Business Process & ERPBusiness Process & ERP

Soetam RizkySoetam Rizky

Business Process ?Business Process ?

A network of activities, resources, facilities, and information that interact

to achieve some business function.

Business

Function

Activities

Resources Facilities

Information

Activities—

Transform resources

and information of one type into another

type

Decisions— A

question that can

be answered Yes or No

Roles— Sets of

procedures

Resources—

People, or facilities,

or computer programs that are assigned to roles

Repository—

Collection of business

records

Components of a Business ProcessComponents of a Business Process

IS Support Business Processes?IS Support Business Processes?

Information in Business Processes?Information in Business Processes?

Check Membership Status

Member Records

Status

Customer data: Name, Email, Address, Phone(s), DateOfBirthMembership data: DateOfMembership, MembershipType,

FeePaid, ExpirationDateCourse data: Name, Description, StandardFee, PromotionalTermsClass data: CourseName, StartDate, EndDate, Instructor, AvailableSeats

Information for Unstructured ProcessesInformation for Unstructured Processes

Data

Quality of information determined by people and procedures used to interpret that data

Data is a stimulus that causes you to create information …in your mind

Your mind and your thinking are most important part of an information system

Quick SummaryQuick Summary

Enterprise applicationsEnterprise applications• Designed to support

organization-wide process coordination and integration

• Consist of :

• Enterprise systems

• Supply chain management systems

• Customer relationship management systems

• Knowledge management systems

Enterprise applicationsEnterprise applications

Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single

information system for organization-wide coordination and integration of key business

processes.Information that was

previously fragmented in different systems can

seamlessly flow throughout the firm so that it can be

shared by business processes in manufacturing, accounting, human resources, and other

areas

Enterprise applicationsEnterprise applications

Traditional View

Before we continue…….Before we continue…….• 90 % company failed in implementing ERP•Why they failed ?

Enterprise applicationsEnterprise applications

Help to unify the firm’s structure and organization: One organization

Management: Firm wide knowledge-based management processes

Technology: Unified platform

Business: More efficient operations & customer-driven business processes

Benefits :

Enterprise applicationsEnterprise applications

Challenge

Difficult to build

Technology

Centralized organizatio

nal coordinatio

n

Enterprise applicationsEnterprise applications

ERP

Supply Chain Management

Customer Relationship Management

Knowledge Management

Enterprise applicationsEnterprise applicationsSupply Chain Management

• Decide when and what to produce, store, and move

• Rapidly communicate orders• Track the status of orders• Check inventory availability and monitor

inventory levels

Enterprise applicationsEnterprise applicationsSupply Chain Management

• Reduce inventory, transportation, and warehousing costs

• Track shipments• Plan production based on actual customer

demand• Rapidly communicate changes in product

design

Enterprise applicationsEnterprise applicationsCustomer Relationship Management

• Manages all ways used by firms to deal with existing and potential new customers

• Business and technology discipline• Uses information system to coordinate entire

business processes of a firm

Enterprise applicationsEnterprise applicationsCustomer Relationship Management

• Provides end- to- end customer care• Provides a unified view of customer across

the company• Consolidates customer data from multiple

sources and provides analytical tools for answering questions

Enterprise applicationsEnterprise applicationsKnowledge Management Systems

• Collects relevant knowledge and make it

available wherever and whenever it is needed

• Support business processes and management

decisions

• Also link the firm to external sources of

knowledge

• Support processes for acquiring, storing,

distributing, and applying knowledge

Questions / Comments ?Questions /

Comments ?