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  • Exercise (Chapter 1) - Sangalang, Veronica P PDF

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    A business function focuses on activities within a department, while a business process cuts across departments by linking activities to achieve outcomes valuable to customers. Organizing by process rather than function allows managers to view their organization from the customer's perspective. This structure promotes efficient sharing of data between functions and leads to more efficient processes. However, integrating activities from different departments poses challenges and requires effective communication and coordination. When browsing Amazon's website, the process of buying an item involves marketing providing product details, accounting processing payment upon checkout, and supply chain shipping the item once payment is confirmed. The online buying process is easy and convenient for customers.

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    A business function focuses on activities within a department, while a business process cuts across departments by linking activities to achieve outcomes valuable to customers. Organizing by process rather than function allows managers to view their organization from the customer's perspective. This structure promotes efficient sharing of data between functions and leads to more efficient processes. However, integrating activities from different departments poses challenges and requires effective communication and coordination. When browsing Amazon's website, the process of buying an item involves marketing providing product details, accounting processing payment upon checkout, and supply chain shipping the item once payment is confirmed. The online buying process is easy and convenient for customers.

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    © All Rights Reserved
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    1K views2 pages

    Exercise (Chapter 1) - Sangalang, Veronica P PDF

    Uploaded by

    Veronica Sangalang
    A business function focuses on activities within a department, while a business process cuts across departments by linking activities to achieve outcomes valuable to customers. Organizing by process rather than function allows managers to view their organization from the customer's perspective. This structure promotes efficient sharing of data between functions and leads to more efficient processes. However, integrating activities from different departments poses challenges and requires effective communication and coordination. When browsing Amazon's website, the process of buying an item involves marketing providing product details, accounting processing payment upon checkout, and supply chain shipping the item once payment is confirmed. The online buying process is easy and convenient for customers.

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    © All Rights Reserved
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    of 2

    Sangalang, Veronica P.

    20579400
    HR – 331 August 14, 2020

    1) Distinguish between a business function and a business process. Describe how a business process
    cuts across functional lines in an organization. How might a manager organize his or her staff in terms
    of business processes rather than functional departments? What benefits would there be with this type
    of organization? What challenges would it pose?

    - A business function pertains to the activities specific to a functional area of operation like marketing a
    product, purchasing goods and raw materials, financial accounting of payments, recruiting and hiring,
    and the like. On the other hand, a business process is a collection of activities that takes some input
    and creates an output that is of value to the customer.

    - A business process can be naturally horizontal to several areas of the organization. That means that
    in order to achieve a business objective, it is necessary for people from different areas to do different
    tasks (each their part of the process). But these tasks are not independent, they are part of a
    process that is transversal to all those areas, it involves people from each line of business. Therefore,
    it is said that business processes "cut" the verticals, integrating all areas.

    - Managers organize their teams in terms of business processes instead of functional departments
    because thinking in terms of business processes helps managers look at their organization from the
    customer's perspective.
    Sharing data effectively and efficiently between and within functional areas leads to more efficient
    business processes.

    - The main challenge is how a company could integrate the activities in each department especially in
    dealing in a competitive world of business as these certain activities depends on each other for it to
    function properly and effectively.

    2) Go to the Amazon Web site (http://www.amazon.com), and step through the process of buying an
    item without actually purchasing the item. Based on this experience, describe the flows of information
    between Marketing and Sales, Accounting and Finance, and Supply Chain Management at Amazon.
    How easy is it to buy that item?

    - Amazon’s order process:

    1. Marketing and Sales: Customers chooses an item and adds it to her shopping cart.
    2. Accounting and Finance: Receives information from Marketing and Sales that customer wants
    to checkout.

    3. Accounting and Finance: Processes payment.

    4. Supply Chain Management: Ships order after receiving information from Accounting and
    Finance that payment process is complete.

    - Just like what I experienced in ordering at Shopee, a local online shopping app, the process of
    buying an item online is really easy as you just need to click it and to the cart and you have to decide
    whether to checkout or not. When I decided to checkout, I just need to choose cash on delivery payment
    as this is a very convenient option for me as I don’t have credit cards. It only ships my order when the
    app’s system accept my payment option. With regards to the first three process, all of these make it
    easier as I don’t have to deal long lines and at the same time, it provides convenience and protects my
    privacy as well. It also makes sure that everything is all set before getting it delivered. All in all, the
    experience of getting an app online is much easier and convenient especially with the status quo of our
    country.

    REFERENCES:

    Concepts in Enterprise Resource Planning: Fourth Edition. (n.d.). Retrieved from:


    http://www.csun.edu/~dliu/IS551%20PPTs/ERP_01%20-
    %20Biz%20Functions,%20Processes,%20Data%20and%20Sys%20Dev%20(Edited)

    Moreno, J.J. (2019). How does a business process cut across functional lines in an organization?
    Retrieved from: https://www.quora.com/How-does-a-business-process-cut-across-functional-lines-in-
    an-organization

    CIS239 Enterprise Systems Midterm. (n.d.). Retrieved from: http://quizlet.com/234672868/cis239-


    enterprise-systems-midterm-flash-
    cards/#:~:text=Managers%20organize%20their%20teams%20in%20terms%20of%20business%20processes%
    20instead,organization%20from%20the%20customer's%20perspective.&text=Financial%20accounting%2C%2
    0cost%20allocation%20and,budgeting%2C%20cash-flow%20management.

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