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    Introduction To Business Process: Magal and Word - Integrated Business Processes With ERP Systems - © 2011

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    Damola Adeoshun
    Enterprise Systems such as SAP support end-to-end processes. Enterprise Systems are costly, but, justified by Increased profitability and Increased productivity. A Business Process is a Sequence of tasks or activities that produce desired outcomes.

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    Attribution Non-Commercial (BY-NC)
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    Introduction To Business Process: Magal and Word - Integrated Business Processes With ERP Systems - © 2011

    Uploaded by

    Damola Adeoshun
    186 views11 pages
    Enterprise Systems such as SAP support end-to-end processes. Enterprise Systems are costly, but, justified by Increased profitability and Increased productivity. A Business Process is a Sequence of tasks or activities that produce desired outcomes.

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    Magal_Ch01_2011_Riz

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    Enterprise Systems such as SAP support end-to-end processes. Enterprise Systems are costly, but, justified by Increased profitability and Increased productivity. A Business Process is a Sequence of tasks or activities that produce desired outcomes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    186 views11 pages

    Introduction To Business Process: Magal and Word - Integrated Business Processes With ERP Systems - © 2011

    Uploaded by

    Damola Adeoshun
    Enterprise Systems such as SAP support end-to-end processes. Enterprise Systems are costly, but, justified by Increased profitability and Increased productivity. A Business Process is a Sequence of tasks or activities that produce desired outcomes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 11
    At a glance
    Powered by AI
    The key takeaways are that business processes span across functions and departments, and enterprise systems help integrate processes across the organization.

    Some reasons for using a functional organizational structure are that it divides the business into specialized departments or functions like sales, purchasing, accounting etc. which allows for expertise to develop in each function.

    A downside of the functional organizational structure is the 'silo effect' where each department only focuses on their functional objectives without considering overall business objectives. This can lead to lack of coordination between departments.

    Chapter 1

    Introduction to Business Process

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    Learning Objectives
    Explain the cross-functional nature of business

    processes and the use of enterprise systems to effectively and efficiently complete business processes
    1. 2. 3.

    Organizational Structure and Silo Effect Business Processes Cross Functions (cross-functional) Enterprise Systems

    Describe what a business process is, including steps

    involved in processes related to creating and delivering goods and services - buy, make, and sell
    1. 2. 3. 4. 5.

    Business Processes Key business processes in an organization. Procurement (buy) Processes Production (make) Processes Fulfillment (sell) Processes

    General understanding of a fictitious company used in

    the course
    2 Magal and Word Bicycle Inc. (GBI) Processes with ERP Systems | 2011 1. Global | Integrated Business

    Organizational Structure & Silo Effect


    Most common organizational structure is the

    functional structure where a business is divided into functions or departments (e.g., sales, purchasing, accounting etc.)
    What are some of the reasons for the use of the functional

    structure?

    Downside of the functional structure is the silo

    effect where departments or functions operate in isolation:


    Focusing on functional objectives without regard to process

    objectives (or organizational objectives of overall efficiency and effectiveness) Individual departments developed systems to serve their Magal and Word | Integrated Business Processes with ERP Systems | 2011 needs (e.g., sales and marketing system, purchasing

    Business Processes Cross Functions (cross-functional)

    Think of the cross functional dependencies to make a sale.


    4 Magal and Word | Integrated Business Processes with ERP Systems | 2011

    Enterprise Systems
    Enterprise systems (ES) such as SAP support

    end-to-end processes by:


    Having capability to meet the needs of the different

    functions or departments in a business Using a single integrated database


    Impossible to manage processes that are

    geographically dispersed without utilizing enterprise systems Enterprise systems are costly, but, justified by
    Increased profitability Increased productivity
    5 Magal and Word | Integrated Business Processes with ERP Systems | 2011 Competitive edge

    Business Processes
    Sequence of tasks or activities that produce

    desired outcomes

    Processes interrelated with other processes (see

    next slide) In this Chapter we will focus on three key processes:


    Procurement (buy) Production (make)
    6

    Fulfillment (sell)

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    Key Business Processes

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    A Procurement Process

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    A Production Process

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    A Fulfillment Process

    10

    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    Global Bicycle, Incorporated (GBI)


    Fictional company that will be used to illustrate

    key concepts and processes in:


    Magal textbook SAP hands-on exercises

    Background information on GBI is posted on

    Moodle
    Review the two GBI documents for general

    understanding of the business In the future use these two documents as references for Magal textbook and SAP exercises
    Magal and Word | Integrated Business Processes with ERP Systems | 2011

    11

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