Chapter 1 Business Function and Business Processes

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Ryerson University
Information Technology Management
ITM 330
Selcuk Savas

Chapter 1 Business Function 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.  Integrates tasks relates to sales, marketing, manufacturing, logistics ,accounting, and staffing Business Process: is a collection of activities that takes one or more kinds of inputs and creates outputs that has value to the customer. Ex. Report of forecast Functional Area and Business Processes Functional Area Of operations: are broad categories of business activities Business Function: activities specific to that functional area of operations Functional area Marketing and Sales Supply Chain Accounting and Human of operations Management Finance Resources Marketing a Purchasing Financial Planning and product goods and raw accounting of budgeting materials payments from customers and Business to suppliers Functions Taking sales Receiving Cost allocation Training orders goods and raw and control materials Customer Transportation Planning and Payroll support and logistics budgeting Customer Scheduling Planning and Benefits relationship production runs budgeting management Sales Manufacturing Government forecasting goods compliance Advertising Plant maintenance Business Processes The different between business function and business process Example: If a customers mobile phone is damageded furing shipment Functional area: Marketing and sales Business function: Customer relationship management Business process: Input: input Return of receipt, process prices repair in , Output Return  A successful customer interaction is one in which a customer is not required to interact separately with each business function involved with the process.  Integrated Information Systems : information systems that are designed so functional area share data.  Business take inputs (resources) in the form of material, people and equipment and transform these inputs into goods and services for customers  Business process require up to date information Functional Area and Business Processes of a Very Small Business We will pretend we own a coffee shop and examine the business process of each functional area  Marketing and Sales (M/S)  This functions includes: o Developing products o Determining pricing o Promoting products to customer o Taking customers’ orders o Helps also to create forecast to ensure the successful operations of the coffee shop  Keepings a record of repeated customers to send flyers and thanks yours and amount of sales  Product development; gathering information about which coffee which person buys.  Deciding whether to sell a product also depends how much it costs to produce the product  Determining whether a new product is profitable produced and sold you would analyze the data from Supply Chain Management : including production information ( cost of purchasing extra coffee machine) and material management data( the cost of materials like coffee beans and chai tea)  Accessing Accounting and Finance records are a very important part of sales process Supply Chain Management (SCM)  This function includes (IMAGINE THIS TO BE THE FACTORY)  Developing productions plans: Involves forecasts from marketing and sales *important (m/s) - Productions plans are also used to develop requirements for raw materials - You ge
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