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03 Business Structure Student Version

Business Structure

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65 views

03 Business Structure Student Version

Business Structure

Uploaded by

junkyard
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1/27/2010

BUSINESS STRUCTURE: FUNCTIONS AND PROCESSES

Spring 2010

Fundamentals of Business Information Systems

Objectives
Understand functional structure of medium to large companies. Understand data flows between organizational areas. Understand fundamental business functions and processes.

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Fundamental purpose of a business


Sustain ongoing business operations by meeting a need of a targeted customer base in a mutually beneficial manner.
Maintaining or enhancing investment of owners.

Subject to the regulation of governmental authority. Recognizing responsibility to various stakeholders. Often, having a profit focus.

Functional areas of a business


Marketing and Sales Supply Chain Management Accounting and Finance Human Resources Administration and IT Support Research and Development

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Marketing and Salescommon functions

Place

Product

Promotion

Price

Supply Chain Managementcommon functions

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Accounting and Financecommon functions

Human Resourcescommon functions

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Administration and IT Supportcommon functions

Research and Developmentcommon functions

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Functional Areas of Operation


Functional areas are interdependent. Better integration of functional areas leads to improvements in communication, workflow, and overall efficiency. Information system (IS): Computers, people, procedures, and software that store, organize, and deliver information.

Business Process
A collection of activities each taking in input and creating output performed by 1 or more functional areas that creates value for a customer. A distinct method of structuring business processes: Business Model. Business Model:

Encompasses what a business is doing, how, and why.

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Business Processes and ERP


Business Processes cut across functional departments and require coordination. Enterprise Resource Planning (ERP) is an effort to establish a highly integrated, cross-functional business structure based on information sharing among various business process participants.
Focus is on maximizing efficiency and use of resources. In modern organizations likely to be mediated and managed by softwareintegrated information system.

Isolated Kingdoms

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Process Integration
Purchase Requisition Determine Needed Materials Sales Order Entry Check Availability Purchase Order

Procurement Process

Goods Receipt

Receipt of Payment

Sales Order Pick Process Materials


Payment to Vendor Invoice Customer Post Goods Issue

Invoice Receipt

Based on material in Intro to ERP, SAP University Alliances Curriculum

Process Integration
Purchase Order Purchase Requisition Convert Production Proposal Schedule Procurement and Release Process Run MPS Goods w/MRP Issue Check Availability Goods Receipt

Production Process Completion


Confirmation Quality Inspection Order Settlement Goods Receipt Payment to Vendor

Invoice Receipt

Sales Order Entry Receipt of Payment

Sales Order Pick Process Materials


Post Goods Issue

Invoice Customer

Based on material in Intro to ERP, SAP University Alliances Curriculum

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Process View of Business


Customer Order Process

Accounting Function

Purchasing Function

Production Function

Sales Function

Material Order Process

Taken from Concepts in Enterprise Resource Planning by Monk and Wagner

Functional Area Information Exchange

Taken from Concepts in Enterprise Resource Planning by Monk and Wagner

Logistics Function

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Functional Area Information Exchange

Taken from Concepts in Enterprise Resource Planning by Monk and Wagner

Functional Area Information Exchange

Taken from Concepts in Enterprise Resource Planning by Monk and Wagner

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1/27/2010

Functional Area Information Exchange

Copyrights
Presentation prepared by and copyright of Dr. Tony Pittarese, East Tennessee State University, Computer and Information Sciences Dept. ([email protected]) Podcast lecture related to this presentation available via ETSU iTunesU.
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