Chapter 1 Notes
- Enterprise Resource Planning (ERP) systems are core software programs used by
companies to integrate and coordinate information in every area of the
- A business process is a collection of activities that takes one or more kinds
of input and creates an output, such as a report or forecast that is of value
to the customer.
o For example, what is sold through Marketing and Sales is linked to what
is procured and produced by Supply Chain Management.
- Most companies have four main functional areas of operation:
o Marketing and Sales (M/S),
o Supply Chain Management (SCM),
o Accounting and Finance (A/F), and
o Human Resources (HR)
- Thus, you might conclude that what happens in one functional area is not
closely related to what happens in others.
- An information system (IS) includes the people, procedures, software, and
computers that store, organize, analyze, and deliver information.
- What is the difference between a business function and a business process from
the customer’s point of view?
o Because only one functional area is involved in accepting the return of
the damaged item, receipt of the return is a business function—
specifically, it is part of the customer relationship management
function of Marketing and Sales.
o Because several functional areas are involved in the repair and return
of the mobile phone back to the customer, the handling of the repair is
a business process.
- Because several functional areas are involved in the repair and return of the