Review

BUSINESS INFORMATION SYSTEMS

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Functional Organizational Structure
 Most common organizational structure
 Functional structure divided into functions or departments
 Functions perform specialized tasks or activities
 Processes cut across functions
 Why is the functional structure so common?

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3
Purchasing

Operations

Warehouse

Sales & Marketing

Research & Development

Finance & Accounting

Functional organizational

Human Resources

Information Technology
 Functions vs. processes

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Purchasing

Operations

Warehouse

Sales & Marketing

Research & Development

Finance & Accounting

The Functional Structure

Human Resources

Information Technology
The Cross-Functional Structure

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 Functions vs. processes

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 The Silo effect
 Communication and collaboration between functions
 What must be communicated?
 What information must be exchanged?
 How is this coordinated
 Paper based processes
 Processes supported by functional systems
 Processes supported by enterprise systems

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 Paper-based process

Sales Warehouse Accounting

Receive
Prepare Send Send Receive
Customer
Shipment Shipment Invoice Payment
Order

Create/ Create/ Create/

Update Send Paperwork Update Send Paperwork Update
Paperwork Paperwork Paperwork

Delay! Delay! Delay! Delay! Delay!

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 Process using functional systems

Sales Warehouse Accounting

Receive
Prepare Send Send Receive
Customer
Shipment Shipment Invoice Payment
Order

Send Paperwork Send Paperwork

Enter/Update Enter/Update Enter/Update Enter/Update Enter/Update

Data Data Data Data Data

Delay! Delay!

Sales Warehouse Accounting

Information Information Information
System System System

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 Processes using Enterprise Systems

Sales Warehouse Accounting

Receive
Prepare Send Send Receive
Customer
Shipment Shipment Invoice Payment
Order

Enter/Update Enter/Update Enter/Update Enter/Update Enter/Update

Data Data Data Data Data

Enterprise
Information
System

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 The ES Architecture Suite

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GBI Organizational Structure

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GBI US Divisions

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 GBI Product Structure

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A Basic Fulfillment Process

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Fulfillment Process Steps

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GBI Scenario
 Customer: RMB, Denver, CO.
 Silver Deluxe Touring bikes: 40
 Delivery 30 by May 10, 10 by June 10
 T-shirts: 100 (qualifies for 10% disc)
 Delivery all by May 10
 Deliver to racing location in Colorado Springs

Selling price Cost price

Silver deluxe touring bike $2,800 $1,400
T-shirt $30 $15

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Customer Payment with Discount

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 Accounts Receivable Accounting

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 A Basic Procurement Process

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 A Detailed Procurement Process

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 GBI Story
 Inventory of t-shirts (SHRT1000) is low (<=50) in the
Miami plant
 Therefore it is necessary to procure more t-shirts
 Spy Gear is the only supplier of t-shirts
 Quantity purchased is 500
 Purchase price is $15 per t-shirt

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 Financial Impact of Vendor Payment

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 Accounts Payable Accounting

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A Production Process

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Inventory and Warehouse Management
Process

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