Chapter 1 Enterprise system and Business Processes 1
Learning Objectives Upon successful completion of this chapter, you will be able to: • define the term enterprise system and business process ; • identify types of enterprise system; • explain the value of an enterprise resource planning (ERP) system; • explain how business process management and business process reengineering work; and • understand advantage of business process. 2
What is Enterprise System? Information system supports various business activities for internal operations (manufacturing, order processing, and human resource management) as well as external interaction with customers, suppliers, and business partners. Enterprise systems:- are information systems that allow companies to integrate information across operations on a company-wide basis. This are software's that provides solutions to an integrated business organization. Also known as Enterprise-wide information system . It mainly large scale application programming packages that bolster business processes, data streams, reporting, and data analytics in complex associations.
Cont.… Internally focused application - valuechain - the set of business activity. Two functional areas:- -Primary activity - Support activity Primary activity:- are functional areas within an organization that process inputs and produce outputs. -It contains -inbound logistics -operations $ manufacturing -outbound logistic -marketing and sales -customer service Web-based information systems such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM). 4
Cont. Support activity:- those activity that enable primary activity's to takeplace . This includes: -Infrastructure( hw $ sw ) -human resources( hiring, interview scheduling, payroll, benefits). -Technology development( sw selection, internet, intranet, extranet). -procurement(purchasing of goods and services required as inputs primary services). 5
Cont. Externally focused application Integrate internal applications with those outside suppliers, partners, and customers. This are two information activity's. This are:- Upstream information: information received from another organization. Downstream information: information sent to another organization. 6
Types of Enterprise System Enterprise Resource Planning(ERP)- is a software application with a centralized database that can be used to run an entire company. - Example - Baan -PeopleSoft -Oracle -SAP and JD Edwards ERP Implementation -module -vanilla version -customization -best practices - Business Process Reengineering (BPR) 7
Cont …… 8
Cont …. Customer Relationship Management(CRM):- allows to managing a company’s interaction with current and future customers. Advantages of CRM -Sales forced automation - Increase customer retention -Increase profitability -New opportunities for competitive advantage 9
Cont …… Supply Chain Management (SCM) - Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities. -Advantages of SCM: -Secure accurate SCM metrics -Facilitate visualization of SCM metrics -Improve productivity -Increase profitability -Help to integrate value systems 10
What is a business process? A process is a series of tasks that are completed in order to accomplish a goal. A business process, therefore, is a process that is focused on achieving a goal for a business. Processes are something that businesses go through every day in order to accomplish their mission. The better their processes, the more effective the business. 11
Business Process Integration Business Process Integration (BPI) is the synchronization of a company’s internal operations with those of its other divisions and its trading partners by connecting disparate systems in real-time. BPI allows for automation of business processes , integration of systems and services, and the secure sharing of data across numerous applications. Overcoming integration challenges allows organizations to connect systems internally and externally. Moreover, BPI allows for the automation of management , operational, and supporting processes. 12
Cont. Today, businesses of all sizes need a efficient integration solution to streamline processes between marketing , sales, customer service , and supply chain management , etc. 13
Cont. An effective business integration process model should help organizations with the following issues: Process Gaps: Business Process Management (BPM) integration reduces delays or errors. Needless Duplication: Business process integration avoids duplication that wastes resources and may result in data inconsistencies. Disparate Processes: Gain a better understanding of how different processes impact each other. Real-Time Visibility: Essential to effective business performance management programs. 14
Types of Business Process Integration (BPI) There are 3 different types of BPI: Process Trigger – Event happening in a certain system triggers a process in your BPM, as with the onboarding example. Pull – The data is automatically transferred from any given system to the BPM, allowing for participants in the process to make use of it. Push – Transferring the data from the BPM to a different system. So for example, if the process in question is hiring , it could be the transfer of the successful candidate’s data to the HRM system. 15
How to do BPR ? Organize around outcomes, not tasks. Have those who use the outcomes of the process perform the process. Subsume information-processing work into the real work that produces the information. Treat geographically dispersed resources as though they were centralized. Link parallel activities instead of integrating their results. Put the decision points where the work is performed, and build controls into the process. 16
Business process management The benefits of business process management include: • Empowering employees. • Built-in reporting. • Enforcing best practices. • Enforcing consistency. 17