As more and more businesses around the world adopt enterprise systems, it becomes increasingly important for company to utilyze a more process-centric perspective that refl ects the realities of the modern business environment in which they will work. Because business operations and enterprise systems are so tightly integrated, we have designed Integrated Business Processes with ERP Systems to reflect the ways in which real-world business processes are managed and executed in the world’s leading enterprise resource planning (ERP) system, regardless of their functional discipline, will be able to apply the real-world concepts discussed in this text immediately upon entering the workforce and will be better prepared to succeed in their careers
Integrated Business Processes with ERP Systems approaches ERP features using an integrated process perspective of the fi rm. Each process is discussed within the context of its execution across functional areas in the company, with special emphasis on the role of data in managing the coordination between activities and groups. Business will gain a deep appreciation for the role of enterprise systems in efficiently managing processes from multiple functional perspective
ERP software allows teams to integrate their resources into a single unified process. Instead of paying for individual subscriptions for Supply Chain Management, Core HR, CRM, Shipping and Inventory Systems, teams pay for a single service that performs each of these functions in a centralized system. Depending on the size and complexity of the company, it may be possible to reduce the number of software system subscriptions.
Enterprise companies often gain early knowledge of ERP systems because of the sheer need, but sometimes rapid growth leaves little time for software improvement. Enterprises that are new to Enterprise Resource Planning should pay particular attention to the fact that the software covers as many aspects of the business as possible. ERP software for enterprise corporations can come at a steep price, so make it happen.
Although most companies maintain vertical (or functional) silos to compartmentalize their operational units, the integrated business processes that companies use to perform their work cut across these silos horizontally. Business processes, such as the procurement and fulfillment processes , consist of activities that occur in different, seemingly unrelated functions or departments. In other words, these processes are cross-functional, meaning no single group or function is responsible for their execution. Rather, it is a shared responsibility among many functional areas. The cross-functional nature of business processes. For a process to be successfully completed, then, the company must rely on each functional group to execute its individual steps in the process in a coordinated way, which, as we shall see, may not be an easy thing to accomplish
The functional structure served organizations well for a number of years because it enabled them to cope with the challenges generated by their rapid growth. Over time, however, this system developed a serious drawback. They essentially complete their part of the process, hand it off to the next person, and then proceed to the next task. By focusing so narrowly on their specific tasks, they lose sight of the “big picture” of the larger process, be it procurement, fulfillment, or any number of other common business processes. This tendency is commonly referred to as the silo effect because workers complete their tasks in their functional “silos” without regard to the consequences for the other components in the process.