introdution to business process with erp system

2/8/2017 Integrated Business Processes with ERP Systems
1
MADE BY :-
KUSHAL MALHAN(16609010)
SALONI BANSAL(16609048)

1. Describe the functional organizational structure,
and explain why this structure creates problems
for modern businesses.
2. Describe key business processes in an
organization.
3. Identify the main integration points between
and among processes.
4. Understand the cross-functional nature of
processes and their relationship to
organizational areas.
5. Adopt and apply an integrated perspective to
business processes.
2/8/2017 Integrated Business Processes with ERP Systems 2

6. Describe GBI’s organizational structure.
7. Explain how the SAP system promotes an
integrated approach to business processes.

 Most common organizational structure
 Functional structure divided into functions or
departments
 Functions perform specialized tasks or
activities
 Processes cut across functions
 Why is the functional structure so common?

 Focusing on functional objectives without
regard to process objectives.
 Optimizing functional goals vs. process
goals.
 Process execution requires
Communication and coordination among
functions
How is this achieved?

 Impossible to manage processes that are
geographically dispersed without the use of
modern information systems
 Enterprise systems (ES) support end-to-end
processes
 Investments in ES have provided
Increased profitability
Increased productivity
Competitive edge
2/8/2017 Integrated Business Processes with ERP Systems
7

 Sequence of tasks or activities that produce
desired outcomes
 The objective of business process is
Commercial purpose and Social Objective.
 Key processes
 Procurement
 Fulfillment
 Production
 Processes interrelated with other processes
 Processes may have sub-processes

Functional
Area 1
Functional
Area 2
Functional
Area 3
Such as:-
Sales,Warehouses,Manufacturing and
Accounting

The procurement process (buy ) refers to all of the
activities involved in buying or acquiring the materials
used by the organization, such as raw materials needed to
make products.

Concerned with acquiring needed materials
internally (by making them), the procurement
process is concerned with obtaining
needed materials externally (by buying them).

Consists of all the steps involved in selling and
delivering the products to the organization’s
customers.

 Make innovative products according to
customer taste & preferences.
 Provide set of tools to manage product
design & future
 Examples are automobiles & bicycle
industries

Are used to maintain internal assets such as machinery
and to deliver after-sales customer service such as
repairs.

Are used to plan and execute large projects such as
the construction of a new factory or the production of
complex products such as airplanes.

 Fictional company
 Background on GBI can be found in the
overview document on the SAP University
Alliance Community (http://uac.sap.com)
 GBI data is used throughout the book to
illustrate key concepts and processes
 Hands-on exercises and demos use GBI
data

 SAP stand for system, application and products.ERP
stands for Enterprise resource planning.
 SAP R/3 was designed to eliminate inefficiency like
sharing data with different departments and console
all data in single data base.
 It can be used by enterprises to manage their
business operation
 Allow easier global integration

Important online supplement
Four key components are:-
Hands on exercise
SAP-ERP system demonstrations
Online chapters
Information about preparing SAP
certification exam

 This chapter introduced the key concepts related to common business processes in
organizations, the typical functional structure that companies employ to manage
their operations.
 The benefits of adopting a holistic view of integrated business processes and their
role in effectively translating corporate strategy into operational efficiency.
 Most companies are organized according to functional departments,
which group together related activities and assets under specialized management
controls.
 Although this approach enables companies to focus resources
on specific c activities, it also creates communication difficulties and delays between
the highly specialized groups.
 Business processes cut across the vertical barriers (silos) that characterize the
functional structure. For this reason they
Require cross-functional communication and collaborative execution.

 Key concepts to common business process.
 Typical functional structure, Enterprise
system, Procurement (buy).
 Production(make),Fulfillment(sell),Life cycle
data(design),Inventory(store).
 GBI,SAP-ERP & WILEY PLUS

2/8/2017Integrated Business Processes with ERP Systems 25

introdution to business process with erp system

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