,Chapter 1: Introduction to Business
Process
Learning Objectives
After completing this chapter you will be able to:
1. Define the functional organizational structure, and explain why this structure
creates problems
for modern businesses
2. Describe key business processes in an organization
3. Identify the main integration points between and among processes
4. Understand the cross-functional nature of processes and their relationship to
organizational
areas
5. Adopt and apply an integrated perspective to business processes
6. Describe GBI’s organizational structure
7. Explain how the SAP system promotes an integrated approach to business processes
Chapter Outline and Teaching Suggestions
1. The Functional Organizational Structure
a. The Silo Effect
b. Enterprise Systems
Discuss how companies are organized, and explain that the functional structure is
the most
common organizational structure. You can use a university or company or a business
school
department that you are familiar with as an example. Point out that processes are
crossfunctional. Ask the question: Why is the functional structure so common?
Figure 1-1 will assist
you in explaining the cross-functional nature of business processes.
Explain the silo effect and its negative implications for modern business
organizations. You
can give an example such as creating a sales order in sales and marketing with no
integration
or communication with inventory management or production.
Point out that the nature of the functional organizational structure and the cross-
functional
nature of processes directly conflict with each other.
Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end
processes,
productivity, competitive edge, monitoring and changing of business processes,
etc.).
2. Business Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement - Buy
Production - Make
Fulfillment - Sell
Material Planning - Plan
Inventory and Warehouse Management - Store
Lifecycle Data Management - Design
Asset Management and Customer Service - Service
Human Capital Management - People
Project Management - Projects
Financial Accounting - Track for Track for External Reporting
Management Accounting - Track for Internal Reporting
Define and explain a business process. Point out that organizations use many
processes to
achieve- their- objectives- and- they- employ- specific- terms- to- identify- the- processes.
Processes- can
be- directly- related- or- closely- related- to- creating- and- delivering- goods- and-
services.- Use- Figure
1-2- to- illustrate- a- process- that- is- executed- in- response- to- a- need- (trigger).- The-
process- is
carried- out- through- a- sequence- of- steps- and- results- in- an- output.- You- can- use- an-
example- such
as- ordering- supplies.
Processes- can- be- supported- by- other- processes- and- can- have- numerous- sub-processes.
Point
out- that- communication- and- coordination- of- tasks- are- very- important.- Figure- 1-3- can-
assist
you- in- explaining- this- point.- Ask- students- to- indentify- some- other- processes- that-
they- are
familiar- with.
Describe- and- give- examples- of- the- business- processes- (A---K).- Figures- 1-4- through-
1-10-will
assist- you.
3. Global- Bicycle,- Incorporated- (GBI)
Explain- that- Global- Bicycle,- Incorporated- (GBI)- is- a- fictional- company- that- is-
used-to- illustrate
the- important- concepts,- processes,- and- techniques- discussed- in- the- textbook.-
Figure-1-11-will
assist- you- in- explaining- GBI's- organizational- structure.
Call- up- the- SAP- University- Alliance- Community- (UAC)- website- http://uac.sap.com,-
and-demonstrate- the- functionality- and- services- available- for- students.- Also- instruct-
students- to
read- the- GBI- Backround- Document- on- the- UAC- to- understand- GBI’s- history,- products-
and
operations.
4. How- To- Use- This- Book
a. Chapter- Structure
, b. SAP- Software- and- Certification
c. WileyPLUS
Process
Learning Objectives
After completing this chapter you will be able to:
1. Define the functional organizational structure, and explain why this structure
creates problems
for modern businesses
2. Describe key business processes in an organization
3. Identify the main integration points between and among processes
4. Understand the cross-functional nature of processes and their relationship to
organizational
areas
5. Adopt and apply an integrated perspective to business processes
6. Describe GBI’s organizational structure
7. Explain how the SAP system promotes an integrated approach to business processes
Chapter Outline and Teaching Suggestions
1. The Functional Organizational Structure
a. The Silo Effect
b. Enterprise Systems
Discuss how companies are organized, and explain that the functional structure is
the most
common organizational structure. You can use a university or company or a business
school
department that you are familiar with as an example. Point out that processes are
crossfunctional. Ask the question: Why is the functional structure so common?
Figure 1-1 will assist
you in explaining the cross-functional nature of business processes.
Explain the silo effect and its negative implications for modern business
organizations. You
can give an example such as creating a sales order in sales and marketing with no
integration
or communication with inventory management or production.
Point out that the nature of the functional organizational structure and the cross-
functional
nature of processes directly conflict with each other.
Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end
processes,
productivity, competitive edge, monitoring and changing of business processes,
etc.).
2. Business Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement - Buy
Production - Make
Fulfillment - Sell
Material Planning - Plan
Inventory and Warehouse Management - Store
Lifecycle Data Management - Design
Asset Management and Customer Service - Service
Human Capital Management - People
Project Management - Projects
Financial Accounting - Track for Track for External Reporting
Management Accounting - Track for Internal Reporting
Define and explain a business process. Point out that organizations use many
processes to
achieve- their- objectives- and- they- employ- specific- terms- to- identify- the- processes.
Processes- can
be- directly- related- or- closely- related- to- creating- and- delivering- goods- and-
services.- Use- Figure
1-2- to- illustrate- a- process- that- is- executed- in- response- to- a- need- (trigger).- The-
process- is
carried- out- through- a- sequence- of- steps- and- results- in- an- output.- You- can- use- an-
example- such
as- ordering- supplies.
Processes- can- be- supported- by- other- processes- and- can- have- numerous- sub-processes.
Point
out- that- communication- and- coordination- of- tasks- are- very- important.- Figure- 1-3- can-
assist
you- in- explaining- this- point.- Ask- students- to- indentify- some- other- processes- that-
they- are
familiar- with.
Describe- and- give- examples- of- the- business- processes- (A---K).- Figures- 1-4- through-
1-10-will
assist- you.
3. Global- Bicycle,- Incorporated- (GBI)
Explain- that- Global- Bicycle,- Incorporated- (GBI)- is- a- fictional- company- that- is-
used-to- illustrate
the- important- concepts,- processes,- and- techniques- discussed- in- the- textbook.-
Figure-1-11-will
assist- you- in- explaining- GBI's- organizational- structure.
Call- up- the- SAP- University- Alliance- Community- (UAC)- website- http://uac.sap.com,-
and-demonstrate- the- functionality- and- services- available- for- students.- Also- instruct-
students- to
read- the- GBI- Backround- Document- on- the- UAC- to- understand- GBI’s- history,- products-
and
operations.
4. How- To- Use- This- Book
a. Chapter- Structure
, b. SAP- Software- and- Certification
c. WileyPLUS
