ERP/U1 Topic 11 Cross Functional and Integrated Enterprise Systems
It is a set of logically related activities for accomplishing a specific business result. It is the manner in which work is organized, coordinated, and focused to produce a valuable product or service. It sets unique ways to coordinate work, information, and knowledge. Business processes represents the ways in which management chooses to coordinate work and shows the concrete work flows of material, information and knowledge in any organization.
Cross Functional Business Process
A business process, which cross functional areas and requires coordination across departments are called Cross functional business process. It requires group of employees from different functional specialties to complete a piece of work .For example Order fulfillment process. The first process in the order fulfillment is initiated by the sales department. The order received by the sales department is passed first to accounting department to ensure the customer can pay for the order either by credit verification or request for immediate payment prior to shipping. Once the customer credit is established, the production department pulls the raw materials from
inventory to produce the product .The product is shipped. A bill or invoice will then have to be generated by the accounting department and a notice is sent to the customer indicating that the product is shipped. Such systems which support the cross functional business processes are called cross functional business systems.
Cross-Functional Enterprise Systems
Information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise.
The new product development process in a manufacturing company. This is an example of a business process that must be supported by cross functional systems that cross the boundaries of several business functions.
There is a strong emphasis in many organizations to develop such composite or cross-functional information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes. These organizations view cross-functional information systems as a strategic way to share information resources and improve the efficiency and effectiveness of a business, thus helping it attain its strategic objectives.
Many companies today are using information technology to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise. These organizations
view cross-functional enterprise systems as a strategic way to use IT to share information resources and improve the efficiency and effectiveness of business processes, and develop strategic relationships with customers, suppliers, and business partners.
Business firms are turning to Internet technologies to integrate the flow of information among their internal business functions and their customers and suppliers. Companies are using the World Wide Web and their intranets and extranets as the technology platform for their cross- functional and interorganizational information systems.