SOLUTION: IT 402 Saudi Electronic University Global Bike Inc Case Study

College of Computing and Informatics
Integrated Enterprise Systems
Assignment 1
Deadline: Thursday 18/02/2021 @ 11:59
[Total Marks for this Assignment are 5]
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Question One
Pg. 01
Question One
Explain the
Global Bike Inc. is a world class bicycle company making professional and touring
off-road racing cycles. Global Bike Inc. is registeredin the US and the German
subsidiary Global Bike Germany GmbH. In America, the three locations Dallas, San
Diego and Miami are assigned to the sales regions (East and West). In Germany,
Hamburg is established in the North and Heidelberg in the South. The figure shown
below shows the enterprise structure. In order to visualize its organizational and
process structures, you will provide a simple explanation of how below given model
hierarchy levels work at GBI:
architectures and
Core business level,
Overview level,
Detail level and
Document level
1.5 Mark
Question One
Pg. 02
The Global bike company operates on a hierarchical business model with distinct
levels that function in diverse ways. The company’s core business level includes the
overall business management that foresees the other branches and facilitates
operations. The company is headquartered in Dallas with well-established finance
material planning, administration IT, and human resources management. The
company’s headquarters in Dallas facilitates product exports and internet-based
commodities; the company also distributes supplies for the central and internet
retailers. The company’s overview of the company comprises the overall organization
representing the US branches and the global bike Inc. based in Germany. The core
business level includes the general business, while the overview level comprises the
company’s management overall in the US and German and consists of the headquarters.
Global bicycles specialize in the manufacture of bicycles and improve its
products’ overall performance in both the domestic and international markets.The
company’s third hierarchical level includes the global bike US East and US west while
the German level embraces the German north and South. The level performs in
ensuring the provision of services, and a majority of operations occur at this level. The
document level of global bike Inc. includes San Diego, Miami, Dallas, Hamburg, and
Heidelberg. The business levels include the core customer interaction whereby
operations take place.
Pg. 03
Question One
Question Two
Pg. 04
1 Mark
Question Two
Describe the key
issues related to
What is difference between Finance (FI) and Controlling (CO) in SAP? Does it need to
be synchronized in SAP? Explain in your view.
SAP is the global leader in the production of software used in the management of
operations. The organization uses financial accounting reporting measures and cost
systems and
controlling measures. The SAP FICO module covers most business processes due to
its robust nature in most industries. The modules get characterized as one of the most
essential and broadly used in SAP. The FI module aids organizations in maintaining
their financial records for the management to determine their organization’s financial
position. Financial reporting aids the organization in determining the profitability it
realizes from operations.
The Controlling module, on the other hand, provides information that aids in
the operation management process. The controlling module aids in the determination
of better decisions for the organization and strategic and operational planning. The
difference between the FI module and the CO module is that they deviate in
information delivery. The FI module provides information on performance and the CO
module provides information on better decision making in an organization.
Question Two
Pg. 05
Organizations have to synchronize the FI and CO modules to ensure the firms’
operations’ collective achievement.
Question Three
Pg. 06
Describe the key
issues related to
systems and
system integration
1.5 Mark
Question Three
Give an example that explains how the procurement process is essential for
organizations to create and deliver products and/or services to their customers.
The procurement process in organizations involves acquiring products and services
after careful determination of terms and tendering process. The procurement process
aids organizations in delivering products and services to their customers. Company
XYZ deals with the manufacturing of food products serving a broad customer base in
the Jeddah region. The customers in the area appreciate timely delivery and good
quality of the products. Due to the high demand for quality and timeliness, the
company needs to secure reliable suppliers to provide essential production materials.
The company has a well-defined procurement department that works to
secure raw food products from other firms. The department accepts tenders, which get
determined by the procurement officials and select the best tender offer. The company
then gets a delivery for the acquired products and proceeds to produce its desired end
products. The procurement process helps a company facilitate production activities and
deliver goods and services to its customer base.
Pg. 07
Question Three
Question Four
Pg. 08
Describe the key
issues related to
systems and
system integration
1 Mark
Question Four
Explain how the SAP ERP system promotes an integrated approach to business
EPR systems aid organizations in experiencing a set of benefits during
operations and business processes. The system aids in the integration of approaches
related to business processes. The benefits attracted after the adoption of SAP EPR
systems aid organizations gain benefits, including enhanced efficiency and
productivity, cost reduction, improved data analysis and reporting, and goal
achievement. The EPR systems help organizations improveefficiency by increasing
employee information access, making them address customer queries faster. The
adoption of EPR systems aids organizations in maintainingimproved communication
hence realizing improved service delivery.
EPR systems aid organizations in integrating operations and business
processes by reducing the costs involved. Companies reduce operations and labor costs
in the various departments in a firm. Organizations can enhance their effectiveness in
operations by ensuring transparent reporting,and this reduces potential risks. EPR
adoption in organization aids in the enhancement of inconsistent processes, ensuring
managers make informed decisions. Major organizations achieve market
competitiveness and productivity by implementing SAP EPR systems.
Question Four
Pg. 09
Global Bike Inc. (n.d.). Background and overview of GBI strategy and operations.
Retrieved from
Makela, C. (2017). The benefits of using a sap erp system. Retrieved February 14,
2021, from
Okungbowa, A. (2015). SAP ERP financial accounting and controlling: Configuration
and use management. Apress.
Rungta, K. (n.d.). Sap fico training tutorial: Learn sap Fi & sap Co modules. Retrieved
February 14, 2021, from

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