BUSINESS FUNCTIONS AND BUSINESS PROCESSES

Enterprise Resource Planning (ERP) systems are core software programs used by companies to
Integrate and coordinate information in every area of the business. ERP programs helps
organizations manage company wide business processes, using a common database are shared
management reporting tool. ERP is a business management software.

Business Function A business activity within a functional area of operation

Business Process A collection of activities that takes one or more kinds of input and creates an
output that is of value to a customer. Creating the output might involve activities from different
functional areas.

Integrated Information System An information system that allows sharing of common data
throughout an organization. ERP systems are integrated systems because all operational data
are located in a central database, where they can be accessed by users throughout an
organization.

Functional Areas of Operation

● Marketing and Sales develops products, sets product prices, promotes products
through advertising and marketing, takes customer orders, supports customers, and
creates sales forecasts.
● Supply Chain Management develops production plans, orders raw materials from
suppliers, receives the raw materials into the facility, manufactures products, maintains
facilities, and ships products to customers.
● Accounting and Finance performs financial accounting to provide summaries of
operational data in managerial reports, and also is responsible for tasks such as
controlling accounts, planning and budgeting, and cash-flow management.
● Human Resources recruits, hires, trains, and compensates employees, ensures
compliance with government regulations, and overseas the evaluation of employees.

Reasons to implement an ERP System

● Integrate Financial Information
● Standardize and Speed up Manufacturing Processes
● Reduce Inventory
● Increases and Improves Interaction

Primary Goals for the ERP System

● Efficiency
● Cost Reduction
● Quality
● Decentralization
REFERENCES

Monk, E.F. & Wagner, B.J., “Concepts in Enterprise Resource Planning, Fourth Edition.”
USA: 2013 Cengage Learning, Inc.
Livingston, Scott (2021, August 27) “What is the Full Form and Meaning of ERP?” (Blog Post)
Retrieved from https://www.guru99.com/erp-full-form.html
Syspro (2015, December 8) Business Processes, Functions and ERP. YouTube (Video File).
Retrieved from https://www.youtube.com/watch?v=nD4tXywfOXc
Guru99 (2017, December 25) SAP Tutorial for Beginners. YouTube (Video File). Retrieved from
https://www.youtube.com/watch?v=mDC8ZSKTWKc
SAP Technology (2019 February 9) Conversational ERP – Lesson 1. YouTube (Video File).
Retrieved from https://www.youtube.com/watch?v=kGQ1fNQVbj8
Guru99(2013 March 12) What if SAP? Why do we need SAP?YouTube (Video File).
Retrieved from https://www.youtube.com/watch?v=lYCEQqSM08I&t=1s
Monk, E.F. & Wagner, B.J. 2013 “Concepts in Enterprise Resource Planning, Fourth Edition.”
Retrieved from https://books.google.com.ph/books