1. Definition of Organisation
- Organizations are created entities within and through which people interact to reach individual and collective goals.
- Organisations are established to achieve some objectives.
-There are a set of business processes involved in each organisation.
2. Business Process
- Business process is a coordinated set of activities and that involve the use of resources to produce valuable products or services.
- Processes are the means through which organizations deliver values to internal and external customers.
- Processes (standards operating procedures) generally reflect years of learning about how to do things efficiently in a given industry or organization.
3. Importance of Business Process Improvement
-Specialization
- specialization of labour
- enabled organizations to produce more products through higher efficiency
- Total Quality Management (TQM)
- focus on reduction of variability and defects on process outputs
- continuous incremental improvement
- Business Process Reengineering (BPR)
- radical and innovative process change
- IT is a critical enabler
4. The Silo Effect
- Each functional areas work in isolation
- Lack of understanding of the big picture
- Inefficient interaction across functions
- Difficult to coordinate activities across functional areas
5. The solution
- Enterprise Systems
- Integrates applications across functional areas
- Enable efficient and effective information sharing across functional areas
- ERP focus on intra-organisational processes
6. Definition of ERP
An Enterprise Resource Planning system is a packaged business software system that allow a company to
- automate and integrate the majority of its business processes
- share common data and practices across the entire organization
- produce and access information in a real-time environment.
SAP ERP
- Enable a company to support and optimize its processes
- Tie together disparate business functions (integrated business solution)
- Help the organization run smoothly
- Real-time environment
- Scalable and flexible
7. Summary
-Effective and efficent organizational processes are essential to organizational success.
-ES/ERP offers benefits to organizations through integration of business processes.
-SAP ERP is a complex software system.
-So-called ‘best practices‘ are practices that have worked well for some other organizations, but not necessarily be best for the organization contemplating implementing the ES.