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Module 2 Business Process Integration Lecture

The document outlines key concepts related to Business Process Integration (BPI) and its significance in enhancing organizational efficiency through cross-functional and end-to-end processes. It emphasizes the importance of Business Process Reengineering (BPR) and ERP process mapping, as well as the role of master data and data standardization in improving information quality. Additionally, it discusses the organizational structure in ERP systems and poses discussion questions to further explore these topics.

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2 views1 page

Module 2 Business Process Integration Lecture

The document outlines key concepts related to Business Process Integration (BPI) and its significance in enhancing organizational efficiency through cross-functional and end-to-end processes. It emphasizes the importance of Business Process Reengineering (BPR) and ERP process mapping, as well as the role of master data and data standardization in improving information quality. Additionally, it discusses the organizational structure in ERP systems and poses discussion questions to further explore these topics.

Uploaded by

donnauy29
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

MODULE 2: Business Process Integration Examples: Customers, Vendors, Products, Employees,

Learning Outcomes Banks, Chart of Accounts.

7. Data Standardization
● Explain the concept of business process integration.
Data standardization ensures information is entered
● Identify cross-functional and end-to-end business consistently across the organization, improving reporting
and reducing duplicate records.
processes.
● Understand the importance of Business Process 8. Organizational Structure in ERP
Reengineering (BPR). ERP organizational structure defines how the company is
represented in the system.
● Describe ERP process mapping.
Typical hierarchy:
● Explain the role of master data and data
Company → Company Code → Plant/Branch → Storage
standardization. Location → Department
● Identify the organizational structure used in ERP
Key Takeaways
systems.
● ERP integrates business processes using a common
1. Business Process Integration database.
Business Process Integration (BPI) is the coordination and
connection of different business departments, systems, ● Cross-functional and end-to-end processes improve
and activities so they work together as one unified process efficiency.
instead of operating independently. ● BPR optimizes processes before ERP implementation.
Benefits: ● Process mapping supports successful ERP
• Eliminates duplicate data entry configuration.
• Faster communication
• Real-time information ● Master data and standardized data improve
• Better decision-making information quality.
• Improved customer service
• Higher productivity ● Organizational structure supports reporting and
transaction processing.
2. Cross-functional Processes
A cross-functional process involves multiple departments Discussion Questions
working together to complete one business activity. 1. Why is business process integration important?
2. Differentiate cross-functional and end-to-end processes.
Example: Sales receives the order, Inventory checks stock, 3. Why perform BPR before ERP implementation?
Warehouse prepares goods, Shipping delivers, and 4. How does process mapping reduce implementation
Accounting creates the invoice. risks?
5. What is the difference between master data and
3. End-to-End Business Processes transaction data?
An End-to-End (E2E) process covers the complete flow of a 6. What problems occur without data standardization?
transaction from beginning to end. 7. How does ERP organizational structure affect reporting?
8. Explain the Order-to-Cash process in an ERP system.
Examples:
• Procure-to-Pay (Purchase Request → Purchase Order →
Goods Receipt → Invoice → Payment)
• Order-to-Cash (Customer Order → Delivery → Billing →
Payment Collection)

4. Business Process Reengineering (BPR)


BPR is the redesign of business processes to improve
efficiency before ERP implementation.

Benefits:
• Removes unnecessary steps
• Reduces costs
• Improves productivity
• Standardizes procedures

5. ERP Process Mapping


Process mapping visually documents business processes
before ERP implementation to identify bottlenecks and
improve workflows.

6. Master Data
Master Data consists of core business information used
repeatedly across the ERP system.

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