,Chapter6 7 1:6 7 Introduction6 7 to6 7 Business
67Process
Learning6 7 Objectives
After6 7 completing6 7 this6 7 chapter6 7 you6 7 will6 7 be6 7 able6 7 to:
1. Define6 7 the6 7 functional6 7 organizational6 7 structure,6 7 and6 7 explain6 7 why6
7 this6 7 structure6 7 creates6 7 problems
for6 7 modern6 7 businesses
2. Describe6 7 key6 7 business6 7 processes6 7 in6 7 an6 7 organization
3. Identify6 7 the6 7 main6 7 integration6 7 points6 7 between6 7 and6 7 among6 7 processes
4. Understand6 7 the6 7 cross-
functional6 7 nature6 7 of6 7 processes6 7 and6 7 their6 7 relationship6 7 to67organizati
onal
areas
5. Adopt6 7 and6 7 apply6 7 an6 7 integrated6 7 perspective6 7 to6 7 business6 7 processes
6. Describe6 7 GBI’s6 7 organizational6 7 structure
7. Explain6 7 how6 7 the6 7 SAP6 7 system6 7 promotes6 7 an6 7 integrated6 7 approach6 7 to6 7 b
usiness6 7 processes
Chapter6 7 Outline6 7 and6 7 Teaching6 7 Suggestions
1. The6 7 Functional6 7 Organizational6 7 Structure
a. The6 7 Silo6 7 Effect
b. Enterprise6767 Systems
Discuss6 7 how6 7 companies6 7 are6 7 organized,6 7 and6 7 explain6 7 that6 7 the6 7 functio
nal6 7 structure6 7 is67the6 7 most
common6 7 organizational6 7 structure.6 7 You6 7 can6 7 use6 7 a6 7 university6 7 or6 7 compa
ny6 7 or6 7 a6 7 business67school
department6 7 that6 7 you6 7 are6 7 familiar6 7 with6 7 as6 7 an6 7 example.6 7 Point6 7 out6 7
that6 7 processes6 7 are67crossfunctional.6 7 Ask6 7 the6 7 question:6 7 Why6 7 is6 7 the6 7
functional6 7 structure6 7 so6 7 common?
Figure6 7 1-16 7 will6 7 assist
you6 7 in6 7 explaining6 7 the6 7 cross-
functional6 7 nature6 7 of6 7 business 6 7 processes.67Explain6 7 the6 7 silo6 7 eff
ect6 7 and67its67negative6 7 implications 6 7 for6 7 modern6 7 business 67organi
zations.6 7 You
can67 give67 an67 example67 such67 as67 creating67 a67 sales67 order67 in67 sales67 an
d67 marketing67 with67 no67integration
or6 7 communication6 7 with6 7 inventory6 7 management6 7 or6 7 production.
Point6 7 out6 7 that6 7 the6 7 nature6 7 of6 7 the6 7 functional6 7 organizational6 7 structu
re6 7 and6 7 the6 7 cross-67functional
nature6 7 of6 7 processes6 7 directly6 7 conflict6 7 with6 7 each6 7 other.
Explain6 7 the6 7 benefits6 7 of6 7 an6 7 enterprise6 7 system6 7 (ES)67(i.e.,67supports6
7 end-to-end67processes,
productivity,6 7 competitive6 7 edge,6 7 monitoring6 7 and6 7 changing6 7 of6 7 business6
7 processes,67etc.).
2. Business6 7 Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement67-
67Buy67Production 67-
67Make67Fulfillment67-
67Sell67Material67 Plan
ning67-67Plan
Inventory67 and67 Warehouse6 7 Management67
-
67Store67Lifecycle6 7 Data6 7 Management 67
-67Design
Asset6 7 Management6 7 and6 7 Customer6 7 Service67-
67Service67Human6 7 Capital6 7 Management 67-
67People
Project6 7 Management6 7 -6 7 Projects
Financial6 7 Accounting67-
67Track67for67Track67for67External6 7 Reporting67Management6 7 A
ccounting67-67Track67for67Internal6 7 Reporting
Define6 7 and6 7 explain6 7 a6 7 business6 7 process.6 7 Point6 7 out6 7 that6 7 organization
s6 7 use6 7 many67processes6 7 to
achieve6 7 their6 7 objectives6 7 and6 7 they6 7 employ6 7 specific6 7 terms6 7 to6 7 identi
fy6 7 the6 7 processes.
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be6 7 directly6 7 related6 7 or6 7 closely6 7 related6 7 to6 7 creating6 7 and6 7 delive
ring6 7 goods6 7 and6 7 services.6 7 Use6 7 Figure
1-
26 7 to6 7 illustrate6 7 a6 7 process6 7 that6 7 is6 7 executed6 7 in6 7 response6 7 to6 7 a6
7 need6 7 (trigger).6 7 The67process6 7 is
carried6 7 out6 7 through6 7 a6 7 sequence6 7 of6 7 steps6 7 and6 7 results6 7 in6 7 an6 7 output
.6 7 You6 7 can6 7 use6 7 an67example6 7 such
as6 7 ordering6 7 supplies.
Processes6 7 can6 7 be6 7 supported6 7 by6 7 other6 7 processes 6 7 and6 7 can6 7 have6 7 numer
ous6 7 sub-processes.
Point
out6 7 that6 7 communication6 7 and6 7 coordination6 7 of6 7 tasks6 7 are6 7 very6 7 important.
6 7 Figure6 7 1-36 7 can67assist
you6 7 in6 7 explaining6 7 this6 7 point.6 7 Ask6 7 students6 7 to6 7 indentify6 7 some6 7 othe
r6 7 processes6 7 that67they6 7 are
familiar6 7 with.
Describe6 7 and6 7 give6 7 examples6 7 of6 7 the6 7 business6 7 processes6 7 (A67-
67K).6 7 Figures6 7 1-46 7 through671-1067will
assist6 7 you.
3. Global6 7 Bicycle,6 7 Incorporated6 7 (GBI)
Explain 6 7 that6 7 Global6 7 Bicycle,6 7 Incorporated 6 7 (GBI)6 7 is6 7 a6 7 fictional6 7 com
pany6 7 that6 7 is6 7 used67to6 7 illustrate
the6 7 important6 7 concepts,6 7 processes,6 7 and6 7 techniques6 7 discussed6 7 in6 7 the6 7
textbook.6 7 Figure671-1167will
assist6 7 you6 7 in6 7 explaining6 7 GBI's6 7 organizational6 7 structure.
Call6 7 up6 7 the6 7 SAP6 7 University6 7 Alliance6 7 Community6 7 (UAC)6 7 website6 7 http://u
ac.sap.com,6 7 and67demonstrate6 7 the6 7 functionality6 7 and6 7 services6 7 available6 7
for6 7 students.6 7 Also6 7 instruct6 7 students6 7 to
read6 7 the6 7 GBI6 7 Backround 6 7 Document6 7 on6 7 the6 7 UAC6 7 to6 7 understand 6 7 GBI’s
, 6 7 history,6 7 products6 7 and
operations.
4. How6 7 To6 7 Use6 7 This6 7 Book
a. Chapter6 7 Structure
67Process
Learning6 7 Objectives
After6 7 completing6 7 this6 7 chapter6 7 you6 7 will6 7 be6 7 able6 7 to:
1. Define6 7 the6 7 functional6 7 organizational6 7 structure,6 7 and6 7 explain6 7 why6
7 this6 7 structure6 7 creates6 7 problems
for6 7 modern6 7 businesses
2. Describe6 7 key6 7 business6 7 processes6 7 in6 7 an6 7 organization
3. Identify6 7 the6 7 main6 7 integration6 7 points6 7 between6 7 and6 7 among6 7 processes
4. Understand6 7 the6 7 cross-
functional6 7 nature6 7 of6 7 processes6 7 and6 7 their6 7 relationship6 7 to67organizati
onal
areas
5. Adopt6 7 and6 7 apply6 7 an6 7 integrated6 7 perspective6 7 to6 7 business6 7 processes
6. Describe6 7 GBI’s6 7 organizational6 7 structure
7. Explain6 7 how6 7 the6 7 SAP6 7 system6 7 promotes6 7 an6 7 integrated6 7 approach6 7 to6 7 b
usiness6 7 processes
Chapter6 7 Outline6 7 and6 7 Teaching6 7 Suggestions
1. The6 7 Functional6 7 Organizational6 7 Structure
a. The6 7 Silo6 7 Effect
b. Enterprise6767 Systems
Discuss6 7 how6 7 companies6 7 are6 7 organized,6 7 and6 7 explain6 7 that6 7 the6 7 functio
nal6 7 structure6 7 is67the6 7 most
common6 7 organizational6 7 structure.6 7 You6 7 can6 7 use6 7 a6 7 university6 7 or6 7 compa
ny6 7 or6 7 a6 7 business67school
department6 7 that6 7 you6 7 are6 7 familiar6 7 with6 7 as6 7 an6 7 example.6 7 Point6 7 out6 7
that6 7 processes6 7 are67crossfunctional.6 7 Ask6 7 the6 7 question:6 7 Why6 7 is6 7 the6 7
functional6 7 structure6 7 so6 7 common?
Figure6 7 1-16 7 will6 7 assist
you6 7 in6 7 explaining6 7 the6 7 cross-
functional6 7 nature6 7 of6 7 business 6 7 processes.67Explain6 7 the6 7 silo6 7 eff
ect6 7 and67its67negative6 7 implications 6 7 for6 7 modern6 7 business 67organi
zations.6 7 You
can67 give67 an67 example67 such67 as67 creating67 a67 sales67 order67 in67 sales67 an
d67 marketing67 with67 no67integration
or6 7 communication6 7 with6 7 inventory6 7 management6 7 or6 7 production.
Point6 7 out6 7 that6 7 the6 7 nature6 7 of6 7 the6 7 functional6 7 organizational6 7 structu
re6 7 and6 7 the6 7 cross-67functional
nature6 7 of6 7 processes6 7 directly6 7 conflict6 7 with6 7 each6 7 other.
Explain6 7 the6 7 benefits6 7 of6 7 an6 7 enterprise6 7 system6 7 (ES)67(i.e.,67supports6
7 end-to-end67processes,
productivity,6 7 competitive6 7 edge,6 7 monitoring6 7 and6 7 changing6 7 of6 7 business6
7 processes,67etc.).
2. Business6 7 Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement67-
67Buy67Production 67-
67Make67Fulfillment67-
67Sell67Material67 Plan
ning67-67Plan
Inventory67 and67 Warehouse6 7 Management67
-
67Store67Lifecycle6 7 Data6 7 Management 67
-67Design
Asset6 7 Management6 7 and6 7 Customer6 7 Service67-
67Service67Human6 7 Capital6 7 Management 67-
67People
Project6 7 Management6 7 -6 7 Projects
Financial6 7 Accounting67-
67Track67for67Track67for67External6 7 Reporting67Management6 7 A
ccounting67-67Track67for67Internal6 7 Reporting
Define6 7 and6 7 explain6 7 a6 7 business6 7 process.6 7 Point6 7 out6 7 that6 7 organization
s6 7 use6 7 many67processes6 7 to
achieve6 7 their6 7 objectives6 7 and6 7 they6 7 employ6 7 specific6 7 terms6 7 to6 7 identi
fy6 7 the6 7 processes.
Processes6 7 can
be6 7 directly6 7 related6 7 or6 7 closely6 7 related6 7 to6 7 creating6 7 and6 7 delive
ring6 7 goods6 7 and6 7 services.6 7 Use6 7 Figure
1-
26 7 to6 7 illustrate6 7 a6 7 process6 7 that6 7 is6 7 executed6 7 in6 7 response6 7 to6 7 a6
7 need6 7 (trigger).6 7 The67process6 7 is
carried6 7 out6 7 through6 7 a6 7 sequence6 7 of6 7 steps6 7 and6 7 results6 7 in6 7 an6 7 output
.6 7 You6 7 can6 7 use6 7 an67example6 7 such
as6 7 ordering6 7 supplies.
Processes6 7 can6 7 be6 7 supported6 7 by6 7 other6 7 processes 6 7 and6 7 can6 7 have6 7 numer
ous6 7 sub-processes.
Point
out6 7 that6 7 communication6 7 and6 7 coordination6 7 of6 7 tasks6 7 are6 7 very6 7 important.
6 7 Figure6 7 1-36 7 can67assist
you6 7 in6 7 explaining6 7 this6 7 point.6 7 Ask6 7 students6 7 to6 7 indentify6 7 some6 7 othe
r6 7 processes6 7 that67they6 7 are
familiar6 7 with.
Describe6 7 and6 7 give6 7 examples6 7 of6 7 the6 7 business6 7 processes6 7 (A67-
67K).6 7 Figures6 7 1-46 7 through671-1067will
assist6 7 you.
3. Global6 7 Bicycle,6 7 Incorporated6 7 (GBI)
Explain 6 7 that6 7 Global6 7 Bicycle,6 7 Incorporated 6 7 (GBI)6 7 is6 7 a6 7 fictional6 7 com
pany6 7 that6 7 is6 7 used67to6 7 illustrate
the6 7 important6 7 concepts,6 7 processes,6 7 and6 7 techniques6 7 discussed6 7 in6 7 the6 7
textbook.6 7 Figure671-1167will
assist6 7 you6 7 in6 7 explaining6 7 GBI's6 7 organizational6 7 structure.
Call6 7 up6 7 the6 7 SAP6 7 University6 7 Alliance6 7 Community6 7 (UAC)6 7 website6 7 http://u
ac.sap.com,6 7 and67demonstrate6 7 the6 7 functionality6 7 and6 7 services6 7 available6 7
for6 7 students.6 7 Also6 7 instruct6 7 students6 7 to
read6 7 the6 7 GBI6 7 Backround 6 7 Document6 7 on6 7 the6 7 UAC6 7 to6 7 understand 6 7 GBI’s
, 6 7 history,6 7 products6 7 and
operations.
4. How6 7 To6 7 Use6 7 This6 7 Book
a. Chapter6 7 Structure
