Question

COURSE : IT Enterprise systems

Consider the following enterprise scenario and answer the following questions. ABC is a wholesale company that sells electrical equipment and provides a website from which customers can inquiry about products and identify what they want to buy. When costumers order electrical equipment, they place their order on the ABC website. ABC does not own or hold any equipment as inventory. Rather, the ABC orders the equipment from the appropriate supplier and ranges for the equipment to be shipped directly from the supplier to the customers. The customers pay ABC and receive receipts. The ABC also pays the suppliers and keeps the excess as revenues.

1. Create a value chain REA model that represents the flow of ABC's resources between the sales/collection process with other business processes.
2. Create a business process level REA model for ABC's sales/collection process. Be sure to include all relevant entities, relationships, and attributes.

note: NEED A UNIQUE ANSWER AND NO HANDWRITING PLEASE..

THANK YOU

Answer 1

Value chain:- Value chain model is an abbrivation of business model in this business model internal operations are included such as resources and policies, controlling system. for e-business or REA value chain business model new design techniques are required. REA business value chain monitors and  concentrates on the flow inside the business.

The REA business value chain has:-

1.) Value system : Manufacturing-->sales

2.) value chain or supply chain : A---->a

3.) Operational system: X Y Z--->ZYX

REA approach to business process modeling. This is followed by a discussion of the shortcomings of traditional database applications. The third section looks more deeply into the development of an REA model. A thorough example of how the REA process is carried out is presented. The objectives of this chapter are: ! to recognize the limitations of traditional database systems; ! to be aware of the benefits of adopting an REA approach to information systems compared to a traditional approach; ! to be aware of the implications of REA for the accounting profession; ! to be aware of the steps involved in preparing an REA model of a business process; ! to appreciate the importance of identifying the attributes of entity relations in relational database design; and ! to appreciate the difference between an REA model representation of a business process and an ER diagram representation.