material is opted for by more number of organizations in many countries (Christian Caspar and Michael Halbye, 2017). It is important that manufacturing organizations opt for a suitable method to manage production and inventory.
7. Identify some of the key problems associated with the manual, or paper-based, business process. How does an enterprise system eliminate or reduce the impact of these problems
Some of the key problems associated with the manual paper-based, business process include lack of integration, possible errors, duplication of efforts and slow processing. Moreover it does not provide options like trend analysis, statistical analysis, data integration, filtering and other actions that information systems can easily process even for larger sets of data. An enterprise system eliminates or reduces the impact of these problems by computerizing most of the processes involved in the production management and inventory management of an organization. It requires the usage of an effective level of manpower and manual effort for maintaining a paper based system whereas the effort and manpower required in an enterprise system is much lesser (Kathryn F. Shen, J.D, 2016).
8. Explain the difference between a Made to Order and Made to Stock strategy. What are the perceived advantages and disadvantages of each approach?
Make to order strategy is focused on lean production or real time production where in production is done only when an order is received. The advantage of this method is that it helps minimize inventory cost. On the other hand the risk of not being able to complete the order is high.
Made to stock strategy on the other hand is a production strategy where in a minimum stock is maintained and production is done prior to receiving an order. In this method the inventory costs are high but the risk of not completing the order is minimized (Kathryn F. Shen, J.D., 2016).
9. What impact has globalization had on an organization? How do they respond?
Globalization has impacted organizations as it has resulted in higher competition, better opportunities and reduced geographical barriers. Globalization has resulted in higher pressure for organizations to perform better. Organizations respond by adopting strategies like outsourcing which help them take advantage of price differentials and resource differentials as well as manpower. They take advantage of globalization and operate at global levels thus having substantial advantage and target markets which are strategically beneficial to them. It also helps them perform better as they work harder to face competition (Kathryn F. Shen, J.D, 2016).
10. What does it mean when it is said that a product may have several views? What is a view and what are they used?
A product may have several views as it may have multiple purposes and multiple benefits. A product may have different consumer reactions in different countries and people may accept or reject it in different places. A view is nothing but a perception that a consumer has about a product and the proposition with which the marketer positions a product in the market. Views are used to position a product favorably in the market. It helps obtain better understanding about the product and it intended use. It also helps set consumer expectations about product performance and quality as well. It helps consumer understand what value the product can provide (Christian Caspar and Michael Halbye, 2017).
11. In the SAP environment, explain the difference between Organizational, Master and Transactional data? Provide examples.
SAP environment helps establish better organization integration which would result in Organizational, Master and Transactional data being integrated. Organizational data includes all the data about the particular branch or office. Master data would include data relevant to internal organization or business and the external markets and industry relating to the domain of the business. The transactional data is focused on the sales, purchases and other economic transactions that take place in the organization. In a SAP environment a change or up gradation in any one of the types of the data would result in changes in the complete organization (Kathryn F. Shen, J.D, 2016).
12. Explain the four common material types in an ERP System.
The four common material types in ERP system include transactional data, knowledge input, industry trends and information about employees. These 4 common types of data or material in ERP include digital material as well as paper material which is typed in and converted to digital information. All of this material is integrated and a common system where integration is possible can be formed. It help formulate a stronger integration and value for the business of the organization. It also helps ensure that there is better efficiency ensured in the organization through usage of integrated information and formation of real time data updates (Christian Caspar and Michael Halbye, 2017).