COLLABORATION EXERCISES AND CASES
INNOVATION IN PRACTICE
CHAPTER 7 – PAGE 284: QUESTION#2
GROUP D
*Alex M.
*Jessica H.
*Julia P.
*Nieves R.
*Susan C.
A-1) EXPLAIN HOW PROCESSES ARE INHERENT IN
APPLICATION SOFTWARE
A-2)ARE PROCESSES INHERENT ONLY IN ERP SOFTWARE
SUCH AS SAP OR ARE THEY INHERENT IN OTHER PRODUCT
AS WELL.
 Inherent processes built into business process design software
require an organization to conform its activities to the program.
That can save a company substantial design costs. Inherent
processes can also cause disruptions to operations and
employees. This figure provides an example of inherent
processes in an ordering process.
 There is process inherited in Customer Relationship
Management
 CRM however Enterprise Resource Planning
 ERP provide even more integration than CRM. ERP integrates
the primary value changing activities with human resources
and accounting. ERP is an outgrowth of MRP II and the
primary ERP user are
 Manufacturing companies.
A-3) DOES MICROSOFT WORD FOR EXAMPLE HAVE INHERENT PROCESSES?
No, Microsoft word does not has inherent process like SAP. It is
a universal text processor to create letter, memo etc.
A-4) What characteristic and classification of inherent process
does comparison of sap and word suggested
When an organization acquires a business application from Sap
the processes for using the software are built-in, inherent
process. In most case to use the software the organization must
conform its activities to those processes. If the software is
designed well the inherent processes will save the organization
the substantial something staggering costs of design. From
tracking customers, process order, manage inventory, pay
employees, and provide general ledger, payable, receivable, and
other necessary accounting function.
Microsoft is software created to assist in the daily basis job
performance such creating a memo for external or internal
process. Microsoft Word can be adapt to SAP, so we will be
able to transfer information from SAP into Word and create a
letter.
B
Many early business process design projects failed because
they were tailor-made. They were custom-fit to a particular
organization, and so just one company bore the cost of the
design effort. When an organization acquires a business
application from say, Oracle or SAP, the processes for using
the software are built-in, Inherent Processes. If the
software is desined well, the inherent processes will
effectively integrate activities across departments, saving
the organization the substantial, sometime staggering,
costs of designing new process itself The primary benefit is
not the software, but the inherent processes from using the
software saving the company time, expense and agony of
process design.
C-1) HOW DOES A VENDOR GAIN A COMPETITIVE
ADVANTAGE WHEN PRODUCING A COMMODITY?
 Enterprise
Resource Planning Systems are becoming
commodities. Commodities are something useful that can
be turned into commercial or another advantage. This term
pertains to ERP systems and processes, if there are more
companies that are creating blueprints with the same
features and formats then it isn’t a unique product and the
companies have to get a competitive advantage to survive
in the market.
C-2) HOW COULD ORACLE, FOR EXAMPLE, GAIN A
COMPETITIVE ADVANTAGE OVER SAP?
 For
the company of Oracle is providing the same
service of creating blueprints for business with the
same features and functions lets them be at the same
competitive level as SAP, but doesn’t give them a
competitive advantage. A way that Oracle can get an
advantage is by reducing the cost of the software and
hardware as well as the training of the users. Oracle
can also enhance the program by making it able to
customize to the customer’s request and not just the
standardized blueprint.
D) SUPPOSE THAT TWO COMPANIES USING THE SAME ERP
(ENTERPRISE RESOURCE PLANNING) SYSTEM HAVE THE EXACT SAME
BUSINESS PROCESSES.
1)Does it necessarily follow that neither company can gain a
competitive advantage over the other?
Not necessarily, because it comes down to how each company
uses the system to their gain. It comes down to training, and
executing plans.
2)Is there some way that one company can gain an advantage by
better executing the identical process? How?
Yes, one of the companies can gain advantage by the way it's
procedures are executed and established, how they implement
their system (meaning training, data conversion, new procedures,
problem solving)
3)Is such a competitive advantage sustainable? Would you rather
have a competitive advantage by having better processes or a
competitive advantage by having the same processes, but
executing them better?
I think it's not sustainable due to the fact that each company
will eventually try to outmatch their competitors by creating
new ways, ideas and plans.
I would say the same processes with better execution, because
it all comes down to how you execute the plans and system.
SUPPOSE THAT AN ERP SYSTEM MAINTAINS
CUSTOMER ORDER DATA IN THE FOLLOWING
TABLES:
Customer
CustNum
Name
Order
Order Number
OrderDate
Payment
OrderNumber
PaymentDate
Industry Code
Annual Sales
SalesPerson Name
Amount
CustNum
Payment Amount
EXPLAIN THE RELATIONSHIPS THAT ARE
DEFINED FOR THESE THREE TABLES

Table 1 and 2 the relationship is CustNum

Table 2 and 3 the relationship is OrderNumber
SUPPOSE THAT A COMPANY EXTRACTS THIS DATA
FROM ITS ERP SYSTEM AND USES IT TO INFORM
SALES ACTIVITIES. WHAT INFORMATION CAN BE
OBTAINED FROM THIS DATA?
o
o
o
o
Number of orders placed by a customer
Annual purchases a customer has made
How often a customer places orders
Payment history
HOW CAN THE INFORMATION OBTAINED FROM THIS
DATA PROVIDE A COMPETITIVE ADVANTAGE?
o
o
o
o
The data obtained provides a competitive advantage because it
gives you a summary of what customers purchase and when the
purchases are made and you can provide customers with
automated ordering instead of having them call in orders.
A company can provide a customer with payment arrangement
if it’s a customer that has a good payment history.
Provide customers with discounts, therefore they will come
back for your business.
Also since the information provides you with dates of orders, if
you realize a customer has stopped placing orders you can
follow up with them to keep them buying from products.
F
Organizations that are adopting ERP must
review those models and determine which ones
are appropriate to them. Sometimes the currentpractice models are incomplete, vague or
innacurate. Also, Users must be trained on the
processes, procedures and use of the ERP
system's function and features. Additionally, the
company needs to conduct a simulation test to
identify problems.