Monk 01Ch 03 Integrated Info Systems.pptsmiertsc/4339itec/Monk_01Ch_03... · Enterprise Resource...

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Concepts in Enterprise ResourcePlanning3rd Edition

Chapter 1Business Functions and Business Processes

Chapter Objectives• Name a business's main areas of operation. • 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

Concepts in Enterprise Resource Planning, Second Edition 2

• Identify the kinds of data that each main functional area needs.

• Define integrated information systems and state why they are important

Concepts in Enterprise Resource Planning, Second Edition

PART 3

Integrated Information Systems - Share the Data

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Functional Areas of Operation


Business Processes

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Customer Order Process, e.g.

Data / Information


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Material Order Process

Figure 1-3 A process view of business

Data / Information

Data / Information

Integration of Business Functions• Sharing data efficiently and effectively within and

between functional areas leads to more efficient business processes

• Information systems that share data between functional areas are called Integrated Information Systems


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Information System• Includes:

– Computers– People– Procedures– Software

• Stores organizes and delivers information


• Stores, organizes and delivers information• Information systems are a critical tool for integrating

business functions


LEMONADE STANDFunctional areas, business functions

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Lemonade Stand• Marketing and Sales

– Develop products– Determine pricing– Promote products– Take customer orders

Make sales forecast


– Make sales forecast– Track repeat customers to send flyers or thank-you

notes– Manage credit

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Lemonade Stand• Supply Chain Management

– Buy raw materials (purchasing)– Make lemonade– Manage recipes– Maintain manufacturing (cost) records


Lemonade Stand• Accounting and Finance

– Record raw transaction data▪ Sales, raw material purchases, payroll, cash

receipts– Provide data for sales forecasting, credit

management, cash management


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Lemonade Stand• Human Resources

– Recruit, train, evaluate and compensate employees– Develop personnel plans (staffing) based on sales– Determine compensation—depends on labor market


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Marketing and Sales• Inputs

– Customer data– Order data– Sales trend data– Per-unit cost

• Outputs– Sales strategies– Product pricing– Order status– Sales forecast

Hi i d


– Hiring needs

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Supply Chain Management• Inputs

– Product sales data– Production plans– Inventory levels

• Outputs– Raw material orders– Packaging orders– Resource expenditure

data– Production and


– Production and inventory reports

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Accounting and Finance• Inputs

– Payments from customers

– Accounts receivables data

– Accounts payables

• Outputs– Payments to suppliers– Financial reports– Customer credit data


Accounts payables data

– Sales data– Production and

inventory data– Payroll and expense

data

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Human Resources • Inputs

– Personnel forecasts– Skills data

• Outputs– Regulation compliance– Employee training and

certification– Skills database


Summary• All manufacturing companies have basic functional areas

– Marketing and Sales– Supply Chain Management– Accounting and Finance– Human Resources


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Summary• Marketing and Sales

– Sets product prices– Promotes products– Takes customer orders– Creates sales forecasts


Summary• Supply Chain Management

– Develops production plans– Orders raw materials from suppliers– Receives the raw material into the facility– Manufactures products

Ships products to customers


– Ships products to customers

Summary• Accounting and Finance

– Records sales transactions– Records customers’ payments– Records suppliers’ invoices and payments to

suppliers– Summarizes operational data in managerial reports


Summarizes operational data in managerial reports

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Summary• Human Resources

– Recruits employees– Trains employees– Compensates employees

▪ Includes employee benefitsOversees the evaluation of employees


– Oversees the evaluation of employees

Summary• Employees working in one functional area need data

from other functional areas• Functional area information systems should be

integrated, so accurate data can be shared and readily available

• Integrated information systems serve functional areas– Capture data


Capture data– Process data– Store data– Make data accessible across functional areas

▪ As needed– Restrict access to data to maintain security and

privacy

Summary

• Business managers must think in terms of business processes that integrate functional areas– A business process view promotes efficiency and

competitiveness– Business processes require information sharing


p q gamong functional areas

• ERP systems provide this capability by using a common database of information

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End of Chapter 1 Part 3

Integrated Information Systems – Share the Data

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Monk 01Ch 03 Integrated Info Systems.pptsmiertsc/4339itec/Monk_01Ch_03... · Enterprise Resource...

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