The document discusses the key functional areas of business - marketing and sales, supply chain management, accounting and finance, and human resources. It explains that each functional area performs specific activities and requires data from the other areas to operate effectively. An integrated information system is important because it allows all functional areas to share a common database and have access to accurate, real-time data needed to coordinate business processes across the company.
Understanding Business Function and Business ProcessSeta Wicaksana
Enterprise Resource Planning (ERP) programs: Core software used by companies to coordinate information in every area of business
Help manage companywide business processes
Use common database and shared management reporting tools
Business process: Collection of activities that takes some input and creates an output that is of value to the customer
Chapter 1: Business Functions, Processes, and Data RequirementsQuang Ngoc
The document discusses the key functional areas of businesses - marketing/sales, supply chain management, accounting/finance, and human resources. It explains that each functional area produces and requires certain types of data. An integrated information system is important for sharing data between functional areas to support business processes and make them more efficient. ERP software provides this integration through a single database and helps companies manage information across all business functions.
The document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It describes the functions and tasks of each area, and their interdependencies in terms of sharing data and integrating information systems. Effective business processes require coordination between functional areas using integrated information systems like ERP software that provide a common database.
The document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It explains that each functional area requires data from the others to perform their operations and business processes. An integrated information system, such as one provided by enterprise resource planning (ERP) software, allows the different functional areas to share a common database and ensures accurate and timely sharing of data between areas. This coordination of information is important for the success of the company's business processes and overall operations.
Business Functions & Business Processes in ERPTom Matys
This document discusses the key functional areas of business - marketing and sales, supply chain management, accounting and finance, and human resources. It defines business processes as collections of activities that take inputs and create outputs of value to customers. The document differentiates business functions from processes. It explains that enterprise resource planning (ERP) software helps coordinate information across functional areas through a shared database. Each functional area is described in terms of its functions, needed data inputs, and produced outputs to demonstrate how integrated information systems allow effective sharing of data.
The document discusses transaction processing systems (TPS), enterprise resource planning (ERP) systems, and customer relationship management (CRM). It describes how TPS support basic business functions like order processing and accounting. ERP systems provide integrated software to manage operations across an entire organization. CRM systems help companies manage relationships with customers and improve marketing, sales, and customer service.
This document discusses how information systems support various business functions like accounting, finance, engineering, supply chain management, and human resources. It explains how systems increase effectiveness and efficiency, and how tools like ERP systems integrate across business functions and organizations to improve information sharing in supply chains.
An enterprise is a group with common goals and resources to achieve those goals. Businesses have departments that communicate and exchange data. ERP systems integrate business functions like marketing, supply chain, accounting, and HR into a single system. This allows processes like order to cash to flow seamlessly across departments. ERP replaces legacy functional systems and centralized data to increase efficiency and provide real-time information. Challenges include the difficulty of implementation and requiring changes to business processes. ERP careers include functional, technical, and techno-functional consulting roles.
Understanding Business Function and Business ProcessSeta Wicaksana
Enterprise Resource Planning (ERP) programs: Core software used by companies to coordinate information in every area of business
Help manage companywide business processes
Use common database and shared management reporting tools
Business process: Collection of activities that takes some input and creates an output that is of value to the customer
Chapter 1: Business Functions, Processes, and Data RequirementsQuang Ngoc
The document discusses the key functional areas of businesses - marketing/sales, supply chain management, accounting/finance, and human resources. It explains that each functional area produces and requires certain types of data. An integrated information system is important for sharing data between functional areas to support business processes and make them more efficient. ERP software provides this integration through a single database and helps companies manage information across all business functions.
The document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It describes the functions and tasks of each area, and their interdependencies in terms of sharing data and integrating information systems. Effective business processes require coordination between functional areas using integrated information systems like ERP software that provide a common database.
The document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It explains that each functional area requires data from the others to perform their operations and business processes. An integrated information system, such as one provided by enterprise resource planning (ERP) software, allows the different functional areas to share a common database and ensures accurate and timely sharing of data between areas. This coordination of information is important for the success of the company's business processes and overall operations.
Business Functions & Business Processes in ERPTom Matys
This document discusses the key functional areas of business - marketing and sales, supply chain management, accounting and finance, and human resources. It defines business processes as collections of activities that take inputs and create outputs of value to customers. The document differentiates business functions from processes. It explains that enterprise resource planning (ERP) software helps coordinate information across functional areas through a shared database. Each functional area is described in terms of its functions, needed data inputs, and produced outputs to demonstrate how integrated information systems allow effective sharing of data.
The document discusses transaction processing systems (TPS), enterprise resource planning (ERP) systems, and customer relationship management (CRM). It describes how TPS support basic business functions like order processing and accounting. ERP systems provide integrated software to manage operations across an entire organization. CRM systems help companies manage relationships with customers and improve marketing, sales, and customer service.
This document discusses how information systems support various business functions like accounting, finance, engineering, supply chain management, and human resources. It explains how systems increase effectiveness and efficiency, and how tools like ERP systems integrate across business functions and organizations to improve information sharing in supply chains.
An enterprise is a group with common goals and resources to achieve those goals. Businesses have departments that communicate and exchange data. ERP systems integrate business functions like marketing, supply chain, accounting, and HR into a single system. This allows processes like order to cash to flow seamlessly across departments. ERP replaces legacy functional systems and centralized data to increase efficiency and provide real-time information. Challenges include the difficulty of implementation and requiring changes to business processes. ERP careers include functional, technical, and techno-functional consulting roles.
This chapter discusses how ERP systems can help solve accounting problems by integrating financial and managerial accounting data in real time. It describes the benefits of ERP systems for accounting activities like credit management, product cost analysis, financial reporting and management reporting. ERP systems ensure accurate and up-to-date accounting data is available across the organization for improved decision making.
This document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It explains that each functional area relies on data from the other areas and that integrated information systems using a common database, like ERP software, are important for sharing data between areas efficiently. The document provides details on the specific inputs and outputs of each functional area and how they are interdependent. It emphasizes the importance of viewing business operations through the lens of business processes that cut across functional areas rather than focusing only on individual functions.
The document discusses key topics in organizational information systems, including:
1) How organizational structure, culture, and change affect the implementation of information systems. Different structures like traditional, project, and virtual are described.
2) The importance of using information systems to gain competitive advantages like lower costs and improved customer service. Strategies for seeking competitive advantage are outlined.
3) Career opportunities in the information systems field, the roles and functions of IS personnel, and skills needed like communication and teamwork.
This document discusses different types of functional business information systems that support key business functions like marketing, manufacturing, human resources, accounting, finance, and supply chain management. It provides examples of information systems used in each functional area, such as marketing information systems, manufacturing resource planning systems, human resource management systems, accounting systems, financial management systems, and enterprise resource planning systems. The document also covers cross-functional e-business systems that integrate and share information across the entire business organization.
This document discusses different types of functional business information systems that support key business functions like marketing, manufacturing, human resources, accounting, finance, and supply chain management. It provides examples of information systems used in each functional area, such as marketing information systems, manufacturing resource planning, human resource management systems, accounting systems, financial management systems, enterprise resource planning, supply chain management systems, and customer relationship management systems. The document also discusses transaction processing systems that capture and process data related to business transactions.
This document provides an overview of enterprise resource planning (ERP) systems. It defines key terms like enterprise, resources, planning, and ERP. It describes how ERP systems integrate business functions like production, purchasing, sales, finance, and HR. The document discusses the evolution of ERP from earlier systems for inventory management and MRP. It outlines common myths about ERP implementation. Finally, it discusses the advantages and importance of ERP for companies in improving processes, decision making, and overall business performance.
This document provides an overview of key principles and learning objectives from Chapter 2 of the textbook "Principles of Information Systems, Tenth Edition". It discusses how organizational structure, culture, and change affect information systems implementation. It also explains how businesses seek competitive advantage through lower costs, increased profits, improved service, and new systems. Finally, it defines important terms like organizational structure, culture, competitive advantage, and strategic planning.
This document discusses enterprise systems and transaction processing systems. It defines enterprise systems as ensuring information sharing across business functions and management levels. Transaction processing systems process detailed transaction data and maintain business records. The document outlines traditional transaction processing methods like batch and online processing. It also discusses enterprise resource planning systems, which integrate business functions, and their advantages and disadvantages compared to traditional systems.
This document discusses customer relationship management (CRM) systems and supply chain management (SCM) systems. It defines CRM as managing a company's interactions with current and potential customers across different channels. It describes operational CRM systems that support marketing, sales, and customer service, and analytical CRM systems that analyze customer data. It also discusses SCM, defining supply chains and explaining how information systems help manage relationships with suppliers. The document outlines the objectives and contents to be covered around CRM and SCM systems.
This document summarizes key topics from Chapter 2 of the textbook "Principles of Information Systems". It discusses how organizational structure, culture, and change affect information systems implementation. It also defines competitive advantage and factors that lead firms to seek it, such as threats from rivals and new entrants. Finally, it outlines various careers in the information systems field and skills needed to work as an IS professional, including communication skills.
The document summarizes key topics from a chapter on information systems in organizations, including how organizational structure, culture, and change affect IS implementation. It also discusses competitive advantage, return on investment for measuring IS value, and careers in the information systems field.
The document discusses customer relationship management (CRM) and supply chain management. It defines CRM and describes operational, analytical, and other types of CRM systems. It then defines the three components and three flows that comprise a supply chain. Finally, it discusses how information technology can support supply chain management, including through electronic data interchange, extranets, and portals.
This document discusses various topics related to enterprise resource planning systems and related technologies. It defines business process reengineering and describes transaction processing systems, management information systems, decision support systems, and executive information systems. It also explains concepts like data warehousing, data mining, and online analytical processing. The document emphasizes that business process reengineering and enterprise resource planning systems can be used together by organizations to improve performance.
The document provides an overview of chapter objectives and key concepts from a textbook on information systems. It discusses the difference between data, information, and knowledge and various types of business information systems like transaction processing systems, enterprise resource planning systems, and decision support systems. It also summarizes the systems development process, competitive strategy, careers in information systems, and global challenges.
1. The document discusses different types of information systems used in business including transaction processing systems, management information systems, decision support systems, enterprise resource planning systems, supply chain management systems, and customer relationship management systems.
2. It explains how information systems can enhance business processes by increasing efficiency, automating manual steps, enabling new processes, and supporting collaboration.
3. Key frameworks are presented including Michael Porter's value chain model for understanding how information systems can help firms achieve competitive advantage through primary and support business activities.
Presentation on ERP - Recent advances in Supply chain management - Vinod Nerellavinodnerella
The document discusses recent advances in manufacturing and supply chain management. It covers topics like challenges in manufacturing and supply chains, the evolution of ERP systems from MRP to modern ERP, limitations of current ERP systems, and future directions for ERP including more flexible, web-based solutions like Odoo. The document is presented by Vinod Kumar Nerella and provides an overview of key concepts as well as contact information.
Enterprise Resource Planning (ERP) systems aim to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP systems evolved from materials requirements planning (MRP) systems used in manufacturing in the 1960s-1970s and were further developed to integrate other functions like finance in the 1980s. In the 1990s, large comprehensive ERP systems like SAP R/3 emerged that integrated key modules for major business functions and processes across an entire organization.
The document provides an overview of chapter presentations for an information systems textbook. It states that the presentations cover the chapter objectives, list all objectives at the beginning of each presentation, and can be customized for class needs. Some figures from the chapters are also included.
This chapter discusses accounting in ERP systems. It describes the differences between financial and managerial accounting, and identifies problems in unintegrated systems like inaccurate or outdated data. An ERP system can help solve these problems through a centralized database. The chapter explains how an ERP system handles accounting activities and ensures real-time updating of the general ledger. It also discusses how ERP systems improve operational decisions, product profitability analysis, and financial reporting and consolidation for companies with subsidiaries. Finally, it covers how ERP systems help comply with regulations like Sarbanes-Oxley through controls and archiving.
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women MagazineCIOWomenMagazine
In this article, we will dive into the extraordinary life of Ellen Burstyn, where the curtains rise on a story that's far more attractive than any script.
Satta matka fixx jodi panna all market dpboss matka guessing fixx panna jodi kalyan and all market game liss cover now 420 matka office mumbai maharashtra india fixx jodi panna
Call me 9040963354
WhatsApp 9040963354
This chapter discusses how ERP systems can help solve accounting problems by integrating financial and managerial accounting data in real time. It describes the benefits of ERP systems for accounting activities like credit management, product cost analysis, financial reporting and management reporting. ERP systems ensure accurate and up-to-date accounting data is available across the organization for improved decision making.
This document discusses the key functional areas of a business - marketing and sales, supply chain management, accounting and finance, and human resources. It explains that each functional area relies on data from the other areas and that integrated information systems using a common database, like ERP software, are important for sharing data between areas efficiently. The document provides details on the specific inputs and outputs of each functional area and how they are interdependent. It emphasizes the importance of viewing business operations through the lens of business processes that cut across functional areas rather than focusing only on individual functions.
The document discusses key topics in organizational information systems, including:
1) How organizational structure, culture, and change affect the implementation of information systems. Different structures like traditional, project, and virtual are described.
2) The importance of using information systems to gain competitive advantages like lower costs and improved customer service. Strategies for seeking competitive advantage are outlined.
3) Career opportunities in the information systems field, the roles and functions of IS personnel, and skills needed like communication and teamwork.
This document discusses different types of functional business information systems that support key business functions like marketing, manufacturing, human resources, accounting, finance, and supply chain management. It provides examples of information systems used in each functional area, such as marketing information systems, manufacturing resource planning systems, human resource management systems, accounting systems, financial management systems, and enterprise resource planning systems. The document also covers cross-functional e-business systems that integrate and share information across the entire business organization.
This document discusses different types of functional business information systems that support key business functions like marketing, manufacturing, human resources, accounting, finance, and supply chain management. It provides examples of information systems used in each functional area, such as marketing information systems, manufacturing resource planning, human resource management systems, accounting systems, financial management systems, enterprise resource planning, supply chain management systems, and customer relationship management systems. The document also discusses transaction processing systems that capture and process data related to business transactions.
This document provides an overview of enterprise resource planning (ERP) systems. It defines key terms like enterprise, resources, planning, and ERP. It describes how ERP systems integrate business functions like production, purchasing, sales, finance, and HR. The document discusses the evolution of ERP from earlier systems for inventory management and MRP. It outlines common myths about ERP implementation. Finally, it discusses the advantages and importance of ERP for companies in improving processes, decision making, and overall business performance.
This document provides an overview of key principles and learning objectives from Chapter 2 of the textbook "Principles of Information Systems, Tenth Edition". It discusses how organizational structure, culture, and change affect information systems implementation. It also explains how businesses seek competitive advantage through lower costs, increased profits, improved service, and new systems. Finally, it defines important terms like organizational structure, culture, competitive advantage, and strategic planning.
This document discusses enterprise systems and transaction processing systems. It defines enterprise systems as ensuring information sharing across business functions and management levels. Transaction processing systems process detailed transaction data and maintain business records. The document outlines traditional transaction processing methods like batch and online processing. It also discusses enterprise resource planning systems, which integrate business functions, and their advantages and disadvantages compared to traditional systems.
This document discusses customer relationship management (CRM) systems and supply chain management (SCM) systems. It defines CRM as managing a company's interactions with current and potential customers across different channels. It describes operational CRM systems that support marketing, sales, and customer service, and analytical CRM systems that analyze customer data. It also discusses SCM, defining supply chains and explaining how information systems help manage relationships with suppliers. The document outlines the objectives and contents to be covered around CRM and SCM systems.
This document summarizes key topics from Chapter 2 of the textbook "Principles of Information Systems". It discusses how organizational structure, culture, and change affect information systems implementation. It also defines competitive advantage and factors that lead firms to seek it, such as threats from rivals and new entrants. Finally, it outlines various careers in the information systems field and skills needed to work as an IS professional, including communication skills.
The document summarizes key topics from a chapter on information systems in organizations, including how organizational structure, culture, and change affect IS implementation. It also discusses competitive advantage, return on investment for measuring IS value, and careers in the information systems field.
The document discusses customer relationship management (CRM) and supply chain management. It defines CRM and describes operational, analytical, and other types of CRM systems. It then defines the three components and three flows that comprise a supply chain. Finally, it discusses how information technology can support supply chain management, including through electronic data interchange, extranets, and portals.
This document discusses various topics related to enterprise resource planning systems and related technologies. It defines business process reengineering and describes transaction processing systems, management information systems, decision support systems, and executive information systems. It also explains concepts like data warehousing, data mining, and online analytical processing. The document emphasizes that business process reengineering and enterprise resource planning systems can be used together by organizations to improve performance.
The document provides an overview of chapter objectives and key concepts from a textbook on information systems. It discusses the difference between data, information, and knowledge and various types of business information systems like transaction processing systems, enterprise resource planning systems, and decision support systems. It also summarizes the systems development process, competitive strategy, careers in information systems, and global challenges.
1. The document discusses different types of information systems used in business including transaction processing systems, management information systems, decision support systems, enterprise resource planning systems, supply chain management systems, and customer relationship management systems.
2. It explains how information systems can enhance business processes by increasing efficiency, automating manual steps, enabling new processes, and supporting collaboration.
3. Key frameworks are presented including Michael Porter's value chain model for understanding how information systems can help firms achieve competitive advantage through primary and support business activities.
Presentation on ERP - Recent advances in Supply chain management - Vinod Nerellavinodnerella
The document discusses recent advances in manufacturing and supply chain management. It covers topics like challenges in manufacturing and supply chains, the evolution of ERP systems from MRP to modern ERP, limitations of current ERP systems, and future directions for ERP including more flexible, web-based solutions like Odoo. The document is presented by Vinod Kumar Nerella and provides an overview of key concepts as well as contact information.
Enterprise Resource Planning (ERP) systems aim to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP systems evolved from materials requirements planning (MRP) systems used in manufacturing in the 1960s-1970s and were further developed to integrate other functions like finance in the 1980s. In the 1990s, large comprehensive ERP systems like SAP R/3 emerged that integrated key modules for major business functions and processes across an entire organization.
The document provides an overview of chapter presentations for an information systems textbook. It states that the presentations cover the chapter objectives, list all objectives at the beginning of each presentation, and can be customized for class needs. Some figures from the chapters are also included.
This chapter discusses accounting in ERP systems. It describes the differences between financial and managerial accounting, and identifies problems in unintegrated systems like inaccurate or outdated data. An ERP system can help solve these problems through a centralized database. The chapter explains how an ERP system handles accounting activities and ensures real-time updating of the general ledger. It also discusses how ERP systems improve operational decisions, product profitability analysis, and financial reporting and consolidation for companies with subsidiaries. Finally, it covers how ERP systems help comply with regulations like Sarbanes-Oxley through controls and archiving.
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women MagazineCIOWomenMagazine
In this article, we will dive into the extraordinary life of Ellen Burstyn, where the curtains rise on a story that's far more attractive than any script.
Satta matka fixx jodi panna all market dpboss matka guessing fixx panna jodi kalyan and all market game liss cover now 420 matka office mumbai maharashtra india fixx jodi panna
Call me 9040963354
WhatsApp 9040963354
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
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Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
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During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?
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How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
9781423901792_PPT_ch01.ppt
1. About the Presentations
• The presentations cover the objectives found in the
opening of each chapter.
• All chapter objectives are listed in the beginning of
each presentation.
• You may customize the presentations to fit your
class needs.
• Some figures from the chapters are included. A
complete set of images from the book can be found
on the Instructor Resources disc.
1
3. Concepts in Enterprise Resource Planning, Third Edition 3
Objectives
After completing this chapter, you will be able to:
• Name the main functional areas of operation used
in business
• Differentiate a business process from a business
function
• Identify the kinds of data that each main functional
area produces
• Identify the kinds of data that each main functional
area needs
• Define integrated information systems and explain
why they are important
4. Concepts in Enterprise Resource Planning, Third Edition 4
Introduction
• Enterprise Resource Planning (ERP) programs:
Core software used by companies to coordinate
information in every area of business
– Help manage companywide business processes
– Use common database and shared management
reporting tools
• Business process: Collection of activities that
takes some input and creates an output that is of
value to the customer
5. Functional Areas and Business
Processes
• To understand ERP, you must understand how a
business works
– Functional areas of operation
– Business processes
Concepts in Enterprise Resource Planning, Third Edition 5
6. Concepts in Enterprise Resource Planning, Third Edition 6
Functional Areas of Operation
• Marketing and Sales (M/S)
• Supply Chain Management (SCM)
• Accounting and Finance (A/F)
• Human Resources (HR)
• Business functions: Activities specific to a
functional area of operation
7. Concepts in Enterprise Resource Planning, Third Edition 7
Figure 1-1 Examples of functional areas of operation and their business
functions
Functional Areas of Operation (cont’d.)
8. Concepts in Enterprise Resource Planning, Third Edition 8
Functional Areas of Operation (cont’d.)
• Functional areas are interdependent
– Each requires data from the others
• Better integration of functional areas leads to
improvements in communication, workflow, and
success of company
• Information system (IS): Computers, people,
procedures, and software that store, organize, and
deliver information
9. Concepts in Enterprise Resource Planning, Third Edition 9
Business Processes
• Collection of activities that takes one or more kinds
of input and creates an output that is of value to
customer
– Customer can be traditional external customer or
internal customer
• Thinking in terms of business processes helps
managers to look at their organization from the
customer’s perspective
10. Concepts in Enterprise Resource Planning, Third Edition 10
Business Processes (cont’d.)
Figure 1-2 Sample business processes related to the sale of a
personal computer
11. Concepts in Enterprise Resource Planning, Third Edition 11
Business Processes (cont’d.)
• Businesses must always consider customer’s
viewpoint in any transaction
• Successful customer interaction
– Customer (either internal or external) is not required
to interact with each business function involved in
the process
• Successful business managers view business
operations from the perspective of a satisfied
customer
12. Concepts in Enterprise Resource Planning, Third Edition 12
Business Processes (cont’d.)
• Sharing data effectively and efficiently between and
within functional areas leads to more efficient
business processes
• Integrated information systems: Systems in
which functional areas share data
13. Concepts in Enterprise Resource Planning, Third Edition 13
Business Processes (cont’d.)
Figure 1-3 A process view of business
14. Concepts in Enterprise Resource Planning, Third Edition 14
Business Processes (cont’d.)
• Businesses take inputs (resources) and transform
these inputs into goods and services for customers
– Inputs: Material, people, equipment
• Managing inputs and business processes
effectively requires accurate and up-to-date
information
15. Concepts in Enterprise Resource Planning, Third Edition 15
Functional Areas and Business
Processes of a Very Small Business
• Example: A fictitious lemonade stand
– Examine business processes of the lemonade stand
– See why coordination of functional areas helps
achieve efficient and effective business processes
– Look at how integration of the information system
improves the business
16. Concepts in Enterprise Resource Planning, Third Edition 16
Marketing and Sales
• Functions of Marketing and Sales
– Developing products
– Determining pricing
– Promoting products to customers
– Taking customers’ orders
– Helping create a sales forecast
17. Concepts in Enterprise Resource Planning, Third Edition 17
Marketing and Sales (cont’d.)
• Marketing and Sales tasks for the lemonade stand
– Formal recordkeeping not required
– Need to keep track of customers
– Product development can be done informally
– Good repeat customers allowed to charge
purchases—up to a point
• Records must show how much each customer owes
and his or her available credit
18. Concepts in Enterprise Resource Planning, Third Edition 18
Supply Chain Management
• Functions within Supply Chain Management
– Making the lemonade (manufacturing/production)
– Buying raw materials (purchasing)
• Production planning requires sales forecasts from
M/S functional area
– Sales forecasts: Analyses that attempt to predict
the future sales of a product
19. Concepts in Enterprise Resource Planning, Third Edition 19
Supply Chain Management (cont’d.)
• Production plans used to develop requirements for
raw materials and packaging
– Raw materials: Bottled spring water, fresh lemons,
artificial sweetener, raw sugar
– Packaging: Cups, straws, napkins
• SCM and M/S must choose a recipe for each
lemonade product sold
20. Concepts in Enterprise Resource Planning, Third Edition 20
Accounting and Finance
• Functions within Accounting and Finance
– Recording raw data about transactions (including
sales), raw material purchases, payroll, and receipt
of cash from customers
• Raw data: Numbers collected from those
operations, without any manipulation, calculation,
or arrangement for presentation
21. Concepts in Enterprise Resource Planning, Third Edition 21
Accounting and Finance (cont’d.)
• Data from Accounting and Finance used by
Marketing and Sales and Supply Chain
Management
– Sales records are important component of sales
forecast
– Sales forecast is used in making staffing decisions
and in production planning
– Records from accounts receivable used to monitor
the overall credit-granting policy of the lemonade
stand
22. Concepts in Enterprise Resource Planning, Third Edition 22
Human Resources
• Functions of Human Resources
– Recruit, train, evaluate, and compensate employees
• HR uses sales forecasts developed by the
individual departments to plan personnel needs
• Systems integrated using ERP software provide
the data sharing necessary between functional
areas
23. Concepts in Enterprise Resource Planning, Third Edition 23
Functional Area Information Systems
• Potential inputs and outputs for each functional
area described next
• Note the kinds of data needed by each area and
how people use the data
• Information systems maintain relationships
between all functional areas and processes
24. Concepts in Enterprise Resource Planning, Third Edition 24
Marketing and Sales
• Needs information from all other functional areas
• Customers communicate orders to M/S in person
or by telephone, e-mail, fax, the Web, etc.
• M/S has a role in determining product prices
– Pricing might be determined based on a product’s
unit cost, plus some percentage markup
– Requires information from Accounting and Finance,
and Supply Chain Management data
25. Concepts in Enterprise Resource Planning, Third Edition 25
Marketing and Sales (cont’d.)
Figure 1-4 The Marketing and Sales functional area exchanges data with
customers and with the Human Resources, Accounting and Finance, and
Supply Chain Management functional areas
26. Concepts in Enterprise Resource Planning, Third Edition 26
Marketing and Sales (cont’d.)
• M/S needs to interact with Human Resources to
exchange information on hiring needs, legal
requirements, etc.
• Inputs for M/S
– Customer data
– Order data
– Sales trend data
– Per-unit cost
– Travel expense company policy
27. Concepts in Enterprise Resource Planning, Third Edition 27
Marketing and Sales (cont’d.)
• Outputs for M/S
– Sales strategies
– Product pricing
– Employment needs
28. Concepts in Enterprise Resource Planning, Third Edition 28
Supply Chain Management
• Needs information from various functional areas
• Production plans based on information about
product sales (actual and projected) that comes
from Marketing and Sales
• With accurate data about required production
levels:
– Raw material and packaging can be ordered as
needed
– Inventory levels can be kept low, saving money
29. Concepts in Enterprise Resource Planning, Third Edition 29
Supply Chain Management (cont’d.)
• Supply Chain Management data and records can:
– Provide data needed by Accounting and Finance to
determine how much of each resource was used
– Support the M/S function by providing information
about what has been produced and shipped
• Supply Chain Management interacts in some ways
with Human Resources
30. Concepts in Enterprise Resource Planning, Third Edition 30
Supply Chain Management (cont’d.)
Figure 1-5 The Supply Chain Management functional area exchanges data
with suppliers and with the Human Resources, Marketing and Sales, and
Accounting and Finance functional areas
31. Concepts in Enterprise Resource Planning, Third Edition 31
Supply Chain Management (cont’d.)
• Inputs for SCM
– Product sales data
– Production plans
– Inventory levels
– Layoff and recall company policy
32. Concepts in Enterprise Resource Planning, Third Edition 32
Supply Chain Management (cont’d.)
• Outputs for SCM
– Raw material orders
– Packaging orders
– Resource expenditure data
– Production and inventory reports
– Hiring information
33. Concepts in Enterprise Resource Planning, Third Edition 33
Accounting and Finance
• Needs information from all other functional areas
• A/F personnel:
– Record company’s transactions in the books of
account
– Record accounts payable when raw materials are
purchased and cash outflows when they pay for
materials
– Summarize transaction data to prepare reports
about company’s financial position and profitability
34. Concepts in Enterprise Resource Planning, Third Edition 34
Accounting and Finance (cont’d.)
• People in other functional areas provide data to A/F
– M/S provides sales data
– SCM provides production and inventory data
– HR provides payroll and benefit expense data
• M/S personnel require data from A/F to evaluate
customer credit
35. Concepts in Enterprise Resource Planning, Third Edition 35
Accounting and Finance (cont’d.)
Figure 1-6 The Accounting and Finance functional area exchanges data with
customers and with the Human Resources, Marketing and Sales, and Supply
Chain Management functional areas
36. Concepts in Enterprise Resource Planning, Third Edition 36
Accounting and Finance (cont’d.)
• Inputs for A/F
– Payments from customers
– Accounts receivable data
– Accounts payable data
– Sales data
– Production and inventory data
– Payroll and expense data
37. Concepts in Enterprise Resource Planning, Third Edition 37
Accounting and Finance (cont’d.)
• Outputs for A/F
– Payments to suppliers
– Financial reports
– Customer credit data
38. Concepts in Enterprise Resource Planning, Third Edition 38
Human Resources
• HR needs information from the other departments
• Tasks related to employee hiring, benefits, training,
and government compliance are all responsibilities
of HR
• HR needs accurate forecasts of personnel needs
from all functional units
• HR needs to know what skills are needed to
perform a particular job and how much the
company can afford to pay employees
39. Concepts in Enterprise Resource Planning, Third Edition 39
Human Resources (cont’d.)
Figure 1-7 The Human Resources functional area exchanges data with the
Accounting and Finance, Marketing and Sales, and Supply Chain
Management functional areas
40. Concepts in Enterprise Resource Planning, Third Edition 40
Human Resources (cont’d.)
• Observing governmental regulations in recruiting,
training, compensating, promoting, and terminating
employees
• Inputs for HR
– Personnel forecasts
– Skills data
41. Concepts in Enterprise Resource Planning, Third Edition 41
Human Resources (cont’d.)
• Outputs for HR
– Regulation compliance
– Employee training and certification
– Skills database
– Employee evaluation and compensation
42. Concepts in Enterprise Resource Planning, Third Edition 42
Human Resources (cont’d.)
• Significant amount of data is maintained by and
shared among the functional areas
• Timeliness and accuracy of these data critical to
each area’s success and to company’s ability to
make a profit and generate future growth
• ERP software allows all functional areas to share a
common database
– Allows accurate, real-time information to be available
43. Concepts in Enterprise Resource Planning, Third Edition 43
Summary
• Basic functional areas: Marketing and Sales,
Supply Chain Management, Accounting and
Finance, and Human Resources
• Marketing and Sales: Sets product prices,
promotes products through advertising and
marketing, takes customer orders, supports
customers, and creates sales forecasts
• Supply Chain Management: Develops production
plans, orders raw materials from suppliers, receives
raw material, manufactures products, maintains
facilities, and ships products to customers
44. Concepts in Enterprise Resource Planning, Third Edition 44
Summary (cont’d.)
• Accounting and Finance: Financial accounting to
provide summaries of operational data in
managerial reports, controlling accounts, planning
and budgeting, and cash-flow management
• Human Resources: Recruits, hires, trains, and
compensates employees, ensures compliance with
government regulations, and oversees the
evaluation of employees
• Information systems capture, process, and store
data to provide information needed for decision
making
45. Concepts in Enterprise Resource Planning, Third Edition 45
Summary (cont’d.)
• Employees working in one functional area need
data from employees in other functional areas
– Functional area information systems should be
integrated, so shared data are accurate and timely
• Managers think in terms of business processes that
integrate the functional areas
– Need to share information between functions and
functional areas
– ERP software provides this capability by means of a
single common database