Enterprise Resource Planning (ERP) and Business Process Analysis

Comprehensive vocabulary flashcards covering the basics of ERP systems, business process reengineering, and process mapping techniques.

Enterprise Resource Planning (ERP) systems

Business systems that integrate and streamline real-time data across the company into one complete system that supports the needs of the entire enterprise.

Legacy systems

Older, standalone, disparate business systems that are often disjointed and supported by various separate functions.

MRP II

Material Requirements Planning; an integrated system developed in the 1980s that combined finance, purchasing, accounting, inventory, and sales order processing.

API

Application Programming Interfaces; one of three primary methods for ERP system integration.

Module

A group of related programs performing a major function within the ERP system, such as accounting or manufacturing.

Core ERP

Primary ERP modules encompassing Financials, Human Capital Management (HCM), and Logistics.

Extended ERP

Additional modules that include components like Customer Relationship Management (CRM) and Supply Chain Management (SCM).

Two-tier ERP

A deployment model where a company runs one ERP system at headquarters (Tier 1) and a different, usually cloud-based, system at subsidiaries (Tier 2).

IT Auditor

A type of internal auditor who specializes in auditing information systems.

Tier 1 ERP vendors

Vendors that serve large corporations with 1,000+ employees and revenues over $1$ billion, offering capabilities for global subsidiaries.

Business Process

A series of activities linked together to convert inputs into a product or service output.

Shared services

The provision of service by one part of an organization where that service was previously found in multiple parts of the organization.

Authority Ambiguity

Occurs when two or more individuals are required to unnecessarily approve a process or decision, leading to bureaucracy and delays.

Bottlenecks

Arise when many information flows lead to a single activity or decision point, causing delays or process stoppage.

Cycle Time

The total time taken for a process from start to finish.

Segregation of Duties

The practice of ensuring employees cannot both perpetrate and conceal fraud by separating custody of assets, authorization, and recording.

Business Process Reengineering (BPR)

A fundamental, radical redesign of business processes to achieve breakthrough performance in cost, quality, speed, and service.

Clean Slate Reengineering

A BPR approach that involves starting over from scratch and completely redesigning a process with no limitations.

Technology Enabled Reengineering

Also known as constrained reengineering, where the information system's design constrains the process design.

As Is process

The current state of a business process being analyzed.

To Be process

The future vision of a new business process after redesign.

Business Process Improvement (BPI)

A method involving gradual improvement to business processes over time rather than radical change.

System Diagram (SD)

A graphical representation used to describe business processes, assess internal controls, or design information systems.

Swim lanes

Horizontal or vertical bands in process maps that organize activities into groups based on who is responsible.

SIPOC

A high-level process map acronym representing Supplier, Input, Process, Output, or Customer.

Subject Matter Expert (SME)

A role in process mapping for an individual who knows the process intimately and provides knowledge and expertise.

Delay symbol

A rectangle with one end rounded used to show a pause in a process map before the flow continues.