,Chapter4 4 1:4 4 Introduction4 4 to4 4 Business4
4Process
Learning4 4 Objectives
After4 4 completing4 4 this4 4 chapter4 4 you4 4 will4 4 be4 4 able4 4 to:
1. Define4 4 the4 4 functional4 4 organizational4 4 structure,4 4 and4 4 explain4 4 why4 4 t
his4 4 structure4 4 creates4 4 problems
for4 4 modern4 4 businesses
2. Describe4 4 key4 4 business4 4 processes4 4 in4 4 an4 4 organization
3. Identify4 4 the4 4 main4 4 integration4 4 points44 between4 4 and4 4 among4 4 processes
4. Understand4 4 the4 4 cross-
functional4 4 nature4 4 of4 4 processes4 4 and4 4 their4 4 relationship4 4 to44organization
al
areas
5. Adopt4 4 and4 4 apply4 4 an4 4 integrated4 4 perspective4 4 to4 4 business4 4 processes
6. Describe4 4 GBI’s4 4 organizational4 4 structure
7. Explain4 4 how4 4 the4 4 SAP4 4 system4 4 promotes4 4 an4 4 integrated4 4 approach4 4 to4 4 busi
ness4 4 processes
Chapter4 4 Outline4 4 and4 4 Teaching4 4 Suggestions
1. The4 4 Functional4 4 Organizational4 4 Structure
a. The4 4 Silo4 4 Effect
b. Enterprise4 4 4 4 Systems
Discuss4 4 how4 4 companies4 4 are4 4 organized,4 4 and4 4 explain4 4 that4 4 the4 4 function
al4 4 structure4 4 is44the4 4 most
common4 4 organizational4 4 structure.4 4 You4 4 can4 4 use4 4 a4 4 university4 4 or4 4 company
4 4 or4 4 a4 4 business44school
department4 4 that4 4 you4 4 are4 4 familiar4 4 with4 4 as4 4 an4 4 example.4 4 Point4 4 out4 4 tha
t4 4 processes4 4 are44crossfunctional.4 4 Ask4 4 the4 4 question:4 4 Why4 4 is4 4 the4 4 functi
onal4 4 structure4 4 so4 4 common?
Figure 4 4 1-14 4 will4 4 assist
you4 4 in4 4 explaining 4 4 the4 4 cross-
functional4 4 nature4 4 of4 4 business 4 4 processes. 44Explain4 4 the4 4 silo4 4 effe
ct4 4 and44its 44negative 4 4 implications 4 4 for4 4 modern4 4 business 44organizati
ons.4 4 You
can44 give44 an44 example44 such44 as44 creating44 a44 sales44 order44 in44 sales44 and44
marketing44 with44 no44integration
or4 4 communication4 4 with4 4 inventory4 4 management4 4 or4 4 production.
Point4 4 out4 4 that4 4 the4 4 nature4 4 of4 4 the4 4 functional4 4 organizational4 4 structure
4 4 and4 4 the 4 4 cross-44functional
nature4 4 of4 4 processes4 4 directly 4 4 conflict4 4 with4 4 each4 4 other.
Explain4 4 the4 4 benefits4 4 of4 4 an4 4 enterprise4 4 system4 4 (ES)44(i.e., 44supports4 4 e
nd-to-end44processes,
productivity,4 4 competitive4 4 edge,4 4 monitoring4 4 and4 4 changing4 4 of4 4 business4 4 p
rocesses,44etc.).
2. Business4 4 Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement44-
44Buy44Production 44-
44Make44Fulfillment 44-
44Sell44Material44Plann
ing44-44Plan
Inventory44 and44 Warehouse4 4 Management 44-
44Store44Lifecycle4 4 Data4 4 Management 44-
44Design
Asset4 4 Management4 4 and4 4 Customer4 4 Service44-
44Service 44Human4 4 Capital4 4 Management 44-44People
Project4 4 Management4 4 -4 4 Projects
Financial4 4 Accounting44-
44Track44for 44Track44for 44External4 4 Reporting44Management4 4 Acc
ounting44-44Track44for44Internal4 4 Reporting
Define4 4 and4 4 explain4 4 a4 4 business4 4 process.4 4 Point4 4 out4 4 that4 4 organizations
4 4 use 4 4 many44processes4 4 to
achieve4 4 their4 4 objectives4 4 and4 4 they4 4 employ4 4 specific4 4 terms4 4 to4 4 identify
4 4 the4 4 processes.
Processes4 4 can
be4 4 directly4 4 related4 4 or4 4 closely4 4 related4 4 to4 4 creating4 4 and4 4 deliverin
g4 4 goods4 4 and4 4 services.4 4 Use4 4 Figure
1-
24 4 to4 4 illustrate4 4 a4 4 process4 4 that4 4 is4 4 executed4 4 in4 4 response4 4 to4 4 a4 4 ne
ed4 4 (trigger).4 4 The44process4 4 is
carried4 4 out4 4 through4 4 a4 4 sequence4 4 of4 4 steps4 4 and4 4 results4 4 in4 4 an4 4 output.4
4 You4 4 can 4 4 use4 4 an44example4 4 such
as4 4 ordering4 4 supplies.
Processes4 4 can4 4 be4 4 supported4 4 by4 4 other4 4 processes 4 4 and4 4 can4 4 have4 4 numerous
4 4 sub-processes.
Point
out4 4 that4 4 communication4 4 and4 4 coordination4 4 of4 4 tasks4 4 are4 4 very4 4 important.4
4 Figure4 4 1-34 4 can44assist
you4 4 in4 4 explaining4 4 this4 4 point.4 4 Ask4 4 students4 4 to4 4 indentify 4 4 some4 4 other4
4 processes4 4 that44they4 4 are
familiar4 4 with.
Describe4 4 and4 4 give4 4 examples4 4 of4 4 the4 4 business4 4 processes4 4 (A44-
44K).4 4 Figures4 4 1-44 4 through441-1044will
assist4 4 you.
3. Global4 4 Bicycle,4 4 Incorporated4 4 (GBI)
Explain 4 4 that4 4 Global4 4 Bicycle,4 4 Incorporated 4 4 (GBI)4 4 is4 4 a4 4 fictional4 4 compa
ny4 4 that4 4 is4 4 used44to4 4 illustrate
the4 4 important4 4 concepts,4 4 processes,4 4 and4 4 techniques4 4 discussed4 4 in4 4 the4 4 te
xtbook.4 4 Figure441-1144will
assist4 4 you4 4 in4 4 explaining 4 4 GBI's4 4 organizational4 4 structure.
Call4 4 up4 4 the4 4 SAP4 4 University4 4 Alliance4 4 Community4 4 (UAC)4 4 website4 4 http://ua
c.sap.com,4 4 and44demonstrate4 4 the4 4 functionality4 4 and4 4 services4 4 available4 4 for
4 4 students.4 4 Also4 4 instruct4 4 students4 4 to
read4 4 the4 4 GBI4 4 Backround4 4 Document4 4 on4 4 the4 4 UAC4 4 to4 4 understand4 4 GBI’s4
4 history,4 4 products4 4 and
operations.
, 4. How4 4 To4 4 Use4 4 This4 4 Book
a. Chapter4 4 Structure
4Process
Learning4 4 Objectives
After4 4 completing4 4 this4 4 chapter4 4 you4 4 will4 4 be4 4 able4 4 to:
1. Define4 4 the4 4 functional4 4 organizational4 4 structure,4 4 and4 4 explain4 4 why4 4 t
his4 4 structure4 4 creates4 4 problems
for4 4 modern4 4 businesses
2. Describe4 4 key4 4 business4 4 processes4 4 in4 4 an4 4 organization
3. Identify4 4 the4 4 main4 4 integration4 4 points44 between4 4 and4 4 among4 4 processes
4. Understand4 4 the4 4 cross-
functional4 4 nature4 4 of4 4 processes4 4 and4 4 their4 4 relationship4 4 to44organization
al
areas
5. Adopt4 4 and4 4 apply4 4 an4 4 integrated4 4 perspective4 4 to4 4 business4 4 processes
6. Describe4 4 GBI’s4 4 organizational4 4 structure
7. Explain4 4 how4 4 the4 4 SAP4 4 system4 4 promotes4 4 an4 4 integrated4 4 approach4 4 to4 4 busi
ness4 4 processes
Chapter4 4 Outline4 4 and4 4 Teaching4 4 Suggestions
1. The4 4 Functional4 4 Organizational4 4 Structure
a. The4 4 Silo4 4 Effect
b. Enterprise4 4 4 4 Systems
Discuss4 4 how4 4 companies4 4 are4 4 organized,4 4 and4 4 explain4 4 that4 4 the4 4 function
al4 4 structure4 4 is44the4 4 most
common4 4 organizational4 4 structure.4 4 You4 4 can4 4 use4 4 a4 4 university4 4 or4 4 company
4 4 or4 4 a4 4 business44school
department4 4 that4 4 you4 4 are4 4 familiar4 4 with4 4 as4 4 an4 4 example.4 4 Point4 4 out4 4 tha
t4 4 processes4 4 are44crossfunctional.4 4 Ask4 4 the4 4 question:4 4 Why4 4 is4 4 the4 4 functi
onal4 4 structure4 4 so4 4 common?
Figure 4 4 1-14 4 will4 4 assist
you4 4 in4 4 explaining 4 4 the4 4 cross-
functional4 4 nature4 4 of4 4 business 4 4 processes. 44Explain4 4 the4 4 silo4 4 effe
ct4 4 and44its 44negative 4 4 implications 4 4 for4 4 modern4 4 business 44organizati
ons.4 4 You
can44 give44 an44 example44 such44 as44 creating44 a44 sales44 order44 in44 sales44 and44
marketing44 with44 no44integration
or4 4 communication4 4 with4 4 inventory4 4 management4 4 or4 4 production.
Point4 4 out4 4 that4 4 the4 4 nature4 4 of4 4 the4 4 functional4 4 organizational4 4 structure
4 4 and4 4 the 4 4 cross-44functional
nature4 4 of4 4 processes4 4 directly 4 4 conflict4 4 with4 4 each4 4 other.
Explain4 4 the4 4 benefits4 4 of4 4 an4 4 enterprise4 4 system4 4 (ES)44(i.e., 44supports4 4 e
nd-to-end44processes,
productivity,4 4 competitive4 4 edge,4 4 monitoring4 4 and4 4 changing4 4 of4 4 business4 4 p
rocesses,44etc.).
2. Business4 4 Processes
,a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Procurement44-
44Buy44Production 44-
44Make44Fulfillment 44-
44Sell44Material44Plann
ing44-44Plan
Inventory44 and44 Warehouse4 4 Management 44-
44Store44Lifecycle4 4 Data4 4 Management 44-
44Design
Asset4 4 Management4 4 and4 4 Customer4 4 Service44-
44Service 44Human4 4 Capital4 4 Management 44-44People
Project4 4 Management4 4 -4 4 Projects
Financial4 4 Accounting44-
44Track44for 44Track44for 44External4 4 Reporting44Management4 4 Acc
ounting44-44Track44for44Internal4 4 Reporting
Define4 4 and4 4 explain4 4 a4 4 business4 4 process.4 4 Point4 4 out4 4 that4 4 organizations
4 4 use 4 4 many44processes4 4 to
achieve4 4 their4 4 objectives4 4 and4 4 they4 4 employ4 4 specific4 4 terms4 4 to4 4 identify
4 4 the4 4 processes.
Processes4 4 can
be4 4 directly4 4 related4 4 or4 4 closely4 4 related4 4 to4 4 creating4 4 and4 4 deliverin
g4 4 goods4 4 and4 4 services.4 4 Use4 4 Figure
1-
24 4 to4 4 illustrate4 4 a4 4 process4 4 that4 4 is4 4 executed4 4 in4 4 response4 4 to4 4 a4 4 ne
ed4 4 (trigger).4 4 The44process4 4 is
carried4 4 out4 4 through4 4 a4 4 sequence4 4 of4 4 steps4 4 and4 4 results4 4 in4 4 an4 4 output.4
4 You4 4 can 4 4 use4 4 an44example4 4 such
as4 4 ordering4 4 supplies.
Processes4 4 can4 4 be4 4 supported4 4 by4 4 other4 4 processes 4 4 and4 4 can4 4 have4 4 numerous
4 4 sub-processes.
Point
out4 4 that4 4 communication4 4 and4 4 coordination4 4 of4 4 tasks4 4 are4 4 very4 4 important.4
4 Figure4 4 1-34 4 can44assist
you4 4 in4 4 explaining4 4 this4 4 point.4 4 Ask4 4 students4 4 to4 4 indentify 4 4 some4 4 other4
4 processes4 4 that44they4 4 are
familiar4 4 with.
Describe4 4 and4 4 give4 4 examples4 4 of4 4 the4 4 business4 4 processes4 4 (A44-
44K).4 4 Figures4 4 1-44 4 through441-1044will
assist4 4 you.
3. Global4 4 Bicycle,4 4 Incorporated4 4 (GBI)
Explain 4 4 that4 4 Global4 4 Bicycle,4 4 Incorporated 4 4 (GBI)4 4 is4 4 a4 4 fictional4 4 compa
ny4 4 that4 4 is4 4 used44to4 4 illustrate
the4 4 important4 4 concepts,4 4 processes,4 4 and4 4 techniques4 4 discussed4 4 in4 4 the4 4 te
xtbook.4 4 Figure441-1144will
assist4 4 you4 4 in4 4 explaining 4 4 GBI's4 4 organizational4 4 structure.
Call4 4 up4 4 the4 4 SAP4 4 University4 4 Alliance4 4 Community4 4 (UAC)4 4 website4 4 http://ua
c.sap.com,4 4 and44demonstrate4 4 the4 4 functionality4 4 and4 4 services4 4 available4 4 for
4 4 students.4 4 Also4 4 instruct4 4 students4 4 to
read4 4 the4 4 GBI4 4 Backround4 4 Document4 4 on4 4 the4 4 UAC4 4 to4 4 understand4 4 GBI’s4
4 history,4 4 products4 4 and
operations.
, 4. How4 4 To4 4 Use4 4 This4 4 Book
a. Chapter4 4 Structure
