Business Process

Business Process

Business Processes refer to the sets of logically

related activities for accomplishing a specific
business result.

Business process also refers to the unique ways

in which organizations and management
coordinate these activities

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 Functional Business
processes
Functional Area Business Process
Manufacturing & Assembling the product
Checking for quality
Production
Producing bills of materials
Sales & Marketing Identifying customers
Making customers aware of the
product
Selling the product
Finance & Accounting Paying creditors
Creating financial statements
Managing cash accounts
Human resources Hiring employees
Evaluating employees’ job
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Enrolling employees in benefit plans

 A Business Process
• Has a goal
• Has specific inputs
• Has specific outputs
• Uses Resources
• Has a number of activities that are performed
in some order
• May affect more than one organizational unit.
Horizontal organizational impact
• Creates values of some kind for the customer.
The customer may be internal or external

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 Enterprise Applications

Business Processes and Information Systems

Cross-Functional Business Processes

• Transcend boundary between sales, marketing,
manufacturing, and research and development

• Group employees from different functional

specialties to a complete piece of work

Example: Order Fulfillment Process

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The order fulfillment process
Enterprise Applications

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 Enterprise Applications
• Enterprise Systems (ERP)

• Supply Chain Management (SCM)

• Customer Relationship Management (CRM)

• Knowledge Management System (KMS)

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Enterprise application architecture
Enterprise Applications

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Organization
Structure
 Organizations and Information Systems

The two-way relationship between organizations and information technology

Figure 3-1
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Structural Characteristics of
all organizations
• Clear division of Labor
• Hierarchy
• Explicit rules and procedures
• Impartial judgments
• Technical Qualifications for positions
• Maximum organizational efficiency

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 Organizational Structures

Organizational Description Examples

Type
Entrepreneurial Structure Young, small firm in a fast changing Small start-up
environment. it has a simple business
structure and is managed by an
entrepreneur serving as its single
chief executive officer

Machine Bureaucracy Large bureaucracy existing in a Midsize

slowly changing environment, manufacturing firm
producing standard products. It is
dominated by a centralized
management team and centralized
management team and centralized
decision making

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 Organizational
Structures…..contd.
Divisionalized Combination of multiple machine Fortune 500 firms,
bureaucracy bureaucracies, each producing a such as General
different product or service, all Motors
topped by one central headquarters
Professional bureaucracy Knowledge- based organization Law Firms, school
where goods and services depend systems, Hospitals
upon the expertise and knowledge of
professionals. Dominated by
department heads with weak
centralized authority
Adhocracy Task force organization that must Consulting firms,
respond to rapidly changing such as the Rand
environments. Consists of large Corporation
groups of specialists organized into
short lived multidisciplinary teams
and has weak central management

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