Introduction To Business Process: Magal and Word - Integrated Business Processes With ERP Systems - © 2011
Introduction To Business Process: Magal and Word - Integrated Business Processes With ERP Systems - © 2011
1 Magal and Word | Integrated Business Processes with ERP Systems | © 2011
Learning Objectives
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.
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Learning Objectives (Continued)
6. Describe GBI’s organizational structure.
7. Explain how the SAP system promotes an integrated
approach to business processes
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Functional Organizational Structure
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?
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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The Functional Structure
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Silo Effect
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?
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Enterprise Systems
Impossible to manage processes that are geographically
dispersed without utilizing modern information systems
Enterprise systems (ES) support end-to-end processes
Investments in ES have provided
Increased profitability
Increased productivity
Competitive edge
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Business Processes
Sequence of tasks or activities that produce desired outcomes
Key processes
Procurement
Fulfillment
Production
Processes interrelated with other processes
Processes may have sub-processes
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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A Generic Business Process
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
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Key Business Processes
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A Procurement Process
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A Production Process
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A Fulfillment Process
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Inventory and Warehouse Management
Process
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An Asset Management Process
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A Customer Service Process
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A Project Management Process
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Global Bicycle, Incorporated (GBI)
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
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GBI Organizational Structure
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