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TEST BANK for Integrated Business Processes with ERP Systems 1st Edition Magal-complete study guide 2022-2023

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Chapter 1: Introduction to Business Process Learning Objectives After completing this chapter you will be able to: 1. Define the functional organizational structure, and explain why this struct... ure 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 6. Describe GBI’s organizational structure 7. Explain how the SAP system promotes an integrated approach to business processes Chapter Outline and Teaching Suggestions 1. The Functional Organizational Structure a. The Silo Effect b. Enterprise Systems Discuss how companies are organized, and explain that the functional structure is the most common organizational structure. You can use a university or company or a business school department that you are familiar with as an example. Point out that processes are cross- functional. Ask the question: Why is the functional structure so common? Figure 1-1 will assist you in explaining the cross-functional nature of business processes. Explain the silo effect and its negative implications for modern business organizations. You can give an example such as creating a sales order in sales and marketing with no integration or communication with inventory management or production. Point out that the nature of the functional organizational structure and the cross-functional nature of processes directly conflict with each other. Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end processes, productivity, competitive edge, monitoring and changing of business processes, etc.). 2. Business Processes a. Procurement - Buy b. Production - Make c. Fulfillment - Sell d. Material Planning - Plan e. Inventory and Warehouse Management - Store f. Lifecycle Data Management - Design g. Asset Management and Customer Service - Service h. Human Capital Management - People i. Project Management - Projects j. Financial Accounting - Track for Track for External Reporting k. Management Accounting - Track for Internal Reporting Define and explain a business process. Point out that organizations use many processes to achieve their objectives and they employ specific terms to identify the processes. Processes can be directly related or closely related to creating and delivering goods and services. Use Figure 1-2 to illustrate a process that is executed in response to a need (trigger). The process is carried out through a sequence of steps and results in an output. You can use an example such as ordering supplies. CONTINUED........ [Show More]

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