BUSINESS PROCESS

INTEGRATION AND
ENTERPRISE RESOURCE
PLANNING SYSTEMS

OPER8030
CHAPTER 1 – INTRODUCTION TO BUSINESS PROCESS
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?
THE FUNCTIONAL STRUCTURE

SAP functional location is a multi-level, hierarchal

structure that is part of a technical structure.

SAP functional locations are created for execution and

recording of maintenance tasks, to control the cost over
specific area of plant and to find the condition of an
operating system.
BIG PROBLEM – THE 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?
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
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
A GENERIC BUSINESS PROCESS

KEY BUSINESS PROCESSES

KEY BUSINESS PROCESSES
PROCUREMENT PROCESS EXAMPLE
PRODUCTION PROCESS EXAMPLE
FULFILLMENT PROCESS EXAMPLE
INVENTORY AND WAREHOUSE
MANAGEMENT PROCESS
ASSET MANAGEMENT PROCESS, EXAMPLE
CUSTOMER SERVICE PROCESS, EXAMPLE
PROJECT MANAGEMENT PROCESS,
EXAMPLE
KEY BUSINESS PROCESSES