PDF Chapter One Business Functions and Business Processes
[Pages:77]Chapter One Business Functions and Business Processes
After completing this chapter, you will be able to:
Name the main functional areas of operation used in business Differentiate between a business process and a business function Identify the kinds of data each main functional area produces Identify the kinds of data each main functional area needs Define integrated information systems, and explain why they are essential in
today's globally competitive business environment
Concepts in Enterprise Resource Planning, Fourth
Copyright 2013 Schwalbe Publishing
2
Enterprise Resource Planning (ERP) programs: Core software used by companies to coordinate information in every area of business
Help manage companywide business processes
Use common database and shared management reporting tools
Business process: collection of activities that takes some input and
creates an output that is of value to the customer
Concepts in Enterprise Resource Planning, Fourth
Copyright 2013 Schwalbe Publishing
3
To understand ERP, you must understand how a business works
Functional areas of operation Business processes
Concepts in Enterprise Resource Planning, Fourth
Copyright 2013 Schwalbe Publishing
4
Marketing and Sales (M/S) Supply Chain Management (SCM) Accounting and Finance (A/F) Human Resources (HR)
Business functions: Activities specific to a functional area of operation
Concepts in Enterprise Resource Planning, Fourth
Copyright 2013 Schwalbe Publishing
5
Functional Areas of Operation (cont'd.)
Figure 1-1 Examples of functional areas of operation and their business functions
Concepts in Enterprise Resource Planning, Fourth Edition 6
Functional areas are interdependent
Each requires data from the others
Better integration of functional areas leads to improvements in communication, workflow, and success of company
Information system (IS): Computers, people, procedures, and software that store, organize, and deliver information
Hardware
Software
Database
Procedures
Concepts in ENnettewroprrkise Resource Planning, Fourth
People
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7
Information Systems Inside an Organization
Copyright 2013 Schwalbe Publishing
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