Chapter 1 Business Functions and Business Processes
Business functions and business processes
Enterprise resource planning (ERP): systems are core software programs used by companies to
integrate and coordinate information in every area of business.
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.
Functional areas of operation
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)
o Human resources (HR)
Business functions: are activities specific to that functional area of operation. Chapter 1 Business Functions and Business Processes
Business process is a collection of activates that takes one or more kind of input and creates an output
that is of value to the customer.
Marketing and sales
Functions include: developing products, determining pricing, promoting products to customers, and
taking customers’ orders.
Marketing and sales also helps create a sales forecast to ensure the successful operation of the business. Chapter 1 Business Functions and Business Processes
Supply Chain Management
Supply chain management (SCM): include developing production plans, ordering raw materials from
suppliers, receiving the raw material into the facility, manufacturing products, maintaining facilities, and
shipping products to customers.
Sales forecast are estimates of future product demand, which is the amount of product customers will
want to buy.
Accounting and Finance
Accounting and finance (A/F): performs financial accounting to provide summaries of operation data in
managerial reports and it is also responsible for tasks such as controlling accounting, planning and
budgeting, and cash-flow management.
Raw Data: are simply numbers collected from sales, manufacturing, and other operations without any
Human Resources are simple business needs, to support the marketing and sales and supply chain
management functional areas, which means